Trustee Salaries

Legislation passed during 2012 gives relief associations authority to pay salaries from the special fund to association officers, and to the other board trustees if the salary amounts are approved by the governing body of the governmental entity responsible for paying required contributions.  Previously, special fund salaries could be paid only to the relief association president, secretary, and treasurer.

Municipal approval of the salary amounts is required only for salaries paid to trustees other than the relief association officers.  In addition, itemized expenses of the relief association officers and board trustees incurred as a result of fulfilling their duties may be paid from the special fund.

For example, a relief association’s bylaws define four officers, who are the president, vice president, secretary, and treasurer of the association.  These four trustees may be paid salaries from the special fund if the relief association’s bylaws authorize the payments.  If the relief association elects to pay any of the other five trustees on its board salaries from the special fund, the affiliated city council or town board would be required to approve the salary amounts before they could be paid.

Article III, Section 7 of the OSA’s Sample Bylaw Guides provides language that may be used as a reference by relief associations that elect to authorize special fund salary payments to board trustees.

Published last in the May 2016 Pension Newsletter