FY2007-09 - PERS -Exclude Participation of Elected OfficialsKODIAK ISLAND BOROUGH
Ordinance No. FY2007 -09
Requested by: Assembly member Ranney
Drafted by: Finance Director
Introduced: 09/07/2006
Failed: 09/21/2006
Reconsidered: 09/21/2006
Public hearing: 10/05/2006
Amended: 10/05/2006
Adopted: 10/05/2006
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
AUTHORIZING AN AMENDMENT TO THE BOROUGH'S PARTICIPATION AGREEMENT
WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) OF ALASKA
TO CHANGE THE BOROUGH CODE OF ORDINANCES TO EXCLUDE
PARTICIPATION OF ELECTED OFFICIALS
WHEREAS, the Kodiak Island Borough entered into a Public Employees Retirement System
(PERS) Participation Agreement with the State of Alaska, Department of Administration; and
WHEREAS, in the 2000 legislative session, House Bill 335 was signed into law that changed the
Public Employees Retirement System (PERS) statutes effective August 20, 2000; and
WHEREAS, PERS is a single employer, defined benefit retirement system in which all retirement
costs are charged to the Borough and not shared with other governments unless the retiree
worked for more than one government and the costs are then prorated by time served; and
WHEREAS, PERS regulations base an individual retiree's retirement benefits on a combination
of years of service and the three or five highest years earnings, it is possible for an elected official
to later assume a paid position with the Borough or another PERS employer and then qualify for
significant retirement and medical benefits, the liability for which would be assessed to the Kodiak
Island Borough and could total in the hundreds of thousand of dollars; and
WHEREAS, a former PERS employee could be elected to office and then qualify for significant
retirement and medical benefits, the liability for which would be assessed to the Kodiak Island
Borough and could total in the hundreds of thousand of dollars; and
WHEREAS, the Kodiak Island Borough wishes to amend the Participation Agreement
prospectively to exclude elected officials receiving compensation from those eligible to participate
in PERS; and
WHEREAS, the Kodiak Island Borough wishes to prospectively amend the code to elected
officials receiving compensation from those eligible to participate in PERS.
NOW, THEREFORE, BE IT ORDINAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1:
Classification. Sections 3 and 4 of this ordinance are of a general and permanent
nature and shall become a part of the Code of Ordinances of the Kodiak Island
Borough. The remainder shall not be codified.
Kodiak Island Borough, Alaska Ordinance No. FY2007 -09
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Section 2: Pursuant to AS 39.35.550 the governing body of the Kodiak Island Borough hreby
requests permission to exclude newly elected officials receiving compensation from
those eligible to be included in the Public Employees Retirement System of Alaska.
Section 3: Section 2.15.070 A Miscellaneous 1, of the Borough Code is amended as follows:
The mayor may be included in the borough health and life insurance plan.
Section 4: Section 2.17.100 Miscellaneous 1, of the Borough Code is amended as follows:
Assembly members may be included in the borough health and life insurance plan
Section 5: Elected officials currently holding office can continue to participate in the Borough
PERS system until they leave office.
Section 6: This ordinance applies to all persons elected after July 1, 2007. Its intent is only to
exclude the time that a person may serve as an elected official — not to exclude any
time that the person may be otherwise employed by the borough.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FIFTH DAY OF OCTOBER 2006
Nova i . Javier, cMC, Borou
AAL/CA—.)
h Clerk
KODIAK ISLAND BOROUGH
Jer�nr e M. Selby, Borough Mayor
Kodiak Island Borough, Alaska Ordinance No. FY2007 -09
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