City Council Approves Additional PERF Benefits For Mayor

Council members discuss PERF benefits for mayor on Monday night.
Council members discuss PERF benefits for mayor on Monday night.

In October, Batesville City Council passed a resolution that added the mayor’s position to be eligible for Indiana Public Retirement System’s Public Employees’ Retirement Fund (PERF).

Prior to passing the resolution, some citizens voiced opposition to the proposal that it would be retroactive since the mayor’s position was considered fulltime since 2004.

Batesville City Council voted on the measure that would retroactively send $20,114.00 to the mayor for past service. In October, the resolution was approved by all but one member of city council and went into the books.

Well, that was history until Monday’s council meeting.

Batesville Clerk-Treasurer Ron Weigel received another email from PERF on January 9, stating that an error had occurred.

According to an email obtained from PERF to Weigel, “Regrettably the original letter contained a typographical error indicating that the amount to purchase past service was $20,114.00. The correct amount is $50,114.00.”

The typo forced city council to vote again on the resolution, while first hearing feedback from community and council members.

Former utilities manager Mike Vonderheide voiced opposition regarding the proposal.

“At the time when this first came up I did a calculation,” Vonderheide indicated. “Just knowing the personnel rules and how PERF works I came up with $43,000, is what the city would have to pay for the mayors portion.”

“When they got a letter that said [$20,000], I think a few folks of council was lulled into thinking its just $20,000. ‘We can certainly help the mayor with retirement for $20,000.’”

Vonderheide asked council to reconsider the measure, “The time when Rick was elected mayor his first term, I was fully aware that city council had done a review of benefits for the mayor’s position, and had specifically decided not to include PERF in the mayor’s package.”

Council President Gene Lambert disagreed.

“I was the one that led the salary review during the first term,” Lambert explained. “I can tell you without reservation there was absolutely no such discussion about denying the mayor PERF benefits.”

District 3 Council Member Bob Narwold agreed that he did not recall a discussion regarding the mayor’s PERF benefits.

Lambert also noted that the program is intended for all government employees and roughly 80 percent of mayors in the state participate in PERF.

Prior to the vote, District 2 Council Member Kevin Chaffee stated, “If we were going to implement this, we implement it going forward. I don’t think it is morally right to pay someone for work they have already accomplished.

City Council made a motion to approve the additional $30,000 to include the mayor retroactively to 2004. It was approved 4-1, with Chaffee opposed.