Agenda Packets - 2019/05/06 - Laserfiche WebLink

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April 26, 2019 Page 7 2. "Double -Dipping" (Precursor - Any discussion on "Double -Dipping" inevitably included a discussion on the "Two Hatter"issue which in turn brings into discussion the Fair Standards Labor Act (FLSA) of 1938. Definitions can aid in this discussion. "Double Dipping" is widely accepted/considered to mean double pension/double benefits coverage for the same service. Two -Hatter refers to being a full time and volunteer and is forbidden under the International Association of Fire Fighters union constitution. FLSA - Fair Labor Standards Act of 1938 addressing overtime, minimum wage, child labor and others. As the Minnesota fire service continues to evolve into different staffing models, there is understandably ambiguity as to previously established legislation, industry practices, and traditional volunteer recruitment and retention tools. Career firefighters, like police officers, participate in the PERA Police and Fire Plan (PERA P&F Plan)3. It has, however, become the practice (issue emerged with 1989 major reform effort of PERA) of some fire departments and municipalities to allow full-time career staff, including many chief officers, to participate in the PERA P&F Plan and the fire department's "volunteer" fire relief association (Lawful under Chapter 353 Statutes (PERA) and Volunteer Pension 424.A02 Statutes (Voluntee Relief). This has raised questions and concerns by several fire chiefs (myself included), municipal and state officials, as well as elected representatives. (Council would be interested in this list as SBM is one of many departments that lawfully complies and practice allows greater efficiency. A change in the law may result in increased costs.) Regardless of personal opinions on the matter, there is inconsistency and confusion across the state. This is a topic that most certainly warrants a more in-depth discussion among stakeholders (Concur, see above), including legal counsel, and clear clarification/direction to ensure compliance with modern- law, legal precedence, and alignment with the spirit and intent of Minnesota (Administrator 2 Per your April 16, 2019, letter, "We are a charter city with a very restrictive levy cap of 2% plus inflation which is currently insufficient to meet our base salary and benefit needs" 3The General Plan (Coordinated Fund) of PERA has an employee contribution of 6.5% and an employer contribution of 7.5% compared to the PERA P&F Plan of 11.30% for the employee and 16.95% for the employer.