2017.06.27 CC PAcket - Laserfiche WebLink

Home Browse Search

REQUEST FOR CITY COUNCIL CONSIDERATION ITEM DESCRIPTION: Consider Resolution Authorizing an Amendment to the Retirement Benefit Level for the New Brighton Firefighters’ Relief Association Bylaws DEPARTMENT HEAD’S APPROVAL: Anthony S. Paetznick, Director of Public Safety CITY MANAGER 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 $6,700 per year of service effective June 28, 2017. Legislative History: Council last approved an increase to $6,500 per year of service on April 26, 2016. Financial Impact: As of December 31, 2016, the firefighters’ pension is 109.6% funded with assets totaling more than $3.5 million. The Relief Association investments are managed by the State Board of Investments, with a 5.7% 15-year rate of return, placing New Brighton in the 97th percentile of all Relief Associations in Minnesota for investment performance. State Fire Aid is budgeted at $122,000 in 2017. Explanation: Beginning in 2014, the Relief Association first offered to Council a long-term financial forecast that budgeted annual $200 increases in the benefit level commencing in 2016. Consistent with that discussion, the Relief Association again provided updated projections to Council, with the intention to continue this approach of annual planning for moderate benefit level increases to assure ongoing recruitment and retention of firefighting personnel for the City of New Brighton. ________________________________________ Anthony S. Paetznick Director of Public Safety Attachments: • Resolution AGENDA SECTION: Consent REPORT DATE: June 20, 2017 MEETING DATE: June 27, 2017