HomeMy WebLinkAbout6.e. Firefighter Relief Association Benefit Interest Rate Change
EXECUTIVE SUMMARY
City Council Regular Meeting: December 4, 2018
AGENDA ITEM: Firefighter Relief Association Benefit
Interest Rate Change
AGENDA SECTION:
Consent
PREPARED BY: Erin Fasbender, City Clerk AGENDA NO. 6.e.
ATTACHMENTS: None APPROVED BY: LJM
RECOMMENDED ACTION: Motion to set the benefit interest rate for a fully vested
deferred member to 0% for 2019.
ISSUE
Last year, The Firefighter Relief Association (the “Relief Association”) made a change that the Relief
Association hopes will help with firefighter retention. In the past, when a firefighter would retire before
the age of 50 and had served for at least 20 years, the firefighter would be placed on a deferred list until
they were 50. During this time, they are entitled to receive interest on their benefit amount. In the past
this rate was set to a flat 5%.
Last year the Relief Association decided to change this rate to be based on the actual investment rate of
the Relief Association funds. In order to accomplish this, each year the board needs to calculate the rate at
the end of October, so that the board can approve the rate at the Relief Association’s November meeting,
and then to Council for approval at the December meeting.
As long as the rate is approved by the end of the year it will be in effect starting on January 1st of the next
year. This year the investment percentage, as of the end of October, is at approximately -0.1%, so the rate
for a deferred member will be set at 0%. This rate will apply to anyone that retires in 2019 with more than
20 years of service but has not reached the age of 50. Currently, we do not have anyone on the deferred
list that qualifies for interest on their benefit.
Please contact Scott Engelmann, the Relief Association Secretary, with any questions or concerns.
RECOMMENDATION
Staff recommends the approval of the above-motion.