SF 3828

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/24/2026 10:15 a.m.

A bill for an act
relating to retirement; Public Employees Retirement Association statewide volunteer
firefighter plan; Maple Plain fire department; modifying the procedures for
terminating participation in the statewide volunteer firefighter plan by the Maple
Plain fire department; requiring the executive director of the Public Employees
Retirement Association to allocate the surplus of plan assets over liabilities to
firefighters in the Maple Plain fire department in a two-stage allocation.

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

Section 1.

new text begin INVESTMENT OF THE ASSETS OF THE MAPLE PLAIN FIRE
DEPARTMENT IN LOW-RISK INVESTMENTS.
new text end

new text begin No later than ten days after the effective date of this section, the executive director of
the Public Employees Retirement Association must direct the State Board of Investment to
re-invest the assets in the account of the Maple Plain fire department in low-risk investments
to minimize the risk of investment losses between the effective date and the date of
distribution of the assets.
new text end

Sec. 2.

new text begin TERMINATION PROCESS AND ALLOCATION OF SURPLUS UPON
TERMINATION FROM THE STATEWIDE VOLUNTEER FIREFIGHTER PLAN.
new text end

new text begin (a) Paragraphs (b) to (f) apply, in lieu of Minnesota Statutes, section 353G.18, subdivision
4, to the termination of the participation of the Maple Plain fire department in the statewide
volunteer firefighter plan.
new text end

new text begin (b) The participation of the Maple Plain fire department in the statewide volunteer
firefighter plan and the coverage of the departing firefighters as defined under Minnesota
Statutes, section 353G.18, subdivision 2, must cease as of the date the requirements of this
section are completed and all assets credited to the account of the Maple Plain fire department
are distributed.
new text end

new text begin (c) To terminate the participation of the Maple Plain fire department in the statewide
volunteer firefighter plan, the governing board of the city of Maple Plain must adopt the
resolutions under Minnesota Statutes, section 353G.18, subdivision 5, and deliver the
resolutions to the executive director of the Public Employees Retirement Association.
new text end

new text begin (d) The executive director must:
new text end

new text begin (1) fully vest all departing firefighters as of the termination date identified by the
governing board in the resolutions under Minnesota Statutes, section 353G.18, subdivision
5, and consider each departing firefighter 100 percent vested in the pension benefit accrued
by the departing firefighter under the fire department's account as of the termination date;
new text end

new text begin (2) determine the present value of each departing firefighter's accrued benefit as of the
termination date, taking into account the benefit level under Minnesota Statutes, section
353G.11, or otherwise in effect for the departing firefighter as determined by the executive
director;
new text end

new text begin (3) determine, as of the termination date, the value of accrued liabilities, including
administrative expenses incurred or reasonably anticipated to be incurred through the
distribution date, and the value of assets attributable to the fire department's account; and
new text end

new text begin (4) as required by section 1, continue to minimize the risk of investment losses by
investing the assets credited to the fire department's account in low-risk investments.
new text end

new text begin (e) If the fire department's account has assets in excess of accrued liabilities, the executive
director must allocate the excess among all departing firefighters in accordance with the
following process:
new text end

new text begin (1) In the first stage, the executive director must allocate a portion of the surplus to each
departing firefighter who has not yet reached age 50 equal to the departing firefighter's years
of service multiplied by the benefit level under Minnesota Statutes, section 353G.11, or
otherwise in effect for the departing firefighter as determined by the executive director,
minus the present value of the departing firefighter's accrued benefit determined under
paragraph (d), clause (2).
new text end

new text begin (2) In the second stage, the executive director must allocate the surplus remaining, if
any, after the allocation under clause (1) to each departing firefighter in the same proportion
that the departing firefighter's years of service bears to the total years of service credited to
all departing firefighters. Each departing firefighter's benefit, as determined under paragraph
(d), clause (2), and, if applicable, as increased under clause (1), must be increased by the
departing firefighter's share of any remaining surplus.
new text end

new text begin (3) If, in the first stage, there is not sufficient surplus to provide an allocation to each
departing firefighter who has not yet reached age 50 as directed in clause (1), the executive
director must reduce the amount of the surplus allocated to each departing firefighter who
has not yet reached age 50 by reducing the benefit level used in clause (1) to a benefit level
that when multiplied by the years of service of each departing firefighter who has not yet
reached age 50, the surplus is exhausted and the same benefit level is used to compute the
allocation of surplus to each departing firefighter who has not yet reached age 50.
new text end

new text begin (f) The executive director must, as soon as practicable after the termination date, distribute
to each departing firefighter, regardless of whether the departing firefighter has attained
age 50, the firefighter's benefit as calculated by the executive director under paragraphs (d)
and (e). The distribution must be made in a lump sum, either as a payment to the departing
firefighter or as a direct rollover, if elected by the firefighter. If the departing firefighter is
deceased, then the firefighter's benefit must be paid to the firefighter's survivor under
Minnesota Statutes, section 353G.12, or as a direct rollover, if elected by the survivor.
new text end

new text begin (g) The executive director must pay supplemental benefits under Minnesota Statutes,
section 424A.10, but only to the extent that the executive director is entitled to reimbursement
under Minnesota Statutes, section 424A.10, subdivision 3.
new text end

Sec. 3.

new text begin REMAINING PROVISIONS OF SECTION 353G.18 APPLY.
new text end

new text begin Minnesota Statutes, section 353G.18, subdivisions 1 to 3 and 5, apply to the termination
of the participation of the Maple Plain fire department in the statewide volunteer firefighter
plan.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end