Fire state aid is derived from a two percent state tax on insurance premiums and is allocated based on the estimated market value of real property in the fire service area and on the population of each fire service area. An additional allocation is given to relief associations with small numbers of active members to maintain a minimum amount of aid. When firefighters are covered by a pension plan, state law generally requires that fire state aid be used for pension purposes. 

Fire relief associations (FRAs) that pay a lump-sum service pension must also pay a lump-sum supplemental benefit to the recipient of the pension. The supplemental benefit is intended to help offset taxes that must be paid by the recipient on the service pension or benefit distribution. Relief associations are eligible to apply for reimbursement from the State of Minnesota for supplemental benefits paid to qualified recipients. 

Fire State Aid Amounts | Police State Aid Amounts | Supplemental Benefit Reimbursement Amounts