Speaker 0: The bill passes and the chair was signing agenda item number eight. And please read the short title, will you please?
Speaker 1: Agenda item eight Council Bill 118 737 Relating to Seattle City Employees Retirement System Creating a separate retirement plan for city employees whose membership in the retirement system begins on or after January 1st, 2017. Clarifying certain provisions and making technical corrections. The committee recommends the bill pass.
Speaker 0: Dan Simon Burgess, thank you.
Speaker 4: The retirement system that we have for city employees was created in 1929, and many provisions have been modified over the years. But the structure and the core component parts of the retirement system have not been changed until this legislation. In 2010, the City Council issued a statement of legislative intent that called for an interdepartmental team to explore options for creating different pension benefit for our city employees. The goal was to make sure that the plan remained financially strong. That work resulted in approval of a new Sears plan to benefit for new employees in the collective bargaining agreements that we ratified in late 2015 and were approved by the City Council. The ordinance creates a new plan two tier that benefits anyone hired by the city beginning January 1st, 2017. And after the new plan. Under the new plan and Tier two, employees will contribute a lower amount 7% rather than 10%. The city's contribution will remain the same. The system has a lower expected long term cost, which protects the long term viability of the retirement plan in total and puts us in a better position to fully fund the plan moving forward.
Speaker 0: Thank you, Councilman Burgess. Any further comments? Please call the roll on the passage of the bill.
Speaker 1: Thank Shanghai Burgess. Hi. Gonzalez. Purple. Hi. Johnson Maurice O'Brien. Hi. President Harrell.
Speaker 0: I.
Speaker 1: Eight in favor and unopposed.
Speaker 0: Thank you. The bill passes and the chair will sign it. Agenda item number nine, please.
Speaker 1: Agenda item number nine Resolution 316 88 amending resolution 331334. Establishing the City Council's intent to fund the Seattle City Employees Retirement System in accordance with the January 1st, 2016 Actuarial Study, the committee recommends the resolution be adopted.
Speaker 0: Councilmember Burgess, thank you.
Speaker 4: This is an annual resolution that we adopt that basically pledges the city to make the necessary annual payment to the retirement system. And this resolution again says we'll do that for 2016.
Speaker 0: Thank you. Any comments? Any further comments? Those in favor of adopting the resolution vote i. I. Those oppose vote no. The motion carries the resolutions adopted and the chair will sign it. Item number ten, please.
Speaker 1: Agenda Item ten Resolution 316 89 Approving interest rates set by the Seattle City Employees Retirement System Board and Admin of Administration for 2017. The committee recommends a resolution be adopted.
Speaker 0: That's been purchased.
Speaker 4: Thank you. The Board of Administration of the Retirement System is recommending that the city establish the interest paid to city employees who withdraw their funds from the retirement system at 2.86% on contributions made after December 31st, 2011. Member contributions received before December 31st, 2011 will continue to accrue interest at a rate of 5.75%.
Speaker 0: Any further comments? Those in favor of adopting the resolution vote i.
Speaker 4: I.
Speaker 0: Those opposed vote no. The motion carries the resolution that is adopted and the chair will sign it. Next report, please.
AN ORDINANCE relating to the Seattle City Employees’ Retirement System; creating a separate retirement plan for City employees whose membership in the Retirement System begins on or after January 1, 2017; clarifying certain provisions and making technical corrections; and adding new Sections 4.36.005, 4.36.607, and 4.36.608 to, and amending Sections 4.36.010, 4.36.020, 4.36.030, 4.36.040, 4.36.050, 4.36.060, 4.36.070, 4.36.080, 4.36.090, 4.36.500, 4.36.505, 4.36.510, 4.36.515, 4.36.520, 4.36.525, 4.36.530, 4.36.540, 4.36.545, 4.36.550, 4.36.555, 4.36.560, 4.36.565, 4.36.567, 4.36.570, 4.36.575, 4.36.580, 4.36.585, 4.36.590, 4.36.595, 4.36.600, 4.36.605, 4.36.610, 4.36.615, 4.36.620, 4.36.625, 4.36.630, 4.36.635, 4.36.640, 4.36.645, 4.36.650, 4.36.655, 4.36.660, 4.36.665, 4.36.670, 4.36.675, 4.36.680, 4.36.690, 4.36.695, 4.36.705, 4.36.710, 4.36.715, 4.36.720, and 4.36.900 of, the Seattle Municipal Code.