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Department Approval <br />K%k A <br />Rls�kspvlffi� <br />REQUEST FOR COUNCIL ACTION <br />Date: 00/10/08 <br />Item No.: 7.e <br />City Manager Approval <br />.J <br />Item Description: Authorizing a new Fire Relief Pension Plan Benefit <br />BACKGROUND <br />On October 23, 2000 the City Council passed a resolution (attached) authorizing a new Fire Relief Pension <br />Plan that called for future benefit increases to be based on the same cost -of- living adjustment provided to <br />Social Security recipients, subj ect to some conditions. <br />The Plan specified that the increase would be calculated even two years and averaged over that 2 -year <br />period. It was understood that future benefit increases shall be withheld if it is demonstrated through an <br />actuarial analysis that the Pension Plan's unfunded liability is less than 70 %. <br />Attached is a request from the Roseville Fire Relief Association, along with selected statements from the <br />most recent actuarial analysis. The request calls for: <br />❖ Increase the monthly benefit from $29 to $30 per year of service <br />•'• Increase the lump -sum benefit from $2,900 to $3,000 per year of service <br />POLICY OBJECTIVE <br />The Plan allows for a more consistent review process for granting future benefit increases and is tied to a <br />well - established and generally- accepted index. <br />FINANCIAL IMPACTS <br />As calculated in the attached actuarial analysis, the increase will result in a larger pension burden and <br />unfunded liability. However, the Pension Plan's investment performance will allow the City's contribution <br />to remain unchanged. Even with the increase, the Pension Plan's funding level will remain at 97 %. <br />STAFF RECOMMENDATION <br />The request by the Fire Relief Association is consistent with the Council - adopted Fire Relief Pension Plan <br />and will not create any added financial burden. Staff recommends approval. <br />Page 1 of 2 <br />