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<br /> <br />ITEM 7.9. <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL ~ <br />LORI JOHNSON, FINANCE DIRECTOR~ <br /> <br />TO: <br /> <br />SUBJECT: <br /> <br />MARCH 10, 1993 <br /> <br />JOINT CITY COUNCIL/FIRE RELIEF <br />MEETING <br /> <br />DATE: <br /> <br />At the Fir <br />the Anoka <br />contributi <br />currently <br />means that <br />Associatio <br />investments. <br /> <br /> <br />Relief Trustee meeting on March 9, Bruce West from <br />Fire Department was present to discuss the defined <br />n method of retirement benefits. The City is <br />operating under the defined benefit method which <br />he City is liable for any shortfall the Relief <br />may have due to a decrease in the value of its <br /> <br />. <br /> <br />Jim Nystro , President of the Fire Relief Association, has <br />invited B ce West back to meet with the Fire Department <br />membership t its monthly meeting on March 25, at 7:00 p.m. at <br />the Fire Station. It was suggested that this would be a good <br />opportunit for the City Council to get some background <br />informatio on the defined contribution method of paYment. The <br />City has su gested that the Fire Relief Association consider <br />changing t the defined contribution method in the past. As I <br />stated earlier, this method of benefit paYment relieves the <br />City of i s liability for any shortfall that the Relief <br />Associatio may incur due to a decrease in the value of its <br />investment portfolio. This method also allows the Relief <br />Associatio to increase benefits paid to firefighters without <br />seeking a roval from the City Council. The Relief Association <br />in the past has expressed concerns over the fact that the <br />firefighte s with more years of service do not receive their <br />proportiona e share of the increase in the Relief Associations <br />assets. hanging to the defined contribution method would <br />eliminate t is concern. <br /> <br />If all Cou cilmembers plan to attend the informational meeting <br />with the Fire Department on March 25, a special City Council <br />meeting ne s to be called. If the Council chooses to delegate <br />two representatives to attend the meeting, a special meeting <br />does not n d to be called. This is an informational meeting <br />only and no action is going to be taken. It is a rather <br />lengthy pr cess to convert from defined benefit to defined <br />contributi n, so this topic will come up for future discussion <br />after the lief Association determines whether or not it wants <br />to make his change. Prior to the March 25 Fire Department <br />meeting, I ill provide additional background information to <br />the Council embers p1.anning to attend. <br /> <br />. <br /> <br />720 Dodg Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 <br />