CCP 08-26-2008 - Laserfiche WebLink

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CI • 0 A& Public Employees Retirement Association 60 Empire Drive, Suite 200 St. Paul, MN 55103-2088 ADDRESS SERVICE REQUESTED Prsrt Std U.S. POSTAGE PAID Permit No. 171 St. Paul, MN The PERA"phrase" Social Security Referendum Participation Laws enacted in 2006 allow certain elected officials of table below denotes who could participate in a referen- a governmental subdivision to participate in a Social dum and the impacts of the two options available to each Security referendum if the governing body extends Social person. Security to its DCP-covered positions (see page 1). The Category of Officials Eligible to Impact of an Elected Official's Vote "in favor Impact of an Elected Official's Vote Participate in the Referendum of Social Security "against" Social Security Active DCP members — Active DCP members voting in favor of Social Active DCP members who reject Social Se - This category refers to elected Security are indicating that they want to pay the curity coverage are indicating that they do not officials who are currently having 6.2% tax on their prospective earnings in addition want the Social Security tax (6.2%) withheld DCP deductions (5.0%) withheld to their DCP contributions. They also are agreeing from their prospective earnings. from their salary, but are not hav- to pay any retroactive Social Security contributions ing Social Security taxes (6.2%) that may have been established by the govern - withheld mental subdivision in its resolution and its section 218 Agreement modification. DCP-eligible officials — DCP-eligible officials voting in favor of Social Se- DCP-eligible officials rejecting Social Security This category refers to elected curity are indicating that, if they subsequently join are indicating that, if they subsequently join officials who have Social Security the DCP, they want the Social Security deductions the DCP, they want Social Security withhold - tax (6.2%) withheld from their (6.2%) to continue to be withheld from their salary. ings (6.2%) to stop as a result of the DCP salary, but do not have DCP These officials could eventually obtain concurrent membership. These officials could not obtain deductions (5.0%) withheld Social Security and DCP coverage on their elec- both Social Security and DCP coverage on tive earnings on a prospective basis. future elective earnings. These officials must be excluded from participating in the Coordinated Plan. Further, to obtain Social Security coverage, the official must be in office on the date the referendum is conducted and the effective date of the 218 modification for the subdivision. 6