SF 2831

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; volunteer firefighter relief associations; increasing the
state supplemental benefit for certain survivors; amending Minnesota Statutes
2004, section 424A.10.

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

Section 1.

Minnesota Statutes 2004, section 424A.10, is amended to read:

424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER
FIREFIGHTERS.

Subdivision 1.

deleted text begin Definition deleted text end new text begin Definitions new text end .

For purposes of this section deleted text begin , deleted text end new text begin : new text end

new text begin (1) new text end "qualified recipient" means an individual who receives a lump sum distribution of
pension or retirement benefits from a firefighters' relief association for service performed
as a volunteer firefighter deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) "survivor of a deceased active volunteer firefighter" means the legally married
spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or minor
children of a deceased volunteer firefighter; and
new text end

new text begin (3) "active volunteer firefighter" means a person who regularly renders fire
suppression service for a municipal fire department or an independent nonprofit firefighting
corporation, who has met the statutory and other requirements for relief association
membership, and who has been a fully qualified member of the relief association for
at least one month.
new text end

Subd. 2.

Payment of supplemental benefit.

new text begin (a) new text end Upon the payment by a firefighters'
relief association of a lump sum distribution to a qualified recipient, the association must
pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
contrary, the relief association may pay the supplemental benefit out of its special fund.
The amount of this benefit equals ten percent of the regular lump sum distribution that
is paid on the basis of service as a volunteer firefighter. In no case may the amount of
the supplemental benefit exceed $1,000.

new text begin (b) Upon the payment by a relief association of a lump sum survivor benefit or
funeral benefit to a survivor of a deceased active volunteer firefighter, the association may
pay a supplemental survivor benefit to the survivor of the deceased volunteer firefighter
from the special fund of the relief association if its articles of incorporation or bylaws so
provide. The amount of the supplemental survivor benefit is 20 percent of the survivor
benefit or funeral benefit, but not to exceed $2,000.
new text end

Subd. 3.

State reimbursement.

new text begin (a) new text end By February 15 of each year, the new text begin treasurer of
the new text end relief association shall apply to the commissioner of revenue for state reimbursement
of the amount of supplemental benefits paid under subdivision 2 during the preceding
calendar year. By March 15 the commissioner shall reimburse the relief association for the
amount of the supplemental benefits paid to qualified recipients.

new text begin (b) new text end The commissioner of revenue shall prescribe the form of and supporting
information that must be supplied as part of the application for state reimbursement.

new text begin (c) new text end The reimbursement payment must be deposited in the special fund of the relief
association.

new text begin (d) new text end A sum sufficient to make the payments is appropriated from the general fund
to the commissioner of revenue.

Subd. 4.

In lieu of income tax exclusion.

new text begin (a) new text end 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 volunteer firefighters.

new text begin (b) new text end If the law is modified to exclude or exempt volunteer firefighters' lump sum
distributions from state income taxation, the supplemental benefits under this section
may no longer be paid 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 Subd. 5. new text end

new text begin Retroactive reimbursement in certain instances. new text end

new text begin A supplemental
survivor or funeral benefit may be paid by a relief association for the death of an active
volunteer firefighter that occurred on or after August 1, 2005, if the relief association
articles of incorporation or bylaws so provide for a supplemental survivor benefit and
for retroactivity.
new text end

new text begin new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end