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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2018 <br /> <br /> <br /> <br /> <br />I. PENSION EXPENSE <br /> <br />Pension expense recognized by the City for the year ended December 31, 2018 is as follows: <br /> <br />GERF $185,471 <br />PEPFF 261,970 <br />Fire Pension Plan (Note 8)57,541 <br />Total $504,982 <br /> <br /> <br />Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION <br /> <br />A. PLAN DESCRIPTION <br /> <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. At December 31, 2018 (measurement date), the plan <br />covered 24 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 /> <br /> <br />B. BENEFITS PROVIDED <br /> <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. Members are eligible for a lump-sum retirement <br />benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting <br />schedule that increases from 5 years at 40% through 20 years at 100%. <br /> <br /> <br />C. CONTRIBUTIONS <br /> <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 />$118,144 in fire state aid to the plan for the year ended December 31, 2018. Required employer <br />contributions are calculated annually based on statutory provisions. The City’s statutorily-required <br />contributions to the SVF plan for the year ended December 31, 2018 were $0. The City’s contributions <br />were equal to the required contributions as set by state statute, if applicable. In addition, the City made <br />voluntary contributions of $64,869 to the plan. <br /> <br /> <br />73