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A RESOLUTION OF THE CITY COUNCIL OF THE CITY (IF SANTA ANA OPPOSING A PROPOSAL TO MANDATORILY INCLUDE ALL LOCAL ~PLOYEES IN THE FED]~L SOCIAL SECURITY SYST~4 WH~qEAS, the U.S. Congress is proposing to require all current local government employees and employers to contribute to the Medicare portion of the Social Security System; end, WHEREAS, the U.S. Congress is also proposing to require all newly- hired local government employees to contribute to the full Social Security System; ~nd, WHEREAS, City of Senta Ana employees already contribute to the State Public Employee Retirement System and have since 1946; 8nd, WHEREAS, mandatory contributions to the federal Social Security System would cause gross inequities between existing employees who only pay for Medicare end new employees who must pay the cost of full Social Security; and, WHEqEAS, the l~oposed federal requirement of payment into the Social Security System would dissuade mobility of City employees due to the increased cost of becoming a new employee; and, WHEREAS, the City of Senta Ana has in its city charter a provision requiring the City to participate in the California Public Employee Retire- ment System or to provide benefits that are equal or greater and Social Security does not offer the required benefits; and, WHEREAS, the estimated expense to the City of Santa Ana to p~v Medicare cost for current employees nears $700,000 ennually; and, WH~RFAS, the estimated cost to the City of paying full Social Security costs for new employees exceeds $500,000; end, WH~qFAS, the City of Senta Ana has made many long-term and contractual commitments with the implicit understanding that cities had freedom of choice for employee retirement systems; and, WH~bEAS, the federal government originally granted a choice of participation in the Social Security system and are now reneging on that co~itment after substantial financial output on the part of cities for a number of years; and, WHEREAS, forced participation in the federal Social Security system would cause undue burden and excessive expense to the employees as well as the taxpayers of the City of S~nta Ana;