CC WS PACKET 08222023 - Laserfiche WebLink

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SAINT ANTHONY VILLAGE FIREFIGHTER’S RELIEF ASSOCIATION 3505 Silver Lake Road Saint Anthony Village, Minnesota 55418 Thursday, August 17, 2023 Mayor and Councilmembers; Each year the St. Anthony Fire Department Relief Association (SAFDRA) reviews its financial position to determine if the existing benefit level should be adjusted according to its policy. For 2024, a change to increase the benefit level was determined by this process. Background: In 2020, the SAFDRA moved its investments from a private firm to the Statewide Volunteer Firefighter Plan (SVP) which is managed by the State Board of Investments (SBI). This has been common practice among many fire relief associations. This move provided the SAFDRA with significant savings tied to large investment fees, accounting costs, and actuarial costs. In the past, the SAFDRA would have been required to get an outside actuarial report to review its current level of funding and to determine if an increase in the pension amount should be considered. However, with this move to the SVP, that review is now performed directly by the State itself. This allows the SAFDRA to utilize an Accounting Officer through the State of MN to do the research and make a recommendation at no additional charge. The State’s computation of pension liability is a conservative practice. It takes projected liabilities and projected assets to determine a surplus or deficit as well as a funding ratio. The result from the accounting officer determined that a $400 increase would still keep the pension plan at a funding ratio of 132%. Therefore, I recommend that the Mayor and City Council approve $4,200 as the 2024 benefit level reflecting a previous increase from 2020. Thank you for your consideration in the matter, Michael Culhane Michael Culhane Treasurer St. Anthony Fire Department Relief Association