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Council approves increase to firefighters’ per‑year service pension
Summary
The council approved a request from the Fire Department Relief Association to raise the per‑year service pension from $7,200 to $8,600, citing a funded ratio of roughly 152% and a one-time lump-sum payout per service year for future retirees only.
The City Council approved a recommendation from the Fire Department Relief Association to raise the per‑year service pension benefit for retiring on‑call firefighters from $7,200 to $8,600.
Luke Draxton, treasurer for the Relief Association, said the fund’s funded ratio is about 152% and cited state guidelines that encourage adjustments when the ratio is high. He said the increase applies to vested future retirees and results in a one‑time lump‑sum payment per year of service; retirees have distribution options including annuitization or rollover to an IRA.
Council members asked whether the change affects past retirees (it does not) and how payments are taxed; Draxton clarified options and eligibility (retirees must be age 50 and vested to request the pension). A council member moved the recommendation and another seconded; the motion was approved and placed on the consent agenda.
