5.2. SR 07-12-1999 - Laserfiche WebLink

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JUL-08-1999 THU 10:57 AM CRETEX PURCHASING FAX NO, 6122418210 p, 02/12 . TO: Mayor and City Council FROM: Jim Nystrom, President of the Elk River Fire Relief Association BackWQ..lll1d oftlte A.~.fociati.fl!J. The ERFD Relief Association is madc 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 memhers or beneticiaries of members of the Association. The State of Minnesota provides the basic fllnding for the Association through distribution of money collected from a gross earnings tax on fire insurance premiums sold in the state. The funds arc alloeatcd 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 11re chicf, the city Finance Director, and the Mayor. A minimum of four meetings are held each year to oversee the management oft11,:: Association's funds. . Tvpe of Pension f/.Jm. The members ofthc Relief Associalion arc covered by a defincd bencfit plan.. Our plan is the sallle type as the Public Employees' Retirement Association (PERA) or thc Teachers' Retirement Association (TRA), The yearly benefit level of the plan is determined by the number of members and their length of service, and the value of the relief fund. The actuarial studies arc per/armed on an annual b,lsis and presented to members of the Association and the City Council for theIr approval, and submittcd to the State Auditor. !:Jl.mpcm.\'ation Ta.~k Foret. Several years ago, a task force, made up of the Mayor at that time, the City's Financial Director, olong with four 111'e fighters, devdopcd a long term compensation plan for the fire department. Thc plan included an hourly wage rate for paid on call firefighters based on education and responsibility. The plan also included a scheduled yearly contribution to the Relief Association. Prior to the cOll1p~nsation agreement, the City contributed to the Association on a year-to-year rcq uest. .