HomeMy WebLinkAbout6.k. Firefighters Relief Association Benefits Adjustments f '' � CTTY OF ROSEMOUNT
' EXECUTIVE SUMMARY FOR ACTION
CITY COtJNCIL MEETING DATE: JANUARY 7, 1997
AGENDA TTEM: FIREFIGHTERS RELIEF ASSOCIATION AGENDA SECTION: CONSENT
BENEFITS ADJUSTMFNTS
PREPARED BY: SUSAN WALSH AGENDA� � # �, w �
ADMINISTRATIVE ASSISTAN'T
ATTACHMENTS: SECTION 6 OF"BYLAWS" APPROVED BY:
Over the past year I have had discussions with officers of the Fire Relief Association regarding an increase in
their yearly pension amount which is presently at$2,000 a year. This is a request for Council to consider
approving an amendment to the Relief Association's"Bylaws"that would increase the amount to $2200 a year.
The Relief Association is the organizarion that funds the membership retirement benefit program for the city's
firefighters. The sources of funds for these benefits aze:
(1) Payments from the State of Minnesota from collection and distribution of 2% of the fire insurance
premiums paid in the state;
(2) Investment retums on the investment of relief association reserve funds; and
(3) A general tax ievy by the city.
The current benefit of$2,000 is paid out according to years of service and rules established within the
Association's`Bylaws". The City Council must approve this benefit rate since state law places responsibility on
the city to fund adequately for the retirement program. The current amount of$2,000 was approved by the City
Council in 1995.
The amount of$26,000 has been budgeted for payment to the Relief Association. This amount will cover the
City's obligation if the retirement benefit is increased to $2,200.
Sureounding cities' benefits are as follows: Apple Valley- $3,000;Eagan- $4,000;Faxmington- $1600; Inver
Grove Hts. - $2100; and Lakeville- $3650. I
Attached for Council review is Section 6 of the"Bylaws" illustrating the payment based on years of service if the I
yearly pension was increased to $2200 per year of service.
RECOMMENDED ACTION: MOTION TO INCREASE T'HE YEARLY PENSION AMOUNT TO
$2200 PER YEAR OF SERVICE EFFECTIVE JANUARY 1, 1997 AND TO APPROVE AMENDMENT
TO THE FIREFIGHT'ER'S RELIEF ASSOCIATION"BYLAWS" TO REFLECT THIS INCREASE.
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ARTICLE VIII.
DEATH BENEFITS AND P�TSIONS
(continued)
Section 6.
a) The 1994 YEARLY PENSION AMOUNT that the Association will pay
is ONE THOUSAND EIGHT I3UNDRED DOLLARS ($1, 800 .00) per "YEAR
OF SERVICE, n effective April 12, 1994, and effective
January 1, 1995 the 1995 YEARLY PENSION AMOUNT is TW0
THOUSAND DOLLARS ($2, 000 .00) per "YEAR OF SERVICE. °
b) Effective April 12 , 1994, the PERCENT' OF 20 YEAR PAYMENT at
$1, 800 per "year of service" :
Years of Service Percentage of Amount of Payment
on Fire Department 20 Year Payment at age of 50 years
10 60 10, $00
11 64 12, 672
12 68 14, 688
13 � 72 16, 848
14 76 19, 152
15 80 21, 600
16 84 24, 192
17 88 26, 928
lg 92 29, SOS
19 96 32, 832
20 100 36, 000
t qQ'1
c) Ef f ect ive January 1, 3�9�-, PERCENT OF 2 0 YEAR PAYMENT at
-�per "year of service" :
Years of Service Percentage of Amount of Payment
on Fire Department 20 Year Payment at age of 50 years
,
10 60 ��,;5 13,200
11 64 �q�.�8.g. i 5,`�g
i2 6 s , �-���,. i��95a.,•
13 72 � ���Q �,5q� ,
14 7 6 �,- ���`b$
=-, ---
15 8 0 �9�8�8 ��`�
16 84 ,Z.G-r$�8- a2.�T,�b`�i
17 g g _-�-4_-4�?-E} 32,�11 a.s
18 9 2 �3�9- 3b,432
19 9 6 �&6- `b,iz-8
2 0 10 0 4A�8��98- �!-,ot�0
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