HomeMy WebLinkAboutcc3 18 08reliefassociation City Council
Date: March 18, 2008
CONSENT
Item: 3a., b
Motion:
ITEM: Consider approval of the following two items:
• Relief Association request to increase service pension benefit
• Approve By-law revision regarding Survivor Benefit as recommended by the Pension
consultants.
SUBMITTED BY: Brad Winkels, Relief Association President
REVIEWED BY: Relief Association Board of Directors
Susan Hoyt, City Administrator
Tom Bouthilet, Finance Director
____________________________________________
SUMMARY AND ACTION REQUESTED: The City Council is being asked to approve to
actions related to the Fire Relief Association that have been approved by the Fire Relief
Association Board of Directors. These are:
1) increase the pension for firefighters from $3,100 to $3,600 per year, which is
the first increase since March 2000 or 8 years ago or a 2% increase per year.
This has been reviewed by the Fire Relief Association Auditor and pension
consultant. The increase will not impact city revenues because the city does not
contribute to the Relief Association and the funds in the Relief Association
pension are adequate to cover any changes that might occur in the rate of return
on investments without putting the city at financial risk required by statute that
makes the city responsible for making up pension fund shortfalls..
Increase the pension benefit from the current $3,100.00 per year benefit to
$3,600.00 per year as approved by the Relief Association Board and the Relief
Association body at the annual meeting on 3/02/2008. Pension increase is based
on projections done by the Associations Auditors, HLB Taugtes Redpath, year
2007 investment returns, and have been attached. This increase will maintain the
fund over the 110% funding level required by law. The last pension increase was in
March 0f 2000. This increase will have no direct budgetary impact and will be
totally funded by the Relief Association Fund
2) amend the by laws clarifying the language for the survivor benefit with clarifying
language as recommended by the Minnesota Pension Fund and Office of the State
Auditor. This has no financial impact. The revision clarifies that both active and
deferred members might be eligible for survivor benefits.
Motion: Approve the increase in the Lake Elmo Fire Relief Association annual benefit to
$3,600 per year and amend the Relief Association By-laws regarding the survivor benefit
as recommended by the Minnesota Pension Fund and Office of the State Auditor.
ATTACHMENTS:
• Years of Service Projections, Procedure #2
• Survivor Benefit By Law Solution Package