1.1 	A bill for an act
1.2 	relating to retirement; volunteer firefighter relief associations; implementing 
1.3 	the recommendations of the 2013-2014 state auditor volunteer fire working 
1.4 	group;amending Minnesota Statutes 2012, sections 356A.06, subdivisions 7, 
1.5 	7a; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.08; 
1.6 	424B.12; Minnesota Statutes 2013 Supplement, sections 69.051, subdivisions 1a, 
1.7 	3; 424A.016, subdivision 6; 424A.02, subdivisions 3, 7; 424A.092, subdivision 
1.8 	6; 424A.093, subdivisions 2, 6; 424A.094, subdivision 2; 424A.10, subdivision 2.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 1a, 
1.11 	is amended to read:
1.12 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
1.13 	association, as defined in section 424A.001, subdivision 4, that is not required to file a 
1.14 	financial report and audit under subdivision 1 must prepare a detailed statement of the 
1.15 	financial affairs for the preceding fiscal year of the relief association's special and general 
1.16 	funds in the style and form prescribed by the state auditor. The detailed statement must 
1.17 	show:
1.18 	(1) the sources and amounts of all money received;
1.19 	(2) all disbursements, accounts payable and accounts receivable;
1.20 	(3) the amount of money remaining in the treasury;
1.21 	(4) total assets, including a listing of all investments;
1.22 	(5) the accrued liabilities; and
1.23 	(6) all other items necessary to show accurately the revenues and expenditures and 
1.24 	financial position of the relief association.
1.25 	(b) The detailed financial statement required under paragraph (a) must be certified 
1.26 	by an independenta certified public accountant or by the state auditor or by the auditor or 
2.1 	accountant who regularly examines or audits the financial transactions of the municipality. 
2.2 	In addition to certifying the financial condition of the special and general funds of the relief 
2.3 	association, the accountant or auditor conducting the examination shall give an opinion 
2.4 	as to the condition of the special and general funds of the relief association, and shall 
2.5 	comment upon any exceptions to the report. The independent accountant or auditor must 
2.6 	have at least five years of public accounting, auditing, or similar experience, and must not 
2.7 	be an active, inactive, or retired member of the relief association or the fire department.
2.8 	(c) The detailed statement required under paragraph (a) must be countersigned by:
2.9 	(1) the municipal clerk or clerk-treasurer of the municipality; or
2.10 	(2) where applicable, by the municipal clerk or clerk-treasurer of the largest 
2.11 	municipality in population which contracts with the independent nonprofit firefighting 
2.12 	corporation if the relief association is a subsidiary of an independent nonprofit firefighting 
2.13 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
2.14 	(3) by the chief financial official of the county in which the volunteer firefighter 
2.15 	relief association is located or primarily located if the relief association is associated with 
2.16 	a fire department that is not located in or associated with an organized municipality.
2.17 	(d) The volunteer firefighters' relief association board must file the detailed statement 
2.18 	required under paragraph (a) in the relief association office for public inspection and 
2.19 	present it to the governing body of the municipality within 45 days after the close of the 
2.20 	fiscal year, and must submit a copy of the detailed statement to the state auditor within 90 
2.21 	days of the close of the fiscal year.

2.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.23 	Sec. 2. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 3, is 
2.24 	amended to read:
2.25 		Subd. 3.Report by certain municipalities; exceptions. (a) The chief 
2.26 	administrative officer of each municipality which has an organized fire department but 
2.27 	which does not have a firefighters' relief association governed by section 69.77 or sections 
2.28 	424A.091 to 424A.095 and which is not exempted under paragraph (b) or (c) shall annually 
2.29 	prepare a detailed financial report of the receipts and disbursements by the municipality 
2.30 	for fire protection service during the preceding calendar year on a form prescribed by the 
2.31 	state auditor. The financial report must contain any information which the state auditor 
2.32 	deems necessary to disclose the sources of receipts and the purpose of disbursements for 
2.33 	fire protection service. The financial report must be signed by the municipal clerk or 
2.34 	clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk 
2.35 	or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does 
3.1 	not qualify initially to receive, and is not entitled subsequently to retain, state aid under 
3.2 	this chapter if the financial reporting requirement or the applicable requirements of this 
3.3 	chapter or any other statute or special law have not been complied with or are not fulfilled.
3.4 	(b) Each municipality that has an organized fire department and provides retirement 
3.5 	coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter 
3.6 	retirement plan under chapter 353G qualifies to have fire state aid transmitted to and 
3.7 	retained in the statewide lump-sum volunteer firefighter retirement fund without filing 
3.8 	a detailed financial report if the executive director of the Public Employees Retirement 
3.9 	Association certifies compliance by the municipality with the requirements of sections 
3.10 	353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief 
3.11 	with the requirements of section 353G.07.
3.12 	(c) Each municipality qualifies to receive fire state aid under this chapter without 
3.13 	filing a financial report under paragraph (a) if the municipality:
3.14 	(1) has an organized fire department;
3.15 	(2) does not have a volunteer firefighters relief association directly associated with 
3.16 	its fire department;
3.17 	(3) does not participate in the statewide lump-sum volunteer firefighter retirement 
3.18 	plan under chapter 353G;
3.19 	(4) provides retirement coverage to its firefighters through the public employees 
3.20 	police and fire retirement plan under sections 353.63 to 353.68; and
3.21 	(5) is certified by the executive director of the Public Employees Retirement 
3.22 	Association to the state auditor to have had an employer contribution under section 
3.23 	353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to 
3.24 	or greater than its fire state aid for the immediately prior calendar year.

3.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.26 	and applies to fire state aid payable on October 1, 2014.

3.27 	Sec. 3. Minnesota Statutes 2012, section 356A.06, subdivision 7, is amended to read:
3.28 		Subd. 7.Expanded list of authorized investment securities. (a) Authority. A 
3.29 	covered pension plan not described by subdivision 6, paragraph (a), is an expanded list 
3.30 	plan and shall invest its assets as specified in this subdivision. The governing board of an 
3.31 	expanded list plan may select and appoint investment agencies to act for or on its behalf.
3.32 	(b) Securities generally; investment forms. An expanded list plan is authorized 
3.33 	to purchase, sell, lend, and exchange the investment securities authorized under this 
3.34 	subdivision, including puts and call options and future contracts traded on a contract 
3.35 	market regulated by a governmental agency or by a financial institution regulated by 
4.1 	a governmental agency. These securities may be owned directly or through shares 
4.2 	in exchange-traded or mutual funds, or as units in commingled trusts, subject to any 
4.3 	limitations specified in this subdivision.
4.4 	(c) Government obligations. An expanded list plan is authorized to invest funds in 
4.5 	governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the 
4.6 	issue is backed by the full faith and credit of the issuer or the issue is rated among the top 
4.7 	four quality rating categories by a nationally recognized rating agency. The obligations in 
4.8 	which funds may be invested under this paragraph are guaranteed or insured issues of:
4.9 	(1) the United States, one of its agencies, one of its instrumentalities, or an 
4.10 	organization created and regulated by an act of Congress;
4.11 	(2) the Dominion of Canada or one of its provinces if the principal and interest are 
4.12 	payable in United States dollars;
4.13 	(3) a state or one of its municipalities, political subdivisions, agencies, or 
4.14 	instrumentalities; and
4.15 	(4) a United States government-sponsored organization of which the United States is 
4.16 	a member if the principal and interest are payable in United States dollars.
4.17 	(d) Investment-grade corporate obligations. An expanded list plan is authorized 
4.18 	to invest funds in bonds, notes, debentures, transportation equipment obligations, or 
4.19 	any other longer term evidences of indebtedness issued or guaranteed by a corporation 
4.20 	organized under the laws of the United States or any of its states, or the Dominion of 
4.21 	Canada or any of its provinces if:
4.22 	(1) the principal and interest are payable in United States dollars; and
4.23 	(2) the obligations are rated among the top four quality categories by a nationally 
4.24 	recognized rating agency.
4.25 	(e) Below-investment-grade corporate obligations. An expanded list plan is 
4.26 	authorized to invest in unrated corporate obligations or in corporate obligations that are 
4.27 	not rated among the top four quality categories by a nationally recognized rating agency if:
4.28 	(1) the aggregate value of these obligations does not exceed five percent of the 
4.29 	covered pension plan's market value;
4.30 	(2) the covered pension plan's participation is limited to 50 percent of a single 
4.31 	offering subject to this paragraph; and
4.32 	(3) the covered pension plan's participation is limited to 25 percent of an issuer's 
4.33 	obligations subject to this paragraph.
4.34 	(f) Other obligations. (1) An expanded list plan is authorized to invest funds in:
4.35 	(i) bankers acceptances and deposit notes if issued by a United States bank that is 
4.36 	rated in the highest four quality categories by a nationally recognized rating agency;
5.1 	(ii) certificates of deposit if issued by a United States bank or savings institution 
5.2 	rated in the highest four quality categories by a nationally recognized rating agency or 
5.3 	whose certificates of deposit are fully insured by federal agencies, or if issued by a credit 
5.4 	union in an amount within the limit of the insurance coverage provided by the National 
5.5 	Credit Union Administration;
5.6 	(iii) commercial paper if issued by a United States corporation or its Canadian 
5.7 	subsidiary and if rated in the highest two quality categories by a nationally recognized 
5.8 	rating agency;
5.9 	(iv) mortgage securities and asset-backed securities if rated in the top four quality 
5.10 	categories by a nationally recognized rating agency;
5.11 	(v) repurchase agreements and reverse repurchase agreements if collateralized with 
5.12 	letters of credit or securities authorized in this section;
5.13 	(vi) guaranteed investment contracts if issued by an insurance company or a bank 
5.14 	that is rated in the top four quality categories by a nationally recognized rating agency 
5.15 	or alternative guaranteed investment contracts if the underlying assets comply with the 
5.16 	requirements of this subdivision;
5.17 	(vii) savings accounts if fully insured by a federal agency; and
5.18 	(viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic 
5.19 	mutual insurance company.
5.20 	(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates 
5.21 	of deposit and collateralization agreements executed by the covered pension plan under 
5.22 	clause (1), item (ii).
5.23 	(3) In addition to investments authorized by clause (1), item (iv), an expanded list 
5.24 	plan is authorized to purchase from the Minnesota Housing Finance Agency all or any part 
5.25 	of a pool of residential mortgages, not in default, that has previously been financed by the 
5.26 	issuance of bonds or notes of the agency. The covered pension plan may also enter into 
5.27 	a commitment with the agency, at the time of any issue of bonds or notes, to purchase 
5.28 	at a specified future date, not exceeding 12 years from the date of the issue, the amount 
5.29 	of mortgage loans then outstanding and not in default that have been made or purchased 
5.30 	from the proceeds of the bonds or notes. The covered pension plan may charge reasonable 
5.31 	fees for any such commitment and may agree to purchase the mortgage loans at a price 
5.32 	sufficient to produce a yield to the covered pension plan comparable, in its judgment, 
5.33 	to the yield available on similar mortgage loans at the date of the bonds or notes. The 
5.34 	covered pension plan may also enter into agreements with the agency for the investment 
5.35 	of any portion of the funds of the agency. The agreement must cover the period of the 
5.36 	investment, withdrawal privileges, and any guaranteed rate of return.
6.1 	(g) Corporate stocks. An expanded list plan is authorized to invest in stocks or 
6.2 	convertible issues of any corporation organized under the laws of the United States or any 
6.3 	of its states, any corporation organized under the laws of the Dominion of Canada or any 
6.4 	of its provinces, or any corporation listed on an exchange that is regulated by an agency of 
6.5 	the United States or of the Canadian national government.
6.6 	An investment in any corporation must not exceed five percent of the total 
6.7 	outstanding shares of that corporation, except that an expanded list plan may hold up 
6.8 	to 20 percent of the shares of a real estate investment trust and up to 20 percent of the 
6.9 	shares of a closed mutual fund.
6.10 	(h) Other investments. (1) In addition to the investments authorized in paragraphs 
6.11 	(b) to (g), and subject to the provisions in clause (2), an expanded list plan is authorized 
6.12 	to invest funds in:
6.13 	(i) equity and debt investment businesses through participation in limited 
6.14 	partnerships, trusts, private placements, limited liability corporations, limited liability 
6.15 	companies, limited liability partnerships, and corporations;
6.16 	(ii) real estate ownership interests or loans secured by mortgages or deeds of trust 
6.17 	or shares of real estate investment trusts, through investment in limited partnerships, 
6.18 	bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance 
6.19 	company commingled accounts, including separate accounts;
6.20 	(iii) resource investments through limited partnerships, trusts, private placements, 
6.21 	limited liability corporations, limited liability companies, limited liability partnerships, 
6.22 	and corporations; and
6.23 	(iv) international securities.
6.24 	(2) The investments authorized in clause (1) must conform to the following 
6.25 	provisions:
6.26 	(i) the aggregate value of all investments made under clause (1), items (i), (ii), and 
6.27 	(iii), may not exceed 35 percent of the market value of the fund for which the expanded 
6.28 	list plan is investing;
6.29 	(ii) there must be at least four unrelated owners of the investment other than the 
6.30 	expanded list plan for investments made under clause (1), item (i), (ii), or (iii);
6.31 	(iii) the expanded list plan's participation in an investment vehicle is limited to 20 
6.32 	percent thereof for investments made under clause (1), item (i), (ii), or (iii);
6.33 	(iv) the expanded list plan's participation in a limited partnership does not include a 
6.34 	general partnership interest or other interest involving general liability. The expanded list 
6.35 	plan may not engage in any activity as a limited partner which creates general liability; and
7.1 	(v) the aggregate value of all unrated obligations and obligations that are not rated 
7.2 	among the top four quality categories by a nationally recognized rating agency authorized 
7.3 	by paragraph (f) and clause (1), item (iv), must not exceed five percent of the covered 
7.4 	plan's market value; and
7.5 	(vi) for volunteer firefighter relief associations, emerging market equity and 
7.6 	international debt investments authorized under clause (1), item (iv), must not exceed 15 
7.7 	percent of the association's special fund market value.
7.8 	(i) Supplemental plan investments. The governing body of an expanded list plan 
7.9 	may certify assets to the State Board of Investment for investment under section 11A.17.
7.10 	(j) Asset mix limitations. The aggregate value of an expanded list plan's 
7.11 	investments under paragraphs (g) and (h) and equity investments under paragraph (i), 
7.12 	regardless of the form in which these investments are held, must not exceed 85 percent of 
7.13 	the covered plan's market value.

7.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.15 	Sec. 4. Minnesota Statutes 2012, section 356A.06, subdivision 7a, is amended to read:
7.16 		Subd. 7a.Restrictions. Any agreement to lend securities must be concurrently 
7.17 	collateralized with cash or securities with a market value of not less than 100 percent of the 
7.18 	market value of the loaned securities at the time of the agreement. For a covered pension 
7.19 	authorized to purchase put and call options and futures contracts under subdivision 7, any 
7.20 	agreement for put and call options and futures contracts may only be entered into with a 
7.21 	fully offsetting amount of cash or securities. Only securities authorized by this section, 
7.22 	excluding those under subdivision 7, paragraph (g) (h), clause (1), items (i) to (iv), may be 
7.23 	accepted as collateral or offsetting securities.

7.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.25 	Sec. 5. Minnesota Statutes 2012, section 424A.015, is amended by adding a 
7.26 	subdivision to read:
7.27 		Subd. 6.Governing benefit plan provisions. A service pension or ancillary benefit 
7.28 	payable under this chapter is governed by and must be calculated under the general statute, 
7.29 	special law, relief association articles of incorporation, and relief association bylaw 
7.30 	provisions applicable on the date on which the member separated from active service with 
7.31 	the fire department and active membership in the relief association.

7.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.1 	Sec. 6. Minnesota Statutes 2012, section 424A.016, subdivision 4, is amended to read:
8.2 		Subd. 4.Individual accounts. (a) An individual account must be established for 
8.3 	each firefighter who is a member of the relief association.
8.4 	(b) To each individual active member account must be credited an equal share of:
8.5 	(1) any amounts of fire state aid received by the relief association;
8.6 	(2) any amounts of municipal contributions to the relief association raised from 
8.7 	levies on real estate or from other available municipal revenue sources exclusive of fire 
8.8 	state aid; and
8.9 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
8.10 	(i) any former member who terminated active service with the fire department to 
8.11 	which the relief association is associated before meeting the minimum service requirement 
8.12 	provided for in subdivision 2, paragraph (b), and has not returned to active service with 
8.13 	the fire department for a period no shorter than five years; or
8.14 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in 
8.15 	the amounts credited to the individual member account under subdivision 2, paragraph 
8.16 	(b), and any applicable provision of the bylaws of the relief association. In addition, any 
8.17 	investment return on the assets of the special fund must be credited in proportion to the 
8.18 	share of the assets of the special fund to the credit of each individual active member 
8.19 	account. Administrative expenses of the relief association payable from the special 
8.20 	fund may be deducted from individual accounts in a manner specified in the bylaws of 
8.21 	the relief association.
8.22 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
8.23 	any investment return on the assets of the special fund to the accounts of inactive members.
8.24 	(d) Amounts to be credited to individual accounts must be allocated uniformly 
8.25 	for all years of active service and allocations must be made for all years of service, 
8.26 	except for caps on service credit if so provided in the bylaws of the relief association. 
8.27 	Amounts forfeited under paragraph (b), clause (3), before a resumption of active service 
8.28 	and membership under section 424A.01, subdivision 6, remain forfeited and may not be 
8.29 	reinstated upon the resumption of active service and membership. The allocation method 
8.30 	may utilize monthly proration for fractional years of service, as the bylaws or articles of 
8.31 	incorporation of the relief association so provide. The bylaws or articles of incorporation 
8.32 	may define a "month," but the definition must require a calendar month to have at least 16 
8.33 	days of active service. If the bylaws or articles of incorporation do not define a "month," a 
8.34 	"month" is a completed calendar month of active service measured from the member's 
8.35 	date of entry to the same date in the subsequent month.
9.1 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
9.2 	bylaws of the relief association, a retiring member is entitled to that portion of the assets 
9.3 	of the special fund to the credit of the member in the individual member account which is 
9.4 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
9.5 	association based on the number of years of service to the credit of the retiring member.
9.6 	(f) Annually, the secretary of the relief association shall certify the individual 
9.7 	account allocations to the state auditor at the same time that the annual financial statement 
9.8 	or financial report and audit of the relief association, whichever applies, is due under 
9.9 	section 69.051.

9.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.11 	Sec. 7. Minnesota Statutes 2013 Supplement, section 424A.016, subdivision 6, is 
9.12 	amended to read:
9.13 		Subd. 6.Deferred service pensions. (a) A member of a relief association is entitled 
9.14 	to a deferred service pension if the member separates from active service and membership 
9.15 	and has completed the minimum service and membership requirements in subdivision 2. 
9.16 	The requirement that a member separate from active service and membership is waived 
9.17 	for persons who have discontinued their volunteer firefighter duties and who are employed 
9.18 	on a full-time basis under section 424A.015, subdivision 1.
9.19 	(b) The deferred service pension is payable when the former member reaches at 
9.20 	least age 50, or at least the minimum age specified in the bylaws governing the relief 
9.21 	association if that age is greater than age 50, and when the former member makes a valid 
9.22 	written application.
9.23 	(c) A defined contribution relief association may, if its governing bylaws so provide, 
9.24 	credit interest or additional investment performance on the deferred lump-sum service 
9.25 	pension during the period of deferral. If provided for in the bylaws, the interest must be 
9.26 	paid:
9.27 	(1) at the investment performance rate actually earned on that portion of the assets 
9.28 	if the deferred benefit amount is invested by the relief association in a separate account 
9.29 	established and maintained by the relief association;
9.30 	(2) at the investment performance rate actually earned on that portion of the assets 
9.31 	if the deferred benefit amount is invested in a separate investment vehicle held by the 
9.32 	relief association; or
9.33 	(3) at the investment return on the assets of the special fund of the defined contribution 
9.34 	volunteer firefighter relief association in proportion to the share of the assets of the special 
10.1 	fund to the credit of each individual deferred member account through the accounting date 
10.2 	on which the investment return is recognized by and credited to the special fund.
10.3 	(d) Unless the bylaws of a relief association that has elected to pay interest or 
10.4 	additional investment performance on deferred lump-sum service pensions under 
10.5 	paragraph (c) specifies a different interest or additional investment performance method, 
10.6 	including the interest or additional investment performance period starting date and ending 
10.7 	date, the interest or additional investment performance on a deferred service pension 
10.8 	is creditable as follows:
10.9 	(1) for a relief association that has elected to pay interest or additional investment 
10.10 	performance under paragraph (c), clause (1) or (3), beginning on the date that the 
10.11 	member separates from active service and membership and ending on the accounting 
10.12 	date immediately before the deferred member commences receipt of the deferred service 
10.13 	pension; or
10.14 	(2) for a relief association that has elected to pay interest or additional investment 
10.15 	performance under paragraph (c), clause (2), beginning on the date that the member 
10.16 	separates from active service and membership and ending on the date that the separate 
10.17 	investment vehicle is valued immediately before the date on which the deferred member 
10.18 	commences receipt of the deferred service pension.
10.19 	(e) The deferred service pension is governed by and must be calculated under 
10.20 	the general statute, special law, relief association articles of incorporation, and relief 
10.21 	association bylaw provisions applicable on the date on which the member separated from 
10.22 	active service with the fire department and active membership in the relief association.

10.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.24 	Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 7, is amended to read:
10.25 		Subd. 7.Limitation on ancillary benefits. (a) A defined contribution relief 
10.26 	association may only pay an ancillary benefit which would constitute an authorized 
10.27 	disbursement as specified in section 424A.05. The ancillary benefit for active members 
10.28 	must equal the vested and nonvested amount of the individual account of the member.
10.29 	(b) For deferred members, the ancillary benefit must equal the vested amount of 
10.30 	the individual account of the member. For the recipient of installment payments of a 
10.31 	service pension, the ancillary benefit must equal the remaining balance in the individual 
10.32 	account of the recipient.
10.33 	(c) If the bylaws permit and as defined by the bylaws, the relief association may pay 
10.34 	an ancillary benefit to, or on behalf of, a member who is not active or deferred.
11.1 	(d)(1) If a survivor or death benefit is payable under the articles of incorporation or 
11.2 	bylaws, the benefit must be paid:
11.3 	(i) as a survivor benefit to the surviving spouse of the deceased firefighter;
11.4 	(ii) as a survivor benefit to the surviving children of the deceased firefighter if no 
11.5 	surviving spouse;
11.6 	(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
11.7 	surviving spouse or surviving children; or
11.8 	(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no 
11.9 	surviving spouse, no surviving children, and no beneficiary designated.
11.10 	(2) If there are no surviving children, the surviving spouse may waive, in writing, 
11.11 	wholly or partially, the spouse's entitlement to a survivor benefit.
11.12 	(d) (e) For purposes of this section, for a defined contribution volunteer fire relief 
11.13 	association, a trust created under chapter 501B may be a designated beneficiary. If a trust 
11.14 	payable to the surviving children organized under chapter 501B has been established as 
11.15 	authorized by this section and there is no surviving spouse, the survivor benefit may be 
11.16 	paid to the trust, notwithstanding the requirements of this section.

11.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

11.18 	Sec. 9. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 3, is 
11.19 	amended to read:
11.20 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 
11.21 	1 as part of the certification of the financial requirements and minimum municipal 
11.22 	obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 
11.23 	5, as applicable, the secretary or some other official of the relief association designated 
11.24 	in the bylaws of each defined benefit relief association shall calculate and certify to the 
11.25 	governing body of the applicable qualified municipality the average amount of available 
11.26 	financing per active covered firefighter for the most recent three-year period. The amount 
11.27 	of available financing includes any amounts of fire state aid received or receivable by the 
11.28 	relief association, any amounts of municipal contributions to the relief association raised 
11.29 	from levies on real estate or from other available revenue sources exclusive of fire state 
11.30 	aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief 
11.31 	association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2
11.32 	and 4; or 424A.094, subdivision 2, if any.
11.33 	(b) The maximum service pension which the defined benefit relief association has 
11.34 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
12.1 	date when the minimum age and service requirements specified in subdivision 1 are met 
12.2 	must be determined using the table in paragraph (c) or (d), whichever applies.
12.3 	(c) For a defined benefit relief association where the governing bylaws provide for 
12.4 	a monthly service pension to a retiring member, the maximum monthly service pension 
12.5 	amount per month for each year of service credited that may be provided for in the bylaws 
12.6 	is the greater of the service pension amount provided for in the bylaws on the date of the 
12.7 	calculation of the average amount of the available financing per active covered firefighter 
12.8 	or the maximum service pension figure corresponding to the average amount of available 
12.9 	financing per active covered firefighter:

12.10
12.11
12.12	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each 
Year of Service
	
12.13	$ ...
		$ .25
		
12.14	41
		.50
		
12.15	81
		1.00
		
12.16	122
		1.50
		
12.17	162
		2.00
		
12.18	203
		2.50
		
12.19	243
		3.00
		
12.20	284
		3.50
		
12.21	324
		4.00
		
12.22	365
		4.50
		
12.23	405
		5.00
		
12.24	486
		6.00
		
12.25	567
		7.00
		
12.26	648
		8.00
		
12.27	729
		9.00
		
12.28	810
		10.00
		
12.29	891
		11.00
		
12.30	972
		12.00
		
12.31	1053
		13.00
		
12.32	1134
		14.00
		
12.33	1215
		15.00
		
12.34	1296
		16.00
		
12.35	1377
		17.00
		
12.36	1458
		18.00
		
12.37	1539
		19.00
		
12.38	1620
		20.00
		
12.39	1701
		21.00
		
12.40	1782
		22.00
		
12.41	1823
		22.50
		
12.42	1863
		23.00
		
13.1	1944
		24.00
		
13.2	2025
		25.00
		
13.3	2106
		26.00
		
13.4	2187
		27.00
		
13.5	2268
		28.00
		
13.6	2349
		29.00
		
13.7	2430
		30.00
		
13.8	2511
		31.00
		
13.9	2592
		32.00
		
13.10	2673
		33.00
		
13.11	2754
		34.00
		
13.12	2834
		35.00
		
13.13	2916
		36.00
		
13.14	2997
		37.00
		
13.15	3078
		38.00
		
13.16	3159
		39.00
		
13.17	3240
		40.00
		
13.18	3321
		41.00
		
13.19	3402
		42.00
		
13.20	3483
		43.00
		
13.21	3564
		44.00
		
13.22	3645
		45.00
		
13.23	3726
		46.00
		
13.24	3807
		47.00
		
13.25	3888
		48.00
		
13.26	3969
		49.00
		
13.27	4050
		50.00
		
13.28	4131
		51.00
		
13.29	4212
		52.00
		
13.30	4293
		53.00
		
13.31	4374
		54.00
		
13.32	4455
		55.00
		
13.33	4536
		56.00
		
13.34	Effective beginning December 31, 2008
			
13.35	4617
		57.00
		
13.36	4698
		58.00
		
13.37	4779
		59.00
		
13.38	4860
		60.00
		
13.39	4941
		61.00
		
13.40	5022
		62.00
		
13.41	5103
		63.00
		
13.42	5184
		64.00
		
13.43	5265
		65.00
		
14.1	Effective beginning December 31, 2009
			
14.2	5346
		66.00
		
14.3	5427
		67.00
		
14.4	5508
		68.00
		
14.5	5589
		69.00
		
14.6	5670
		70.00
		
14.7	5751
		71.00
		
14.8	5832
		72.00
		
14.9	5913
		73.00
		
14.10	5994
		74.00
		
14.11	Effective beginning December 31, 2010
			
14.12	6075
		75.00
		
14.13	6156
		76.00
		
14.14	6237
		77.00
		
14.15	6318
		78.00
		
14.16	6399
		79.00
		
14.17	6480
		80.00
		
14.18	6561
		81.00
		
14.19	6642
		82.00
		
14.20	6723
		83.00
		
14.21	Effective beginning December 31, 2011
			
14.22	6804
		84.00
		
14.23	6885
		85.00
		
14.24	6966
		86.00
		
14.25	7047
		87.00
		
14.26	7128
		88.00
		
14.27	7209
		89.00
		
14.28	7290
		90.00
		
14.29	7371
		91.00
		
14.30	7452
		92.00
		
14.31	Effective beginning December 31, 2012
			
14.32	7533
		93.00
		
14.33	7614
		94.00
		
14.34	7695
		95.00
		
14.35	7776
		96.00
		
14.36	7857
		97.00
		
14.37	7938
		98.00
		
14.38	8019
		99.00
		
14.39	8100
		100.00
		
14.40	any amount in excess of 
				
14.41	8100
		100.00
		
14.42 	(d) For a defined benefit relief association in which the governing bylaws provide 
14.43 	for a lump-sum service pension to a retiring member, the maximum lump-sum service 
15.1 	pension amount for each year of service credited that may be provided for in the bylaws is 
15.2 	the greater of the service pension amount provided for in the bylaws on the date of the 
15.3 	calculation of the average amount of the available financing per active covered firefighter 
15.4 	or the maximum service pension figure corresponding to the average amount of available 
15.5 	financing per active covered firefighter for the applicable specified period:

15.6
15.7
15.8	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for 
Each Year of Service
	
15.9	$ ...
		$ 10
		
15.10	11
		20
		
15.11	16
		30
		
15.12	23
		40
		
15.13	27
		50
		
15.14	32
		60
		
15.15	43
		80
		
15.16	54
		100
		
15.17	65
		120
		
15.18	77
		140
		
15.19	86
		160
		
15.20	97
		180
		
15.21	108
		200
		
15.22	131
		240
		
15.23	151
		280
		
15.24	173
		320
		
15.25	194
		360
		
15.26	216
		400
		
15.27	239
		440
		
15.28	259
		480
		
15.29	281
		520
		
15.30	302
		560
		
15.31	324
		600
		
15.32	347
		640
		
15.33	367
		680
		
15.34	389
		720
		
15.35	410
		760
		
15.36	432
		800
		
15.37	486
		900
		
15.38	540
		1000
		
15.39	594
		1100
		
15.40	648
		1200
		
15.41	702
		1300
		
15.42	756
		1400
		
15.43	810
		1500
		
16.1	864
		1600
		
16.2	918
		1700
		
16.3	972
		1800
		
16.4	1026
		1900
		
16.5	1080
		2000
		
16.6	1134
		2100
		
16.7	1188
		2200
		
16.8	1242
		2300
		
16.9	1296
		2400
		
16.10	1350
		2500
		
16.11	1404
		2600
		
16.12	1458
		2700
		
16.13	1512
		2800
		
16.14	1566
		2900
		
16.15	1620
		3000
		
16.16	1672
		3100
		
16.17	1726
		3200
		
16.18	1753
		3250
		
16.19	1780
		3300
		
16.20	1820
		3375
		
16.21	1834
		3400
		
16.22	1888
		3500
		
16.23	1942
		3600
		
16.24	1996
		3700
		
16.25	2023
		3750
		
16.26	2050
		3800
		
16.27	2104
		3900
		
16.28	2158
		4000
		
16.29	2212
		4100
		
16.30	2265
		4200
		
16.31	2319
		4300
		
16.32	2373
		4400
		
16.33	2427
		4500
		
16.34	2481
		4600
		
16.35	2535
		4700
		
16.36	2589
		4800
		
16.37	2643
		4900
		
16.38	2697
		5000
		
16.39	2751
		5100
		
16.40	2805
		5200
		
16.41	2859
		5300
		
16.42	2913
		5400
		
16.43	2967
		5500
		
17.1	3021
		5600
		
17.2	3075
		5700
		
17.3	3129
		5800
		
17.4	3183
		5900
		
17.5	3237
		6000
		
17.6	3291
		6100
		
17.7	3345
		6200
		
17.8	3399
		6300
		
17.9	3453
		6400
		
17.10	3507
		6500
		
17.11	3561
		6600
		
17.12	3615
		6700
		
17.13	3669
		6800
		
17.14	3723
		6900
		
17.15	3777
		7000
		
17.16	3831
		7100
		
17.17	3885
		7200
		
17.18	3939
		7300
		
17.19	3993
		7400
		
17.20	4047
		7500
		
17.21	Effective beginning December 31, 2008
			
17.22	4101
		7600
		
17.23	4155
		7700
		
17.24	4209
		7800
		
17.25	4263
		7900
		
17.26	4317
		8000
		
17.27	4371
		8100
		
17.28	4425
		8200
		
17.29	4479
		8300
		
17.30	Effective beginning December 31, 2009
			
17.31	4533
		8400
		
17.32	4587
		8500
		
17.33	4641
		8600
		
17.34	4695
		8700
		
17.35	4749
		8800
		
17.36	4803
		8900
		
17.37	4857
		9000
		
17.38	4911
		9100
		
17.39	Effective beginning December 31, 2010
			
17.40	4965
		9200
		
17.41	5019
		9300
		
17.42	5073
		9400
		
17.43	5127
		9500
		
18.1	5181
		9600
		
18.2	5235
		9700
		
18.3	5289
		9800
		
18.4	5343
		9900
		
18.5	5397
		10,000
		
18.6	any amount in excess of
				
18.7	5397
		10,000
		
18.8 	(e) For a defined benefit relief association in which the governing bylaws provide 
18.9 	for a monthly benefit service pension as an alternative form of service pension payment 
18.10 	to a lump-sum service pension, the maximum service pension amount for each pension 
18.11 	payment type must be determined using the applicable table contained in this subdivision.
18.12 	(f) If a defined benefit relief association establishes a service pension in compliance 
18.13 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
18.14 	amount of available financing per active covered firefighter is subsequently reduced 
18.15 	because of a reduction in fire state aid or because of an increase in the number of active 
18.16 	firefighters, the relief association may continue to provide the prior service pension 
18.17 	amount specified in its bylaws, but may not increase the service pension amount until 
18.18 	the minimum average amount of available financing per firefighter under the table in 
18.19 	paragraph (c) or (d), whichever applies, permits.
18.20 	(g) No defined benefit relief association is authorized to provide a service pension in 
18.21 	an amount greater than the largest applicable flexible service pension maximum amount 
18.22 	even if the amount of available financing per firefighter is greater than the financing 
18.23 	amount associated with the largest applicable flexible service pension maximum.
18.24 	(h) The method of calculating service pensions must be applied uniformly for all 
18.25 	years of active service. Credit must be given for all years of active service except for caps 
18.26 	on service credit if so provided in the bylaws of the relief association.

18.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.28 	Sec. 10. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 7, is 
18.29 	amended to read:
18.30 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief 
18.31 	association is entitled to a deferred service pension if the member separates from active 
18.32 	service and membership and has completed the minimum service and membership 
18.33 	requirements in subdivision 1. The requirement that a member separate from active service 
18.34 	and membership is waived for persons who have discontinued their volunteer firefighter 
18.35 	duties and who are employed on a full-time basis under section 424A.015, subdivision 1.
19.1 	(b) The deferred service pension is payable when the former member reaches at 
19.2 	least age 50, or at least the minimum age specified in the bylaws governing the relief 
19.3 	association if that age is greater than age 50, and when the former member makes a valid 
19.4 	written application.
19.5 	(c) A defined benefit relief association that provides a lump-sum service pension 
19.6 	governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the 
19.7 	deferred lump-sum service pension during the period of deferral. If provided for in the 
19.8 	bylaws, interest must be paid in one of the following manners:
19.9 	(1) at the investment performance rate actually earned on that portion of the assets 
19.10 	if the deferred benefit amount is invested by the relief association in a separate account 
19.11 	established and maintained by the relief association;
19.12 	(2) at the investment performance rate actually earned on that portion of the assets 
19.13 	if the deferred benefit amount is invested in a separate investment vehicle held by the 
19.14 	relief association; or
19.15 	(3) at an interest rate of up to five percent, compounded annually, as set by the 
19.16 	board of trustees.
19.17 	(d) Any change in the interest rate set by the board of directorstrustees under 
19.18 	paragraph (c), clause (3), must be ratified by the governing body of the municipality 
19.19 	served by the fire department to which the relief association is directly associated, or by 
19.20 	the independent nonprofit firefighting corporation, as applicable.
19.21 	(e) Interest under paragraph (c), clause (3), is payable beginning on the January 1 
19.22 	next following the date on which the deferred service pension interest rate as set by the 
19.23 	board of trustees was ratified by the governing body of the municipality served by the fire 
19.24 	department to which the relief association is directly associated, or by the independent 
19.25 	nonprofit firefighting corporation, as applicable.
19.26 	(f) Unless the bylaws of a relief association that has elected to pay interest or 
19.27 	additional investment performance on deferred lump-sum service pensions under 
19.28 	paragraph (c) specifies a different interest or additional investment performance method, 
19.29 	including the interest or additional investment performance period starting date and ending 
19.30 	date, the interest or additional investment performance on a deferred service pension 
19.31 	is creditable as follows:
19.32 	(1) for a relief association that has elected to pay interest or additional investment 
19.33 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the 
19.34 	month next following the date on which the member separates from active service and 
19.35 	membership and ending on the last day of the month immediately before the month in 
19.36 	which the deferred member commences receipt of the deferred service pension; or
20.1 	(2) for a relief association that has elected to pay interest or additional investment 
20.2 	performance under paragraph (c), clause (2), beginning on the date that the member 
20.3 	separates from active service and membership and ending on the date that the separate 
20.4 	investment vehicle is valued immediately before the date on which the deferred member 
20.5 	commences receipt of the deferred service pension.
20.6 	(g) For a deferred service pension that is transferred to a separate account established 
20.7 	and maintained by the relief association or separate investment vehicle held by the relief 
20.8 	association, the deferred member bears the full investment risk subsequent to transfer and 
20.9 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
20.10 	a lump-sum service pension, the accrued liability for deferred service pensions is equal 
20.11 	to the separate relief association account balance or the fair market value of the separate 
20.12 	investment vehicle held by the relief association.
20.13 	(h) The deferred service pension is governed by and must be calculated under 
20.14 	the general statute, special law, relief association articles of incorporation, and relief 
20.15 	association bylaw provisions applicable on the date on which the member separated from 
20.16 	active service with the fire department and active membership in the relief association.

20.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.18 	Sec. 11. Minnesota Statutes 2012, section 424A.08, is amended to read:
20.19 	424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; 
20.20 	AUTHORIZED DISBURSEMENTS.
20.21 	(a) Any qualified municipality which is entitled to receive fire state aid but which 
20.22 	has no volunteer firefighters' relief association directly associated with its fire department 
20.23 	and which has no full-time firefighters with retirement coverage by the public employees 
20.24 	police and fire retirement plan shall deposit the fire state aid in a special account 
20.25 	established for that purpose in the municipal treasury. Disbursement from the special 
20.26 	account may not be made for any purpose except:
20.27 	(1) payment of the fees, dues and assessments to the Minnesota State Fire 
20.28 	Department Association and to the state Volunteer Firefighters' Benefit Association in 
20.29 	order to entitle its firefighters to membership in and the benefits of these state associations;
20.30 	(2) payment of the cost of purchasing and maintaining needed equipment for the 
20.31 	fire department; and
20.32 	(3) payment of the cost of construction, acquisition, repair, or maintenance of 
20.33 	buildings or other premises to house the equipment of the fire department.
21.1 	(b) A qualified municipality which is entitled to receive fire state aid, which has no 
21.2 	volunteer firefighters' relief association directly associated with its fire department, which 
21.3 	does not participate in the voluntary statewide lump-sum volunteer firefighter retirement 
21.4 	plan under chapter 353G, and which has full-time firefighters with retirement coverage 
21.5 	by the public employees police and fire retirement plan may disburse the fire state aid as 
21.6 	provided in paragraph (a), for the payment of the employer contribution requirement with 
21.7 	respect to firefighters covered by the public employees police and fire retirement plan under 
21.8 	section 353.65, subdivision 3, or for a combination of the two types of disbursements.
21.9 	(c) A municipality that has no volunteer firefighters' relief association directly 
21.10 	associated with it and that participates in the voluntary statewide lump-sum volunteer 
21.11 	firefighter retirement plan under chapter 353G shall transmit any fire state aid that it 
21.12 	receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.

21.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.14 	Sec. 12. Minnesota Statutes 2013 Supplement, section 424A.092, subdivision 6, 
21.15 	is amended to read:
21.16 		Subd. 6.Municipal ratification for plan amendments. If the special fund of 
21.17 	the relief association does not have a surplus over full funding under subdivision 3, 
21.18 	paragraph (c), clause (5), and if the municipality is required to provide financial support 
21.19 	to the special fund of the relief association under this section, the adoption of or any 
21.20 	amendment to the articles of incorporation or bylaws of a relief association which 
21.21 	increases or otherwise affects the retirement coverage provided by or the service pensions 
21.22 	or retirement benefits payable from the special fund of any relief association to which this 
21.23 	section applies is not effective until it is ratified by the governing body of the municipality 
21.24 	in which the relief association is locatedserved by the fire department to which the 
21.25 	relief association is directly associated or by the independent nonprofit firefighting 
21.26 	corporation, as applicable, and the officers of a relief association shall not seek municipal 
21.27 	ratification prior to preparing and certifying an estimate of the expected increase in the 
21.28 	accrued liability and annual accruing liability of the relief association attributable to the 
21.29 	amendment. If the special fund of the relief association has a surplus over full funding 
21.30 	under subdivision 3, paragraph (c), clause (5), and if the municipality is not required to 
21.31 	provide financial support to the special fund of the relief association under this section, 
21.32 	the relief association may adopt or amend its articles of incorporation or bylaws which 
21.33 	increase or otherwise affect the retirement coverage provided by or the service pensions 
21.34 	or retirement benefits payable from the special fund of the relief association which are 
21.35 	effective without municipal ratification so long as this does not cause the amount of the 
22.1 	resulting increase in the accrued liability of the special fund of the relief association to 
22.2 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year 
22.3 	and this does not result in the financial requirements of the special fund of the relief 
22.4 	association exceeding the expected amount of the future fire state aid to be received by 
22.5 	the relief association as determined by the board of trustees following the preparation 
22.6 	of an estimate of the expected increase in the accrued liability and annual accruing 
22.7 	liability of the relief association attributable to the change. If a relief association adopts or 
22.8 	amends its articles of incorporation or bylaws without municipal ratification under this 
22.9 	subdivision, and, subsequent to the amendment or adoption, the financial requirements 
22.10 	of the special fund of the relief association under this section are such so as to require 
22.11 	financial support from the municipality, the provision which was implemented without 
22.12 	municipal ratification is no longer effective without municipal ratification and any service 
22.13 	pensions or retirement benefits payable after that date may be paid only in accordance with 
22.14 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

22.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.16 	Sec. 13. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 2, 
22.17 	is amended to read:
22.18 		Subd. 2.Determination of actuarial condition and funding costs. A relief 
22.19 	association to which this section applies shall obtain an actuarial valuation showing the 
22.20 	condition of the special fund of the relief association as of December 31, 1978, and at 
22.21 	least as of December 31 every four years thereafter. The valuation shall be prepared in 
22.22 	accordance with the provisions of sections 356.215, subdivision 8, and 356.216 and any 
22.23 	applicable standards for actuarial work established by the Legislative Commission on 
22.24 	Pensions and Retirement, except that the figure for normal cost shall be expressed as a 
22.25 	level dollar amount, and the amortization contribution shall be the level dollar amount 
22.26 	calculated to amortize any current unfunded accrued liability by at least the date of full 
22.27 	funding specified in subdivision 4, clause (b). Each valuation shall be filed with the 
22.28 	governing body of the municipality in which the relief association is locatedserved by the 
22.29 	fire department to which the relief association is directly associated or by the independent 
22.30 	nonprofit firefighting corporation, as applicable, and with the state auditor, not later than 
22.31 	July 1 of the year next following the date as of which the actuarial valuation is prepared. 
22.32 	Any relief association which is operating under a special law which requires that actuarial 
22.33 	valuations be obtained at least every four years and be prepared in accordance with 
22.34 	applicable actuarial standards set forth in statute may continue to have actuarial valuations 
23.1 	made according to the time schedule set forth in the special legislation subject to the 
23.2 	provisions of subdivision 3.

23.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

23.4 	Sec. 14. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 6, 
23.5 	is amended to read:
23.6 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
23.7 	relief association does not have a surplus over full funding under subdivision 4, and 
23.8 	if the municipality is required to provide financial support to the special fund of the 
23.9 	relief association under this section, the adoption of or any amendment to the articles of 
23.10 	incorporation or bylaws of a relief association which increases or otherwise affects the 
23.11 	retirement coverage provided by or the service pensions or retirement benefits payable 
23.12 	from the special fund of any relief association to which this section applies is not effective 
23.13 	until it is ratified by the governing body of the municipality in which the relief association 
23.14 	is located served by the fire department to which the relief association is directly associated 
23.15 	or by the independent nonprofit firefighting corporation, as applicable. If the special 
23.16 	fund of the relief association has a surplus over full funding under subdivision 4, and if 
23.17 	the municipality is not required to provide financial support to the special fund of the 
23.18 	relief association under this section, the relief association may adopt or amend its articles 
23.19 	of incorporation or bylaws which increase or otherwise affect the retirement coverage 
23.20 	provided by or the service pensions or retirement benefits payable from the special fund 
23.21 	of the relief association which are effective without municipal ratification so long as this 
23.22 	does not cause the amount of the resulting increase in the accrued liability of the special 
23.23 	fund of the relief association to exceed 90 percent of the amount of the surplus over full 
23.24 	funding reported in the prior year and this does not result in the financial requirements of 
23.25 	the special fund of the relief association exceeding the expected amount of the future fire 
23.26 	state aid to be received by the relief association as determined by the board of trustees 
23.27 	following the preparation of an updated actuarial valuation including the proposed change 
23.28 	or an estimate of the expected actuarial impact of the proposed change prepared by the 
23.29 	actuary of the relief association. If a relief association adopts or amends its articles of 
23.30 	incorporation or bylaws without municipal ratification pursuant to this subdivision, and, 
23.31 	subsequent to the amendment or adoption, the financial requirements of the special fund 
23.32 	of the relief association under this section are such so as to require financial support from 
23.33 	the municipality, the provision which was implemented without municipal ratification is 
23.34 	no longer effective without municipal ratification and any service pensions or retirement 
24.1 	benefits payable after that date may be paid only in accordance with the articles of 
24.2 	incorporation or bylaws as amended or adopted with municipal ratification.

24.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.4 	Sec. 15. Minnesota Statutes 2013 Supplement, section 424A.094, subdivision 2, 
24.5 	is amended to read:
24.6 		Subd. 2.Determination of actuarial condition and funding costs. Each 
24.7 	independent nonprofit firefighting corporation to which this section applies shall determine 
24.8 	the actuarial condition and the funding costs of the subsidiary relief association using 
24.9 	the following procedure:
24.10 	(1) An independent nonprofit firefighting corporation which has a subsidiary relief 
24.11 	association which pays a monthly benefit service pension shall procure an actuarial 
24.12 	valuation of the special fund of the subsidiary relief association at the same times and 
24.13 	in the same manner as specified in section 424A.093, subdivisions 2 and 3, and an 
24.14 	independent nonprofit firefighting corporation which has a subsidiary relief association 
24.15 	which pays a lump-sum service pension shall determine the accrued liability of the special 
24.16 	fund of the relief association in accordance with section 424A.092, subdivision 2.
24.17 	(2) The financial requirements of the special fund of the subsidiary relief association 
24.18 	which pays a monthly benefit service pension shall be determined in the same manner 
24.19 	as specified in section 424A.093, subdivision 4, and the financial requirements of the 
24.20 	special fund of the subsidiary relief association shall be determined in the same manner as 
24.21 	specified in section 424A.092, subdivision 3.
24.22 	(3) The minimum obligation of the independent nonprofit firefighting corporation on 
24.23 	behalf of the special fund of the subsidiary relief association shall be determined in the 
24.24 	same manner as specified in section 424A.092, subdivision 4, or 424A.093, subdivision 5, 
24.25 	as applicable.
24.26 	(4) The independent nonprofit firefighting corporation shall appropriate annually 
24.27 	from the income of the corporation an amount at least equal to the minimum obligation 
24.28 	of the independent nonprofit firefighting corporation on behalf of the special fund of 
24.29 	the subsidiary relief association.

24.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.31 	Sec. 16. Minnesota Statutes 2013 Supplement, section 424A.10, subdivision 2, is 
24.32 	amended to read:
25.1 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer 
25.2 	firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter 
25.3 	retirement plan of a lump-sum distribution to a qualified recipient, the association must 
25.4 	pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the 
25.5 	contrary, the relief association must pay the supplemental benefit out of its special fund 
25.6 	and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay 
25.7 	the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter 
25.8 	retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum 
25.9 	distribution that is paid on the basis of the recipient's service as a volunteer firefighter. 
25.10 	In no case may the amount of the supplemental benefit exceed $1,000. A supplemental 
25.11 	benefit under this paragraph may not be paid to a survivor of a deceased active or deferred 
25.12 	volunteer firefighter in that capacity.
25.13 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
25.14 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
25.15 	deferred volunteer firefighter, the association must pay a supplemental survivor benefit to 
25.16 	the survivor of the deceased active or deferred volunteer firefighter from the special fund 
25.17 	of the relief association and the retirement plan must pay a supplemental survivor benefit 
25.18 	to the survivor of the deceased active or deferred volunteer firefighter from the retirement 
25.19 	fund if chapter 353G so provides. The amount of the supplemental survivor benefit is 20 
25.20 	percent of the survivor benefit, but not to exceed $2,000.
25.21 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
25.22 	pretax lump-sum distribution excluding any interest that may have been credited during a 
25.23 	volunteer firefighter's period of deferral.
25.24 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
25.25 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
25.26 	firefighter benefit.

25.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.28 	Sec. 17. Minnesota Statutes 2012, section 424B.12, is amended to read:
25.29 	424B.12 MIXED CONSOLIDATING RELIEF ASSOCIATIONS; BENEFIT 
25.30 	PLAN; FUNDING.
25.31 		Subdivision 1.Applicability. This section applies where one or more of the 
25.32 	volunteer firefighters' relief associations involved in the consolidation are defined benefit 
25.33 	relief associations as defined in section 424A.001, subdivision 1b, and one or more of 
26.1 	the volunteer firefighters' relief associations involved in the consolidation are defined 
26.2 	contribution relief associations as defined in section 424A.001, subdivision 1c.
26.3 		Subd. 2.Benefit plan. The articles of incorporation or bylaws of the successor 
26.4 	relief association must specify whether the relief association is a defined benefit relief 
26.5 	association or whether the relief association is a defined contribution relief association. If 
26.6 	the successor relief association is a defined benefit relief association, the relief association 
26.7 	benefits must comply with sections 424A.02 and 424B.11, subdivision 1a 424B.10. If 
26.8 	the successor relief association is a defined contribution relief association, the relief 
26.9 	association must comply with sections 424A.016 and 424B.12 424B.11, subdivision 2.
26.10 		Subd. 3.Funding. If the successor relief association is a defined benefit relief 
26.11 	association, the relief association funding is governed by section 424B.11 424B.10, 
26.12 	subdivision 2. If the successor relief association is a defined contribution relief association, 
26.13 	the relief association funding is governed by section 424B.12 424B.11, subdivision 3.

26.14 	EFFECTIVE DATE. This section is effective the day following final enactment.