The URL can be used to link to this page

Home My WebLink About6.d. 2019 Fire Relief Fund Benefit Proposal EXECUTIVE SUMMARY City Council Regular Meeting: August 5, 2019 AGENDA ITEM: Fire Relief Fund Benefit Proposal AGENDA SECTION: Consent PREPARED BY: Logan Martin, City Administrator Jeff May, Finance Director AGENDA NO.: 6.d. ATTACHMENTS: None APPROVED BY: LJM RECOMMENDED ACTION: Motion authorizing a $100 increase up to $7,400 for the Rosemount Fire Relief Association’s annual retirement benefit. BACKGROUND The Fire Relief Association, which manages the pension funds for our firefighters, has recommended a $100 increase in the retirement benefit from $7,300 to $7,400 per year of service. Representatives from the Relief Association provided staff with updated financial projections reflecting this proposal, which indicate that the Relief Fund will be 131% funded after accounting for the proposed increase. This funding ratio is largely reflective of the positive results the Relief Association’s investments have been receiving. As the Council will recall, the City worked with the Relief Association in 2015 to reduce the City’s annual contribution to the Relief Fund from $171,000 annually to $30,000. This allowed the City to reduce its levy, and also led to the development of a five-year plan whereby an annual retirement benefit increase of $100 per year would be considered, up to the Relief Association’s goal of $7,500 per year. A fund balance requirement of at least 120% coverage was also an agreed upon component of this plan, as the fund needs to be able to support its future liabilities. The City Council will meet in a work session with representatives from the Relief Association on August 5 to discuss their proposal for a new system to address future adjustments to the annual benefit. More discussion and consideration of adoption of that plan will occur in the coming months. RECOMMENDATION Staff recommends the City Council approve a motion authorizing a $100 increase up to $7,400 for the Rosemount Fire Relief Association’s annual retirement benefit, effective June 30, 2019.