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<br /> <br />July 12, 2006 <br /> <br />To: 1:1ayor and City Council <br /> <br />From: Rob Dreissig, President of tlle Elk Ri,Ter Fire Departtnent (ERFD) Relief ..L"\ssociation <br /> <br /> <br />Backgound of the Association <br /> <br />Tile ERFD Relief J\ssociation is made up of dle acti\Te paid-on-calllnelnbers of tlle ERFD. <br />Tile purpose of tIle association is to pro\ride retirement, disability and deatll benefits to tlle <br />melnbers or beneficiaries of lnelnbers of tile departtnent. <br /> <br />TIle State of ivlinnesota Ilas pro\Tided tlle major sllare of funding for the association dltough <br />distribution of tlle lnoney collected from a gross earnings tax on fue insurance premiums <br />sold in the state. TIle funds are allocated to tlle departlnents based on tlle population and <br />property \Talues in tile area served by tllat department. TIle Relief fund I1as benefited frorn <br />the grO\\;.th in the Elk Ri,Ter area as e'\lidence by a contribution of $136,429 in 2005. <br /> <br />Tile City has also SllO\Vn continued support of tlle Relief ..L~ssociation as exampled by the <br />2005 cont11.bution of $28,100, resulting from an annual increase rate of tluee percent and <br />recognition of tlle grO"ltll in tlle nmTIber of fuefigIlters. <br /> <br />TIle ERFD Relief Association is directed by si~ t1~stees elected by lnelnbers of tile ERFD, <br />tlle fire chief, tlle city Finance Director, and tlle IVlayor. 1.\ lninimum of four meetings are <br />Ileld eacIl year to ov'ersee the lnanagement of tlle ..L\ssociation's funds. <br /> <br />One cIlange implemented by tlle Relief .L\ssociation Board tllls year Ilas been tlle creation of <br />an In'vestment Cormnittee. TIle purpose of tlle In,Testment COlllinittee is to take a lTIOre <br />acti,Te role in assuring the correct balance of risk and return tllrougll asset allocation. One <br />lnember of tlle Inv'estment COlnmittee is an outside lllvesttnent professional 'VilO can <br />pro'vide us \Vitll non-bias ad\Tice on tlle State Board of In\Testtnent funds. <br /> <br />Type of Pension Plan <br /> <br />TIle lnelnbers of tile Relief ..L\ssociation are cO\Tered by a defmed benefit plan. TIle yearly <br />benefit le\Tel of tlle plan is deterlnined by tlle nUlnber of melnbers, tlleir lengtll of service, <br />and tlle 'value of tlle relief fund. The actuarial studies are perforlued on an annual basis and <br />presented to members of tlle ..L\ssociation and tlle City Council for tlleir appro'val, and tllen <br />sublnitted to tlle State Auditor. <br /> <br />Investments <br /> <br />TIle Relief .L\ssociation's state-aid allocation and city's contribution are inv"ested in tlle <br />J\ssociation's Special Fund. Tile Relief .L~ssociation l1as dev"eIoped an in,Test1nent policy <br />pro\Tiding maximrun return consistent \Vitll State Statutes. \\1e lla\Te lno\Ted o'vet 950/0 of tlle <br />Special Fund to in,Testments lnanaged by tlle State Board of In'Testment. <br />