HF 428

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; creating the Minnesota 
  1.3             volunteer firefighter pension association and 
  1.4             retirement fund; requiring reports; appropriating 
  1.5             money; proposing coding for new law as Minnesota 
  1.6             Statutes, chapter 69A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [69A.01] [VOLUNTEER FIREFIGHTER PENSION 
  1.9   ASSOCIATION AND RETIREMENT FUND.] 
  1.10     Subdivision 1.  [CREATION.] There is created a Minnesota 
  1.11  volunteer firefighter pension association.  The association must 
  1.12  be incorporated. 
  1.13     Subd. 2.  [PENSION FUND.] The association shall create, 
  1.14  maintain, and administer a volunteer firefighter pension fund 
  1.15  for the benefit of volunteer firefighter relief associations as 
  1.16  defined in section 424A.001, subdivision 4, that join the 
  1.17  association under section 69A.05.  The source of revenue of the 
  1.18  fund is governed by section 69A.03.  The authorized 
  1.19  disbursements from the fund are governed by section 69A.04. 
  1.20     Subd. 3.  [MEMBERSHIP.] All volunteer firefighter relief 
  1.21  associations as defined in section 424A.001, subdivision 4, that 
  1.22  voluntarily join the association are members of the Minnesota 
  1.23  volunteer firefighter pension association. 
  1.24     Subd. 4.  [MANAGEMENT OF PENSION ASSOCIATION AND FUND.] The 
  1.25  board created in section 69A.02 shall manage and control the 
  1.26  funds and administer the benefits promised by member 
  2.1   associations. 
  2.2      Subd. 5.  [PURPOSE.] The purpose of the association is to 
  2.3   invest the assets of member volunteer firefighter relief 
  2.4   associations as defined in section 424A.001, subdivision 4, and 
  2.5   to administer the benefits provided by member associations. 
  2.6      Sec. 2.  [69A.02] [GOVERNMENT BY BOARD.] 
  2.7      Subdivision 1.  [BOARD.] The association shall be governed 
  2.8   by a board of 13 members.  The Minnesota League of Cities shall 
  2.9   appoint two members to serve an initial term of three years 
  2.10  beginning June 1, 1999.  The Minnesota association of townships 
  2.11  shall appoint one member to serve an initial term of one year 
  2.12  beginning June 1, 1999.  The Minnesota state fire chiefs 
  2.13  association shall appoint three members to serve an initial term 
  2.14  of three years beginning June 1, 1999.  The Minnesota area 
  2.15  relief association coalition shall appoint three members to 
  2.16  serve an initial term of three years beginning June 1, 1999.  
  2.17  The Minnesota fire department association shall appoint three 
  2.18  members to serve an initial term of three years beginning June 
  2.19  1, 1999.  The state auditor shall serve on the board.  After the 
  2.20  initial three-year appointments, each organization shall 
  2.21  continue to appoint three members every three years thereafter.  
  2.22  Appointments shall be filed with the secretary of state.  The 
  2.23  board will elect a president, vice-president, secretary, and 
  2.24  treasurer at its first meeting. 
  2.25     Subd. 2.  [ARTICLES OF INCORPORATION; BYLAWS.] The affairs 
  2.26  of the association must be regulated by its articles of 
  2.27  incorporation and bylaws. 
  2.28     Subd. 3.  [COMPENSATION.] Members of the board are entitled 
  2.29  to receive compensation of $50 for each day when a member 
  2.30  attends one or more meetings as authorized by the board and 
  2.31  shall be reimbursed for actual and necessary expenses incurred 
  2.32  in the performance of duties. 
  2.33     Subd. 4.  [STATUS AS A PUBLIC PENSION FUND.] The 
  2.34  association is a public pension fund under Minnesota law and is 
  2.35  governed by laws applicable to public pension funds.  Chapter 
  2.36  356A governs the activities of the association and the board. 
  3.1      Subd. 5.  [DEPOSITORY.] The board shall deposit state 
  3.2   appropriations or plan assets with a nationally recognized 
  3.3   qualified trust institution. 
  3.4      Sec. 3.  [69A.03] [SOURCE OF FUNDS.] 
  3.5      Subdivision 1.  [SOURCES.] The fund is derived from the 
  3.6   following sources: 
  3.7      (1) assets of member volunteer firefighter relief 
  3.8   associations who voluntarily join the association under section 
  3.9   69A.05; 
  3.10     (2) all money derived from taxation as provided in chapter 
  3.11  69 for member volunteer firefighter relief associations and 
  3.12  independent nonprofit firefighting corporations; 
  3.13     (3) all money received from the state amortization aid 
  3.14  program for member volunteer firefighter relief associations and 
  3.15  independent nonprofit firefighting corporations under section 
  3.16  423A.02; 
  3.17     (4) all money received by member volunteer firefighter 
  3.18  relief associations and independent nonprofit firefighting 
  3.19  corporations from the state under chapter 69, as state fire aid; 
  3.20     (5) all money provided by the state for the associations 
  3.21  under section 69A.08; 
  3.22     (6) all money derived from taxation by a municipality or 
  3.23  other entity for support of member volunteer firefighter relief 
  3.24  associations and independent nonprofit firefighting corporations 
  3.25  and the payment of pensions and benefits; and 
  3.26     (7) money from the investment of earnings on and interest 
  3.27  on the assets of the fund. 
  3.28     Subd. 2.  [CONTINUATION OF ASSETS.] Assets remaining in the 
  3.29  fund at the close of a fiscal year continue. 
  3.30     Sec. 4.  [69A.04] [AUTHORIZED FUND DISBURSEMENTS.] 
  3.31     Notwithstanding any law to the contrary, the payment of the 
  3.32  following necessary, reasonable, and direct expenses of 
  3.33  maintaining, protecting, and administering the association and 
  3.34  the fund, when provided for in the bylaws of the association and 
  3.35  approved by the board of trustees, shall constitute authorized 
  3.36  administrative expenses of the association: 
  4.1      (1) service, disability, or dependency pensions promised by 
  4.2   member volunteer firefighter relief associations and independent 
  4.3   nonprofit firefighting corporations; 
  4.4      (2) expenses of officers and employees of the association 
  4.5   in connection with protection of the fund; 
  4.6      (3) expenses of operating and maintaining the association; 
  4.7      (4) office expense including, but not limited to, rent, 
  4.8   utilities, equipment, supplies, postage, periodical 
  4.9   subscriptions, furniture, fixtures, and salaries of 
  4.10  administrative personnel; 
  4.11     (5) compensation of board members and employees of the 
  4.12  association and their itemized expenses incurred as a result of 
  4.13  fulfilling their responsibilities as trustees or administrators 
  4.14  of the fund; 
  4.15     (6) tuition, registration fees, organizational dues, and 
  4.16  other authorized expenses of the officers, employees, or members 
  4.17  of the board of trustees incurred in attending educational 
  4.18  conferences, seminars, or classes relating to the administration 
  4.19  of the relief association; 
  4.20     (7) audit, actuarial, medical, legal, and investment and 
  4.21  performance evaluation expenses; 
  4.22     (8) reimbursement to the officers, employees, and members 
  4.23  of the board of trustees, or their designees, for reasonable and 
  4.24  necessary expenses actually paid and incurred in the performance 
  4.25  of their duties as officers or members of the board; and 
  4.26     (9) premiums on fiduciary liability insurance and official 
  4.27  bonds for the officers, members of the board of trustees, and 
  4.28  employees of the relief association. 
  4.29     Sec. 5.  [69A.05] [MEMBERS.] 
  4.30     Subdivision 1.  [VOLUNTARY MEMBERSHIP.] Any volunteer 
  4.31  firefighter relief association as defined in section 424A.001, 
  4.32  subdivision 4, or independent nonprofit firefighting corporation 
  4.33  may join the association after December 31, 2000.  Membership is 
  4.34  strictly voluntary on the part of a volunteer firefighter relief 
  4.35  association. 
  4.36     Subd. 2.  [APPLICATION.] A volunteer firefighter relief 
  5.1   association as defined in section 424A.001, subdivision 4, may 
  5.2   apply to the governing board of the association for membership 
  5.3   on a form created by the association.  The volunteer firefighter 
  5.4   relief association must certify that the application has been 
  5.5   approved by at least two-thirds of its board of trustees and 
  5.6   two-thirds of its active and retired members who currently 
  5.7   receive or who may be entitled to receive a pension from the 
  5.8   volunteer firefighter relief association. 
  5.9      Subd. 3.  [TRANSFER OF ASSETS AND PLAN ADMINISTRATION.] 
  5.10  Upon approval of the application under subdivision 2, the assets 
  5.11  and administration of plan benefits of the applying volunteer 
  5.12  firefighter relief association shall be transferred to the 
  5.13  association. 
  5.14     Subd. 4.  [CONTINUATION OF RELIEF ASSOCIATION AND NONPROFIT 
  5.15  SERVICE CORPORATION.] A volunteer firefighter relief association 
  5.16  that became a member of the association shall continue and 
  5.17  retain all powers and duties except those relating to investment 
  5.18  of plan assets and the administration of plan benefits.  
  5.19  Volunteer firefighter relief associations that are members of 
  5.20  the association are not required to file reports under section 
  5.21  69.051. 
  5.22     Sec. 6.  [69A.06] [PLAN ADMINISTRATION.] 
  5.23     Subdivision 1.  [INVESTMENT OF ASSETS.] The board created 
  5.24  in section 69A.02 may invest the assets of the fund in 
  5.25  permissible investments under section 356A.06.  The board may 
  5.26  also invest some or all of its assets with the state board of 
  5.27  investment. 
  5.28     Subd. 2.  [PAYMENT OF BENEFITS.] The board created in 
  5.29  section 69A.02 shall establish a system for paying benefits 
  5.30  promised by volunteer firefighter relief associations.  The 
  5.31  board may hire staff and retain other necessary services to pay 
  5.32  benefits or retain the services of an existing public retirement 
  5.33  association to provide these services. 
  5.34     Sec. 7.  [69A.07] [IMPROVED BENEFITS.] 
  5.35     Subdivision 1.  [ENHANCEMENT.] Any volunteer firefighter 
  5.36  relief association that joins the association shall be entitled 
  6.1   to an improved benefit.  The governing board shall determine the 
  6.2   amount of the enhanced benefit based on the appropriation in 
  6.3   section 69A.08 and other appropriate factors. 
  6.4      Subd. 2.  [DETERMINATION.] By January 1, 2000, the 
  6.5   governing board of the association shall prepare a report to the 
  6.6   legislature which shall include: 
  6.7      (1) a study conducted by the department of administration 
  6.8   management analysis division of volunteer firefighter relief 
  6.9   associations on the interest of volunteer firefighter relief 
  6.10  associations or fire departments without relief associations in 
  6.11  becoming members of the association and other matters of concern 
  6.12  to those associations, their members, and municipalities; 
  6.13     (2) a report from the actuary retained by the association 
  6.14  on the ability of the association to provide enhanced benefits 
  6.15  through a combination of the appropriation provided in section 
  6.16  69A.08 and a change in the actuarial valuation of plan assets or 
  6.17  benefit obligations.  The actuarial report shall develop 
  6.18  recommendations to the association and the legislature on how to 
  6.19  accomplish a benefit improvement for the volunteer firefighter 
  6.20  relief association who could join the association; and 
  6.21     (3) the recommendation from the governing board of the 
  6.22  association on the feasibility of implementing the operation of 
  6.23  the association and, if necessary, legislative changes necessary 
  6.24  to ensure the proper operation of the association and changes 
  6.25  needed to implement improved benefits for member associations.  
  6.26  The state auditor shall cooperate with the board in providing 
  6.27  information necessary for the reports. 
  6.28     Sec. 8.  [69A.08] [APPROPRIATION.] 
  6.29     Subdivision 1.  [INITIAL APPROPRIATION.] $250,000 is 
  6.30  appropriated from the general fund to the association created by 
  6.31  section 69A.01 for the biennium ending June 30, 2001, to 
  6.32  establish the association and prepare the reports required by 
  6.33  section 69A.07. 
  6.34     Subd. 2.  [PERMANENT APPROPRIATION.] $....... is annually 
  6.35  appropriated from the general fund to the association beginning 
  6.36  December 31, 2000, and continuing annually thereafter. 
  7.1      Sec. 9.  [EFFECTIVE DATE.] 
  7.2      Sections 1 to 8 are effective the day following final 
  7.3   enactment.