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. 0f <br /> Report Number 12-084 <br /> EW <br /> BRI ' Agenda Section VIII-1 <br /> u„•city that it„rks h,r lot/ Council Meeting Date April 10,2012 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> ITEM DESCRIPTION: Resolution Authoring an Amendment to the Retirement Benefit Level to <br /> the New Brighton Firefighters' Relief Association Bylaws <br /> DEPARTMENT HEAD'S APPROVAL: Anthony S. Paetznick, Deputy Director of Public Safety <br /> CITY MANAGER'S APPROVAL: <br /> No comments to supplement this report !�_ Comments attached <br /> Recommendation: <br /> Approve the Resolution to Authorize an Amen ent to the New Brighton Firefighters' Relief <br /> Association Bylaws to Increase the Pension Benefit Level for Firefighters by$100 to $5,700 per year of <br /> service for 2012 effective 11 April 2012. <br /> Legislative History: <br /> Council last approved an increase to$5,600 per year of service on 10 May 2011. <br /> Financial Impact: <br /> The Relief Association is funded by State Fire Aid, ongoing investment earnings,and a City <br /> Contribution. State Fire Aid is budgeted at$82,000 in 2012. The City Contribution to this fund in 2012 <br /> is budgeted at$46,200, an amount that has remained unchanged in the City's budget for the past four <br /> years. <br /> Explanation: <br /> On an annual basis,the Mayor, City Manager, and the New Brighton Firefighters' Relief Association <br /> meet to discuss the appropriate retirement benefit level for Firefighters. Members of the Relief <br /> Association can collect"lump sum"retirement benefits after reaching the age of 50 with a minimum of <br /> 10 years of service as a New Brighton Firefighter. The Relief Association is funded thru State Fire Aid <br /> (pass thru money from the State directly to the Relief Association), an annual City contribution, and, <br /> investment earnings. The fund had assets totaling more than $2.7 million at the end of 2011. The Relief <br /> Association investments are regulated by the State Board of Investments. The City's financial exposure <br /> to supplement the fund for retirement benefits beyond what is already budgeted is negligible. The plan is <br /> currently 101%funded.The Association has a long-standing agreement that it will only seek a benefit <br /> increase if the pension is funded more than 85%and the fund must be greater than 100%funded to obtain <br /> an increase beyond the traditional $100 annual raise. <br /> 1 <br /> Anthony aetznick <br /> Deputy Dir ctor of Public Safety <br /> I:\COUNCIL\REPORTS\2012\Public Safety\FireReliefBenefitLevel.doc <br />