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<br /> <br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br /> <br />Meeting Date: October 8, 2018 <br /> <br /> <br />Resolution - St Anthony Fire Relief Association’s opting to join the statewide Lump-Sum <br />Volunteer Firefighter retirement plan and increasing the benefit level to $3,800 <br /> <br /> <br />OVERVIEW: <br /> <br />In front of you this evening is St. Anthony Fire Relief Association (SAFRA) request for the approval <br />to join the statewide Lump-Sum Volunteer Firefighter retirement plan (PERA plan) along with <br />increasing the benefit level to $3,800. Attached are the SAFR 9/23/2019 minutes which reflect a <br />unanimous vote to join the PERA plan. <br />The benefits with joining the PERA plan include: <br />• Need of annual audits and annual reporting is eliminated, current cost of audit ≈ $12,000 <br />• Plan Administration is handled by PERA at a nominal cost, ≈ $1,000 <br />• Expertise of State Board of Investments while eliminating Investment Advisor fees, current <br />cost ≈ $10,000 <br />• Reduces vesting requirements from 10 to 5 years, which aids in recruitment and retention <br />PERA has provided a cost analysis for SAFRA joining the PERA plan, see attached. The analysis <br />prepared reflects a pension funding ratio of 112% at the $3,800 level. Please note that in joining the <br />PERA plan any retirement payouts for the first five years will be made at the $3,800 level. Despite any <br />subsequent increases in the benefit level. <br />Staff has also reviewed the SAFRA’s benefit model which calculates funding levels using escalating <br />benefit levels, see spreadsheet attached. This modeling process is according to SAFRA policy and has <br />been in practice for several years. The SAFRA’s model uses a more conservative calculation of <br />pension liability than PERA for determining benefit level increases. The proposed $3,800 benefit level <br />still produces a full funded plan with a smaller surplus under the SAFRA traditional methodology <br />(funding level 101%). <br /> <br />Based on the benefits gained with joining the PERA plan, and that the PERA and SAFRA modeling <br />both project a $3,800 benefit level will maintain the plan at more than 100% funded, Staff recommends <br />that the Mayor and City Council approve resolution 19-xxx <br /> <br />53