HomeMy WebLinkAbout20070416 - VIII-C-3HASTINGS FIRE DEPARTMENT
RELIEF ASSOCIATION
Alan E. Storlie, President
115 West 5°i Street
Hastings, MN 55033-1815
Business Office (651) 480-6150
Fax (651) 480-6170
TO: Mayor Hicks
Council Members
FROM: James C. Gelhaz -Treasurer, Relief Association
SUBJECT: Firefighter Relief Association Pension Increase
DATE: Apri16, 2007
The Firefighter Relief Association is requesting City Council action to approve a pension
increase to $4,500.00. Our last adjustment in benefits was in the yeaz 2006. However, the last
adjustment prior to 2006 was in the year 2000.
Currently, our annual lump sum amount is $4,000.00 for those serving 20 years or more.
Statutory formulas and our funding level would support this increase. To remain conservative
and not offset these calculation in one calendaz yeaz, we have chosen a benefit level lower than
what MN State Statutes would allow. In previous years, the Board of Trustees has used
maintaining a 10% surplus in our investments as the threshold for seeking a benefit increase.
Currently our surplus is approximately I8%. Approving this increase would reduce that surplus
to approximately 11.5%, still well above that 10% threshold.
In a review of other similar Relief Associations in our area, I am providing the following data for
you to consider. The data below is provided by the Office of the State Auditor for the yeaz
ending December 31, 2005, and is the most current data available.
• Woodbury - $5,600.00 per year of service
• Apple Valley - $4,900.00 per year of service
• Rosemount - $5,300.00 per yeaz of service
• Lakeville - $5,500.00 per year of service
• Oakdale - $3,850.00 per yeaz of service
• Inver Grove Heights - $3,500.00 per yeaz of service
• Northfield - $6,600.00 per yeaz of service
Although I cannot guarantee that this action will not require Municipal financial support in the
future, I can assure you that nothing obvious would indicate this need.
If you have any questions, I will be present at the April 16, 2007 Council Meeting or you may
reach me at (651) 480-6150.
V111-C-3