SF 2473

as introduced - 89th Legislature (2015 - 2016) Posted on 04/29/2016 09:13am

A bill for an act
relating to volunteer firefighters relief associations; implementing the
recommendations of the state auditor's volunteer firefighter working group;
addressing various service credit and service pension eligibility issues; updating
references to accommodate joint powers fire departments; amending Minnesota
Statutes 2014, sections 424A.01, by adding subdivisions; 424A.015, by adding a
subdivision; 424B.20, subdivision 4; proposing coding for new law in Minnesota
Statutes, chapter 424A; repealing Minnesota Statutes 2014, section 424A.02,
subdivision 13.

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

Section 1.

new text begin [424A.003] CERTIFICATION OF SERVICE CREDIT.
new text end

new text begin (a) When a municipal fire department, a joint powers fire department, or an
independent nonprofit firefighting corporation is directly associated with the volunteer
firefighters relief association, the fire chief shall certify annually by March 31 the service
credit for the previous calendar year of each volunteer firefighter rendering active service
with the fire department.
new text end

new text begin (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.
new text end

new text begin (c) The fire chief shall notify each volunteer firefighter rendering active service with
the fire department of the amount of service credit rendered by the firefighter for the
previous calendar year. 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 60 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.
new text end

new text begin (d) The service credit certification must be expressed as the number of completed
months of the previous year during which an active volunteer firefighter 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.
new text end

new text begin (e) If a volunteer firefighter 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 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Prohibition on receipt of concurrent service credit. new text end

new text begin No firefighter may
be credited with service credit in a volunteer firefighters relief association for the same
hours of service for which coverage is already provided in a fund operated pursuant to
chapter 353.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017, and applies to
service rendered on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Volunteer emergency medical personnel. new text end

new text begin 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:
new text end

new text begin (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;
new text end

new text begin (2) the bylaws of the relief association authorize the eligibility; and
new text end

new text begin (3) the eligibility is approved by:
new text end

new text begin (i) the municipality, if the fire department is a municipal department;
new text end

new text begin (ii) the joint powers board, if the fire department is a joint powers entity; or
new text end

new text begin (iii) the contracting municipality or municipalities, if the fire department is an
independent nonprofit firefighting corporation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017, and applies to
service rendered on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2014, section 424A.015, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Combined service pensions. new text end

new text begin (a) A volunteer firefighter with credit for
service as an active firefighter in more than one volunteer firefighters relief association is
entitled to a prorated service pension from each relief association if:
new text end

new text begin (1) the articles of incorporation or bylaws of the relief associations provide;
new text end

new text begin (2) the applicable requirements of paragraphs (b) and (c) are met; and
new text end

new text begin (3) the volunteer firefighter otherwise qualifies.
new text end

new text begin (b) A volunteer firefighter receiving a prorated service pension under this subdivision
must have a total combined amount of service credit from the two or more relief
associations of ten years or more, unless the bylaws of every affected relief association
specify less than a ten-year service vesting requirement, in which case, the total amount of
required service credit is the longest service vesting requirement of the relief associations.
The member must have one year or more of service credit in each relief association. The
prorated service pension must be based on:
new text end

new text begin (1) for defined benefit relief associations, the service pension amount in effect for
the relief association on the date on which active volunteer firefighting services covered
by that relief association terminate; and
new text end

new text begin (2) for defined contribution relief associations, the member's individual account
balance on the date on which active volunteer firefighting services covered by that relief
association terminate.
new text end

new text begin (c) To receive a prorated service pension under this subdivision, the firefighter
must become a member of the second or succeeding association and must give notice of
membership to the prior association within two years of the date of termination of active
service with the prior association. The second or subsequent relief association secretary
must certify the notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2014, section 424B.20, subdivision 4, is amended to read:

Subd. 4.

Benefit trust fund establishment.

(a) After the settlement of nonbenefit
legal obligations of the special fund of the volunteer firefighters relief association under
subdivision 3, the board of the relief association shall transfer the remaining assets of the
special fund, as securities or in cash, as applicable, to the chief financial official of the
municipality in which the associated fire department was located if the fire department was
a municipal fire department or to the chief financial official of the municipality with the
largest population served by the fire department if the fire department was an independent
nonprofit firefighting corporation. new text begin If the fire department was a joint powers entity, the
remaining assets of the special fund shall be transferred to the chief financial official of
the municipality designated as the fiscal agent in the joint powers agreement or, if the
agreement does not designate a municipality as the fiscal agent, the remaining assets of
the special fund shall be transferred to the chief financial official of the municipality with
the largest population served by the joint powers fire department. new text end The board shall also
compile a schedule of the relief association members to whom a service pension is or will
be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or
benefit payable based on the applicable bylaws and state law and the service rendered to
the date of the dissolution, and the date on which the pension or benefit would first be
payable under the bylaws of the relief association and state law.

(b) The municipality deleted text begin in which is located deleted text end new text begin receiving the remaining assets of the special
fund of new text end a volunteer firefighters relief association that is dissolving under this section shall
establish a separate account in the municipal treasury which must function as a trust fund
for members of the volunteer firefighters relief association and their beneficiaries to whom
the volunteer firefighters relief association owes a service pension or other benefit under
the bylaws of the relief association and state law. Upon proper application, on or after the
initial date on which the service pension or benefit is payable, the municipal treasurer shall
pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the
other records of the dissolved relief association. The trust fund under this section must be
invested and managed consistent with chapter 356A and section 424A.095. Upon payment
of the last service pension or benefit due and owing, any remaining assets in the trust
fund cancel to the general fund of the municipality deleted text begin . deleted text end new text begin or, if the fire department was a joint
powers entity, any remaining assets in the trust fund cancel to the general fund of each
municipality that was a contracting party to the joint powers agreement as specified in the
joint powers agreement. If the joint powers agreement does not specify how the remaining
assets are to be distributed among the contracting parties, each of the contracting parties
shall receive a pro rata share of the remaining assets based on the proportion of total
operating contributions each contracting municipality made to the joint powers entity over
the most recent ten calendar years. new text end If the special fund of the volunteer firefighters relief
association had an unfunded actuarial accrued liability upon dissolution, the municipality
is liable for that unfunded actuarial accrued liability. new text begin If the fire department was a joint
powers entity, the contracting municipalities are liable for their share of the unfunded
actuarial accrued liability as specified in the joint powers agreement. If the joint powers
agreement does not specify liability for any unfunded actuarial accrued liability, the
contracting municipalities are liable for their pro rata share of the unfunded actuarial
accrued liability based on the proportion of total operating contributions each contracting
municipality made to the joint powers entity over the most recent ten calendar years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 424A.02, subdivision 13, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017.
new text end