title
PROPOSED RESOLUTION
A RESOLUTION OPTING TO JOIN THE VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN
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The Statewide Volunteer Firefighter (SVF) Pension Plan was created by the MN Legislature in 2010, is administered by PERA and voluntary to join. Currently, the Luverne Relief Association locally administers the plan through Parr McKnight. When a fire department enrolls in the SVF plans, the local relief association no longer administers the plan and the administrative burdens of record keeping, processing benefits, paying out benefits and reporting is transferred to PERA. SVF Plan benefits are funded by the fire department's pension assets, assets of each fire department are maintained separately in the SVF Plan, meaning a particular fire department's assets exclusively fund its firefighters' benefits. Pension assets grow with additions of annual fire state aid, investment earnings and contributions from the governing body. PERA will calculate funding levels of the SVF Plan account annually by August 1, which will determine if the governing body owes a required contribution. Current administrative fees are $60 per firefighter per year, $.03 per $1,000 invested and paid from plan assets. In 2025, PERA's initial incentive plan is $10,000 per plan plus $1,000 per active member until the funds are exhausted.
recommendation
City Administrator Recommendation: City Council Adopt a Resolution Opting to Join the Voluntary Statewide Lump-Sum Volunteer Firefighter Retirement Plan.