Item 3.10 Declaring Position Eligibility for the Police and Fire PERA Pension Fund
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Fire Fire Chief McCoy June 8, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent Assistant City Administrator/Human Resources Hille 3.10 – PERA Eligibility
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
X Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommend that the City Council adopt a resolution declaring eligibility for PERA.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
In accordance with Minnesota Statute §353.64, a governmental subdivision (the City) must report a public employee for
membership in the Police and Fire Public Employees Retirement Association (PERA) for full-time firefighters meeting
specific criteria.
In lieu of more traditional approaches for part-time firefighters such as a fire relief association pension, City staff is
recommending the City Council declare the Part-Time Firefighter Positions for the Otsego Fire Department be
declared as eligible for PERA. This ability to declare the position eligible is outlined in Minnesota Statute §353.64,
Subdivision 2.
Pending adoption, all full-time and part-time positions of the Otsego Fire Department would be eligible for and
participate in the Police and Fire PERA pension plan. Employees participating in the Plan will contribute 11.8% of
eligible gross pay each paycheck, with the Employer contributing 17.7% of eligible gross pay each paycheck.
The City, beginning in 2028, will be eligible for and receive Fire State Aid, which helps offset the costs of the Employer
contributions to the Plan.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2026-46
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2026-46 declaring eligibility of Part-Time Firefighter positions for the Police and Fire
Public Employees Retirement Association (PERA).
BUDGET INFORMATION
FUNDING: BUDGETED:
General Fund – Fire Department (42200)
Yes
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-46
DECLARING ELIGIBILITY OF PART-TIME FIREFIGHTER POSITIONS
FOR THE
POLICE AND FIRE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)
WHEREAS, the policy of the State of Minnesota as declared in Minnesota Statutes §353.63 is to give special consideration to
employees who perform hazardous work and devote their time and skills to protecting the property and personal safety of
others; and
WHEREAS, Minnesota Statutes Section 353.64 permits the governing body of a governmental subdivision to declare coverage
in the Police & Fire Plan for a non-full-time firefighter who is employed in a fire department, is required by the employing
governmental subdivision to be and is licensed by the Board of Firefighter Training and Education under Minn. Stat. § 299N.05,
and who is engaged in or exposed to hazardous conditions resulting from firefighting or fire prevention, suppression, or
investigation and is assigned less than 50% of the time to perform employment duties in the same department that are not
within the scope of fire service in Minn. Stat. § 353.64, subd. 1.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the City of Otsego of Minnesota hereby declares that the position of Fire-fighter Part-Time, in the Otsego Fire
Department satisfies the requirements of a full-time firefighter other than the requirement of full-time employment,
and is assigned less than 50% of the time to perform employment duties in the same department that are not within
the scope of fire service in Minn. Stat. § 353.64, subd.
2. That the City will provide a copy of this resolution to the Minnesota Public Employees Retirement Association (PERA)
each time it provides Police & Fire membership to a person who is hired to said part-time position and will indicate
the name of the employee eligible for such coverage.
3. That the Otsego City Council hereby requests that the named employee(s) be accepted as a member of the Public
Employees Police and Fire Plan effective the date of this employee(s) initial Police and Fire Plan salary deduction by
the City.
2
ADOPTED by the Otsego City Council this 8th day of June, 2026.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk