Engrossments
Introduction		Posted on 04/25/2023

ARTICLE 1

AUDIT THRESHOLD AND ADMINISTRATIVE CHANGES
FOR RELIEF ASSOCIATIONS

Section 1.

Minnesota Statutes 2022, section 424A.014, subdivision 1, is amended to read:

Subdivision 1.

Financial report and audit.

(a) An annual financial report and audited
financial statements in accordance with paragraphs (c) to (e) must be submitted by the board
of trustees of the Bloomington Fire Department Relief Association and the board of trustees
of each deleted text begin volunteerdeleted text end firefighters relief association with special fund assets of at least deleted text begin $500,000deleted text end
new text begin $750,000 new text end or special fund liabilities of at least deleted text begin $500,000deleted text end new text begin $750,000new text end , according to any previous
year's financial report.

(b) The board of trustees of a deleted text begin volunteerdeleted text end firefighters relief association with special fund
assets of less than deleted text begin $500,000deleted text end new text begin $750,000 new text end and special fund liabilities of less than deleted text begin $500,000deleted text end new text begin
$750,000new text end , according to each previous year's financial report, may submit an annual financial
report and audited financial statements in accordance with paragraphs (c) to (e).

(c) The financial report must cover the relief association's special fund and general fund
and be in the style and form prescribed by the state auditor. The financial report must be
countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is directly associated with a municipal fire
department;

(2) the municipal clerk or clerk-treasurer of the largest municipality in population that
contracts with the independent nonprofit firefighting corporation if the deleted text begin volunteer firefighterdeleted text end
new text begin firefighters new text end relief association is a subsidiary of an independent nonprofit firefighting
corporation, and by the secretary of the independent nonprofit firefighting corporation; or

(3) the chief financial official of the county in which the deleted text begin volunteer firefighterdeleted text end new text begin firefighters
new text end relief association is located or primarily located if the relief association is associated with
a fire department that is not located in or associated with an organized municipality.

(d) The financial report must be retained in the office of the Bloomington Fire Department
Relief Association or the deleted text begin volunteer firefighterdeleted text end new text begin firefighters new text end relief association for public
inspection and must be filed with the governing body of the government subdivision in
which the associated fire department is located after the close of the fiscal year. One copy
of the financial report must be furnished to the state auditor on or before June 30 after the
close of the fiscal year.

(e) Audited financial statements that present the true financial condition of the relief
association's special fund and general fund must be attested to by a certified public accountant
or by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. Audits must be conducted in compliance with generally accepted
auditing standards and section 6.65 governing audit procedures. The state auditor may accept
audited financial statements in lieu of the financial report required in paragraph (a).

new text begin (f) A firefighters relief association with special fund assets of less than $750,000 and
special fund liabilities of less than $750,000 on December 31, 2023, is not required to submit
audited financial statements unless and until the special fund assets or special fund liabilities
exceed $750,000, even if audited financial statements were required on the date immediately
prior to the effective date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 31, 2023, and applies to
audited financial statements for calendar year 2023 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, section 424A.092, subdivision 6, is amended to read:

Subd. 6.

Municipal ratification for bylaws amendments.

(a) The board of trustees of
a relief association may adopt an amendment to the articles of incorporation or bylaws that
increases the coverage, service pensions, or retirement benefits provided by the relief
association only after preparing an estimate of the expected deleted text begin increase in the financial
requirements anddeleted text end new text begin change to new text end the accrued liability new text begin and the overall funding balance of the
special fund new text end resulting from the amendment.

(b) For purposes of this subdivision, deleted text begin "financial requirements"deleted text end new text begin "overall funding balance"
new text end means the amount new text begin of the surplus or deficit new text end calculated under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin
(b)new text end . "Accrued liability" means the amount calculated under subdivision 2 or 2a, as applicable.
"Estimate" means the estimate required in paragraph (a).

(c) If the special fund of a relief association to which this section applies deleted text begin does not have
a surplus overdeleted text end new text begin has a deficit from new text end full funding under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , clause
deleted text begin (5)deleted text end new text begin (3)new text end , and if the municipality deleted text begin is required to provide financial support to the special fund
under this sectiondeleted text end new text begin has a minimum obligation under subdivision 3, paragraph (d)new text end , deleted text begin the board
of trustees of the relief association may adopt andeleted text end new text begin any new text end amendment to the articles of
incorporation or bylaws new text begin adopted by the relief association new text end that increases the coverage, service
pensions, or retirement benefits provided by the relief associationdeleted text begin . The amendmentdeleted text end is not
effective until it is ratified by the governing body of the affiliated municipality or independent
nonprofit firefighting corporation, as applicable. The governing body may ratify such
amendment only if the relief association has delivered to the governing body the estimate
described in paragraphs (a) and (b), certified by an officer of the relief association.

(d) If the special fund of a relief association to which this section applies new text begin is fully funded
or new text end has a surplus over full funding under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , clause deleted text begin (5)deleted text end new text begin (3)new text end , and
if the municipality is not required to provide financial support new text begin under subdivision 3, paragraph
(d), new text end to the special fund under this section, the relief association may adopt an amendment
to the articles of incorporation or bylaws that increases the coverage, service pensions, or
retirement benefits provided by the relief association. deleted text begin (1) Thedeleted text end new text begin Any such adopted new text end amendment
is effective if the municipality ratifies the amendmentdeleted text begin . (2) The amendment is effective
without municipal ratificationdeleted text end new text begin or, in the absence of municipal ratification, new text end if the amendment
satisfies paragraph (e).

(e) An amendment satisfies this paragraph if the estimate described in paragraphs (a)
and (b) demonstrates that the amendment will not cause:

(1) the amount of the resulting increase in the accrued liability of the special fund to
exceed 90 percent of the amount of the surplus over full funding reported in the prior year;
deleted text begin and
deleted text end

(2) deleted text begin the financial requirements of the special fund to exceed the expected amount of the
future fire state aid and police and firefighter retirement supplemental state aid to be received
by the relief association.deleted text end new text begin an increase in the minimum obligation of the municipality for the
upcoming calendar year under subdivision 3, paragraph (d); and
new text end

new text begin (3) the special fund of the relief association to have a deficit from full funding under
subdivision 3, paragraph (c), clause (5), on the day immediately following the adoption of
the amendment.
new text end

(f) If a relief association amends the articles of incorporation or bylaws without municipal
ratification under this subdivision, and, subsequent to the amendment, the deleted text begin financial
requirements of thedeleted text end special fund of the relief association deleted text begin under this section are such so as
to require financial support fromdeleted text end new text begin requires an increase in the minimum obligation of new text end the
municipalitynew text begin under subdivision 3, paragraph (d)new text end , the provision deleted text begin whichdeleted text end new text begin that new text end was implemented
without municipal ratification is no longer effective and any service pensions or retirement
benefits payable after that date may be paid only in accordance with the articles of
incorporation or bylaws as amended with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 424A.093, subdivision 6, is amended to read:

Subd. 6.

Municipal ratification for bylaws amendments.

(a) The board of trustees of
a relief association may adopt an amendment to the articles of incorporation or bylaws that
increases the coverage, service pensions, or retirement benefits provided by the relief
association only after the board of trustees has had an updated actuarial valuation including
the proposed change or an estimate of the expected actuarial impact of the proposed change
prepared by the actuary of the relief association.

(b) If the special fund of a relief association to which this section applies deleted text begin does not have
a surplus overdeleted text end new text begin has a deficit from new text end full funding under subdivision 4, deleted text begin anddeleted text end new text begin or new text end if the municipality
deleted text begin is required to provide financial support to the special funddeleted text end new text begin has a minimum municipal
obligation new text end under deleted text begin this sectiondeleted text end new text begin subdivision 5new text end , the board of trustees of the relief association
may adopt an amendment to the articles of incorporation or bylaws that increases the
coverage, service pensions, or retirement benefits provided by the relief association. The
amendment is not effective until it is ratified by the governing body of the affiliated
municipality or independent nonprofit firefighting corporation, as applicable. The governing
body may ratify such amendment only if the relief association has delivered to the governing
body the actuarial valuation or estimate described in paragraph (a), certified by an officer
of the relief association.

(c) If the special fund of a relief association to which this section applies new text begin is fully funded
or new text end has a surplus over full funding under subdivision 4, and if the municipality deleted text begin isdeleted text end new text begin does new text end not
deleted text begin required to provide financial support to the special funddeleted text end new text begin have a minimum municipal obligation
new text end under deleted text begin this sectiondeleted text end new text begin subdivision 5new text end , the relief association may adopt an amendment to the
articles of incorporation or bylaws that increases the coverage, service pensions, or retirement
benefits provided by the relief association. The amendment is effective:

(1) if the municipality ratifies the amendment; or

(2) without municipal ratification if the amendment satisfies paragraph (d).

(d) An amendment satisfies this paragraph if the actuarial valuation or estimate described
in paragraph (a) demonstrates that the amendment will not cause:

new text begin (3) the special fund of the relief association to have a deficit from full funding under
subdivision 4 on the day immediately following the adoption of the amendment.
new text end

(e) If a relief association amends its articles of incorporation or bylaws without municipal
ratification pursuant to this subdivision, and, subsequent to the amendment, the deleted text begin financial
requirements of thedeleted text end special fund of the relief association deleted text begin under this section are such so as
to requiredeleted text end new text begin requires new text end financial support from the municipalitynew text begin under this sectionnew text end , the provision
which was implemented without municipal ratification is no longer effective and any service
pensions or retirement benefits payable after that date may be paid only in accordance with
the articles of incorporation or bylaws as amended with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 424B.22, subdivision 10, is amended to read:

Subd. 10.

Supplemental benefits.

Within 60 days after the distribution of benefits under
subdivision 8, the municipality or firefighting corporation with which the fire department
is affiliated shall pay supplemental benefits under section 424A.10 to each participant and
survivor who satisfies the requirements of section 424A.10, subdivision 2deleted text begin ,deleted text end new text begin . A supplemental
benefit is payable to each participant who receives a service pensionnew text end if the participant is at
least age 50. new text begin A supplemental benefit is payable to each participant or survivor who receives
a disability benefit or survivor benefit without regard to any minimum age requirement.
new text end The commissioner of revenue shall reimburse the municipality or independent nonprofit
firefighting corporation for all supplemental benefits paid as provided in section 424A.10,
subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for supplemental benefits reimbursed in
calendar year 2024 and thereafter.
new text end

ARTICLE 2

MODIFYING THE DEFINITION OF "FIREFIGHTER";
TECHNICAL AND CONFORMING CHANGES

Section 1.

Minnesota Statutes 2022, section 424A.001, subdivision 4, is amended to read:

Subd. 4.

Relief association.

(a) "Relief association" or "deleted text begin volunteerdeleted text end firefighters relief
association" means a deleted text begin volunteerdeleted text end firefighters relief association deleted text begin or a volunteer firefighters
division or account of a partially salaried and partially volunteer firefighters relief associationdeleted text end
that is:

(1) organized and incorporated as a nonprofit corporation to provide retirement benefits
to volunteer firefighters new text begin and paid on-call firefighters new text end under chapter 317A and any laws of
the state;

(2) governed by this chapter and sections 424A.091 to 424A.095; and

(3) directly associated with:

(i) a fire department established by municipal ordinance;

(ii) an independent nonprofit firefighting corporation that is organized under the
provisions of chapter 317A and that operates primarily for firefighting purposes; or

(iii) a fire department operated as or by a joint powers entity that operates primarily for
firefighting purposes.

(b) "Relief association" or "deleted text begin volunteerdeleted text end firefighters relief association" does not mean:

(1) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter
111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965,
chapter 446, as amended; or

(2) the statewide volunteer firefighter plan governed by chapter 353G.

(c) A relief association or deleted text begin volunteerdeleted text end firefighters relief association is a governmental
entity that receives and manages public money to provide retirement benefits for individuals
providing the governmental services of firefighting and emergency first response.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, section 424A.001, subdivision 5, is amended to read:

Subd. 5.

Special fund.

"Special fund" means the special fund of a deleted text begin volunteerdeleted text end firefighters
relief association deleted text begin or the account for volunteer firefighters within the special fund of a partially
salaried and partially volunteer firefighters relief associationdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 424A.001, subdivision 8, is amended to read:

Subd. 8.

Firefighting service.

"Firefighting servicedeleted text begin ,deleted text end " deleted text begin if the applicable municipality
approves for a fire department that is a municipal department, or if the applicable contracting
municipality or municipalities approve for a fire department that is an independent nonprofit
firefighting corporation, includes fire department service rendereddeleted text end new text begin means duties performed
by firefighters and, if approved by the appropriate municipality or municipalities, duties
performed new text end by fire prevention personnel.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 424A.001, subdivision 9, is amended to read:

Subd. 9.

Separate from active service.

"Separate from active service" means that a
firefighter permanently ceases to perform fire suppression duties with a particular deleted text begin volunteerdeleted text end
fire department, permanently ceases to perform fire prevention duties, permanently ceases
to supervise fire suppression duties, and permanently ceases to supervise fire prevention
duties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 5.

Minnesota Statutes 2022, section 424A.001, subdivision 10, is amended to read:

Subd. 10.

deleted text begin Volunteerdeleted text end Firefighter.

"deleted text begin Volunteerdeleted text end Firefighter" means a person who is deleted text begin a
member of the applicable fire department or the independent nonprofit firefighting
corporationdeleted text end new text begin one or more of the following:
new text end

new text begin (1) "volunteer firefighter" means a firefighter who does not receive compensation per
call or hour for firefighting services but who may receive reimbursement for expenses, who
has a choice of availability in providing services with the fire department, new text end and new text begin who new text end is eligible
for membership in deleted text begin the applicabledeleted text end new text begin a new text end relief association deleted text begin and:deleted text end new text begin associated with the fire department
or participates in the statewide volunteer firefighter plan under chapter 353G;
new text end

deleted text begin (i) is engaged in providing emergency response services or delivering fire education or
prevention services as a member of a fire department;
deleted text end

deleted text begin (ii) is trained in or is qualified to provide fire suppression duties or to provide fire
prevention duties under subdivision 8; and
deleted text end

deleted text begin (iii) meets any other minimum firefighter and service standards established by the fire
department or specified in the articles of incorporation or bylaws of the relief association.
deleted text end

new text begin (2) "paid on-call firefighter" means a firefighter who receives compensation per call or
per hour for firefighting services, who has a choice of availability in providing services with
the fire department, and who is eligible for membership in a relief association associated
with the fire department or participates in the statewide volunteer firefighter plan under
chapter 353G;
new text end

new text begin (3) "part-time firefighter" means a firefighter who receives compensation per call or per
hour for firefighting services, whose services with the fire department are scheduled and
who, as a result of providing firefighting services, is a member or is eligible to be a member
of a fund operated pursuant to chapter 353 other than the statewide volunteer firefighter
plan under chapter 353G; and
new text end

new text begin (4) "full-time firefighter" or "career firefighter" means a firefighter who receives
compensation per hour or through a salary for firefighting services, whose services with
the fire department are scheduled and who, as a result of providing firefighting services, is
a member or is eligible to be a member of a fund operated pursuant to chapter 353 other
than the statewide volunteer firefighter plan under chapter 353G.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 6.

Minnesota Statutes 2022, section 424A.003, is amended to read:

424A.003 CERTIFICATION OF SERVICE CREDIT.

(a) When a municipal fire department, a joint powers fire department, or an independent
nonprofit firefighting corporation is directly associated with the deleted text begin volunteerdeleted text end firefighters relief
association, the fire chief shall certify annually by March 31 the service credit for the
previous calendar year of each volunteer firefighter new text begin and paid on-call firefighter new text end rendering
active service with the fire department.

(b) The certification shall be made to an officer of the relief association's board of trustees
and to the municipal clerk or clerk-treasurer of the largest municipality in population served
by the associated fire department.

(c) The fire chief shall notify each volunteer firefighter new text begin and paid on-call firefighter
new text end rendering active service with the fire department of the amount of service credit rendered
by the firefighter for the previous calendar year. Upon request, the fire chief shall provide
the firefighter with a written explanation and documentation to support the determination
of service credit. The service credit notification and a description of the process and deadlines
for the firefighter to challenge the fire chief's determination of service credit must be provided
to the firefighter at least 21 days prior to its certification to the relief association and
municipality. If the service credit amount is challenged, the fire chief shall accept and
consider any additional pertinent information and shall make a final determination of service
credit.

(d) The service credit certification must be expressed as the number of completed months
of the previous year during which an active volunteer firefighter new text begin or paid on-call firefighter
new text end rendered at least the minimum level of duties as specified and required by the fire department
under the rules, regulations, and policies applicable to the fire department. No more than
one year of service credit may be certified for a calendar year.

(e) If a volunteer firefighter new text begin or paid on-call firefighter new text end who is a member of the relief
association leaves active firefighting service to render active military service that is required
to be governed by the federal Uniformed Services Employment and Reemployment Rights
Act, as amended, the firefighter must be certified as providing service credit for the period
of the military service, up to the applicable limit of the federal Uniformed Services
Employment and Reemployment Rights Act. If the volunteer firefighter new text begin or paid on-call
firefighter new text end does not return from the military service in compliance with the federal Uniformed
Services Employment and Reemployment Rights Act, the service credits applicable to that
military service credit period are forfeited and canceled at the end of the calendar year in
which the time limit set by federal law occurs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 7.

Minnesota Statutes 2022, section 424A.01, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Minorsdeleted text end new text begin Membership eligibilitynew text end .

deleted text begin No volunteerdeleted text end new text begin (a) A firefighter or any
volunteer emergency medical personnel is eligible for membership in a new text end firefighters relief
association deleted text begin associated with adeleted text end new text begin if the firefighter or volunteer emergency medical personnel
satisfies the requirements of paragraph (b) or (c), as applicable, and is not otherwise
prohibited from membership under this chapter.
new text end

new text begin (b) To be eligible for membership in a relief association, a firefighter must be a member
of the fire department and:
new text end

new text begin (1) provide services as a volunteer firefighter or as a paid on-call firefighter, although
the firefighter need not exclusively provide services as either a volunteer firefighter or a
paid on-call firefighter;
new text end

new text begin (2) be engaged in providing emergency response services or delivering fire education
or prevention services as a member of a fire department;
new text end

new text begin (3) be trained in or qualified to provide fire suppression duties or to provide fire
prevention duties; and
new text end

new text begin (4) meet any other minimum firefighter and service standards established by the fire
department or specified in the articles of incorporation or bylaws of the firefighters relief
association.
new text end

new text begin (c) Any volunteer emergency medical personnel is eligible to be a member of the
firefighters relief association and to qualify for a service pension or other benefit coverage
of the relief association on the same basis as fire department personnel who perform or
supervise fire suppression or fire prevention duties if:
new text end

new text begin (1) the fire department employs or otherwise uses the services of the person solely as
volunteer emergency medical personnel to perform emergency medical response duties or
supervise emergency medical response activities;
new text end

new text begin (2) the bylaws of the firefighters relief association authorize the volunteer emergency
medical personnel's eligibility; and
new text end

new text begin (3) the volunteer emergency medical personnel's eligibility is approved by:
new text end

new text begin (i) the new text end municipality, deleted text begin adeleted text end new text begin if the fire department is a municipal department;
new text end

new text begin (ii) thenew text end joint powers deleted text begin entitydeleted text end new text begin boardnew text end , new text begin if the fire department is a joint powers entity; new text end or

new text begin (iii) the contracting municipality or municipalities, if the fire department is new text end an independent
nonprofit firefighting corporation deleted text begin may include as adeleted text end new text begin .
new text end

new text begin (d) Minors are prohibited from membership in a firefightersnew text end relief association deleted text begin member
a minor serving as a volunteer firefighterdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 8.

Minnesota Statutes 2022, section 424A.01, subdivision 2, is amended to read:

Subd. 2.

Status of substitute deleted text begin volunteerdeleted text end firefighters.

No person who is serving as a
substitute deleted text begin volunteerdeleted text end firefighter may be considered to be a firefighter for purposes of chapter
477B or this chapter and no substitute deleted text begin volunteerdeleted text end firefighter is authorized to be a member of
any deleted text begin volunteerdeleted text end firefighters relief association governed by chapter 477B or this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 9.

Minnesota Statutes 2022, section 424A.01, subdivision 5, is amended to read:

Subd. 5.

Fire prevention personnel.

(a) If the applicable municipality or municipalities
approve, the fire department may employ or otherwise utilize the services of persons as
deleted text begin volunteerdeleted text end firefighters to perform fire prevention duties and to supervise fire prevention
activities.

(b) deleted text begin Personneldeleted text end new text begin Volunteer firefighters and paid on-call firefighters new text end serving in fire prevention
positions are eligible to be members of the applicable deleted text begin volunteer firefighterdeleted text end new text begin firefighters new text end relief
association and to qualify for service pension or other benefit coverage of the relief
association on the same basis as fire department personnel who perform fire suppression
duties.

(c) deleted text begin Personneldeleted text end new text begin Volunteer firefighters and paid on-call firefighters new text end serving in fire prevention
positions also are eligible to receive any other benefits under the applicable law or practice
for services on the same basis as personnel who are employed to perform fire suppression
duties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 10.

Minnesota Statutes 2022, section 424A.015, subdivision 1, is amended to read:

Subdivision 1.

Separation from active service; exception.

(a) No service pension is
payable to a person while the person remains an active member of the respective fire
department, and a person who is receiving a service pension is not entitled to receive any
other benefits from the special fund of the relief association.

(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service
pension or disability benefit to a former member of the relief association if that person has
not separated from active service with the fire department to which the relief association is
directly associated, unless:

(1) the person discontinues volunteer firefighter new text begin and paid on-call firefighter new text end duties with
the fire department and performs duties within the fire department on a new text begin part-time or new text end full-time
basis;

(2) the governing body of the municipality, of the independent nonprofit firefighting
corporation, or of the joint powers entity has filed its determination with the board of trustees
of the relief association that the person's experience with and service to the fire department
in that person's new text begin part-time or new text end full-time capacity would be difficult to replace; and

(3) the bylaws of the relief association were amended to provide for the payment of a
service pension or disability benefit for such new text begin part-time or new text end full-time employees.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 11.

Minnesota Statutes 2022, section 424A.015, subdivision 5, is amended to read:

Subd. 5.

Minnesota deferred compensation plan transfers.

A relief association may
directly transfer on an institution-to-institution basis the eligible member's lump-sum pension
amount to the requesting member's account in the Minnesota deferred compensation plan,
if:

(1) the governing articles of incorporation or bylaws so provide;

(2) the deleted text begin volunteerdeleted text end firefighter participates in the Minnesota deferred compensation plan
at the time of retirement; and

(3) the applicable retiring firefighter requests in writing that the relief association do so.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 12.

Minnesota Statutes 2022, section 424A.015, subdivision 7, is amended to read:

Subd. 7.

Combined service pensions.

(a) A member with credit for service as an active
firefighter in more than one deleted text begin volunteerdeleted text end firefighters relief association is entitled to a service
pension from each participating relief association if:

(1) the articles of incorporation or bylaws of the relief associations provide for such
combined service pensions;

(2) the applicable requirements of paragraphs (b) to (e) are met; and

(3) the member otherwise qualifies.

(b) A member receiving a service pension under this subdivision must be at least partially
vested under the bylaws of the first participating relief association on the date on which the
member terminates active service with that relief association. The service pension paid from
the first participating relief association shall be based on the years of active service accrued
in the first relief association and the vesting percentage applicable to those years of active
service.

(c) To receive a service pension from each subsequent relief association, the member
must be at least partially vested under the bylaws of the subsequent relief association, taking
into consideration the member's total service credit accrued in all participating relief
associations to the date the member terminates active service with the subsequent relief
association. The service pension paid from each subsequent relief association shall be based
on the years of active service accrued solely in that relief association and the vesting
percentage applicable to the combined amount of total service credit accrued in all of the
participating relief associations.

(d) The member must have one or more years of service credit in each participating
relief association. The service pension must be based on:

(1) for defined benefit relief associations, the service pension amount in effect for the
relief association on the date on which the member's active deleted text begin volunteerdeleted text end firefighting services
covered by that relief association terminate; and

(2) for defined contribution relief associations, the member's individual account balance
on the date on which the member's active deleted text begin volunteerdeleted text end firefighting services covered by that
relief association terminate.

(e) To receive a service pension under this subdivision, the member must become a
member of the subsequent relief association within two years of the date of termination of
active service with the prior relief association. If requested by the member or a subsequent
relief association, the secretary of each prior relief association must provide written notice
to the member and the subsequent relief association regarding the amount of active service
accrued by the member in the prior relief association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 13.

Minnesota Statutes 2022, section 424A.016, subdivision 2, is amended to read:

Subd. 2.

Defined contribution service pension eligibility.

(a) A relief association,
when its articles of incorporation or bylaws so provide, may pay out of the assets of its
special fund a defined contribution service pension to each of its members who:

(1) separates from active service with the fire department;

(2) reaches age 50;

(3) completes at least five years of active service as an active member of the fire
department to which the relief association is associated;

(4) completes at least five years of active membership with the relief association before
separation from active service; and

(5) complies with any additional conditions as to age, service, and membership that are
prescribed by the bylaws of the relief association.

(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive any disability benefit coverage, is not
entitled to receive additional individual account allocation of fire state aid or municipal
contribution deleted text begin towardsdeleted text end new text begin towardnew text end a service pension, and is considered to have the status of a
person entitled to a deferred service pension.

(c) The service pension earned by a deleted text begin volunteerdeleted text end new text begin firefighter new text end under this chapter and the
articles of incorporation and bylaws of the relief association may be paid whether or not
the municipality or independent nonprofit firefighting corporation to which the relief
association is associated qualifies for the receipt of fire state aid under chapter 477B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 14.

Minnesota Statutes 2022, section 424A.016, subdivision 6, is amended to read:

Subd. 6.

Deferred service pensions.

(a) A "deferred member" means a member of a
relief association who has separated from active service and membership and has completed
the minimum service and membership requirements in subdivision 2. The requirement that
a member separate from active service and membership is waived for persons who have
discontinued their volunteer firefighter new text begin and paid on-call firefighter new text end duties and who are
employed on a new text begin part-time or new text end full-time basis under section 424A.015, subdivision 1.

(b) A deferred member is entitled to receive a deferred service pension when the member
reaches at least age 50, or at least the minimum age specified in the bylaws governing the
relief association if that age is greater than age 50, and makes a valid written application.

(c) A defined contribution relief association must credit interest or additional investment
performance on the deferred lump-sum service pension during the period of deferral for all
deferred members on or after January 1, 2021. A defined contribution relief association
may specify in its bylaws the method by which it will credit interest or additional investment
performance to the accounts of deferred members. Such method shall be limited to one of
the three methods provided in this paragraph. In the event the bylaws do not specify a
method, the interest or additional investment performance must be credited using the method
defined in clause (3). The permissible methods are:

(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;

(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or

(3) at the investment return on the assets of the special fund of the defined contribution
deleted text begin volunteerdeleted text end firefighters relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account through the accounting date
on which the investment return is recognized by and credited to the special fund.

(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw
amendments made in accordance with paragraph (c) on or before January 1, 2022, shall
apply to members already in deferred status as of January 1, 2021.

(e) Unless the bylaws provide differently, the dates that will be used by a relief association
in determining the creditable amount of interest or additional investment performance on
a deferred service pension shall be as follows:

(1) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the date that the member
separates from active service and membership and ending on the accounting date immediately
before the deferred member commences receipt of the deferred service pension; or

(2) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member separates
from active service and membership and ending on the date that the separate investment
vehicle is valued immediately before the date on which the deferred member commences
receipt of the deferred service pension.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 15.

Minnesota Statutes 2022, section 424A.02, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

(a) A defined benefit relief association, when its articles
of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined
benefit service pension to each of its members who: (1) separates from active service with
the fire department; (2) reaches age 50; (3) completes at least five years of active service
as an active member of the fire department to which the relief association is associated; (4)
completes at least five years of active membership with the relief association before
separation from active service; and (5) complies with any additional conditions as to age,
service, and membership that are prescribed by the bylaws of the relief association. A service
pension computed under this section may be prorated monthly for fractional years of service
as the bylaws or articles of incorporation of the relief association so provide. The bylaws
or articles of incorporation may define a "month," but the definition must require a calendar
month to have at least 16 days of active service. If the bylaws or articles of incorporation
do not define a "month," a "month" is a completed calendar month of active service measured
from the member's date of entry to the same date in the subsequent month. The service
pension earned by a deleted text begin volunteerdeleted text end firefighter under this chapter and the articles of incorporation
and bylaws of the deleted text begin volunteerdeleted text end firefighters relief association may be paid whether or not the
municipality or independent nonprofit firefighting corporation to which the relief association
is associated qualifies for the receipt of fire state aid under chapter 477B.

(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive disability benefit coverage, is not entitled
to receive additional service credit deleted text begin towardsdeleted text end new text begin towardnew text end computation of a service pension, and
is considered to have the status of a person entitled to a deferred service pension under
subdivision 7.

(c) No municipality, independent nonprofit firefighting corporation, or joint powers
entity may delegate the power to take final action in setting a service pension or ancillary
benefit amount or level to the board of trustees of the relief association or to approve in
advance a service pension or ancillary benefit amount or level equal to the maximum amount
or level that this chapter would allow rather than a specific dollar amount or level.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 16.

Minnesota Statutes 2022, section 424A.02, subdivision 3, is amended to read:

Subd. 3.

Determining maximum pension benefit.

(a) Except as provided in paragraph
(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in
its bylaws a service pension amount above the following maximum amounts:

(1) for a defined benefit relief association in which the governing bylaws provide for a
monthly service pension, the maximum monthly service pension amount per month for each
year of service credited is the lesser of $100 or the maximum monthly service pension
amount that could be adopted by the relief association as a bylaws amendment that satisfies
section 424A.093, subdivision 6, paragraph (d); and

(2) for a defined benefit relief association in which the governing bylaws provide for a
lump-sum service pension, the maximum lump-sum service pension amount for each year
of service credited is the lesser of $15,000 or the maximum lump-sum service pension
amount that could be adopted by the relief association as a bylaws amendment that satisfies
section 424A.092, subdivision 6, paragraph (e).

(b) A defined benefit relief association may set in its bylaws a service pension amount
that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only
if the service pension amount has been ratified by the municipality.

(1) For a defined benefit relief association that pays a monthly service pension, the
maximum monthly service pension amount per month for each year of service credited is
$100.

(2) For a defined benefit relief association that pays a lump-sum service pension, the
maximum lump-sum service pension amount for each year of service credited is $15,000.

(c) The method of calculating service pensions must be applied uniformly for all years
of active service. Credit must be given for all years of active service, unless the bylaws of
the relief association provide that service credit is not given for:

(1) years of active service in excess of caps on service credit; or

(2) years of active service earned by a former member who:

(i) has ceased duties as a volunteer firefighter new text begin and paid on-call firefighter new text end with the fire
department before becoming vested under subdivision 2; and

(ii) has not resumed active service with the fire department and active membership in
the relief association for a period as defined in the relief association's bylaws, of not less
than five years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 17.

Minnesota Statutes 2022, section 424A.02, subdivision 7, is amended to read:

Subd. 7.

Deferred service pensions.

(a) A member of a defined benefit relief association
is entitled to a deferred service pension if the member separates from active service and
membership and has completed the minimum service and membership requirements in
subdivision 1. The requirement that a member separate from active service and membership
is waived for persons who have discontinued their volunteer firefighter new text begin and paid on-call
firefighter new text end duties and who are employed on a new text begin part-time or new text end full-time basis under section
424A.015, subdivision 1.

(b) The deferred service pension is payable when the former member reaches at least
age 50, or at least the minimum age specified in the bylaws governing the relief association
if that age is greater than age 50, and when the former member makes a valid written
application.

(c) A defined benefit relief association that provides a lump-sum service pension governed
by subdivision 2c may, when its governing bylaws so provide, credit interest on the deferred
lump-sum service pension during the period of deferral. If provided for in the bylaws, interest
must be credited in one of the following manners:

(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or

(3) at an interest rate of up to five percent, compounded annually, as set by the board of
trustees.

(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause
(3), must be ratified by the governing body of the municipality or joint powers entity served
by the fire department to which the relief association is directly associated, or by the
independent nonprofit firefighting corporation, as applicable.

(e) Interest under paragraph (c), clause (3), is credited beginning on the January 1 next
following the date on which the deferred service pension interest rate as set by the board of
trustees was ratified by the governing body of the municipality or joint powers entity served
by the fire department to which the relief association is directly associated, or by the
independent nonprofit firefighting corporation, as applicable.

(f) Unless the bylaws of a relief association that has elected to credit interest or additional
investment performance on deferred lump-sum service pensions under paragraph (c) specifies
a different interest or additional investment performance method, including the interest or
additional investment performance period starting date and ending date, the interest or
additional investment performance on a deferred service pension is creditable as follows:

(1) for a relief association that has elected to credit interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the first day of the month
next following the date on which the member separates from active service and membership
and ending on the last day of the month immediately before the month in which the deferred
member commences receipt of the deferred service pension; or

(g) For a deferred service pension that is transferred to a separate account established
and maintained by the relief association or separate investment vehicle held by the relief
association, the deferred member bears the full investment risk subsequent to transfer and
in calculating the accrued liability of the deleted text begin volunteerdeleted text end firefighters relief association that pays
a lump-sum service pension, the accrued liability for deferred service pensions is equal to
the separate relief association account balance or the fair market value of the separate
investment vehicle held by the relief association.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 18.

Minnesota Statutes 2022, section 424A.02, subdivision 9, is amended to read:

Subd. 9.

Limitation on ancillary benefits.

A defined benefit relief associationdeleted text begin , including
any volunteer firefighters relief association governed by Laws 2013, chapter 111, article 5,
sections 31 to 42, or any volunteer firefighters division of a relief association governed by
chapter 424,deleted text end new text begin and the Bloomington Fire Department Relief Association new text end may only pay ancillary
benefits deleted text begin whichdeleted text end new text begin thatnew text end would constitute an authorized disbursement as specified in section
424A.05 subject to the following requirements or limitations:

(1) with respect to a defined benefit relief association in which governing bylaws provide
solely for a lump-sum service pension to a retiring member, or provide a retiring member
the choice of either a lump-sum service pension or a monthly service pension and the
lump-sum service pension was chosen, no ancillary benefit may be paid to any former
member or paid to any person on behalf of any former member after the former member (i)
terminates active service with the fire department and active membership in the relief
association; and (ii) commences receipt of a service pension as authorized under this section;
and

(2) with respect to any defined benefit relief association, no ancillary benefit paid or
payable to any member, to any former member, or to any person on behalf of any member
or former member, may exceed in amount the total earned service pension of the member
or former member. The total earned service pension must be calculated by multiplying the
service pension amount specified in the bylaws of the relief association at the time of death
or disability, whichever applies, by the years of service credited to the member or former
member. The years of service must be determined as of (i) the date the member or former
member became entitled to the ancillary benefit; or (ii) the date the member or former
member died entitling a survivor or the estate of the member or former member to an
ancillary benefit. The ancillary benefit must be calculated without regard to whether the
member had attained the minimum amount of service and membership credit specified in
the governing bylaws. For active members, the amount of a permanent disability benefit or
a survivor benefit must be equal to the member's total earned service pension except that
the bylaws of a defined benefit relief association may provide for the payment of a survivor
benefit in an amount not to exceed five times the yearly service pension amount specified
in the bylaws on behalf of any member who dies before having performed five years of
active service in the fire department with which the relief association is affiliated. For
deferred members, the amount of a permanent disability benefit or a survivor benefit must
be calculated using the service pension amount in effect on the date specified in section
424A.015, subdivision 6, unless the bylaws of the relief association specify a different
service pension amount to be used for the calculation.

(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation
or bylaws, the benefit must be paid:

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving children and no beneficiary designated.

(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.

(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving spouse, no surviving children, and no beneficiary designated.

(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.

(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
survivor benefit payable to a designated beneficiary, the relief association bylaws may limit
the total survivor benefit amount payable.

(5) For purposes of this section, for a monthly benefit volunteer fire relief association
or for a combination lump-sum and monthly benefit volunteer fire relief association where
a monthly benefit service pension has been elected by or a monthly benefit is payable with
respect to a firefighter, a designated beneficiary must be a natural person. For purposes of
this section, for a lump-sum volunteer fire relief association or for a combination lump-sum
and monthly benefit volunteer fire relief association where a lump-sum service pension has
been elected by or a lump-sum benefit is payable with respect to a firefighter, a trust created
under chapter 501C may be a designated beneficiary. If a trust is payable to the surviving
children organized under chapter 501C as authorized by this section and there is no surviving
spouse, the survivor benefit may be paid to the trust, notwithstanding a requirement of this
section to the contrary.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 19.

Minnesota Statutes 2022, section 424A.021, is amended to read:

424A.021 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED
SERVICE.

Subdivision 1.

Authorization.

Subject to restrictions stated in this section, a volunteer
firefighter new text begin or paid on-call firefighter new text end who is absent from firefighting service due to service
in the uniformed services, as defined in United States Code, title 38, section 4303(13), may
obtain service credit if the relief association is a defined benefit plan or an allocation by the
relief association as though the person was an active member if the relief association is a
defined contribution plan for the period of the uniformed service, not to exceed five years,
unless a longer period is required under United States Code, title 38, section 4312.

Subd. 2.

Limitations.

(a) To be eligible for service credit or an allocation as though an
active member under this section, the deleted text begin volunteerdeleted text end firefighter must return to firefighting service
with coverage by the same relief association or by the successor to that relief association
upon discharge from service in the uniformed service within the time frame required in
United States Code, title 38, section 4312(e).

(b) Service credit or an allocation as though an active member is not authorized if the
firefighter separates from uniformed service with a dishonorable or bad conduct discharge
or under other than honorable conditions.

(c) Service credit or an allocation as though an active member is not authorized if the
firefighter fails to provide notice to the fire department that the individual is leaving to
provide service in the uniformed service, unless it is not feasible to provide that notice due
to the emergency nature of the situation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 20.

Minnesota Statutes 2022, section 424A.094, subdivision 1, is amended to read:

Subdivision 1.

Authorized inclusion in fire state aid program; covered nonprofit
corporations.

(a) This section applies to any independent nonprofit firefighting corporation
incorporated or organized under chapter 317A deleted text begin whichdeleted text end new text begin thatnew text end : (1) operates exclusively for
firefighting purposes; (2) deleted text begin whichdeleted text end new text begin thatnew text end is composed of volunteer new text begin firefighters and paid on-call
new text end firefighters; and (3) deleted text begin whichdeleted text end new text begin thatnew text end has a duly established separate subsidiary incorporated
firefighters relief association deleted text begin whichdeleted text end new text begin thatnew text end provides retirement coverage for or pays a service
pension to a retired firefighter or a retirement benefit to a surviving dependent of either an
active or a retired firefighter, and deleted text begin whichdeleted text end new text begin thatnew text end is subject to the applicable provisions of chapter
424A.

(b) Notwithstanding any law to the contrary, a municipality contracting with an
independent nonprofit firefighting corporation must be included in the distribution of fire
state aid to the appropriate county auditor by the state auditor only if the independent
nonprofit firefighting corporation complies with the provisions of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 21.

Minnesota Statutes 2022, section 424A.095, subdivision 2, is amended to read:

Subd. 2.

Investment report.

(a) Annually, the state auditor must provide an investment
report to each relief association that has complied with the reporting requirements under
section 356.219, subdivisions 1 and 3. The investment report must contain the following
information:

(1) the relief association's average annual rates of return for at least the previous one-,
three-, five-, ten-, 15-, and 20-year periods for which the state auditor has investment
information;

(2) the relief association's asset allocation;

(3) the average annual one-year and ten-year benchmark rates of return;

(4) the average annual one-year and ten-year rates of return for the statewide volunteer
firefighter plan;

(5) the one-year and ten-year average annual rates of return for the State Board of
Investment supplemental investment fund; and

(6) a graphical comparison between:

(i) the relief association's average annual rates of return for the previous year and for
the previous multiyear periods provided under clause (1); and

(ii) the average annual rates of return for the same periods for the supplemental investment
fund's balanced fund or any successor fund.

(b) The state auditor shall select the benchmark rates of return based on the best practice
in the industry.

(c) new text begin An officer of new text end the relief association's board of trustees must certify to the state auditor
that the board reviewed the investment report. The certification must accompany the audited
financial statements or detailed financial statement under section 424A.014, subdivision 1
or 2, whichever applies. A copy of the report must be kept on file by the relief association
and must be available for inspection by any member of the public.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

Minnesota Statutes 2022, section 424A.10, is amended to read:

424A.10 STATE SUPPLEMENTAL BENEFIT; deleted text begin VOLUNTEERdeleted text end FIREFIGHTERS.

Subdivision 1.

Definitions.

For purposes of this section:

(1) "qualified recipient" means a deleted text begin volunteerdeleted text end firefighter who receives a lump-sum
distribution of pension or retirement benefits from a deleted text begin volunteerdeleted text end firefighters relief association
or from the statewide volunteer firefighter plan;

(2) "survivor of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter" means the surviving
spouse of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter or, if none, the surviving child
or children of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter, or, if none, the designated
beneficiary of the deceased active or deferred deleted text begin volunteerdeleted text end firefighter, or, if no beneficiary has
been designated, the estate of the deceased active or deferred deleted text begin volunteerdeleted text end firefighter;

(3) "active deleted text begin volunteerdeleted text end firefighter" means a person who:

(i) regularly renders fire suppression service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
response activities for a fire department;

(ii) has met the statutory and other requirements for relief association membership; and

(iii) is deemed by the relief association under law and its bylaws to be a fully qualified
member of the relief association or from the statewide volunteer firefighter plan for at least
one month;

(4) "deferred deleted text begin volunteerdeleted text end firefighter" means a former active deleted text begin volunteerdeleted text end firefighter who:

(i) terminated active firefighting service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
response activities; and

(ii) has sufficient service credit from the applicable relief association or from the statewide
volunteer firefighter plan to be entitled to a service pension under the bylaws of the relief
association, but has not applied for or has not received the service pension; and

(5) "deleted text begin volunteerdeleted text end firefighter" includes an individual whose services were utilized to perform
or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and
individuals whose services were used to perform emergency medical response duties or
supervise emergency medical response activities if authorized under section 424A.01,
subdivision 5a.

Subd. 2.

Payment of supplemental benefit.

(a) Upon the payment by a deleted text begin volunteerdeleted text end
firefighters relief association or by the statewide volunteer firefighter plan of a lump-sum
distribution to a qualified recipient, the association or retirement plan, as applicable, 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 and the
statewide volunteer firefighter plan must pay the supplemental benefit out of the statewide
volunteer firefighter plan. This benefit is an amount equal to ten percent of the regular
lump-sum distribution that is paid on the basis of the recipient's service as a deleted text begin volunteerdeleted text end
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 deleted text begin volunteerdeleted text end firefighter in that capacity.

(b) Upon the payment by a relief association or the retirement plan of a lump-sum
survivor benefit to a survivor of a deceased active deleted text begin volunteerdeleted text end firefighter or of a deceased
deferred deleted text begin volunteerdeleted text end firefighter, the association or retirement plan, as applicable, must pay a
supplemental survivor benefit to the survivor of the deceased active or deferred deleted text begin volunteerdeleted text end
firefighter from the special fund of the relief association and the retirement plan must pay
a supplemental survivor benefit to the survivor of the deceased active or deferred deleted text begin volunteerdeleted text end
firefighter from the retirement fund if chapter 353G so provides. The amount of the
supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.

(c) For purposes of this section, the term "regular lump-sum distribution" means the
pretax lump-sum distribution excluding any interest that may have been credited during a
deleted text begin volunteerdeleted text end firefighter's period of deferral.

(d) 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 deleted text begin volunteerdeleted text end
firefighter benefit.

(e) If a qualified recipient receives more than one lump-sum distribution, the qualified
recipient is eligible to receive a supplemental benefit or supplemental survivor benefit,
whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall
be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate
limit.

(f) Qualified recipients who elect to receive their lump-sum distribution in installments
under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive
one supplemental benefit calculated on the total lump-sum distribution amount under
paragraph (a) or (b), as applicable.

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 deleted text begin volunteerdeleted text end firefighters relief association or the statewide volunteer firefighter plan
shall 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 by
the relief association to qualified recipients and to survivors of deceased active or deferred
deleted text begin volunteerdeleted text end 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 and shall reimburse the
retirement plan by paying the reimbursement amount to the executive director of the Public
Employees Retirement Association. 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 and when paid to the retirement plan, the reimbursement payment
must be deposited in the retirement fund of the plan.

Subd. 4.

In lieu of income tax exclusion.

(a) The supplemental benefit provided by this
section is in lieu of the state income tax exclusion for lump-sum distributions of retirement
benefits paid to deleted text begin volunteerdeleted text end firefighters.

(b) If the law is modified to exclude or exempt deleted text begin volunteerdeleted text end firefighters' lump-sum
distributions from state income taxation, the supplemental benefits under this section are
no longer payable, beginning with the first calendar year in which the exclusion or exemption
is effective. This subdivision does not apply to exemption of all or part of a lump-sum
distribution under section 290.032 or 290.0802.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 23. new text begin REVISOR INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer firefighters
relief association," "volunteer firefighter relief association," "volunteer firefighters' relief
association," and "volunteer fire relief association" to "firefighters relief association"
wherever the terms appear in statutes. The revisor shall make any necessary grammatical
changes or changes to sentence structure necessary to preserve the meaning of the text as
a result of the changes.
new text end

HF 3286

Bill Text Versions

Current Version - as introduced

ARTICLE 1

AUDIT THRESHOLD AND ADMINISTRATIVE CHANGES FOR RELIEF ASSOCIATIONS

Section 1.

Subdivision 1.

Financial report and audit.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subd. 6.

Municipal ratification for bylaws amendments.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 6.

Municipal ratification for bylaws amendments.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 10.

Supplemental benefits.

new text begin EFFECTIVE DATE. new text end

ARTICLE 2

MODIFYING THE DEFINITION OF "FIREFIGHTER"; TECHNICAL AND CONFORMING CHANGES

Section 1.

Subd. 4.

Relief association.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subd. 5.

Special fund.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 8.

Firefighting service.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 9.

Separate from active service.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 10.

deleted text begin Volunteerdeleted text end Firefighter.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

424A.003 CERTIFICATION OF SERVICE CREDIT.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subdivision 1.

deleted text begin Minorsdeleted text end new text begin Membership eligibilitynew text end .

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 2.

Status of substitute deleted text begin volunteerdeleted text end firefighters.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

Subd. 5.

Fire prevention personnel.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subdivision 1.

Separation from active service; exception.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 5.

Minnesota deferred compensation plan transfers.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 7.

Combined service pensions.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

Subd. 2.

Defined contribution service pension eligibility.

new text begin EFFECTIVE DATE. new text end

Sec. 14.

Subd. 6.

Deferred service pensions.

new text begin EFFECTIVE DATE. new text end

Sec. 15.

Subdivision 1.

AUDIT THRESHOLD AND ADMINISTRATIVE CHANGES
FOR RELIEF ASSOCIATIONS

MODIFYING THE DEFINITION OF "FIREFIGHTER";
TECHNICAL AND CONFORMING CHANGES

424A.021 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED
SERVICE.

Authorized inclusion in fire state aid program; covered nonprofit
corporations.

Sec. 23. new text begin REVISOR INSTRUCTION.
new text end