1.1                          A bill for an act 
  1.2             relating to retirement; city of Willmar and city of 
  1.3             Litchfield; authorizing volunteer rescue squad relief 
  1.4             associations; providing service pensions for rescue 
  1.5             squad volunteers; proposing coding for new law as 
  1.6             Minnesota Statutes, chapter 425B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [425B.01] [DEFINITIONS.] 
  1.9      Subdivision 1.  [TERMS DEFINED.] As used in this chapter, 
  1.10  the terms defined in this section have the meanings given. 
  1.11     Subd. 2.  [RESCUE SQUAD.] "Rescue squad" includes a 
  1.12  municipal rescue squad and independent nonprofit rescue squad 
  1.13  corporation that performs emergency management services (EMS).  
  1.14  Rescue squad does not include any rescue squad that is 
  1.15  affiliated with a fire department or ambulance service and whose 
  1.16  members are eligible for membership in that fire department's or 
  1.17  ambulance's relief association or comparable pension plan. 
  1.18     Subd. 3.  [MUNICIPALITY.] "Municipality" means the city of 
  1.19  Willmar in Kandiyohi county or the city of Litchfield in Meeker 
  1.20  county. 
  1.21     Sec. 2.  [425B.02] [VOLUNTEER RESCUE SQUAD RELIEF 
  1.22  ASSOCIATION; AUTHORIZATION.] 
  1.23     Notwithstanding any provision of section 356.24 or 356.25 
  1.24  to the contrary, the governing body of a municipality is 
  1.25  authorized to establish a rescue squad relief association as 
  1.26  provided in this chapter. 
  2.1      Sec. 3.  [425B.03] [RELIEF ASSOCIATION SELF-GOVERNING.] 
  2.2      Subdivision 1.  [INCORPORATION.] (a) The relief association 
  2.3   must be incorporated under chapter 317A. 
  2.4      (b) The incorporators of the relief association are the 
  2.5   members of the governing body of the municipality. 
  2.6      Subd. 2.  [BOARD OF TRUSTEES; COMPOSITION.] (a) The relief 
  2.7   association must be governed by a board of trustees. 
  2.8      (b) The relief association board of trustees consists of 
  2.9   nine persons.  Six members of the board of trustees must be 
  2.10  elected by and from the membership of the relief association.  
  2.11  The remaining members of the board of trustees must be appointed 
  2.12  by the governing body of the municipality. 
  2.13     (c) The relief association must have three officers, which 
  2.14  are a president, secretary, and treasurer.  The officers must be 
  2.15  elected by and from the membership of the relief association.  
  2.16     (d) Initially, the term of office of the elected members of 
  2.17  the board of trustees is one year for board members designated 
  2.18  "A" and "B," two years for board members designated "C" and "D," 
  2.19  and three years for board members designated "E" and "F."  
  2.20  Thereafter, the term of office of all elected members of the 
  2.21  board of trustees is three years.  The term of office of 
  2.22  ex-officio members of the board of trustees is the term of 
  2.23  office of the person that gave rise to board membership.  The 
  2.24  term of office of an officer of the relief association is two 
  2.25  years or the balance of the board member's term of office as a 
  2.26  board member, whichever is shorter. 
  2.27     (e) The board of trustees must administer the affairs of 
  2.28  the relief association consistent with this chapter and the 
  2.29  applicable provisions of chapters 317A and 356A. 
  2.30     Subd. 3.  [SPECIAL AND GENERAL FUNDS.] (a) The relief 
  2.31  association shall establish and maintain a special fund and may 
  2.32  establish and maintain a general fund. 
  2.33     (b) The special fund must be credited with all money 
  2.34  received by the relief association from the municipality or any 
  2.35  money received from any other source for the purpose of 
  2.36  providing retirement benefits for rescue squad members, any 
  3.1   moneys or property that is donated, given, granted, or devised 
  3.2   by any person for the benefit of the rescue squad relief 
  3.3   association special fund, and any investment income earned on 
  3.4   the invested assets of the relief association. 
  3.5      (c) The treasurer of the relief association is the 
  3.6   custodian of the assets of the special fund and must be the 
  3.7   recipient, on behalf of the special fund, of all revenues 
  3.8   payable to the special fund.  The treasurer shall maintain 
  3.9   adequate records documenting any transaction involving the 
  3.10  assets or the revenues of the special fund.  The record of the 
  3.11  treasurer is public records and must be open for inspection by 
  3.12  any member of the relief association, any officer or employee of 
  3.13  the state of Minnesota or of the municipality, or any member of 
  3.14  the public, at reasonable times and places. 
  3.15     (d) Disbursements from the special fund may be made only 
  3.16  for one of the following purposes: 
  3.17     (1) for the payment of service pensions to retired members 
  3.18  of the relief association; 
  3.19     (2) for the payment of disability pensions to disabled 
  3.20  members of the relief association; 
  3.21     (3) for the payment of survivor benefits to the surviving 
  3.22  spouse, surviving dependent children, or estate of a deceased 
  3.23  member of the relief association; and 
  3.24     (4) for the payment of administrative expenses of the 
  3.25  relief association if the expenses are of the kind and type 
  3.26  authorized by section 69.80. 
  3.27     (e) All pension and benefit payments must be authorized by 
  3.28  and paid in accordance with the applicable law, the articles of 
  3.29  incorporation, and the bylaws of the relief association. 
  3.30     (f) The assets of the special fund must be invested only in 
  3.31  securities that comply with or are authorized by sections 
  3.32  356A.04 and 356A.06. 
  3.33     (g) The general fund, if established, must be operated as 
  3.34  provided in the articles of incorporation or bylaws of the 
  3.35  relief association. 
  3.36     Sec. 4.  [425B.04] [MEMBERSHIP; ELIGIBILITY.] 
  4.1      Subdivision 1.  [MEMBERSHIP.] The municipality, by 
  4.2   resolution, must specify the personnel providing rescue squad 
  4.3   service who may be members of the relief association. 
  4.4      Subd. 2.  [ELIGIBILITY.] The bylaws of the relief 
  4.5   association must specify any additional eligibility requirements 
  4.6   for persons specified under subdivision 1 for relief association 
  4.7   membership. 
  4.8      Sec. 5.  [425B.05] [BENEFITS.] 
  4.9      A relief association must either be a defined contribution 
  4.10  plan or a flexible service plan, as established by the 
  4.11  municipality. 
  4.12     Sec. 6.  [425B.06] [DEFINED CONTRIBUTION PLAN OPTION.] 
  4.13     Subdivision 1.  [INDIVIDUAL ACCOUNTS.] (a) The relief 
  4.14  association must establish individual accounts within the 
  4.15  special fund of the relief association for each relief 
  4.16  association member. 
  4.17     (b) To each individual account, there must be credited an 
  4.18  equal share of any contribution made by the governing body of 
  4.19  the municipality, any gift, bequeath, devise or other transfer 
  4.20  to the special fund, and any amount forfeited by a former member 
  4.21  who terminates active service with the rescue squad before 
  4.22  reaching the vesting requirements set forth in subdivision 2, 
  4.23  paragraph (b), and who does not return within five years of the 
  4.24  date of termination.  Any investment income of the special fund 
  4.25  must be credited to the individual accounts in proportion to the 
  4.26  balances in those accounts. 
  4.27     (c) Amounts to be credited to individual accounts may be 
  4.28  allocated only after the deduction of any reasonable and 
  4.29  necessary administrative expenses payable. 
  4.30     Subd. 2.  [SERVICE PENSION.] (a) The service pension amount 
  4.31  is the balance in the members' individual account. 
  4.32     (b) The service pension is not payable until the member 
  4.33  terminates active service with the rescue squad, has credit for 
  4.34  at least five years of service as an active member of the rescue 
  4.35  squad and five years as an active member of the relief 
  4.36  association, and has attained the age of at least 50 years. 
  5.1      (c) The retiring member must apply for the service pension. 
  5.2      Subd. 3.  [DISABILITY PENSION.] (a) The disability pension 
  5.3   amount is the balance in the member's individual account. 
  5.4      (b) The disability pension is not payable until the member 
  5.5   terminates active service with the rescue squad by virtue of any 
  5.6   injury or illness that renders the member incapable of 
  5.7   performing rescue squad duties.  
  5.8      Subd. 4.  [DEATH BENEFIT.] The death benefit amount is the 
  5.9   balance in the deceased member's individual account. 
  5.10     Subd. 5.  [PAYMENT.] All pensions and benefits under this 
  5.11  section are payable in a single lump sum payment. 
  5.12     Sec. 7.  [425B.07] [FLEXIBLE SERVICE PLAN OPTION.] 
  5.13     A municipality may develop and implement its own flexible 
  5.14  service plan for payment of pensions to eligible members out of 
  5.15  the special fund.  The plan, as enacted by the municipality as 
  5.16  an ordinance, in the discretion of the municipality, must 
  5.17  include provisions for vesting requirements, contribution 
  5.18  levels, payment amounts, disability pension provisions, death 
  5.19  benefits, payment terms, the method of payment, including lump 
  5.20  sum, monthly or annually, and such other terms as the 
  5.21  municipality deems necessary. 
  5.22     Sec. 8.  [425B.08] [FUNDING.] 
  5.23     (a) A municipality, annually, must include in its budget a 
  5.24  municipal contribution to the relief association. 
  5.25     (b) The municipal contribution amount must be transmitted 
  5.26  to the relief association treasurer annually on the payment date 
  5.27  specified by the city council of the municipality. 
  5.28     Sec. 9.  [425B.09] [AUDIT.] 
  5.29     The rescue squad relief association must be audited 
  5.30  annually by the state auditor. 
  5.31     Sec. 10.  [425B.10] [SPECIAL BENEFITS FOR EXISTING 
  5.32  MEMBERS.] 
  5.33     A municipality may, under such terms and conditions as it 
  5.34  approves, provide pensions under either the defined contribution 
  5.35  plan option or flexible service plan option to existing members 
  5.36  of the rescue squad as of the date the relief association is 
  6.1   incorporated through waivers of length of service vesting 
  6.2   requirements.  The terms and conditions must be included in the 
  6.3   bylaws of the relief association at the time of incorporation. 
  6.4      Sec. 11.  [425B.11] [NONAPPLICABILITY OF CHAPTERS 144C AND 
  6.5   424A.] 
  6.6      No member of the rescue squad relief association may 
  6.7   participate in or be eligible to receive any benefit or award 
  6.8   amount from the ambulance service personnel longevity award and 
  6.9   incentive program established under chapter 144C, or from any 
  6.10  volunteer firefighter relief association under chapter 424A by 
  6.11  virtue of service rendered on behalf of the rescue squad. 
  6.12     Sec. 12.  [EFFECTIVE DATE.] 
  6.13     Sections 1 to 11 are effective on the day following final 
  6.14  enactment.