Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions topic
No spam. Unsubscribe anytime.
Auburn staff outline optional PERS participation for councilmembers and fiscal implications
Summary
City HR staff explained an ordinance that would affirm council members’ eligibility to voluntarily enroll in the state Public Employees’ Retirement System (PERS). Staff said Auburn stipends exceed the PERS earnings threshold, described retroactive purchase options, and estimated one-time employer exposure and ongoing annual costs if members elect enrollment.
Candace Martinson, Auburn’s director of human resources and risk management, briefed council on an ordinance to affirm optional PERS membership for council members and the deputy mayor and to authorize the city to pay required employer contributions for any elected official who enrolls.
Martinson summarized how PERS works for elected officials: membership is voluntary, vesting and service-credit rules differ from salaried employees, and enrollment is subject to a statutory earnings threshold. Staff said the city stipend for council in 2025 is $1,800 per month and deputy mayor $2,400 per month; the PERS earnings threshold cited in the presentation was $1,465.20 per month (90 times state minimum wage), meaning council stipends exceed the threshold and would be eligible for service credit if members opt in.
Staff described retroactive-purchase mechanics, employer retroactive-contribution exposure and two example scenarios. They estimated a rough employer cost of about $11,700 under one scenario and a higher maximum-exposure scenario of roughly $18,300 in principal-only calculations; ongoing employer contributions were estimated at about $1,205 per year per council member and $1,607 per year per deputy mayor using current rates without interest. Staff emphasized enrollment remains voluntary and that individual eligibility and final numbers require DRS (Department of Retirement Systems) confirmation.
Council members asked about who bears costs, budget timing and whether prior service could be purchased retroactively. Staff said any retroactive employer contributions would be calculated and that the clerk and finance director would work to determine whether the city could absorb costs within existing budgets or require an amendment.
