Laserfiche WebLink
<br />;( <br /> <br />@ <br /> <br />e <br /> <br />e. <br /> <br />f. <br /> <br />\') E:F I.....J e' ~ <br /> <br />j --,', - , j. , , II \.J. '-'_ ~ I . L,,-, <br />t5C'N t: t:-", '7 '''-LArJ <br /> <br />-/ <br /> <br />20 years of selVice) 10 a maximum of $3,000 per year of serVice credit lump Sum <br />(or $60,000 wllh 20 years oC service) or frolll $2.00 per month per year of service <br />credil (or $40 per month with 20 years of service) to a maximum of $30.00 per <br />Olonl h per ye or of selV; ce credit (or $ 600.00 per .monlh with 20 ye ars of selV ice ), <br />although the disparity may not be well correlated with pension adequacy or other <br />related con.siderations. ' <br /> <br />b. <br /> <br />Appropriate Maximum (or Lump Sum Service Pension Relief Alisodaliolts. The <br />current lump sum service pension flexible maximum limits lump Sum volunteer <br />firefighter service pensions to $3.000 per year of service credit. even though some <br />volunteer firefighter relief associations have the current financial capacity 10 . <br />support a higher service pension level and the monthly benefit service pension <br />flexible maximum limits were recently expanded, ID-ld some interested p-arties <br />110VC requested lis expansion..:. , ---.. <br /> <br />Making Servlc~ Pension Incr~Qses Retroactive fQr Prior Servf~. The currenl <br />volunteer firefighter tellef assocJallon law allows. but does not require, service <br />pension Increases 10 be made retroactive (applying to prior service), which <br />practice rewards long service firefJghters and presumably induces them to <br />continue in firefighting service for a longer period than they would otherwise, and <br />some interested parties would like to mandate this practice. <br /> <br />c. <br /> <br />d. <br /> <br />CredIting Service on a Monthly Basili. The current praclice is to credit service on <br />an annual basis for completed years rather than on a monthly basis, and some <br />interested parties se'ek authority for this fractional service crediting. <br /> <br />J.O Year Service Credit M~lmum on Monthly Benefit Relief AssQciations. The <br />current law places a 30 year limit on creditable service for volunteer firefighter <br />relief associations providing monthly benefits. but not for volunteer fiJ efighting <br />relief associations providing lump sum benefits or defined contribution benefits, <br />and this maximum or lack of maximum has been criticized by interested parties. <br /> <br />Making ~ervice Pension Increases J!etroaclive to Include Deferred ~etirees. <br />TIJe current volunteer firefighter relief association law provides that the benefit <br />plan governing a deferred retiree Is the benefit plan In effect when the deferred <br />retiree terminated firellghtlng service. hence excluding the deferred retiree from <br />future service pension increases. but some iJllerested parties seek to change this <br />practice. <br /> <br />4. Funding <br />a. Disparity in Fire ~tate Aid Allocation~. There is a considerable disparity in the <br />amount of fire state aid allocations, from a low or $157 ($9.24 per active <br />firefighter) in Seaforth, Red Wood County, to a high of $177,971($4.340.76 per <br />active firefighter) In Edina, Hennepin County, and this disparity may impede <br />other policies. ' ' <br /> <br />. b. ~=lancc lrilh SlatujolY Financl~1 Rellu/rement. QelerminalillD <br />:-rA,l'. PIo(fedur~. The 1989 Slate Auditor.s Compilation of Annual Financial Report <br />:> -(~ Information provides evidence of substantial noncompliance with the relief <br />'{ <1\>' ~ I .it "".ocla tI on Cinanclal requirements delennlnalion proce.s under lhe 1971 <br /><11. dl!f; W ILk1l~ Volunteer Firefighter Relief AssociaUon Financing Guidelines Acl, Minnesola <br />\c.a"'~eS oIV 'dJ1l'Slalutes, Sections 69.771 ~ 69.775, and Iha. noncompliance aud Ibe slate's.currenl <br />i ~ P(\Q( ~ .-0(0 . enforcement structures may need to be revised. <br />I\'t)t'!~ ~ . <br /> <br />,~. Extent of Munl~lpJl1,COlllr!bl.JtiQ'!s. Approximately 55 percent of all volunteer *-- <br />firefighter reHef associations receive municipal contributions, I allging from $1 <br />(Hackensack) to $134,326 (Lakevllle), with interested parties contending Ihat <br />municipal contributions either should be mandatory or should be prohibited. <br /> <br />d. Funding From Lawful Gambling Pr9ceeds and Other Sources. Records from the <br />Department oC Public Safety indicate that 186 volunteer firefighter relief <br />associations currently have one or more lawful gambling licenses, thereby <br />producing additional revenue for the relief association that may be deposited in <br />the special fund to support Jts pension obligations or may be routed through the <br />muruclpality 10 be rechnrocterfzed as ,municipal contributions. <br /> <br />Page 2 <br /> <br />4Ml291LM <br />