HomeMy WebLinkAbout6.m. Firefighters Relief Association Benefits AdjustmentCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: DECEMBER 16, 2003
AGENDA: FIREFIGHTERS RELIEF ASSOCIATION
BENEFITS ADJUSTMENT
AGENDA SECTION:
CONSENT
PREPARED BY: LINDA JENTINK, CITY CLERK
AGENT
6 M
ATTACHMENTS: (A) BYLAW ARTICLE VIII, SEC. 6, 2004
APPROVED BY:
CALCULATION (B), PROJECTIONS (C), SCHEDULE II &II
This is a request for Council to consider approving an amendment to the Relief Association Bylaws that would
increase the yearly pension amount from $3,500 per year of service to $3,900 per year of service. This will not
increase the City's budgeted contribution. Two years ago the firefighters agreed to give up their hourly wage to
increase the pension benefits. The City budgeted for $135,000 to their pension fiord for the next three years and
this should bring their pension plan up to the maximum state allowance of $7,500. Only a certain percentage
increase is allowable each year (see projections Attachment Q. The appreciation rate depends on the investment
return, which will vary, but the expected maximum benefit should happen in the year 2009 to 2012.
The Relief Association is responsible for overseeing funds for a retirement program for the city's firefighters.
The Relief Association receives funding from three sources: state fire aid, municipal contributions and
investment earnings.
The current level of $3,500 is paid out according to years of service and rules established within the Relief
Association Bylaws. The City Council approved the current level December 17, 2002 and the members of the
Relief Association have requested that the Council consider increasing this amount to $3,900.
The Secretary of the Rosemount Relief Association Scott Engelmann will assist you if you have specific
questions. Please contact him at (work) 612- 343 -7651 or (home) 651- 322 -5692.
ARTICLE VIII.
DEATH BENEFITS AND PENSIONS
(Continued)
Section 6.
a) The YEARLY PENSION AMOUNT that the Association will pay is THREE
THOUSAND NINE HUNDRED
DOLLARS ($3,900.00)
per "YEAR OF
SERVICE."
b) Effective December 16 th ,
2003, the VESTED AMOUNTS at $3,900.00 per "year
of service" is as follows:
Years of Service
Percentage of
Amount of Payment
On Fire Department
Yearly Payment
At age of 50 years
10
60
$23,400
11
64
$27,456
12
68
$31,824
13
72
$36,504
14
76
$41,496
15
80
$46,800
16
84
$52,416
17
88
$58,344
18
92
$64,584
19
96
$71,136
20
100
$78,000
DEC -09 -2003 13:55 PEREGRINE CAPITAL 6122157359 P.10
Article Vitt, Section 6, Subdivision a and b were amended by the members of the Rosemount Fire Relief
Association on the go day of December, 2003.
Jerzy Noll, President Scott,Engelmann, Secretary
Approved by the City Council on the 16'h day of December, 2003.
William Droste, Mayor Jamie 'Verbrugge, City Administrator
TOTAL P.10
DEC-09-2003 13:54 PEREGRINE CAPITAL 6122157359 P.03
ENTRIES 1
(See Instructions for Schedules if mrure what data to enter)
Use your tab key or mouse pointer to move through blue - colored data entry cells.
F TI Enter Relief Association using pull down menu ........ ; ..
1toSEMOUNT
Enter the annual benefit amount effective for 2003 .. , ...... .... , ...
3,900
❑3 . Complete Schedule I - (pages 1, 2a, 2b and 2c)
F4 Click tab for Page 4 at bottom of this screen to move to Section 5 of Schedule II,
. Fill in columns a b,c and d in Section 5, Page 4, then return to this page - Entries 1.
- Section 5 must be adjusted manually each year.
Enter the Special Pund Ending Assets from the Reporting Form - 2002. , ..... .. ,
S 1,030,119
Q Enter Minnesota State Fire Aid using the 2002 amount, excluding supplemental income. ,
$1 62,378
f Enter the calculated municipal contribution from the 200=03 Schedules 1 & 14 plus
any voluntary contribution received or to be received in 2003 ..... . . ....... . . . . . .
g 135,000
Donations (List) 1.
$
2. $
3. $
Suva of Damttons .... ....... ..... ..... ..
$ p
i - i Estimated interest ineomc (projected for 2003) . , , .. , . ,
$ 16,000
, , , .
El Ygtlmated net appreciation (depreciation) In fair market value of investments in 2003 . , ... .. $ 200
Fit Other Income (projected for 2003) - Include Supplemental Benefit Reimbursements.
I. $
2. $
3. $
Suns of Othcr Income .... ............ ..
$
12 Enter pension benefits paid to date plus those estimated through December 31, 2003 ....... ,
$ 0
13 Enter other benefits (survivor, disability or fimeral benefits) to be paid irk 2003 ...........
$
14 Administrative expense you EXPECT to pay from the Special Fund during 2003.
- Amount paid to date PLUS any expected for remainder of year . . . .. .
S 3,000
15 Enter the 2002 administrative expense from the 2002 Reporting Form .......... . ....
$ 21A2
'
(Special Fund only)
F 16 Current deficit, if.Any. ..... ... ...... .. . ..... . ....... .
$ (1$9)
If you have comptetcd Items 1 -15, and Pages 1, 4 2b (and 2c if deeded), and this number is
ne at' e, there is a deficit in the current year. Click on the tab titled "Entries 2" and complete
the deficit worksheet. If Itcm 16 = 0 or is blank, click the "PRINT FORM' button below,
DEC -09 -2003 13:54 PEREGRINE CAPITAL 6122157359 P.04
Form SC -03 Page 1
SCHEDULES I & II FOR LUMP SUM PENSION PLANS
REPORTING YEAR 2003
DETERNUNATION OF PLAN LI,A 131LITIES & REQUIRED MUNICIPAL CONTRIBUTION IN 2,004
RclicfAssociacion ROSEMOUNT County DAKOTA
SCHEDULE I
Schedule l esfi=tea the pension Iiubilitica of the relief amociation Speciul Pund for all of its members based on thenr.years of active service with
the fire departm nt at the be mfit kvcl of $ 3900 per year of service.
Nalsfls ::l?ircIdapr. ;Lcavasdf
•
l�Ar Tu ,Wdd a Ti1%"!"'
1, Aker, Scou
ID!" 46f '
Birth
: p SKI --+y ,
03 -05 -52
Ago
on
12/31/03
51
1�afe cf. '.
1 rnry :
�tri�c� yy
04 -2742
Ab i tJua •
:12f?1li 0� ; '
20D3
To Bud of This Year
2004
To End of Next Year
Years of
Service
22
A4 =cd
Liability
95,800
Yews of
Service
23
Accrued
d
Liabilit y
89.700
X�ry� •
: j�44
2
AndemA, Leigh
09.24 -64
39
11- 1092
11
33,462
12
37,518
3
Anderson, Robert
04.07 -50
53
0426 -83
21
81,900
22
85,800
q
Dailcy, Dave
01- 29 -70.
1 33
04 -25 -89 _
15
50,856
16.
55,692
5
Buyck,Timodiy
D4-13 -67
36
08-19-98
5
13,026
6
15,990
6.
13118elmivat, Scott
07 -19-69
34
09.1295
R
22,464
9
25,974
7.
BvcMJI, Maw
08 -20 -57
46
04 -22 -96
18
66,22
19
71,916
S
rard,Jay
01 -05 -62
1 41
07 -08 -91
12
37.518
13
41,730
g,
Uen itis, Joe
10 -M-67
36
07 -22 -86
17
60,840
18
66,222
10.
Hfl.j, Mike
03 -06 -57
46
04-27 -82
22
85,800
23
89.700
11.
Helow", Scou
11 -18 -56
47
07.08 -91
12
37,518
13
41,730
12.
Komovich, Ashley
01 -29 -53
50
09.2R -82
21
.81,900
22
85,800
13.
KrupcWcki, Ed
09 -26 -58
45
08.20.97
6
15,990
7
19.188
14.
Larson, Kevin
04 -30 -59
44
09 -12.95
8
22,464
9
25.974
15.
Lundell, Pete
1 01 -19-46
57
10.21 -69
34
132,600
35
136,500
16.
Nelson, Gary
01 - 29 - 72
31
DO
6
15,990
7
19,168
17,
Noll, Jary
02.26 - 68
35
11 12.96
I
7
19,188
8
22.464
18.
Rambo, Kevin
12 - 02 - 66
37
12 - 27 - 94
9
25,974
10
29,640
19.
Reis, Mike
0208-59
44
04 -2742
2.2
85,800
23
89,700
20.
Schroeder, Rick
01 -15.68
35
08-20 -97
6
15,990
7
19,188
21.
Snyder, 01MI
07 -31.69
34
01- 22-92
12
37,518
13
41,730
22,
Tucker, Kevin
03 -15 -67
36
04 -24-90
14
46,176
15
50,856
23.
Voclker, Tito
07.06 -65
38
08 -20 -97
6
15
_ 7
19,188
24.
Wendel, Jeff
02 - 19 - 67
36
08- 20
6
15,990
7
19,186
25:
119 ,
Zwart, Harold
i , i '
09 -08 -56
-
11� f• !,
47
Mi
0428 -87
a s;,
(�� If � ,.
�� ��Illl�i
17
!, ��
60,840
1.167.816 l,
1 R
� 1� ,� , j��
66,222
1,266,798
Fractional years of service must he calculated to nearest run year.
Do not enter data here for any person to receive their pension during this year. Entcd instead on Schedule II, Sx. 1, Line g.
Acopy of these schedules =at be pluem d to the City Council befom Augast 1 of each year,
.DEC -09 -2003 13:54 PEREGRINE CAPITAL 6122157359 P.05
IN Orm SC -
ROSEMOUNT 1 Page 2a
Qf`1GTT "*f rr IW T A 7]T►Tm A T a
ti �� �tl� I II I i�
""^ --�^- Nom' --- --
Laal . r61 j' • )V71c1cIle Irt tint
----- •,_,..
T t df • ;
'13irt
3
Age
oa
re t
of.
Facaxes of.'•
Ai&eiip.:
: .. X2/3/09` ,
6 -- --
To End of nis 'Year
.�8 9
2004
To End of Next Year
Yeats of
Accrued
Years of
Accmcd
® - ® ®��w■r.�
®r ® ®�■■�
,,
:: ?^cAYY
12/31 /03
h71rHa sl -yy
'Yid.. •�IpS
Service
Liability
se
26• Go]]a, Robert
10 -10-63
40
03 -01 -00
4
10,140
5
m
27. Dyson, Chris
06.25.70
33
03.01 -00
4
13,026
28. Turner, Steve
05 -06-60
43
1 03 -00
10,140
5
13,026
29, I{ru)hlc, Pete
08 -11.70
33
-01
11 -13 -01
4
10,140
. 5
13,026
30, Boellrte, Phil
02 -17 -81
22
01 -08 -
2
1
4,836
3
7,410
31. Cordes, Mike
10 -15 -81
22
01 -US -03
1
2,940
2
4,$36
32. Crurfield, Chad
09- 3041
22
01 -08 -03
2,340
2
4,836
33, Ciatifield, Jake
12 -16-79
24
01 -08 -03
1
2,340
2
4,836
34. Hibcrt, Koury
01 -01 - 61
42
01.08 - 03
I
1
2,340
2
4,836
35, Hill, Shaw,,
03 -09
30
I1 - 1Q - 92
3 '
2,340
2
4,$36
36. Millen, Brad
03 -06-60
43
01 - 08 - 03
8
1
22,464
9
25,974
37. Olsoqi, Dale
07 -15 -72
31
01 -QS -03
2,340
2
4,836
38. Sciurrwmda, Rob
01
44
01.08
1
2,340
2
4,836
39. Strrqa"rom
I
if)
-03
1
2,340
2
4,836
ti �� �tl� I II I i�
MY
M-45"M
im
® - ® ®��w■r.�
®r ® ®�■■�
m��■�ri■■�
®
m
®r ®�
ti �� �tl� I II I i�
INACTIVE MEMBER & TOTAL PENSION LIABILITIES
Deferred - Fully Vested
m
n
(S)
(S)
U
Deferred - Fui1y Vested Deferred - Fully Vested ut
Strese, Steve
2
3
4
5
6
7
8
9.,
10
11
12
13
14
67,005
12,000
Cmigan, Dart
07-22-65
04-24-84
05 -01 -97
10
S
YR
Net Total
. j§64,t
�-J.IaWftk
Est Liability
Z
pate of ,
20,592
parr.
Mooney, Terry
06-20-64
08-28-90
03-31-01
AbiWuta
Service
YR
0%
12/3112004
100%
0
2,800
:a don
16,800
16,800
.8.
03-04-55
C fte :
Credit
10
S
YR
0%
100%
17
0
3,500
88%
52;360
52,360
McDonough, milce.
09-06-53
08-23-75
04-24-90
1 -10
1 S - 1
TR
"0%
1
L
0
1 1,400
Date'
1 13,1041
13,104
[Okborough. John
12-27-53
09-03-90 1
10
Is
- YR
100%
.J3
Deferred - Fully Vested
m
n
(S)
(S)
U
Deferred - Fui1y Vested Deferred - Fully Vested ut
Strese, Steve
08-15-58
02-28-78
03-01-98
50
YR
5%
0%
20
0
2,500
100%
63,814
67,005
12,000
Cmigan, Dart
07-22-65
04-24-84
05 -01 -97
10
S
YR
0%
13
0
2.700
72%
20,592
20,592
Mooney, Terry
06-20-64
08-28-90
03-31-01
Ell
S
YR
0%
100%
0
2,800
60%
16,800
16,800
Paulson, Wayne
03-04-55
WPB
07-23-03
10
S
YR
0%
100%
17
0
3,500
88%
52;360
52,360
McDonough, milce.
09-06-53
08-23-75
04-24-90
1 -10
1 S - 1
TR
"0%
1
13
0
1 1,400
1 72%
1 13,1041
13,104
[Okborough. John
12-27-53
09-03-90 1
10
Is
- YR
100%
1
10
1 0
1 1,400
1 60%
1 8,4001
8,4001
100%
100%
Unpaid Installments Unnald TmOullmenk
m
- U
m
;U
m
n
Unpaid Installments 3)
Deferred - Partially Vested Deferred - Partials Vested Deferred - Partially Vested
BurklWter, Bryan
03-01-65
11-26-85
04-01-96
10
S
YR
0%
A. Accrued Ll�billty Through Next Year
10 "
0
2,000
60%
12,000
12,000
Cmigan, Dart
07-22-65
04-24-84
05 -01 -97
10
S
YR
0%
13
0
2.700
72%
20,592
20,592
Mooney, Terry
06-20-64
08-28-90
03-31-01
Ell
S
YR
0%
to
0
2,800
60%
16,800
16,800
Paulson, Wayne
03-04-55
07-22-86
07-23-03
10
S
YR
0%
17
0
3,500
88%
52;360
52,360
Deferred - Partially Vested Deferred - Partials Vested Deferred - Partially Vested
BurklWter, Bryan
03-01-65
11-26-85
04-01-96
10
S
YR
0%
A. Accrued Ll�billty Through Next Year
10 "
0
2,000
60%
12,000
12,000
Cmigan, Dart
07-22-65
04-24-84
05 -01 -97
10
S
YR
0%
13
0
2.700
72%
20,592
20,592
Mooney, Terry
06-20-64
08-28-90
03-31-01
10
S
YR
0%
to
0
2,800
60%
16,800
16,800
Paulson, Wayne
03-04-55
07-22-86
07-23-03
10
S
YR
0%
17
0
3,500
88%
52;360
52,360
McDonough, milce.
09-06-53
08-23-75
04-24-90
1 -10
1 S - 1
TR
"0%
1
13
0
1 1,400
1 72%
1 13,1041
13,104
[Okborough. John
12-27-53
09-03-90 1
10
Is
- YR
0%
1
10
1 0
1 1,400
1 60%
1 8,4001
8,4001
2003 2004 0
rA
Total of Regular Pension Liabilities FromPages I and 2a
1,253,616
1,397,292
Deferred (Fully & Partially Vested) Pension Liabilities for records Miem Col. 8 = 0% or 5%. (Us page and 2c if needed)
187,070
190,261
Deferred (Fully & Partially Vested) Pension Liabilities for records where Col. 8 = F. (Us page and 2c if needed)
A. Accrued Ll�billty Through Next Year
r
1,587,553
B- Accrued Liability Through This Year
1,440,686
C. Subtract Line B from Line A (Normal Cost)
146,867
ro
NJ
C)
CA
(A
W
CY)
- DEC -09 -2003 13:54 PEREGRINE CAPITAL 6122157359 P.07
Form SC -03 ROSEMOUNT % Pace 3
Schedule II
Section 1 Projection of net assets for the year ending December 31, 2003
Special Fund Assets at December 31, 2002 1 $ 1,030,119
(See Ending Assets on 2002 Reporting* Form)
Projected Income to December 31, 2003:
a. Minnesota State Fire Aid .... .. .... 62,378
(Use 2002 amount, excluding Supplemental Benefit Reimburservonts)
b. ` Municipal / Independent Fire Dept. Contributions . .. .. 135,000
c. Donations (List ) . .. .
d. Interest and Dividends ..... .. . ... .. I ........... 16,000
e. Net Appreciation (Depreciation) in Fair Market
Value of Investments ......... . .. - ........ 200,000
f, Other Income (Include Supplemental) .. .... .
Total 2 $ 413,378
Projected Assets plus Income at December 31, 2003 Line 1 plus Line 2 3 $ 1,443,497
Projected Disbursements through End of Year:
g. Pensions (If listed here, don't include on Schedule I) ............
h. Other Benefits. .
1. Administrative . ... . .... . ....... 3,000
'hotel
d $ 3,000
Projected Assets at End of Year Line 3 minus Line 4 5 $ 1,440,497
Section 2 ,Projection of Surplus (Deficit) as of December 31, 2003
Projected Assets = Lane 5 6 . S
1,440,497
2003 Accrued Liability Schedule I, Page 2b, Line B 7 $ 1,440,686
Surplus or (Deficit) Line 6 n Line 7 8 $ (189)
Deficit Projected far 2003. Table on sheet labeled Entries 2 must be completed
Section 3
Determination of Municipal Contribution (if Surplus)
Nornul Cost = Schedule I, Page 2b, Line C 9 $
Calculated Administrative Expense = (RF -02 Adman F.xp. $ x 1.035) _ 10
Less
J. Minnesota State Fire Aid ..... .... .
k. 5 %n of Line 5... ....... _.
1. 10% of Surplus ....... .... .
Total Subtractions 11 $
Municipal Contribution = Line 9, plus Line 10 minus Line 11 12 $
You must certify to the municipality beforeAugw 1, 2003, even if no contribudon is due,
Complete Section 5 now if you haven't already done so.
DEC -09 -2003 13:54 PEREGRINE CAPITAL 6122157359 P.08
ROSEMOUNT \ Page 4
Section 4 Determination of Municipal Contribution (if Deficit)
Amortization of Deficits
Year Xneurred
Column 1
Original Amount
ColumM 2
Amt Retired
12/31/2003
colaenn 3
Left to Retire
1/1/2004
1994
Last year 2002 > PILM
"sz;3.7�
135.;D0Q;
1995
198,295 / 31 =
2 years ago 2001 > RF
' Si1,903 ::'
1996
Scot
3 years ago 2000 > RP-00
1997
.; • 100 '
SC-00
1998
1999
2000
2001
2002
i',�„ , I' ;! �I,':, �I'
New addl Deficit 2003
Totals
II',�IIIIIIIi�,, , ' ,, i►; II II
189
189
,, �Hil
I� II �� lt� f!; ,
189
189
m. 189 (Sec. 2, line 8)
n. �0 (Col. 3 Subtotal)
0, 189 (m. minus n.)
Step # 1 If line o is positive,_eoter lint o in coltu ms 1 and 3 of New additional Deficit (2003) line,
(This is your New additional Deficit for 2003.)
SWp # 2 If line o is negative, reduct columns 2 and 3 according to Deficit Reduction in the instruction..
Amortization of Deficit (Total from Column 1) ........... 189 x 0.10 13 $ 19
Total from Schedule 1, Page 2b, Line C (Normal Cost) 14 $ 146,867
Catculawd Administrative Expense (2002 Reporting Form Admin laxp) ... , .... 3182 x 1.035 ZS S 2,258
Subtotal Unrs 13 plus 14 Plus 15 16 S 149,144
Less:
P. Minnesota State Fire Aid .. .... . . ..... 62378
q. 5 % of Line 5 ...... . .. 720 25
Total Subtractions (Subtotal of Lines p and q) 17 $ 134,403
Municipal Contribution (line 16 minus line 17) 1S S 14,741
You must certify to the nrunicipality before August 1, 2003, even if no contribution it due.
Section 5 Test for Maximum Benefit Allowed
Calculation of average Special Fiend income per member
F-nter data inbluaahackd cell& Tjoc whole
dollar annua; u� Reference piton year fornx
A
.......... __
State Fire
Aid *
E
__.., ».........,_
Mtnucipal
Support
C
....� .............
10% of
Sutplua
X)
r ... »..
Active
Membere
Last year 2002 > PILM
"sz;3.7�
135.;D0Q;
Sc02
198,295 / 31 =
2 years ago 2001 > RF
' Si1,903 ::'
24000: '
Scot
3 years ago 2000 > RP-00
,: 4`x'123''
.; • 100 '
SC-00
(A +B +C) f D =
E
Per Year
Average
198,295 / 31 =
6,397
.91,486 / 30 =
3,050
86,513 / 31 =
2.791
* Rcoeived or Receivable
F. Average available financing per active member for the most recent 3 -year period (SumofCol. 12238 / 3 = $ 4,079
G. Maximum benefit level per statutory schedule effective through 12/30/03 ............................... $ 7,500
11 Maximum benefit Ievel per statutory schedule effective 12!31/03........ , , , • 3 7,500
Lines G and H reflect your maximum benefit level for the periods cited. You t establish a hip benefit level. Thcse figures
will be identical in all cases except where average available financing yields a maximum at the statutory cap,
DEC -09 -2003 13:55 PEREURINE CAPITAL 6122157359 P.09
Form SC -03 ROSEMOUNT 1 Page 5
OFFICER CERTIFICATION
(Form must be provided to municipal clerk on or before August 1,2003)
We, the officers of the ROSEMOUNT
Relief Association, certify that
the accompanying schedules have been prepared in accordance with the provisions of Minn. Stat. § 69.772.
Further, benefit levels have been established in accordance with the average amount of available financing and do not
exceed the maximum benefit level calculated in Section 5, as required by Minnesota law.
We certify that based on the financial requirements of the Relief Association's Special Fund for the 2003 calendar year,
the required 2004 municipal contribution is $14,741 . If the bylaws of the Association have changed
in the most recent year, we have attached a copy of the amendment. If municipal approval of this amendment is
required under Minn. Stat. § 69.772, subd. 6, we have also enclosed a copy of the municipal ratification.
Signature of President Date
Signature of Secretary Date
Signature of Treasurer Date
MUNICIPAL CLERK CERTIFICATION
( For Municipal Fire Departments Only )
I am the municipal clerk of I received on _ , ! , the completed Office of
the Static Auditor Schedules I & II from the ROSEMOUNT Relief Association. I have
reviewed Sec. 2 line 8, Sec. 3 line 12, and Sec. 4 line 18 of Schedule TI. If line 12 or line 18 reflect a required`
municipal contribution, I certify that I will advise the governing municipal body at its next regularly scheduled meeting.
Signature of Clerk Date
Business Telephone
WARNING: This document must be fully completed, certified by the relief association officers, forwarded to the municipal
clerk, and filed with the Ojfice of the State Auditor as required by Minnesota I.aw. Failure to file this document,
whether or not a municipal contriburion is due, will result in ineligibility for state fire aid, as required by Minnesota .ware law.
Office of the State Auditor
Pension Division -
525 Park Street, Suite 400
St. Paul, MN 55103
Fax number: (651) 282 -2391
Please retain a copy of this form for your records,