1l. Approval of Amendment to the Fire Department Relief Association Bylaws
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
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Web Site
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1t,.
MEMORANDUM
TO:
Mayor & City Council
FROM:
Todd Gerhardt, City Manager
~~.
DATE:
October 9, 2006
SUBJ:
Fire Department Relief Association Bylaws: Approve
Amendment to Death Benefits for Active Members
The current bylaws of the Chanhassen Fire Department Relief Association
exclude death benefits for "active vested members" with 5, 6 or 7 years of
service. This was not the intent because anyone with 5 years of service is
considered a vested member.
As it reads today, benefits would be paid out as follows under the different
scenarios. In order to receive the amounts listed, a fire fighter must have
completed the entire years of service (e.g. someone with 6% years of service
would be paid at the same rate as someone completing 6 years.)
Years of Service
0-4 years of full service, NOT Vested
5 years of full service, Vested
Death Benefit Pa ment
$25,000
$20,000
($4,000 er ear of service x 5)
$24,000
($4,000 er ear of service x 6)
$28,000
($4,000 er ear of service x 7)
6 years of full service, Vested
7 years of full service, Vested
Attached is the modified death benefit language as prepared by the city attorney
that would give all members the same benefit (see Attachment #1).
RECOMMENDA TION
Staffrecommends amending Article XII, Section 12.1A of the Chanhassen Fire
Department Relief Association Bylaws as attached. Approval of this
amendment requires a simple majority vote of those City Council members
present.
ATTACHMENT
1. Death Benefit Amendment
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work, and play,
Section 10.4. Board Approval. It shall be the duty of the Board to approve
applications for service pensions if the applicant meets all of the eligibility
requirements set forth in these bylaws. It shall also be the duty of the Board not to
approve the application if any of the eligibility requirements are not met. If an
application is not approved, the Board shall return the application to the applicant
within 30 days, noting thereon, with particularity, which requirements the applicant
does not meet. Thereafter, the applicant shall be furnished with the opportunity to be
heard by the full Board, within the next 30 days, on the question of whether the
applicant meets all of the eligibility requirements. When the application is approved,
the service pension shall be paid as a service pension to such applicant.
ARTICLE XI. OPTIONAL FORMS OF PAYMENT
Section 11.1. Payment Options. Because of the varying circumstances in each
member's retirement planning, optional benefit payment methods are offered.
Selection should occur after consultation with a tax consultant, insurance and/or estate
planner, or an attorney. Alternate payment methods on the Application Form shall
include:
i) A single lump sum check payment payable to the eligible retiree.
ii) Lump sum payment by the Association to a recognized insurance carrier
licensed to do business in this state and approved for this product by the
Commerce Commissioner under Minn. Stat. 60A.40.
Section 11.2. Transfer to IRA Account. Upon written request from the retiring
member who has given proper notice of retirement, the Secretary or Treasurer shall
directly transfer the service pension amount into an Individual Retirement Account
under Section 408(a) of the Internal Revenue Code, as amended.
Section 11.3. Assignment. No service pension or ancillary benefits paid or payable
form the special fund of a Association to any person receiving or entitled to receive a
service pension or ancillary benefits shall be subject to garnishment, judgment,
execution, or other legal process, except as provided Minn. Stat. Sections 518.58, .581
or .611. No service pension or ancillary benefit paid or payable from the pension fund
shall be assignable by any member nor shall any assignment be recognized by the
board.
ARTICLE XII - ANCILLARY BENEFITS
-x- Section 12.1. Death Benefits.
A.
Vested or Deferred Vested Member. Effective January 1,2001. Upon the
death of any member on the deferred vested pension roll or any active member
who is vested, prior to commencement of the benefit, a lump sum pension shall
be paid to the member's surviving spouse and surviving children as designated
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by the member, or if none, to the member's designated beneficiaries for the
balance of the member's account in the plan or the $25..000.00 in Section
12.1.B... whichever is Q:reater. Such benefit shall commence on the first of the
month following death and shall be payable as a one time payment.
*Bo
Active Member Who is Not a Vested or a Deferred Vested Member. Effective
January 1,2001. A death benefit of $25,000.00 shall be paid to the designated
beneficiary of an active member of this Association who is also an active
member of the Chanhassen Volunteer Fire Department who is not a Vested or
Deferred Vested Member under Section 1 (A) of this Article. This benefit shall
be paid out of the Special fund.
C.
Members Receiving a Monthly Pension. Effective January 1,2001. If a
member who is receiving a monthly pension dies prior receiving all monthly
pension payments, the remaining monthly payments plus the $1,000.00 retired
annuity member death benefit shall be made to the member's surviving spouse
and surviving children as designated by the member, and if none, to member's
designated beneficiaries.
Following the receipt of a death benefit provided under this Article, neither a member's
beneficiary, nor estate is entitled to any other or further financial relief or benefits from
the Association.
Section 12.2. Permanent Disability Relief. A member who is permanently disabled
from being an active member in the Chanhassen Fire Department shall be eligible for a
disability benefit in lieu of retirement. Upon approval of the Board of Trustees
pursuant to this section the disability benefits will apply: A member who is
permanently disabled with a service related disability shall be eligible to collect a
disability benefit in an amount equal to his/her full account balance as of end of the
year in which the application for disability pension is made. The member shall be
eligible to receive the disability benefit immediately upon approval of the Board of
Trustees.
i) Any such disability benefit paid in accordance with this section shall be
in lieu of all rights to further service pension and survivor's benefit.
ii) Disability is defined as the inability to engage in performance of hislher
duties as a firefighter by reason of a medically determinable physical or
psychological impairment arising out of an act of duty which can be
expected to last for a continuous period of not less than twelve months
or can be expected to result in death, that was incurred in the line of
duty.
iii) Reports required. No member shall be paid disability benefits except
upon the written report of a physician or chiropractor of the member's
choice. This report shall set for the diagnosis and prognosis of the
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTY, MINNESOTA
RESOLUTION
Date
Resolution No.
Motion By
Seconded By
RESOLUTION AMENDING THE BY -LA WS OF THE
CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION
WHEREAS, the Chanhassen Firefighter's Relief Association has requested the City to
approve an amendment to Article XII, Section 12.1 A. of the Association's By-laws; and
WHEREAS, it is in the best interest of the City and of the Relief Association that the
amendment to the By-laws be approved.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Chanhassen, Minnesota,
The attached amendment to Article XII, Section 12.1 A. modifying death benefits be
approved.
APPROVED AND ADOPTED this 3rd day of February, 2006.
CITY OF CHANHASSEN
By:
Thomas A. Furlong, Mayor
ATTEST:
Todd Gerhardt, City Manager
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