Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Labor And Personnel topic
No spam. Unsubscribe anytime.
Newton Council adopts $400,453 ARPA premium-pay plan for city employees
Summary
Using American Rescue Plan Act funds, the council approved a premium-pay policy and adopted a $400,453.03 grant ordinance to provide lump-sum payments to eligible city employees for work during the pandemic.
The Newton City Council on Jan. 18 approved a premium-pay policy funded with American Rescue Plan Act funds and adopted a grant ordinance totaling $400,453.03 to cover payments, taxes and retirement contributions.
Interim City Manager Sean Hovis told the council that ARPA permits premium pay for eligible essential workers and recommended lump-sum payments of $100 per month for full-time employees and $50 per month for part-time employees for the 22-month period from March 1, 2020, through Dec. 31, 2021. Hovis said the estimate for premium pay and associated payroll taxes and retirement contributions is $400,453.03, comprised of $333,900 in premium pay, $25,543.35 for Social Security and Medicare taxes, $31,126.48 for general employee retirement, $6,983.20 for sworn law enforcement retirement and $2,900 for mandatory 5% 401(k) contributions for sworn officers.
The council unanimously approved the ARPA Fiscal Recovery Fund Premium Payment Policy on a motion by Council Member Ed Sain, seconded by Council Member Roy Johnson, and then unanimously adopted the corresponding grant ordinance authorizing the $400,453.03 expenditure.
The ordinance authorizes staff to distribute premium pay consistent with the policy; the minutes do not specify a distribution schedule or eligibility roster.
