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,--Q A,( <br /> ky of � ~ ' . MEMORANDUM <br /> . <br /> lk ,. <br /> River TO: Elk River Firefighters <br /> FROM: Mayor Duitsman <br /> DATE: March 31, 1997 <br /> SUBJECT: Compensation Plan <br /> The City Council is interested in arriving at a-compensation package for <br /> firefighters. <br /> A Task Force worked on this issue, but nothing came of the city's proposal. <br /> The city is here tonight to explain the reasons for its position, as well as <br /> presenting a compensation package, and to answer questions. This is a total, <br /> complete package, otherwise we will continue with the present system. <br /> First, the city is interested in changing the firefighters retirement plan from <br /> IIa defined benefit to a defined contributian plan. Under the current plan, the <br /> Council is in a difficult position as not only does this per year benefit apply to <br /> all past years, but it locks in the benefit for all future years. If this defined <br /> benefit plan stays in place, the Council will be looking for a 10 percent safety <br /> factor to the detriment of the firefighters retiring. A change to the defined <br /> contribution plan removes any long term city financial exposure for the plan <br /> while also allowing the firefighters the ability to control their own retirement <br /> plan. It makes more sense to us for each firefighter to receive the earnings as <br /> they are earned on their own'account. To obtain this change the:Council is <br /> willing to: <br /> 1. Pay more. <br /> 2. Review the pay package for firefighters each year along with <br /> other city employees. Each year in the past, other city <br /> employees have received a raise. <br /> 3. Start their balances 1/1/97 by allocating assets based on a <br /> percentage of each firefighter's liability (according to state <br /> statutes) to the total liability. <br /> 4. Begin paying $22.25 per hour for emergency calls. $8.00 in cash <br /> (with adjustment for pay structure difference) plus a payment <br /> into the pension fund of$22.25 per hour less the $8.00 or $14.25 <br /> IIIx total emergency hours per year less the amount received for 2 <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />