4.1. SR 07-14-1997 - Laserfiche WebLink

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City of iver TO: FROM: MEMORANDUM Item #4.1. Mayor & City Council Lori Johnson, Asst. City Administrator/ Finance Director DATE: SUBJECT: July 14, 1997 Request for Fire Relief Pension Benefit Increase Introduction The Fire Relief Association is prepared to make a presentation to the City Council on Monday regarding an increase in the 1998 per year of service pension benefit. As you may recall, the Relief Association is required to notify the City Council of its minimum required municipal contribution prior to August 1. Any increase in the per year pension must also be approved by the Council unless the fund would be 110 percent funded based on the increase. This memo will not address all of the technical Fire Relief information that has been presented in detail in memo form in previous years; if you have questions of that nature, please contact me prior to the meeting. Background The current benefit level is $2,500 per year of service, and the Relief Association is requesting that it be increased to $2,674 per year of service. Attached for your review is a packet of information from Randy Sykes in which the Relief Association provides support for the requested increase to $2,674. As you can see from Schedules I and II based on $2,674, the requesed increase does not require a city contribution. Even though a city contribution has not been required in the past (with the exception of one year which had a required contribution of approximately $680), the city has annually contributed to the Relief Association. Also included as background from the Relief Association is a memo, schedules for a $2,900 per year benefit, a five year projection spreadsheet based on an increase to $2,674 in 1998, and a page from the 1996 Fire Relief Association audit. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425