The Lake Elmo City Council on Dec. 2 approved resolution 2025-077 to raise the benefit level for firefighters vested in the Statewide Volunteer Firefighter (SVF) plan from $8,000 to $9,000 per year of service.

Chief Callas explained the SVF plan is administered by Minnesota PERA and that Lake Elmo entered the plan in January 2024, which eliminated the city's separate relief association for paid-on-call firefighters. He said the city's funding status in PERA's July report stood at about 147 percent and, after a recent large retirement payout (nearly $250,000), the funding level is about 134 percent. Callas said the pension benefit is funded through fire-state aid and PERA-managed investments.

"Our current benefit level stands at $8,000 per year of service and [we are] asking to increase our benefit level to $9,000 per year of service," Chief Callas told the council. He said the $9,000 level places Lake Elmo near the middle of neighboring departments that have adopted increased benefit levels.

Councilmembers discussed the importance of competitive benefits to recruit and retain volunteer firefighters. A councilmember asked whether a 20-year volunteer would receive 20 times the annual amount; Callas confirmed the SVF benefit is a lump-sum payout at age 50 and that 20 years would yield 20 x $9,000 under the model discussed. He also explained vesting: 40 percent at five years, 100 percent at 20 years.

The council moved and seconded resolution 2025-077 and approved the increase by voice vote; the presiding officer announced the motion passed 4-0. Supporters framed the change as necessary to keep the volunteer corps competitive with neighboring departments.

What happens next: Staff will implement the adopted SVF benefit level in accordance with PERA requirements and include the change in the city's pension accounting and budgets.