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City of Roseville - City Council Minutes for October 23, 2006 for an increase of 2 per month per year of service, effective November 1, ooh; and for 2008 and beyond, to grant increases to firefighter benefits based on benchmark for the cost of living increase provided to Social Security recipients. Mr. Miller noted that the plan still needed approval of the Fire Relief Association on an annual basis, and by resolution would be approved annually by the city council as well. councilmernber l aschka opined that, while he didn't have a problem with the 2 per month per year of service increase for 2007, he was concerned with the provisipn that future increases would not be granted if the plan's funding level dropped below 70% of what is needed to pay projected benefits, noting that the current plea is funded at 88 %. Councilmember Maschka acknowledged that the plan came before the city council annually, but it did constitute a defined benefit plan, with the City Council as the ultimate. guarantor, and cautioned that current and future council's needed to be aware of this provision. councilrnernber Pust questioned how the 70% out -off had been determined, and why it wasn't higher. Mr. Miller responded that there was no "magical number," and that at some point, the council needed to make a determination when not to recommend a benefit increase. Mr. Miller briefly reviewed historical fluctuations. Cauncilmember Punt nosed that other employee units cost-of- living adjustments (COLA) were not based on the Social Security index. Mr, Miller discussed industry -wide and government employee benefit package provisions, and the advantages of using the Social Security index as a benchmark in determining benefit packages. Further discussion included Public Employee Retirement Association (PIMP) comparisons with the Social Security index; industry standards; and the need for future city council's to monitor this annual provision. oundimernber Pust opined that she was not objecting to the $2.00 increase; and thanked firefighters for their continued service to the community; however} she expressed concern with tying anything to assumptions for continual increases in the future without city Council attention. council rnernber Meschka concurred; noting that future unfunded liabilities could be realized. Mr. Miller noted staff's provision for approval via resolution to provide more transparency. Dennis Koehntopp, Administrative Assistant for Fire Relief Association Mr. l oehntopp discussed actuarial analyses and past practice, Page 8 of 27 little:// www. ci. rosevi11c.mn.us /counciUmcctings /minutes / 006/rr O f 023.htm 1 1/27/2006