The Municipal Employees Retirement System (MERS) has notified Hastings officials that they are amending the way they consider requests for employees buying “service credits” for their pensions.
The Hastings City Council Monday learned that future requests will come from the city rather than the employee. As it is now, the formula for determining an employee’s defined pension benefit is calculated by using the pension multiplier, the years of service and final average compensation, and the employee has the option to buy additional service credits with approval of the employer, but the city has the right to deny a request.
With the MERS change, the city would make the request for additional service credits for the employee. City Manager Jeff Mansfield said the change is a way for employers to better control pension costs and liability. “We’re trying to get a handle on all post retirement benefits,” he said.
The city hasn’t gotten a request for additional service credits in 25 years, likely because they are very costly to the employee, he added.
The council agreed to have the opt out form filled out and returned to MERS, but with the provision that they could opt back in to allow anyone who was employed by the city, served time in the military and returned to city employment, could buy the service credits for the years spent in the military.//
The council had the first reading of ordinance 539 amending the code on public school and institutional projects that gives the planning commission input with non-binding comments instead of site plan approval by the commission. Action will follow with the second reading at the next council meeting.
In other business, the council approved:
*The eighth annual ball drop in Hastings on New Year's Eve, requested by Carl Schoessel, with the same requests of the city as last year. Two changes at the celebration are planned this time; the swearing in of new mayor, David Tossava, during the event and starting the fun run from the Thornapple Plaza instead of the site of the ball drop.
* amending the zoning map of Hastings-Rutland Joint Planning Commission for the third Urban Services District.
*an amendment to its Consumers Energy contract to add a new street light on Taffee Drive at Riverwalk Street. The cost is $100 for installation with a monthly charge of $11.75.
