City of Palm Coast Volunteer Firefighter Program Overview
Explore the City of Palm Coast Volunteer Firefighter Program, including its history, roles, benefits, and impact. Learn about the Pension Reserve Project and the ongoing efforts to support emergency services through volunteer hours. Discover the evolution of the pension plan and the incentives provided to volunteer firefighters over the years.
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City of Palm Coast Volunteer Firefighter s Program Pension Reserve Project Finance Department Christopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMA Ginger Norberg, Accounting Technician Lead February 10th 2015
Presentation Outline Volunteer Firefighter Program Volunteer Firefighters Pension History Roles Current Plan Status Pension Reserve Project Next Steps
Volunteer Firefighter Program Receive similar training and testing as an entry level paid firefighter Stand in for paid firefighters out on calls Will respond directly to calls for service Specific engines & equipment assigned Supplement many of the same duties as paid firefighters In addition to pages calls: Participate in special events Provide administrative support
Volunteer Firefighter Program Respond to calls and perform duties in place of paid employees Approximately 12,000 volunteer hours accumulated supporting emergency services during 2014 Equivalent of 3 paid entry level positions Conservative Savings of $185,000 annually Does not include administrative, training or special events hours
Pension Plan History 2002 City Council approves participation in the State Property Insurance Premium Tax Program State Rate of 1.85% on Insurance Companies State restricted for funding of pension benefits for Firefighters 2005 City of Palm Coast Volunteer Firefighters Pension Plan Established Established Board of Trustees Established Retirement Qualifications o LOSAP (Length of Service Award Pension Program) o Establish Pension Eligibility o Monthly Benefit Amount - $35 per year of credited service
Pension Plan History 2009 City of Palm Coast Volunteer Firefighters Pension Plan Revised Increased monthly benefit amount from $35.00 to $50.00 per year of credited service 2011City of Palm Coast Volunteer Firefighters Pension Plan Revised Increased monthly benefit amount from $50.00 to $65.00 per year of credited service
State Collected Premium History Premium Tax Receipts $500,000 $450,000 $381,967 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2012 2003 2004 2005 2006 2007 2008 Fiscal Year 2009 2010 2011 2013 2014
Program Roles Fire Chief Approve Volunteer Eligibility Coordinate with Volunteers on Training Establish Procedures related to use of Volunteers Integrate Command Structure with Volunteers City Council Pension Board Create, Amend Plan Approve Pension Benefits Establish Budget Qualifications Benefit Levels Appoint 2 Members to Pension Board Confirm 1 Member Selected by Pension Board Separate Legal Entity Hold Minimum 4 Public Meetings per Year Plan Administration Pay Benefits Determine Plan Investments Hire Professional Consultants Volunteers 2 Members, Board 1 Member Subject to City Council Confirmation Volunteer Firefighter Pension Program
Current Plan Status Annually Annual State Collected Premium Taxes Pension Reserve Current Benefits $206,000 - $256,000 $350,000 - $400,000 $144,000
Current Plan Status Plan Funding $3,500,000 $3,000,000 $2,500,000 Assets $2,000,000 $1,500,000 Pension Liability $1,000,000 $500,000 $0 2008 2009 2010 2011 2012 2013
Current Plan Status Funded Ratio 121% 121% 125% 119% 120% 114% 112% 111% 115% 110% 105% 100% 95% 90% 85% 80% 2008 2009 2010 2011 2012 2013
Current Plan Status Required Contributions $160,000 $140,000 Required Contribution $120,000 $100,000 $80,000 State Contribution $60,000 $40,000 $20,000 $0 2008 2009 2010 2011 2012 2013
Current Plan Status Reserve for Pension Benefits $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2008 2009 2010 2011 2012 2013
Pension Reserve Project State Requirement to Distribute Accumulated Reserves as Pension Benefit Goals in Meeting State Requirement No increased potential liability to the City Comply with IRS Regulations Comply with State Pension Statutes
Pension Reserve Project Share Plan Concept Hold approximately $250,000 in permanent reserve Distribute accumulated reserves above the permanent reserve as pension benefit consistent with State requirements Active volunteers and retirees eligible Estimated at $4,000 per year of service Any future accumulated reserves above the permanent reserve only distributed to active volunteers
Pension Reserve Project Share Plan Concept meets the State Requirement and City Goals Provides Accumulated Reserves as Pension Benefit No Increased Potential Liability to the City Establishes $250,000 Permanent Reserve Enhanced Benefits only if Funds Available Comply with IRS Regulations Comply with State Pension Statutes
Next Steps Draft Ordinance with Share Plan Concept Revise Ordinance for IRS Compliance IRS Private Letter Ruling Received 11/7/2014 Revise Ordinance for Changes in State Statutes Adoption of Revised Ordinance
