IV.10. Increase in Relief Association Benefit; SpeckenJune 4, 2019 Council Report 2019-053
Increase in Relief Association Benefit
Proposed Action
Staff recommends adoption of the following motion: Move to adopt resolution No. 2019 - 044.
Overview
Each year the Relief Association evaluates its benefit increase based on investment gains
and/or losses, contributions from the City, and Minnesota state aid money. Each year the Relief
Association and their Financial Company Vector Wealth Management look at the fund and how
the funds are trending. The Relief Association reduced the pay out in 2008 due to the down turn
in the economy. In June of 2018 the contribution was raised from $6,900 to $7,300. It is the
thought of both the Relief Association and the Fire Department Members to be conservative in
raising the fund in case another financial crash.
The Hopkins Fire Department Relief Association is looking to raise the pension from $7,300.00
to $7,900.00. The relief association in consultation with the accounting firm has verified that the
market and funds are conducive to raising the pension fund and still be protected if the market
should fall. The pension fund will still be funded with this increase at 103%.
Primary Issues to Consider
• Increase in pension?
The relief association has been working with both the state auditor and our financial
advisor both agree the fund is doing well and the recommend an increase in the relief
benefits. The increase will still leave the fund at 103% funded.
Supporting Information
• Resolution No 2019 - 044
___________________________
Dale Specken
Fire Chief
Financial Impact: $____________Budgeted: Y/N ____ Source: ________________
Related Documents (CIP, ERP, etc.): _______________________________________
Notes: _______________________________________________________________
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2019-044
Changing the Benefit amount for
the Hopkins Fire Department Relief Association
WHEREAS, the City of Hopkins Fire Department Relief Association has
requested the benefit amount be changed from $7,300.00 per year of service and
WHEREAS, the City of Hopkins provides the Relief Association with a set
amount of funding each year and has agreed to allow the Relief Association to
determine the benefit amount as long as no additional city funds are requested
and
WHEREAS, according to State of Minnesota law the Relief Association can
maintain the new benefit amount without additional city contributions;
NOW, THEREFORE, BE IT RESOLVED that the City of Hopkins Mayor and City
Council that we hereby change the Hopkins Fire Department Relief Association
benefit amount to $7,900.00 per Year of service
Adopted this 4th day of June, 2019.
__________________________
Jason Gadd, Mayor
ATTEST:
________________________
Amy Domeier, City Clerk