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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2016 <br />Note 9 DEFINED BENEFIT PENSION PLAN — FIRE DIVISION <br />A. PLAN DESCRIPTION <br />The Lino Lakes Public Safety Department — Fire Division participates in the Statewide Volunteer <br />Firefighter Retirement Plan (SVF), an agent multiple -employer lump -sum defined benefit pension plan <br />administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan <br />covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting <br />corporations that have elected to join the plan. As of December 31, 2016 (measurement date), the plan <br />covered 19 active firefighters and zero vested terminated fire fighters whose pension benefits are <br />deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter <br />353G. <br />B. BENEFITS PROVIDED <br />The SVF provides lump -sum retirement, death, and supplemental benefits to covered firefighters and <br />survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per <br />year of service approved by the City of Lino Lakes. The benefit is selected from 71 possible levels of <br />$100 increments ranging from $500 to $7,500 per year of service. Members are eligible for a lump - <br />sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro -rated <br />vesting schedule that increases from 5 years at 40% through 20 years at 100%. <br />C. CONTRIBUTIONS <br />The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as <br />specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed <br />$0 in fire state aid to the plan for the year ended December 31, 2016. The City recognized $66,668 as <br />pension expense for its proportionate share of the State of Minnesota's on -behalf contributions to the <br />SVF. Required employer contributions are calculated annually based on statutory provisions. The <br />City's statutorily -required contributions to the SVF plan for the year ended December 31, 2016 were <br />$0. The City's contributions were equal to the required contributions as set by state statute, if <br />applicable. In addition, the City made voluntary contributions of $44,394 to the plan. <br />71 <br />