5.1. SR 07-22-1996 - Laserfiche WebLink

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consider the potential of a shortfall when approving the benefit level. The defined benefit plan may require an annual City contribution depending upon the assets available and the liability necessary to fund the benefit level approved by the City. The defined contribution plan does not require a City contribution; however, the City could contribute any amount it determined appropriate. The Task Force has been unable to reach a consensus on a total compensation package which is agreeable to both the firefighters and the City; the Task Force has not met since last September. For sometime now, Mayor Duitsman and I, as City representatives on the Task Force, have requested that the Task Force meet to again try agree on a package to be presented to both parties. However, no meeting has been scheduled. One of the main issues of the fire department Task Force representatives is that if a change to defined contribution is approved, the City will not make future contributions. I have explained to the Task Force that even though this Council can't bind future Councils to making a contribution, the Relief Association should rely on the City's history of contributions when trying to predict future contributions. I do not believe it is the City's intent to in any way decrease the compensation received by the firefighters; in fact, one of the goals of the Task Force was to insure that the firefighters are indeed receiving fair compensation. Attachments Attached are numerous items related to the Relief Association's request for an increase in the benefit level. The Relief Association's consultant, Gus Welter prepared a five year study of the proposed liability and City contributions required under various scenarios. No actuarial study has been completed based on these scenarios and a thorough review has not been completed by the City; it is probably in the City's best interest to have an independent actuarial study completed to support the information presented by Mr. Welter. Copies of some of the reports prepared by Mr. Welter are attached. Also attached is a letter from Relief Association president Jim Nystrom outlining the Relief Association's request. The letter also includes a table showing the minimum municipal contributions for the next five years based on the assumptions as outlined below the table. The Relief Association is requesting an increase in benefits to $2,500 per year of service and release of the 1995 and 1996 City contributions. As the