5.f) Staff Report-Resolution for Firefighter Survivor Benefits A"
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SCANDIA
Staff Renort
Date of Meeting: April 16, 2013
To: City Council
From: Kristina Handt, City Administrator
Re: Resolution for Firefighter Survivor Benefits
Agenda Item#: 5.fl
Background:
In 2010, the City Council approved having Scandia Fire and Rescue Department join the
Statewide Volunteer Firefighter(SVF)Retirement Plan administered by PERA. As of the
beginning of this year, 63 fire departments across the state were members.
The Advisory board made up of representatives from townships, cities and the fire fighting
community is recommending changes to the plan to allow survivor benefits to be paid in those
few cases where a firefighter dies before being in the plan for five years,which is the minimum
amount to be vested. This provision is already a requirement of plans not a part of the Statewide
Volunteer Firefighter Plan, so this change would put the SVF in compliance with relief
association laws.
Issue:
Should the Council approve a resolution supporting benefits for survivors in cases where a
firefighter dies before being vested?
Proposal Details:
Changing the plan provisions to allow survivors to receive benefits in cases where the firefighter
was in the plan for less than five years requires legislative approval and the amending of MN
Stat. 353G.12. The statute would read:Subd. 2. Survivor benefit amount. The amount of the
survivor benefit is the amount of the service pension that would have been payable to the
member of the retirement plan on the date of death if the member had been age SO or older on
that date, without re�ard to whether the member had attained the minimum amount o,t'service
and membership credit required to be vested.
Included in your packet is a resolution prepared by PERA. They are seeking approval from all
63 entities before moving forward with legislation.
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Fiscal Impact:
NA-Per PERA, implementing the change would not add any cost to the plan and would not
affect the calculation of required municipal contributions.
Options:
1) Approve Resolution 04-16-13-01
2) Amend and then Approve Resolution 04-16-13-01
3) Take no action on Resolution 04-16-13-01
Recommendation:
Option 1.
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CITY OF SCANDIA
RESOLUTION NO: 04-16-13-01
RESOLUTION ALLOWING SURVIVOR BENEFITS TO BE PAID IN CASES
WHERE THE FIREFIGHTER DIES BEFORE BECOMING VESTED
WHEREAS, The Scandia Fire and Rescue has joined the Statewide Volunteer Firefighter
Retirement Plan administered by the Public Employees Retirement Association (PERA); and
WHEREAS, The Statewide Plan offers survivor benefits to the families of firefighters who
die after providing at least 5 years of service; and
WHEREAS, The City of Scandia highly values the contributions of volunteer firefighters
and wishes to also provide similar survivor benefits to the families of firefighters who die before
providing 5 years of service; and
WHEREAS, The City of Scandia understands that should this provision be approved and
passed into law, it would not increase required contribution amounts.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that the City ratifies the
addition of a plan provision allowing survivor benefits to be paid to firefighters who die within their
first five years of service, should such provision be passed into law.
Adopted by the Scandia City Council this 16th day of April 2013.
Randall Simonson, Mayor
ATTEST:
Kristina Handt, Administrator/Clerk