HomeMy WebLinkAbout6.f. 2020 Fire Relief Fund Benefit Proposal
EXECUTIVE SUMMARY
City Council Regular Meeting: July 21, 2020
AGENDA ITEM: Fire Relief Fund Benefit Proposal AGENDA SECTION:
Consent
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO.: 6.f.
ATTACHMENTS: 2019 Annual Report APPROVED BY: LJM
RECOMMENDED ACTION: Motion authorizing a $400 increase up to $7,800 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 $400
increase in the retirement benefit, changing from $7,400 to $7,800 per year of service. Representatives from
the Relief Association provided staff with updated financial reports reflecting this proposal, which indicates
that the Relief Fund was 142% funded as of 12/31/2019 after accounting for the proposed increase. As of
April 2020, the Fund was 129% funded when accounting for this increase and in response to the market
downturn of early 2020.
As the Council will recall, the Relief Association worked with the City in the fall of 2019 to establish a
procedure for adjusting the annual benefit based on the status of their fund balance ratio. When the funding
ratio is above 140% at the end of the calendar year, a $400 increase is proposed.
RECOMMENDATION
Staff recommends the City Council approve a motion authorizing a $400 increase up to $7,800 for the
Rosemount Fire Relief Association’s annual retirement benefit, effective June 30, 2020.
Parr McKnight
State Board of Investments
2018
Ending Balance
2019
Ending Balance % Change
$1,315,810.48
$2,502,415.20
$1,539,827.27
$3,003,409.96
18.21%
20.03%
Fire State Aid Supplemental State Aid$121,464.27 $28,119.07
# Separated Not Vested
# Separated Added to Deferred
# Separated Benefit Paid
# Deferred Paid
# Added 4
1
2
0
1
Beginning of Year
# Active # Deferred
End of Year
42 4
43 5
Accrued Liabilities
Assets
Funding Ratio
2019 Year End Funding Ratio
$4,700,486
$3,176,412
148%
Plan Funding Ratio Increase
less than 122%$0
122% or greater but less than 128%$150
128% or greater but less than 136%$275
136% or greater $400
Accrued Liabilities
Assets
Funding Ratio
Funding Ratio after Increase
$4,700,486
$3,323,108
141%
Benefit Increase of $400
Parr McKnight
State Board of Investments
2019
Ending Balance
2020
Balance as of 6-03 % Change
$ 1,539,827.27
$ 3,003,409.96
$1,419,624.00
$2,870,832.49
3.77%
0.03%
Accrued Liabilities
Assets
Funding Ratio
2019 Funding Ratio with Increase
$4,700,486
$3,323,108
141%
Accrued Liabilities
Assets
Funding Ratio
Funding Ratio after Increase as of 4-30
$4,298,253
$3,323,108
129%