FSTFSR 01-10-1995 - Laserfiche WebLink

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MEMORANDUM TO: Pat Klaers, City Administrator FROM: Lori Johnson,Finance Director DATE: January 3, 1995 SUBJECT: Elk River Fire Department Compensation Task Force As requested, here is an update on the progress of the Fire Department Compensation Task Force. Our last formal meeting was held on Wednesday, October 12, 1994. At that time, the Task Force agreed that the next step should be to have informal small group discussions with the Fire Department membership in order to present to them the facts on both the defined benefit and defined contribution plans. Steve Eide met with the Fire Department membership on November 15 and November 17. There were approximately fifteen firefighters present for each of those meetings. Steve Eide has worked with several fire departments in their conversion from defined benefit to defined contribution. He presented information to the firefighters on each of the plans. In addition,he answered questions from the firefighters and showed examples of the estimated account balances based on defined benefit and defined contribution plans. One of the main concerns of the firefighters present at the meetings was whether or not they would lose anything in the conversion. I informed them that their balances would not decrease due to the conversion, and, in fact, some of their values would increase based on the present value calculations as previously prepared by the Wyatt Company. Both of the meetings were very productive as they gave members an opportunity to have questions answered and concerns addressed. The Task Force did not meet in December due to the schedules of some of the Task Force members. The next meeting will be scheduled for some time in January. At this meeting the Task Force will review the November meetings and discuss the steps necessary in order to bring these issues up for approval by both the Fire Department membership and the City Council so that the work of the Task Force can be concluded. admin:pdkfdtf •