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STAFF REPORT <br />DATE: November 18, 2025 <br /> REGULAR <br /> <br />TO: City Council <br />FROM: Dustin Kalis, Fire Chief <br />AGENDA ITEM: Approve Statewide Volunteer Firefighter Plan Benefit Level Increase <br /> REVIEWED BY: Nicole Miller, City Administrator <br /> Dustin Kalis, Fire Chief <br /> Clarissa Hadler, Finance Director <br /> <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☒ Efficient, reliable, innovative services <br />☒ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☐ Resilient Infrastructure <br /> <br />BACKGROUND: <br />The retirement benefit for Lake Elmo paid-on-call (POC) firefighters has been operated by the <br />Statewide Volunteer Firefighter Plan (SVF) since 2024. Annually, Public Employees Retirement <br />Association of Minnesota (PERA) and the SVF provide an Actuarial Valuation Report to the city. <br />Information provided in this report provides information used when seeking a pension benefit level <br />increase. <br /> <br />ISSUE BEFORE COUNCIL: <br />Should the City Council adopt a resolution authorizing the Statewide Volunteer Firefighter Plan <br />Benefit Level Increase to $9,000 per year of service. <br /> <br />PROPOSAL DETAILS/ANALYSIS: <br />The Statewide Volunteer Firefighter Plan is the sole retirement benefit provided to paid-on-call fire <br />department staff. The plan is funded through the department’s pension assets and annual fire state aid <br />contributions from the State of Minnesota. <br /> <br />The proposed change would increase the retirement benefit from $8,000 per year of service to $9,000 <br />per year of service. The current vesting schedule is 5 years (40%) and full vesting at 20 years <br />(100%). <br /> <br />A fire department’s SVF Plan benefit level is the dollar amount corresponding to each year of a <br />volunteer firefighter’s certified service. PERA’s cost analysis is intended to help the city determine <br />whether and the extent to which a benefit level increase is appropriate for their fire department. <br />The city has the authority to approve benefit level increases for the fire department and may elect to <br />do so once per year. A benefit level increase approved in a given year will go into effect on January 1 <br />of the next year. The city cannot elect to decrease the fire department’s benefit level. <br /> <br />FISCAL IMPACT: <br />The 2025 Actuarial Valuation Report (attached) indicated that at our current benefit level of $8,000 <br />per year of service, with the plan currently 147.07% overfunded and requiring no municipal