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Meeting Date:
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5/28/2020 - 6:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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3. Action on the Recommendation of the MPS Pension Plan and Retirement Benefits Taskforce
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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1. Summary of Alternatives
2. Alternatives A and B
3. Alternative C
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File Attachment:
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Background:
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At its meeting on May 30, 2019, the Board referred Resolution 1920R-006 by Director Siemsen to the Committee on Accountability, Finance, and Personnel.
At its meeting on September 26, 2019 the Board adopted the resolution and directed the Administration, in collaboration with the Office of Accountability and Efficiency (OAE), to estimate the impact of:
- The current ERW
- Current ERW requirements and extending the period end date to June 30, 2023
- Current ERW requirements and extending the period end date to June 30, 2025
- Current ERW requirements and no end date (permanent change)
- Current ERW requirements but moving at least age from 55 to 57 and no end date (permanent change)
The Administration and the OAE worked closely with the actuarial firm Gabriel Roeder Smith & Company (GRS) to prepare an analysis.
At its meeting on November 21, 2019, the Board discussed the above referenced Resolution 1920R-006 and directed the Administration to develop a taskforce to conduct an analysis and make recommendations to the Board relative to the MPS Pension Plan and Retirement Benefits.
The MPS Pension Plan and Retirement Benefits Taskforce was comprised of representatives from the Milwaukee Teachers' Education Association (MTEA), the Psychologists Association in Milwaukee Public Schools (PAMPS), the International Union of Operating Engineers (Local 420), members of the Administration from the Offices of Finance and Human Resources, Board President Larry Miller, and Board Director Erika Siemsen.
The Taskforce met on February 3, 2020, May 11, 2020, and May 18, 2020.
The Taskforce considered Alternative A with retirement criteria of 57 years of age, 20 years of service, and a 70% sick leave balance for those hired prior to June 30, 2013 to receive Board subsidized benefits upon retirement.
The Taskforce considered Alternative B with retirement criteria of 55 years of age, 15 years of service, and a 70% sick leave balance for those hired prior to June 30, 2013 to receive Board subsidized benefits upon retirement.
The Taskforce considered Alternative C with retirement criteria of 55 years of age, 20 years of service, and a 70% sick leave balance for those hired prior to June 30, 2013 to receive Board subsidized benefits upon retirement.
The Taskforce members are recommending the Board consider Alternative B with retirement criteria of 55 years of age, 15 years of service, and a 70% sick leave balance for those hired prior to June 30, 2013 to receive Board subsidized benefits upon retirement.
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Fiscal Impact Statement:
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This item creates expenditures in the FY21 budget which would be determined by the criteria chosen by the Board.
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Implementation and Assessment Plan
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Upon approval by the Board, the Administration will act accordingly.
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Recommendation:
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This item is part of a report to be formulated from a meeting to be held subsequent to the publication of this advance copy of the agenda, which will be forward to the Board prior to its meeting.
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Approvals:
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Recommended By:
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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