PA ID# 053-43000-00; City of Minneapolis
PW ID# PW 56; City of Minneapolis Police Department Pension Fund
FEMA-3278-EM-MN, City of Minneapolis, City of Minneapolis Police Department Pension Costs, Project Worksheet (PW) 56
Following the collapse of the I-35W Bridge, police officers from the City of Minneapolis (Applicant) worked overtime in response to the emergency. FEMA reimbursed the Applicant for eligible Minneapolis Police Department overtime costs, including a fringe benefit rate which included retirement pay, for the 12 officers belonging to the Minneapolis Police Relief Association (MPRA) who performed eligible emergency work. The Applicant requested an additional $780,908 for its anticipated increased contribution to the MPRA pension fund. The Applicant calculated the additional cost based on an actuarial projection over a 13-year period and asserted that the increase was due to overtime hours worked by officers during the emergency. FEMA determined the cost was not eligible because it was not directly related to the performance of eligible work.
In its first appeal, the Applicant claimed that overtime hours worked during this emergency included a fringe benefit payment to the MPRA pension fund. The Regional Administrator denied the appeal stating that the additional pension cost had no connection to emergency work. In its second appeal, the Applicant asserts that the increased cost is a direct result of the emergency because it would not have occurred if officers had not worked overtime responding to the emergency. The Applicant provided a schedule of anticipated annual contributions to the pension fund with an updated mortality table. Based on the new mortality table, the Applicant requests an additional $19,000 for a total $799,000.
Are the increased pension costs considered a direct result of the disaster?
44 CFR §206.228 and §206.223(a)(1), Recovery Policy 9525.7, Labor Costs–Emergency Work; dated November 16, 2006, Office of Management and Budget (OMB) Circular A-87