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Show Btfl. Employees Offered Alternate Retirement Plan By (;ARY K. M.OIK'KTT News fcditor BOUNTIFUL -- City employees have been offered an alternative retirc-menl retirc-menl program, with no strings altachcd. TIIK COUNCIL unanimously agreed to the concept that all fulltimc city employees will be given the opportunity oppor-tunity to choose between remaining in the State Retirement Program or accepting an alternative retirement program through a private investment firm. In making the presentation to the council, City Manager Tom Hardy emphasized that no employee will be encouraged one way or the other to accept a proposed private retirement program or to remain with the State Retirement System. "WE WILL MAKE information available to all employees about both the State Program and the proposed alternative program," said Mr. Hardy. "It will then be up to each individual to select which retirement program they want to participate." Presently, the city puts 17.9 percent of the employee's salary into the State Retirement Program, the city manager explained. MR. HARDY said funds paid into retirement belong to the employees and they should have some decision as to how the money is invested. He said the city's retirement benefit, in part, is in lieu of salary increases. "I'M NOT discouraging employees from remaining in the State Retirement System but 1 do feel that employees should be offered an alternative program prog-ram if such a program is available and is desired by some employees," the city manager said. He noted that the State Retirement Program is a good one, especially for those who have been in the system for a long time. "But for others, a private investment retirement program could be more beneficial. It's just a matter of choice." T WO KKPRKSLNTA'I IVLS of Mutual of New York addressed the council using a slide presentation to explain the differences between the State Retirement Program and a private pri-vate retirement program offered by their company. However, it was emphasized thai if the council approved the concept of an alternative program, the city would not be bound to this (Mutual of New York) firm. THE SLIDE presentation showed how money would be accumulated, invested in-vested and paid out as benefits upon retirement or withdrawal from the company. The slides used comparable figures using interest rates earned ranging from 5 to 12 percent. "No one knows what interest rates on investments will be," said Glen Bennett, of Bountiful, representing the firm. "We want the employees to feel comfortable about what they think interest in-terest rates might be in the future and base their potential retirement benefits on those rates." HE EXPLAINED that the State Retirement Re-tirement System offers benefits on fixed monthly retirement checks but that a private investment firm would have a variety of methods from w hich retirees may receive retirement pensions. pen-sions. Robert Arbon, also representing Mutual of New York, said he would like to see his firm act as financial advisors advi-sors to the city's retirement program. "We will offeragood, solid program of investment that will guarantee a minimum mini-mum interest rate." MR. ARBON said a minimum of 20 Bountiful city employees must opt for the private investment program to make it economically feasible. He stressed, however, that each employee will decide their future based on their own particular situation and there will be no poll or vote to determine which retirement program an employee may participate. |