FSTFSR 03-31-1997 ,--Q A,(
ky of � ~ ' . MEMORANDUM
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River TO: Elk River Firefighters
FROM: Mayor Duitsman
DATE: March 31, 1997
SUBJECT: Compensation Plan
The City Council is interested in arriving at a-compensation package for
firefighters.
A Task Force worked on this issue, but nothing came of the city's proposal.
The city is here tonight to explain the reasons for its position, as well as
presenting a compensation package, and to answer questions. This is a total,
complete package, otherwise we will continue with the present system.
First, the city is interested in changing the firefighters retirement plan from
IIa defined benefit to a defined contributian plan. Under the current plan, the
Council is in a difficult position as not only does this per year benefit apply to
all past years, but it locks in the benefit for all future years. If this defined
benefit plan stays in place, the Council will be looking for a 10 percent safety
factor to the detriment of the firefighters retiring. A change to the defined
contribution plan removes any long term city financial exposure for the plan
while also allowing the firefighters the ability to control their own retirement
plan. It makes more sense to us for each firefighter to receive the earnings as
they are earned on their own'account. To obtain this change the:Council is
willing to:
1. Pay more.
2. Review the pay package for firefighters each year along with
other city employees. Each year in the past, other city
employees have received a raise.
3. Start their balances 1/1/97 by allocating assets based on a
percentage of each firefighter's liability (according to state
statutes) to the total liability.
4. Begin paying $22.25 per hour for emergency calls. $8.00 in cash
(with adjustment for pay structure difference) plus a payment
into the pension fund of$22.25 per hour less the $8.00 or $14.25
IIIx total emergency hours per year less the amount received for 2
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
• percent fire insurance rebate. The amounts would be allocated
as follows:
Fire Premium Amount Equally among firefighters
Contribution by City 30 percent equally
70 percent based on emergency
hours per firefighter
While we realize that the firefighters wish to defer their
compensation for retirement, the city would like to allocate its
payment to the firefighters that are providing the service to the
community.
5. The city would pay double time for the following holidays:
New Years Day, Memorial Day, Fourth of July, Labor
Day, Thanksgiving Day, Christmas Eve and Christmas
Day.
6. Pay Structure
• Base $8.00 per hour
• Probationary $7.00 per hour
• Apparatus Officer $9.00 per hour
• Captain $9.00 per hour
• Assistant Chief $10.00 per hour
7. Training Pay
Additional pay for formal training in excess of
probationary requirements.
Additional $0.50/hr. for first 60 hours of additional
training.
Additional $0.25 for each additional 75 hours of training.
8. Death Benefit
Current firefighters would never receive a death benefit
lower than the amount the firefighter would have
received under the defined benefit plan.
\\elkriver\sys\shrdoc\firepres.doc
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JANUARY 1, 1997, PROPOSED DEFINED CONTRIBUTION
BEGINNING BALANCES
Years of Jan. 1, 1997
•
Hire Service Proposed Defined
Date end 1996 Contribution Balance
Morrell, L 7/1/65 31 78,717
Dreissig, M 6/1/66 31 78,717
Nystrom, J 12/1/67 29 73,639
McCartney, B 6/1/68 29 73,639
Kreuser, J 1/1/73 24 60,942
Dreissig, R 9/1/76 20 50,785
Morrell, R 4/1/78 19 46,824
Dittbenner, S 9/1/78 18 43,117
Dehn, J 11/1/78 18 43,117
Barsody, R 5/1/80 17 39,613
Trunnel, M 11/1/80 16 36,261
Sykes, R 3/1/81 16 36,261
Follmer, J 10/1/81 15 33,112
Kreuser, D 5/1/82 15 33,112
Anderson, C 8/1/83 13 27,170
Plude, D 8/1/83 13 27,170
Anderson, D 1/1/85 12 24,428
Pearson, B 1/1/85 12 24,428
Anderson, G 6/1/88 9 16,911
Collins, P 6/1/88 9 16,911
Smith, J 6/1/88 9 16,911
• Crepeau, M
9/1/89 7 12,493
Skogstad, C
9/1/89 7 12,493
Smith, D 9/1/89 7 12,493
Greene, S 6/4/92 4 6,602
Olson, S 6/4/92 4 6,602
Elliot, T 6/4/92 4 6,602
Collins, J 4/1/95 2 3,149
Thorson, K 4/1/95 2 3,149
Kleist, K 8/1/96 0 0
Johnson, D 7/1/96 0 0
Olsen, S 2/25/97 0 0
Richardson, M 2/25/97 0 0
Lee-Johnson,T 2/25/97 0 0
Total Active 945,368
Deferred
Oscarson, C 51,200
Lefebvre, P 14,784
Borntrager 6,204
Total Deferred 72,188
TOTAL DISTRIBUTION* 1,017,556
*This includes City Contribution of $17,500 for 1996.
•
FIRERELF.XLS