HF 41

as introduced - 89th Legislature (2015 - 2016) Posted on 01/08/2015 12:17pm

A bill for an act
relating to retirement; providing for options for the governance and
administration of the Roseville Volunteer Firefighters Relief Association.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin ROSEVILLE VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION; GOVERNANCE AND ADMINISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Retiree board of trustees representation. new text end

new text begin (a) Notwithstanding
any provision of Minnesota Statutes, section 424A.04, subdivision 1, to the contrary
the membership of the board of trustees of the Roseville Volunteer Firefighters Relief
Association (RVFRA) is as provided in paragraph (b), with the additional membership of
the chief of the fire department, one elected Roseville municipal official, and one elected
or appointed Roseville municipal official appointed by the Roseville City Council if:
new text end

new text begin (1) all service pensions and survivor benefits have not been annuitized as provided
under Minnesota Statutes, section 424A.015, subdivision 3; and
new text end

new text begin (2) the RVFRA is administered by a governing board and not by the Public
Employees Retirement Association (PERA) as provided in subdivision 2.
new text end

new text begin (b)(1) Beginning the day following the effective date of this section, the RVFRA
board of trustees shall consist of three active Roseville firefighters elected from the
membership of the RVFRA and three retired members of the RVFRA elected from the
membership of the relief association.
new text end

new text begin (2) Beginning on the January 1 next following the date on which the number of active
Roseville firefighters who are members of the RVFRA totals 25 or less, the RVFRA board of
trustees shall consist of two active firefighters elected from the membership of the RVFRA,
and four retired members of the RVFRA elected from the membership of the RVFRA.
new text end

new text begin (3) Beginning on the January 1 next following the date on which the number of
active Roseville firefighters who are members of the RVFRA totals ten or less, the RVFRA
board of trustees shall consist of one active firefighter elected from the membership of
the RVFRA, and five retired members of the RVFRA elected from the membership of the
RVFRA.
new text end

new text begin (4) Beginning on the January 1 next following the date on which there are no active
Roseville firefighters who are members of the RVFRA, the RVFRA board of trustees shall
consist of six retired members of the RVFRA elected from the membership of the RVFRA.
new text end

new text begin Subd. 2. new text end

new text begin Option for administration by Public Employees Retirement
Association. new text end

new text begin (a) The Roseville Volunteer Firefighters Relief Association (RVFRA), by a
majority vote of its board of trustees and with the approval of the decision by the Roseville
City Council, may transfer the administration of the RVFRA to the board of trustees of
the Public Employees Retirement Association (PERA).
new text end

new text begin (b) If the transfer decision under paragraph (a) is made and approved, on the next
succeeding January 1, the governance and the administration of the RVFRA becomes the
responsibility of the board of trustees and the executive director of PERA. The secretary
of the RVFRA also shall transfer the records of the RVFRA to the executive director of
PERA. The legal title of the assets of the former RVFRA transfer to the State Board of
Investment as of the December 31 preceding the governance and administration transfer,
with the beneficial title to the assets remaining with the annuitants and benefit recipients of
the former RVFRA, and with the assets invested in the volunteer firefighter account in the
Minnesota supplemental investment fund unless the State Board of Investment determines
that investment in another account or in a combination of accounts in the Minnesota
supplemental investment fund is more appropriate. No increase in the service pension or
survivor benefit amount of the former RVFRA may be implemented by PERA without the
approval of the city of Roseville made following the receipt of an actuarial cost estimate
for the change prepared by the approved actuary retained by PERA under Minnesota
Statutes, section 356.214, and prepared under the applicable provisions of Minnesota
Statutes, sections 356.215 and 356.216, and the standards for actuarial work approved by
the Legislative Commission on Pensions and Retirement. The actuary retained by PERA
shall periodically prepare actuarial valuations under Minnesota Statutes, sections 356.215
and 356.216, for the former RVFRA as of December 31 as required by generally accepted
public sector accounting principles. The city of Roseville shall provide the funding
requirements of the former RVFRA disclosed in the most recent actuarial valuation as
certified by the executive director of PERA and the funding of the former RVFRA is
governed by Minnesota Statutes, section 353.27.
new text end

new text begin (c) The necessary and reasonable expenses of PERA to administer the former
RVFRA must be paid from the assets of the former relief association.
new text end

new text begin (d) Upon the transfer under this subdivision, the RVFRA ceases as a Minnesota
nonprofit corporation, and PERA is the successor in interest to the former RVFRA in the
same manner as provided in Minnesota Statutes, section 353G.06, subdivision 3.
new text end

new text begin (e) Copies of the transfer approval documents must be filed with the secretary of
state, the state auditor, and the executive director of PERA. The approval and filing of the
approval documents must be completed before September 1 of the year the transfer occurs.
new text end

new text begin Subd. 3. new text end

new text begin Disposition of remaining assets when obligations are paid. new text end

new text begin Whether
self-administered or administered by PERA, upon the death of the last benefit recipient
and the last potential surviving spouse of the last benefit recipient, the remaining assets of
the RVFRA or the former RVFRA cancel to the city treasury of the city of Roseville.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective the day after
the city council of Roseville and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end