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REQUEST FOR COUNCIL ACTION Department Approval: Manager Approved: ��. � r�� f �.-� Item Description: Authorizing a newFire Relief Pension Plan Benefit Date: 10/23/20d& Item No: 3.� Agenda Section: Consent Agenda Background At the July 17, 2006 City Council worksession, representatives of the Roseville Fire Relief Association made a presentation regarding their pension plan benefit. After the presentation and subsequent discussion, the Council agreed on principle to provide benefit increases as follows: L7 Beginning November 1, 2006, an increase of $2 per month per year of service ❑ For 2008 and beyond, to grant increases based on the cost of living increase provided to Social Security recipients. To make the new plan effective the Council needs to formally approve the new Plan. A resolution prescribing this action is attached. To avoid having to perform a new actuarial study next year, a benefit increase would need to be made effective before 2007 . Discussion Items It was noted during the 7/17/06discussion, that a benefit increase had not been granted for the past 5 years. The $2 increase (from $27 to $29 per month) represents a 7.4% increase from 2002, or 1.� annually. This is approximately one-half the local inflation rate during this same period. It was also noted that while the benefit increase will result in an increase in the Plan's unfunded liability, the Plan's recent investment performance will allow the City's contribution to remain unchanged for 2007 . Finally, it was agreed that future increases would not be granted if the Plan's funding level dropped below 70% of what is needed to pay projected benefits. The Plan is currently 88% funded. Attachments � AttachrnentA —Resolution Adopting a new Fire Relief Pension Plan Benefit ❑ AttachrnentB — Copies of the Minutes from the 71�7/06 Council meeting Request for Council Action Approve the attached resolution adopting a new Fire Relief Pension Plan Benefit