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Lino Lakes, Minnesota Fire Pension Impacts Page 7 This report provides information about how volunteers who work 20 or 30 years as a firefighter serving the community of Lino Lakes will be impacted should they stay with Centennial or transfer to Lino Lakes. The information is painted with a broad brush, but can be more customized by an individual's specific situation using the tools and information gathered for this report. Certain members will benefit financially from transferring while others may benefit financially from staying at Centennial. In addition to the pension earned, other factors such as location, age, incentives offered for training, personal financial situation and desire to live and work in Lino Lakes will be factored in to any individual decision. We are available to help any member considering a transfer, to calculate their estimated pension benefit amount. The report also provides and compares the impact of creating a Statutory Fire Pension or joining the PERA- administered Fire Pension (referred to herein as SVFRP). The PERA option allows the City to amortize the cost over a 10 -year period which lowers the contribution amount significantly. Also, the administrative costs and requirements such as audits, investing and filing of several reports are all taken care of by PERA which makes their plan very appealing. For several reasons, it may be most beneficial to the new and transfer volunteers to create the Statutory Fire Pension this fall funded with incentive pay and ask that both LLFD and CFD convert to the SVFRP on January 1, 2015, with any transferring CFD firefighters joining LLFD January 1, 2016. We thank the Office of the State Auditor and the Minnesota Public Employee Retirement Association for the information shared and guidance provided as well as Al Rolek, Finance Director and John Swenson, Director of Public Safety for the integral role they played in determining assumptions and scenarios and the completion of this report.