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Council approves increase in volunteer firefighter benefit to $9,000 per year of service
Summary
Lake Elmo voted unanimously to opt into a higher benefit level under the Statewide Volunteer Firefighter plan administered by Minnesota PERA, raising the benefit from $8,000 to $9,000 per year of service; staff said the fund is well-funded and payments are supported by fire state aid and PERA accounts.
Lake Elmo's City Council on May 20 approved Resolution 2025-077 to increase the benefit level for members vested in the Statewide Volunteer Firefighter (SVF) plan from $8,000 to $9,000 per year of service.
Chief Callas briefed the council on the SVF plan administered by Minnesota PERA, said the city entered the plan in January 2024 and that recent funding reports show the city's plan is well funded. "Our current benefit level stands at $8,000 per year of service and [we are] asking to increase our benefit level to $9,000 per year of service," Chief Callas said.
Chief Callas told the council the plan—s funding comes from state-provided fire state aid and is a pass-through to the pension fund; fire state aid for the city rose from roughly $60,000 in 2017 to about $117,000 this year, reflecting growth and market values. He also said vesting rules changed under the SVF plan, with 40% vesting at five years and 100% at 20 years, and described a recent large retirement payment that reduced the plan's liability in the funding report.
A council member said the increase will help keep the city competitive in recruiting and retaining volunteer firefighters. The motion to approve Resolution 2025-077 passed unanimously, recorded as 4-0.
Staff noted the SVF plan provides a report each July showing funding status and recommended the $9,000 level based on comparison with neighboring departments and sustainability of the city's funding position.
