HomeMy WebLinkAbout6.e. Firefighter Relief Association Benefit Interest Rate Change
E X E C U T I V E S U M M A R Y
City Council Regular Meeting: December 6, 2022
AGENDA ITEM: Firefighter Relief Association Benefit
Interest Rate Change
AGENDA SECTION:
Consent
PREPARED BY: Logan Martin, City Administrator 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 0.0% for 2023
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
maximum is 5% and the minimum is 0%). Each year the board needs to calculate the rate at the end of
October, so that 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 1 st.
This year the investment increase/decrease percentage, as of the end of October 2022, is at -14.63%, so
the rate for a deferred member will be set at 0.0% (the minimum it can be set to). This rate will apply to
anyone that retires in 2023 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 Reed Drangstveit, the Relief Association Secretary, with any questions or concerns.
RECOMMENDATION
Staff recommends the approval of the above-motion.