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%, 'fA ur" FINANCIAL IMPACTS 37 The financial impacts can be broken into two aspects. The first being the new PERA plan. The 3, financial impacts of this plan are the city is required to contribute 14.4% of wages to the 39 firefighter's pension while the employee/firefighter contributes 9.6% of wages. The amount of 4 ('_) City contribution will vary depending on the number of firefighters in the pension plan and 4 1 wages paid. The city and fire department are confident the change in pension will have an 42 overall positive savings impact in both the short and long term. 43 44 The second impact will be to the funding of the Relief Association. The city is required by 45 statute to continue providing the State Aid annual funding amount to the Relief Association for 46 as long as the fire department has an operating Relief Association. The funding is provided by 47 the State,, so there is no financial contribution from the city once the relief fund balance achieves 48 100% funding or when the amount required to achieve 100% funding falls below the amount 49 provided by the State Aid funding. Over time the 100% funding ratio of the Relief Association is likely to be achieved providing further savings to the city. STAFF RECOMMENDATION 52 Staff recommends Council authorize the fire department to change future city pension benefits 53 offerings for part-time firefighters to Police & Fire PERA. 54 REQUESTED COUNCIL ACTION 55 Motion to authorize the fire department to change future city pension benefits offerings for part 56 time (Paid on Call) firefighters to Police & Fire PERA. 9 Prepared by: T'i mo �thy O'Neill, Fire Chief Page 2 of 2