Title
LEOFF 1 Post Employment Medical and Fireman’s Pension Funding Plans
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Receive a briefing on LEOFF 1 Post Employment Medical and Firemen’s Pension funding plans.
Report
Issue:
Whether to receive a briefing.
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services, 360.753.8465
Presenter(s):
Dean Walz, Fiscal Services Director, Administrative Services
Background and Analysis:
The City provides medical benefits for police officers and firefighters who have retired under the Law Enforcement Officers and Fire Firefighters (LEOFF) pension system. Police officers and firefighters working for City between March 1, 1970 and September 30, 1977 are included in the LEOFF 1 system. These benefits are referred to as Other Post-Employment Benefits (OPEB)
The City provides pension benefits for firefighters employed by the City prior to March 1, 1970. Prior to LEOFF, the City was required to have a Firemen’s Pension Fund (FPF). When a retired firefighter has pension benefits from both LEOFF and the FPF, the City compares the benefits of the two systems. If the FPF has a higher benefit, the City pays the difference to the retiree.
The City created separate OPEB and FPF Funds to track, monitor and fund these benefits. The City has developed funding plans to meet the OPEB and FPF obligations. The plans are based on actuarial cost projections, which are updated every two years.
In 2017, $807,755 was paid in OPEB benefits. 2017 funding of the OPEB Fund was from $1,085,000 of property tax. The Fund had resources of $2,288,331 and a funding gap of $11.6 million at the end of 2017.
In 2017, $354,690 was paid in FPF benefits. 2017 funding of the FPF Fund was from $205,000 of property tax and $93,694 of State shared revenue from fire insurance premium tax. The Fund had resources $4,697,392 and a funding gap of $2.1 million at the end of 2017.
Funding plans will be presented at the meeting.
Neighborhood/Community Interests (if known):
N/A
Options:
Information only.
Financial Impact:
N/A
Attachments:
None