8.0. SR 03-15-1993
ITEM 7.9.
FROM:
MAYOR & CITY COUNCIL ~
LORI JOHNSON, FINANCE DIRECTOR~
TO:
SUBJECT:
MARCH 10, 1993
JOINT CITY COUNCIL/FIRE RELIEF
MEETING
DATE:
At the Fir
the Anoka
contributi
currently
means that
Associatio
investments.
Relief Trustee meeting on March 9, Bruce West from
Fire Department was present to discuss the defined
n method of retirement benefits. The City is
operating under the defined benefit method which
he City is liable for any shortfall the Relief
may have due to a decrease in the value of its
.
Jim Nystro , President of the Fire Relief Association, has
invited B ce West back to meet with the Fire Department
membership t its monthly meeting on March 25, at 7:00 p.m. at
the Fire Station. It was suggested that this would be a good
opportunit for the City Council to get some background
informatio on the defined contribution method of paYment. The
City has su gested that the Fire Relief Association consider
changing t the defined contribution method in the past. As I
stated earlier, this method of benefit paYment relieves the
City of i s liability for any shortfall that the Relief
Associatio may incur due to a decrease in the value of its
investment portfolio. This method also allows the Relief
Associatio to increase benefits paid to firefighters without
seeking a roval from the City Council. The Relief Association
in the past has expressed concerns over the fact that the
firefighte s with more years of service do not receive their
proportiona e share of the increase in the Relief Associations
assets. hanging to the defined contribution method would
eliminate t is concern.
If all Cou cilmembers plan to attend the informational meeting
with the Fire Department on March 25, a special City Council
meeting ne s to be called. If the Council chooses to delegate
two representatives to attend the meeting, a special meeting
does not n d to be called. This is an informational meeting
only and no action is going to be taken. It is a rather
lengthy pr cess to convert from defined benefit to defined
contributi n, so this topic will come up for future discussion
after the lief Association determines whether or not it wants
to make his change. Prior to the March 25 Fire Department
meeting, I ill provide additional background information to
the Council embers p1.anning to attend.
.
720 Dodg Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420