The URL can be used to link to this page

Home My WebLink About2014-110 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 14-110 RESOLUTION OPTING TO JOIN THE VOLUNTARY STATEWIDE LUMP -SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN WHEREAS, The City of Lino Lakes is authorized to join the Voluntary Statewide Lump -Sum Volunteer Firefighter Retirement Plan (SVFRP) administered by the Public Employees Retirement Association (PERA); and WHEREAS, The City of Lino Lakes has obtained a cost analysis for joining the Voluntary Statewide Lump -Sum Volunteer Firefighter Retirement Plan from PERA not more than 120 days ago; and WHEREAS, The City of Lino Lakes highly values the contributions of City Fire Department members to the safety and well being of our community and wishes to safeguard their pension investments in a prudent manner NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lino Lakes, Anoka County, Minnesota, hereby does levy on a preliminary basis the following upon taxable property in said City of Lino Lakes: 1. The City of Lino Lakes hereby approves coverage by and requests participation in the Voluntary Statewide Lump -Sum Volunteer Firefighter Retirement Plan administered by PERA under the terms provided in the PERA costs analysis at the $5,000 benefit level per year of service; and 2. The City Clerk/Administrator and Mayor are hereby authorized to execute all documents necessary to effectuate the intent of this resolution. The motion for the adoption of the foregoing resolution was introduced by Council Member Kusterman and was duly seconded by Council Member Roeser and upon vote being taken thereon, the followin voted in favor thereof: Kusterman, Roeser, Rafferty, Stoesz, Reinert The following voted against same: none ATTEST: i nne Bartell, City 1� CITY COUNCIL AGENDA ITEM 4C STAFF ORIGINATOR: John Swenson, Director of Public Safety MEETING DATE: September 22, 2014 TOPIC: Approval of Resolution 14-110 Authorizing Enrollment in Statewide Lump -Sum Volunteer Firefighter Retirement Plan (SVFRP) VOTE REQUIRED: 3/5 INTRODUCTION As part of the integration of fire services into the Public Safety Department, staff has engaged Springsted to evaluate the options available to the City of Lino Lakes for the creation of a firefighter relief/pension plan. During the June 23, 2014 Council Meeting, Council directed staff to move forward with the enrollment of the City of Lino Lakes in the Statewide Lump - Sum Volunteer Firefighter Retirement Plan (SVFRP) administered by PERA. BACKGROUND During the Council Meeting on June 2, 2014, Council approved Resolution 14-50 which directed staff to integrate fire services for the City of Lino Lakes into the Public Safety Department. Staff engaged Springsted as well as staff from the Public Employees Retirement Association (PERA) to explore fire pension options available to the City of Lino Lakes. Springsted has developed a detailed report for the Council that outlines these options and was presented at the June 23rd Council Meeting. It is anticipated that paid on-call fire personnel will begin fire training in January of 2015; therefore a resolution authorizing the City of Lino Lakes to enroll on January 1, 2015 is required. It should be noted that the City estimated annual cost for enrollment in SVFRP was reduced by $27,941 from the estimate provided at the June 23rd Council Meeting. This reduction stems from the use of existing City staff, who will not participate in the SVFRP, as fire personnel. RECOMMENDATION Staff recommends that the Council approve Resolution 14-110 authorizing enrollment in the Statewide Lump -Sum Volunteer Firefighter Retirement Plan administered by PERA at the $5,000 per year service credit lump -sum level. ATTACHMENTS SVFRP Letter from PERA dated September 16, 2014 Resolution No. 14-110 Public Employees Retirement Association of Minnesota 60 Empire Drive, Suite 200 St. Paul, MN 55103-2088 Phone: 651-296-7460 or 1-800-652-9026 Website: www.mnpera.org September 16, 2014 Al Rolek City of Lino Lakes 600 Town Center Pkwy Circle Pines MN 55014 Unit No. 5906-00 We received your request for a cost analysis to estimate the cost of joining the statewide volunteer firefighter retirement plan administered by PERA. Based on the information you provided to us, we have developed this spreadsheet and a cost analysis for the benefit levels you requested. The results are shown below. Per you phone call request, I have prepared the analysis assuming the $5000 benefit level for 30 firefighters that join the PERA Statewide plan on January 1, 2015. Payments to Plan Begin 12/31/2016 12/31/2015 A. Benefit Level (per year of service): $5,000 $5,000 B. Estimated yearly normal cost: $91,686 $86,496 C. Estimated yearly admin expenses: $900 $900 D. Estimated beginning asset value: $0 $0 E. Estimated beginning liability: $168,096 $81,600 F. Estimated Deficit Amortization Payment ((E -D)/10): $16,810 $8,160 G. Estimated Total Required Contribution (B+C+F): $109,395 $95,556 H. Estimated Investment Income (D x 6%): $0 $0 I. Estimated Fire State Aid (2012 Amount): $0 $0 J. Estimated Municipal Required Contribution (G -H-1): $109,395 $95,556 Please note that these are estimates only. Should you choose to join the statewide plan on January 1, 2015, the required municipal contribution you would pay in 2015 is $0. However, if the payments start in December 2015, the annual cost would decrease as shown in the second column above. As a reminder, no benefits are payable until a fire fighter is vested in 5 years. At this point, if you have any questions, please feel free to give me a call at 651-201-2681. If I am not available, please contact Dave DeJonge at 651-201-2641 and he would be happy to answer your questions. In accordance with Minnesota Statute 353G.05, if you wish to join the statewide plan, we must receive a signed resolution from the governing body of your municipality within 120 days of the receipt of this cost analysis. A sample resolution. can be found on our website, www.mnpera.org, under the Employers tab. David Andrews Accounting Supervisor