2025.07.07 CC Packet - Laserfiche WebLink

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Page 2 DEFERRED INTEREST RATE The Office of the State Auditor recently issued guidance stating that, in order for deferred members to be credited with interest, the rate must be approved by a relief association’s board of trustees and ratified by the affiliated municipal governing board. Section 16.2 of the Hugo Firefighter’s Relief Association’s Bylaws specifies that the Association shall add to the deferred member's account, interest, at the rate of five percent (5%) compounded annually. The Relief Association voted to maintain the 5% interest rate for deferred members as currently stated in the bylaws and is asking the City Council to ratify the interest rate received by deferred members. BYLAW REVISIONS The Hugo Firefighter’s Relief Association recently hosted a training session presented by Ed Hoffman from the Minnesota State Fire Department Association. Members of Hugo’s Board, along with representatives from surrounding associations participated in the training session. Best practices were reviewed, and updates were provided on state statutes. Trustee Bob Bieniek had undertaken the detailed task of reviewing the current bylaws and identifying omissions, corrections and statute updates needed. Sections were revised to reflect statutory changes, language updates were made, and officer salaries were increased. The Relief Association voted to update the bylaws as presented and is asking the City Council to ratify the revisions to the bylaws. RECOMMENDATION Staff is recommending the City Council: 1. Approve a motion to ratify the Board of Trustees request for a $500 increase in the lump-sum pension benefit and approve a change to the bylaws incorporating this new benefit level 2. Approve a motion to ratify the 5% interest rate received by deferred members 3. Approve a motion to ratify the revisions to the bylaws ATTACHMENTS Letter from Dave Jensen, President of the Board of Trustees Relief Association Comparisons Financial Projections Complete Copy of the Hugo Firefighter’s Relief Association Bylaws (revisions in red)