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HomeMy WebLinkAbout26-006 Supporting the Dissolution of the Prior Lake Fire Relief Association (PLFRA) 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-006 Adopt a Resolution Supporting the Dissolution of the Prior Lake Fire Relief Association (PLFRA) and Transitioning Firefighter Benefits to the Minnesota Public Employees Retirement Association Coordinated Plan Motion By: Briggs Second By: Braid WHEREAS, the City of Prior Lake has transitioned to a full-time firefighter model to provide a higher level of emergency response services; and WHEREAS, the Prior Lake Relief Association (PLFRA) currently administers retirement benefits for paid-on-call firefighters and the City may be financially responsible for any funding shortfalls; and WHEREAS, WHEREAS, the PLFRA Board has commissioned a termination report to assess financial obligations upon dissolution; and on November 18, 2025, the members of the Prior Lake Fire Relief Association (“PLFRA”) resolved to amend its bylaws to increase the lump-sum retirement benefit "up to $16,150, but not to a sum that would cause the liabilities of the retirement plan to exceed the value of the assets; and WHEREAS, WHEREAS, WHEREAS, WHEREAS, the City recognizes the Minnesota Public Employees Retirement Association (PERA) Coordinated Plan as a financially sustainable and transferable retirement system that aligns with industry standards; and transitioning to PERA on March 1, 2026, will provide a stable, fully funded retirement system for the City’s firefighters and allow for the use of State Fire Aid for firefighter wages and benefits; and the current relief retirement pension plan will terminate on February 28, 2026, facilitating the transition of Prior Lake part-time firefighters to PERA; and current paid-on-call firefighters will transition to regular, part-time City of Prior Lake employees on March 1, 2026. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The lump-sum retirement benefit amendment is approved, provided the amendment does not increase the City’s financial responsibility for the retirement plan. 3. The City of Prior Lake hereby supports the dissolution of the Prior Lake Fire Relief Association (PLFRA) and the transition of firefighter benefits to the Minnesota Public Employees Retirement Association – Coordinated Plan (PERA), effective upon the completion of the PLFRA termination process. 2 Passed and adopted by the Prior Lake City Council this 13th day of January 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager