River Heights to pay $14K to employee for retirement fund mistake

RIVER HEIGHTS – The city of River Heights will be writing a compensation check for $14,000 to Public Works Director Clayten Nelson.Councilman Doug Clausen said Nelson was misled by his predecessor into believing that his Utah Retirement Systems account would continue to have money added to it. However, River Heights’ personnel policy states that River Heights does not offer retirement.Cities can sign up with Utah Retirement Systems to have a retirement policy, but small cities generally don’t. Under Utah Retirement Systems, the city is obligated to pay an extra 10 percent or more to each employee for their retirement account. Clausen said small cities generally can’t afford to do this.Once it became clear that Nelson wouldn’t be receiving retirement pay, something had to be done for the two and a half years he was under a different impression.”It’s a back payment check for $14,000,” said Clausen, who brought this issue up before the council.Nelson will have the choice to take it all this year or to break it up for tax purposes, Clausen said.

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