HomeMy WebLinkAbout8D - Firefighters Pension
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
DISCUSSION:
ALTERNATIVES:
FINANCIAL IMPACT:
syp
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF VOLUNTEER FIREFIGHTERS'
REQUEST FOR IMPROVED PENSION BENEFITS
SEPTEMBER 16, 1996
Attached is a memorandum from the Prior Lake Volunteer Fire
Department which requests that pension benefits be improved as of
January 1, 1997 from $2,000 to $2,200 per year of service. This
agenda item provides information with regard to this request.
V olunteer firefighters have requested a $200 per year increase in
pension benefit amount effective January 1, 1997 from $2~000 to
$2200 per year of service. They are asking the City Council to
authorize an amendment to the Association Bylaws which provides
that a firefighter who has served in the Prior Lake Fire Department
for 20 years or more prior to resignation and has reached the age of
50 years old or more and been a member of the association for at
least 20 years shall receive $2,200 for each year of active service on
the department.
The current $2,000 per year pension benefit amount has been in
effect for the past year. The City's 1996 annual contribution to
support the pension fund is $4,111.00. This is over and above the
annual state aid received by the City, that is funded by 2% of the
homeowners insurance premium, which is dedicated by law for
pension contribution purposes.
Attached for Council information is a copy of a Fire Relief Pension
Survey prepared by Mike Lyrenmann, a Prior Lake Firefighter. As
you can see, Prior Lake's pension amount compares favorably with
other communities.
1. A motion and second to approve an amendment to the Prior
Lake Volunteer Firefighter Bylaws which provides for a $2,200.per
year of service credit for pension benefit purposes, effective January
1, 1997.
2. Take no action at this time and direct the staff to provide
additional information.
Based upon actuarial projections and current investment
assumptions, as indicated by Dave Chromy, the new pension benefit
H:\AGENDA\A9611.00c
16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
~
Prior Lake Volunteer Fire Department
TO: PRIOR LAKE CITY COUNCIL
FROM: PRIOR LAKE VOLUNTEER FIRE DEPARTMENT
SUBJECT: APPROVE INCREASE IN PENSION BENEFITS
DATE: SEPTEMBER 1, 1996
At this time we ask the city council to approve an increase in pension benefits as of January 1, 1997 from
$2000.00 to $2200.00 per year of service.
Therefore Article VIII, Section 2 will read:
The association shall pay to each member who shall have served as an active firefighter in the
Prior Lake Fire Department for a period of 20 years or more prior to hislher resignation from said
Fire Department and who has reached the age of 50 years or more and who has been a member of
the association for at least 10 years the sum of $2200.00 for each year that he served as an active
member of said Fire Department.
T~~ d~
Fire Chief,Dave Chromy 1
President, Doug Hartman
Treasurer, Mike Lyrenmann
4629 Dakota 51. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
'"'"'~"""'~'"~'""""--'~~'---_"'""_""""_",_",,,,,,,,",,,,~~_,,<"'''''''''~~',~,""'''''".'''',.~._"~._.,__.~~,~"",<.,,,__..'''.k_.~....__,_~","_."....,,<.~~...,.,. "..;,'_~.,,,,,-,.,",~_.,o,,.,,<~,.._...",,..~.__,"..~..,.,"_".,,,._...._,_...._~~""'_;_"",_."'-~~.....
PRIOR LAKE VOLUNTEER FIRE DEPARTMENT
PRIOR LAKE , MINNESOTA 55372
At a regular meeting of the Prior Lake Fire Department Relief Association, a motion was made and
seconded to increase our pension benefits as of January 1st, 1997 from $2000.00 to $2200.00 per year of
service.
Therefore, Article VIII, Section 2 should read: The Association shall pay to each member who shall have
served as an active firefighter in the Prior Lake Fire Department for a period of 20 years or more prior to
his/her resignation from said department, and who has reached the age of 50 years or more and who has
been a member of the association for at least 10 years, the sum of $2200.00 for each year that he/she
served as an active member of said fire department.
Recording s~
D~~ 7 ~7
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
FIRE RELIEF PENSION SURVEY
September 1, 1996
NUMBER OF MONTHLY 20 YEAR
CITY MEMBERS PENSION CREDIT LUMP SUM
Lakeville 69 3500/per yr. of service $70,000
Northfield 28 3300/per yr. of service $66,000
Chaska 40 3000/per yr. of service $60,000
Stillwater 36 2600/per yr. of service $52,000
Shakopee 33 2332/per yr. of service $46,640
Wilmar 47 2200/per yr. of service $44,000
Savage 38 2350/per yr. of service $47,000
Prior Lake 40 2200/per yr. of service $44,000
Owatonna 36 2150/per yr. of service $43,000
New Prague 30 1250/per yr. of service $25,000
LeSuer 24 1350/per yr. of service $27,000
Wacoma 34 850/per yr. of service $17,000
New Market 20 650/per yr. of service $13,000
Young America 29 550/per yr. of service $11,000
FIRERELF.DOC
.'
Form SC-96
SCHEDULE I-II FOR LUMP SUM PENSION PLAi'fS
STATE FIRE AID YEAR 1997
FuefighteXS Relief Association of ~I 0 ~ L-A-ILG-
County of
9.07"1
SCHEDULE I
Computation of benefit of relief association special fund (at S ~Dper year of service) for all members based on their years
of service as active fire department members.
1
2
3
4
5
6
7
F.D.
1996
To End of This Year
Years Active Accrued
Service Liabili
~, ~OO
b/&,tJO
4~~o
4 ~o
4tt; UJO
4 0 S-~ 8
:z. b8B
..,
1997
To End of Next Year
Name
Age
12.
13.
14.
*. DEFERRED
Total of Deferred Pensions.
If An. Total from a e 2
Total Unpaid Installments.
If An. Total from a e 2
Total of Early Vested Pensions
If An . Total from e 2
A. Acaued Liability Through Next
Year 1997 total. column 7
B. Accrued Liability Through This
Year 1996 total. column
C. SubtraCt Line B from
Line A normal cost)
>
I
SClIc4 I
o I
7!a~:2D \
jQ3380
iZoCr70
'72.4l0
o
7s/(p2-
>
720970 . '.:-'>
Fractional Years of service must be calculated to IU:31'CSt full year.
Do not enter liability in ColUlDJ]S 5 or 7 for any pexson who will receive entire pension during this ye:u. Enter this pension
amount on Schedule n. Section 1. LiD: h.
For installment liability. enter amount which will be payable after end of this year in both column 5 and column 7.
If intereSt is to be paid on unpaid pensions. add imerest for 1 year in column 7.
A copy of these schedules must be p~tM to the City Council before August 1 each year.
Page 1
SCHEDULE I - ADOmONAL MEMBERS
I. I 2 3 4 5 6 7
1996 1997
P.o. To End of This Year To End of Next Year
Name Age Pnrr n~rl'! Years Active Accn1ed Years Active Accrued
Month I Year Service Liabilitv Service Liabilitv
Re2U1ar Pensions
1. (' r.r,'<:,. 3 0 ~ ~s.c J"\ 71 ~C) 7 IO~1-1..f 8 1'2..~'72..
2. ""DOU<:' l-+~R.TM A,J T <=10 I" I Gt020 -, /0 S?..~
3. VI <:,~r< Or' ,,< '.(!J tlt~!~ ., QD I"... QO"ZO I ..., I I Q82.tf
4. "T~~ -'Bu <:< ~ ';1 -~ I i~,",~ ?1 '9()ZtJ
s. ~rA'":> F6.. +C^ \ Y\ ~! I q I ~ "~4-p. I , qo~o
6. RtCK S~\Y\~ '.1< ID' '4'.2 1./ I 5120 I ~ I ,346
7. &"J-,e.,. AN't:e~~ oY\ 5: q~ LJ 57U -~ ,3 f..; S I
8. ~ue' .T~y\'~p'r\ _~L q~ '" ~'?rJ S I -, '3 l.f~
9._~~U ~.b ~O~ ~k ~~ ~ ~2o ~ ,3 '-/S
10. Ku'f1 I t J\", ta'/e'^ 5 I. <i~ Lf J:572a ~ I 7"':?!!B
11. F=', l'} V\ G\ K~~t 51 '13 .u 572D <' I ,~4-~ I
12. ~+~v,~e f"\ J ~ r I ~ '1:.4 I ~ ~II So ~ I ~i '.f) I
13. .JG\Mt:S KI\V\e. I ":? ! I C;y I 3 I Ln ~O I !J I : 5'7 Zo ,
14. t:e", ~ \'<\ s+ e \,(" ~ !I Cf~ 3 I t.f t ~c I !.J I 5120 I
15. "'~'N\ "Boe'tV\ ~'f 10 ":1 c:.;~ '2. I 27Z~ I :3 I 41~D
16. ..J ~e -Z I ~~ ~ I S~I <151 ?- I 27Z~ I ~ I 4/~o I
17.~V\\A ~ P '/"\ ,^ ti? 'r'. I I 5 II ~~I Z- I ~7Zo I 3> I U( 80 I
I
18. Rua,^ 'Dt,~ e't'\.A J:; 11'1<;" I '2 I 2i~ I ~ I 41 ~o I
119. "Deu a ~ p_\ <~'^' .::r 1'1S- -2 I "2i2~1 3 i41 ;AD I
20. ' I I I
2l. I II I I I I
22. l I I I
2:3. I I I I
24. I .\ I I I I
25. I I II I I
Subtotal of Re2Ular nension liabilitv I ( 0 ~ 0 f.::; 0 Wl1lNlI\lIMll I 3l.f SO '61
Aile I Separation I Accrocd Accrued
Name Emrv Date Date Liabilitv Liabilitv
Deferred PeDsion.s I I
1. .JO~ N\ '^~, \< Q"" \2 iPJ I , 'f ~ 26880 2.B 2J.. 4
2-=r'M 0' I..(e&e. ~ iC1 ~ qu,I ll~q2D I "~I L.t, ~
J. I I
4. I I
Subtotal of Deferred Pensions I S~Soo 59,-t.fol
I
Unoaid 1DstaJJmaaa
1.
2.
Subtotal oC Uanaid iDstaDmena 0 'C
Early Vested Pmsioas
1. lAVe t;y~~\A\ N :3 Ie::; ~ qo J; ZD I J 3g '-7
2. ~~erlt P~~e""s ~V\ I 1'1 -,- ~O Z~3o~ ~7'A
3. (1_11"';- ~_ ~'M ,A.+- ~. ~2. I,., ~" '4S~ 1~~7
4...:rct'\~ C\€'r^e1'\~ . < 'S). "3 q4 I 1"7 OCr 3 li<1LlA
Subtotal oC EarlT Vested Pensions 1-3 , ~ ~ 7 b ~20
Page 2
Schedule IT
Section 1
DetcmUnation of Projected Net AsseIS for the ye:u ending December 31, 1996
Special Fund Assets at December 31, 1995
(See Ending Assets in Reporting Form - 1995)
1 $ b 32 lk~
Projected Income to December 31, 1996
a. Minnesota State Aid
(Use 1995 amount, exclude supplemental)
b. Municipal (independent fire) Contributions
c. Donations (List )
d. Invesanent Income
e. Realized Gains (losses)
f. Unrealized Gains (losses)
g. Other income (Includes Supplemental)
(List - )
Total
$ ~~ 3t13
$ LJ I I \
$ 0
$"3'S~1
$ 0
$ 0
$ 1000
Projected Assets plus Income December 31, 1996 (line 1 + line 2)
Projected Disbursements through end of year
h. Pensions
i. Other bene filS
j. Administrative
Total
2 $ ~ '20 ~.;-
3 S II 'i 70y
$
$
$
o
o
'4~_
4 $-1::lL
5 $ II Lf 5100
Projected Assets at end of ye:u (line 3 minus line 4)
Section 2
Determination of Projected Surplus (Defidt) as of December 31, 1996
Surplus (deficit) (Subaact line 7 from line 6)
6$ '71 'f~bO
7$ 1 ZD Q70
8$ ( 6-/Jtr':J
Projected Assets (line 5)
Accrued Liability (line B, Schedule 1)
· Go to Section 3 if Surplus
· Go to Section 4 if IkficiJ
Section 3
Determination of Munidpal Contribution (if Surplus)
Normal Cost (Line C, Schedule 1)
Calculated Administrative Expense (1995 Reporting Form Adm. Exp. $
Less:
k. Minnesota State Aid S 0
1. S % of line S S 0
m. 10% of line 8 S 0
Total SubaactiODS
9$
D
x 1.035) 10 $
()
Municipal Contribution (line 9, plus 10 iDiDus 11)
If S 1. 00 or greater, cettify to municipality before August 1, 1996,
If uegative number, DO conaibution is clue.
,::{GQ".TOSEcnON5' .:.
12 $
o
o
11 S
Page 3
~eation 4
D",1'1tIinlJrion of Municipal ColllribUlion (if Dqfcil)
.. imorri1.alion of D,ficiu.
Year Incurred
Column 1
Column 2 Column 3
Rain:d iD Prio AmoUDt Left to
Y CU3 Retire
19 ~ '-4
19
19
19
17 '1~
~L.f n
New add'J Oeficil (1996)
Totals
Step 1# 1 If line P i3 positive. enter line p in columns 1 and 3 of New additional Deficit (96) line.
(This is your New additional DefICit for 1996.)
Step 1# 2 If line P is negative. reduce columns 2 and 3 according to Deficit Reduction in the instruCtions. page 6.
n. ~'~I D (section 2. line 8
c:ar.er as . paUIivc IIIIIIIbcr)
.. SUbtoca1 .- o. [,'-1 to (Column 3 Subtocal)
p. D (n. minus 0.)
Subtotal Lines 13 + 14+ 15
13 $ Z3S4
14 s 72 4 I 0
15 $ 3~ (:,
16$ 7, 15~
Amortization of Deficit (Total from Column 1 13 813& x .10)
Total from line C. Schedule I. Normal Cost
c.uculated Administrative Expense (1995 Reporting Form Adm. a"tp. ~ x 1.035)
Less:
q. Minnesota State Aid
r. 5% of line 5
$ &.f~~43
$ 357rzS
Total Subtr3Ctions (subtotal of Lines q and r)
Municipal Contribution (line 16 minus line 17)
(If 0 or negative. rher~ i.s no municipal conzriburion)
17$ 81071
18 S ! S~ , 6)
You must c:ertif'V to municipalitv before Au2Ust 1. 1996. ~en if'DO contribution is due.
Section 5
Calczdafion 01 Av'rag~ special fund income per member
A B
State Municipal
Aid S
last year 1995 ~ 3tf3 1'2.1
2 years ago 1994 &.tJSD IbQS2.
3"84" 'D~;S'"
D
Active
Members
A+B+C
D
E
F.
G.
OFFICERiS CER'".i"'IFICA nON
(Form must be provicicd to municipal clerk on or before August I, 1996)
We, tbc officers of the Ere, 0 .... L,.., ~ e. Fircfilbrers Rc:lief A.ssoc:iation. Slate tbat the: acc:ompanyiDg
VOhMtlla baVe: becD prepared in ac:cordanc:c widl the provisioas of MimI. Stat. I 69.n2, subel. 4. The average amount
of available 1iDaDciD& per member of the special ftmd for the past three years i$ S L3..S5-. Further, benefit levels
bave bc:cD c:scablisbcd in accordance with the: averale: amount of available fiDanciDI. as is required by MiDDCSOtl law.
We cc:nify that tbc tiDaDcia1 requiremc:mS
municipal comribution is S 0
,L~
Si~ of S
of the relief association special ftmd fot 1997 purposes of n:quired
?-z.s~~
Date
? - ;. S- - ~(,
Date
J'Z.dq~
Date
CLERK'S CERTIFICATION
(FOR MUNICIPAL FIRE DEPARTMENTS ONLY)
I am the cleri: of . I bave received the complc:u:d Office of State Auditot Sc:hcdule I & n from
Relief Associa1ion on . 1996. I bave reviewed Section 2. line: 8. 12 and 18
of Sc:hcdule n. If line 12 or 18 rc:t1cas a n:quired municipal coDlribution. I certify tbat I will advise the governing
municipal body at it's next rc:gu1ariy scbc:duled meeting. If the Certification of the Officers discloses tbal the By-laws bave
been amended or benefits have incn:ascd and line 12 or 18 reftcc:t a required municipal comribution, I c:crtify tbat the
JOVeminc municipal board passed a resolution approving of the increase or cbanlc in by-laws. I bave aa.acbcd the Board
resolution, if requircc1.
DalC 1 ,)..(., 1 ~ '-,..
4ct- 7 -4 2.03 0
Business Phone
WARNING: 17Us ~ mall N faIJ'J ct1IfIPlIIM. t:Dfi/I6d 111 1M rdUf ~ qjJ'Iun. cmifl.6d by 1M 1ftIIIIiI:ipGl cUrt. an4 jflMI. wiIh 1M 0flIc1
D{ SIDu ~ rqJOffi1t, lome as ,.",,;r.t 111 lIi1u&. SlGL I 69. ill. sUIt. 1. FGil.Iuw lD JflI this dDcrI1rwftI. ~ (N 1IDI II rrrIIIIit::ipdI ctJtlll"iblui,c
is .. will rauJl ill iIwIi,ilibilJq D{ SIIlU jfu aid. as reqWntt 111 Mi1rnG<<4 SIIlU lIIw.
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