BELLA VISTA — Four of six aldermen said they would be interested in seeing the city switch retirement programs for nonuniformed employees after seeing a preliminary survey at a work session Wednesday.
Mayor Frank Anderson asked aldermen who would be interested, so he could include the increase in cost in the 2013 budget. The switch from the current 457 retirement program to Arkansas Public Employees Retirement System, a state-run pension plan, would cost the city about $250,000 annually, more than $100,000 above the cost of the 457 program.
The city matches up to a 5 percent employee contribution to the 457 program. Less than half of the nonuniformed employees designate the entire 5 percent to the plan. With APERS, a 5 percent employee contribution would be mandatory and the city would contribute 15 percent. Employees would be fully vested after five years.
Some aldermen had a problem with forcing employees to participate in the program.
“We’re forcing something on some of the employees who don’t want to do it,” said Doug Farner, an alderman.
Farner suggested the city increase the amount it contributes to the 457 program. Anderson said without everyone’s participation, increasing the contribution doesn’t really benefit employees across the board.
“You’ve got to have some responsibility for yourself for planning for retirement,” Farner said.
Anderson said less than half of the cities in Arkansas participate in the state retirement program, but most of the larger cities do. Bella Vista is the 14th largest city in the state.
Anderson will include APERS in the proposed 2013 budget, to be discussed at the regular council meeting at 6:30 p.m. Monday at Highlands Crossing Center.
Aldermen also will discuss a change in solid waste collection rates.
After new negotiations with the city’s current collection company, Allied Waste, residents will see lower rates beginning next year.
The new rate, including fees for billing costs and street repair because of the weight of collection trucks, would be $13.10 per month as opposed to the current rate of $15.50. This rate would save residents almost $30 per year. There is also an option in the contract for commercial businesses to join. The contract would allow one large-item pickup per month and residents would supply their own containers.