05-10-2023 Workshop Packet - Laserfiche WebLink

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4 ATTACHMENT A Fire Relief Funding / Benefit Increase Program The Little Canada Fire Department and the City of Little Canada hereby agree to the following parameters to govern the funding of the Little Canada Fire Relief Association (LCFRA) and the methodology by which benefit increases shall be granted from 1/1/2020 through 12/31/2024. Those parameters are as follows: • City Contribution of $35,190 for 2023. • City Contributions will be increased on an annual basis according to the Cost of Living Adjustment (COLA) for staff based on the Consumer Price Index (CPI) for 2021-2024. • Benefit Increases shall be granted as follows: 1. Benefit increase calculations shall be done once per calendar year and as close as possible to January 1st of each year of this agreement. 2. Any increases granted shall be retroactive to January 1 of the calculation year or will be effective as soon as possible thereafter in that calendar year if retroactivity is not allowed pursuant to Minnesota Statute. 3. All benefit increases must be approved by the City Council. To achieve a benefit increase, the following worksheet must be completed. Benefit Per Year of Service: $_______ Ending Assets: $_______ (prior year fund balance as of 12/31) Pension Liability: $_______ (Unfunded) / Overfunded: $_______ Percent Funded: $_______ • The percent funded level cannot go below 110%. If 110% or above, the increase will be granted. If below 110%, no increase will be granted for that benefit level. • The goal of this formula is to provide sustainable benefit increases to the Little Canada Fire Relief Association while avoiding volatility in the levy requirements for the City. Both parties acknowledge that the investment performance is beyond the control of either party and poor investment performance will likely result in no benefit increases. • It is understood that the City of Little Canada will provide any required contribution for a deficit in the fund based on the MN Schedule Form SC-xx for Lump-Sum Pension Plans. (xx represents the last two digits for the year in question)