HomeMy WebLinkAboutCity Council Resolution 2016-124
C ITY OF P LYMOUTH
R ESOLUTION N O. 2016-124
R ESOLUTION A MENDING THE P LYMOUTH F IREFIGHTERS R ELIEF A SSOCIATION
B YLAWS R ELATED TO V ESTING
WHEREAS, the Plymouth Firefighters Relief Association (PFRA) receives and manages
public money and, in concurrence with the City of Plymouth (City), provides retirement benefits
for paid-on-call firefighters; and
WHEREAS, the City requested the PFRA to consider pension reform in December 2013 in
conjunction with a benefit increase; and
WHEREAS, as part of these discussions, the PFRA has resolved to increase the pension
available to members from $8,000 per year of service to $9,500 per year of service without City
ratification; and
WHEREAS, as part of these discussions, the PFRA has recommended the current bylaws
be amended to provide pension benefits for members with five to ten years of service to the
organization.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLYMOUTH, MINNESOTA, that the proposed 2016 Amendment to the PFRA Bylaws, as ratified
by the PFRA membership related to vesting, is ratified effective May 1, 2016;
BE IT FURTHER RESOLVED that the City Council further states:
1. The PFRA has unilaterally increased pension benefits to its membership without
municipal ratification. This independent action relieves the City of any obligation to
guarantee benefits over $8,000 per year of service now and in the future.
2. The PFRA has indicated its interest in further pursuing a defined contribution plan
design. At this time, the City does not support plan redesign and views the defined
benefit model as the most appropriate means to ensure predictable compensation
at member retirement.
3. The City Council continues to encourage the PFRA to utilize the State Board of
Investments as a diversification strategy for pension fund assets.
APPROVED by the City Council on this 26th day of April, 2016.