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Dep e t pproval: l� Manager Approved: '1 1% Date: 612/2003 Item No: IX D. Agenda Section: organizational Bushms Item Description: bequest to Approve Additional City Contribution to the Roseville Fire Relief Association Background Firefighters of the City of Roseville are members of the Roseville Firefighters' Relief Association. The Association is governed by a Board of nine Trustees: six are elected from the members of the Association, while the Roseville Mayor, Clerk/Treasurer, and Fire Chief are ex- officio members. The Association, through the Board, serves as the administrator of a single - employer pension plan, operating under MN Statute 424A, as amended. Among the Board's duties is to serve as the fiduciary agent for the pension plan, including the oversight of the Plan's investments, MN Statute 69.773 requires the Association to compute its required reserve for pension benefits, at least every two years. Earlier this year, the Association contracted with the consulting firm of Deloitte & Touche to conduct the actuarial analysis, who has submitted its findings to the Board, and subsequently the City. Findings of the Actuarial Analysis As conducted by Deloitte & Touche, the actuarial analysis concluded that the annual required contribution for 2003 is $4625392. This represents the estimated amount that is needed to meet the reserve requirements as set forth by State Statute. The annual contribution comes from State - aid (approximately $150,000), and an appropriation within the City's annual budget. The 2003 Budget, including the State -aid apportionment is $345,000. Based on the actuarial analysis, this level of City contribution would result in a reserve -level gap of $117,392 in the current year. 1 The Association has formally requested that the City provide an additional $117,392. A copy of the Association's request, along with a summary of the actuarial analysis conducted by Deloitte Touche is enclosed. As is noted in the enclosed actuarial summary, the increase in the required city contribution is due to the large asset loss during the fiscal year 2002. wring 2002, the Pension Flan lost approximately $615,000, or 10% in value. This followed lasses of $519,000, and $477,000, in 2001 and 2000 respectively, reflecting the general downturn in the national and world . economies.