HomeMy WebLinkAbout6.h. Firefighter Relief Association Benefit Interest Rate Change
EXECUTIVE SUMMARY
City Council Regular Meeting: December 15, 2020
AGENDA ITEM: Firefighter Relief Association Benefit
Interest Rate Change
AGENDA SECTION:
Consent
PREPARED BY: Logan Martin, City Administrator AGENDA NO. 6.h.
ATTACHMENTS: Deferred Interest Rate Determination APPROVED BY: LJM
RECOMMENDED ACTION: Motion to set the benefit interest rate for a fully vested
deferred member to 3.0% for 2021.
BACKGROUND
According to The Firefighter Relief Association (the “Relief Association”) bylaws 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) is based on the previous year’s special fund investment percentage (the max is
5% and the minimum is 0%). 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 increase/decrease percentage, as of the end of October, is at 2.93%, so the rate
for a deferred member will be rounded and set at 3.0%. This rate will apply to anyone that retires in 2021
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.
RECOMMENDATION
Staff recommends the approval of the above-motion.
Year 2020
Beginning Balance as of 1-1-2020 3,003,409.96
Gain/Loss as of 10-31-2020 130,589.90
Rate of Return 4.35%
Beginning Balance as of 1-1-2020 1,539,827.27
Gain/Loss as of 10-31-2020 2,527.04
Rate of Return 0.16%
Beginning Balance as of 1-1-2020 4,543,237.23
Gain/Loss as of 10-31-2020 133,116.94
Rate of Return 2.93%
State Board
Parr McKnight
Combined