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Oak Grove council raises volunteer fire relief benefit to $6,200
Summary
After a lengthy discussion about retention and funding mechanics, the Oak Grove City Council unanimously authorized an increase in the volunteer fire relief (PERA) benefit to $6,200 per year.
The Oak Grove City Council voted unanimously Monday to raise the city’s volunteer fire relief (PERA) benefit to $6,200 per year, a move council members said is intended to aid retention of volunteer firefighters.
Chief Engler, Oak Grove fire chief, told the council the PERA (Public Employees Retirement Association) volunteer relief account is funded primarily through a state pass-through of 2% of the fire insurance portion of homeowners’ premiums and that the city receives an annual accounting from PERA. "This year's amount of money that was sent last week is $91,000," Chief Engler said, explaining how the pass-through mechanism works and why the council must authorize changes to its local contribution level.
Council members discussed the retention value of raising the benefit and compared Oak Grove’s level to neighboring cities. Council Member Tradewell moved to set the volunteer benefit at $6,200; Council Member West seconded. "I'll make a motion for 6,200," Tradewell said when making the formal motion. The motion carried 5-0.
Why it matters: The volunteer relief payout is a lump-sum benefit distributed to eligible volunteer firefighters when they leave service. Chief Engler told the council that volunteers vest over years of service (5% vested at year five, increasing to 100% at year 20) and that higher relief levels can encourage long-term service. Council members noted surrounding jurisdictions pay higher levels (examples cited in the meeting: St. Francis at $4,800, Ham Lake at about $6,200, and East Bethel at $8,000), and some council members said the raise helps keep Oak Grove competitive.
Budget and risk context: Chief Engler explained the city does not currently write a yearly check from general fund operating revenues for the relief account; the bulk of revenue arrives via the PERA pass-through and is invested and administered by the state. He warned, however, that if the PERA funding ratio falls below certain thresholds the city could be required to contribute. The chief also described how the relief is invested conservatively through state investments and that the council’s authorization primarily sets the local payout level.
The vote: The council vote was recorded as unanimous. Council Member Tradewell moved; Council Member West seconded. The tally was 5 yes, 0 no.
Looking ahead: Council members and staff noted the discussion will continue to inform future budget work; the council did not authorize any immediate additional city contribution beyond approving the new benefit level.
