Minutes 05/25/2010 - Laserfiche WebLink

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May 25. 2010 Background: . When Portsmouth joined the Virginia Retirement System ("VRS") in 1984, a number of general employees chose to remain members of the Portsmouth Supplemental Retirement System ("PSRS"). Under PSRS, when a retiree begins receiving Social Security retirement compensation, a portion of that amount is deducted from his or her PSRS compensation. This deduction is commonly known as the "Social Security Offset." VRS does not have the Social Security Offset. Discussion: . The resolution calls for the City Manager to develop a plan for elimination of the Social Security Offset for PSRS retirees. . This goal is to be accomplished in phases over a three-year period, commencing with the FY2011-12 operating budget. . The plan is to be guided by actuarial principles, so as not to create additional unfunded liability for PSRS. Financial Impact: . The plan will add a significant annual cost to the Operating Budget. The exact amount will not be known until the actuarial studies and the proposed plan are complete. Recommended Action: . Adoption of the resolution IS recommended. Vision Principle: Bold New Directions. Next Steps Following Council Action: . City Manager to arrange for actuarial studies. . City Manager and staff to work with PSRS Trustees to develop the proposed plan for adoption as part of the FY2011-2012 Operating Budget. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item. 2. C. W. McCoy, 3408 Canterbury Drive, spoke in support of this item. Motion by Mr. Whitehurst, and seconded by Mr. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION CONCERNING ELIMINATION OF THE SOCIAL SECURITY OFFSET FOR PERSONS RETIRED UNDER THE PORTSMOUTH SUPPLEMENTAL RETIREMENT SYSTEM. WHEREAS, prior to 1984 all Portsmouth general employees were members of the Portsmouth Supplemental Retirement System ("PSRS"); and WHEREAS, of the general employees who chose to stay in PSRS, there are presently approximately fifty-two who are currently active employees and approximately 388 who are retired and are receiving retirement compensation; and WHEREAS, PSRS is structured so that when an employee begins receiving Social Security, his or her PSRS retirement compensation is reduced by a portion of the amount received from Social Security, commonly known as the "Social Security Offset," and VRS does not have a Social Security Offset; and WHEREAS, the Social Security Offset causes some degree of hardship to all PSRS retirees, and it causes extreme financial hardship for some PSRS retirees whose retirement compensation is already at a very low level before the Social Security Offset, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: