HF 2192

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/15/2021 03:08pm

A bill for an act
relating to retirement; Ramsey Volunteer Firefighters' Relief Association; full
vesting and distribution of accounts to firefighters assigned to the Nowthen fire
station; repealing Laws 2020, chapter 108, article 14, section 1.

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

Section 1. new text begin VESTING AND DISTRIBUTION OF NOWTHEN FIREFIGHTERS'
ACCOUNTS IN THE RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Account" means the account established for a member
under the Ramsey relief association, to which an allocation of fire state aid, supplemental
aid, contributions, forfeitures, interest, and investment earnings or losses have been credited
for every year the member was eligible to receive such allocation under the bylaws of the
Ramsey relief association.
new text end

new text begin (b) "Nowthen firefighter" means a firefighter (1) who is or was an employee of the city
of Ramsey assigned to the Nowthen fire station on March 31, 2021; (2) who has an account
in the Ramsey relief association; and (3) whose employment is or was terminated by the
city of Ramsey in 2021.
new text end

new text begin (c) "Ramsey relief association" means the Ramsey Volunteer Firefighters' Relief
Association.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility for allocation, full vesting, and immediate access to
accounts. new text end

new text begin Notwithstanding any laws or provisions in the bylaws or articles of incorporation
of the Ramsey relief association to the contrary:
new text end

new text begin (1) Any Nowthen firefighter whose employment with the city of Ramsey terminates
during 2021 shall be considered as having worked 12 months of active service for 2021 and
as having the status of active member of the association in good standing on December 31,
2021, for purposes of (i) allocating fire state aid, supplemental aid, contributions, forfeitures,
interest, and investment earnings or losses; and (ii) deducting administrative expenses.
new text end

new text begin (2) The account of each Nowthen firefighter in the Ramsey relief association shall
become 100 percent vested as of the date on which the Nowthen firefighter's employment
with the city of Ramsey is or was terminated.
new text end

new text begin (3) The Nowthen firefighter shall be entitled to elect an immediate distribution of the
Nowthen firefighter's account in the Ramsey relief association, which distribution may be
paid, at the election of the Nowthen firefighter, in a lump sum directly to the Nowthen
firefighter or in a direct rollover to an eligible retirement plan, as defined in Minnesota
Statutes, section 356.635, subdivision 6, designated by the Nowthen firefighter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin FIRE STATE AID FOR NOWTHEN.
new text end

new text begin For the purposes of fire state aid payable in 2022 under Minnesota Statutes, chapter
477B, the city of Nowthen will be considered as having satisfied the requirement under
Minnesota Statutes, section 477B.02, subdivision 2, paragraph (b), to have provided
firefighting services for at least one calendar year, if the city of Nowthen provides
documentation of its fire department being in operation no later than December 31, 2021,
to the commissioner of revenue no later than February 1, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin PARTICIPATION IN THE PERA STATEWIDE VOLUNTEER
FIREFIGHTER PLAN.
new text end

new text begin Notwithstanding Minnesota Statutes, section 353G.05, subdivision 5, paragraph (c),
coverage by the statewide volunteer firefighter plan of the volunteer firefighters employed
by the city of Nowthen shall be effective on the date an election of coverage by the statewide
volunteer firefighter plan is approved by the governing board of the city of Nowthen or, if
later, on the date that the city of Nowthen satisfies all other requirements for coverage by
the statewide volunteer firefighter plan under Minnesota Statutes, section 353G.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Laws 2020, chapter 108, article 14, section 1, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Session Laws: 21-03410

Laws 2020, chapter 108, article 14, section 1

Section 1. new text begin DIVISION OF RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF ASSOCIATION. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this section have the meanings given them. new text end

new text begin (b) "Account balance" means the account established for a member under the Ramsey relief association, to which an allocation of fire state aid, contributions, forfeitures, and net investment earnings have been credited for every year the member was eligible to receive such funding under the bylaws of the Ramsey relief association. new text end

new text begin (c) "Inactive or deferred Nowthen firefighter" means a Ramsey firefighter who, when the firefighter was an active firefighter, was assigned to the Nowthen fire station and whose account in the Ramsey relief association has not yet been distributed or forfeited as provided under the bylaws of the Ramsey relief association. new text end

new text begin (d) "Joint powers agreement" means the city of Ramsey and city of Nowthen joint powers fire protection agreement. new text end

new text begin (e) "Nowthen firefighter" means a firefighter who is a member of the Ramsey relief association and who is hired to provide firefighting services to the city of Nowthen by the city of Nowthen or a municipality with which the city of Nowthen enters into a joint powers agreement or an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen. new text end

new text begin (f) "Nowthen relief association" means a volunteer firefighters relief association to be established by the city of Nowthen or a volunteer firefighters relief association affiliated with a municipality with which the city of Nowthen enters into a joint powers agreement or a volunteer firefighters relief association affiliated with an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen or an account in the Public Employees Retirement Association statewide volunteer firefighter plan, as directed by the city of Nowthen. new text end

new text begin (g) "Other benefit recipient of a Nowthen firefighter" means: new text end

new text begin (1) a person who is entitled to receive all or a portion of a Nowthen firefighter's account under the Ramsey relief association due to the person having one of the following relationships to the Nowthen firefighter: new text end

new text begin (i) surviving spouse; new text end

new text begin (ii) former spouse who is the alternate payee under a state domestic relations order that meets the requirements of section 414(p) of the federal Internal Revenue Code of 1986, as amended, or who is a recipient of a court-ordered distribution of marital property, as provided in Minnesota Statutes, section 518.58; or new text end

new text begin (iii) nonspousal beneficiary; or new text end

new text begin (2) the estate of a Nowthen firefighter. new text end

new text begin (h) "Ramsey firefighter" means a firefighter who is or was an employee of the city of Ramsey, is a member of the Ramsey relief association, and provides or provided firefighting services to the city of Ramsey or the city of Nowthen. new text end

new text begin (i) "Ramsey relief association" means the city of Ramsey Volunteer Firefighters' Relief Association. new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies, notwithstanding any provision of Minnesota Statutes, chapter 424A or 424B, if all of the following occurs: new text end

new text begin (1) the joint powers agreement expires or is terminated by either party; new text end

new text begin (2) the city of Nowthen establishes a fire department or enters into a joint powers agreement with another municipality to provide firefighting services for the city of Nowthen or enters into an agreement with an independent nonprofit firefighting corporation to provide firefighting services to the city of Nowthen; new text end

new text begin (3) the city of Nowthen establishes a volunteer firefighters relief association or the municipality with which the city of Nowthen enters into a joint powers agreement is affiliated with a volunteer firefighters relief association or the independent nonprofit firefighting corporation with which the city of Nowthen enters into an agreement to provide firefighting services for the city of Nowthen is affiliated with a volunteer firefighters relief association or the city of Nowthen joins the Public Employees Retirement Association statewide volunteer firefighter plan; and new text end

new text begin (4) the Nowthen relief association includes as members one or more firefighters whose employment with the city of Ramsey terminates on or before December 31, 2021, and who are hired as firefighters by: new text end

new text begin (i) the city of Nowthen; new text end

new text begin (ii) a municipality with which the city of Nowthen enters into a joint powers agreement; or new text end

new text begin (iii) an independent nonprofit firefighting corporation that provides firefighting services to the city of Nowthen. new text end

new text begin Subd. 3. new text end

new text begin Transfer of Nowthen firefighter accounts. new text end

new text begin (a) By the sixtieth day after the satisfaction of the conditions described in subdivision 2, the Ramsey relief association shall transfer to the Nowthen relief association the account balance for each Nowthen firefighter, each inactive or deferred Nowthen firefighter, and any other benefit recipient of a Nowthen firefighter in accordance with this subdivision. new text end

new text begin (b) If the city of Ramsey terminates the employment of one or more firefighters who become Nowthen firefighters during 2020, the Ramsey relief association shall transfer, by the end of February 2021, the account balances for each Nowthen firefighter, each inactive or deferred Nowthen firefighter, and each other benefit recipient of a Nowthen firefighter. The transfers shall occur after the accounting has been completed for the 2020 calendar year and all fire state aid, contributions, forfeitures, net investment income, and administrative expenses during 2020 and as of the 2020 calendar year end have been credited, in accordance with the bylaws of the Ramsey relief association. Notwithstanding any provision in the bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is terminated during 2020 shall be considered for purposes of allocating fire state aid, contributions, and forfeitures as having worked 12 active service months for 2020. new text end

new text begin (c) If the city of Ramsey terminates the employment of one or more firefighters who become Nowthen firefighters during 2021, the Ramsey relief association shall transfer, by the end of February 2022, the account balances for each Nowthen firefighter and for any inactive or deferred Nowthen firefighter and any other benefit recipient of a Nowthen firefighter whose account balance was not transferred under paragraph (b) in 2021. The transfers shall occur after the accounting has been completed for the 2021 calendar year and all fire state aid, contributions, forfeitures, net investment income, and administrative expenses during 2021 and as of the 2021 calendar year end have been credited, in accordance with the bylaws of the Ramsey relief association. Notwithstanding any provision in the bylaws of the Ramsey relief association, a Nowthen firefighter whose employment is terminated during 2021 shall be considered for purposes of allocating fire state aid, contributions, and forfeitures as having worked 12 active service months for 2021. new text end

new text begin (d) The transfer of account balances under this subdivision shall be considered authorized disbursements from the special fund of the Ramsey relief association for purposes of Minnesota Statutes, section 424A.05, subdivision 3. new text end

new text begin (e) The Ramsey relief association shall transfer records to the Nowthen relief association regarding service, vesting service, and account activity for each Nowthen firefighter, inactive or deferred Nowthen firefighter, or other benefit recipient whose account balance is transferred. new text end

new text begin Subd. 4. new text end

new text begin Relief association general fund assets. new text end

new text begin When the Ramsey relief association transfers the account balances under subdivision 3, the Ramsey relief association shall also transfer a proportionate share of the assets in the general fund of the Ramsey relief association to the general fund of the Nowthen relief association. The proportion shall be equal to the ratio that the total value of the account balances transferred to the Nowthen relief association bears to the total value of all account balances in the Ramsey relief association on the day immediately preceding the date of transfer. new text end

new text begin Subd. 5. new text end

new text begin Fire state aid. new text end

new text begin If subdivision 3, paragraph (b), applies, the city of Ramsey shall transfer to the city of Nowthen a portion of the 2021 fire state aid received by the city of Ramsey on or about October 1, 2021, based on 2020 property value and population. The portion to be transferred shall be equal to the amount determined by the commissioner of revenue to be attributable to the estimated market value of property and population in the city of Nowthen fire service area, as a percentage of the total fire state aid paid to the city of Ramsey on or about October 1, 2021. new text end

new text begin Subd. 6. new text end

new text begin Service credit under the Nowthen relief association. new text end

new text begin The Nowthen relief association shall credit each firefighter whose account balance is transferred from the Ramsey relief association to the Nowthen relief association with the same number of years of service credit with which the firefighter had been credited under the Ramsey relief association for vesting and any other purpose for which service credit is granted. Such service credit shall be applied to retain the firefighter's vesting percentage in the account balance that was transferred and shall be applied toward the firefighter's vesting percentage in all funds allocated to the firefighter's account in the Nowthen relief association after the transfer. new text end

new text begin Subd. 7. new text end

new text begin Full vesting of certain Ramsey firefighters. new text end

new text begin (a) This subdivision applies to any Ramsey firefighter: new text end

new text begin (1) who is assigned to the Nowthen fire station; new text end

new text begin (2) whose employment is terminated by the city of Ramsey on or before December 31, 2021; and new text end

new text begin (3) who is not hired by the city of Nowthen. new text end

new text begin (b) Notwithstanding any law or provision in the bylaws of the Ramsey relief association, the Ramsey relief association shall fully (100 percent) vest the Ramsey firefighter in the firefighter's account in the Ramsey relief association as of the date the Ramsey firefighter's employment is terminated. new text end

new text begin (c) The Ramsey firefighter shall be considered an inactive or deferred Nowthen firefighter for all purposes under subdivision 3. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end