HF 2583

as introduced - 91st Legislature (2019 - 2020) Posted on 03/12/2020 04:38pm

A bill for an act
relating to retirement; revising the allocation of police and firefighter retirement
supplemental state aid; amending Minnesota Statutes 2018, section 423A.022,
subdivisions 2, 5, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 423A.022, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For purposes of this section, the term "municipalities" includes
independent nonprofit firefighting corporations that participate in the voluntary statewide
volunteer firefighter retirement plan under chapter 353G or are affiliated with volunteer
firefighter relief associations operating under chapter 424A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2018, section 423A.022, subdivision 2, is amended to read:

Subd. 2.

Allocation.

(a) deleted text begin Of deleted text end The total amount appropriated as supplemental state aid deleted text begin : deleted text end new text begin
shall be allocated as provided in this subdivision.
new text end

deleted text begin (1) deleted text end new text begin (b) new text end 58.064 percent new text begin of the total amount new text end must be paid to the executive director of the
Public Employees Retirement Association for deposit in the public employees police and
fire retirement fund established by section 353.65, subdivision 1 deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) deleted text end new text begin (c) new text end 35.484 percent new text begin of the total amount new text end must be paid to municipalities deleted text begin other than deleted text end new text begin that
qualified to receive fire state aid in that calendar year except new text end municipalities solely employing
firefighters with retirement coverage provided by the public employees police and fire
retirement plan deleted text begin which qualified to receive fire state aid in that calendar year, deleted text end new text begin . The
supplemental state aid under this paragraph shall be new text end allocated new text begin among the municipalities
entitled to an allocation new text end in new text begin the same new text end proportion deleted text begin to deleted text end new text begin that new text end the deleted text begin most recent amount of fire state
aid paid under section 69.021, subdivision 7, deleted text end new text begin number of firefighters who received credit for
a year of service for that calendar year new text end for the new text begin fire department affiliated with a new text end municipality
bears to the deleted text begin most recent total fire state aid for all municipalities other than the municipalities
solely employing firefighters with retirement coverage provided by the public employees
police and fire retirement plan paid under section 69.021, subdivision 7, with deleted text end new text begin total number
of all firefighters who received credit for a year of service for that calendar year for the fire
departments affiliated with all municipalities entitled to an allocation. new text end The allocated amount
for fire departments participating in the voluntary statewide lump-sum volunteer firefighter
retirement plan new text begin shall be new text end paid to the executive director of the Public Employees Retirement
Association for deposit in the fund established by section 353G.02, subdivision 3, and
credited to the respective account deleted text begin and with deleted text end new text begin . new text end The balance new text begin of the allocated amount shall be
new text end paid to the treasurer of each municipality for transmittal within 30 days of receipt to the
treasurer of the applicable volunteer firefighter relief association for deposit in its special
fund deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) deleted text end new text begin (d) new text end 6.452 percent new text begin of the total amount new text end must be paid to the executive director of the
Minnesota State Retirement System for deposit in the state patrol retirement fund.

deleted text begin (b) For purposes of this section, the term "municipalities" includes independent nonprofit
firefighting corporations that participate in the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter relief
associations operating under chapter 424A.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2018, section 423A.022, subdivision 5, is amended to read:

Subd. 5.

Aid termination.

(a) The aid under subdivision 2, deleted text begin paragraph (a), clauses (1) deleted text end new text begin
paragraphs (b) new text end and deleted text begin (3) deleted text end new text begin (d) new text end , continues until the earlier of:

(1) the December 1 following the end of the fiscal year in which the actuarial value of
assets of both the State Patrol retirement plan and the public employees police and fire
retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities as reported
by the actuary retained under section 356.214 in the annual actuarial valuation prepared
under section 356.215; or

(2) July 1, 2048.

(b) The aid under subdivision 2, paragraph deleted text begin (a), clause (2) deleted text end new text begin (c) new text end , does not terminate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end