HF 2218

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:27pm

A bill for an act
relating to retirement; volunteer firefighter relief associations; implementing
the recommendations of the 2013-2014 state auditor volunteer fire working
group; amending Minnesota Statutes 2012, sections 356A.06, subdivisions 7,
7a; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.08;
424B.12; Minnesota Statutes 2013 Supplement, sections 69.051, subdivisions 1a,
3; 424A.016, subdivision 6; 424A.02, subdivisions 3, 7; 424A.092, subdivision
6; 424A.093, subdivisions 2, 6; 424A.094, subdivision 2; 424A.10, subdivision 2.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 69.051, subdivision 1a,
is amended to read:

Subd. 1a.

Financial statement.

(a) The board of each volunteer firefighters relief
association, as defined in section 424A.001, subdivision 4, that is not required to file a
financial report and audit under subdivision 1 must prepare a detailed statement of the
financial affairs for the preceding fiscal year of the relief association's special and general
funds in the style and form prescribed by the state auditor. The detailed statement must
show:

(1) the sources and amounts of all money received;

(2) all disbursements, accounts payable and accounts receivable;

(3) the amount of money remaining in the treasury;

(4) total assets, including a listing of all investments;

(5) the accrued liabilities; and

(6) all other items necessary to show accurately the revenues and expenditures and
financial position of the relief association.

(b) The detailed financial statement required under paragraph (a) must be certified
by deleted text begin an independent deleted text end new text begin a certified new text end public accountant or new text begin by the state new text end auditor deleted text begin or by the auditor or
accountant who regularly examines or audits the financial transactions of the municipality deleted text end .
In addition to certifying the financial condition of the special and general funds of the relief
association, the accountant or auditor conducting the examination shall give an opinion
as to the condition of the special and general funds of the relief association, and shall
comment upon any exceptions to the report. The deleted text begin independent deleted text end accountant deleted text begin or auditor deleted text end must
have at least five years of public accounting, auditing, or similar experience, and must not
be an active, inactive, or retired member of the relief association or the fire department.

(c) The detailed statement required under paragraph (a) must be countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality; or

(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
municipality in population which contracts with the independent nonprofit firefighting
corporation if the relief association is a subsidiary of an independent nonprofit firefighting
corporation and by the secretary of the independent nonprofit firefighting corporation; or

(3) by the chief financial official of the county in which the volunteer firefighter
relief association is located or primarily located if the relief association is associated with
a fire department that is not located in or associated with an organized municipality.

(d) The volunteer firefighters' relief association board must file the detailed statement
required under paragraph (a) in the relief association office for public inspection and
present it to the governing body of the municipality within 45 days after the close of the
fiscal year, and must submit a copy of the detailed statement to the state auditor within 90
days of the close of the fiscal year.

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.

Minnesota Statutes 2013 Supplement, section 69.051, subdivision 3, is
amended to read:

Subd. 3.

Report by certain municipalities new text begin ; exceptions new text end .

(a) The chief
administrative officer of each municipality which has an organized fire department but
which does not have a firefighters' relief association governed by section 69.77 or sections
424A.091 to 424A.095 and which is not exempted under paragraph (b) new text begin or (c) new text end shall annually
prepare a detailed financial report of the receipts and disbursements by the municipality
for fire protection service during the preceding calendar year on a form prescribed by the
state auditor. The financial report must contain any information which the state auditor
deems necessary to disclose the sources of receipts and the purpose of disbursements for
fire protection service. The financial report must be signed by the municipal clerk or
clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk
or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does
not qualify initially to receive, and is not entitled subsequently to retain, state aid under
this chapter if the financial reporting requirement or the applicable requirements of this
chapter or any other statute or special law have not been complied with or are not fulfilled.

(b) Each municipality that has an organized fire department and provides retirement
coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
retained in the statewide lump-sum volunteer firefighter retirement fund without filing
a detailed financial report if the executive director of the Public Employees Retirement
Association certifies compliance by the municipality with the requirements of sections
353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief
with the requirements of section 353G.07.

new text begin (c) Each municipality qualifies to receive fire state aid under this chapter without
filing a financial report under paragraph (a) if the municipality:
new text end

new text begin (1) has an organized fire department;
new text end

new text begin (2) does not have a volunteer firefighters relief association directly associated with
its fire department;
new text end

new text begin (3) does not participate in the statewide lump-sum volunteer firefighter retirement
plan under chapter 353G;
new text end

new text begin (4) provides retirement coverage to its firefighters through the public employees
police and fire retirement plan under sections 353.63 to 353.68; and
new text end

new text begin (5) is certified by the executive director of the Public Employees Retirement
Association to the state auditor to have had an employer contribution under section
353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to
or greater than its fire state aid for the immediately prior calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to fire state aid payable on October 1, 2014.
new text end

Sec. 3.

Minnesota Statutes 2012, section 356A.06, subdivision 7, is amended to read:

Subd. 7.

Expanded list of authorized investment securities.

(a) Authority. A
covered pension plan not described by subdivision 6, paragraph (a), is an expanded list
plan and shall invest its assets as specified in this subdivision. The governing board of an
expanded list plan may select and appoint investment agencies to act for or on its behalf.

(b) Securities generally; investment forms. An expanded list plan is authorized
to purchase, sell, lend, and exchange the investment securities authorized under this
subdivision, including puts and call options and future contracts traded on a contract
market regulated by a governmental agency or by a financial institution regulated by
a governmental agency. These securities may be owned directly or through shares
in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
limitations specified in this subdivision.

(c) Government obligations. An expanded list plan is authorized to invest funds in
governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the
issue is backed by the full faith and credit of the issuer or the issue is rated among the top
four quality rating categories by a nationally recognized rating agency. The obligations in
which funds may be invested under this paragraph are guaranteed or insured issues of:

(1) the United States, one of its agencies, one of its instrumentalities, or an
organization created and regulated by an act of Congress;

(2) the Dominion of Canada or one of its provinces if the principal and interest are
payable in United States dollars;

(3) a state or one of its municipalities, political subdivisions, agencies, or
instrumentalities; and

(4) a United States government-sponsored organization of which the United States is
a member if the principal and interest are payable in United States dollars.

(d) Investment-grade corporate obligations. An expanded list plan is authorized
to invest funds in bonds, notes, debentures, transportation equipment obligations, or
any other longer term evidences of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States or any of its states, or the Dominion of
Canada or any of its provinces if:

(1) the principal and interest are payable in United States dollars; and

(2) the obligations are rated among the top four quality categories by a nationally
recognized rating agency.

(e) Below-investment-grade corporate obligations. An expanded list plan is
authorized to invest in unrated corporate obligations or in corporate obligations that are
not rated among the top four quality categories by a nationally recognized rating agency if:

(1) the aggregate value of these obligations does not exceed five percent of the
covered pension plan's market value;

(2) the covered pension plan's participation is limited to 50 percent of a single
offering subject to this paragraph; and

(3) the covered pension plan's participation is limited to 25 percent of an issuer's
obligations subject to this paragraph.

(f) Other obligations. (1) An expanded list plan is authorized to invest funds in:

(i) bankers acceptances and deposit notes if issued by a United States bank that is
rated in the highest four quality categories by a nationally recognized rating agency;

(ii) certificates of deposit if issued by a United States bank or savings institution
rated in the highest four quality categories by a nationally recognized rating agency or
whose certificates of deposit are fully insured by federal agencies, or if issued by a credit
union in an amount within the limit of the insurance coverage provided by the National
Credit Union Administration;

(iii) commercial paper if issued by a United States corporation or its Canadian
subsidiary and if rated in the highest two quality categories by a nationally recognized
rating agency;

(iv) mortgage securities and asset-backed securities if rated in the top four quality
categories by a nationally recognized rating agency;

(v) repurchase agreements and reverse repurchase agreements if collateralized with
letters of credit or securities authorized in this section;

(vi) guaranteed investment contracts if issued by an insurance company or a bank
that is rated in the top four quality categories by a nationally recognized rating agency
or alternative guaranteed investment contracts if the underlying assets comply with the
requirements of this subdivision;

(vii) savings accounts if fully insured by a federal agency; and

(viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic
mutual insurance company.

(2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
of deposit and collateralization agreements executed by the covered pension plan under
clause (1), item (ii).

(3) In addition to investments authorized by clause (1), item (iv), an expanded list
plan is authorized to purchase from the Minnesota Housing Finance Agency all or any part
of a pool of residential mortgages, not in default, that has previously been financed by the
issuance of bonds or notes of the agency. The covered pension plan may also enter into
a commitment with the agency, at the time of any issue of bonds or notes, to purchase
at a specified future date, not exceeding 12 years from the date of the issue, the amount
of mortgage loans then outstanding and not in default that have been made or purchased
from the proceeds of the bonds or notes. The covered pension plan may charge reasonable
fees for any such commitment and may agree to purchase the mortgage loans at a price
sufficient to produce a yield to the covered pension plan comparable, in its judgment,
to the yield available on similar mortgage loans at the date of the bonds or notes. The
covered pension plan may also enter into agreements with the agency for the investment
of any portion of the funds of the agency. The agreement must cover the period of the
investment, withdrawal privileges, and any guaranteed rate of return.

(g) Corporate stocks. An expanded list plan is authorized to invest in stocks or
convertible issues of any corporation organized under the laws of the United States or any
of its states, any corporation organized under the laws of the Dominion of Canada or any
of its provinces, or any corporation listed on an exchange that is regulated by an agency of
the United States or of the Canadian national government.

An investment in any corporation must not exceed five percent of the total
outstanding shares of that corporation, except that an expanded list plan may hold up
to 20 percent of the shares of a real estate investment trust and up to 20 percent of the
shares of a closed mutual fund.

(h) Other investments. (1) In addition to the investments authorized in paragraphs
(b) to (g), and subject to the provisions in clause (2), an expanded list plan is authorized
to invest funds in:

(i) equity and debt investment businesses through participation in limited
partnerships, trusts, private placements, limited liability corporations, limited liability
companies, limited liability partnerships, and corporations;

(ii) real estate ownership interests or loans secured by mortgages or deeds of trust
or shares of real estate investment trusts, through investment in limited partnerships,
bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance
company commingled accounts, including separate accounts;

(iii) resource investments through limited partnerships, trusts, private placements,
limited liability corporations, limited liability companies, limited liability partnerships,
and corporations; and

(iv) international securities.

(2) The investments authorized in clause (1) must conform to the following
provisions:

(i) the aggregate value of all investments made under clause (1), items (i), (ii), and
(iii), may not exceed 35 percent of the market value of the fund for which the expanded
list plan is investing;

(ii) there must be at least four unrelated owners of the investment other than the
expanded list plan for investments made under clause (1), item (i), (ii), or (iii);

(iii) the expanded list plan's participation in an investment vehicle is limited to 20
percent thereof for investments made under clause (1), item (i), (ii), or (iii);

(iv) the expanded list plan's participation in a limited partnership does not include a
general partnership interest or other interest involving general liability. The expanded list
plan may not engage in any activity as a limited partner which creates general liability; deleted text begin and
deleted text end

(v) new text begin the aggregate value of all unrated obligations and obligations that are not rated
among the top four quality categories by a nationally recognized rating agency authorized
by paragraph (f) and clause (1), item (iv), must not exceed five percent of the covered
plan's market value; and
new text end

new text begin (vi) new text end for volunteer firefighter relief associations, emerging market equity and
international debt investments authorized under clause (1), item (iv), must not exceed 15
percent of the association's special fund market value.

(i) Supplemental plan investments. The governing body of an expanded list plan
may certify assets to the State Board of Investment for investment under section 11A.17.

(j) Asset mix limitations. The aggregate value of an expanded list plan's
investments under paragraphs (g) and (h) and equity investments under paragraph (i),
regardless of the form in which these investments are held, must not exceed 85 percent of
the covered plan's market value.

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.

Minnesota Statutes 2012, section 356A.06, subdivision 7a, is amended to read:

Subd. 7a.

Restrictions.

Any agreement to lend securities must be concurrently
collateralized with cash or securities with a market value of not less than 100 percent of the
market value of the loaned securities at the time of the agreement. For a covered pension
authorized to purchase put and call options and futures contracts under subdivision 7, any
agreement for put and call options and futures contracts may only be entered into with a
fully offsetting amount of cash or securities. Only securities authorized by this section,
excluding those under subdivision 7, paragraph deleted text begin (g) deleted text end new text begin (h) new text end , clause (1), items (i) to (iv), may be
accepted as collateral or offsetting securities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 424A.015, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Governing benefit plan provisions. new text end

new text begin A service pension or ancillary benefit
payable under this chapter is governed by and must be calculated under the general statute,
special law, relief association articles of incorporation, and relief association bylaw
provisions applicable on the date on which the member separated from active service with
the fire department and active membership in the relief association.
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. 6.

Minnesota Statutes 2012, section 424A.016, subdivision 4, is amended to read:

Subd. 4.

Individual accounts.

(a) An individual account must be established for
each firefighter who is a member of the relief association.

(b) To each individual active member account must be credited an equal share of:

(1) any amounts of fire state aid received by the relief association;

(2) any amounts of municipal contributions to the relief association raised from
levies on real estate or from other available municipal revenue sources exclusive of fire
state aid; and

(3) any amounts equal to the share of the assets of the special fund to the credit of:

(i) any former member who terminated active service with the fire department to
which the relief association is associated before meeting the minimum service requirement
provided for in subdivision 2, paragraph (b), and has not returned to active service with
the fire department for a period no shorter than five years; or

(ii) any retired member who retired before obtaining a full nonforfeitable interest in
the amounts credited to the individual member account under subdivision 2, paragraph
(b), and any applicable provision of the bylaws of the relief association. In addition, any
investment return on the assets of the special fund must be credited in proportion to the
share of the assets of the special fund to the credit of each individual active member
account. Administrative expenses of the relief association payable from the special
fund may be deducted from individual accounts in a manner specified in the bylaws of
the relief association.

(c) If the bylaws so permit and as the bylaws define, the relief association may credit
any investment return on the assets of the special fund to the accounts of inactive members.

(d) Amounts to be credited to individual accounts must be allocated uniformly
for all years of active service and allocations must be made for all years of service,
except for caps on service credit if so provided in the bylaws of the relief association.
new text begin Amounts forfeited under paragraph (b), clause (3), before a resumption of active service
and membership under section 424A.01, subdivision 6, remain forfeited and may not be
reinstated upon the resumption of active service and membership. new text end The allocation method
may utilize monthly proration for fractional years of service, as the bylaws or articles of
incorporation of the relief association so provide. The bylaws or articles of incorporation
may define a "month," but the definition must require a calendar month to have at least 16
days of active service. If the bylaws or articles of incorporation do not define a "month," a
"month" is a completed calendar month of active service measured from the member's
date of entry to the same date in the subsequent month.

(e) At the time of retirement under subdivision 2 and any applicable provision of the
bylaws of the relief association, a retiring member is entitled to that portion of the assets
of the special fund to the credit of the member in the individual member account which is
nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
association based on the number of years of service to the credit of the retiring member.

(f) Annually, the secretary of the relief association shall certify the individual
account allocations to the state auditor at the same time that the annual financial statement
or financial report and audit of the relief association, whichever applies, is due under
section 69.051.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2013 Supplement, section 424A.016, subdivision 6, is
amended to read:

Subd. 6.

Deferred service pensions.

(a) A member of a relief association is entitled
to a deferred service pension if the member separates from active service and membership
and has completed the minimum service and membership requirements in subdivision 2.
The requirement that a member separate from active service and membership is waived
for persons who have discontinued their volunteer firefighter duties and who are employed
on a full-time basis under section 424A.015, subdivision 1.

(b) The deferred service pension is payable when the former member reaches at
least age 50, or at least the minimum age specified in the bylaws governing the relief
association if that age is greater than age 50, and when the former member makes a valid
written application.

(c) A defined contribution relief association may, if its governing bylaws so provide,
credit interest or additional investment performance on the deferred lump-sum service
pension during the period of deferral. If provided for in the bylaws, the interest must be
paid:

(1) at the investment performance rate actually earned on that portion of the assets
if the deferred benefit amount is invested by the relief association in a separate account
established and maintained by the relief association;

(2) at the investment performance rate actually earned on that portion of the assets
if the deferred benefit amount is invested in a separate investment vehicle held by the
relief association; or

(3) at the investment return on the assets of the special fund of the defined contribution
volunteer firefighter relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account through the accounting date
on which the investment return is recognized by and credited to the special fund.

(d) Unless the bylaws of a relief association that has elected to pay interest or
additional investment performance on deferred lump-sum service pensions under
paragraph (c) specifies a different interest or additional investment performance method,
including the interest or additional investment performance period starting date and ending
date, the interest or additional investment performance on a deferred service pension
is creditable as follows:

(1) for a relief association that has elected to pay interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the date that the
member separates from active service and membership and ending on the accounting
date immediately before the deferred member commences receipt of the deferred service
pension; or

(2) for a relief association that has elected to pay interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member
separates from active service and membership and ending on the date that the separate
investment vehicle is valued immediately before the date on which the deferred member
commences receipt of the deferred service pension.

deleted text begin (e) The deferred service pension is governed by and must be calculated under
the general statute, special law, relief association articles of incorporation, and relief
association bylaw provisions applicable on the date on which the member separated from
active service with the fire department and active membership in the relief association.
deleted 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. 8.

Minnesota Statutes 2012, section 424A.016, subdivision 7, is amended to read:

Subd. 7.

Limitation on ancillary benefits.

(a) A defined contribution relief
association may only pay an ancillary benefit which would constitute an authorized
disbursement as specified in section 424A.05. The ancillary benefit for active members
must equal the vested and nonvested amount of the individual account of the member.

(b) For deferred members, the ancillary benefit must equal the vested amount of
the individual account of the member. For the recipient of installment payments of a
service pension, the ancillary benefit must equal the remaining balance in the individual
account of the recipient.

(c) new text begin If the bylaws permit and as defined by the bylaws, the relief association may pay
an ancillary benefit to, or on behalf of, a member who is not active or deferred.
new text end

new text begin (d) new text end (1) If a survivor or death benefit is payable under the articles of incorporation or
bylaws, the benefit must be paid:

(i) as a survivor benefit to the surviving spouse of the deceased firefighter;

(ii) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;

(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or

(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving spouse, no surviving children, and no beneficiary designated.

(2) If there are no surviving children, the surviving spouse may waive, in writing,
wholly or partially, the spouse's entitlement to a survivor benefit.

deleted text begin (d) deleted text end new text begin (e) new text end For purposes of this section, for a defined contribution volunteer fire relief
association, a trust created under chapter 501B may be a designated beneficiary. If a trust
payable to the surviving children organized under chapter 501B has been established as
authorized by this section and there is no surviving spouse, the survivor benefit may be
paid to the trust, notwithstanding the requirements of this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 3, is
amended to read:

Subd. 3.

Flexible service pension maximums.

(a) Annually on or before August
1 as part of the certification of the financial requirements and minimum municipal
obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision
5, as applicable, the secretary or some other official of the relief association designated
in the bylaws of each defined benefit relief association shall calculate and certify to the
governing body of the applicable deleted text begin qualified deleted text end municipality the average amount of available
financing per active covered firefighter for the most recent three-year period. The amount
of available financing includes any amounts of fire state aid received or receivable by the
relief association, any amounts of municipal contributions to the relief association raised
from levies on real estate or from other available revenue sources exclusive of fire state
aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief
association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2
and 4; or 424A.094, subdivision 2, if any.

(b) The maximum service pension which the defined benefit relief association has
authority to provide for in its bylaws for payment to a member retiring after the calculation
date when the minimum age and service requirements specified in subdivision 1 are met
must be determined using the table in paragraph (c) or (d), whichever applies.

(c) For a defined benefit relief association where the governing bylaws provide for
a monthly service pension to a retiring member, the maximum monthly service pension
amount per month for each year of service credited that may be provided for in the bylaws
is the greater of the service pension amount provided for in the bylaws on the date of the
calculation of the average amount of the available financing per active covered firefighter
or the maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter:

Minimum Average Amount of Available Financing per Firefighter		Maximum Service Pension Amount Payable per Month for Each Year of Service
$ ...		$ .25
41		.50
81		1.00
122		1.50
162		2.00
203		2.50
243		3.00
284		3.50
324		4.00
365		4.50
405		5.00
486		6.00
567		7.00
648		8.00
729		9.00
810		10.00
891		11.00
972		12.00
1053		13.00
1134		14.00
1215		15.00
1296		16.00
1377		17.00
1458		18.00
1539		19.00
1620		20.00
1701		21.00
1782		22.00
1823		22.50
1863		23.00
1944		24.00
2025		25.00
2106		26.00
2187		27.00
2268		28.00
2349		29.00
2430		30.00
2511		31.00
2592		32.00
2673		33.00
2754		34.00
2834		35.00
2916		36.00
2997		37.00
3078		38.00
3159		39.00
3240		40.00
3321		41.00
3402		42.00
3483		43.00
3564		44.00
3645		45.00
3726		46.00
3807		47.00
3888		48.00
3969		49.00
4050		50.00
4131		51.00
4212		52.00
4293		53.00
4374		54.00
4455		55.00
4536		56.00
deleted text begin Effective beginning December 31, 2008 deleted text end
4617		57.00
4698		58.00
4779		59.00
4860		60.00
4941		61.00
5022		62.00
5103		63.00
5184		64.00
5265		65.00
deleted text begin Effective beginning December 31, 2009 deleted text end
5346		66.00
5427		67.00
5508		68.00
5589		69.00
5670		70.00
5751		71.00
5832		72.00
5913		73.00
5994		74.00
deleted text begin Effective beginning December 31, 2010 deleted text end
6075		75.00
6156		76.00
6237		77.00
6318		78.00
6399		79.00
6480		80.00
6561		81.00
6642		82.00
6723		83.00
deleted text begin Effective beginning December 31, 2011 deleted text end
6804		84.00
6885		85.00
6966		86.00
7047		87.00
7128		88.00
7209		89.00
7290		90.00
7371		91.00
7452		92.00
deleted text begin Effective beginning December 31, 2012 deleted text end
7533		93.00
7614		94.00
7695		95.00
7776		96.00
7857		97.00
7938		98.00
8019		99.00
8100		100.00
any amount in excess of
8100		100.00

(d) For a defined benefit relief association in which the governing bylaws provide
for a lump-sum service pension to a retiring member, the maximum lump-sum service
pension amount for each year of service credited that may be provided for in the bylaws is
the greater of the service pension amount provided for in the bylaws on the date of the
calculation of the average amount of the available financing per active covered firefighter
or the maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter for the applicable specified period:

Minimum Average Amount of Available Financing per Firefighter		Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service
$ ...		$ 10
11		20
16		30
23		40
27		50
32		60
43		80
54		100
65		120
77		140
86		160
97		180
108		200
131		240
151		280
173		320
194		360
216		400
239		440
259		480
281		520
302		560
324		600
347		640
367		680
389		720
410		760
432		800
486		900
540		1000
594		1100
648		1200
702		1300
756		1400
810		1500
864		1600
918		1700
972		1800
1026		1900
1080		2000
1134		2100
1188		2200
1242		2300
1296		2400
1350		2500
1404		2600
1458		2700
1512		2800
1566		2900
1620		3000
1672		3100
1726		3200
1753		3250
1780		3300
1820		3375
1834		3400
1888		3500
1942		3600
1996		3700
2023		3750
2050		3800
2104		3900
2158		4000
2212		4100
2265		4200
2319		4300
2373		4400
2427		4500
2481		4600
2535		4700
2589		4800
2643		4900
2697		5000
2751		5100
2805		5200
2859		5300
2913		5400
2967		5500
3021		5600
3075		5700
3129		5800
3183		5900
3237		6000
3291		6100
3345		6200
3399		6300
3453		6400
3507		6500
3561		6600
3615		6700
3669		6800
3723		6900
3777		7000
3831		7100
3885		7200
3939		7300
3993		7400
4047		7500
deleted text begin Effective beginning December 31, 2008 deleted text end
4101		7600
4155		7700
4209		7800
4263		7900
4317		8000
4371		8100
4425		8200
4479		8300
deleted text begin Effective beginning December 31, 2009 deleted text end
4533		8400
4587		8500
4641		8600
4695		8700
4749		8800
4803		8900
4857		9000
4911		9100
deleted text begin Effective beginning December 31, 2010 deleted text end
4965		9200
5019		9300
5073		9400
5127		9500
5181		9600
5235		9700
5289		9800
5343		9900
5397		10,000
any amount in excess of
5397		10,000

(e) For a defined benefit relief association in which the governing bylaws provide
for a monthly benefit service pension as an alternative form of service pension payment
to a lump-sum service pension, the maximum service pension amount for each pension
payment type must be determined using the applicable table contained in this subdivision.

(f) If a defined benefit relief association establishes a service pension in compliance
with the applicable maximum contained in paragraph (c) or (d) and the minimum average
amount of available financing per active covered firefighter is subsequently reduced
because of a reduction in fire state aid or because of an increase in the number of active
firefighters, the relief association may continue to provide the prior service pension
amount specified in its bylaws, but may not increase the service pension amount until
the minimum average amount of available financing per firefighter under the table in
paragraph (c) or (d), whichever applies, permits.

(g) No defined benefit relief association is authorized to provide a service pension in
an amount greater than the largest applicable flexible service pension maximum amount
even if the amount of available financing per firefighter is greater than the financing
amount associated with the largest applicable flexible service pension maximum.

(h) 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 except for caps
on service credit if so provided in the bylaws of the relief association.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 7, is
amended to read:

Subd. 7.

Deferred service pensions.

(a) A member of a defined benefit relief
association is entitled to a deferred service pension if the member separates from active
service and membership and has completed the minimum service and membership
requirements in subdivision 1. The requirement that a member separate from active service
and membership is waived for persons who have discontinued their volunteer firefighter
duties and who are employed on a full-time basis under section 424A.015, subdivision 1.

(b) The deferred service pension is payable when the former member reaches at
least age 50, or at least the minimum age specified in the bylaws governing the relief
association if that age is greater than age 50, and when the former member makes a valid
written application.

(c) A defined benefit relief association that provides a lump-sum service pension
governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
deferred lump-sum service pension during the period of deferral. If provided for in the
bylaws, interest must be paid in one of the following manners:

(1) at the investment performance rate actually earned on that portion of the assets
if the deferred benefit amount is invested by the relief association in a separate account
established and maintained by the relief association;

(2) at the investment performance rate actually earned on that portion of the assets
if the deferred benefit amount is invested in a separate investment vehicle held by the
relief association; or

(3) at an interest rate of up to five percent, compounded annually, as set by the
board of trustees.

(d) Any change in the interest rate set by the board of deleted text begin directors deleted text end new text begin trustees new text end under
paragraph (c), clause (3), must be ratified by the governing body of the municipality
served by the fire department to which the relief association is directly associated, or by
the independent nonprofit firefighting corporation, as applicable.

(e) Interest under paragraph (c), clause (3), is payable beginning on the January 1
next following the date on which the deferred service pension interest rate as set by the
board of trustees was ratified by the governing body of the municipality served by the fire
department to which the relief association is directly associated, or by the independent
nonprofit firefighting corporation, as applicable.

(f) Unless the bylaws of a relief association that has elected to pay interest or
additional investment performance on deferred lump-sum service pensions under
paragraph (c) specifies a different interest or additional investment performance method,
including the interest or additional investment performance period starting date and ending
date, the interest or additional investment performance on a deferred service pension
is creditable as follows:

(1) for a relief association that has elected to pay interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the first day of the
month next following the date on which the member separates from active service and
membership and ending on the last day of the month immediately before the month in
which the deferred member commences receipt of the deferred service pension; or

(2) for a relief association that has elected to pay interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member
separates from active service and membership and ending on the date that the separate
investment vehicle is valued immediately before the date on which the deferred member
commences receipt of the deferred service pension.

(g) For a deferred service pension that is transferred to a separate account established
and maintained by the relief association or separate investment vehicle held by the relief
association, the deferred member bears the full investment risk subsequent to transfer and
in calculating the accrued liability of the volunteer firefighters relief association that pays
a lump-sum service pension, the accrued liability for deferred service pensions is equal
to the separate relief association account balance or the fair market value of the separate
investment vehicle held by the relief association.

deleted text begin (h) The deferred service pension is governed by and must be calculated under
the general statute, special law, relief association articles of incorporation, and relief
association bylaw provisions applicable on the date on which the member separated from
active service with the fire department and active membership in the relief association.
deleted 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. 11.

Minnesota Statutes 2012, section 424A.08, is amended to read:

424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION;
AUTHORIZED DISBURSEMENTS.

(a) Any deleted text begin qualified deleted text end municipality which is entitled to receive fire state aid but which
has no volunteer firefighters' relief association directly associated with its fire department
and which has no full-time firefighters with retirement coverage by the public employees
police and fire retirement plan shall deposit the fire state aid in a special account
established for that purpose in the municipal treasury. Disbursement from the special
account may not be made for any purpose except:

(1) payment of the fees, dues and assessments to the Minnesota State Fire
Department Association and to the state Volunteer Firefighters' Benefit Association in
order to entitle its firefighters to membership in and the benefits of these state associations;

(2) payment of the cost of purchasing and maintaining needed equipment for the
fire department; and

(3) payment of the cost of construction, acquisition, repair, or maintenance of
buildings or other premises to house the equipment of the fire department.

(b) A deleted text begin qualified deleted text end municipality which is entitled to receive fire state aid, which has no
volunteer firefighters' relief association directly associated with its fire department, which
does not participate in the voluntary statewide lump-sum volunteer firefighter retirement
plan under chapter 353G, and which has full-time firefighters with retirement coverage
by the public employees police and fire retirement plan may disburse the fire state aid as
provided in paragraph (a), for the payment of the employer contribution requirement with
respect to firefighters covered by the public employees police and fire retirement plan under
section 353.65, subdivision 3, or for a combination of the two types of disbursements.

(c) A municipality that has no volunteer firefighters' relief association directly
associated with it and that participates in the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G shall transmit any fire state aid that it
receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2013 Supplement, section 424A.092, subdivision 6,
is amended to read:

Subd. 6.

Municipal ratification for plan amendments.

If the special fund of
the relief association does not have a surplus over full funding under subdivision 3,
paragraph (c), clause (5), and if the municipality is required to provide financial support
to the special fund of the relief association under this section, the adoption of or any
amendment to the articles of incorporation or bylaws of a relief association which
increases or otherwise affects the retirement coverage provided by or the service pensions
or retirement benefits payable from the special fund of any relief association to which this
section applies is not effective until it is ratified by the governing body of the municipality
deleted text begin in which the relief association is located deleted text end new text begin served by the fire department to which the
relief association is directly associated or by the independent nonprofit firefighting
corporation, as applicable, new text end and the officers of a relief association shall not seek municipal
ratification prior to preparing and certifying an estimate of the expected increase in the
accrued liability and annual accruing liability of the relief association attributable to the
amendment. If the special fund of the relief association has a surplus over full funding
under subdivision 3, paragraph (c), clause (5), and if the municipality is not required to
provide financial support to the special fund of the relief association under this section,
the relief association may adopt or amend its articles of incorporation or bylaws which
increase or otherwise affect the retirement coverage provided by or the service pensions
or retirement benefits payable from the special fund of the relief association which are
effective without municipal ratification so long as this does not cause the amount of the
resulting increase in the accrued liability of the special fund of the relief association to
exceed 90 percent of the amount of the surplus over full funding reported in the prior year
and this does not result in the financial requirements of the special fund of the relief
association exceeding the expected amount of the future fire state aid to be received by
the relief association as determined by the board of trustees following the preparation
of an estimate of the expected increase in the accrued liability and annual accruing
liability of the relief association attributable to the change. If a relief association adopts or
amends its articles of incorporation or bylaws without municipal ratification under this
subdivision, and, subsequent to the amendment or adoption, the financial requirements
of the special fund of the relief association under this section are such so as to require
financial support from the municipality, the provision which was implemented without
municipal ratification is no longer effective without municipal ratification and any service
pensions or retirement benefits payable after that date may be paid only in accordance with
the articles of incorporation or bylaws as amended or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 2,
is amended to read:

Subd. 2.

Determination of actuarial condition and funding costs.

A relief
association to which this section applies shall obtain an actuarial valuation showing the
condition of the special fund of the relief association as of December 31, 1978, and at
least as of December 31 every four years thereafter. The valuation shall be prepared in
accordance with the provisions of sections 356.215, subdivision 8, and 356.216 and any
applicable standards for actuarial work established by the Legislative Commission on
Pensions and Retirement, except that the figure for normal cost shall be expressed as a
level dollar amount, and the amortization contribution shall be the level dollar amount
calculated to amortize any current unfunded accrued liability by at least the date of full
funding specified in subdivision 4, clause (b). Each valuation shall be filed with the
governing body of the municipality deleted text begin in which the relief association is located deleted text end new text begin served by the
fire department to which the relief association is directly associated or by the independent
nonprofit firefighting corporation, as applicable, new text end and with the state auditor, not later than
July 1 of the year next following the date as of which the actuarial valuation is prepared.
Any relief association which is operating under a special law which requires that actuarial
valuations be obtained at least every four years and be prepared in accordance with
applicable actuarial standards set forth in statute may continue to have actuarial valuations
made according to the time schedule set forth in the special legislation subject to the
provisions of subdivision 3.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 6,
is amended to read:

Subd. 6.

Municipal ratification for plan amendments.

If the special fund of the
relief association does not have a surplus over full funding under subdivision 4, and
if the municipality is required to provide financial support to the special fund of the
relief association under this section, the adoption of or any amendment to the articles of
incorporation or bylaws of a relief association which increases or otherwise affects the
retirement coverage provided by or the service pensions or retirement benefits payable
from the special fund of any relief association to which this section applies is not effective
until it is ratified by the governing body of the municipality deleted text begin in which the relief association
is located deleted text end new text begin served by the fire department to which the relief association is directly associated
or by the independent nonprofit firefighting corporation, as applicable new text end . If the special
fund of the relief association has a surplus over full funding under subdivision 4, and if
the municipality is not required to provide financial support to the special fund of the
relief association under this section, the relief association may adopt or amend its articles
of incorporation or bylaws which increase or otherwise affect the retirement coverage
provided by or the service pensions or retirement benefits payable from the special fund
of the relief association which are effective without municipal ratification so long as this
does not cause the amount of the resulting increase in the accrued liability of the special
fund of the relief association to exceed 90 percent of the amount of the surplus over full
funding reported in the prior year and this does not result in the financial requirements of
the special fund of the relief association exceeding the expected amount of the future fire
state aid to be received by the relief association as determined by the board of trustees
following the preparation of an updated actuarial valuation including the proposed change
or an estimate of the expected actuarial impact of the proposed change prepared by the
actuary of the relief association. If a relief association adopts or amends its articles of
incorporation or bylaws without municipal ratification pursuant to this subdivision, and,
subsequent to the amendment or adoption, the financial requirements of the special fund
of the relief association under this section are such so as to require financial support from
the municipality, the provision which was implemented without municipal ratification is
no longer effective without municipal ratification and any service pensions or retirement
benefits payable after that date may be paid only in accordance with the articles of
incorporation or bylaws as amended or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2013 Supplement, section 424A.094, subdivision 2,
is amended to read:

Subd. 2.

Determination of actuarial condition and funding costs.

Each
independent nonprofit firefighting corporation to which this section applies shall determine
the actuarial condition and the funding costs of the subsidiary relief association using
the following procedure:

(1) An independent nonprofit firefighting corporation which has a subsidiary relief
association which pays a monthly benefit service pension shall procure an actuarial
valuation of the special fund of the subsidiary relief association at the same times and
in the same manner as specified in section 424A.093, subdivisions 2 and 3, and an
independent nonprofit firefighting corporation which has a subsidiary relief association
which pays a lump-sum service pension shall determine the accrued liability of the special
fund of the relief association in accordance with section 424A.092, subdivision 2.

(2) The financial requirements of the special fund of the subsidiary relief association
which pays a monthly benefit service pension shall be determined in the same manner
as specified in section 424A.093, subdivision 4, and the financial requirements of the
special fund of the subsidiary relief association shall be determined in the same manner as
specified in section 424A.092, subdivision 3.

(3) The minimum obligation of the independent nonprofit firefighting corporation on
behalf of the special fund of the subsidiary relief association shall be determined in the
same manner as specified in section new text begin 424A.092, subdivision 4, or new text end 424A.093, subdivision 5 new text begin ,
as applicable new text end .

(4) The independent nonprofit firefighting corporation shall appropriate annually
from the income of the corporation an amount at least equal to the minimum obligation
of the independent nonprofit firefighting corporation on behalf of the special fund of
the subsidiary relief association.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2013 Supplement, section 424A.10, subdivision 2, is
amended to read:

Subd. 2.

Payment of supplemental benefit.

(a) Upon the payment by a volunteer
firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
retirement plan of a lump-sum distribution to a qualified recipient, the association must
pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
contrary, the relief association must pay the supplemental benefit out of its special fund
and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
volunteer firefighter in that capacity.

(b) Upon the payment by a relief association or the retirement plan of a lump-sum
survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
deferred volunteer firefighter, the association must pay a supplemental survivor benefit to
the survivor of the deceased active or deferred volunteer firefighter from the special fund
of the relief association and the retirement plan must pay a supplemental survivor benefit
to the survivor of the deceased active or deferred volunteer firefighter from the retirement
fund if chapter 353G so provides. The amount of the supplemental survivor benefit is 20
percent of the survivor benefit, but not to exceed $2,000.

(c) new text begin For purposes of this section, the term "regular lump-sum distribution" means the
pretax lump-sum distribution excluding any interest that may have been credited during a
volunteer firefighter's period of deferral.
new text end

new text begin (d) new text end An individual may receive a supplemental benefit under paragraph (a) or under
paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
firefighter benefit.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2012, section 424B.12, is amended to read:

424B.12 MIXED CONSOLIDATING RELIEF ASSOCIATIONS; BENEFIT
PLAN; FUNDING.

Subdivision 1.

Applicability.

This section applies where one or more of the
volunteer firefighters' relief associations involved in the consolidation are defined benefit
relief associations as defined in section 424A.001, subdivision 1b, and one or more of
the volunteer firefighters' relief associations involved in the consolidation are defined
contribution relief associations as defined in section 424A.001, subdivision 1c.

Subd. 2.

Benefit plan.

The articles of incorporation or bylaws of the successor
relief association must specify whether the relief association is a defined benefit relief
association or whether the relief association is a defined contribution relief association. If
the successor relief association is a defined benefit relief association, the relief association
benefits must comply with sections 424A.02 and deleted text begin 424B.11, subdivision 1a deleted text end new text begin 424B.10 new text end . If
the successor relief association is a defined contribution relief association, the relief
association must comply with sections 424A.016 and deleted text begin 424B.12 deleted text end new text begin 424B.11 new text end , subdivision 2.

Subd. 3.

Funding.

If the successor relief association is a defined benefit relief
association, the relief association funding is governed by section deleted text begin 424B.11 deleted text end new text begin 424B.10 new text end ,
subdivision 2. If the successor relief association is a defined contribution relief association,
the relief association funding is governed by section deleted text begin 424B.12 deleted text end new text begin 424B.11 new text end , subdivision 3.

new text begin EFFECTIVE DATE. new text end

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