08/30/1982 - City Council Special00228
MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
AUGUST 30, 1982
A special meeting of the Eagan City Council was held on August 30,
1982 at 8:30 p.m. at Fire Station No. 1. Those present were Mayor Blomquist,
City Councilmembers Egan, Smith, Thomas and Wachter. Also present was City
Administrator Hedges.
FIREMENS' RELIEF PENSION PLAN
Fire Chief Childers and Mayor Blomquist briefly reviewed the reasons
for a joint meeting between the Fire Department and City Council to explain
the various alternatives for considering a change in the Fire Department's pen-
sion plan. City Administrator Hedges presented the history of the meetings
that have taken place during the past two and a half years in addition to re-
viewing the various alternatives that were discussed by the City Council and
pension committee of the relief association. He stated that the City Council
is suggesting that the defined benefit plan be changed to an IRA plan and he
wanted to discuss the reasons for that consideration. Mr. Ken Southern, repre-
senting the pension committee of the relief association, explained the advantages
and disadvantages of an IRA plan for the Volunteer Fire Department. Members
of the City Council stated that the reason they were considering an IRA plan
and other plans is to properly address the fact that the present defined contri-
bution plan is not a qualified pension plan and can be subject to taxation at
the time of retirement. A number of the firefighters presented their concerns
and position regarding a pension plan, and after further discussion, John Flood,
president of the relief association, stated that the recommendation of the fire
fighters is to increase the monthly benefit to $12 per month or upon 20 years
of service the monthly pension amount would be $240 or a lump sum payment of
$36,000. The City Council stated that they would further evaluate the recom-
mendations and considerations of the fire fighters and another meeting was set
for Thursday, September 16, 1982, with the pension committee of the relief asso-
ciation to further consider the proposal by the Fire Department.
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10:15 p.m.
There being no further business, the meeting was adjourned at about
Dated: August 30, 1982 TLH
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City Clerk