IV.6. Adopt Resolution 2019-099, Changing the Benefit Amount for the Hopkins Fire Department Relief Association; SpeckenDecember 17, 2019 Council Report 2019-124
Adopt Resolution 2019-099, Changing the Benefit Amount for the
Hopkins Fire Department Relief Association
Proposed Action
Staff recommends adoption of the following motion: Adopt Resolution 2019-099 Changing the
Benefit Amount for the Hopkins Fire Department Relief Association.
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 2019 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 109%
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 2019-099
___________________________
Dale Specken
Fire Chief
Financial Impact: $____________Budgeted: Y/N ____ Source: ________________
Related Documents (CIP, ERP, etc.): _______________________________________
Notes: _______________________________________________________________
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2019-099
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 to $7,900.00 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 by the City Council of the City of Hopkins this 17th day of December, 2019.
__________________________
Jason Gadd, Mayor
ATTEST:
________________________
Amy Domeier, City Clerk