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
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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.
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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