as introduced - 93rd Legislature (2023 - 2024) Posted on 02/13/2024 03:52pm
Engrossments | ||
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Introduction | Posted on 02/12/2024 |
A bill for an act
relating to retirement; implementing recommendations of the state auditor's
volunteer firefighter working group; modifying provisions governing volunteer
firefighters relief associations; making conforming changes; amending Minnesota
Statutes 2022, sections 424A.001, subdivisions 4, 5, 8, 9, 10, by adding
subdivisions; 424A.003; 424A.01, subdivisions 1, 2, 5; 424A.015, subdivisions
1, 5, 7; 424A.016, subdivisions 2, 6; 424A.02, subdivisions 1, 3, 7, 9; 424A.021;
424A.092, subdivision 6; 424A.093, subdivision 6; 424A.094, subdivision 1;
424A.095, subdivision 2; 424A.10; 424B.22, subdivisions 2, 10; repealing
Minnesota Statutes 2022, section 424A.01, subdivision 5a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 424A.092, subdivision 6, is amended to read:
(a) The board of trustees of
a relief association may adopt an amendment to the articles of incorporation or bylaws that
increases the coverage, service pensions, or retirement benefits provided by the relief
association only after preparing an estimate of the expected deleted text begin increase in the financial
requirements anddeleted text end new text begin change to new text end the accrued liability new text begin and the overall funding balance of the
special fund new text end resulting from the amendment.
(b) For purposes of this subdivision, deleted text begin "financial requirements"deleted text end new text begin "overall funding balance"
new text end means the amount new text begin of the surplus or deficit new text end calculated under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin
(b)new text end . "Accrued liability" means the amount calculated under subdivision 2 or 2a, as applicable.
"Estimate" means the estimate required in paragraph (a).
(c) If the special fund of a relief association to which this section applies deleted text begin does not have
a surplus overdeleted text end new text begin has a deficit from new text end full funding under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , clause
deleted text begin (5)deleted text end new text begin (3)new text end , deleted text begin anddeleted text end new text begin ornew text end if the municipality deleted text begin is required to provide financial support to the special fund
under this sectiondeleted text end new text begin has a minimum obligation under subdivision 3, paragraph (d)new text end , deleted text begin the board
of trustees of the relief association may adopt andeleted text end new text begin any new text end amendment to the articles of
incorporation or bylaws new text begin adopted by the board of trustees new text end that increases the coverage, service
pensions, or retirement benefits provided by the relief associationdeleted text begin . The amendmentdeleted text end is not
effective until it is ratified by the governing body of the affiliated municipality or independent
nonprofit firefighting corporation, as applicable. The governing body may ratify deleted text begin suchdeleted text end new text begin thenew text end
amendment only if the relief association has delivered to the governing body the estimate
described in paragraphs (a) and (b), certified by an officer of the relief association.
(d) If the special fund of a relief association to which this section applies new text begin is fully funded
or new text end has a surplus over full funding under subdivision 3, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , clause deleted text begin (5)deleted text end new text begin (3)new text end , and
if the municipality deleted text begin is not required to provide financial supportdeleted text end new text begin does not have a minimum
obligation under subdivision 3, paragraph (d),new text end to the special fund under this section, the
relief association may adopt an amendment to the articles of incorporation or bylaws that
increases the coverage, service pensions, or retirement benefits provided by the relief
association. deleted text begin (1)deleted text end The amendment is effective if the municipality ratifies the amendmentdeleted text begin . (2)
The amendment is effective without municipal ratification ifdeleted text end new text begin or, in the absence of municipal
ratification, new text end the amendment satisfies paragraph (e).
(e) An amendment satisfies this paragraph if the estimate described in paragraphs (a)
and (b) demonstrates that the amendment will not cause:
(1) the amount of the resulting increase in the accrued liability of the special fund to
exceed 90 percent of the amount of the surplus over full funding reported in the prior year;
deleted text begin and
deleted text end
(2) deleted text begin the financial requirements of the special fund to exceed the expected amount of the
future fire state aid and police and firefighter retirement supplemental state aid to be received
by the relief association.deleted text end new text begin an increase in the minimum obligation of the municipality for the
upcoming calendar year under subdivision 3, paragraph (d); and
new text end
new text begin
(3) the special fund of the relief association to have a deficit from full funding under
subdivision 3, paragraph (c), clause (5), on the day immediately following the adoption of
the amendment.
new text end
(f) If a relief association amends the articles of incorporation or bylaws without municipal
ratification under this subdivisiondeleted text begin ,deleted text end and, subsequent to the amendment, the deleted text begin financial
requirements of the special fund of the relief association under this section are such so as
to require financial support fromdeleted text end new text begin minimum obligation of new text end the municipalitynew text begin under subdivision
3, paragraph (d)new text end , new text begin increases, new text end the provision deleted text begin whichdeleted text end new text begin that new text end was implemented without municipal
ratification is no longer effective deleted text begin anddeleted text end new text begin on July 31. new text end 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 with municipal ratification.
new text begin
This section is effective January 1, 2025.
new text end
Minnesota Statutes 2022, section 424A.093, subdivision 6, is amended to read:
(a) The board of trustees of
a relief association may adopt an amendment to the articles of incorporation or bylaws that
increases the coverage, service pensions, or retirement benefits provided by the relief
association only after the board of trustees has had 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.
(b) If the special fund of a relief association to which this section applies deleted text begin does not have
a surplus overdeleted text end new text begin has a deficit from new text end full funding under subdivision 4, deleted text begin anddeleted text end new text begin or new text end if the municipality
deleted text begin is required to provide financial support to the special funddeleted text end new text begin has a minimum obligation new text end under
deleted text begin this sectiondeleted text end new text begin subdivision 5new text end , deleted text begin the board of trustees of the relief association may adopt andeleted text end new text begin anynew text end
amendment to the articles of incorporation or bylaws new text begin adopted by the board of trusteesnew text end that
increases the coverage, service pensions, or retirement benefits provided by the relief
associationdeleted text begin . The amendmentdeleted text end is not effective until it is ratified by the governing body of the
affiliated municipality or independent nonprofit firefighting corporation, as applicable. The
governing body may ratify deleted text begin suchdeleted text end new text begin thenew text end amendment only if the relief association has delivered
to the governing body the actuarial valuation or estimate described in paragraph (a), certified
by an officer of the relief association.
(c) If the special fund of a relief association to which this section applies new text begin is fully funded
or new text end has a surplus over full funding under subdivision 4, and if the municipality deleted text begin isdeleted text end new text begin does new text end not
deleted text begin required to provide financial support to the special funddeleted text end new text begin have a minimum obligation new text end under
deleted text begin this sectiondeleted text end new text begin subdivision 5new text end , the relief association may adopt an amendment to the articles of
incorporation or bylaws that increases the coverage, service pensions, or retirement benefits
provided by the relief association. The amendment is effective:
(1) if the municipality ratifies the amendment; or
(2) without municipal ratification if the amendment satisfies paragraph (d).
(d) An amendment satisfies this paragraph if the actuarial valuation or estimate described
in paragraph (a) demonstrates that the amendment will not cause:
(1) the amount of the resulting increase in the accrued liability of the special fund to
exceed 90 percent of the amount of the surplus over full funding reported in the prior year;deleted text begin
and
deleted text end
(2) deleted text begin the financial requirements of the special fund to exceed the expected amount of the
future fire state aid and police and firefighter retirement supplemental state aid to be received
by the relief association.deleted text end new text begin an increase in the minimum obligation of the municipality for the
upcoming calendar year; and
new text end
new text begin
(3) the special fund of the relief association to have a deficit from full funding under
subdivision 4 on the day immediately following the adoption of the amendment.
new text end
(e) If a relief association amends its articles of incorporation or bylaws without municipal
ratification pursuant to this subdivisiondeleted text begin ,deleted text end and, subsequent to the amendment, the deleted text begin financial
requirements of the special fund of the relief association under this section are such so as
to require financial support fromdeleted text end new text begin minimum obligation ofnew text end the municipality new text begin increases under
this sectionnew text end , the provision deleted text begin whichdeleted text end new text begin thatnew text end was implemented without municipal ratification is no
longer effective deleted text begin anddeleted text end new text begin on July 31.new text end 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 with municipal ratification.
new text begin
This section is effective January 1, 2025.
new text end
Minnesota Statutes 2022, section 424B.22, subdivision 2, is amended to read:
(a) A relief association is dissolved
and the retirement plan administered by the relief association is terminated automatically
if:
(1) the fire department affiliated with a relief association is dissolved by action of the
governing body of the municipality in which the fire department is located or by the
governing body of the independent nonprofit firefighting corporation, whichever applies;
or
(2) the fire department affiliated with a relief association has terminated the employment
or services of all active members of the relief association.
(b) An involuntary termination of a relief association under this subdivision is effective
on the December 31 that is at least eight months after the date on which the fire department
is dissolved or the termination of employment or services of all active members of the relief
association occurs.new text begin The board of trustees must comply with subdivisions 3 and 5 to 12. The
board of trustees may comply with subdivision 4. The state auditor has the discretion to
waive these requirements if the board of trustees requests a waiver in advance and provides
adequate demonstration that meeting these requirements is not practicable.
new text end
(c) The retirement plan administered by a relief association is terminated automatically
if the relief association is dissolved, effective on the date of the dissolution of the relief
association.
new text begin
This section is effective January 1, 2025.
new text end
Minnesota Statutes 2022, section 424B.22, subdivision 10, is amended to read:
Within 60 days after the distribution of benefits under
subdivision 8, the municipality or firefighting corporation with which the fire department
is affiliated shall pay supplemental benefits under section 424A.10 to each participant and
survivor who satisfies the requirements of section 424A.10, subdivision 2deleted text begin ,deleted text end new text begin . A supplemental
benefit is payable to each participant who receives a retirement benefitnew text end if the participant is
at least age 50. new text begin A supplemental benefit is payable to each participant or survivor who
receives, respectively, a disability benefit or survivor benefit without regard to any minimum
age requirement. new text end The commissioner of revenue shall reimburse the municipality or
deleted text begin independent nonprofitdeleted text end firefighting corporation for all supplemental benefits paid as provided
in section 424A.10, subdivision 3.
new text begin
This section is effective for supplemental benefits reimbursed in
calendar year 2025 and thereafter.
new text end
Minnesota Statutes 2022, section 424A.095, subdivision 2, is amended to read:
(a) Annually, the state auditor must provide an investment
report to each relief association that has complied with the reporting requirements under
section 356.219, subdivisions 1 and 3. The investment report must contain the following
information:
(1) the relief association's average annual rates of return for at least the previous one-,
three-, five-, ten-, 15-, and 20-year periods for which the state auditor has investment
information;
(2) the relief association's asset allocation;
(3) the average annual one-year and ten-year benchmark rates of return;
(4) the average annual one-year and ten-year rates of return for the statewide volunteer
firefighter plan;
(5) the one-year and ten-year average annual rates of return for the State Board of
Investment supplemental investment fund; and
(6) a graphical comparison between:
(i) the relief association's average annual rates of return for the previous year and for
the previous multiyear periods provided under clause (1); and
(ii) the average annual rates of return for the same periods for the supplemental investment
fund's balanced fund or any successor fund.
(b) The state auditor shall select the benchmark rates of return based on the best practice
in the industry.
(c) new text begin An officer of new text end the relief association's board of trustees must certify to the state auditor
that the board reviewed the investment report. The certification must accompany the audited
financial statements or detailed financial statement under section 424A.014, subdivision 1
or 2, whichever applies. A copy of the report must be kept on file by the relief association
and must be available for inspection by any member of the public.
new text begin
This section is effective the day following final enactment.
new text end
Minnesota Statutes 2022, section 424A.016, subdivision 6, is amended to read:
(a) A "deferred member" means a member of a
relief association who has separated 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) A deferred member is entitled to receive a deferred service pension when the 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 makes a valid written application.
(c) A defined contribution relief association must credit interest or additional investment
performance on the deferred lump-sum service pension during the period of deferral for all
deferred members on or after January 1, 2021. A defined contribution relief association
may specify in its bylaws the method by which it will credit interest or additional investment
performance to the accounts of deferred members. Such method shall be limited to one of
the three methods provided in this paragraph. In the event the bylaws do not specify a
method, the interest or additional investment performance must be credited using the method
defined in clause (3). The permissible methods are:
(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
deleted text begin volunteer firefightersdeleted text end relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account deleted text begin through the accounting date
on which the investment return is recognized by and credited to the special funddeleted text end .
(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw
amendments made in accordance with paragraph (c) on or before January 1, 2022, shall
apply to members already in deferred status as of January 1, 2021.
(e) Unless the bylaws provide differently, deleted text begin the dates that will be used by a relief association
in determining the creditable amount ofdeleted text end interest or additional investment performance deleted text begin on
adeleted text end new text begin must be allocated to each deferred member account beginning on the date that the member
separates from active service and membership and ending on the last date that the deferred
member account is valued before the final distribution of the new text end deferred service pension deleted text begin shall
be as follows:deleted text end new text begin .
new text end
deleted text begin
(1) for a relief association that has elected to credit 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
deleted text end
deleted text begin
(2) for a relief association that has elected to credit 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 end
new text begin
This section is effective January 1, 2025.
new text end
Minnesota Statutes 2022, section 424A.001, subdivision 4, is amended to read:
(a) "Relief association" or "deleted text begin volunteerdeleted text end firefighters relief
association" means a deleted text begin volunteerdeleted text end firefighters relief association deleted text begin or a volunteer firefighters
division or account of a partially salaried and partially volunteer firefighters relief associationdeleted text end
that is:
(1) organized and incorporated as a nonprofit corporation to provide retirement benefits
to volunteer firefighters new text begin and paid on-call firefighters new text end under chapter 317A and any laws of
the state;
(2) governed by this chapter and sections 424A.091 to 424A.095; and
(3) directly associated with:
(i) a fire department established by municipal ordinance;
(ii) an independent nonprofit firefighting corporation that is organized under the
provisions of chapter 317A and that operates primarily for firefighting purposes; or
(iii) a fire department operated as or by a joint powers entity that operates primarily for
firefighting purposes.
(b) "Relief association" or "deleted text begin volunteerdeleted text end firefighters relief association" does not mean:
(1) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter
111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965,
chapter 446, as amended; or
(2) the statewide volunteer firefighter plan governed by chapter 353G.
(c) A relief association or deleted text begin volunteerdeleted text end firefighters relief association is a governmental
entity that receives and manages public money to provide retirement benefits for individuals
providing the governmental services of firefighting and emergency first response.
Minnesota Statutes 2022, section 424A.001, subdivision 5, is amended to read:
"Special fund" means the special fund of a deleted text begin volunteerdeleted text end firefighters
relief association deleted text begin or the account for volunteer firefighters within the special fund of a partially
salaried and partially volunteer firefighters relief associationdeleted text end .
Minnesota Statutes 2022, section 424A.001, subdivision 8, is amended to read:
"Firefighting servicedeleted text begin ,deleted text end " deleted text begin if the applicable municipality
approves for a fire department that is a municipal department, or if the applicable contracting
municipality or municipalities approve for a fire department that is an independent nonprofit
firefighting corporation, includes fire department service rendereddeleted text end new text begin means duties performed
by firefighters and, if approved by the appropriate municipality or municipalities, duties
performed new text end by fire prevention personnel.
Minnesota Statutes 2022, section 424A.001, subdivision 9, is amended to read:
"Separate from active service" means that a
firefighter permanently ceases to perform fire suppression duties deleted text begin with a particular volunteer
fire department, permanently ceases to performdeleted text end new text begin and new text end fire prevention dutiesnew text begin andnew text end , permanently
ceases to supervise fire suppression deleted text begin dutiesdeleted text end , and deleted text begin permanently ceases to supervisedeleted text end fire
prevention dutiesnew text begin with a particular fire departmentnew text end .
Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision
to read:
new text begin
"Firefighter" means a person who is a volunteer firefighter, paid
on-call firefighter, part-time firefighter, full-time firefighter, career firefighter, or any
combination thereof.
new text end
Minnesota Statutes 2022, section 424A.001, subdivision 10, is amended to read:
"Volunteer firefighter" means a deleted text begin persondeleted text end new text begin firefighternew text end who
deleted text begin is a member of the applicable fire department or the independent nonprofit firefighting
corporationdeleted text end new text begin does not receive compensation per call or hour for firefighting services but who
may receive reimbursement for expenses, who has a choice of availability in providing
services with the fire department, new text end and new text begin who new text end is eligible for membership in deleted text begin the applicabledeleted text end new text begin a
new text end relief association deleted text begin and:deleted text end new text begin associated with the fire department or participates in the statewide
volunteer firefighter plan under chapter 353G.
new text end
deleted text begin
(i) is engaged in providing emergency response services or delivering fire education or
prevention services as a member of a fire department;
deleted text end
deleted text begin
(ii) is trained in or is qualified to provide fire suppression duties or to provide fire
prevention duties under subdivision 8; and
deleted text end
deleted text begin
(iii) meets any other minimum firefighter and service standards established by the fire
department or specified in the articles of incorporation or bylaws of the relief association.
deleted text end
Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision
to read:
new text begin
"Paid on-call firefighter" means a firefighter who
receives compensation per call or per hour for firefighting services, who has a choice of
availability regarding the firefighter's hours or scheduled shifts in providing services with
the fire department, and who is eligible for membership in a relief association associated
with the fire department or participates in the statewide volunteer firefighter plan under
chapter 353G.
new text end
Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision
to read:
new text begin
"Part-time firefighter" means a firefighter who receives
compensation per call or per hour for firefighting services, whose services with the fire
department are scheduled, who is considered by the firefighter's employer to be in part-time
employment, and who, as a result of providing firefighting services, is a member or is
eligible to be a member of the general employees retirement plan or the public employees
police and fire plan under chapter 353.
new text end
Minnesota Statutes 2022, section 424A.001, is amended by adding a subdivision
to read:
new text begin
"Full-time firefighter" or "career
firefighter" means a firefighter who receives compensation per hour or a salary for firefighting
services, whose services with the fire department are scheduled and who, as a result of
providing firefighting services, is a member or is eligible to be a member of the general
employees retirement plan or the public employees police and fire plan under chapter 353.
new text end
Minnesota Statutes 2022, section 424A.003, is amended to read:
(a) When a municipal fire department, a joint powers fire department, or an independent
nonprofit firefighting corporation is directly associated with deleted text begin the volunteerdeleted text end new text begin a new text end firefighters
relief association, the fire chief shall certify annually by March 31 the service credit for the
previous calendar year of each volunteer firefighter new text begin and paid on-call firefighter new text end rendering
active service with the fire department.
(b) The certification shall be made to an officer of the relief association's board of trustees
and to the municipal clerk or clerk-treasurer of the largest municipality in population served
by the associated fire department.
(c) The fire chief shall notify each volunteer firefighter new text begin and paid on-call firefighter
new text end rendering active service with the fire department of the amount of service credit rendered
by the firefighter for the previous calendar year. Upon request, the fire chief shall provide
the firefighter with a written explanation and documentation to support the determination
of service credit. The service credit notification and a description of the process and deadlines
for the firefighter to challenge the fire chief's determination of service credit must be provided
to the firefighter at least 21 days prior to its certification to the relief association and
municipality. If the service credit amount is challenged, the fire chief shall accept and
consider any additional pertinent information and shall make a final determination of service
credit.
(d) The service credit certification must be expressed as the number of completed months
of the previous year during which an active volunteer firefighter new text begin or paid on-call firefighter
new text end rendered at least the minimum level of duties as specified and required by the fire department
under the rules, regulations, and policies applicable to the fire department. No more than
one year of service credit may be certified for a calendar year.
(e) If a volunteer firefighter new text begin or paid on-call firefighter new text end who is a member of the relief
association leaves active firefighting service to render active military service that is required
to be governed by the federal Uniformed Services Employment and Reemployment Rights
Act, as amended, the firefighter must be certified as providing service credit for the period
of the military service, up to the applicable limit of the federal Uniformed Services
Employment and Reemployment Rights Act. If the volunteer firefighter new text begin or paid on-call
firefighter new text end does not return from the military service in compliance with the federal Uniformed
Services Employment and Reemployment Rights Act, the service credits applicable to that
military service credit period are forfeited and canceled at the end of the calendar year in
which the time limit set by federal law occurs.
Minnesota Statutes 2022, section 424A.01, subdivision 1, is amended to read:
deleted text begin No volunteerdeleted text end new text begin (a) A firefighter or any
volunteer emergency medical personnel is eligible for membership in a new text end firefighters relief
association deleted text begin associated with adeleted text end new text begin if the firefighter or volunteer emergency medical personnel
satisfies the requirements of paragraph (b) or (c), as applicable, and is not otherwise
prohibited from membership under this chapter.
new text end
new text begin
(b) To be eligible for membership in a relief association, a firefighter must be a member
of the fire department and:
new text end
new text begin
(1) provide services as a volunteer firefighter or as a paid on-call firefighter, although
the firefighter need not exclusively provide services as either a volunteer firefighter or a
paid on-call firefighter;
new text end
new text begin
(2) be engaged in providing emergency response services or delivering fire education
or prevention services as a member of a fire department;
new text end
new text begin
(3) be trained in or qualified to provide fire suppression duties or to provide fire
prevention duties; and
new text end
new text begin
(4) meet any other minimum firefighter and service standards established by the fire
department or specified in the articles of incorporation or bylaws of the firefighters relief
association.
new text end
new text begin
(c) A volunteer emergency medical personnel is eligible to be a member of the firefighters
relief association and to qualify for a service pension or other benefit coverage of the relief
association on the same basis as fire department personnel who perform or supervise fire
suppression or fire prevention duties if:
new text end
new text begin
(1) the fire department employs or otherwise uses the services of the person solely as
volunteer emergency medical personnel to perform emergency medical response duties or
supervise emergency medical response activities;
new text end
new text begin
(2) the bylaws of the firefighters relief association authorize the volunteer emergency
medical personnel's eligibility; and
new text end
new text begin
(3) the volunteer emergency medical personnel's eligibility is approved by:
new text end
new text begin (i) the new text end municipality, deleted text begin adeleted text end new text begin if the fire department is a municipal department;
new text end
new text begin (ii) thenew text end joint powers deleted text begin entitydeleted text end new text begin boardnew text end , new text begin if the fire department is a joint powers entity; new text end or
new text begin (iii) the contracting municipality or municipalities, if the fire department is new text end an independent
nonprofit firefighting corporation deleted text begin may include as adeleted text end new text begin .
new text end
new text begin (d) Minors are prohibited from membership in a firefightersnew text end relief association deleted text begin member
a minor serving as a volunteer firefighterdeleted text end .
Minnesota Statutes 2022, section 424A.01, subdivision 2, is amended to read:
No person who is serving as a
substitute deleted text begin volunteerdeleted text end firefighter may be considered to be a firefighter for purposes of chapter
477B or this chapter and no substitute deleted text begin volunteerdeleted text end firefighter is authorized to be a member of
any deleted text begin volunteerdeleted text end firefighters relief association governed by chapter 477B or this chapter.
Minnesota Statutes 2022, section 424A.01, subdivision 5, is amended to read:
(a) If the applicable municipality or municipalities
approve, the fire department may employ or otherwise utilize the services of persons as
deleted text begin volunteerdeleted text end firefighters to perform fire prevention duties and to supervise fire prevention
activities.
(b) deleted text begin Personneldeleted text end new text begin Volunteer firefighters and paid on-call firefighters new text end serving in fire prevention
positions are eligible to be members of the applicable deleted text begin volunteer firefighterdeleted text end new text begin firefighters new text end relief
association and to qualify for service pension or other benefit coverage of the relief
association on the same basis as fire department personnel who perform fire suppression
duties.
(c) deleted text begin Personneldeleted text end new text begin Volunteer firefighters and paid on-call firefighters new text end serving in fire prevention
positions also are eligible to receive any other benefits under the applicable law or practice
for services on the same basis as personnel who are employed to perform fire suppression
duties.
Minnesota Statutes 2022, section 424A.015, subdivision 1, is amended to read:
(a) No service pension is
payable to a person while the person remains an active member of the respective fire
department, and a person who is receiving a service pension is not entitled to receive any
other benefits from the special fund of the relief association.
(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service
pension or disability benefit to a former member of the relief association if that person has
not separated from active service with the fire department to which the relief association is
directly associated, unless:
(1) the person discontinues volunteer firefighter new text begin and paid on-call firefighter new text end duties with
the fire department and performs duties within the fire department on a new text begin part-time or new text end full-time
basis;
(2) the governing body of the municipality, of the independent nonprofit firefighting
corporation, or of the joint powers entity has filed its determination with the board of trustees
of the relief association that the person's experience with and service to the fire department
in that person's new text begin part-time or new text end full-time capacity would be difficult to replace; and
(3) the bylaws of the relief association were amended to provide for the payment of a
service pension or disability benefit for such new text begin part-time or new text end full-time employees.
Minnesota Statutes 2022, section 424A.015, subdivision 5, is amended to read:
A relief association may
directly transfer on an institution-to-institution basis the eligible member's lump-sum pension
amount to the requesting member's account in the Minnesota deferred compensation plan,
if:
(1) the governing articles of incorporation or bylaws so provide;
(2) the deleted text begin volunteerdeleted text end firefighter participates in the Minnesota deferred compensation plan
at the time of retirement; and
(3) the applicable retiring firefighter requests in writing that the relief association do so.
Minnesota Statutes 2022, section 424A.015, subdivision 7, is amended to read:
(a) A member with credit for service as an active
firefighter in more than one deleted text begin volunteerdeleted text end firefighters relief association is entitled to a service
pension from each participating relief association if:
(1) the articles of incorporation or bylaws of the relief associations provide for such
combined service pensions;
(2) the applicable requirements of paragraphs (b) to (e) are met; and
(3) the member otherwise qualifies.
(b) A member receiving a service pension under this subdivision must be at least partially
vested under the bylaws of the first participating relief association on the date on which the
member terminates active service with that relief association. The service pension paid from
the first participating relief association shall be based on the years of active service accrued
in the first relief association and the vesting percentage applicable to those years of active
service.
(c) To receive a service pension from each subsequent relief association, the member
must be at least partially vested under the bylaws of the subsequent relief association, taking
into consideration the member's total service credit accrued in all participating relief
associations to the date the member terminates active service with the subsequent relief
association. The service pension paid from each subsequent relief association shall be based
on the years of active service accrued solely in that relief association and the vesting
percentage applicable to the combined amount of total service credit accrued in all of the
participating relief associations.
(d) The member must have one or more years of service credit in each participating
relief association. The service pension must be based on:
(1) for defined benefit relief associations, the service pension amount in effect for the
relief association on the date on which the member's active deleted text begin volunteerdeleted text end firefighting services
covered by that relief association terminate; and
(2) for defined contribution relief associations, the member's individual account balance
on the date on which the member's active deleted text begin volunteerdeleted text end firefighting services covered by that
relief association terminate.
(e) To receive a service pension under this subdivision, the member must become a
member of the subsequent relief association within two years of the date of termination of
active service with the prior relief association. If requested by the member or a subsequent
relief association, the secretary of each prior relief association must provide written notice
to the member and the subsequent relief association regarding the amount of active service
accrued by the member in the prior relief association.
Minnesota Statutes 2022, section 424A.016, subdivision 2, is amended to read:
(a) A relief association,
when its articles of incorporation or bylaws so provide, may pay out of the assets of its
special fund a defined contribution service pension to each of its members who:
(1) separates from active service with the fire department;
(2) reaches age 50;
(3) completes at least five years of active service as an active member of the fire
department to which the relief association is associated;
(4) completes at least five years of active membership with the relief association before
separation from active service; and
(5) complies with any additional conditions as to age, service, and membership that are
prescribed by the bylaws of the relief association.
(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive any disability benefit coverage, is not
entitled to receive additional individual account allocation of fire state aid or municipal
contribution deleted text begin towardsdeleted text end new text begin towardnew text end a service pension, and is considered to have the status of a
person entitled to a deferred service pension.
(c) The service pension earned by a deleted text begin volunteerdeleted text end new text begin firefighter new text end under this chapter and the
articles of incorporation and bylaws of the relief association may be paid whether or not
the municipality or independent nonprofit firefighting corporation to which the relief
association is associated qualifies for the receipt of fire state aid under chapter 477B.
Minnesota Statutes 2022, section 424A.016, subdivision 6, is amended to read:
(a) A "deferred member" means a member of a
relief association who has separated 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 new text begin and paid on-call firefighter new text end duties and who are
employed on a new text begin part-time or new text end full-time basis under section 424A.015, subdivision 1.
(b) A deferred member is entitled to receive a deferred service pension when the 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 makes a valid written application.
(c) A defined contribution relief association must credit interest or additional investment
performance on the deferred lump-sum service pension during the period of deferral for all
deferred members on or after January 1, 2021. A defined contribution relief association
may specify in its bylaws the method by which it will credit interest or additional investment
performance to the accounts of deferred members. Such method shall be limited to one of
the three methods provided in this paragraph. In the event the bylaws do not specify a
method, the interest or additional investment performance must be credited using the method
defined in clause (3). The permissible methods are:
(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
deleted text begin volunteerdeleted text end firefighters 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) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw
amendments made in accordance with paragraph (c) on or before January 1, 2022, shall
apply to members already in deferred status as of January 1, 2021.
(e) Unless the bylaws provide differently, the dates that will be used by a relief association
in determining the creditable amount of interest or additional investment performance on
a deferred service pension shall be as follows:
(1) for a relief association that has elected to credit 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 credit 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.
Minnesota Statutes 2022, section 424A.02, subdivision 1, is amended to read:
(a) A defined benefit relief association, when its articles
of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined
benefit service pension to each of its members who: (1) separates from active service with
the fire department; (2) reaches age 50; (3) completes at least five years of active service
as an active member of the fire department to which the relief association is associated; (4)
completes at least five years of active membership with the relief association before
separation from active service; and (5) complies with any additional conditions as to age,
service, and membership that are prescribed by the bylaws of the relief association. A service
pension computed under this section may be prorated monthly 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. The service
pension earned by a deleted text begin volunteerdeleted text end firefighter under this chapter and the articles of incorporation
and bylaws of the deleted text begin volunteerdeleted text end firefighters relief association may be paid whether or not the
municipality or independent nonprofit firefighting corporation to which the relief association
is associated qualifies for the receipt of fire state aid under chapter 477B.
(b) In the case of a member who has completed at least five years of active service as
an active member of the fire department to which the relief association is associated on the
date that the relief association is established and incorporated, the requirement that the
member complete at least five years of active membership with the relief association before
separation from active service may be waived by the board of trustees of the relief association
if the member completes at least five years of inactive membership with the relief association
before the date of the payment of the service pension. During the period of inactive
membership, the member is not entitled to receive disability benefit coverage, is not entitled
to receive additional service credit deleted text begin towardsdeleted text end new text begin towardnew text end computation of a service pension, and
is considered to have the status of a person entitled to a deferred service pension under
subdivision 7.
(c) No municipality, independent nonprofit firefighting corporation, or joint powers
entity may delegate the power to take final action in setting a service pension or ancillary
benefit amount or level to the board of trustees of the relief association or to approve in
advance a service pension or ancillary benefit amount or level equal to the maximum amount
or level that this chapter would allow rather than a specific dollar amount or level.
Minnesota Statutes 2022, section 424A.02, subdivision 3, is amended to read:
(a) Except as provided in paragraph
(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in
its bylaws a service pension amount above the following maximum amounts:
(1) for a defined benefit relief association in which the governing bylaws provide for a
monthly service pension, the maximum monthly service pension amount per month for each
year of service credited is the lesser of $100 or the maximum monthly service pension
amount that could be adopted by the relief association as a bylaws amendment that satisfies
section 424A.093, subdivision 6, paragraph (d); and
(2) for a defined benefit relief association in which the governing bylaws provide for a
lump-sum service pension, the maximum lump-sum service pension amount for each year
of service credited is the lesser of $15,000 or the maximum lump-sum service pension
amount that could be adopted by the relief association as a bylaws amendment that satisfies
section 424A.092, subdivision 6, paragraph (e).
(b) A defined benefit relief association may set in its bylaws a service pension amount
that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only
if the service pension amount has been ratified by the municipality.
(1) For a defined benefit relief association that pays a monthly service pension, the
maximum monthly service pension amount per month for each year of service credited is
$100.
(2) For a defined benefit relief association that pays a lump-sum service pension, the
maximum lump-sum service pension amount for each year of service credited is $15,000.
(c) 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, unless the bylaws of
the relief association provide that service credit is not given for:
(1) years of active service in excess of caps on service credit; or
(2) years of active service earned by a former member who:
(i) has ceased duties as a volunteer firefighter new text begin and paid on-call firefighter new text end with the fire
department before becoming vested under subdivision 2; and
(ii) has not resumed active service with the fire department and active membership in
the relief association for a period as defined in the relief association's bylaws, of not less
than five years.
Minnesota Statutes 2022, section 424A.02, subdivision 7, is amended to read:
(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 new text begin and paid on-call
firefighter new text end duties and who are employed on a new text begin part-time or new text end 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 2c may, when its governing bylaws so provide, credit interest on the deferred
lump-sum service pension during the period of deferral. If provided for in the bylaws, interest
must be credited 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 trustees under paragraph (c), clause
(3), must be ratified by the governing body of the municipality or joint powers entity 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 credited 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 or joint powers entity 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 credit 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 credit 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 credit 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 deleted text begin volunteerdeleted text end 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.
Minnesota Statutes 2022, section 424A.02, subdivision 9, is amended to read:
A defined benefit relief associationdeleted text begin , including
any volunteer firefighters relief association governed by Laws 2013, chapter 111, article 5,
sections 31 to 42, or any volunteer firefighters division of a relief association governed by
chapter 424,deleted text end new text begin and the Bloomington Fire Department Relief Association new text end may only pay ancillary
benefits deleted text begin whichdeleted text end new text begin thatnew text end would constitute an authorized disbursement as specified in section
424A.05 subject to the following requirements or limitations:
(1) with respect to a defined benefit relief association in which governing bylaws provide
solely for a lump-sum service pension to a retiring member, or provide a retiring member
the choice of either a lump-sum service pension or a monthly service pension and the
lump-sum service pension was chosen, no ancillary benefit may be paid to any former
member or paid to any person on behalf of any former member after the former member (i)
terminates active service with the fire department and active membership in the relief
association; and (ii) commences receipt of a service pension as authorized under this section;
and
(2) with respect to any defined benefit relief association, no ancillary benefit paid or
payable to any member, to any former member, or to any person on behalf of any member
or former member, may exceed in amount the total earned service pension of the member
or former member. The total earned service pension must be calculated by multiplying the
service pension amount specified in the bylaws of the relief association at the time of death
or disability, whichever applies, by the years of service credited to the member or former
member. The years of service must be determined as of (i) the date the member or former
member became entitled to the ancillary benefit; or (ii) the date the member or former
member died entitling a survivor or the estate of the member or former member to an
ancillary benefit. The ancillary benefit must be calculated without regard to whether the
member had attained the minimum amount of service and membership credit specified in
the governing bylaws. For active members, the amount of a permanent disability benefit or
a survivor benefit must be equal to the member's total earned service pension except that
the bylaws of a defined benefit relief association may provide for the payment of a survivor
benefit in an amount not to exceed five times the yearly service pension amount specified
in the bylaws on behalf of any member who dies before having performed five years of
active service in the fire department with which the relief association is affiliated. For
deferred members, the amount of a permanent disability benefit or a survivor benefit must
be calculated using the service pension amount in effect on the date specified in section
424A.015, subdivision 6, unless the bylaws of the relief association specify a different
service pension amount to be used for the calculation.
(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation
or bylaws, the benefit must be paid:
(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;
(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or
(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving children and no beneficiary designated.
(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.
(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:
(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;
(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or
(D) 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.
(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.
(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
survivor benefit payable to a designated beneficiary, the relief association bylaws may limit
the total survivor benefit amount payable.
(5) For purposes of this section, for a monthly benefit deleted text begin volunteer firedeleted text end new text begin firefightersnew text end relief
association or for a combination lump-sum and monthly benefit deleted text begin volunteer firedeleted text end new text begin firefightersnew text end
relief association where a monthly benefit service pension has been elected by or a monthly
benefit is payable with respect to a firefighter, a designated beneficiary must be a natural
person. For purposes of this section, for a lump-sum deleted text begin volunteer firedeleted text end new text begin firefightersnew text end relief
association or for a combination lump-sum and monthly benefit deleted text begin volunteer firedeleted text end new text begin firefightersnew text end
relief association where a lump-sum service pension has been elected by or a lump-sum
benefit is payable with respect to a firefighter, a trust created under chapter 501C may be
a designated beneficiary. If a trust is payable to the surviving children organized under
chapter 501C as authorized by this section and there is no surviving spouse, the survivor
benefit may be paid to the trust, notwithstanding a requirement of this section to the contrary.
Minnesota Statutes 2022, section 424A.021, is amended to read:
Subject to restrictions stated in this section, a volunteer
firefighter new text begin or paid on-call firefighter new text end who is absent from firefighting service due to service
in the uniformed services, as defined in United States Code, title 38, section 4303(13), may
obtain service credit if the relief association is a defined benefit plan or an allocation by the
relief association as though the person was an active member if the relief association is a
defined contribution plan for the period of the uniformed service, not to exceed five years,
unless a longer period is required under United States Code, title 38, section 4312.
(a) To be eligible for service credit or an allocation as though an
active member under this section, the deleted text begin volunteerdeleted text end firefighter must return to firefighting service
with coverage by the same relief association or by the successor to that relief association
upon discharge from service in the uniformed service within the time frame required in
United States Code, title 38, section 4312(e).
(b) Service credit or an allocation as though an active member is not authorized if the
firefighter separates from uniformed service with a dishonorable or bad conduct discharge
or under other than honorable conditions.
(c) Service credit or an allocation as though an active member is not authorized if the
firefighter fails to provide notice to the fire department that the individual is leaving to
provide service in the uniformed service, unless it is not feasible to provide that notice due
to the emergency nature of the situation.
Minnesota Statutes 2022, section 424A.094, subdivision 1, is amended to read:
(a) This section applies to any independent nonprofit firefighting corporation
incorporated or organized under chapter 317A deleted text begin whichdeleted text end new text begin thatnew text end : (1) operates exclusively for
firefighting purposes; (2) deleted text begin whichdeleted text end is composed of volunteer firefightersnew text begin , paid on-call
firefighters, or both volunteer firefighters and paid on-call firefightersnew text end ; and (3) deleted text begin whichdeleted text end has
a duly established separate subsidiary incorporated firefighters relief association deleted text begin whichdeleted text end new text begin thatnew text end
provides retirement coverage for or pays a service pension to a retired firefighter or a
retirement benefit to a surviving dependent of either an active or a retired firefighter, and
deleted text begin whichdeleted text end new text begin thatnew text end is subject to the applicable provisions of chapter 424A.
(b) Notwithstanding any law to the contrary, a municipality contracting with an
independent nonprofit firefighting corporation must be included in the distribution of fire
state aid to the appropriate county auditor by the state auditor only if the independent
nonprofit firefighting corporation complies with the provisions of this section.
Minnesota Statutes 2022, section 424A.10, is amended to read:
For purposes of this section:
(1) "qualified recipient" means a deleted text begin volunteerdeleted text end firefighter who receives a lump-sum
distribution of pension or retirement benefits from a deleted text begin volunteerdeleted text end firefighters relief association
or from the statewide volunteer firefighter plan;new text begin and
new text end
(2) "survivor of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter" means the surviving
spouse of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter or, if none, the surviving child
or children of a deceased active or deferred deleted text begin volunteerdeleted text end firefighter, or, if none, the designated
beneficiary of the deceased active or deferred deleted text begin volunteerdeleted text end firefighter, or, if no beneficiary has
been designated, the estate of the deceased active or deferred deleted text begin volunteerdeleted text end firefighterdeleted text begin ;deleted text end new text begin .
new text end
deleted text begin
(3) "active volunteer firefighter" means a person who:
deleted text end
deleted text begin
(i) regularly renders fire suppression service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
deleted text end
deleted text begin
response activities for a fire department;
deleted text end
deleted text begin
(ii) has met the statutory and other requirements for relief association membership; and
deleted text end
deleted text begin
(iii) is deemed by the relief association under law and its bylaws to be a fully qualified
deleted text end
deleted text begin
member of the relief association or from the statewide volunteer firefighter plan for at least
deleted text end
deleted text begin
one month;
deleted text end
deleted text begin
(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
deleted text end
deleted text begin
(i) terminated active firefighting service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
response activities; and
deleted text end
deleted text begin
(ii) has sufficient service credit from the applicable relief association or from the statewide
volunteer firefighter plan to be entitled to a service pension under the bylaws of the relief
association, but has not applied for or has not received the service pension; and
deleted text end
deleted text begin
(5) "volunteer firefighter" includes an individual whose services were utilized to perform
or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and
individuals whose services were used to perform emergency medical response duties or
supervise emergency medical response activities if authorized under section 424A.01,
subdivision 5a.
deleted text end
(a) Upon the payment by a deleted text begin volunteerdeleted text end
firefighters relief association or by the statewide volunteer firefighter plan of a lump-sum
distribution to a qualified recipient, the association or retirement plan, as applicable, 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
statewide volunteer firefighter plan must pay the supplemental benefit out of the statewide
volunteer firefighter 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 deleted text begin volunteerdeleted text end
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 deleted text begin active
or deferred volunteerdeleted text end 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 deleted text begin active volunteer firefighter or of a deceased
deferred volunteerdeleted text end firefighter, the association or retirement plan, as applicable, must pay a
supplemental survivor benefit to the survivor of the deceased deleted text begin active or deferred volunteerdeleted text end
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 deleted text begin active or deferred volunteerdeleted text end
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) 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
deleted text begin volunteerdeleted text end firefighter's period of deferral.
(d) 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 deleted text begin volunteerdeleted text end
firefighter benefit.
(e) If a qualified recipient receives more than one lump-sum distribution, the qualified
recipient is eligible to receive a supplemental benefit or supplemental survivor benefit,
whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall
be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate
limit.
(f) Qualified recipients who elect to receive their lump-sum distribution in installments
under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive
one supplemental benefit calculated on the total lump-sum distribution amount under
paragraph (a) or (b), as applicable.
(a) Each year, to be eligible for state reimbursement of
the amount of supplemental benefits paid under subdivision 2 during the preceding calendar
year, the deleted text begin volunteerdeleted text end firefighters relief association or the statewide volunteer firefighter plan
shall apply to the commissioner of revenue by February 15. By March 15, the commissioner
shall reimburse the relief association for the amount of the supplemental benefits paid by
the relief association to qualified recipients and to survivors of deceased deleted text begin active or deferred
volunteerdeleted text end firefighters.
(b) The commissioner of revenue shall prescribe the form of and supporting information
that must be supplied as part of the application for state reimbursement. The commissioner
of revenue shall reimburse the relief association by paying the reimbursement amount to
the treasurer of the municipality where the association is located and shall reimburse the
retirement plan by paying the reimbursement amount to the executive director of the Public
Employees Retirement Association. Within 30 days after receipt, the municipal treasurer
shall transmit the state reimbursement to the treasurer of the association if the association
has filed a financial report with the municipality. If the relief association has not filed a
financial report with the municipality, the municipal treasurer shall delay transmission of
the reimbursement payment to the association until the complete financial report is filed.
If the association has dissolved or has been removed as a trustee of state aid, the treasurer
shall deposit the money in a special account in the municipal treasury, and the money may
be disbursed only for the purposes and in the manner provided in section 424A.08. When
paid to the association, the reimbursement payment must be deposited in the special fund
of the relief association and when paid to the retirement plan, the reimbursement payment
must be deposited in the retirement fund of the plan.
(c) A sum sufficient to make the payments is appropriated from the general fund to the
commissioner of revenue.
(a) The supplemental benefit provided by this
section is in lieu of the state income tax exclusion for lump-sum distributions of retirement
benefits paid to deleted text begin volunteerdeleted text end firefighters.
(b) If the law is modified to exclude or exempt deleted text begin volunteerdeleted text end firefighters' lump-sum
distributions from state income taxation, the supplemental benefits under this section are
no longer payable, beginning with the first calendar year in which the exclusion or exemption
is effective. This subdivision does not apply to exemption of all or part of a lump-sum
distribution under section 290.032 or 290.0802.
new text begin
In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer firefighters
relief association," "volunteer firefighter relief association," "volunteer firefighters' relief
association," and "volunteer fire relief association" to "firefighters relief association"
wherever the terms appear. The revisor shall make any necessary grammatical changes or
changes to sentence structure necessary to preserve the meaning of the text as a result of
the changes.
new text end
new text begin
Minnesota Statutes 2022, section 424A.01, subdivision 5a,
new text end
new text begin
is repealed.
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Sections 1 to 27 are effective January 1, 2025.
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Repealed Minnesota Statutes: 24-05977
Volunteer emergency medical personnel are eligible to be members of the applicable volunteer firefighters relief association and to qualify for service pension or other benefit coverage of the relief association on the same basis as fire department personnel who perform or supervise fire suppression or fire prevention duties if:
(1) the fire department employs or otherwise uses the services of persons solely as volunteer emergency medical personnel to perform emergency medical response duties or supervise emergency medical response activities;
(2) the bylaws of the relief association authorize the eligibility; and
(3) the eligibility is approved by:
(i) the municipality, if the fire department is a municipal department;
(ii) the joint powers board, if the fire department is a joint powers entity; or
(iii) the contracting municipality or municipalities, if the fire department is an independent nonprofit firefighting corporation.