SF 4767
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/17/2026 08:41 a.m.
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A bill for an act
relating to retirement; firefighters relief associations; phasing in shorter vesting
schedules for defined contribution and defined benefit firefighters relief
associations; amending Minnesota Statutes 2024, sections 424A.016, subdivision
3; 424A.02, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 424A.016, subdivision 3, is amended to read:
Subd. 3.
Vesting schedule.
new text begin (a) new text end If the articles of incorporation or bylaws of a defined
contribution relief association provide a vesting schedule that satisfies the requirements of
this subdivision, the relief association may pay a reduced service pension to a retiring
member. For purposes of this section, "vests," "vesting," or "vested" means a nonforfeitable,
unconditional, or legally enforceable right. A member vests in the member's account in
accordance with the vesting schedule set forth in the relief association's articles of
incorporation or bylaws. Provided a member meets the minimum age and service
requirements of subdivision 2, the member is entitled to a service pension equal to the
member's account, but only to the extent vested as provided in the vesting schedule set forth
in the articles of incorporation or bylaws. deleted text begin In no event may the articles of incorporation or
bylaws:
deleted text end
deleted text begin
(1) require that a member have more than 20 years of active service to become 100
percent vested in the member's account; or
deleted text end
deleted text begin
(2) provide for a larger vesting percentage than is provided in the following schedule
with respect to the completed number of years of active service indicated in the schedule:
deleted text end
|
deleted text begin
Completed Years of Active Service deleted text end |
deleted text begin
Vested Percentage of Pension Amount deleted text end |
|
|
deleted text begin
5 deleted text end |
deleted text begin
40 percent deleted text end |
|
|
deleted text begin
6 deleted text end |
deleted text begin
52 percent deleted text end |
|
|
deleted text begin
7 deleted text end |
deleted text begin
64 percent deleted text end |
|
|
deleted text begin
8 deleted text end |
deleted text begin
76 percent deleted text end |
|
|
deleted text begin
9 deleted text end |
deleted text begin
88 percent deleted text end |
|
|
deleted text begin
10 deleted text end |
deleted text begin
or more deleted text end |
deleted text begin
100 percent deleted text end |
new text begin
(b) The vesting schedule in the articles of incorporation or bylaws must not require more
active service than the following:
new text end
new text begin
(1) through December 31, 2027, 20 years of active service to become 100 percent vested,
with each member vesting in four percent increments for each completed year of active
service, beginning with 40 percent upon completion of five years of active service;
new text end
new text begin
(2) beginning on January 1, 2028, through December 31, 2029, 15 years of active service
to become 100 percent vested, with each member vesting in six percent increments for each
completed year of active service, beginning with 40 percent upon completion of five years
of active service; and
new text end
new text begin
(3) beginning on January 1, 2029, ten years of active service to become 100 percent
vested, with each member vesting in 12 percent increments for each completed year of
active service, beginning with 40 percent upon completion of five years of active service.
new text end
Sec. 2.
Minnesota Statutes 2024, section 424A.02, subdivision 2, is amended to read:
Subd. 2.
Vesting schedule.
new text begin (a)new text end If the articles of incorporation or bylaws of a defined
benefit relief association provide a vesting schedule that satisfies the requirements of this
subdivision, the relief association may pay a reduced service pension to a retiring member.
For purposes of this section, "vests," "vesting," or "vested" means a nonforfeitable,
unconditional, or legally enforceable right. A member vests in the member's accrued service
pension in accordance with the vesting schedule set forth in the relief association's articles
of incorporation or bylaws. Provided a member meets the minimum age and service
requirements of subdivision 1, the member is entitled to the member's accrued service
pension, but only to the extent vested as provided in the vesting schedule set forth in the
articles of incorporation or bylaws. deleted text begin In no event may the articles of incorporation or bylaws:
deleted text end
deleted text begin
(1) require that a member have more than 20 years of active service to become 100
percent vested in the member's accrued service pension; or
deleted text end
deleted text begin
(2) provide for a larger vesting percentage than is provided in the following schedule
with respect to the completed number of years of active service indicated in the schedule:
deleted text end
|
deleted text begin
Completed Years of Active Service deleted text end |
deleted text begin
Vested Percentage of Pension Amount deleted text end |
|
|
deleted text begin
5 deleted text end |
deleted text begin
40 percent deleted text end |
|
|
deleted text begin
6 deleted text end |
deleted text begin
52 percent deleted text end |
|
|
deleted text begin
7 deleted text end |
deleted text begin
64 percent deleted text end |
|
|
deleted text begin
8 deleted text end |
deleted text begin
76 percent deleted text end |
|
|
deleted text begin
9 deleted text end |
deleted text begin
88 percent deleted text end |
|
|
deleted text begin
10 deleted text end |
deleted text begin
or more deleted text end |
deleted text begin
100 percent deleted text end |
new text begin
(b) The vesting schedule in the articles of incorporation or bylaws must not require more
active service than the following:
new text end
new text begin
(1) through December 31, 2027, 20 years of active service to become 100 percent vested,
with each member vesting in four percent increments for each completed year of active
service, beginning with 40 percent upon completion of five years of active service;
new text end
new text begin
(2) beginning on January 1, 2028, through December 31, 2029, 15 years of active service
to become 100 percent vested, with each member vesting in six percent increments for each
completed year of active service, beginning with 40 percent upon completion of five years
of active service; and
new text end
new text begin
(3) beginning on January 1, 2029, ten years of active service to become 100 percent
vested, with each member vesting in 12 percent increments for each completed year of
active service, beginning with 40 percent upon completion of five years of active service.
new text end
Sec. 3. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 and 2 are effective the day following final enactment.
new text end