CCP 07-27-2010 - Laserfiche WebLink

Home Browse Search

1r Irl Report Number 10-175 Agenda Section VI -3 the city that wows for you Council Meeting Date July 27, 2010 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Resolution Authoring an Amendment to the Retirement Benefit Level to the New Brighton Firefighters' Relief Association Bylaws DEPARTMENT HEAD'S APPROVAL: Anthony S. Paetznick, Deputy Director of Public Safety CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Approve the Resolution to Authorize an Amendment to the New Brighton Firefighters' Relief Association Bylaws to Increase the Pension Benefit Level for Firefighters to $5,400 per year of service for 2010 ($100 increase or about 1.8%). Legislative History: This item was tabled at the June 2I't Council Meeting with a request for additional information which is attached to this report. At the July 13°i Council Meeting, this item was tabled for discussion at the next Work Session. Council last approved an increase to $5,300 per year of service on 26 February 2008. The Relief Association chose not to seek a benefit increase last year. Financial Impact: The Relief Association is funded by State Fire Aid, ongoing investment earnings, and a City Contribution. State Fire Aid is budgeted at $120,000 in 2010. The City Contribution to this fund in 2010 is budgeted at $46,200. The $100 change is less than a 2% increase for this retirement benefit. Explanation: On an annual basis, the Mayor, City Manager, Finance Director, and the New Brighton Firefighters' Relief Association meet to discuss the appropriate retirement benefit level for Firefighters. Members of the 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 Relief Association is funded thin State Fire Aid (pass thru money from the State directly to the Relief Association), an annual City contribution, and, investment earnings. The fund has an independent audit conducted on an annual basis by an outside accounting firm which was reviewed by the Mayor, City Manager, Finance Director and the Relief Association on April 5, 2010. The fund had assets totaling more than $2.4 million at the end of 2009. The Relief Association investments are regulated by the State Board of Investments. 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 plan is currently 94% funded. U k *---, Anthony S. Paetznick Deputy Director of Public Safety 10APublic Safaiy�FveReliefBwefi�Level.doc