Red Bay council considers RSA proposition
During its regular meeting July 6, the Red Bay City Council revisited a proposition from the Retirement Systems of Alabama to revert Tier Two employees to Tier One.
“I am so happy the legislature put in Act 2022348,” said Red Bay Mayor Charlene Fancher. “We’ve discussed this off and on for a long time.”
The resolution calls for provisions for granting Tier One retirement benefits to Tier Two plan members. Tier Two employees are those hired since Jan. 1, 2013.
Under the provisions of the act, employers who participate in the Employees Retirement System pursuant to Alabama Code 36276 may elect to provide Tier One retirement benefits to Tier Two plan members.
The resolution notes the city’s plan to do so. “The figures have changed drastically since the last time we reviewed this,” said Fancher, “so, it’s a different formula, and I’m glad that the RSA went back and revisited this.”
The council voted in favor of getting the full amount caught up immediately out of the general fund.
“It’s a happy day for our employees,” said Fancher.
The City of Red Bay’s Tier Two plan members will contribute 7.5 percent of their earnable compensation to the Employees Retirement System, and the City of Red Bay’s Tier Two plan members who are firefighters or law enforcement officers shall contribute 8.5 percent.
Fancher said the City of Red Bay has not increased contribution rates for its Tier One members, as provided by Act 111676 and as required by Alabama Code 362765, and has not submitted any plan to the Employees Retirement System to increase such rates.
In other business, the council discussed an expenditure request from Teresa Strickland for $4,145.20 to purchase lab tables and stools for laboratory experiments that require more surface area than a regular desktop.
The council voted to ask Strickland to first see how much the county would pay then submit the request again.
The Council also voted in favor of:
- Purchasing a whole sponsorship in the amount of $300 for the Redmont Country Club three-person scramble tournament.
- Renewing a full-page ad in the Northwest Alabama Distinguished Young Women’s magazine at a cost of $250.