To: Honorable Mayor and Members of Town Council
From: Norris Croom, Fire Chief
Thru: David L. Corliss, Town Manager
Title
Resolution Approving the Amended Bylaws of the Board of Trustees of the Castle Rock Volunteer Firefighters Pension Fund
Body
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Executive Summary
This request is to approve revisions to the bylaws for the volunteer firefighters pension fund. Last updated in 2013, the bylaws reflect changes in statute that govern the pension fund, changes in structure, and an increase in the base monthly retirement benefit from $337.50 to $412.50.
Notification and Outreach Efforts
No specific notification or outreach was done as this is administrative in nature.
History of Past Town Council, Boards & Commissions, or Other Discussions
Town Council has previously approved similar revisions, most recently in 2013. The Public Safety Commission has two members that serve on the Board of Trustees, and they recommended approval of the revisions.
Discussion
This request is to approve revisions to the bylaws for the volunteer firefighters pension fund. The pension fund is managed by the Fire and Police Pension Association and is governed by state statute. It should be noted that this is a completely separate fund from the career firefighters of the department.
This volunteer pension fund has been in place since the mid-1980s, and was designed to provide the volunteer firefighters with a monthly pension after ten years of service. Currently, there are no active volunteers, and there are nineteen retirees, survivors, or individuals awaiting retirement age. As there is no longer a volunteer firefighter program, these numbers will only decrease going forward.
The bylaws were last updated in 2013, and the base retirement benefit was set at $337.50 per month. If an individual has more than ten years of service, then the amount is increased by ten percent for each additional year, to a maximum of $675.00 per month. Pension amounts range from the maximum of $675.00/month to a low of $168.75/month for a survivor.
These revisions reflect changes that have occurred in statute since 2013 as well as the organizational structure of the Board. The base retirement benefit would also be increased to $412.50 per month, or a maximum of $825.00 for twenty years of service.
Budget Impact
The Town currently contributes $20,440.00 annually, and the State contributes matching funds of $17,635.00, for a total annual contribution of $38,075.00. Based on the latest actuarial conducted by FPPA, we would need to contribute an additional $10,000.00 per year, or $30,440.00, to allow for the increase in the monthly benefit. The matching amount from the State would not change, so the entire amount would be the responsibility of the Town. The annual contribution would increase to a total of $48,075.00.
Considering there has not been an increase in the monthly pension since 2013, this additional $10,000.00 annual expense is a nominal amount, and can be included in the fire and rescue department budget.
Staff Recommendation
Staff recommends approval of the resolution.
Proposed Motion
“I move to approve the resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Bylaws