HomeMy WebLinkAboutVIII-14 Opting to Increase the Benefit Level for Firefighters Who are Vested in the 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 Mmembers
From:John Townsend, Fire Chief
Date:December 1,2025
Item:Paid-on-Call Firefighter Pension
Council Action Requested:
Approve Resolution for Pension Increase for Paid-on-Call Firefighters from $12,000 to $13,000
Background Information:
Members of the departments Paid on call staff are enrolled in the Public Employees Retirement
Association of Minnesota Statewide Volunteer Firefighter 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 $12,000 per year. The Department is
looking to increase the benefit level to $13,000 per year, this is a $1000 increase from previous year.
The increase is based on the following:
1.Current Funding Ratio is 169.53%
2.Financial requirements will be met after increase with a Surplus of $2,531,551 and a Funding
Ratio of 158.30%
3.Based on the report the risk of city contribution is low due to this fund surplus
4.Required city contribution $0
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 $1000 on 11/24/2025
Attachments:
1.Resolution
2.Financial Summary
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MINNESOTA PERA | OCTOBER 2025 1 of 1
City Of Hastings
Resolution No._________
A Resolution for the Benefit Level Increase in the Statewide Volunteer Firefighter (SVF) Plan
WHEREAS:The City of Hastings previously authorized the fire department to join the Statewide Volunteer
Firefighter (SVF)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 SVF 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 Hastings, Minnesota:
1.The City hereby approves an increase in the benefit level for who have completed the Fire Department’s
minimum required years of service for vesting as a member of the SVF Plan administered by PERA at the $13,000
benefit level per year of service, effective January 1, 2026; and
2.The Mayor and City Clerk are hereby authorized to execute all documents necessary to bring this resolution into
effect.
I, Kelly Murtaugh, City Clerk of The City of Hastings, do hereby certify that this is a true and correct transcript of the
resolution that was adopted at a meeting held on the 1st of December, 2025; the original of which is on file in this office.
I further certify that _______members noted in favor of this resolution and that [number] voted against the resolution.
Total of _______members were present and voting.
BY: ATTEST:
__________________________ _________________________________ _______
Mayor Mary Fasbender Date City Clerk Kelly Murtaugh Date
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City of Hastings Volunteer Fire Department 4
Cost Impact of Increase in Benefit Level
2025
Benefit Level $12,000
(Current)$12,100 $12,200 $13,000
1. Determination of Surplus / (Deficit)
a. Projected Assets $6,873,545 $6,873,545 $6,873,545 $6,873,545
b. Accrued Liability 4,054,429 4,083,185 4,111,942 4,341,994
2. Surplus / (Deficit)
[1a-1b]$2,819,116 $2,790,360 $2,761,603 $2,531,551
3. Funded Ratio
[1a/1b]169.53%168.34%167.16%158.30%
4. Financial Requirement Charges
a. Increase/(Decrease) in liability $355,022 $357,763 $360,504 $382,436
b. Administrative Fees 2,820 2,820 2,820 2,820
c. One-Tenth of Deficit / (Surplus)^(281,912)(279,036)(276,160)(253,155)
d. Net Financial Requirement Charge
[4a+4b+4c, not less than zero]$75,930 $81,547 $87,164 $132,101
5. Financial Requirement Credits
a. Fire State Aid Current Year x 1.035 $(251,928)$(251,928)$(251,928)$(251,928)
b. Supplemental State Aid Current Year (37,092)(37,092)(37,092)(37,092)
c. 6% interest on Projected Present Assets (412,413)(412,413)(412,413)(412,413)
d. Net Financial Requirement Credit
[5a+5b+5c]$(701,433)$(701,433)$(701,433)$(701,433)
6. Required Contribution
[4d+5d, not less than zero]$0 $0 $0 $0
^Zero if the plan has had a surplus for only one year.
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