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<br />City Council Study Session - 07/17/06 <br />Miuutes - Page 10 <br /> <br />actuarial figures; financial impacts; peer aSSOciatIOn <br />comparisons; and benefit rate information related to their request <br />for an inflation-based rate increase and support for a $2.00 <br />annual increase for association benefits. <br /> <br />Discussion included accumulated interest on investments as <br />monitored by the State of MN; annual requirements for funding <br />the Relief Fund; no additional liability for the City based on $2 <br />additional per month; funded ratio assumptions and reductions <br />from 88% to 80%; risk management; amortization over twenty <br />years of unfunded liability; number of participants; Public <br />Employee Retirement Association (PERA) status of some <br />firefighters, currently affecting two (2) City employees; and the <br />need to consider as part of the 2007 budget, with City Finance <br />Director Chris Miller advising that it had already been <br />appropriated into the 2007 budget, but would require ongoing <br />commitment. <br /> <br />Additional discussion included historical data; most recent pay <br />increase in the year 2000; investments under the management of <br />the Minnesota State Board of Administration; workers <br />compensation and disability provisions related to pension draws; <br />Attorney General opinion regarding "double-dipping" with State <br />Statute and City Council policy silent on the issue; revision of <br />Association by-laws; and eligibility definitions. <br /> <br />Benchmarks <br />Request a Resolution for Increase: Social Security Cost of <br />Living Allowance (COLA) has increased 12.9% over the last <br />5 years; Inflation from Consumer Price Index (CPI) has <br />increased over 13% during last 5 years; and This proposal of <br />$2.00 represents a total increase of 7.4%, but only 1.5% <br />increase per year. <br /> <br />Establish a Plan or Policv on Future Increases: <br />Future increases could be based on an Index Scale; SSA; or <br />State of MN - PERA <br /> <br />Proposal for Guidelines for Future Increases <br />"The Association would like to have the City Council consider <br />this proposal as to how future increases to its members would be <br />