O-1976-1050 - Laserfiche WebLink

Browse Search

-- - . '" e . The flat additional amount of $10,429 for the proposed plan will be required each year during the 20 year period 1976 through 1995 regard- less of the number of volunteer firemen who are serving the city. In F.YhiQit 3, the position of your fund is projected over the next 10 years assuming your contributions are increased to the $5,151 above plus regular state contributions of $359 per year, the fund earns 5% interest each year and retirements occur at the dates the firemenuare f~rst eligible to retire. Under this projection, the fund will grow from its current level of $0 to $14,711 ~t the end of 1985, and would continue to grow after 1985. The accumulation of money within the fund and its continued growth after 1985 will provide adequate security for those now receiving benefits and those who will receive benefits in the future. Exhibit 4 projects the fund over the same period of time but provides for standard benefits of $50 per month, a 100% increase in benefits to retired firemen" a 200% increase to widows, and contributions of $12,865 per year by the city and firemen plus state contributions of $359 per year. The fund also increases but at a rate somewhat faster than in Exhibit 3. This is necessary in order to provide adequate security to meet the increased level of both current and 'future benefit payments. Exhibit 5 has been developed to compare the actuarial condition of your fund with present benefits and the recommended level of contribu- tions with its condition if you increase benefits under the proposed plan as described above. The contributions shown above for the present plan and the proposed plan are sufficient to pay the normal cost and amortize the unfunded - 6 -