HF 2395

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/02/2025 12:32 p.m.

A bill for an act
relating to retirement; firefighters relief associations; increasing the maximum
lump-sum service pension amount for each year of service credited; amending
Minnesota Statutes 2024, section 424A.02, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, 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 deleted text begin $15,000 deleted text end new text begin $20,000 new text end 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 deleted text begin $15,000 deleted text end new text begin
$20,000 new text end .

(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 and paid on-call firefighter 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 the day following final enactment.
new text end