HF 825

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

A bill for an act
relating to retirement; creating a voluntary statewide lump-sum volunteer
firefighter retirement plan; making conforming changes; amending Minnesota
Statutes 2008, sections 11A.17, subdivisions 1, 2; 69.011, subdivisions 1, 2,
4; 69.021, subdivisions 7, 9; 69.031, subdivisions 1, 5; 356.20, subdivision 2;
356.401, subdivision 3; 356.96, subdivision 1; 424A.10, subdivisions 1, 2, 3;
proposing coding for new law as Minnesota Statutes, chapter 353G.

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

Section 1.

Minnesota Statutes 2008, section 11A.17, subdivision 1, is amended to read:

Subdivision 1.

Purpose new text begin ; accounts; continuation new text end .

new text begin (a) new text end The purpose of the
supplemental investment fund is to provide an investment vehicle for the assets of various
public retirement plans and funds.

new text begin (b) new text end The fund consists of deleted text begin seven deleted text end new text begin eight new text end investment accounts: an income share account,
a growth share account, an international share account, a money market account, a fixed
interest account, a bond market account, deleted text begin and deleted text end a common stock index account new text begin , and a
statewide lump-sum volunteer firefighter account new text end .

new text begin (c) new text end The supplemental investment fund is a continuation of the supplemental
retirement fund in existence on January 1, 1980.

Sec. 2.

Minnesota Statutes 2008, section 11A.17, subdivision 2, is amended to read:

Subd. 2.

Assets.

new text begin (a) new text end The assets of the supplemental investment fund deleted text begin shall deleted text end consist
of the money certified and transmitted to the state board from the participating public
retirement plans and funds deleted text begin or deleted text end new text begin , new text end from the board of the Minnesota State Colleges and
Universities under section 136F.45 new text begin , and from the voluntary statewide lump-sum volunteer
firefighter retirement plan under section 353G.08 new text end .

new text begin (b) With the exception of the assets of the voluntary statewide lump-sum volunteer
firefighter retirement fund, new text end the assets must be used to purchase investment shares in
the investment accounts new text begin as new text end specified by the plan or fund. new text begin The assets of the voluntary
statewide lump-sum volunteer firefighter retirement fund must be invested in the statewide
lump-sum volunteer firefighter account.
new text end

new text begin (c) new text end These accounts must be valued at least on a monthly basis but may be valued
more frequently as determined by the State Board of Investment.

Sec. 3.

Minnesota Statutes 2008, section 69.011, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

Unless the language or context clearly indicates that a
different meaning is intended, the following words and terms shall for the purposes of this
chapter and chapters 423, 423A, 424 and 424A have the meanings ascribed to them:

(a) "Commissioner" means the commissioner of revenue.

(b) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) a park district subject to chapter 398;

(4) the University of Minnesota;

(5) for purposes of the fire state aid program only, an American Indian tribal
government entity located within a federally recognized American Indian reservation;

(6) for purposes of the police state aid program only, an American Indian tribal
government with a tribal police department which exercises state arrest powers under
section 626.90, 626.91, 626.92, or 626.93;

(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission with respect to peace officers covered under chapter 422A; and

(8) for purposes of the police state aid program only, the Department of Natural
Resources and the Department of Public Safety with respect to peace officers covered
under chapter 352B.

(c) "Minnesota Firetown Premium Report" means a form prescribed by the
commissioner containing space for reporting by insurers of fire, lightning, sprinkler
leakage and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.

(d) "Firetown" means the area serviced by any municipality having a qualified fire
department or a qualified incorporated fire department having a subsidiary volunteer
firefighters' relief association.

(e) "Market value" means latest available market value of all property in a taxing
jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
taxation obtained from information which appears on abstracts filed with the commissioner
of revenue or equalized by the State Board of Equalization.

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
commissioner for reporting by each fire and casualty insurer of all premiums received
upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
during the preceding calendar year, with reference to insurance written for insuring against
the perils contained in auto insurance coverages as reported in the Minnesota business
schedule of the annual financial statement which each insurer is required to file with
the commissioner in accordance with the governing laws or rules less return premiums
and dividends.

(g) "Peace officer" means any person:

(1) whose primary source of income derived from wages is from direct employment
by a municipality or county as a law enforcement officer on a full-time basis of not less
than 30 hours per week;

(2) who has been employed for a minimum of six months prior to December 31
preceding the date of the current year's certification under subdivision 2, clause (b);

(3) who is sworn to enforce the general criminal laws of the state and local
ordinances;

(4) who is licensed by the Peace Officers Standards and Training Board and is
authorized to arrest with a warrant; and

(5) who is a member of a local police relief association to which section 69.77
applies, the State Patrol retirement plan, the public employees police and fire fund, or the
Minneapolis Employees Retirement Fund.

(h) "Full-time equivalent number of peace officers providing contract service" means
the integral or fractional number of peace officers which would be necessary to provide
the contract service if all peace officers providing service were employed on a full-time
basis as defined by the employing unit and the municipality receiving the contract service.

(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (2) and (3).

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person
who was elected or appointed to the specified position or, in the absence of the person,
another person who is designated by the applicable governing body. In a park district,
the clerk is the secretary of the board of park district commissioners. In the case of the
University of Minnesota, the clerk is that official designated by the Board of Regents.
For the Metropolitan Airports Commission, the clerk is the person designated by the
commission. For the Department of Natural Resources or the Department of Public Safety,
the clerk is the respective commissioner. For a tribal police department which exercises
state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person
designated by the applicable American Indian tribal government.

new text begin (k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
retirement plan established by chapter 353G.
new text end

Sec. 4.

Minnesota Statutes 2008, section 69.011, subdivision 2, is amended to read:

Subd. 2.

Qualification for fire or police state aid.

(a) new text begin Unless retirement coverage
is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, new text end in
order to qualify to receive fire state aid, on or before March 15 annually, in conjunction
with the financial report required pursuant to section 69.051, the clerk of each municipality
having a duly organized fire department as provided in subdivision 4, or the secretary of
each independent nonprofit firefighting corporation having a subsidiary incorporated
firefighters' relief association whichever is applicable, and the fire chief, shall jointly
certify the existence of the municipal fire department or of the independent nonprofit
firefighting corporation, whichever is applicable, which meets the minimum qualification
requirements set forth in this subdivision, and the fire personnel and equipment of the
municipal fire department or the independent nonprofit firefighting corporation as of the
preceding December 31.

new text begin (b) Where retirement coverage is provided by the voluntary statewide lump-sum
volunteer firefighter retirement plan, the executive director of the Public Employees
Retirement Association shall certify the existence of that coverage for each municipality
and the municipal clerk or independent nonprofit firefighting corporation secretary,
whichever applies, and the applicable fire chief shall certify the fire personnel and fire
department equipment as of the preceding December 31.
new text end

new text begin (c) new text end Certification deleted text begin shall deleted text end new text begin must new text end be made to the commissioner on a form prescribed
by the commissioner and shall include any other facts the commissioner may require.
The certification deleted text begin shall deleted text end new text begin must new text end be made to the commissioner in duplicate. Each copy of the
certificate deleted text begin shall deleted text end new text begin must new text end be duly executed and new text begin is new text end deemed new text begin to be new text end an original. The commissioner
shall forward one copy to the auditor of the county wherein the fire department is located
and new text begin shall new text end retain one copy.

deleted text begin (b) deleted text end new text begin (d) new text end On or before March 15 annually the clerk of each municipality having a duly
organized police department and having a duly incorporated relief association shall certify
that fact to the county auditor of the county where the police department is located and to
the commissioner on a form prescribed by the commissioner together with the other facts
the commissioner or auditor may require.

new text begin (e) new text end Except as provided in subdivision 2b, on or before March 15 annually, the clerk
of each municipality and the auditor of each county employing one or more peace officers
as defined in subdivision 1, clause (g), shall certify the number of such peace officers to
the commissioner on forms prescribed by the commissioner. Credit for officers employed
less than a full year deleted text begin shall deleted text end new text begin must new text end be apportioned. Each full month of employment of a
qualifying officer during the calendar year deleted text begin shall entitle deleted text end new text begin entitles new text end the employing municipality
or county to credit for 1/12 of the payment for employment of a peace officer for the entire
year. For purposes of sections 69.011 to 69.051, employment of a peace officer deleted text begin shall
commence deleted text end new text begin commences new text end when the peace officer is entered on the payroll of the respective
municipal police department or county sheriff's department. No peace officer deleted text begin shall deleted text end new text begin may new text end be
included in the certification of the number of peace officers by more than one municipality
or county for the same month.

Sec. 5.

Minnesota Statutes 2008, section 69.011, subdivision 4, is amended to read:

Subd. 4.

Qualification for state aid.

Any municipality in this state having for more
than one year an organized fire department and officially established by the governing
body of the municipality or an independent nonprofit fire fighting corporation created
under the nonprofit corporation act of this state and operating exclusively for fire fighting
purposes and providing retirement and relief benefits to its members deleted text begin or deleted text end new text begin , new text end having a separate
subsidiary incorporated firefighter's relief and pension association providing retirement and
relief benefits new text begin , or participating in the voluntary statewide lump-sum volunteer firefighter
retirement plan, new text end may qualify to receive state aid if it meets the following minimum
requirements or equivalent as determined by the state fire marshal by July 1, 1972:

(a) ten paid or volunteer firefighters including a fire chief and assistant fire chief, and

(b) regular scheduled meetings and frequent drills including instructions in fire
fighting tactics and in the use, care, and operation of all fire apparatus and equipment, and

(c) a motorized fire truck equipped with a motorized pump, 250 gallon or larger
water tank, 300 feet of one inch or larger fire hose in two lines with combination spray
and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry
chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
axes, lanterns, fire coats, helmets, boots, and

(d) apparatus suitably housed in a building of good construction with facilities for
care of hose and equipment, and

(e) a reliable and adequate method of receiving fire alarms by telephone or with
electric siren and suitable means of sounding an alarm, and

(f) if response is to be provided outside the corporate limits of the municipality
wherein the fire department is located, the municipality has another piece of motorized
apparatus to make the response, and

(g) other requirements the commissioner establishes by rule.

Sec. 6.

Minnesota Statutes 2008, section 69.021, subdivision 7, is amended to read:

Subd. 7.

Apportionment of fire state aid to municipalities and relief associations.

(a) The commissioner shall apportion the fire state aid relative to the premiums reported
on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
and/or firefighters relief association.

(b) The commissioner shall calculate an initial fire state aid allocation amount for
each municipality or fire department under paragraph (c) and a minimum fire state aid
allocation amount for each municipality or fire department under paragraph (d). The
municipality or fire department must receive the larger fire state aid amount.

(c) The initial fire state aid allocation amount is the amount available for
apportionment as fire state aid under subdivision 5, without inclusion of any additional
funding amount to support a minimum fire state aid amount under section 423A.02,
subdivision 3, allocated one-half in proportion to the population as shown in the last
official statewide federal census for each fire town and one-half in proportion to the market
value of each fire town, including (1) the market value of tax exempt property and (2) the
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14, but excluding the market value of minerals. In the case of incorporated or
municipal fire departments furnishing fire protection to other cities, towns, or townships
as evidenced by valid fire service contracts filed with the commissioner, the distribution
must be adjusted proportionately to take into consideration the crossover fire protection
service. Necessary adjustments deleted text begin shall deleted text end new text begin must new text end be made to subsequent apportionments. In
the case of municipalities or independent fire departments qualifying for the aid, the
commissioner shall calculate the state aid for the municipality or relief association on the
basis of the population and the market value of the area furnished fire protection service
by the fire department as evidenced by duly executed and valid fire service agreements
filed with the commissioner. If one or more fire departments are furnishing contracted
fire service to a city, town, or township, only the population and market value of the
area served by each fire department may be considered in calculating the state aid and
the fire departments furnishing service shall enter into an agreement apportioning among
themselves the percent of the population and the market value of each service area. The
agreement must be in writing and must be filed with the commissioner.

(d) The minimum fire state aid allocation amount is the amount in addition to the
initial fire state allocation amount that is derived from any additional funding amount
to support a minimum fire state aid amount under section 423A.02, subdivision 3, and
allocated to municipalities with volunteer firefighters relief associations new text begin or covered by the
voluntary statewide lump-sum volunteer firefighter retirement plan new text end based on the number
of active volunteer firefighters who are members of the relief association as reported
in the annual financial reporting for the calendar year 1993 to the Office of the State
Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
fire departments with volunteer firefighters relief associations receive in total at least a
minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
30 firefighters. If a relief association is established after calendar year 1993 and before
calendar year 2000, the number of active volunteer firefighters who are members of the
relief association as reported in the annual financial reporting for calendar year 1998
to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
shall be used in this determination. If a relief association is established after calendar
year 1999, the number of active volunteer firefighters who are members of the relief
association as reported in the first annual financial reporting submitted to the Office of
the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
determination. new text begin If a relief association is terminated as a result of providing retirement
coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
of the municipality covered by the statewide plan as certified by the executive director of
the Public Employees Retirement Association to the commissioner and the state auditor,
but not to exceed 30 active firefighters, must be used in this determination.
new text end

(e) new text begin Unless the firefighters of the applicable fire department are members of the
voluntary statewide lump-sum volunteer firefighter retirement plan, new text end the fire state aid must
be paid to the treasurer of the municipality where the fire department is located and the
treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
the aid to the relief association if the relief association has filed a financial report with the
treasurer of the municipality and has met all other statutory provisions pertaining to the
aid apportionment. new text begin If the firefighters of the applicable fire department are members of
the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
must be paid to the executive director of the Public Employees Retirement Association
and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
new text end

(f) The commissioner may make rules to permit the administration of the provisions
of this section.

(g) Any adjustments needed to correct prior misallocations must be made to
subsequent apportionments.

Sec. 7.

Minnesota Statutes 2008, section 69.021, subdivision 9, is amended to read:

Subd. 9.

Appeal.

In the event that deleted text begin any deleted text end new text begin a new text end municipality, new text begin a new text end county, new text begin a new text end fire relief
association, deleted text begin or deleted text end new text begin a new text end police relief association new text begin , or the voluntary statewide lump-sum volunteer
firefighter retirement plan, new text end feels itself to be aggrieved, it may request the commissioner to
review and adjust the apportionment of funds within the county in the case of police state
aid, or within the state in the case of fire state aid. The decision of the commissioner is
subject to appeal, review, and adjustment by the district court in the county in which the
applicable new text begin municipality, new text end fire new text begin department, new text end or police department is located.

Sec. 8.

Minnesota Statutes 2008, section 69.031, subdivision 1, is amended to read:

Subdivision 1.

Commissioner of finance's warrant.

new text begin (a) new text end The commissioner of
finance shall issue to new text begin the Public Employees Retirement Association on behalf of a
municipality or independent nonprofit firefighting corporation that is a member of the
voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G or
to new text end the county, municipality, or independent nonprofit firefighting corporation certified to
the commissioner of finance by the commissioner a warrant for an amount equal to the
amount of fire state aid or police state aid, whichever applies, certified for the applicable
state aid recipient by the commissioner under section 69.021.

new text begin (b) new text end The amount of state aid due and not paid by October 1 accrues interest at the rate
of one percent for each month or part of a month the amount remains unpaid, beginning
the preceding July 1.

Sec. 9.

Minnesota Statutes 2008, section 69.031, subdivision 5, is amended to read:

Subd. 5.

Deposit of state aid.

(a) new text begin If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G, the executive director shall credit the
fire state aid against future municipal contribution requirements under section 353G.08
and shall notify the municipality or independent nonprofit firefighting corporation of
the fire state aid so credited at least annually. If the municipality or the independent
nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum
volunteer firefighter retirement plan, new text end the municipal treasurer shall, within 30 days after
receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters'
relief association if there is one organized and the association has filed a financial report
with the municipality. If the relief association has not filed a financial report with the
municipality, the municipal treasurer shall delay transmission of the fire state aid to
the relief association until the complete financial report is filed. If new text begin the municipality or
independent nonprofit firefighting corporation is not covered by the voluntary statewide
lump-sum volunteer firefighter retirement plan, if new text end there is no relief association organized,
or if the association has dissolved deleted text begin , deleted text end or has been removed as trustees of state aid, then the
treasurer of the municipality shall deposit the money in the municipal treasury as provided
for in section 424A.08 and the money may be disbursed only for the purposes and in the
manner set forth in that section.

(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the
police state aid in the following manner:

(1) For a municipality in which a local police relief association exists and all peace
officers are members of the association, the total state aid must be transmitted to the
treasurer of the relief association within 30 days of the date of receipt, and the treasurer
of the relief association shall immediately deposit the total state aid in the special fund
of the relief association;

(2) For a municipality in which police retirement coverage is provided by the public
employees police and fire fund and all peace officers are members of the fund, including
municipalities covered by section 353.665, the total state aid must be applied toward the
municipality's employer contribution to the public employees police and fire fund under
sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or

(3) For a municipality other than a city of the first class with a population of more
than 300,000 in which both a police relief association exists and police retirement
coverage is provided in part by the public employees police and fire fund, the municipality
may elect at its option to transmit the total state aid to the treasurer of the relief association
as provided in clause (1), to use the total state aid to apply toward the municipality's
employer contribution to the public employees police and fire fund subject to all the
provisions set forth in clause (2), or to allot the total state aid proportionately to be
transmitted to the police relief association as provided in this subdivision and to apply
toward the municipality's employer contribution to the public employees police and fire
fund subject to the provisions of clause (2) on the basis of the respective number of active
full-time peace officers, as defined in section 69.011, subdivision 1, clause (g).

For a city of the first class with a population of more than 300,000, in addition, the
city may elect to allot the appropriate portion of the total police state aid to apply toward
the employer contribution of the city to the public employees police and fire fund based
on the covered salary of police officers covered by the fund each payroll period and to
transmit the balance to the police relief association; or

(4) For a municipality in which police retirement coverage is provided in part by
the public employees police and fire fund and in part by a local police consolidation
account governed by chapter 353A and established before March 2, 1999, for which the
municipality declined merger under section 353.665, subdivision 1, or established after
March 1, 1999, the total police state aid must be applied towards the municipality's total
employer contribution to the public employees police and fire fund and to the local police
consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5.

(c) The county treasurer, upon receipt of the police state aid for the county, shall
apply the total state aid toward the county's employer contribution to the public employees
police and fire fund under section 353.65, subdivision 3.

(d) The designated Metropolitan Airports Commission official, upon receipt of the
police state aid for the Metropolitan Airports Commission, shall apply the total police
state aid first toward the commission's employer contribution for police officers to the
Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if
there is any amount of police state aid remaining, shall apply that remainder toward the
commission's employer contribution for police officers to the public employees police and
fire plan under section 353.65, subdivision 3.

(e) The police state aid apportioned to the Departments of Public Safety and Natural
Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of
finance for transfer to the funds and accounts from which the salaries of peace officers
certified under section 69.011, subdivision 2a, are paid. The commissioner of revenue
shall certify to the commissioners of public safety, natural resources, and finance the
amounts to be transferred from the appropriation for police state aid. The commissioners
of public safety and natural resources shall certify to the commissioner of finance the
amounts to be credited to each of the funds and accounts from which the peace officers
employed by their respective departments are paid. Each commissioner must allocate the
police state aid first for employer contributions for employees funded from the general
fund and then for employer contributions for employees funded from other funds. For
peace officers whose salaries are paid from the general fund, the amounts transferred from
the appropriation for police state aid must be canceled to the general fund.

Sec. 10.

new text begin [353G.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the words or terms defined
in this section have the meanings given to them unless the context of the word or term
clearly indicates otherwise.
new text end

new text begin Subd. 2. new text end

new text begin Advisory board. new text end

new text begin "Advisory board" means the board established by section
353G.03.
new text end

new text begin Subd. 3. new text end

new text begin Board. new text end

new text begin "Board" means the board of trustees of the Public Employees
Retirement Association operating under section 353.03.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner of finance. new text end

new text begin "Commissioner of finance" means the state
official appointed and qualified under section 16A.01.
new text end

new text begin Subd. 5. new text end

new text begin Executive director; director. new text end

new text begin "Executive director" or "director" means
the person appointed under section 353.03, subdivision 3a.
new text end

new text begin Subd. 6. new text end

new text begin Fund. new text end

new text begin "Fund" means the voluntary statewide lump-sum volunteer
firefighter retirement fund established under section 353G.02, subdivision 3.
new text end

new text begin Subd. 7. new text end

new text begin Good time service credit. new text end

new text begin "Good time service credit" means the length of
service credit for an active firefighter that is reported by the applicable fire chief based
on the minimum firefighter activity standards of the fire department. The credit may be
recognized on an annual or monthly basis.
new text end

new text begin Subd. 8. new text end

new text begin Member. new text end

new text begin "Member" means a volunteer firefighter who provides active
service to a municipal fire department or an independent nonprofit firefighting corporation
where the applicable municipality or corporation has elected coverage by the retirement
plan under section 353G.05, and which service is covered by the retirement plan.
new text end

new text begin Subd. 9. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a governmental entity specified in
section 69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5).
new text end

new text begin Subd. 10. new text end

new text begin Plan. new text end

new text begin "Plan" means the retirement plan established by this chapter.
new text end

new text begin Subd. 11. new text end

new text begin Retirement fund. new text end

new text begin "Retirement fund" means the voluntary statewide
lump-sum volunteer firefighter retirement fund established under section 353G.02,
subdivision 3.
new text end

new text begin Subd. 12. new text end

new text begin Retirement plan. new text end

new text begin "Retirement plan" means the retirement plan
established by this chapter.
new text end

new text begin Subd. 13. new text end

new text begin Standards for actuarial work. new text end

new text begin "Standards for actuarial work" means
the standards adopted by the Legislative Commission on Pensions and Retirement under
section 3.85, subdivision 10.
new text end

new text begin Subd. 14. new text end

new text begin State Board of Investment. new text end

new text begin "State Board of Investment" means the
board created by article XI, section 8, of the Minnesota Constitution and governed by
chapter 11A.
new text end

new text begin Subd. 15. new text end

new text begin Volunteer firefighter. new text end

new text begin "Volunteer firefighter" means a person who is
an active member of a municipal fire department or independent nonprofit firefighting
corporation and who, in that capacity, engages in fire suppression activities, provides
emergency response services, or delivers fire education or prevention services on an
on-call basis.
new text end

Sec. 11.

new text begin [353G.02] PLAN AND FUND CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Retirement plan. new text end

new text begin The voluntary statewide lump-sum volunteer
firefighter retirement plan is created.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin The policy-making, management, and administrative
functions related to the voluntary statewide lump-sum volunteer firefighter retirement
plan and fund are vested in the board of trustees and the executive director of the Public
Employees Retirement Association. Their duties, authority, and responsibilities are as
provided in section 353.03. Fiduciary activities of the plan and fund must be undertaken
in a manner consistent with chapter 356A.
new text end

new text begin Subd. 3. new text end

new text begin Retirement fund. new text end

new text begin (a) The voluntary statewide lump-sum volunteer
firefighter retirement fund is created. The fund contains the assets attributable to the
voluntary statewide lump-sum volunteer firefighter retirement plan.
new text end

new text begin (b) The State Board of Investment shall invest those portions of the retirement
fund not required for immediate purposes in the voluntary statewide lump-sum volunteer
firefighter retirement plan in the statewide lump-sum volunteer firefighter account of the
Minnesota supplemental investment fund under section 11A.17.
new text end

new text begin (c) The commissioner of finance is the ex officio treasurer of the voluntary statewide
lump-sum volunteer firefighter retirement fund. The commissioner of finance's general
bond to the state covers all liability for actions taken as the treasurer of the retirement fund.
new text end

new text begin (d) The revenues of the retirement plan beyond investment returns are governed by
section 353G.08 and must be deposited in the retirement fund. The disbursements of the
retirement plan are governed by section 353G.08. The commissioner of finance shall
transmit a detailed statement showing all credits to and disbursements from the retirement
fund to the executive director monthly.
new text end

new text begin Subd. 4. new text end

new text begin Audit; actuarial valuation. new text end

new text begin (a) The legislative auditor shall periodically
audit the voluntary statewide lump-sum volunteer firefighter retirement fund.
new text end

new text begin (b) An actuarial valuation of the voluntary statewide lump-sum volunteer firefighter
retirement plan may be performed periodically as determined to be appropriate or useful
by the board. An actuarial valuation must be performed by the approved actuary retained
under section 356.214 and must conform with section 356.215 and the standards for
actuarial work. An actuarial valuation must contain sufficient detail for each participating
employing entity to ascertain the actuarial condition of its account in the fund and the
contribution requirement towards its account.
new text end

new text begin Subd. 5. new text end

new text begin Legal advisor; attorney general. new text end

new text begin (a) The legal advisor of the board
and the executive director with respect to the voluntary statewide lump-sum volunteer
firefighter retirement plan is the attorney general.
new text end

new text begin (b) The board may sue, petition, be sued, or be petitioned under this chapter with
respect to the plan or the fund in the name of the board.
new text end

new text begin (c) The attorney general must represent the board in all actions by the board or
against the board with respect to the plan or the fund.
new text end

new text begin (d) Venue of all actions related to the plan or fund is in the court for the first judicial
district unless the action is an appeal to the Court of Appeals under section 356.96.
new text end

Sec. 12.

new text begin [353G.03] VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER
FIREFIGHTER RETIREMENT PLAN ADVISORY BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A Voluntary Statewide Lump-Sum Volunteer
Firefighter Retirement Plan Advisory Board is created.
new text end

new text begin Subd. 2. new text end

new text begin Function; purpose. new text end

new text begin The advisory board must provide advice to the board
of trustees of the Public Employees Retirement Association about the retirement coverage
needs of volunteer firefighters who are members of the plan and about the legislative and
administrative changes that would assist the retirement plan in accommodating volunteer
firefighters who are not members of the plan.
new text end

new text begin Subd. 3. new text end

new text begin Composition. new text end

new text begin (a) The advisory board consists of seven members.
new text end

new text begin (b) The advisory board members are:
new text end

new text begin (1) one representative of Minnesota townships, appointed by the Minnesota
Association of Townships;
new text end

new text begin (2) two representatives of Minnesota cities, appointed by the League of Minnesota
Cities;
new text end

new text begin (3) one representative of Minnesota fire chiefs, who is a fire chief, appointed by the
Minnesota State Fire Chiefs Association;
new text end

new text begin (4) two representatives of Minnesota volunteer firefighters, who are active volunteer
firefighters, appointed by the Minnesota State Fire Departments Association; and
new text end

new text begin (5) one representative of the Office of the State Auditor, designated by the state
auditor.
new text end

new text begin Subd. 4. new text end

new text begin Term. new text end

new text begin (a) The initial terms on the advisory board for the Minnesota
townships representative and the Minnesota fire chiefs representative are one year. The
initial terms on the advisory board for one of the Minnesota cities representatives and one
of the Minnesota active volunteer firefighter representatives are two years. The initial
terms on the advisory board for the other Minnesota cities representative and the other
Minnesota active volunteer firefighter representative are three years. The term for the
Office of the State Auditor representative is determined by the state auditor.
new text end

new text begin (b) Subsequent terms on the advisory board other than the Office of the State
Auditor representative are three years.
new text end

new text begin Subd. 5. new text end

new text begin Compensation of advisory board. new text end

new text begin The compensation of members of the
advisory board other than the Office of the State Auditor representative is governed by
section 15.0575, subdivision 3.
new text end

Sec. 13.

new text begin [353G.04] INFORMATION FROM MUNICIPALITIES AND FIRE
DEPARTMENTS.
new text end

new text begin The chief executive officers of municipalities and fire departments with volunteer
firefighters covered by the voluntary lump-sum volunteer firefighter retirement plan shall
provide all relevant information and records requested by the board, the executive director,
and the State Board of Investment as required to perform their duties.
new text end

Sec. 14.

new text begin [353G.05] PLAN COVERAGE ELECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Coverage. new text end

new text begin Any municipality or independent nonprofit firefighting
corporation may elect to have its volunteer firefighters covered by the retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Election of coverage. new text end

new text begin (a) The process for electing coverage of volunteer
firefighters by the retirement plan is initiated by a request to the executive director for a
cost analysis of the prospective retirement coverage.
new text end

new text begin (b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
association governed by chapter 424A, the cost analysis of the prospective retirement
coverage must be requested jointly by the secretary of the volunteer firefighters' relief
association, following approval of the request by the board of the volunteer firefighters'
relief association, and the chief administrative officer of the entity associated with the
relief association, following approval of the request by the governing body of the entity
associated with the relief association. If the relief association is associated with more than
one entity, the chief administrative officer of each associated entity must execute the
request. If the volunteer firefighters are not currently covered by a volunteer firefighters'
relief association, the cost analysis of the prospective retirement coverage must be
requested by the chief administrative officer of the entity operating the fire department.
The request must be made in writing and must be made on a form prescribed by the
executive director.
new text end

new text begin (c) The cost analysis of the prospective retirement coverage by the statewide
retirement plan must be based on the service pension amount under section 353G.11
closest to the service pension amount provided by the volunteer firefighters' relief
association, if there is one, or to the lowest service pension amount under section 353G.11
if there is no volunteer firefighters' relief association, rounded up, and any other service
pension amount designated by the requester or requesters. The cost analysis must be
prepared using a mathematical procedure certified as accurate by an approved actuary
retained by the Public Employees Retirement Association.
new text end

new text begin (d) If a cost analysis is requested and a volunteer firefighters' relief association exists
that has filed the information required under section 69.051 in a timely fashion, upon
request by the executive director, the state auditor shall provide the most recent data
available on the financial condition of the volunteer firefighters' relief association, the most
recent firefighter demographic data available, and a copy of the current relief association
bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
exists, the chief administrative officer of the entity operating the fire department shall
provide the demographic information on the firefighters serving as members of the fire
department requested by the executive director.
new text end

new text begin (e) If a cost analysis is requested, the executive director of the State Board of
Investment shall review the investment portfolio of the relief association, if applicable,
for compliance with the applicable provisions of chapter 11A and for appropriateness
for retention under the established investment objectives and investment policies of the
State Board of Investment. If the prospective retirement coverage change is approved
under paragraph (f), the State Board of Investment may require that the relief association
liquidate any investment security or other asset which the executive director of the State
Board of Investment has determined to be an ineligible or inappropriate investment for
retention by the State Board of Investment. The security or asset liquidation must occur
before the effective date of the transfer of retirement plan coverage. If requested to do
so by the chief administrative officer of the relief association, the executive director of
the State Board of Investment shall provide advice about the best means to conduct the
liquidation.
new text end

new text begin (f) Upon receipt of the cost analysis, the governing body of the municipality or
independent nonprofit firefighting corporation associated with the fire department must
approve or disapprove the retirement coverage change within 90 days. If the retirement
coverage change is not acted upon within 90 days, it is deemed to be disapproved. If the
retirement coverage change is approved by the applicable governing body, coverage by
the voluntary statewide lump-sum volunteer firefighter retirement plan is effective on the
next following January 1.
new text end

Sec. 15.

new text begin [353G.06] DISESTABLISHMENT OF PRIOR VOLUNTEER
FIREFIGHTERS' RELIEF ASSOCIATION SPECIAL FUND UPON
RETIREMENT COVERAGE CHANGE.
new text end

new text begin Subdivision 1. new text end

new text begin Special fund disestablishment. new text end

new text begin (a) On the date immediately prior
to the effective date of the coverage change, the special fund of the applicable volunteer
firefighters' relief association, if one exists, ceases to exist as a pension fund of the
association and legal title to the assets of the special fund transfers to the State Board of
Investment, with the beneficial title to the assets of the special fund remaining in the
applicable volunteer firefighters.
new text end

new text begin (b) If the market value of the special fund of the volunteer firefighters' relief
association for which retirement coverage changed under this chapter declines in the
interval between the date of the most recent financial report or statement, and the special
fund disestablishment date, the applicable municipality shall transfer an additional amount
to the State Board of Investment equal to that decline. If more than one municipality is
responsible for the direct management of the fire department, the municipalities shall
allocate the additional transfer amount among the various applicable municipalities
one-half in proportion to the population of each municipality and one-half in proportion
to the market value of each municipality.
new text end

new text begin Subd. 2. new text end

new text begin Other relief association changes. new text end

new text begin In addition to the transfer and
disestablishment of the special fund under subdivision 1, notwithstanding any provisions
of chapter 424A or 424B to the contrary, upon the effective date of the change in volunteer
firefighter retirement coverage, if the relief association membership elects to retain the
relief association after the benefit coverage election, the following changes must be
implemented with respect to the applicable volunteer firefighters' relief association:
new text end

new text begin (1) the relief association board of trustees membership is five, comprised of the fire
chief of the fire department and four trustees elected by and from the relief association
membership;
new text end

new text begin (2) the relief association may only maintain a general fund, which continues to
be governed by section 424A.06;
new text end

new text begin (3) the relief association is not authorized to receive the proceeds of any state aid or
to receive any municipal funds; and
new text end

new text begin (4) the relief association may not pay any service pension or benefit that was not
authorized as a general fund disbursement under the articles of incorporation or bylaws of
the relief association in effect prior to the plan coverage election process.
new text end

new text begin Subd. 3. new text end

new text begin Successor in interest. new text end

new text begin Upon the disestablishment of the special fund of
the volunteer firefighters' relief association under this section, the voluntary statewide
lump-sum volunteer firefighter retirement plan is the successor in interest of the special
fund of the volunteer firefighters' relief association for all claims against the special fund
other than a claim against the special fund, the volunteer firefighters' relief association,
the municipality, the fire department, or any person connected with the volunteer
firefighters' relief association in a fiduciary capacity under chapter 356A or common law
that was based on any act or acts which were not performed in good faith and which
constituted a breach of a fiduciary obligation. As the successor in interest of the special
fund of the volunteer firefighters' relief association, the voluntary statewide lump-sum
volunteer firefighter retirement plan may assert any applicable defense in any judicial
proceeding which the board of trustees of the volunteer firefighters' relief association or
the municipality would have been entitled to assert.
new text end

Sec. 16.

new text begin [353G.07] CERTIFICATION OF GOOD TIME SERVICE CREDIT.
new text end

new text begin (a) Annually, by March 31, the fire chief of the fire department with firefighters who
are active members of the retirement plan shall certify to the executive director the good
time service credit for the previous calendar year of each firefighter rendering active
service with the fire department.
new text end

new text begin (b) The fire chief shall provide to each firefighter rendering active service with
the fire department notification of the amount of good time service credit rendered by
the firefighter for the calendar year. The good time service credit notification must be
provided to the firefighter 60 days before its certification to the executive director of the
Public Employees Retirement Association, along with an indication of the process for the
firefighter to challenge the fire chief's determination of good time service credit. If the
good time service credit amount is challenged in a timely fashion, the fire chief shall hold
a hearing on the challenge, accept and consider any additional pertinent information,
and make a final determination of good time service credit. The final determination of
good time service credit by the fire chief is not reviewable by the executive director of
the Public Employees Retirement Association or the board of trustees of the Public
Employees Retirement Association.
new text end

new text begin (c) The good time service credit certification is an official public document. If a
false good time service credit certification is filed or if false information regarding good
time service credits is provided, section 353.19 applies.
new text end

new text begin (d) The good time service credit certification must be expressed as a percentage of a
full year of service during which an active firefighter rendered at least the minimum level
and quantity of fire suppression, emergency response, fire prevention, or fire education
duties required by the fire department under the rules and regulations applicable to the
fire department. No more than one year of good time service credit may be certified
for a calendar year.
new text end

new text begin (e) If a firefighter covered by the retirement plan leaves active firefighting service
to render active military service that is required to be covered by the federal Uniformed
Services Employment and Reemployment Rights Act, as amended, the person must be
certified as providing a full year of good time service credit in each year of the military
service, up to the applicable limit of the federal Uniformed Services Employment and
Reemployment Rights Act. If the firefighter does not return from the military service in
compliance with the federal Uniformed Services Employment and Reemployment Rights
Act, the good time service credits applicable to that military service credit period are
forfeited and cancel at the end of the calendar year in which the federal law time limit
occurs.
new text end

Sec. 17.

new text begin [353G.08] RETIREMENT PLAN FUNDING; DISBURSEMENTS.
new text end

new text begin (a) Annually, the executive director shall determine the funding requirements of
each account in the voluntary statewide lump-sum volunteer firefighter retirement plan on
or before August 1. The funding requirements must be determined using a mathematical
procedure developed and certified as accurate by an approved actuary retained by the
Public Employees Retirement Association and based on present value factors using a six
percent interest rate, without any decrement assumptions.
new text end

new text begin (b) The annual financial requirements of the account of the retirement plan is the
sum of the following:
new text end

new text begin (1) the annual accruing liability of the account, expressed as a dollar amount and
determined under the developed mathematical liability procedure as the difference
between the total accrued liability of the account calculated based on the most recent
good time service credit amounts and the total accrued liability of the account calculated
based on the most recent good time service credit amounts plus one additional year of
good time service credit for each member;
new text end

new text begin (2) the administrative expense of the retirement plan, expressed as a dollar amount
and determined as the portion of the most recent total administrative expense of the
retirement plan that equals the proportion that the account's active membership bears to
the retirement plan's total active membership multiplied by the factor 1.035; and
new text end

new text begin (3) the amortization requirement, if the account has an unfunded actuarial accrued
liability, determined as one-tenth of the calculated unfunded actuarial accrued liability.
new text end

new text begin (c) The required contribution of the entity or entities associated with the fire
department whose active firefighters are covered by the retirement plan is the annual
financial requirements of the account of the retirement plan reduced by the fire state aid
amount attributable to the entity or entities received by the retirement plan. The required
contribution must be allocated between the entities if more than one entity is involved.
The entity shall include the required contribution in its final budget. If the entity does not
pay the full amount of the required contribution, the executive director shall collect the
unpaid amount under section 353.28, subdivision 6.
new text end

new text begin (d) The assets of the retirement fund may only be disbursed for:
new text end

new text begin (1) the administrative expenses of the retirement plan;
new text end

new text begin (2) the investment expenses of the retirement fund;
new text end

new text begin (3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or
353G.15; and
new text end

new text begin (4) the survivor benefits payable under section 353G.12.
new text end

Sec. 18.

new text begin [353G.09] RETIREMENT BENEFIT ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Entitlement. new text end

new text begin Except as provided in subdivision 3, an active member
of the retirement plan is entitled to a lump-sum service pension from the retirement plan
if the person:
new text end

new text begin (1) has separated from active service with the fire department for at least 30 days;
new text end

new text begin (2) has attained the age of at least 50 years;
new text end

new text begin (3) has completed at least five years of good time service credit as a member of
the retirement plan; and
new text end

new text begin (4) applies in a manner prescribed by the executive director for the service pension.
new text end

new text begin Subd. 2. new text end

new text begin Vesting schedule; nonforfeitable portion of service pension. new text end

new text begin If an
active member has completed less than 20 years of good time service credit, the person's
entitlement is to the nonforfeitable percentage of the applicable service pension amount,
as follows:
new text end

	new text begin Completed years of good time service credit new text end		new text begin Nonforfeitable percentage of the service pension new text end
		new text begin 5 new text end		new text begin 40 percent new text end
		new text begin 6 new text end		new text begin 44 percent new text end
		new text begin 7 new text end		new text begin 48 percent new text end
		new text begin 8 new text end		new text begin 52 percent new text end
		new text begin 9 new text end		new text begin 56 percent new text end
		new text begin 10 new text end		new text begin 60 percent new text end
		new text begin 11 new text end		new text begin 64 percent new text end
		new text begin 12 new text end		new text begin 68 percent new text end
		new text begin 13 new text end		new text begin 72 percent new text end
		new text begin 14 new text end		new text begin 76 percent new text end
		new text begin 15 new text end		new text begin 80 percent new text end
		new text begin 16 new text end		new text begin 84 percent new text end
		new text begin 17 new text end		new text begin 88 percent new text end
		new text begin 18 new text end		new text begin 92 percent new text end
		new text begin 19 new text end		new text begin 96 percent new text end
		new text begin 20 and thereafter new text end		new text begin 100 percent new text end

new text begin Subd. 3. new text end

new text begin Alternative pension eligibility and computation. new text end

new text begin (a) An active member
of the retirement plan is entitled to an alternative lump-sum service pension from the
retirement plan if the person:
new text end

new text begin (1) has separated from active service with the fire department for at least 30 days;
new text end

new text begin (2) has attained the age of at least 50 years or the age for receipt of a service pension
under the benefit plan of the applicable former volunteer firefighters' relief association
as of the date immediately prior to the election of the retirement coverage change,
whichever is later;
new text end

new text begin (3) has completed at least five years of active service with the fire department and at
least five years in total as a member of the applicable former volunteer firefighters' relief
association or of the retirement plan, but has not rendered at least five years of good time
service credit as a member of the retirement plan; and
new text end

new text begin (4) applies in a manner prescribed by the executive director for the service pension.
new text end

new text begin (b) The alternative lump-sum service pension is the service pension amount specified
in the bylaws of the applicable former volunteer firefighters' relief association as of the
date immediately prior to the election of the retirement coverage change multiplied by
the total number of years of service as a member of that volunteer firefighters' relief
association or of the retirement plan.
new text end

Sec. 19.

new text begin [353G.10] DEFERRED SERVICE PENSION AMOUNT.
new text end

new text begin A person who was an active member of a fire department covered by the retirement
plan who has separated from active firefighting service for at least 30 days and who has
completed at least five years of good time service credit, but has not attained the age of
50 years, is entitled to a deferred service pension on or after attaining the age of 50 years
and applying in a manner specified by the executive director for the service pension. The
service pension payable is the nonforfeitable percentage of the service pension under
section 353G.09, subdivision 2, and is payable without any interest over the period of
deferral.
new text end

Sec. 20.

new text begin [353G.11] SERVICE PENSION LEVELS.
new text end

new text begin Subdivision 1. new text end

new text begin Levels. new text end

new text begin The retirement plan provides the following levels of service
pension amounts to be selected at the election of coverage, or, if fully funded, thereafter:
new text end

	new text begin Level A new text end	new text begin $500 per year of good time service credit new text end
	new text begin Level B new text end	new text begin $750 per year of good time service credit new text end
	new text begin Level C new text end	new text begin $1,000 per year of good time service credit new text end
	new text begin Level D new text end	new text begin $1,500 per year of good time service credit new text end
	new text begin Level E new text end	new text begin $2,000 per year of good time service credit new text end
	new text begin Level F new text end	new text begin $2,500 per year of good time service credit new text end
	new text begin Level G new text end	new text begin $3,000 per year of good time service credit new text end
	new text begin Level H new text end	new text begin $3,500 per year of good time service credit new text end
	new text begin Level I new text end	new text begin $4,000 per year of good time service credit new text end
	new text begin Level J new text end	new text begin $4,500 per year of good time service credit new text end
	new text begin Level K new text end	new text begin $5,000 per year of good time service credit new text end
	new text begin Level L new text end	new text begin $5,500 per year of good time service credit new text end
	new text begin Level M new text end	new text begin $6,000 per year of good time service credit new text end
	new text begin Level N new text end	new text begin $6,500 per year of good time service credit new text end
	new text begin Level O new text end	new text begin $7,000 per year of good time service credit new text end
	new text begin Level P new text end	new text begin $7,500 per year of good time service credit new text end

new text begin Subd. 2. new text end

new text begin Level selection. new text end

new text begin At the time of the election to transfer retirement coverage,
or on April 30 thereafter, the governing body or bodies of the entity or entities operating
the fire department whose firefighters are covered by the retirement plan may request
a cost estimate from the executive director of an increase in the service pension level
applicable to the active firefighters of the fire department. Within 90 days of the receipt of
the cost estimate prepared by the executive director using a procedure certified as accurate
by the approved actuary retained by the Public Employees Retirement Association, the
governing body or bodies may approve the service pension level change, effective for the
following calendar year.
new text end

new text begin Subd. 3. new text end

new text begin Supplemental benefit. new text end

new text begin The retirement plan also shall pay a supplemental
benefit as provided for in section 424A.10.
new text end

new text begin Subd. 4. new text end

new text begin Ancillary benefits. new text end

new text begin No disability, death, funeral, or other ancillary benefit
beyond a service pension or a survivor benefit is payable from the retirement plan.
new text end

Sec. 21.

new text begin [353G.12] SURVIVOR BENEFIT.
new text end

new text begin Subdivision 1. new text end

new text begin Entitlement. new text end

new text begin (a) A survivor of a deceased active member of the
retirement plan or a deceased deferred member of the retirement plan, upon application as
prescribed by the executive director, is entitled to receive a survivor benefit.
new text end

new text begin (b) A survivor is the spouse of the member, or if none, the minor child or children of
the member, or if none, the estate of the member.
new text end

new text begin Subd. 2. new text end

new text begin Survivor benefit amount. new text end

new text begin The amount of the survivor benefit is the
amount of the service pension that would have been payable to the member of the
retirement plan on the date of death if the member had been age 50 or older on that date.
new text end

Sec. 22.

new text begin [353G.13] PORTABILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin An active firefighter who is a member of the retirement
plan who also renders firefighting service and has good time service credit in the retirement
plan from another fire department, if the good time service credit in the plan from a
combination of periods totals at least five years, is eligible, upon complying with the other
requirements of section 353G.09, to receive a service pension upon filing an application in
the manner prescribed by the executive director, computed as provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Combined service pension computation. new text end

new text begin The service pension payable to
a firefighter who qualifies under subdivision 1 is the per year of good time service credit
service pension amount in effect for each account in which the firefighter has good time
service credit as of the date on which the firefighter terminated active service with the fire
department associated with the applicable account, multiplied by the number of years of
good time service credit that the firefighter has in the applicable account.
new text end

new text begin Subd. 3. new text end

new text begin Payment. new text end

new text begin A service pension under this section must be paid in a single
payment, with the applicable portion of the total service pension payment amount
deducted from each account.
new text end

Sec. 23.

new text begin [353G.14] PURCHASE OF ANNUITY CONTRACTS.
new text end

new text begin The executive director may purchase an annuity contract on behalf of a retiring
firefighter with a total premium payment in an amount equal to the lump-sum service
pension payable under section 353G.09 if the purchase was requested by the retiring
firefighter in a manner prescribed by the executive director. The annuity contract must
be purchased from an insurance carrier that is licensed to do business in this state. If
purchased, the annuity contract is in lieu of any service pension or other benefit from the
retirement plan. The annuity contract may be purchased at any time after the volunteer
firefighter discontinues active service, but the annuity contract must stipulate that no
annuity amounts are payable before the former volunteer firefighter attains the age of 50.
new text end

Sec. 24.

new text begin [353G.15] INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.
new text end

new text begin Upon receipt of a determination that the retirement plan is a qualified pension plan
under section 401(a) of the Internal Revenue Code, as amended, the executive director,
upon request, shall transfer the service pension amount under sections 353G.08 and
353G.11 of a former volunteer firefighter who has terminated active firefighting services
covered by the plan and who has attained the age of at least 50 years to the person's
individual retirement account under section 408(a) of the Internal Revenue Code, as
amended. The transfer request must be in a manner prescribed by the executive director
and must be filed by the former volunteer firefighter who has sufficient service credit to be
entitled to a service pension or, following the death of a participating active firefighter,
must be filed by the deceased firefighter's surviving spouse.
new text end

Sec. 25.

new text begin [353G.16] EXEMPTION FROM PROCESS.
new text end

new text begin The provisions of section 356.401 apply to the retirement plan.
new text end

Sec. 26.

Minnesota Statutes 2008, section 356.20, subdivision 2, is amended to read:

Subd. 2.

Covered public pension plans and funds.

This section applies to the
following public pension plans:

(1) the general state employees retirement plan of the Minnesota State Retirement
System;

(2) the general employees retirement plan of the Public Employees Retirement
Association;

(3) the Teachers Retirement Association;

(4) the State Patrol retirement plan;

(5) the St. Paul Teachers Retirement Fund Association;

(6) the Duluth Teachers Retirement Fund Association;

(7) the Minneapolis Employees Retirement Fund;

(8) the University of Minnesota faculty retirement plan;

(9) the University of Minnesota faculty supplemental retirement plan;

(10) the judges retirement fund;

(11) a police or firefighter's relief association specified or described in section 69.77,
subdivision 1a;

(12) a volunteer firefighter relief association governed by section 69.771, subdivision
1;

(13) the public employees police and fire plan of the Public Employees Retirement
Association;

(14) the correctional state employees retirement plan of the Minnesota State
Retirement System; deleted text begin and
deleted text end

(15) the local government correctional service retirement plan of the Public
Employees Retirement Association new text begin ; and
new text end

new text begin (16) the voluntary statewide lump-sum volunteer firefighter retirement plan new text end .

Sec. 27.

Minnesota Statutes 2008, section 356.401, subdivision 3, is amended to read:

Subd. 3.

Covered retirement plans.

The provisions of this section apply to the
following retirement plans:

(1) the legislators retirement plan, established by chapter 3A;

(2) the general state employees retirement plan of the Minnesota State Retirement
System, established by chapter 352;

(3) the correctional state employees retirement plan of the Minnesota State
Retirement System, established by chapter 352;

(4) the State Patrol retirement plan, established by chapter 352B;

(5) the elective state officers retirement plan, established by chapter 352C;

(6) the unclassified state employees retirement program, established by chapter
352D;

(7) the general employees retirement plan of the Public Employees Retirement
Association, established by chapter 353;

(8) the public employees police and fire plan of the Public Employees Retirement
Association, established by chapter 353;

(9) the public employees defined contribution plan, established by chapter 353D;

(10) the local government correctional service retirement plan of the Public
Employees Retirement Association, established by chapter 353E;

(11) new text begin the voluntary statewide lump-sum volunteer firefighter retirement plan,
established by chapter 353G;
new text end

new text begin (12) new text end the Teachers Retirement Association, established by chapter 354;

deleted text begin (12) deleted text end new text begin (13) new text end the Duluth Teachers Retirement Fund Association, established by chapter
354A;

deleted text begin (13) the Minneapolis Teachers Retirement Fund Association, established by chapter
354A;
deleted text end

(14) the St. Paul Teachers Retirement Fund Association, established by chapter
354A;

(15) the individual retirement account plan, established by chapter 354B;

(16) the higher education supplemental retirement plan, established by chapter 354C;

(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;

(18) the Minneapolis Police Relief Association, established by chapter 423B;

(19) the Minneapolis Firefighters Relief Association, established by chapter 423C;
and

(20) the judges retirement fund, established by chapter 490.

Sec. 28.

Minnesota Statutes 2008, section 356.96, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) Unless the language or context clearly indicates that
a different meaning is intended, for the purpose of this section, the terms in paragraphs
(b) to (e) have the meanings given them.

(b) "Chief administrative officer" means the executive director of a covered pension
plan or the executive director's designee or representative.

(c) "Covered pension plan" means a plan enumerated in section 356.20,
subdivision 2, clauses (1) to (4), (10), and (13) to deleted text begin (15) deleted text end new text begin (16) new text end , but does not mean the
deferred compensation plan administered under sections 352.965 and 352.97 or to the
postretirement health care savings plan administered under section 352.98.

(d) "Governing board" means the Board of Trustees of the Public Employees
Retirement Association, the Board of Trustees of the Teachers Retirement Association, or
the Board of Directors of the Minnesota State Retirement System.

(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in
a covered pension plan or a beneficiary of a participant, or an individual who has applied
to be a participant or who is or may be a survivor of a participant, or a state agency or
other governmental unit that employs active participants in a covered pension plan.

Sec. 29.

Minnesota Statutes 2008, section 424A.10, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section:

(1) "qualified recipient" means an individual who receives a lump-sum distribution
of pension or retirement benefits from a firefighters' relief association new text begin or from the
voluntary statewide lump-sum volunteer firefighter retirement plan new text end for service that the
individual has performed as a volunteer firefighter;

(2) "survivor of a deceased active or deferred volunteer firefighter" means the legally
married spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or
minor children of a deceased volunteer firefighter;

(3) "active volunteer firefighter" means a person who regularly renders fire
suppression service for a municipal fire department or an independent nonprofit firefighting
corporation, who has met the statutory and other requirements for relief association
membership, and who has been a fully qualified member of the relief association new text begin or from
the voluntary statewide lump-sum volunteer firefighter retirement plan new text end for at least one
month; and

(4) "deferred volunteer firefighter" means a former active volunteer firefighter who
terminated active firefighting service, has sufficient service credit from the applicable
relief association new text begin or from the voluntary statewide lump-sum volunteer firefighter
retirement plan new text end to be entitled to a service pension, but has not applied for or has not
received the service pension.

Sec. 30.

Minnesota Statutes 2008, section 424A.10, subdivision 2, is amended to read:

Subd. 2.

Payment of supplemental benefit.

(a) Upon the payment by a
firefighters' relief association new text begin or by the voluntary statewide lump-sum volunteer firefighter
retirement plan new text end of a lump-sum distribution to a qualified recipient, the association must
pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
contrary, the relief association must pay the supplemental benefit out of its special fund new text begin
and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
retirement plan new text end . The amount of this benefit equals ten percent of the regular lump-sum
distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
volunteer firefighter in that capacity.

(b) Upon the payment by a relief association new text begin or the retirement plan new text end of a lump-sum
survivor benefit or funeral benefit to a survivor of a deceased active volunteer firefighter
or of a deceased deferred volunteer firefighter, the association may pay a supplemental
survivor benefit to the survivor of the deceased active or deferred volunteer firefighter
from the special fund of the relief association if its articles of incorporation or bylaws so
provide new text begin and the retirement plan may pay a supplemental survivor benefit to the survivor of
the deceased active or deferred volunteer firefighter from the retirement fund if chapter
353G so provides new text end . The amount of the supplemental survivor benefit is 20 percent of the
survivor benefit or funeral benefit, but not to exceed $2,000.

(c) An individual may receive a supplemental benefit under paragraph (a) or under
paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
firefighter benefit.

Sec. 31.

Minnesota Statutes 2008, section 424A.10, subdivision 3, is amended to read:

Subd. 3.

State reimbursement.

(a) Each year, to be eligible for state reimbursement
of the amount of supplemental benefits paid under subdivision 2 during the preceding
calendar year, the relief association new text begin or the voluntary statewide lump-sum volunteer
firefighter retirement plan new text end must apply to the commissioner of revenue by February 15.
By March 15, the commissioner shall reimburse the relief association for the amount of
the supplemental benefits paid to qualified recipients and to survivors of deceased active
or deferred volunteer firefighters.

(b) The commissioner of revenue shall prescribe the form of and supporting
information that must be supplied as part of the application for state reimbursement.
The commissioner of revenue shall reimburse the relief association by paying the
reimbursement amount to the treasurer of the municipality where the association is
located new text begin and shall reimburse the retirement plan by paying the reimbursement amount to
the executive director of the Public Employees Retirement Association new text end . Within 30 days
after receipt, the municipal treasurer shall transmit the state reimbursement to the treasurer
of the association if the association has filed a financial report with the municipality. If
the relief association has not filed a financial report with the municipality, the municipal
treasurer shall delay transmission of the reimbursement payment to the association until
the complete financial report is filed. If the association has dissolved or has been removed
as a trustee of state aid, the treasurer shall deposit the money in a special account in the
municipal treasury, and the money may be disbursed only for the purposes and in the
manner provided in section 424A.08. When paid to the association, the reimbursement
payment must be deposited in the special fund of the relief association new text begin and when paid to
the retirement plan, the reimbursement payment must be deposited in the retirement
fund of the plan new text end .

(c) A sum sufficient to make the payments is appropriated from the general fund
to the commissioner of revenue.

Sec. 32. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 31 are effective August 1, 2009.
new text end