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<br /> . <br /> Mayor and Counc I I <br /> AnnLJ,:tl Meeting - L,J.V,F,D, Benefit Association <br /> . January 20. 1990 <br /> The reduction 10 years of <br /> is 50% for those with <br /> serv i ce, with the percentage of reduction declining at the <br /> rate of 5% per year up until i9 years of service. So. a <br /> firefighter with 10 years of service would be eligible for <br /> $150.00 per month (50% of $300.00). one wi th 11 years of <br /> service would get $165.00 (55% of $300.00), and one wi th 19 <br /> years would get $285.00 (95% of $300.00), Neither reduced <br /> nor fu II benefits are payable until the firefighter reaches <br /> the age of 50. <br /> As a disincentive to taking the early retirement <br /> benefits, monthly payments made under this plan remain fixed <br /> throughou t the payout. From time to time, the Association <br /> may Increase the monthly benefit paid to fuliy vested <br /> members. Those who have taken early retirement are not <br /> el igible for these increases. <br /> Pension payments continue for life, with a guarantee of <br /> 60 payments. Firefighters may choose either the monthly <br /> payments. oe a lump sum. calculated by multlplylng $960.00 <br /> 0\1 the yeaes of seevice. upon retiring. <br /> These new eaely vesting privileges constituted the only <br /> Change to the byiaws. <br /> . Funding for the pensions comes feom two sources. The <br /> ia.rgest f i 0\,1 of revenue is from the 2% surcharge on fire <br /> in8~rance pcemiums pale in the department's service area. <br /> In 1989. this amounted to $104,866. The cities also pay. as <br /> a part of overall contract costs. In 1989, the cities paid <br /> $41.872. The Association eaened $84.323 on its investments. <br /> resulting in total income of $231,061. <br /> In 1989. the Association paid $61.750 in benefits. and <br /> Incurred $3.685 in expenses for seevices (apparently their <br /> auditor and such). Office expenses amounted to $34, so <br /> total costs were $65.469. <br /> The diffeeence. $165,592, was added to the $1,176,089 <br /> they had in assets at the end of 198B, resulting in assets <br /> of $1.341.681 at year-end 1989. If we look at their <br /> investment income ($84,323) as a percentage of their 1988 <br /> assets ($1,176,089) we'd see a return on investments of <br /> 7.17%. <br /> The Association is free to increase the benefits paid <br /> to its members without seeking approval from the city as <br /> long as they can meet their accrued liabilities, and have ,:, <br /> surplus of assets beyond that needed to cover those <br /> . n P,:,ge 2 n <br /> -- <br />