HomeMy WebLinkAbout8B - Firefighters Pensions
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
BACKGROUND:
DISCUSSION:
ALTERNATIVES:
88 '\\ \
FRANK BOYLES, CITY MANAGER \.
CONSIDER APPROVAL OF FIRE F R REQUEST FOR
IMPROVED PENSION BENEFITS
NOVEMBER 6, 1995
Attached is a memorandum from the Prior Lake Volunteer Fire
Department which requests that pension benefits be improved as of
January 1, 1996 from $1,900 to $2,000 per year of service. This agenda
item provides information with regard to this request.
Firefighters have requested a $100 per month increase in pension benefit
amount effective January 1, 1996 from $1,900 to $2,000 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 $2,000 for
each year of active service on the department.
The current $1,900 per month pension benefit amount has been in effect
for the past two years. The City's 1995 annual contribution to support
the pension fund is $12,735. This is over and above the annual
homeowners insurance reimbursement the City receives which is
dedicated by law for pension contribution purposes.
The new pension benefit amount of $2,000 per year of service would
actually reduce the City's contribution to $4, Ill.
Attached for Council information is a copy of a Fire Relief Pension
Survey prepared by Mike Lehrman, a Prior Lake Firefighter. As you can
see, Prior Lake's pension amount compares favorably with other
communities.
1. Adopt a motion and second approving an amendment in the Prior
Lake Volunteer Firefighter Bylaws which provide for a $2,000 per year
of service credit for pension benefit purposes, effective January 1, 1996.
2. Take no action at this time and direct the staff to provide additional
information.
AGNll06B.DOC
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
FINANCIAL IMPACT: The City's 1996 contribution of $4,111 IS incorporated in the 1996
Proposed Budget.
RECOMMENDA liONS: Alternative I. The pension amount requested is reasonable when
compared to other departments. The ongoing obligation from the City to
fund this pension amount is well within parameters previously set by the
City Council. From the City's perspective it is important that the
pension remain competitive in order that the City can continue to recruit
and retain qualified volunteer firefighters.
ACTION REQUIRED: Motion and a second to authorize a revision in Article 8, Section 2 of the
Prior Lake Fire Relief Association Bylaws increasing pension benefits
from $1,900 per year of service to $2,000 per year of service effective
January 1, 1996.
Attachments
AGNll06B.DOC
CITY
FIRE RELIEF PENSION SURVEY
October 26, 1995
MONTHLY
NUMBER OF PENSION
MEMBERS CREDIT
20 YEAR
LUMP SUM
Lakeville
N orthfield
Stillwater
Shakopee
Wilmer
Savage
Owatonna
Prior Lake
New Prague
LeSuer
Waconia
New Market
Young America
FIRERELF.DOC
69 3375/per yr of service
28 3200/per yr. of service
36 2600/per yr. of service
33 2263/per yr. of service
47 2200/per yr. of service
38 2150/per yr. of service
36 2025/per yr of service
40 2000/per yr. of service
30 1225/per yr of service
24 1200/per yr of service
34 850/per yr. of service
20 550/per yr. of service
29 500/per yr. of service
$67,500
$64,000
$52,000
$45,260
$44,000
$43,000
$40,500
$40,000
$24,500
$24,000
$17,000
$11,000
$10,000
-,
TO:
PRIOR LAKE CITY COUNCIL
FROM:
PRIOR LAKE VOLUNTEER FIRE DEPARTMENT
DATE:
SEPTEMBER l~ 1995
At this time we ask the city cOlmcil to approve an increase in pension benefits as of January 1 ~ 1996 from
$1900.00 to $2000.00 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 tor 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$2000.00 for each year that he served as an active
member of said Fire Department.
Thank you.
Fire Chief: AI Borchardt
President, Doug Harhnan
Secretary~ Dave Chromy
Treasurer~ Mike Lyrenrnann
7
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, 1996 from $1900.00 to $2000.00 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
hislher resignation from said department, and who has reached the age of 50 years or more and who ha..c;;
been a member of the association for at least 10 years, the sum of $2000.00 for each year that he/she
served as an active member of said fire department.
Recording Secretary
Dave Chromy
! .