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Lake Elmo raises benefit level for paid on-call firefighters to $9,000 per year of service
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Summary
The council approved Resolution 2025-077 to increase the SVF benefit from $8,000 to $9,000 per year of service for paid on-call firefighters, noting the pension fund is well funded and that state fire aid and PERA funding support the change; the motion passed 4-0.
The Lake Elmo City Council voted unanimously to increase the benefit level under the Statewide Volunteer Firefighter (SVF) plan to $9,000 per year of service for paid on-call firefighters.
Chief Callas presented the request, explaining that Lake Elmo joined the SVF plan administered by Minnesota PERA in January 2024 and asked council support to raise the benefit from $8,000 to $9,000. Callas said the plan is in strong funding position: a July funding report showed the plan was 147% funded before the city paid a recent large retirement; after that payout the funding level was reported in the meeting as 134% funded. Callas said the benefit increase is supported by state fire aid, which by statute is directed to firefighter pension funding, and by PERA-managed investment accounts. "We're a 134% funded," Callas said while urging the council to approve raising the benefit level to $9,000 per year of service. (Chief Callas)
Council members asked procedural and technical questions about vesting and payout mechanics; Callas explained vesting occurs at 40% after five years and 100% after 20 years, and noted the SVF benefit is currently a lump-sum payout after age 50. Following discussion Speaker 3 moved to approve Resolution 2025-077 to opt into the increased benefit level; the motion passed by voice vote and was recorded in the transcript as "Motion passes 4 0."
Callas emphasized that increased benefits help retain and recruit volunteers, and a council member added that competitiveness with neighboring departments is important to sustain volunteer service.
What happens next: Resolution 2025-077 takes effect as approved and staff will implement the increased benefit level through the SVF/PERA administrative process and reflect the change in budget planning and reporting.
