HomeMy WebLinkAbout85-101A 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;
RESOLUTION NO. 85-101
PAGE TWO
THEREFORE, be it resolved that the City Council of Santa Aha oppc ~,~
any federsl proposals, bills or initiatives to mandate municipal employees
to participate in the federal Social Security system.
ADOPTED this
ATTEST:
e C. Gl. ky '/
~FC Fe~keo~ ' t~e%%Ycounc il ~
19tN~ay of
August , 1985.
Daniel E. Griset
Mayor
COl]NC IIME~[~RS:
Griset A e
Johnson ~
Acosta ~
Hart A e
Luxembourger ~
Mc~uigan --~b~ent
Young A~,e
APPROV~D AS TO FORM: