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Pelican Rapids increases fire-relief lump-sum retirement payout to $4,000
Summary
At the Nov. 12 meeting the council approved raising the Fire Relief Association lump-sum retirement payout from $3,600 to $4,000 after the department reported the relief fund balance and said the change would not require regular city contributions unless the fund became insolvent.
Chief Shad Hansen and Gary Moz, president of the Fire Relief Association, asked the council to raise the relief association’s lump-sum retirement payout from $3,600 to $4,000. Hansen said the relief fund portfolio balance was about $891,000 as of a recent date and noted the maximum lump-sum benefit is $6,800; he told the council that most funding for relief payouts comes from the association’s 2% receipts and that the city would only be financially responsible if the relief fund could not meet obligations.
Councilors discussed the funding mechanics and the last increase (February 2022, from $3,300 to $3,600). After discussion, the council moved to approve the increase to $4,000; the motion carried by voice vote.
Hansen thanked the council for support and reminded members that the fund’s assets are managed separately from the city’s general fund; no city tax increase or appropriation was adopted at this meeting to cover the change.
