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City of Paris Council Benefits Subcommittee <br />December 9, 2003 <br />Page 12 <br />Councilman Bell said there is a plan for the TML. The city allows the employee <br />to contribute 6% and the city contributes 11.1 which is referred to as a 2 to 1 <br />contribution. He said the difference is because the plan is actually earning more <br />because of other employees that withdraw before the benefits are paid. That is <br />why the difference is not 12%. Councilman Bell wanted to know what <br />constitutes the limit of the 6% that the employee contributes. Chairman Guest <br />advised that it was salary. Councilman Bell wanted someone to define salary for <br />him. Chairman Guest said it was base pay. Councilman Bell asked base pay, or <br />total pay, does that include if he is paid for vacation and sick leave. Mr. <br />Anderson said it could be certificate pay if he is a police officer, overtime, <br />vacation time, car allowance and sick leave. Mr. Anderson said anything that <br />shows up on their W2 form unless it is a car allowance. Councilman Bell asked <br />if that was a requirement by law or by city policy. Mr. Anderson said that is a <br />requirement by law. Mr. Anderson said that the TMRS law says it is a <br />percentage of an employee's gross salary. Councilman Bell said that he would <br />like to analyze how the city does that based on what has been furnished them. <br />It is one of those plans they either chose 5%, 6%, or 7%. He said he got the <br />opinion that it Council's idea that they were not going to 7% anytime, but he did <br />not know that. That would be the City Council's decision. <br />Councilman Bell advised that the only other thing about this plan would be to <br />discuss whether or not to stay in TMRS. Councilman Bell asked if the city has <br />ever looked at an alternate plan, what were those plans, and when did we <br />consider them, and should they consider them now. If not, this is a moot point. <br />Mr. Anderson said he was not sure that the city could withdraw from TMRS. <br />Kent Klinkerman advised that during the down turn it was one of only two <br />retirement systems in the county that did not have a negative return. Chairman <br />Guest advised that they were not concerned with their performance. They are <br />concerned with the city's contribution. Mr. Klinkerman said the employees are <br />concerned with their performance. <br />Councilman Bell said he assumed that TMRS dictates how the compensation is <br />figured, how it is paid and this is not a Council option. The Council either <br />