coaers Ciry of Austin Employees" Retirement. System  September 10, 2010  The Honorable Lee Leffingwell Mayor of Austin PO Box 1088 Austin, TX 78767 Dear Mayor Leffingwel!:  For more than ay year, City of Austin management has worked collaboratively with the City of Austin Employees' Retirement System to develop al long-term funding solution for the System. In wrapping up that effort, the Board of Trustees has been asked to endorse a specific financial improvement plan. The proposed plan of action includes additional contributions phased in over three years and the establishment of a new reduced benefit tier for employees hired on or after. January: 1, 2012. The additional contributions are included in the budget whichi is currently before the City Council. The establishment ofa On September 10, 2010, a special meeting of the Board of Trustees was conducted for the specific purpose of expressing support to the City Council. lam pleased to report that the Board unanimously voted to formally endorse this plan of action including the enclosed draft Amended Supplemental Funding Plan. We support this plan because it will maintain a secure, competitive, and sustainable retirement plan for career City employees. Wel believe that the collaborative way in which this solution was fashioned will We also commend the many members of the management team of the City of Austin who have worked sO  new benefit tier will require action by the 2011 Texas Legislature.  provide a positive example to other governments facing similar challenges.  hard to develop this solution. Respectfully,  Elizabeth S. Gonzales  Ceagmgles  Chairperson, City of Austin Employees' Retirement System  Copy: Marc Ott, Austin City Manager Leslie Browder, Chief Financial Officer  418 E. Highland Mall Blvd. Austin, Texas 78752-3720 Phone: 512-458-2551 Fax: 512-458-5650 www.coaers.org