Tax Aids and Credits

Pension Aids - Fire Aid

Statewide Outcome(s):

Fire Aid supports the following statewide outcome(s).

People in Minnesota are safe.

Context:

For some local governments, pension obligations may account for a significant amount of local expenditures.

Fire Aid was established in 1885 and helps support retirement pensions of local firefighters.

Funding Source: State General Fund, but the amount paid out through fire aid is equal to revenue deposited into the general fund primarily from the fire insurance premiums tax (“fire, lightning, sprinkler leakage and extended coverage premiums”).

Strategies:

The purpose of state fire aid is to subsidize (1) the service pensions paid to retired firefighters, (2) the disability benefits paid to disabled firefighters, and (3) the survivor benefits paid to the surviving spouses and children of deceased firefighters.

Fire aid is the state contribution funding source for non-PERA volunteer and paid-on-call firefighter pension plans.  Municipalities are also required to make a minimum contribution.  An additional amount of fire aid is also allocated from the annual appropriation for amortization aid.

Results:

Fire Aid helps increase affordability of fire service.

Performance Measures Notes:

Compares payable year 2009 (previous) to 2011 (current).