HF 2785

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2016 03:24pm

A bill for an act
relating to retirement; volunteer firefighter relief associations; increasing
lump-sum service pension maximums for defined benefit relief associations;
lowering the vesting requirement for Eden Prairie volunteer firefighters relief
association volunteer firefighters returning to active service; amending Minnesota
Statutes 2015 Supplement, section 424A.02, subdivision 3.

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

Section 1.

Minnesota Statutes 2015 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 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 and police and firefighter retirement supplemental
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
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
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
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
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
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
4101		7600
4155		7700
4209		7800
4263		7900
4317		8000
4371		8100
4425		8200
4479		8300
4533		8400
4587		8500
4641		8600
4695		8700
4749		8800
4803		8900
4857		9000
4911		9100
4965		9200
5019		9300
5073		9400
5127		9500
5181		9600
5235		9700
5289		9800
5343		9900
5397		10,000
deleted text begin any amount in excess of deleted text end new text begin 5451 new text end		new text begin 10,100 new text end
deleted text begin 5397 deleted text end new text begin 5505 new text end		deleted text begin 10,000 deleted text end new text begin 10,200 new text end
new text begin 5559 new text end		new text begin 10,300 new text end
new text begin 5613 new text end		new text begin 10,400 new text end
new text begin 5667 new text end		new text begin 10,500 new text end
new text begin 5721 new text end		new text begin 10,600 new text end
new text begin 5775 new text end		new text begin 10,700 new text end
new text begin 5829 new text end		new text begin 10,800 new text end
new text begin 5883 new text end		new text begin 10,900 new text end
new text begin 5937 new text end		new text begin 11,000 new text end
new text begin 5991 new text end		new text begin 11,100 new text end
new text begin 6045 new text end		new text begin 11,200 new text end
new text begin 6099 new text end		new text begin 11,300 new text end
new text begin 6153 new text end		new text begin 11,400 new text end
new text begin 6207 new text end		new text begin 11,500 new text end
new text begin 6261 new text end		new text begin 11,600 new text end
new text begin 6315 new text end		new text begin 11,700 new text end
new text begin 6369 new text end		new text begin 11,800 new text end
new text begin 6423 new text end		new text begin 11,900 new text end
new text begin 6477 new text end		new text begin 12,000 new text end
new text begin 6531 new text end		new text begin 12,100 new text end
new text begin 6585 new text end		new text begin 12,200 new text end
new text begin 6639 new text end		new text begin 12,300 new text end
new text begin 6693 new text end		new text begin 12,400 new text end
new text begin 6747 new text end		new text begin 12,500 new text end
new text begin 6801 new text end		new text begin 12,600 new text end
new text begin 6855 new text end		new text begin 12,700 new text end
new text begin 6909 new text end		new text begin 12,800 new text end
new text begin 6963 new text end		new text begin 12,900 new text end
new text begin 7017 new text end		new text begin 13,000 new text end
new text begin 7071 new text end		new text begin 13,100 new text end
new text begin 7125 new text end		new text begin 13,200 new text end
new text begin 7179 new text end		new text begin 13,300 new text end
new text begin 7233 new text end		new text begin 13,400 new text end
new text begin 7287 new text end		new text begin 13,500 new text end
new text begin 7341 new text end		new text begin 13,600 new text end
new text begin 7395 new text end		new text begin 13,700 new text end
new text begin 7449 new text end		new text begin 13,800 new text end
new text begin 7503 new text end		new text begin 13,900 new text end
new text begin 7557 new text end		new text begin 14,000 new text end
new text begin 7611 new text end		new text begin 14,100 new text end
new text begin 7665 new text end		new text begin 14,200 new text end
new text begin 7719 new text end		new text begin 14,300 new text end
new text begin 7773 new text end		new text begin 14,400 new text end
new text begin 7827 new text end		new text begin 14,500 new text end
new text begin 7881 new text end		new text begin 14,600 new text end
new text begin 7935 new text end		new text begin 14,700 new text end
new text begin 7989 new text end		new text begin 14,800 new text end
new text begin 8043 new text end		new text begin 14,900 new text end
new text begin 8097 new text end		new text begin 15,000 new text end
new text begin any amount in excess of 8097 new text end		new text begin 15,000 new text end

(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 January 1, 2017.
new text end

Sec. 2. new text begin EDEN PRAIRIE VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION SERVICE PENSIONS; RETURN TO ACTIVE SERVICE.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, section 424A.01,
subdivision 6, section 424A.02, subdivision 2, or any other provision of law to the
contrary, if the bylaws of the Eden Prairie volunteer firefighters relief association so
provide, a former firefighter who has received a lump-sum service pension or is receiving
a monthly benefit service pension and returns to active relief association membership
under Minnesota Statutes, section 424A.01, subdivision 6, paragraph (b), is entitled to
receive an unreduced lump-sum service pension for the resumption service period if the
firefighter completes at least three years of active service as an active member of the fire
department during the resumption service period and completes at least three years of
active membership with the relief association during the resumption service period.
new text end

new text begin (b) A lump-sum service pension must be calculated by applying the service pension
amount in effect on the date of the firefighter's termination of the resumption service for
all years of the resumption service. No firefighter may be paid a service pension more
than once for the same period of service. Payment of a lump-sum service pension shall
have no effect on the firefighter's previous service pension.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the Eden Prairie city
council and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end