HomeMy WebLinkAboutVIII-07 Benefit Level for Statewide Volunteer Firefighter PlanCity of Hastings 101 Fourth Street East Hastings, MN 55033-1944 Phone: 651-480-2350 www.hastingsmn.gov
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: John Townsend, Fire Chief
Date: December 2, 2024
Item: Paid-on-Call Firefighter Pension
Council Action Requested:
Approve Pension Increase for Paid-on-call Firefighters, from $11,000 to $12,000.
Background Information:
Members of the departments paid-on-call staff are enrolled in the Public Employees Retirement
Association of Minnesota Statewide Volunteer Firefighter (SVF) Plan. The department moved to the
Statewide plan in 2022. Currently our members are vested at 5 years of service with full pension
realized at 20 years of service. The current benefit level is $11,000.00 per year. The department is
looking to increase the benefit level to $12,000.00 per year; this is a $1,000.00 increase from previous
year.
The current state of the SVF Benefits is below. This fund is currently at a surplus of $2,314,218.00
161.92% funded. This is a $1,075,162.00 increase from 2023. The city contribution for this increase is
$0.00.
Financial Impact:
This pension is funded with fire state aid along with investments. Currently, no budget impact, with
low risk of city contribution in the event of a deficit due to market.
Advisory Commission Discussion: N/A
Council Committee Discussion: Finance Committee reviewed and approved increase of $1,000.00
Attachments:
1.Resolution
2.Financial summary
VIII-07
VIII-07
RESOLUTION No.________________
A RESOLUTION OPTING TO INCREASE THE BENEFIT LEVEL FOR
FIREFIGHTERS WHO ARE VESTED IN THE STATEWIDE VOLUNTEER
FIREFIGHTER PLAN
The City Council of the City of Hastings, Minnesota, does ordain:
WHEREAS: The City previously authorized the fire department to join the Statewide Volunteer
Firefighter Plan administered by the Public Employees Retirement Association (PERA);
and
WHEREAS: The City requested and obtained a cost analysis of increasing the benefit level for
firefighters who are vested in the Statewide Volunteer Firefighter Plan from PERA not
more than 120 days ago; and
WHEREAS: The City understands that Minnesota statutes do not have provisions for a decrease in
benefit levels; and
WHEREAS: The City highly values the contributions of City Fire Department members to the safety
and well being of our community and wishes to safeguard their pension investments in a
prudent manner.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, MINNESOTA:
1)The City hereby approves an increase in the benefit level for firefighters who have completed at
least 5 years of good time service credit as a member of the Statewide Volunteer Firefighter
Plan administered by PERA at the $12,000.00 benefit level per year of service, effective January
1, 2025; and
2)The City Clerk and Mayor are hereby authorized to execute all documents necessary to
effectuate the intent of this resolution.
CITY OF HASTINGS
VIII-07
The motion for the adoption of the foregoing resolution was proposed by Councilmember
_____________ and was duly seconded by Councilmember ___________ and upon vote being taken
thereon, the following voted in favor:
And the following voted against the same:
Whereupon said resolution was declared duly passed and adopted by the City Council of the City of
Hastings, on December 2nd, 2024.
BY: ATTEST:
Mayor
City Clerk
VIII-07