HomeMy WebLinkAbout14.a. Rosemount Fire Department Relief Association Benefits � CITY OF ROSEMOUNT
E%ECUTIVE SIIMMARY FOR ACTION
CITY COUNCIL MEETING DATE: MARCH 2, 1994
AGENDA ITEM: ROSEMOUNT FIRE DEPARTMENT RELIEF AGENDA SECTTON:
ASSOCIATION BENEFITS ADJUSTMENT NEW BUSINESS
PREPARED BY: SUSAN WALSH AGENDA ��� A �
ADMINISTRATIVE ASSISTANT !VI � � �.
ATTACHMENTS: MEMO APP D ���!P'�''r
I ave een approache y of icers o t e Fire Re le Association to
consider an increase in their yearly pension amount which is presently at
$1600 a year.
The Fire Relief Association is the organization that funds the membership
retirement benefit program for the city's volunteer firefighters. The
sources of funds for these benefits are:
(1) Payments from the State of Minnesota from collection and distribution
of 2� of the fire insurance premiums paid in the state;
(2) Investment returns on the investment of relief association reserve
funds;
(3) Contributions; and
(4) A general tax levy by the city.
The current benefit of $1600 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.
In 1990 the benefit was at $1400, and for 1993, the benefit was adjusted by
the city council to $1600. After meetings and discussions with Officers
Bob Turek and Dan Corrigan of the Relief Association and Interim
Administrator Ron Wasmund, we reached an agreement that the following would
be appropriate amounts to recommend for approval by the city council:
$1800 a year for 1994 and $2000 a year for 1995.
The attached summary shaws what surrounding communities's benefits are; and
although it may not be necessary for Rosemount to be comparabie to our
larger area communities, I believe it adequately shows that adjustments are
needed. Sufficient funds are in the 1994 budget to fund the $1800 benefit;
and based upon preliminary calculations, I don't believe an increase in
1995 city funding will be necessary to cover the $2000 benefit per year.
RECOMMENDED ACTION: MOTION TO APPROVE THE RATE OF $1800 PER YEAR OF
SERVICE FOR 1994 AND $2000 PER YEAR OF SERVICE FOR 1995 FOR THE ROSEMOUNT
FIRE RELIEF ASSOCIATION BENEFITS AND TO APPROVE AMENDMENTS TO THE RELIEF
ASSOCIATION'S "BYLAWS" TO REFLECT THESE BENEFIT CHANGES.
M E M O
TO: Mayor McMenomy
Councilmembers Anderson, Wippermann, Staats, Busho
FROM: Susan Walsh, Administrative Assistant
DATE: February 24, 1994
SUBJ: Fire Relief Association Benefits
The following information was provided to me by President of the Relief
Association, Bob Turek. This will give you an idea what other relief
associations of surrounding communities are paying for retirement benefits:
Apple Valley $2900 per year of service
Eagan $3500 per year of service
Farmington $1450 per year of service
Hastings $2700 per year of service
Inver Grove Hts. $2100 per year of service
Lakeville $3500 per year of service*
*The above benefits are amounts based on greater than 20 years of service.
I've attached for you a page from Rosemount Relieve Association's "Bylaws"
which gives you an idea of the amounts member will receive between 10 and
20 years at $1600 a year.
The following is an example of how the benefits are computed according the
the "Bylaws. " I've used $1600, $1800 and $2000 based on retiring after ten
years of service.
For example: 10 years at $1600: 10 x 1600 x 60� _ $ 9, 600
10 years at $1800: 10 x 1800 x 60% = $10,800 .
10 years at $2000: l0 x 2Q00 x 60% = $12,000
AMENDMENT TO
ARTICLE VIII.
DEATH BENEFITS AND pENSIONS
� (continued)
Section 6.
a) The YEARI,Y PENSION AMOUNT that the Association will pay
is $1600 .00 (SIXTEEN HUNDRED) DOLLARS per "YEAR OF
SERVICE" .
b) PERCENT OF 20 YEAR PAYMENT
$1600.00 per "year of service°
Years of Service Percentage of Amount of Payment
on Fire Department 20 Year Payment at age of 50 years
10 60 9fi00.00
. 11 64 11264.QO
12 6$ 13Q56.00
13 72 14976.00
�-4 76 1�024.00
15 80 19200.00
16 84 21504.00
1? 88 23936.00
18 92 26496.00
19 96 29184.00
20 1Q0 320Q0.00
. _
Section 7
A member who wishes to be placed on the deferred pension
roll, shall submit to the Board of Trustees an application
for benefits form, within 30 (THIRTY) days of resignation
from said fire department. The Board of Trustees shall then
determine the "years of service" on said fire department, and
determine the amount of pension payable to the member. The
memher will then be notified by the Secretary as to the
amount of pension benefit. During the time that a member is
on the deferred pension roll, he shall continue to pay dues,
and will not be eligible to receive any benefits provided for
in these bylaws.
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