SF 2569

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; consolidating the firefighters 
  1.3             relief associations in the cities of Norwood and Young 
  1.4             America; making technical changes; transferring assets.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CONSOLIDATED NORWOOD-YOUNG AMERICA VOLUNTEER 
  1.7   FIREFIGHTERS RELIEF ASSOCIATION.] 
  1.8      Subdivision 1.  [COMBINATION.] The cities of Norwood and 
  1.9   Young America in Carver county have conducted the necessary 
  1.10  proceedings to combine as one municipality to be known as 
  1.11  Norwood-Young America effective January 1, 1997, pursuant to 
  1.12  Minnesota Statutes, sections 465.81 to 465.87. 
  1.13     Subd. 2.  [CREATION.] The Norwood volunteer firefighters 
  1.14  relief association and the Young America volunteer firefighters 
  1.15  relief association are consolidated into a single volunteer 
  1.16  firefighters relief association in the manner provided by this 
  1.17  chapter.  The consolidated volunteer firefighters relief 
  1.18  association is to be governed by this chapter and the applicable 
  1.19  provisions of Minnesota Statutes, chapters 69, 317A, 356, 356A, 
  1.20  and 424A. 
  1.21     Subd. 3.  [CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF 
  1.22  ASSOCIATION.] The consolidated volunteer firefighters relief 
  1.23  association must be incorporated under Minnesota Statutes, 
  1.24  chapter 317A.  The incorporators of the consolidated relief 
  1.25  association must include at least one board member of the former 
  2.1   Norwood volunteer firefighters relief association and at least 
  2.2   one board member of the former Young America volunteer 
  2.3   firefighters relief association.  The consolidated relief 
  2.4   association must be incorporated no later than February 1, 1997. 
  2.5      Sec. 2.  [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS 
  2.6   RELIEF ASSOCIATION.] 
  2.7      Subdivision 1.  [BOARD OF TRUSTEES.] The consolidated 
  2.8   volunteer firefighters relief association is governed by a board 
  2.9   of trustees as provided in Minnesota Statutes, section 424A.04, 
  2.10  subdivision 1. 
  2.11     Subd. 2.  [COMPOSITION OF BOARD.] The board must have three 
  2.12  officers, including a president, a secretary, and a treasurer.  
  2.13  The membership of the consolidated volunteer firefighters relief 
  2.14  association must elect the three officers from the board 
  2.15  members.  A board of trustees member may not hold more than one 
  2.16  officer position at the same time. 
  2.17     Subd. 3.  [BOARD ADMINISTRATION.] The board of trustees 
  2.18  must administer the affairs of the relief association consistent 
  2.19  with this chapter and the applicable provisions of Minnesota 
  2.20  Statutes, chapters 69, 356A, and 424A. 
  2.21     Sec. 3.  [SPECIAL AND GENERAL FUNDS.] 
  2.22     The consolidated volunteer firefighters relief association 
  2.23  must establish and maintain a special fund and a general fund.  
  2.24  The special fund must be established and maintained as provided 
  2.25  in Minnesota Statutes, section 424A.05.  The general fund must 
  2.26  be established and maintained as provided in Minnesota Statutes, 
  2.27  section 424A.06. 
  2.28     Sec. 4.  [EFFECTIVE DATE OF CONSOLIDATION; TRANSFERS.] 
  2.29     The first business day occurring 30 days after the 
  2.30  incorporation of the consolidated volunteer firefighters relief 
  2.31  association under section 1 is the effective date of 
  2.32  consolidation.  On the effective date of consolidation, the 
  2.33  administration, records, assets, and liabilities of the prior 
  2.34  Norwood volunteer firefighters relief association and the prior 
  2.35  Young America volunteer firefighters relief association are 
  2.36  transferred to the consolidated volunteer firefighters relief 
  3.1   association.  On the effective date of consolidation, the 
  3.2   Norwood volunteer firefighters relief association and the Young 
  3.3   America volunteer firefighters relief association cease to exist 
  3.4   as legal entities, except for the purposes of winding up 
  3.5   association affairs as provided by this chapter. 
  3.6      Sec. 5.  [TRANSFER OF ADMINISTRATION.] 
  3.7      On the effective date of consolidation, the administration 
  3.8   of the prior relief associations is transferred to the board of 
  3.9   trustees of the consolidated volunteer firefighters relief 
  3.10  association. 
  3.11     Sec. 6.  [TRANSFER OF RECORDS.] 
  3.12     On the effective date of consolidation, the secretary and 
  3.13  the treasurer of the Norwood volunteer firefighters relief 
  3.14  association and the secretary and treasurer of the Young America 
  3.15  volunteer firefighters relief association shall transfer all 
  3.16  records and documents relating to the prior relief associations 
  3.17  to the secretary and treasurer of the consolidated volunteer 
  3.18  firefighters relief association. 
  3.19     Sec. 7.  [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.] 
  3.20     (a) On the effective date of consolidation, the secretary 
  3.21  and the treasurer of the Norwood volunteer firefighters relief 
  3.22  association and the secretary and treasurer of the Young America 
  3.23  volunteer firefighters relief association shall transfer the 
  3.24  assets of the special fund of the applicable relief association 
  3.25  to the special fund of the consolidated relief association.  
  3.26  Unless the appropriate secretary and treasurer decide otherwise, 
  3.27  the assets may be transferred as investment securities rather 
  3.28  than cash.  The transfer must include any accounts receivable.  
  3.29  The appropriate secretary must settle any accounts payable from 
  3.30  the special fund of the relief association before the effective 
  3.31  date of consolidation. 
  3.32     (b) Upon the transfer of the assets of the special fund of 
  3.33  a prior relief association, the pension liabilities of that 
  3.34  special fund become the obligation of the special fund of the 
  3.35  consolidated volunteer firefighters relief association. 
  3.36     (c) Upon the transfer of the prior relief association 
  4.1   special fund assets, the board of trustees of the consolidated 
  4.2   volunteer firefighters relief association has legal title to and 
  4.3   management responsibility for the transferred assets as trustees 
  4.4   for persons having a beneficial interest in those assets arising 
  4.5   out of the benefit coverage provided by the prior relief 
  4.6   association. 
  4.7      (d) The consolidated volunteer firefighters relief 
  4.8   association is the successor in interest in all claims for and 
  4.9   against the special funds of the prior Norwood volunteer 
  4.10  firefighters relief association and the prior Young America 
  4.11  volunteer firefighters relief association, or the cities of 
  4.12  Norwood and Young America, with respect to the special funds of 
  4.13  the prior relief associations.  The status of successor in 
  4.14  interest does not apply to any claim against a prior relief 
  4.15  association, the city in which that relief association is 
  4.16  located, or any person connected with the prior relief 
  4.17  association or the city, based on any act or acts that were not 
  4.18  done in good faith and that constituted a breach of fiduciary 
  4.19  responsibility under common law or Minnesota Statutes, chapter 
  4.20  356A. 
  4.21     Sec. 8.  [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.] 
  4.22     Prior to the effective date of consolidation, the secretary 
  4.23  of the Norwood volunteer firefighters relief association and the 
  4.24  secretary of the Young America volunteer firefighters relief 
  4.25  association shall settle any accounts payable from the 
  4.26  respective general fund or any other relief association fund in 
  4.27  addition to the relief association special fund.  Investments 
  4.28  held by a fund of the prior relief associations in addition to 
  4.29  the special fund must be liquidated before the effective date of 
  4.30  consolidation as the bylaws of the relief association provide.  
  4.31  Prior to the effective date of consolidation, the respective 
  4.32  relief associations must pay all applicable general fund 
  4.33  expenses from their respective general funds.  Any balance 
  4.34  remaining in the general fund or in a fund other than the relief 
  4.35  association special fund as of the effective date of 
  4.36  consolidation must be paid to the new general fund of the 
  5.1   consolidated volunteer relief association. 
  5.2      Sec. 9.  [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.] 
  5.3      Following the transfer of administration, records, special 
  5.4   fund assets, and special fund liabilities from the prior relief 
  5.5   associations to the consolidated volunteer firefighters relief 
  5.6   association, the Norwood volunteer firefighters relief 
  5.7   association and the Young America volunteer firefighters relief 
  5.8   association cease to exist as legal entities for any purpose.  
  5.9   The city clerk of the city of Norwood-Young America shall notify 
  5.10  the following governmental officials of the termination of the 
  5.11  respective volunteer firefighters relief associations and of the 
  5.12  establishment of the consolidated volunteer firefighters relief 
  5.13  association: 
  5.14     (1) Minnesota secretary of state; 
  5.15     (2) Minnesota state auditor; 
  5.16     (3) Minnesota commissioner of revenue; and 
  5.17     (4) commissioner of the federal Internal Revenue Service. 
  5.18     Sec. 10.  [ADMINISTRATIVE EXPENSES.] 
  5.19     The payment of authorized administrative expenses of the 
  5.20  consolidated volunteer firefighters relief association must be 
  5.21  from the special fund of the consolidated volunteer firefighters 
  5.22  relief association in accordance with Minnesota Statutes, 
  5.23  section 69.80, and as provided for in the bylaws of the 
  5.24  consolidated volunteer firefighters relief association and 
  5.25  approved by the board of trustees or the consolidated volunteer 
  5.26  firefighters relief association.  The payment of any other 
  5.27  expenses of the consolidated volunteer firefighters relief 
  5.28  association must be from the general fund of the consolidated 
  5.29  volunteer firefighters relief association in accordance with 
  5.30  Minnesota Statutes, section 69.80, and as provided for in the 
  5.31  bylaws of the consolidated volunteer firefighters relief 
  5.32  association and approved by the board of trustees of the 
  5.33  consolidated volunteer firefighters relief association. 
  5.34     Sec. 11.  [VALIDATION OF CURRENT BENEFIT PLANS AND PRIOR 
  5.35  ACTIONS.] 
  5.36     Notwithstanding any other law, the benefit plans of the 
  6.1   Norwood volunteer firefighters relief association and the Young 
  6.2   America volunteer firefighters relief association, as reflected 
  6.3   in each association's articles of incorporation and bylaws as of 
  6.4   December 31, 1995, are ratified and validated.  Acts previously 
  6.5   taken by the Norwood volunteer firefighters relief association 
  6.6   and the Young America volunteer firefighters relief association 
  6.7   in association with those ratified by articles of incorporation 
  6.8   are also ratified and validated. 
  6.9      Sec. 12.  [BENEFITS; FUNDING.] 
  6.10     After the effective date of consolidation, the service 
  6.11  pension for a member of the consolidated firefighters relief 
  6.12  association is $550 for each year of past service credited by 
  6.13  either the Norwood volunteer firefighters relief association or 
  6.14  the Young America volunteer firefighters relief association.  
  6.15  Future service credited by the consolidated firefighters relief 
  6.16  association is payable in a lump sum and is to be so provided in 
  6.17  the bylaws of the consolidated volunteer firefighters relief 
  6.18  association.  The service pension may be subsequently changed by 
  6.19  appropriate amendment to the bylaws approved by the board of 
  6.20  trustees and the city council of the city of Norwood-Young 
  6.21  America under Minnesota Statutes, sections 69.772, subdivision 
  6.22  6, and 424A.02, subdivisions 1 and 2.  In its budget and tax 
  6.23  levy for the year 1997, the city of Norwood-Young America must 
  6.24  provide that funds will be transferred to the special fund of 
  6.25  the consolidated volunteer firefighters relief association to 
  6.26  fully fund the actuarial accrued liability of the special fund 
  6.27  as determined under Minnesota Statutes, section 69.772, 
  6.28  subdivisions 2 and 2a.  Subsequent budgets and tax levies must 
  6.29  comply with Minnesota Statutes, section 69.772, subdivisions 3 
  6.30  and 4. 
  6.31     Sec. 13.  [EFFECTIVE DATE.] 
  6.32     Sections 1 to 12 are effective the day following final 
  6.33  enactment.  This chapter is effective without the approval of 
  6.34  the cities of Norwood and Young America, as provided in 
  6.35  Minnesota Statutes, section 645.023, subdivision 1.