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HomeMy WebLinkAboutResolution 71-15 CITY OF COLUMBIA HEIGHTS 590 - bOth Ave. N.E. Columbia Heights, Minnesota 55421 R E S O L U T I O N April 9, 197l REQUESTING THE LEGISLATURE OF THE STATE OF MINNESOTA TO MAKE CERTAIN CHANGES 1N THE PENSION PROGRAM FOR MEMBERS OF THE POLICE DEPARTMENT OF THE CITY OF COLUMBIA HEIGHTS IN RECOGNITION OF THE EXCESSIVE FINANCIAL DEMANDS REQUIRED TO MEET PROJECTED FUNDING REQUIREMENTS FOR THE EXISTING PENSION BENEFIT SCHEDULE. WHEREAS, the City Council of the City of Columbia Heights and the Columbia Heights Police Relief Association did in 1965, mutually agree to be bound by the laws re]erin9 to Police Pensions 9overnin9 cities of the third class, M.S.A. 423.37, and WHEREAS, Said laws specified a rate of contribution by both the City and active duty members of said Police Relief Association into the fund, and delegated sole responsibility for the proper management and control of all funds of the Police Relief Association to the members of the Association themselves, including the sole power via bylaw amendment, subject to certain minimum and maximum limits, to adjust benefits so as to maintain over-alt solvency of the association, and WHEREAS, benefit schedules have been set by the Association considerably in excess of the ability of the prescribed lundin9 to support, resulting in a considerable actuarial deficit for fund ~]ances of the association, and WHEREAS, the ~'Guidelines Act" passed by the 1969 Session of the State Legislature has resulted in a required Police Relief Association contr;bution for 197] by the City of Columbia Heights in an amount equal to $1,674 per active duty man in the department, and is projected to cost the City $3,900 per man in 1973, and $]0,400 in 1982 (City contribution was $],250 per man in 1970, the last year before the "GuidelinesTM formula became effective), said projected costs to City will be approximately 50% of payroll, whereas active duty officers will only be required to put in 6% of salary, and WHEREAS, the City Council of the City of Columbia Heights deems these costs to be beyond the rea]m of reasonabl~ess with respect to the ability to tt~e taxpayers of the City of Columbia Heights to be expected to pay, and - 2 - WHEREAS, extended negotiations over a period of several months between the City Council and the Policemen has failed to produce a meaningfu] reduction of these costs, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS respectfully requests the State Legislature to enact into law certain changes to existing law as pertains to the City of Columbia Heights and the Columbia Heights Police Relief Association, as follows: Maximum allowable retirement Benefit be based on following: 1. Minimum retirement age to be 58. o Minimum retirement benefit to require 20 years of paid-in service to fund. Retirement benefit not to exceed 30% of the top five-year average salary of the top patrolman salary during the active duty years of the officer receiving said benefit with an additional maximum allowable benefit not to exceed 2% per year of said average salary for each additional year of paid-in service beyond 20 years, but for no years beyond a total of 30 years of paid-in service. Members retired and drawing benefits as of ,lu~.y 1, 1971, or on deferred benefit status on such date, shall be deemed to have 20 years of paid-in service with a five year hi gh average top patrolman salary schedule equal to the 1968 salary schedule for top patrolmen. Said members shall also be eligible for a retirement benefit not to exceed 50% of said top patrolman salary and shall further be eligible for said benefit at age 50. Maximum allo,.~able disability benefit shall be based on following: o A total disability benefit may be allowed not to exceed 30% of top patrolman salary in department at time of disability, and commencing from date of said disability, to any active officer of the department with a minimum of six months of full-time service. No disability benefit to be allowed where disability was the result of gainful employment outside of the department. l~aximum allowable widow and children benefit shall be based on the following: o Deceased member to have had a minimum of 6 months of paid-in service for ben'efit to apply. Haximum allowable widow benefit not to exceed 20% of top patrolman salary indepartment at time of death for remainder of life of widow, or until she shall remarry. Maximum allowabIe benefit for each child of a said deceased officer shall not exceed 5% of top patrolman salary in department at time of death and shall cease at age 18 of said child. Total maximum allowable widow and children benefit of deceased member shall not exceed 40% of department top patro]man salary at time of death. Cost Participation by City and Members of Association: ° o Active duty offi:cers of association shall contribute a minimum of 6~ of salary to benefit fund during each payrotl period. City shall contribute an amount equal to 9% of salary for each active member of association during each pay period. Neither City or active duty officers shall be required to contribute to fund for service of individual officers in excess of 30 years of paid-in service. An actuarial survey shall be made of fund on or before July 1, t972. Any deficit existin9 at such time shall be paid by the City in equal installments over a period of 40 years. Subsequent actuarial studies shall be made on or before July 1st ofevery fourth year foilowin9. Any additional deficits brought forth by such actuaries shall be made up by a contribution from both City and active department officers in a 60-40 ratio. City and active department officers shall have the right to negotiate additional cost participation in fund on the basis of a cost sharing not to exceed 60% of said additional costs by the City, and not less than 40~ of said additional costs by the active duty officers of the association. Should any additional sources of revenue be made available to the fund, they shat I just be used to reduce the City required annual contribution to fund the deficit antil such deficit is elimina~d. - 4 - BE IT FURTHER RESOLVED that the foregoing proposals be set forth as a Bill for an Act by the ]37] Legislature and copies of this resolution be submitted to all members of the Legislative Retirement Study Commission and the Legislators representin9 our district. Passed this 12th day of April, 1371 Offered by: Jeska Seconded by: Land Ro)l ~Call: All Ayes Bruce G. Nawrocki , Mayor