6.3. SR 07-10-2000 - Laserfiche WebLink

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TO: Mayor and City Council FROM: Robert Dreissig, President of the Elk River Fire Relief Association Background o['the Association The ERFD Relief Association is made up of the active paid-on-call members of the ERFD. The purpose of the association is to provide retirement, disability and death benefits to the members or beneficiary of members of the association. The State of Minnesota provides the basic funding for the association through distribution of money collected from a gross earnings tax on fire insurance premiums sold in the state. The funds are allocated to all the departments throughout the State, based on the population and property values in the area served by that department. The ERFD Relief Association is directed by six trustees elected by members of the ERFD, the Fire Chief, the City Finance Director and the Mayor. A minimum of four meeting are held each year to oversee the management of the Association's funds. Type of Pension Plan The members of the Relief Association are covered by a defined benefit plan. Our plan is the same type as the Public Employee' Retirement Association (PERA) or the teacher' Retirement Association (TRA). The number of members and their length of service and the value of the relief fund determine the yearly benefit level of the plan. The actuarial studies are pertbrmed on an annual basis and presented to the members of the Association and the City Council for their approval, and submitted to the State Auditor. Compensation Task Force Several years ago, a task force, made up of the Mayor at that time, the City Financial Director, along with four fire fighters, developed a long-term compensation plan for the fire department. The plan included an hourly wage rate for paid-on-call fire fighters based on education and responsibility. The plan also included a scheduled yearly contribution to The Relief Association. Prior to the compensation agreement, the City contributed to the Association on a year-to year request.