DYER | Town employees will see a boost in their take-home pay in 2013, thanks to a measure passed by the Dyer Town Council.
The council unanimously voted last week to fund the bi-weekly contributions employees make to the Public Employees Retirement Fund with town money.
Council President Debbie Astor noted before action was taken that the clerk-treasurer’s office previously stated that funds are available to support paying for contributions.
PERF rules require that 3 percent of an employee’s salary be withheld each pay period and deposited in a PERF account. These contributions will be paid by the town beginning in 2013.
Footing the bill for employee PERF contributions will cost the town $133,500 next year.
PERF is the pension plan for Indiana public employees. Employees must fit one of three criteria to collect a pension from PERF: they must be 60 years old with 15 years of creditable service in PERF; 65 years old with 10 years in PERF; or be covered by what is called the rule of 85. The rule of 85 specifies that your age plus the number of years in PERF equal 85.
The issue of a possible salary increase was taken up by the council after it approved an ordinance which increases the minimum pension for police officers by $4,716 to $31,949 annually.
The town will pay an additional $48,318 for the increase, with current police officers paying $283 more per year in contributions.
Prior to the final vote, Councilman Jeff Dekker said that a standard salary increase would have cost the town more and left the employees with less.
For example, a $100 salary increase would cost the town $125 once FICA was factored in, and the employee would end up taking home $75 after taxes.