6.c Public Hearing - Benefit Increase to Firefighter Pension Level
14727 209 th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433 -2274 Fax (651) 433 -5112 http://www.ci.scandia.mn.us
DATE: October 11, 2019
TO: Honorable Mayor and City Council Members
FROM: Ken Cammilleri, City Administrator
RE: Public Hearing and Potential Approval of Changes to Firefighter Pension Benefits
At the August 7th Work Session, the Council approved a cost analysis for a potential increase
to the Fire Relief benefit level, administered by Public Employee Retierment Association’s
Statewide Volunteer Firefighter Retirement Plan. The cost analysis determined that the
current retirement benefit level of $2,800 per year of service is fully funded and has a surplus
at this time. According to the cost analysis, a benefit of $3,500/year of service is projected
to be funded at ratio of 103%. Funding alternatives are $3,300 at a 109% funding ratio,
$3,400 at a 106% funding ratio, and $3,400 at a 103% funding ratio. Further details from the
actuarial can be found in the attached documents.
In order for the Council to proceed with making changes to the Firefighter’s Pension benefit
level, it is required to hold a public hearing prior to any action or final deliberations.
It is recommended that the Council approve $3,500/year of service benefit level.
Please let me know if you have any questions.
Public Employees Retirement Association of Minnesota
60 Empire Drive, Suite 200
St. Paul, MN 55103-2088
Phone: 651-296-7460 or 1-800-652-9026
Website: www.mnpera.org
August 19, 2019 PERA ID 6542-00
Brenda Eklund
City of Scandia
b.eklund@ci.scandia.mn.us
A. Benefit Level (per year of service):3,300$ 3,400$ 3,500$
B. Projected Present Assets 12/31/2019 [Attached]730,723 730,723 730,723
C. Accrued Liability 12/31/2019[Attached]672,638 691,795 710,829
D. Surplus/ (Deficit) [B-C]58,085 38,928 19,894
E. Funding Ratio at 12/31/2019 [B/C]109%106%103%
F. Accrued Liability 12/31/2020 [Attached]733,469 754,459 775,343
G. Financial Requirement: Increase in Liability [F -C]60,832 62,664 64,514
H. Financial Requirement: PERA Fees [$30/member]750 750 750
I. Financial Requirement: 1/10th of Deficit/(Surplus, if 3rd yr) [D/10](5,809)(3,893)(1,989)
J. Financial Requirement: Total [G+H+I]55,773 59,521 63,274
K. Reductions to Financial Requirement:
Projected Fire State Aid [2019 Amount @1.035]35,241 35,241 35,241
Investment Earnings [6% on Present Assets]43,843 43,843 43,843
L. Estimated Required Contribution [J-K]None None None None
If you have any questions, please do not hesitate to contact me by phone (651-201-2666) or by email at sharyn.north@mnpera.org.
Sincerely,
Sharyn North
Principal Accounting Officer, PERA
cc: Fire Chief
mike.hinz@scandiafire.com
We received your request for a cost analysis to estimate the cost of increasing the benefit level in the statewide volunteer firefighter retirement plan
administered by PERA. Based on current information, we have developed this spreadsheet and a cost analysis for the benefit levels you requested. The
results are shown below.
Please note that these are estimates only. The figures shown above on Line L are estimates of required contributions that would be due on December 31,
2020 and beyond at the given benefit levels.
The estimate calculations were based on member information that was available at the time of preparing the analysis. Please review the membership data
and make any corrections to that data. If you return that to me, I will prepare an updated cost estimate for you to review.
PERA Volunteer Firefighter Retirement Plan Cost Analysis--Estimates Only
Name of Entity:City of Scandia
Calculation Date:08/19/2019
Benefit Increase Date:01/01/2020
Input:
2018 Fire State Aid:26,919
2018 Supplemental State Aid:6,405
7/31/19 Plan Assets 679,470
Member Data See Below
Number of Firefighters:25 12/31/2019 Increase 12/31/2020
Benefit Level:$3,300 672,638$ 60,832$ 733,469$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
BIZZOTTO, JESSE V Active 01/25/1983 06/01/2017 3 5,715$ 4 7,852$ 2,138$
BOYD, WILLIAM Active 05/15/1961 05/01/2000 20 66,000$ 21 69,300$ 3,300$
COOK, JAMES M Active 01/26/1974 11/01/2017 2 3,698$ 3 5,715$ 2,017$
FRANK, MICHAEL E Active 05/16/1969 06/01/2012 8 17,766$ 9 20,627$ 2,861$
HAGEN, JOHN M Active 02/14/1996 06/01/2014 6 8,105$ 7 9,754$ 1,648$
HAVENER, WILLIAM A Active 02/17/1953 09/01/1988 31 102,300$ 32 105,600$ 3,300$
HINZ, MICHAEL J Active 02/06/1972 01/01/1993 27 82,817$ 28 89,087$ 6,269$
HOLTGREVE, SHAUN C Active 10/12/1977 11/01/2017 2 3,698$ 3 5,715$ 2,017$
JOHNSON, JEREMY R Active 07/11/1982 11/01/2017 2 3,698$ 3 5,715$ 2,017$
KRAGER, ADRIANE S Active 01/06/1982 06/01/2017 3 5,715$ 4 7,852$ 2,138$
LOEFFLER, TRAVIS Active 06/21/1987 06/01/2013 7 13,078$ 8 15,420$ 2,343$
MAJESKI, CHRISTOPHER D Active 05/01/1978 06/25/2007 13 32,779$ 14 36,482$ 3,703$
MC CARTY, BENJAMIN L Active 10/25/1981 06/01/2014 6 12,521$ 7 15,067$ 2,546$
MC HUGH, PATRICK D Active 08/24/1980 11/01/2017 2 3,698$ 3 5,715$ 2,017$
MERRIER, JEROME T Active 06/19/1958 06/01/2001 19 60,599$ 20 66,000$ 5,401$
MYERS, ADAM G Active 01/20/1982 06/01/2016 4 7,852$ 5 10,119$ 2,266$
NORA, PETER A Active 03/09/1956 04/01/1983 37 122,100$ 38 125,400$ 3,300$
RYDEEN, ALLEN S Active 01/03/1982 06/25/2007 13 28,418$ 14 31,628$ 3,210$
RYDEEN, ERIC L Active 11/10/1976 06/01/2012 8 17,766$ 9 20,627$ 2,861$
SKARJA, IAN Active 02/23/1979 07/01/2010 10 23,660$ 11 26,874$ 3,215$
SODERLIND, DALLAS D Active 03/10/1975 06/01/2016 4 7,852$ 5 10,119$ 2,266$
BIEBL, JEFFREY N Deferred 12/17/1970 06/01/2005 05/01/2012 2,350.00$ 6 6,204$ 6 6,204$ -$
HELKE, JASON P Deferred 09/11/1974 06/28/2003 09/18/2017 2,500.00$ 14 26,600$ 14 26,600$ -$
MEAD, DAVID A Deferred 09/01/1967 06/01/2012 09/01/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
SIPOLA, AARON M Deferred 03/27/1992 06/01/2012 08/31/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
672,638$ 733,469$ 60,832$
PERA Volunteer Firefighter Retirement Plan Cost Analysis--Estimates Only
Name of Entity:City of Scandia
Calculation Date:08/19/2019
Benefit Increase Date:01/01/2020
12/31/2019 Increase 12/31/2020
Benefit Level:$3,400 691,795$ 62,664$ 754,459$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
BIZZOTTO, JESSE V Active 01/25/1983 06/01/2017 3 5,890$ 4 8,093$ 2,203$
BOYD, WILLIAM Active 05/15/1961 05/01/2000 20 68,000$ 21 71,400$ 3,400$
COOK, JAMES M Active 01/26/1974 11/01/2017 2 3,811$ 3 5,890$ 2,079$
FRANK, MICHAEL E Active 05/16/1969 06/01/2012 8 18,310$ 9 21,259$ 2,949$
HAGEN, JOHN M Active 02/14/1996 06/01/2014 6 8,349$ 7 10,047$ 1,698$
HAVENER, WILLIAM A Active 02/17/1953 09/01/1988 31 105,400$ 32 108,800$ 3,400$
HINZ, MICHAEL J Active 02/06/1972 01/01/1993 27 85,366$ 28 91,828$ 6,462$
HOLTGREVE, SHAUN C Active 10/12/1977 11/01/2017 2 3,811$ 3 5,890$ 2,079$
JOHNSON, JEREMY R Active 07/11/1982 11/01/2017 2 3,811$ 3 5,890$ 2,079$
KRAGER, ADRIANE S Active 01/06/1982 06/01/2017 3 5,890$ 4 8,093$ 2,203$
LOEFFLER, TRAVIS Active 06/21/1987 06/01/2013 7 13,472$ 8 15,885$ 2,413$
MAJESKI, CHRISTOPHER D Active 05/01/1978 06/25/2007 13 33,761$ 14 37,575$ 3,814$
MC CARTY, BENJAMIN L Active 10/25/1981 06/01/2014 6 12,904$ 7 15,529$ 2,624$
MC HUGH, PATRICK D Active 08/24/1980 11/01/2017 2 3,811$ 3 5,890$ 2,079$
MERRIER, JEROME T Active 06/19/1958 06/01/2001 19 62,456$ 20 68,000$ 5,544$
MYERS, ADAM G Active 01/20/1982 06/01/2016 4 8,093$ 5 10,429$ 2,336$
NORA, PETER A Active 03/09/1956 04/01/1983 37 125,800$ 38 129,200$ 3,400$
RYDEEN, ALLEN S Active 01/03/1982 06/25/2007 13 29,267$ 14 32,573$ 3,306$
RYDEEN, ERIC L Active 11/10/1976 06/01/2012 8 18,310$ 9 21,259$ 2,949$
SKARJA, IAN Active 02/23/1979 07/01/2010 10 24,384$ 11 27,698$ 3,313$
SODERLIND, DALLAS D Active 03/10/1975 06/01/2016 4 8,093$ 5 10,429$ 2,336$
BIEBL, JEFFREY N Deferred 12/17/1970 06/01/2005 05/01/2012 2,350.00$ 6 6,204$ 6 6,204$ -$
HELKE, JASON P Deferred 09/11/1974 06/28/2003 09/18/2017 2,500.00$ 14 26,600$ 14 26,600$ -$
MEAD, DAVID A Deferred 09/01/1967 06/01/2012 09/01/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
SIPOLA, AARON M Deferred 03/27/1992 06/01/2012 08/31/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
691,795$ 754,459$ 62,664$
PERA Volunteer Firefighter Retirement Plan Cost Analysis--Estimates Only
Name of Entity:City of Scandia
Calculation Date:08/19/2019
Benefit Increase Date:01/01/2020
12/31/2019 Increase 12/31/2020
Benefit Level:$3,500 710,829$ 64,514$ 775,343$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
BIZZOTTO, JESSE V Active 01/25/1983 06/01/2017 3 6,062$ 4 8,329$ 2,268$
BOYD, WILLIAM Active 05/15/1961 05/01/2000 20 70,000$ 21 73,500$ 3,500$
COOK, JAMES M Active 01/26/1974 11/01/2017 2 3,922$ 3 6,062$ 2,139$
FRANK, MICHAEL E Active 05/16/1969 06/01/2012 8 18,845$ 9 21,879$ 3,035$
HAGEN, JOHN M Active 02/14/1996 06/01/2014 6 8,594$ 7 10,341$ 1,748$
HAVENER, WILLIAM A Active 02/17/1953 09/01/1988 31 108,500$ 32 112,000$ 3,500$
HINZ, MICHAEL J Active 02/06/1972 01/01/1993 27 87,850$ 28 94,500$ 6,650$
HOLTGREVE, SHAUN C Active 10/12/1977 11/01/2017 2 3,922$ 3 6,062$ 2,139$
JOHNSON, JEREMY R Active 07/11/1982 11/01/2017 2 3,922$ 3 6,062$ 2,139$
KRAGER, ADRIANE S Active 01/06/1982 06/01/2017 3 6,062$ 4 8,329$ 2,268$
LOEFFLER, TRAVIS Active 06/21/1987 06/01/2013 7 13,867$ 8 16,351$ 2,484$
MAJESKI, CHRISTOPHER D Active 05/01/1978 06/25/2007 13 34,762$ 14 38,689$ 3,927$
MC CARTY, BENJAMIN L Active 10/25/1981 06/01/2014 6 13,281$ 7 15,982$ 2,701$
MC HUGH, PATRICK D Active 08/24/1980 11/01/2017 2 3,922$ 3 6,062$ 2,139$
MERRIER, JEROME T Active 06/19/1958 06/01/2001 19 64,279$ 20 70,000$ 5,721$
MYERS, ADAM G Active 01/20/1982 06/01/2016 4 8,329$ 5 10,733$ 2,404$
NORA, PETER A Active 03/09/1956 04/01/1983 37 129,500$ 38 133,000$ 3,500$
RYDEEN, ALLEN S Active 01/03/1982 06/25/2007 13 30,136$ 14 33,540$ 3,404$
RYDEEN, ERIC L Active 11/10/1976 06/01/2012 8 18,845$ 9 21,879$ 3,035$
SKARJA, IAN Active 02/23/1979 07/01/2010 10 25,096$ 11 28,506$ 3,410$
SODERLIND, DALLAS D Active 03/10/1975 06/01/2016 4 8,329$ 5 10,733$ 2,404$
BIEBL, JEFFREY N Deferred 12/17/1970 06/01/2005 05/01/2012 2,350.00$ 6 6,204$ 6 6,204$ -$
HELKE, JASON P Deferred 09/11/1974 06/28/2003 09/18/2017 2,500.00$ 14 26,600$ 14 26,600$ -$
MEAD, DAVID A Deferred 09/01/1967 06/01/2012 09/01/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
SIPOLA, AARON M Deferred 03/27/1992 06/01/2012 08/31/2017 2,500.00$ 5 5,000$ 5 5,000$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
Estimated Fire Dept.Separation Ben Level Through 12/31/2019 Through 12/31/2020 Normal Cost
Status Birthdate Entry Date Date at Separation Years of Accrued Years of Accrued (Change in
Name (Active or Deferred)(mm/dd/yyyy)(mm/dd/yyyy)(If Deferred)(If Deferred)Service Liability Service Liability Liability)
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
0 -$ 0 -$ -$
710,829$ 775,343$ 64,514$
City of Scandia
Total Projected Present Assets at December 31, 2019
Anticipated receipts and disbursements during 2019:
Fire State Aid 2018 Actual x 1.035 27,861
Fire Supplemental Aid 2018 Actual 6,405
Net Investment Income 6% Annual 16,987
Net Change in Total Present Assets 51,253$
Total Present Assets - Beginning 7/31/2019
Assets Per Request 679,470$
[adjustments]-$
-$ 679,470$
Total Present Assets - Ending 12/31/19 730,723$