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Lake Elmo council raises volunteer firefighter benefit to $9,000 per year of service
Summary
Following a presentation by Chief Kallis, the council unanimously approved resolution 2025-577 to raise the statewide volunteer firefighter benefit from $8,000 to $9,000 per year of service; the benefit is funded through state fire aid and managed by Minnesota PERA.
The Lake Elmo City Council voted unanimously Tuesday to increase the City’s benefit level for volunteer firefighters enrolled in the Statewide Volunteer Firefighter (SVF) plan from $8,000 to $9,000 per year of service.
Fire Chief Kallis told the council the SVF plan is administered by Minnesota PERA and replaced the department’s relief association when the city joined the statewide plan in January 2024. Kallis said the city’s SVF funding status was recently reported at 147% before a large retirement payout reduced the valuation to roughly 134%; staff therefore recommended increasing the benefit level to remain competitive with neighboring departments and to support recruitment and retention of volunteer firefighters.
Kallis explained the mechanics of the benefit: the $9,000 figure is a per-year-of-service lump-sum payout available after age 50 under the current plan. For example, a member with 20 eligible years would receive a payout equal to 20 times the benefit level. He also noted vesting occurs at 40% after five years and is 100% at 20 years, and that the plan is funded primarily through state fire aid and PERA-managed investment accounts.
A motion to adopt resolution 2025‑577 — opting to increase the benefit level to $9,000 per year of service — passed on a unanimous voice vote recorded as 4–0. Council members thanked the department for its volunteer service and described the increase as a necessary step to remain competitive with neighboring fire departments.
Chief Kallis and staff will follow PERA reporting requirements and coordinate the administrative steps needed to effect the benefit increase.
