8.1 SR 07-15-2024 - Laserfiche WebLink

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The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 8.1 Meeting Date July 15, 2024 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description 2025 Benefit Level for Elk River Fire Relief Association Reviewed by Lori Stich Joe Stremcha Cal Portner Tina Allard Action Requested Approve, by motion, an increase for the Elk River Fire Relief Association (ERFRA) benefit level to $9,735 per year of service effective January 1, 2025. Background/Discussion Before August 1 of each year, the ERFRA is required to certify to the city the required municipal contribution for the following year. A request for an increase in the Per Year of Service Pension amount effective January 1 for the next year must also be acted on by the Council before August 1. ERFRA operates under a defined benefit plan. The pension liability is calculated by the number of active service years multiplied by a set benefit level. Members who retire with less than 20 years of service are entitled to a reduced service pension if they have reached the age of 50 years and have completed at least five years of active membership. On June 12, the ERFRA recommended increasing the benefit level to $9,735 from the current benefit level of $8,850 effective since January 1, 2022, an increase of $885 or 10%. The new benefit level of $9,735 is not expected to require a city contribution for 2025. Starting Rate Amount of Increase New Rate Effective Date $5,091 $269 $5,360 1/1/2015 $5,360 $150 $5,510 1/1/2016 $5,510 $775 $6,285 1/1/2018 $6,285 $835 $7,120 1/1/2019 $7,120 $1,730 $8,850 1/1/2022 $8,850 $885 $9,735 1/1/2025 Page 368 of 389