Minnesota Legislature
HF 4297
as introduced - 91st Legislature (2019 - 2020) Posted on 03/09/2020 01:31pm
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A bill for an act
relating to retirement; Public Employees Retirement Association statewide volunteer
firefighter plan; making administrative changes; amending Minnesota Statutes
2018, sections 353G.01, by adding a subdivision; 353G.05, subdivisions 1, 5, by
adding a subdivision; 353G.09, subdivision 3, by adding a subdivision; 353G.11,
subdivision 2; 353G.121.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 353G.01, is amended by adding a subdivision
to read:
new text begin Subd. 6a. new text end
new text begin Governing body. new text end
new text begin
"Governing body" means the governing body of a
municipality or independent nonprofit firefighting corporation or, in the case of a joint
powers entity, the governing bodies of the municipalities associated with the joint powers
entity.
new text end
Sec. 2.
Minnesota Statutes 2018, section 353G.05, subdivision 1, is amended to read:
Subdivision 1.
Coverage.
deleted text begin Anydeleted text end new text begin (a) A relief association or a new text end municipality or independent
nonprofit firefighting corporation new text begin affiliated with a relief association new text end may elect to have its
volunteer firefighters covered by the lump-sum retirement division or the monthly benefit
retirement division of the retirement plandeleted text begin , whichever appliesdeleted text end .
new text begin
(b) A municipality or independent nonprofit firefighting corporation that is not affiliated
with a relief association may elect to have its volunteer firefighters covered by the lump-sum
retirement division of the retirement plan.
new text end
Sec. 3.
Minnesota Statutes 2018, section 353G.05, subdivision 5, is amended to read:
Subd. 5.
Finalization; coverage transfer.
deleted text begin Upon receipt ofdeleted text end new text begin (a) The executive director
shall deliver new text end the cost analysis requested under subdivision 2 or 3, new text begin to new text end the new text begin board of trustees
of the relief association, if one exists, and the new text end governing body deleted text begin of the municipality or
independent nonprofit firefighting corporation associated with the fire department shall
either approve or disapprove the retirement coverage changedeleted text end new text begin .
new text end
new text begin (b) The transfer of coverage to the retirement plan is considered approved if,new text end within 120
daysnew text begin of receipt of the cost analysis, the transfer is approved by both (1) the board of trustees
of the relief association, if one exists, and (2) the governing bodynew text end . If the deleted text begin retirement coverage
change is not acted upondeleted text end new text begin governing body does not take action to approve the transfer new text end within
120 daysdeleted text begin , it is deemed to be disapproveddeleted text end new text begin of receipt of the cost analysis, the transfer is not
approvednew text end .
new text begin (c)new text end If the deleted text begin retirement coverage changedeleted text end new text begin transfer new text end is approved deleted text begin by the applicable governing
bodydeleted text end , coverage by the deleted text begin voluntary statewide volunteer firefighterdeleted text end retirement plan is effective
on the January 1 next following the deleted text begin approvaldeleted text end datenew text begin of approval by the last governing bodynew text end .
Sec. 4.
Minnesota Statutes 2018, section 353G.05, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin Joint powers entities. new text end
new text begin
If transfer of coverage to the retirement plan is being
requested for volunteer firefighters that provide services to a fire department operated as
or by a joint powers entity, whenever an election or approval by or delivery to the governing
body of a municipality is required under this section, all municipalities that executed the
joint powers agreement must execute the election or approval or receive delivery, unless
the joint powers agreement specifies another process be followed in order for the action of
a joint powers entity to be effective.
new text end
Sec. 5.
Minnesota Statutes 2018, section 353G.09, subdivision 3, is amended to read:
Subd. 3.
Alternative lump-sum pension eligibility and computation.
(a) An active
member of the lump-sum retirement division of the retirement plan is entitled to an alternative
lump-sum service pension from the retirement plan if the person:
(1) has separated from active service with the fire department for at least 30 days;
(2) has attained the age of at least 50 years or the age for receipt of a service pension
under the benefit plan of the applicable former volunteer firefighter relief association as of
the date immediately before the election of the retirement coverage change, whichever is
later;
(3) has completed at least five years of active service with the fire department and at
least five years in total as a member of the applicable former volunteer firefighter relief
association or of the lump-sum retirement division of the retirement plan, but has not rendered
at least five years of good time service credit as a member of the lump-sum retirement
division of the plan; and
(4) applies in a manner prescribed by the executive director for the service pension.
(b) If retirement coverage before statewide retirement plan coverage was provided new text begin to
an active member new text end by a defined benefit deleted text begin lump-sum retirement plan volunteer firefighterdeleted text end relief
association, new text begin as defined in section 424A.001, subdivision 1b, new text end the alternative lump-sum service
pension isnew text begin :
new text end
new text begin (1)new text end the service pension deleted text begin amountdeleted text end new text begin level new text end specified in the bylaws of the applicable former
volunteer firefighter relief association deleted text begin eitherdeleted text end as of the date immediately before the election
of the retirement coverage change deleted text begin or as of the date immediately before the termination of
firefighting services, whichever is earlier,deleted text end new text begin ;new text end multiplied by deleted text begin the total number of
deleted text end
new text begin (2) either fullnew text end years of service new text begin or years and months of service, as specified in the bylaws,
new text end as a member of that volunteer firefighter relief association and as a member of the retirement
plandeleted text begin .deleted text end new text begin ; multiplied by
new text end
new text begin
(3) the non-forfeitable percentage of the service pension to which the member is entitled
under subdivision 2.
new text end
new text begin (c)new text end If retirement coverage before statewide retirement plan coverage was provided new text begin to an
active member new text end by a defined contribution deleted text begin plan volunteer firefighterdeleted text end relief association, new text begin as
defined in section 424A.001, subdivision 1c, new text end the alternative lump-sum service pension isdeleted text begin
an amount equal to that portion ofdeleted text end new text begin :
new text end
new text begin (1)new text end the person's account balance deleted text begin that the person was vested fordeleted text end as of the date immediately
before the deleted text begin date on which statewide retirement plan coverage was first provided to the persondeleted text end
new text begin election of the retirement coverage change; multiplied by
new text end
new text begin (2) the non-forfeitable percentage of the account balance to which the person is entitled
under subdivision 2; new text end plus
new text begin (3)new text end six percent annual compound interest from deleted text begin thatdeleted text end new text begin the new text end date new text begin immediately before the
election of the retirement coverage change new text end until the date immediately before the date of
retirement.
Sec. 6.
Minnesota Statutes 2018, section 353G.09, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin
Authorization for payment; deferred service pensions from former volunteer
firefighter relief association.
new text end
new text begin
A person who had the status of deferred member with a
former volunteer firefighter relief association as of the date immediately before the election
of the retirement coverage change is entitled to a service pension from the retirement plan
when the person becomes eligible under the bylaws of the applicable former volunteer
firefighter relief association as of the date immediately before the termination of firefighting
services. The service pension payable will be the amount as determined by the former relief
association pursuant to chapter 424A.
new text end
Sec. 7.
Minnesota Statutes 2018, section 353G.11, subdivision 2, is amended to read:
Subd. 2.
Lump-sum retirement division level selection.
deleted text begin After the transfer of retirement
coverage to the lump-sum retirement division of the retirement plan, the governing body
or bodies of the entity or entities operating the fire department whose firefighters are covered
by the retirement plan may requestdeleted text end A cost estimate from the executive director of an increase
in the service pension level applicable to the active firefighters of the fire departmentnew text begin may
be requested by: (1) the fire chief of a department that has active membership covered by
the lump-sum retirement division; or (2) the governing body operating a fire department
that has active membership covered by the lump-sum retirement divisionnew text end . Within 120 days
of the receipt of the cost estimate prepared by the executive director using a procedure
certified as accurate by the approved actuary retained by the Public Employees Retirement
Association, the governing body deleted text begin or bodiesdeleted text end may approve the service pension level change,
effective for January 1 of the following calendar year unless the governing body deleted text begin or bodies
specifydeleted text end new text begin specifiesnew text end in the deleted text begin approveddeleted text end new text begin approval new text end document an effective date deleted text begin as thedeleted text end new text begin that is new text end January
1 of the second year following the deleted text begin level increasedeleted text end approvalnew text begin datenew text end . If the approval occurs after
April 30, the required municipal contribution for the following calendar year must be
recalculated and the results reported to the deleted text begin municipality or municipalitiesdeleted text end new text begin governing bodynew text end .
If not approved deleted text begin in a timely fashiondeleted text end new text begin within 120 days of the receipt of the cost estimatenew text end , the
service pension level change is considered to have been disapproved.
Sec. 8.
Minnesota Statutes 2018, section 353G.121, is amended to read:
353G.121 MONTHLY BENEFIT RETIREMENT DIVISION; POST-TRANSFER
BENEFIT PLAN DOCUMENT MODIFICATIONS.
(a) The fire chief of a fire department that has an active membership who are covered
by the monthly benefit retirement division of the statewide deleted text begin retirementdeleted text end new text begin volunteer firefighter
new text end plan may initiate the process of modifying the retirement benefit plan document under this
section.
(b) The modification procedure is initiated when the applicable fire chief files with the
executive director of the Public Employees Retirement Association a written summary of
the desired benefit plan document modification, the proposed benefit plan document
modification language, a written request for the preparation of an actuarial cost estimate
for the proposed benefit plan document modification, and payment of the estimated cost of
the actuarial cost estimate.
(c) Upon receipt of the modification request and related documents, the executive director
shall review the language of the proposed benefit plan document modification and, if a
clarification is needed in the submitted language, shall inform the fire chief of the necessary
clarification. Once the proposed benefit plan document modification language has been
clarified by the fire chief and resubmitted to the executive director, the executive director
shall arrange for the approved actuary retained by the Public Employees Retirement
Association to prepare a benefit plan document modification cost estimate under the
applicable provisions of section 356.215 and of the standards for actuarial work adopted
by the Legislative Commission on Pensions and Retirement. Upon completion of the benefit
plan document modification cost estimate, the executive director shall forward the estimate
to the fire chief who requested it and to the chief financial officer of the municipality or
entity with which the fire department is primarily associated.
(d) The fire chief, upon receipt of the cost estimate, shall circulate the cost estimate with
the active firefighters in the fire department and shall take reasonable steps to provide the
estimate results to any affected retired members of the fire department and their beneficiaries.
The chief financial officer of the municipality or entity associated with the fire department
shall present the proposed modification language and the cost estimate to the governing
body of the municipality or entity for its consideration at a public hearing held for that
purpose.
(e) If the governing body of the municipality or entity approves the modification language,
the chief administrative officer of the municipality or entity shall notify the executive director
of the Public Employees Retirement Association of that approval. The benefit plan document
modification is effective on the January 1 next following the date of filing the approval with
the Public Employees Retirement Association deleted text begin and the state auditordeleted text end .
Sec. 9. new text begin REVISOR INSTRUCTION.
new text end
new text begin
In Minnesota Statutes, the revisor of statutes shall substitute the term "statewide volunteer
firefighter plan" for "voluntary statewide volunteer firefighter retirement plan" and the term
"statewide volunteer firefighter fund" for "voluntary statewide volunteer firefighter retirement
fund" wherever the terms refer to the retirement plan and fund established under Minnesota
Statutes, chapter 353G.
new text end
Sec. 10. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 9 are effective the day following final enactment.
new text end