11-45 - 09-20 - approve amendment to GV fire relief assoc by-laws - interest on deferred retirement benefit Resolution 11-45 September 20, 2011
Member Scanlon introduced the following resolution and moved its adoption:
RESOLUTION APPROVING AMENDMENT TO
GOLDEN VALLEY FIRE RELIEF ASSOCIATION BY-LAWS FOR
INTEREST ON DEFERRED RETIREMENT BENEFIT
WHEREAS, Minnesota Statutes 424A, subd. 10 set procedures and require the City
Council to approve changes to bylaws;
WHEREAS, the City Council approved the Fire Relief Association by-laws in its
entirety on October 19, 2010, after the Fire Relief Association approval on May 11, 2010;
and
WHEREAS, at its meeting on September 7, 2011 the Fire Relief Association
approved an amendment to their by-laws to include the interest rates that are paid on the
Deferred Retirement Benefit since 2006.
WHEREAS S, at its Council/Manager meeting on September 13, 2011 members of
the Fire Relief Association reviewed their request to amend their by-laws; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Golden
Valley to approve the amendment to the Golden Valley Fire Relief Association by-laws in
Article XI, Retirement Benefit, Section I, h, Interest on the Deferred Retirement Benefit,
which reads as follows
Interest on the Deferred Retirement Benefit— Interest shall be added to the deferred
benefit amount, compounded annually, at a rate equal to the actual time weighted
total rate of return of the fund as set by the board of trustees under Minn. Stat. §
356.219, up to 5%, and applied consistently for all deferred service pensioners.
Minn. Stat. § 424A.02, subd. 10(b), requires municipal ratification of the rate set by
the board of trustees in years in which the relief association does not have a surplus
over full funding under Minn. Stat. § 69.772, subd 3, paragraph (c), clause (5), or
69.773, subd 4, and if the municipality is required to provide financial support to the
special fund of the relief association under Minn. Stat. § 69.772 or 69.773. As of the
date of this amendment, the following rates have been set by the board: 2006 = 5%,
2007 = 5%, 2008 = 0%, 2009 = 0%, 2010 = 5%. Interest will not accrue for any year
in which the member reaches the age of 50 or thereafter.
BE IT FURTHER RESOLVED that the Golden Valley Fire Relief Association by-laws
are to be reviewed on an annual basis and requires approval of the City Council for any
language amendment that would affect a possible municipal contribution.
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Li da R. Loomis, Mayor
Resolution 11-45 - Continued September 20, 2011
ATTEST:
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Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Freiberg
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg,
Loomis, Pentel, Scanlon and Shaffer; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.