HomeMy WebLinkAbout7.a. 1987 Bond Issue - Bid AwardTO: Mayor Knutson
Councilmembers: Napper
Tucker
Walsh
'llard
FROM; Stephan Jilk Id
DATE: July 16, 1987
RE: Fire Department Relief Association
Pension increase Request
The Fire Department Relief Association currently enjoys a retirement benefit
based upon an accumulation of $1000. per year credit to the individual. The
amount to which the fireman is eligible to actually receive is based upon a ten
year vesting rule and then a sliding percentage scale for the number of years
he/she is with the department.
At twenty years of service the firemen would be eligible to receive (20 x 1000
20,000) $20,000. The financial support for this benefit comes from three
major sources; 1.) the State of Minnesota through a program where the city
gets 2% of fire insurance premiums in Rosemount, 2.) investment returns for the
Relief Association cash on hand and 3.) citys' lax levy.
For the 1987 tax year the had a $9200. requirement to fund their portion.
Based upon $1000. benefit the 1988 tax year would require little or no levy.
Upon review of other area departments pension programs we see that Rosemount is
quite low in comparison. To bring Rosemount more into line with others the
Relief Association requested increasing the benefit to accrue at $1400. per
year of service compared to $1000. currently.
Following our meeting I felt the following should be done:
1.) Increase benefit of $1200. per year of service commencing in 1988.
2.) Increase benefit to $1400. per year of service commencing in 1990.
3.) Consider additional increase in 1993 based upon citys' ability to support
such a increase and in comparing other citys status in this regard.
To support an increase to $1200. per year of service credit would require a
levy next year of $13,417. compared to $9200. in 1987. If we were to have gone
to the $1400. in 1988 it would have required a $25,422. levy. By increasing in
steps the levy should not go much above in the $13000. + figure.
I feel the request is reasonable based upon the step approach and I recommend
its approval.
Glen Uitdenbogerd, fireman and president of the Relief Association, will be at
the meeting to answer any questions you may have on this matter.
In order to meet state reporting requirements action must take place on this
matter prior to August 1, 1987.
cc: Glen Uitdenbogerd
Fire Department/Relief Association
Pension/Pay
July 1987
City
Pension Plan
Regular Pay
Apple Valley
$11. per year of service
$5.75/hr
20 years = 20 x 11 = $132.
$132. per month paid for life.
Bloomington
Paid $920. month for life
$2.00/hr
after 20 years.
Eagan
$1500. per year of service
$5.00/hr
lump sum (20 x 1500 $30,000)
Hastings
$1700. per year of service
$10.00/hr
- city
lump sum (20 x 1700 = $34,000)
$11.00/hr
-outside city
Inver Grove Hgts
$1300. per year of service
$3.35/hr
lump sum (20 x 1300 = $26,000)
Lakeville
$1750. per year of service
Varies on
type of
service.
Mendota Hghts
Deffered Comp Type Plan
$6.00/hr -1st
year
$6.50/hr
2-5 years
$7.00/hr
5 + years
Northfield
$1900. per year of service
$12.00 per
call
lump sum (20 x 1900 = $38,000)
Rosemount
$1000. per year of service
$5.00/hr
lump sum (20 x 1000 = $20,000)