HomeMy WebLinkAbout6.h. Fire Relief Association Deferred Interest Rate
EXECUTIVE SUMMARY
City Council Meeting: December 3, 2019
AGENDA ITEM: Fire Relief Association Deferred Interest
Rate
AGENDA SECTION:
Consent
PREPARED BY: Fire Chief Schroeder AGENDA NO. 6.h.
ATTACHMENTS: None APPROVED BY: LJM
RECOMMENDED ACTION: Motion to set the benefit interest rate for a fully vested
deferred member to 5% for 2020.
BACKGROUND
Last year, the Firefighter Relief Association (the “Relief Association”) made a change to the interest rate
for members placed on the fully deferred list (firefighters that have retired with 20 or more years of service
and are not 50 years of age). The rate is now based on the previous year’s special fund investment
percentage. Each year the board needs to calculate the rate at the end of October, so that the they can
approve the rate at the Relief Association’s November meeting, and then have the Council approve the
rate at a December meeting to make it effective January 1st.
This year the investment percentage, as of the end of October, is at approximately 15.06%, so the rate for
a deferred member will be set at 5% (the max percent is 5). This rate will apply to anyone that retires in
2020 with more than 20 years of service but has not reached the age of 50, and anyone that is currently on
the deferred list. Currently, we do not have any members on the fully deferred list.
Please contact Scott Engelmann, the Relief Association Secretary, with any questions or concerns at 651-
402-1922.
RECOMMENDATION
Staff recommends the approval of the above-motion.