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MzNUres <br />City Council <br />May ]89 1982 <br />k'iremeris Mr. lleAace comrnerGted that he feels the Uene£iC 1eve1 could Ue incre~.sed <br />Itelief Co the $700 £igure rea].istiaally wi.th Che iraterest earnings that ~he <br />Assocaa~i.on tund i.s ac~ually receivi.ng, De33aae also sCatecl that the li,abzli~y <br />(ConC,) could Ue paid i.n abouC Chree or kour qears. <br /> Mr. Voto informed those presf*nt Chat ~here would be no prnbl.em w9,th <br /> benefit level increases every five or six years. Howevar, ttzer.e <br /> crould be a problem with incr.easc~s ever.y year, <br /> Mr. E'ahey stated that he would no~ expect the Fire Departmen2: to come <br /> i.n every qear~ xec'puesting a bene£it i.ncrease. Fahey commentecl that <br /> a$700 benefit leve2 witki a$12,500 contriburcion on the par~ of the <br /> Ci.~y does trouble him. <br /> rrr. Voto askecl the reason the Far.e Department maintained a~ruck fundo <br /> Mr. Soss repli~.~cl Chat a new pieea of et~uipmerit would cost about $80g000 <br /> to $100,000, Mr, Voto statecl Y.hat Che equipmei4: could be bought Chrough <br /> a bond i.ssue. Mr.. Hoss s~.aY.ed that most fa.xe departmenLS around rehe <br /> State [eel that a truck L'und should be a per.F>etua7. thing. <br />Mr. DeHace agaxn stated that at the $700 bene£it level wi,~h ynter.est <br />earnings, the Citys conCribution of $1.2,500 would be mor.e than enough <br />to fund the increase. Mr. VoCo repli~ci that tha Statr St~tute rec~uir~s <br />the C9.ty contxibute 57.8,800 Co Che fund Co Einance the $700 Ueriefit, <br />Mr, Hanson asked the F'ir.e Department if they wanted Che Council to T:a.lce <br />acCion on Chi.s Conight. Mx. Boss repli.ed that Lhey d'a.d. <br />Mr., Fahey commented that if tha bPn€Eit were ~.ncreasecl C~ $700 the <br />City would have to conCribute $18,800 even though Che Ei~ures ar.e <br />artificial in that they do,not Cake anto consideration actual inL~res~ <br />ear.nings, <br />Mx, Pahey sCated Cha~ he coulcl not see a.ncr.easing t11e benefit 1:o the <br />po9.ns; ChaC L•he City would have 9:o contribute more money than the $12,500. <br />Mr., Fahey commentecl Chat the $18,8U0 contributi.on ~aould Ue an increas~ <br />of 50%. <br />Mx, Hansan commented that the benefa.C is paid ~o someone reCiring from <br />the Department based on his years oC service, which woul.d be a~ leas4 <br />20, i:imes the aatual be~eL'a.t level. The l'ire Ctxief stated tha~ the <br />reeiree would have the option o£ taking the pens9on in a lump sum <br />or over a five year period or rolling it over inCo an IRA. <br />Mr, Fahey pointed ouC thaC the CS.ty has had only one year of con~ributa.ng <br />$].2,500 and it would be toa c~uick Co inerease Che contra.butxon Lo $1£3,800, <br />i1rs, Nardi.ni sCated tha~ a lev~~ incr.ease o£ $500 ~o $700 is a pretty <br />large inerease, <br />Mr. li~nson a,yked 'a.f the incxease would eEt'ecC pending r.et9.rements> <br />Ms. lloss replied Cha.~ che incr.ease wnuld ~;o in~.o ef£ect irnmediately. <br />Page -4- <br />