HomeMy WebLinkAboutCity Council Resolution 2013-374CITY OF PLYMOUTH
RESOLUTION No. 2013-374
A RESOLUTION APPROVING LUMP SUM PENSION INCREASE FOR
THE PLYMOUTH FIREFIGHTERS RELIEF ASSOCIATION
WHEREAS, the Plymouth Firefighters Relief Association (PFRA) receives and
manages public money and in concurrence with the City of Plymouth, provides
retirement benefits for firefighters; and
WHEREAS, the current defined benefit of $7,500 per year of service, was last
increased on January 1, 2007; and
WHEREAS, due to the financial condition of the PFRA's special fund, they have
requested that the City Council consider an increase in the lump sum pension benefit for
eligible firefighters; and
WHEREAS, to ensure greatest compliance with standards of financial reliability
and insulate from market changes, Minnesota statutes require frequent actuarial
valuations; and
WHEREAS, the most recent PFRA actuarial valuation was completed by Van
Iwaarden Associates and reflects a funded ratio on January 1, 2012 of 110.4%; and
WHEREAS, after review and consideration, the City Manager is recommending
an increase in the pension benefit.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PLYMOUTH that the lump sum pension benefit for the PFRA is hereby
increased to $8,000 per year of service, effective January 1, 2014.
BE IT FURTHER RESOLVED that prior to December 31, 2015 and before any future
pension increases are requested, the PFRA Board or designated subcommittee, initiate the
following actions with City officials:
1. Discuss the advantages/disadvantages of converting the pension system from a
defined benefit plan to a defined contribution plan.
2. Discuss a performance based pension system that addresses internal inequity in the
current pension system.
3. Discuss a supplemental pension system that could provide for immediate vesting,
portability of assets, individual investment control and provide compensation based
on number of hours worked.
4. Discuss the advantages/disadvantages of investing all or a portion of the plan assets
with the Minnesota State Board of Investments.
Approved this 10th day of December 2013.