CCP 02-26-2008 - Laserfiche WebLink

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L-1 lb'BRUHTON Of NEW the city that works for you Report Number Agenda Section Report Date Council Meeting Date 08-062 VI -3 February 19, 2008 February 26, 2008 REQUEST FOR COUNCIL CONSIDERATION - - - - - - - - - - - ITEM DESCRIPTION: Resolution Authoring an Amendment to the Retirement Benefit Level to the Firefighter's Relief Association Bylaws DEPARTMENT HEAD'S APPROVAL: Roberti. Jacobson, Director of Public Safety CITY MANAGER'S APPROVAL: No comments to supplement this Comments attached Recommendation: V Approval of the Resolution to Authorize an Amendment to the Firefighter's Relief Association Bylaws to Increase the Retirement Benefit Level for Firefighter's to $5,300 per year of service for 2008 ($200 increase). Legislative History: The City Manager, City Finance Director and the Firefighter's Relief Association have met annually to review the retirement benefits paid to members who retire with at least 10 years of service and are age 50 or higher. On 24 April 2OO7, Council approved an increase to $5,100 per year of service. Financial Impact: The Firefighter's Relief Association is funded by State Fire Aid, ongoing investment earnings, and a City Contribution. State Fire Aid is budgeted at $130,000 in 2008. The City Contribution to this fund in 2008 is budgeted at $46,200. Explanation: On an annual basis, the City Manager, Finance Director, and the Firefighter's Relief Association meet to discuss the appropriate retirement benefit level for Firefighters. Members of the New Brighton Firefighter's Relief Association can collect "lump sum" retirement benefits after reaching the age of 50 with a minimum of 10 years of service as a New Brighton Firefighter. The Firefighter's Relief Association is funded thru State Fire Aid (pass thru money from the State directly to the Firefighter's Relief Association), an annual City Contribution, and, investment earnings. The fund has an audit conducted on an annual basis which is also reviewed by the City Manager, Finance Director and the Firefighter's Relief Association. The fund had assets totaling more than $2.4 million at the end of 2007. The Fire Relief Association investments are regulated by the State Board of Investments and have a record of steady growth and stability. The City's financial exposure, even during this time of economic concern, to supplement the fund for retirement benefits beyond what is already budgeted is negligible. The City Manager, Finance Director, and Firefighter's Relief Association have met to discuss this benefit level increase and are in agreement regarding the benefit increase. . Robert J. Jaco son Director of Public Safety 1ACOUNCIUREPORTSMO8\Public Safety\PlreRellefBenefitLevel,doc