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REQUEST FOR COUNCIL ACTION Date: July 8, 2013 Item No.: 7.h Department Approval City Manager Approval Item Description: Approve Roseville Fire Relief Association Benefit Increase Page 1 of 2 B ACKGROUND 1 The Roseville Fire Relief Association has requested that the City consider raising the monthly 2 benefit its members currently receive from $30 to $32 per month for each year of service. At the 3 July 1 st Special City Council meeting, staff presented the City Council with background on the 4 Fire Relief Association. 5 P OLICY O BJECTIVE 6 To provide financial oversight of the Fire Relief Association retirement benefit in order to 7 allocate a fiscally responsible amount of City investment to the fund while providing appropriate 8 retirement benefits to fire fighters and their families. 9 B UDGET I MPLICATIONS 10 Providing the Fire Relief Association pension is an on-going cost to the City. The amount of 11 contribution varies from year- to- year dependent on market condition. The $2 monthly increase 12 will add about $577,764 liability to the fund. Below is a table showing existing and future 13 contributions:14 15 2013 2014 with benefit increase 2014 without benefit increase City of Roseville Contribution $152,500 $72,817 $25,342 State 2% Insurance Funding $145,733 $147,750 (est.) $147,750 (est.) Total $298,233 $220,571 $172,096 S TAFF R ECOMMENDATION 16 In consideration of past practices and the condition of the fund, staff is supportive of increasing 17 the monthly benefit by $2 per month for each year of service. However, staff would make this 18 approval conditioned on the several items. They include: 19 x Directing the Relief Association Board to coordinate all future actuarial requests 20 with City Staff, and with the approval of City Council.21 x Prior to requesting a future benefit increase, the Relief Association Board should: 22 Ci ty y y y y y y y y y y y y M M M M M M M M M M M M an ag er Approv