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Home My WebLink About6.f. Firefighter Relief Association Benefit AdjustmentAGENDA ITEM: Firefighter Relief Association Benefits Adjustment AGENDA SECTION: CONSENT PREPARED BY: Linda Jentink, City Clerk AGENDA L+If.6 F ATTACHMENTS: By -Law Article VIII, Sec. 6, 2005 Calculation Work Sheet, Schedule I II APPROVED BY: RECOMMENDED ACTION: MOTION to increase the yearly pension amount t $5,300 per year of service and to approve an amendment to the Firefighters Relief Association Bylaws reflecting this increase. 4 ROSEMOUNT City Council: December 20, 2005 ISSUE CITY COUNCIL EXECUTIVE SUMMARY The Rehef Association is on a step program to reach the State maximum benefit for firefighter's benefits and pensions and is asking for an increase of $500 this year which would bnng the annual benefit level for 2005 to $5,300. The State maximum benefit amount is $7,500. BACKGROUND The Rosemount Firefighter Relief Association is in the fifth year of an approximate 12 -year process to move Rosemount to the maximum benefit for firefighters. Each year the Relief Association evaluates their benefit increase based on investment gains /losses, contributions from the city, and Minnesota state aid money. The goal is to utilize the money received for the year by increasing the benefit level to a point where the total fund is at a slight surplus. This year with an increase of $500 to the benefit level the funds will be at a $15,000 surplus, which is acceptable, effectively utilizing the money received this year. There are 37 active firefighters this year with tiee firefighters who have retired. Firefighter Scott Englemann is the Rosemount Relief Association Secretary and would welcome any question or concerns at 651-402-1922. SUMMARY Staff agrees with the phase -in- program to increase the maximum benefit to $7,500 for firefighters. Staff recommends approval of the motion to increase the amount $500 this year for a yearly pension amount of $5,300. Years of Service On Fire Department Percentage of 20 Year Payment Amount of Payment At age of 50 years 10 60 $31,800 11 64 $37,312 12 68 $43,248 13 72 $49,608 14 76 $56.392 15 80 $63,600 16 84 $7].232 17 88 S79,288 18 92 $87,768 19 96 $96,672 20 100 $106,000 Article VIII. Death Benefits and Pensions (continued) Section 6. a) The YEARLY PENSION AMOUNT that the Association will pay is FIVE THOUSAND THREE HUNDRED DOLLARS ($5,300 00) per "YEAR OF SERVICE b) Effective December 20` 2005, the PERCENT OF 20 YEAR PAYMENT at $5,300 00 per "year of service" is as follows Last Printed 12/12/2005 Page 11 of 13 Article VIII, Section 6, Subdivision a and b were amended by the members of the Rosemount Fire Relief Association on the 6 day of December, 2005 Ed Kropclnicki, President Scott Engelmann, Secretary Approved by the City Council on the 20 day of December, 2005. William Droste, Mayor Jamie Verbrugge, City Administrator Name Date of Birth mm -dd -yy Age on 12/31/05 Fire Dept Entry Date mm -dd -yy Leaves of Absence (months) To end of 2005 To end of 2006 Years Of Service Accrued Liability Years of Service Accrued Liability 1 Aker, Scott 3/5/1952 53 4/27/1982 24 127.200 25 132.500 2 Anderson, Leigh 9/24/1964 41 11/10/1992 13 56,710 14 62,752 3 Bailey, Dave 1/29/1970 35 4/25/1989 6 16 75,684 17 82,680 4 Buyck, Timothy 4/13/1967 38 8/19/1998 7 26,076 8 30,528 5 Engelmann, Scott 7/19/1969 36 9/12/1995 10 40,280 11 45,474 6 Evenson. Mark 8/20/1957 48 4/22/1986 20 106,000 21 111,300 7 Ford, Jay 1/5/1962 43 7/8/1991 14 62,752 15 69.112 8 Gerritis, Joe 10/14/1967 38 7/22/1986 19 97.732 20 106,000 9 Haeg, Mike 3/6/1957 48 4/27/1982 24 127.200 25 132.500 10 Helgeson. Scott 11/18/1956 49 7/8/1991 14 62,752 15 69,112 11 Kornovich, Ashley 1/29/1953 52 9/28/1982 23 121,900 24 127,200 12 Kropelmcki, Ed 9/26/1958 47 8/20/1997 8 30,528 9 35,298 13 Larson, Kevin 4/30/1959 46 9/12/1995 10 40,280 11 45,474 14 Lundell, Pete 1/19/1946 59 10/21/1969 36 190,800 37 196.100 15 Nelson, Garr 1/29/1972 33 8/20/1997 8 30,528 9 35.298 16 Noll, Jerry 2/26 /1968 37 11/12/1996 9 35,298 10 40.280 17 Rambo, Kevin 12/2/1966 39 12/27/1994 11 45.474 12 50,986 18 Reis, Mike 2/8/1959 46 4/27/1982 24 127.200 25 132,500 19 Schroeder, Rick 1/15/1968 37 8/20/1997 8 30,528 9 35,298 20 Snyder, Glenn 7/31/1969 36 1/22/1992 14 62,752 15 69,112 21 Tucker, Kevin 3/15/1967 38 4/24/1990 3 15 69,112 16 75,684 22 Voelker, Jim 7/6/1965 40 8/20/1997 8 30.528 9 35.298 23 Wendel. Jeff 2/19/1967 38 8/20/1997 8 30,528 9 35,298 24 Zwart, Harold 9/8/1956 49 4/28/1987 19 97.732 20 106.000 25 Dyson Chris 6/25/1970 35 3/1/2000 6 21,730 7 26.076 Subtotal of Page 1 Liability Active Members 1.747,304 1,887,860 Relief Association Determination of Plan Liabilities and Required Municipal Contribution for 2006 'Rosemount Fire Relief Association Annual benefit level in effect for 2005 (If you change your benefit let el before 12/31/05, the SC must be recalculated at the new level.) Active Member Information Schedule Form for Lump Sum Pension Plans Reporting Year 2005 5,300 1 County ROSEMOUNT Page 1 Dakota Name Date of Birth mm -ddyy Age on 12/31/05 Fire Dept Entry Date mm -dd -yy Leaves of Absence (months) To end of 2005 To end of 2006 Years of Service Accrued Liability Years of Service Accrued Liabil ity 26 Turner, Steve 5/6/1960 45 3/1/2000 6 21,730 7 26,076 27 Knoble. Pete 8/11/1970 35 11/13/2001 4 13.780 5 17,702 28 Ganfield. Chad 9/30/1981 24 1/8/2003 3 10,070 4 13.780 29 Hiben, Kerry 1/1/1961 44 1/8/2003 3 10,070 4 13,780 30 Miller, Brad 3/6/1960 45 1/8/2003 3 10.070 4 13,780 31 Olson. Dale 7/15/1972 33 1/8/2003 3 10.070 4 13,780 32 Sciamanda, Rob 1/28/1959 46 1/8/2003 3 10.070 4 13.780 33 Strese, Tom 11/7/1983 22 1/8/2003 3 10.070 4 13,780 34 Sword, Bruce 1/1/1972 33 1/8/2003 3 10 070 4 13,780 35 Toso, Nate 12/5/1967 38 1/8/2103 3 10,070 4 13,780 36 Zeno, Greg 10/21/1959 46 1/8/2003 3 10,070 4 13,780 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 Subtotal of Page 1 a Liability Active Members Continued 126.140 167,798 Form SC -05 Relief Association !Rosemount Fire Relief Association Annual benefit level in effect for 2005 5,300 County (If you change your benefit level before 12/31/05, the SC must be recalculated at the new level.) Active Member Information continued ROSEMOUNT Page la !Dakota Form SC -05 Deferred Member Information (fully or partially vested) See separate instructions regarding completion of the fields below. ROSEMOUNT Page 2 Enter all information as It pertains to this member. Member Name: Steve Strese Benefit Level at Separation. Vesting. Minimum Years Required: 10 DOB. 8/15/1958 Interest (if offered) Full Months Full Years X Full Period Service Dates Entry: 2/28/1978 Separation: 3/1/1998 Age to Pay• LOAs (in months). Vesting Total Service: Years: 20 Months Of paid): Percent: 100 2005 Estimated Liability: 70,355 (overwrite, if necessary) 2006 Estimated Liability• 71873 1981: 1986: 1982: 1987• 1983• 1988: 1984 1989• 1985: 1990. 2,500 1991 1996: 2001:% 1992: 1997 2002: 1993: 1998• 2003: 1994• 1999 2004 1995: 2000: 2005: +This rate of return is calculated using the eamings projected on Page 3 of the Schedule. Are Months of Service Paid? No Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate Account/Vehicle D- Upto5% Type: B Enter all information as it pertains to this member. Member Name: Bryan Burkhalter Benefit Level at Separation. Vesting. Minimum Years Required. 10 DOB. 3/1/1965 Interest (iCoffered):FuII Months Full Years X Full Period Service Dates: Entry: 11/26/1985 Separation: 4/1/1996 Age to Pay: LOAs (in months): Vesting Total Service: Years: 10 Months (if paid). Percent. 60 2005 Estimated Liability: 2006 Estimated Liability: 12,000 (ovenvnte, if necessary) 12,000 2,000 1981: 1986: 1991: 1996: 2001: 1987: 1992. 1997 2002: 1983: 1988 1993: 1998: 2003: 1984 1989• 1994 1999. 2004• 1985:_% 1990: 1995 2000: 2005: +This rate of return is calculated using the eamings projected on Page 3 of the Schedule Are Months of Service Paid? No Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate AccountNehicle D Up to 5% Type: A Form SC -05 Deferred Member Information (fully or partially vested) See separate instructions regarding completion of the fields below. ROSEMOUNT Page 2a Enter all information as It pertains to this member. Member Name: Dan Corrigan Vesting Minimum Years Required: 10 DOB• 7/22/1965 Interest or offered) Full Months Full Years X Full Period Service Dates: Entry. 4/24/1984 Separation: 5/1/1997 Age to Pay. LOAs (in months). Vesting Total Service: Years. 13 Months (if paid): Percent: 72 2005 Estimated Liability: 20,592 (overwrite, if necessary) 2006 Estimated Liability: 20,592 Benefit Level at Separation. 2,200 Are Months of Service Paid? 1981: 1986: 1991. 1996: 2001: 1982 1987: 1992' 1997: 2002: 1983' 1988: 1993. 1998: 2003: 1984: 1989. 1994: 1999: 2004 1985 1990 1995' 2000. 2005: +This rate of return is calculated using the earnings projected on Page 3 of the Schedule No Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate AccountNehicle D Up to 5% Type: A Enter all Information as it pertains to this member. Member Name. Terry Mooney 2005 Estimated Liability: 2006 Estimated Liability: Benefit Level at Separation: Vesting: Minimum Years Required: 10 DOB. 6/20/1964 Interest (if offered): Full Months Full Years X Full Period Service Dates: Entry: 8/28/1990 Separation: 3/31/2001 Age to Pay: LOAs (in months): Vesting Total Service. Years. 10 Months (if paid): Percent: 60 16,800 (overwrite, if necessary) 16,800 2.800 1981. 1986 1991: 1996: 2001: 1982 1987. 1992' 1997 2002 1983 1988 1993:_% 1998: 2003: 1984. 1989: 1994: 1999' 2004. 1985: 1990 1995: 2000. 2005: +This rate of return is calculated using the earnings projected on Page 3 of the Schedule. Are Months of Service Paid? No Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate AccountNehicle D- Upto5% >Type: A Form SC -05 Deferred Member Information (fully or partially vested) See separate instructions regarding completion of the fields below. ROSEMOUNT Page 2b Enter all information as it pertains to this member. Member Name: Mike McDonough Benefit Level at Separation: Vesting: Minimum Years Required. 10 DOB: 9/16/1953 Interest (if offered) Full Months Full Years X Full Period Service Dates Entry. 8/23/1975 Separation: 4/24/1990 Age to Pay. LOAs (in months): 12 Vesting Total Service: Years. 13 Months (if paid) Percent 72 2005 Estimated Liability: 2006 Estimated Liability. 13,104 (overwrite, if necessary) 13,104 1,400 1981: 1986: 1991: 1996: 2001: 1982: 1987: 1992: 1997. 2002: 1983: 1988. 1993: 1998: 2003 1984: 1989: 1994: 1999- 2004 1985: 1990: 1995: 2000. 2005:°/x+ +This rate of return is calculated using the earnings projected on Page 3 of the Schedule Are Months of Service Paid? No Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate Account/Vehicle D Up to 5% Type. A Enter all information as it pertains to this member. Benefit Level Member Name: at Separation: Vesting. Minimum Years Required: DOB: Interest (if offered). Full Months Full Years Full Period Service Dates Entry: Separation: Age to Pay LOAs (in months): Vesting Total Service. Years. Months (if paid). Percent: 2005 Estimated Liability. 2006 Estimated Liability: (overwnte, if necessary) Are Months of Service Paid? 1981: 1986: 1991: 1996. 2001'_% 1982: 1987: 1992 1997. 2002: 1983: 1988- 1993 1998: 2003:% 1984. 1989: 1994'_% 1999•_% 2004:% 1985. 1990. 1995. 2000. 2005. +This rate of return is calculated using the earnings projected on Page 3 of the Schedule Interest Option in Bylaws at Separation (Choose one option) A No Interest B Straight 5% C Separate Account/Vehicle D Up to 5% Type: Total Active Member Liabilities 1,873,444 2,055,658 Total Deferred Member Liabilities and Unpaid Installments 132,851 136,369 Grand Total Special Fund Liability A 2,006,295 13 2,192,027 Normal Cost (Cell B minus Cell A) C Form SC -05 Unpaid Installments Entry Separation 2005 Estimated Name Date Date Liability Calculation of Normal Cost Projection of Net Assets for Year Ending December 31, 2005 Special Fund Assets at December 31, 2004 (RF -04 endmg assets) Projected Expenses for 2005 Service Pensions J Other Benefits K Administrative Expenses L Total Projected Expenses for 2005 (Add Lines J through L) 2005 Projected Income for 2005 State Fire Aid 2004 aid may be increased by up to 3 5% D Municipal Independent Fire Dept. Contributions E Interest Dividends F Appreciation (Depreciation) G Member Dues H Other Revenues 1 Total Projected Income for 2005 (Add Lines D through I) 2 Projected Net Assets at December 31, 2005 (Add Lines 1 and 2, subtract Line 3) 106,192 139,050 10,000 134,891 52,360 2,500 ROSEMOUNT Page 3 2006 Estimated Liabilit 2006 1 3 4 1,686,137 390,133 54,860 1 2,021.410 185,732 Year Incurred Original Amount Amt Retired 12131/05 Left to Retire 1/1106 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Totals Form SC -05 ROSEMOUNT Page 4 Projection of Surplus or (Deficit) as of December 31, 2005 Projected Assets (Line 4) 5 2005 Accrued Liability (Page 3, cell A) 6 Surplus or (Deficit) (Line 5 minus Line 6) 7 Complete Section I below. Calculation of Municipal Contribution A. If Line 7 is positive, complete this section: Normal Cost (Page 3, cell C) Projected Administrative Expense 2037 x 1.035 B. If Line 7 is negative, complete this section: Deficit Table Amortization of Deficit (Total of Onginal Amount column x 0.10) Normal Cost (Page 3, cell C) Projected Administrative Expense (2037x1035) 2,021,410 2,006,295 15,115 State Fire Aid 2004 aid may be increased by up to 3 5 Member Dues 5% of Projected Assets at December 31, 2005 (Line 4 x 0 05) 10% of Surplus (Line 7 x 0 10) Municipal Contribution (Add Lines 8 and 9, subtract Lines 10, 11, 12 and 13) No municipal contribution due in 2005. 8 9 10 11 12 13 14 15 16 17 State Fire Aid 2004 aid may be increased by up to 3 5% 18 Member Dues 19 5% of Projected Assets at December 31, 2005 (Line 4 x 0 05) 20 Municipal Contribution (Add Lines 15, 16 and 17, subtract Lines 18, 19 and 20) 21 185,732 2,108 106,192 0 101,071 1,512 (20,935) If line C is positive, this is the new add tional deficit for 2005 Enter the amount in Original Amount and Left to Retire Columns. If line C negative, reduce prior deficits according to the separate Schedule instructions. Form SC -05 ROSEMOUNT Page 5 This Schedule must be fully completed, certified by the relief association officers, forwarded to the municipal clerk on or before August 1, 2005 and submitted to the State Auditor's Office to be eligible for state fire aid. We, the officers of the Rosemount Relief Association, certify that this Schedule was prepared under Minn. Stat. 69.772 and that the annual benefit level was established according to the average amount of available financing. We further certify that based on the financial requirements of the Relief Association's Special Fund for the 2005 calendar year, the required 2006 municipal contribution is 0 If the bylaws of the Relief Association changed in 2005. we have attached a copy of the amendment or updated bylaws. We have also enclosed a copy of the municipal ratification of this amendment if required under Minn. Stat. 69.772, subd. 6. Signature of President Signature of Secretary Signature of Treasurer Signature of Municipal Clerk Business Telephone OFFICER CERTIFICATION Print Name Date Print Name Date Print Name Date MUNICIPAL CLERK CERTIFICATION (For relief associations affiliated with municipal fire departments only.) I am the municipal clerk of 1 received on the completed Schedule from the Rosemount Relief Association. I have reviewed Lines 14 and 21 of the Schedule. If either Line 14 or Line 21 show a required municipal contribution, I certify that I will advise the governing municipal body of any required municipal contribution at its next regularly scheduled meeting. Print Name Date Please retain a copy of the Schedule for your records and submit the signed original to: State Auditor's Office, Pension Division, 525 Park Street, Suite 500, Saint Paul. MN 55103. Fax: 651- 282 -5298. Telephone 651- 282 -6110.