Agenda - Council - 06/25/2024 - Laserfiche WebLink

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NOTE 11— DEFINED CONTRIBUTION PLAN — Total contributions made by the City for the last three Contribution Amount For the Year Ended: Employee December 31, 2023 $1,600 December 31, 2022 $1,300 December 31, 2021 $1,300 Employer $1,600 $1,300 $1,300 STATE-WIDE (continued) fiscal years were: Percentage of Covered Payroll Employee 5% 5% 5% Employer 5% 5% 5% Required Rate for Employees and Employers 5% 5% 5% NOTE 12 — DEFINED CONTRIBUTION PENSION PLAN — FIRE RELIEF ASSOCIATION A. Plan Description Volunteer firefighters of the City are members of the Ramsey Firefighter's Relief Association (the Association). The Association is a single -employer defined contribution pension plan that operates under the provisions of Minnesota Statutes § 69 and 424, as amended. It is governed by a Board of six officers and trustees elected by the members of the Association for three year terms. The chief of the Ramsey Volunteer Fire Department, the Mayor, and the Finance Director of the City are ex-officio members of the Board of Trustees. The City's payroll for members of the Association for the year ended December 31, 2023 was $243,579, compared to a total city payroll of $10,168,918. For financial reporting purposes, the Association's financial statements are not included in the City's financial statements because it is not a component unit of the City. The Association issues a publicly available financial report. A copy of the report may be obtained at Ramsey Municipal Center, 7550 Sunwood Drive Northwest, Ramsey, Minnesota 55303. B. Pension Benefits Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. In order to be entitled to a pension benefit, a firefighter must have completed a minimum of 10 years of service with the fire department, 10 years membership in the Association, and attain the age of 50 years. The firefighter will then be 60% vested with every year after that at 4% per year until the 20th year when 100% vesting will occur. Because this plan is a defined contribution plan, the amount of the retirement benefit is not predetermined, but rather is based on the individual member's allocable portion of contributions made during the participation period. Firefighters also have the availability of other pensions such as deferred pension, disability pension, death benefits, and supplemental death benefits. Each of these other pensions are determined based on age and years of service. C. Contributions Required and Contributions Made Contributions to the plan include State Fire Aid pursuant to Minnesota Statutes Chapter 69. In addition, the City is allowed to make voluntary contributions of other public funds pursuant to Minnesota Statutes Chapter 69. The City's contribution to the Association in 2023, including both city and state fire aid passed through the City totaled $226,570. This contribution represents nearly 93% of the current 2023 covered payroll of $243,579. There were no current year changes in plan provisions. 90