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� <br />� <br />� <br />FIRE RELIEF INFORMATION <br />Sandy Peine <br />From: Mayor <br />Sent: Thursday, March 29, 2012 8:42 AM <br />To: Sandy Peine <br />Subject: FIRE RELIEF INFORMATION <br />Facts: <br />1. <br />2. <br />3. <br />4. <br />5. <br />6. <br />7. <br />8. <br />FIRE RELIEF INFORMATION <br />Pequot Lakes Fire Department personnel are employees of the City of Pequot <br />Lakes. They are paid "on call." They receive no city benefits. <br />They are always on duty. <br />They must be fire personnel in good standing for 10 years before qualifying for the <br />Fire Relief funds and cannot collect before age 50. <br />To be in good standing, they must be on active duty with the PLFD. <br />Fire relief funds could be considered a type of deferred compensation. <br />Having a strong Fire Relief pension helps draw good personnel who will remain <br />longer in order to train newer staff and reduce vacancies. <br />The Relief Association is a separate entity from the Fire Department. <br />Monies collected for Fire Relief must be used for Fire Relief. <br />Fire Relief: <br />1. Current State yearly limit for the pension is $7,500. Pequot Lakes is currently at <br />$2,900. <br />2. Approximately $87,420 is needed each year to cover the cost. <br />3. .Ol of the current tax capacity is collected for fre relief in the contracts. This <br />amount has not changed in many years. <br />4. Fire Relief funds go directly into a Special Fund, overseen by the State of <br />Minnesota and have stringent requirements attached. <br />5. Money to cover Fire Relief costs come from: <br />a. Municipal contributions coming from the contracts <br />b. State Fire Aid <br />G� <br />7. <br />c. Investment earnings <br />For 2011-2012, $52,816.61 comes from municipal contributions; $35,500 comes <br />from State Fire Aid; so this year, money needed is covered by these two entities. <br />Should there be a shortage in reaching the required amount, funds would come <br />directly from investment earnings to reach the $87,420 needed to cover the cost. <br />These amounts (in #6) can change depending upon the number of staff. <br />Page 1 of 1 <br />Over the span of 65 plus years, the PLFD Relief Association has remained a leader in the State <br />with its ability to provide a good pension option for those actively involved in the Department. <br />The Relief Association has demonstrated its sustainability through financial responsibility to its <br />members, the State and the City of Pequot Lakes. <br />Fire Relief Association <br />March, 2012 <br />3/29/2012 <br />