15-41 - 05-19 - GV Fire Dept Relief Association Resolution 15-41 May 19, 2015
Member Fonnest introduced the following resolution and moved its adoption:
RESOLUTION AMENDING GOLDEN VALLEY FIRE DEPARTMENT
RELIEF ASSOCIATION BY-LAW ARTICLE XI DEFERRED INTEREST
PAYMENT AND SERVICE PENSION INTEREST
WHEREAS, the Golden Valley Fire Department Relief Association has by-laws
governing their process for active duty; and
WHEREAS, an active member of the Golden Valley Fire Department Relief
Association is eligible to collect a lump sum service pension subject to Article XI of the by-
laws; and
WHEREAS, the City of Golden Valley may be required to approve a relief
association's pension benefit level, and also may be required to make contributions to fund
relief association pension benefits; and
WHEREAS, the Article XI relates to a section of the by-laws; and
WHEREAS, the amendment will change the Deferred Interest Payment as originally
approved with Resolution 15-16; and
WHEREAS, the Deferred Interest Payment is defined in Attachment A and the
Golden Valley Fire Relief approved the language of the change on March 4, 2015.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden
Valley, Minnesota, as follows:
Interest on the Deferred Retirement Benefit defined.
n.
Shepard M. Harris, Ma o
ATTEST:
Kristine Luedke, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Snope
and upon a vote being taken thereon, the following voted in favor thereof: Harris, Snope,
Fonnest, Clausen and Schmidgall and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.
Attachment A
ARTICLE XI.
RETIREMENT BENEFIT
Section I: Service Pension - An active member of the Association who leaves active duty with the Fire
Department is eligible to collect a lump sum service pension subject to the following:
a.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%, 2011--0%, 2012=5%' The
deferred interest rate as set by the board of trustees under Minn. Stat. § 356.219, is 5%
unless and until otherwise changed by amending these bylaws. Interest will not accrue for
any year in which the member reaches the eligible to be paid out.
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