SF 2918

Conference Committee Report - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:26pm

A bill for an act
relating to retirement; volunteer fire relief associations; making various technical
corrections; revising break-in-service return to firefighting authorizations;
authorizing Minnesota deferred compensation plan service pension transfers;
revising payout defaults in survivor benefits; authorizing corrections of certain
special fund deposits; amending Minnesota Statutes 2008, section 356A.06,
subdivision 8; Minnesota Statutes 2009 Supplement, sections 69.772, subdivision
6; 69.773, subdivision 6; 424A.01, subdivisions 1, 6; 424A.015, by adding a
subdivision; 424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05,
subdivision 3, by adding a subdivision; repealing Minnesota Statutes 2009
Supplement, section 424A.001, subdivision 6; Laws 2009, chapter 169, article
10, section 32.

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

Section 1.

Minnesota Statutes 2009 Supplement, section 69.772, subdivision 6, is
amended to read:

Subd. 6.

Municipal ratification for plan amendments.

If the special fund of the
relief association does not have a surplus over full funding pursuant to subdivision 3,
clause (2), subclause (e), deleted text begin or deleted text end new text begin and new text end if the municipality is required to provide financial support
to the special fund of the relief association pursuant to this section, the adoption of or
any amendment to the articles of incorporation or bylaws of a relief association which
increases or otherwise affects the retirement coverage provided by or the service pensions
or retirement benefits payable from the special fund of any relief association to which this
section applies is not effective until it is ratified by the governing body of the municipality
in which the relief association is located and the officers of a relief association shall not
seek municipal ratification prior to preparing and certifying an estimate of the expected
increase in the accrued liability and annual accruing liability of the relief association
attributable to the amendment. If the special fund of the relief association has a
surplus over full funding pursuant to subdivision 3, clause (2), subclause (e), and if the
municipality is not required to provide financial support to the special fund of the relief
association pursuant to this section, the relief association may adopt or amend its articles
of incorporation or bylaws which increase or otherwise affect the retirement coverage
provided by or the service pensions or retirement benefits payable from the special fund
of the relief association which are effective without municipal ratification so long as this
does not cause the amount of the resulting increase in the accrued liability of the special
fund of the relief association to exceed 90 percent of the amount of the surplus over full
funding reported in the prior year and this does not result in the financial requirements of
the special fund of the relief association exceeding the expected amount of the future fire
state aid to be received by the relief association as determined by the board of trustees
following the preparation of an estimate of the expected increase in the accrued liability
and annual accruing liability of the relief association attributable to the change. If a relief
association adopts or amends its articles of incorporation or bylaws without municipal
ratification pursuant to this subdivision, and, subsequent to the amendment or adoption,
the financial requirements of the special fund of the relief association pursuant to this
section are such so as to require financial support from the municipality, the provision
which was implemented without municipal ratification is no longer effective without
municipal ratification and 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 or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 69.773, subdivision 6, is
amended to read:

Subd. 6.

Municipal ratification for plan amendments.

If the special fund of the
relief association does not have a surplus over full funding pursuant to subdivision 4, deleted text begin or deleted text end
new text begin and new text end if the municipality is required to provide financial support to the special fund of
the relief association pursuant to this section, the adoption of or any amendment to the
articles of incorporation or bylaws of a relief association which increases or otherwise
affects the retirement coverage provided by or the service pensions or retirement benefits
payable from the special fund of any relief association to which this section applies is
not effective until it is ratified by the governing body of the municipality in which the
relief association is located. If the special fund of the relief association has a surplus over
full funding pursuant to subdivision 4, and if the municipality is not required to provide
financial support to the special fund of the relief association pursuant to this section,
the relief association may adopt or amend its articles of incorporation or bylaws which
increase or otherwise affect the retirement coverage provided by or the service pensions
or retirement benefits payable from the special fund of the relief association which are
effective without municipal ratification so long as this does not cause the amount of the
resulting increase in the accrued liability of the special fund of the relief association to
exceed 90 percent of the amount of the surplus over full funding reported in the prior year
and this does not result in the financial requirements of the special fund of the relief
association exceeding the expected amount of the future fire state aid to be received by the
relief association as determined by the board of trustees following the preparation of 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.
If a relief association adopts or amends its articles of incorporation or bylaws without
municipal ratification pursuant to this subdivision, and, subsequent to the amendment or
adoption, the financial requirements of the special fund of the relief association pursuant
to this section are such so as to require financial support from the municipality, the
provision which was implemented without municipal ratification is no longer effective
without municipal ratification and 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 or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2008, section 356A.06, subdivision 8, is amended to read:

Subd. 8.

Minimum liquidity requirements.

A covered pension plan described by
subdivision 6 deleted text begin , paragraph (a) deleted text end new text begin or 7 new text end , in order to pay benefits as they come due, shall invest
a portion of its assets in authorized short-term debt obligations that can be immediately
liquidated without accrual of a substantial determinable penalty or loss and that have an
average maturity of no more than 90 days. The chief administrative officer of the plan
shall determine the minimum liquidity requirement of the plan and shall retain appropriate
documentation of that determination for three years from the date of determination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 1, is
amended to read:

Subdivision 1.

Minors.

deleted text begin (a) No volunteer firefighters' relief association associated
with a municipality or an independent nonprofit firefighting corporation may include as a
relief association member a minor serving as a firefighter, except for members of a youth,
civic, or educational organization or program who participate with uninterrupted adult
supervision, as allowed by federal law and by section 181A.04. Such organizations or
programs include, but are not limited to, Boy Scout Explorer programs or firefighting
degree programs.
deleted text end

deleted text begin (b) deleted text end No volunteer firefighters' relief association associated with a municipality or an
independent nonprofit firefighting corporation may include as a relief association member
a minor serving as a volunteer firefighter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 6, is
amended to read:

Subd. 6.

Return to active firefighting after break in service.

(a) new text begin The requirements
of this section apply to all breaks in service, except breaks in service mandated by federal
or state law.
new text end

new text begin (b)(1) new text end If a deleted text begin former active deleted text end firefighter who has ceased to perform or supervise fire
suppression and fire prevention duties for at least 60 days resumes performing active
firefighting with the fire department associated with the relief association, if the bylaws of
the relief association so permit, the deleted text begin person deleted text end new text begin firefighter new text end may again become an active member
of the relief association. new text begin A firefighter who returns to active service and membership is
subject to the service pension calculation requirements under this section.
new text end

new text begin (2) A firefighter who has been granted an approved leave of absence not exceeding
one year by the fire department or by the relief association is exempt from the minimum
period of resumption service requirement of this section.
new text end

new text begin (3) A person who has a break in service not exceeding one year but has not been
granted an approved leave of absence and who has not received a service pension or
disability benefit may be made exempt from the minimum period of resumption service
requirement of this section by the relief association bylaws.
new text end

new text begin (4) If the bylaws so provide, a firefighter who returns to active relief association
membership under this paragraph may continue to collect a monthly service pension,
notwithstanding the service pension eligibility requirements under chapter 424A.
new text end

deleted text begin (b) deleted text end new text begin (c) If new text end a new text begin former new text end firefighter who new text begin has received a service pension or disability benefit
new text end returns to active relief association membership under paragraph deleted text begin (a) deleted text end new text begin (b), the firefighter new text end may
qualify for the receipt of a service pension from the relief association for the resumption
service period if the firefighter meets deleted text begin a minimum period of resumption service deleted text end deleted text begin specified in
the relief association bylaws deleted text end new text begin the service requirements of section 424A.016, subdivision 3,
or section 424A.02, subdivision 2 new text end .

new text begin (d) If a former firefighter who has not received a service pension or disability benefit
returns to active relief association membership under paragraph (b), the firefighter may
qualify for the receipt of a service pension from the relief association for the resumption
service period if the firefighter meets the minimum period of resumption service specified
in the relief association bylaws and the service requirements of section 424A.016,
subdivision 3, or section 424A.02, subdivision 2.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end A firefighter who returns to active lump-sum relief association membership
and who qualifies for a service pension under paragraph deleted text begin (b) deleted text end new text begin (c) or (d) new text end must have, upon
a subsequent cessation of duties, any service pension for the resumption service period
calculated as a separate benefit. If a lump-sum service pension had been paid to the
firefighter upon the firefighter's previous cessation of duties, a second lump-sum service
pension for the resumption service period must be calculated to apply the service pension
amount in effect on the date of the firefighter's termination of the resumption service for all
years of the resumption service. No firefighter may be paid a service pension twice for the
same period of service. If a lump-sum service pension had not been paid to the firefighter
upon the firefighter's previous cessation of duties and the firefighter meets the minimum
service requirement of section new text begin 424A.016, subdivision 3, or section new text end 424A.02, subdivision
2, a service pension must be calculated to apply the service pension amount in effect on the
date of the firefighter's termination of the resumption service for all years of service credit.

deleted text begin (d) deleted text end new text begin (f) new text end A firefighter who had not been paid a lump-sum service pension returns
to active relief association membership under paragraph deleted text begin (a) deleted text end new text begin (b) new text end , who does not qualify
for a service pension under paragraph deleted text begin (b) deleted text end new text begin (d) new text end , but who does meet the minimum service
requirement of section new text begin 424A.016, subdivision 3, or section new text end 424A.02, subdivision 2,
based on the firefighter's previous years of active service, must have, upon a subsequent
cessation of duties, a service pension calculated for the previous years of service based
on the service pension amount in effect on the date of the firefighter's termination of the
resumption service, or, if the bylaws so provide, based on the service pension amount in
effect on the date of the firefighter's previous cessation of duties.

deleted text begin (e) deleted text end new text begin (g) new text end If a firefighter receiving a monthly benefit service pension returns to active
monthly benefit relief association membership under paragraph deleted text begin (a) deleted text end new text begin (b) new text end , new text begin and if the relief
association bylaws do not allow for the firefighter to continue collecting a monthly service
pension, new text end any monthly benefit service pension payable to the firefighter is suspended as
of the first day of the month next following the date on which the firefighter returns to
active membership. If the firefighter was receiving a monthly benefit service pension,
and qualifies for a service pension under paragraph deleted text begin (b) deleted text end new text begin (c) new text end , the firefighter is entitled to
an additional monthly benefit service pension upon a subsequent cessation of duties
calculated based on the resumption service credit and the service pension accrual amount
in effect on the date of the termination of the resumption service. deleted text begin The deleted text end new text begin A new text end suspended initial
service pension resumes as of the first of the month next following the termination of the
resumption service. If the firefighter was not receiving a monthly benefit service pension
and meets the minimum service requirement of section 424A.02, subdivision 2, a service
pension must be calculated to apply the service pension amount in effect on the date of the
firefighter's termination of the resumption service for all years of service credit.

deleted text begin (f) deleted text end new text begin (h) new text end A firefighter who was not receiving a monthly benefit service pension returns
to active relief association membership under paragraph deleted text begin (a) deleted text end new text begin (b) new text end , who does not qualify
for a service pension under paragraph deleted text begin (b) deleted text end new text begin (d) new text end , but who does meet the minimum service
requirement of section 424A.02, subdivision 2, based on the firefighter's previous years
of active service, must have, upon a subsequent cessation of duties, a service pension
calculated for the previous years of service based on the service pension amount in effect
on the date of the firefighter's termination of the resumption service, or, if the bylaws so
provide, based on the service pension amount in effect on the date of the firefighter's
previous cessation of duties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2009 Supplement, section 424A.015, is amended by adding
a subdivision to read:

new text begin Subd. 5. new text end

new text begin Minnesota deferred compensation plan transfers. new text end

new text begin 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:
new text end

new text begin (1) the governing articles of incorporation or bylaws so provide;
new text end

new text begin (2) the volunteer firefighter participates in the Minnesota deferred compensation
plan at the time of retirement; and
new text end

new text begin (3) the applicable retiring firefighter requests in writing that the relief association
do so.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 4, is
amended to read:

Subd. 4.

Individual accounts.

(a) An individual account must be established for
each firefighter who is a member of the relief association.

(b) To each individual active member account must be credited an equal share of:

(1) any amounts of fire state aid received by the relief association;

(2) any amounts of municipal contributions to the relief association raised from
levies on real estate or from other available municipal revenue sources exclusive of fire
state aid; and

(3) any amounts equal to the share of the assets of the special fund to the credit of:

(i) any former member who terminated active service with the fire department to
which the relief association is associated before meeting the minimum service requirement
provided for in subdivision 2, paragraph (b), and has not returned to active service with
the fire department for a period no shorter than five years; or

(ii) any retired member who retired before obtaining a full nonforfeitable interest in
the amounts credited to the individual member account under subdivision 2, paragraph
(b), and any applicable provision of the bylaws of the relief association. In addition, any
investment return on the assets of the special fund must be credited in proportion to the
share of the assets of the special fund to the credit of each individual active member
account. Administrative expenses of the relief association payable from the special
fund may be deducted from individual accounts in a manner specified in the bylaws of
the relief association.

(c) new text begin If the bylaws so permit and as the bylaws define, the relief association may credit
any investment return on the assets of the special fund to the accounts of inactive members.
new text end

new text begin (d) new text end Amounts to be credited to individual accounts must be allocated uniformly for
all years of active service and allocations must be made for all years of service, except for
caps on service credit if so provided in the bylaws of the relief association. The allocation
method may utilize monthly proration 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.

deleted text begin (d) deleted text end new text begin (e) new text end At the time of retirement under subdivision 2 and any applicable provision
of the bylaws of the relief association, a retiring member is entitled to that portion of the
assets of the special fund to the credit of the member in the individual member account
which is nonforfeitable under subdivision 3 and any applicable provision of the bylaws of
the relief association based on the number of years of service to the credit of the retiring
member.

deleted text begin (e) deleted text end new text begin (f) new text end Annually, the secretary of the relief association shall certify the individual
account allocations to the state auditor at the same time that the annual financial statement
or financial report and audit of the relief association, whichever applies, is due under
section 69.051.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 7, is
amended to read:

Subd. 7.

Limitation on ancillary benefits.

(a) A defined contribution relief
association may only pay an ancillary benefit which would constitute an authorized
disbursement as specified in section 424A.05. The ancillary benefit for active members
must equal the vested deleted text begin or deleted text end new text begin and new text end nonvested amount of the individual account of the member.

(b) For deferred members, the ancillary benefit must equal the vested amount of
the individual account of the member. For the recipient of installment payments of a
service pension, the ancillary benefit must equal the remaining balance in the individual
account of the recipient.

new text begin (c)(1) If a survivor or death benefit is payable under the articles of incorporation or
bylaws, the benefit must be paid:
new text end

new text begin (i) as a survivor benefit to the surviving spouse of the deceased firefighter;
new text end

new text begin (ii) as a survivor benefit to the surviving child or children of the deceased firefighter
if no surviving spouse;
new text end

new text begin (iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving child or children; or
new text end

new text begin (iv) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving child or children and no beneficiary designated.
new text end

new text begin (2) If there is no surviving child or are no surviving children, the surviving spouse
may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.
new text end

new text begin (d) For purposes of this section, for a defined contribution volunteer fire relief
association, a trust created under chapter 501B may be a designated beneficiary. If a
trust payable to the surviving child or children organized under chapter 501B has been
established as authorized by this section and there is no surviving spouse, the survivor
benefit may be paid to the trust, notwithstanding the requirements of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 9, is
amended to read:

Subd. 9.

Limitation on ancillary benefits.

A defined benefit relief association,
including any volunteer firefighters relief association governed by section 69.77 or any
volunteer firefighters division of a relief association governed by chapter 424, may only
pay ancillary benefits which 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 for a lump-sum service pension to a retiring member, 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.

new text begin (3)(i) If a lump sum survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:
new text end

new text begin (A) as a survivor benefit to the surviving spouse of the deceased firefighter;
new text end

new text begin (B) as a survivor benefit to the surviving child or children of the deceased firefighter
if no surviving spouse;
new text end

new text begin (C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving child or children; or
new text end

new text begin (D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving child or children and no beneficiary designated.
new text end

new text begin (ii) If there is no surviving child or are no surviving children, the surviving spouse
may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.
new text end

new text begin (4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:
new text end

new text begin (A) as a survivor benefit to the surviving spouse of the deceased firefighter;
new text end

new text begin (B) as a survivor benefit to the surviving child or children of the deceased firefighter
if no surviving spouse;
new text end

new text begin (C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving child or children; or
new text end

new text begin (D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving child or children and no beneficiary designated.
new text end

new text begin (ii) If there is no surviving child or are no surviving children, the surviving spouse
may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.
new text end

new text begin (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.
new text end

new text begin (5) For purposes of this section, for a monthly benefit volunteer fire relief association
or for a combination lump-sum and monthly benefit volunteer fire 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 volunteer fire relief association or for a combination
lump-sum and monthly benefit volunteer fire 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 501B may be a designated beneficiary. If a trust is payable
to the surviving child or children organized under chapter 501B 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 10,
is amended to read:

Subd. 10.

Local approval of bylaw amendments; filing requirements.

(a) Each
defined benefit relief association to which this section applies must file a revised copy
of its governing bylaws with the state auditor upon the adoption of any amendment to
its governing bylaws by the relief association or upon the approval of any amendment
to its governing bylaws granted by the governing body of each municipality served by
the fire department to which the relief association is directly associated. Failure of the
relief association to file a copy of the bylaws or any bylaw amendments with the state
auditor disqualifies the municipality from the distribution of any future fire state aid until
this filing requirement has been completed.

(b) If the special fund of the relief association does not have a surplus over full
funding under section 69.772, subdivision 3, clause (2), subclause (e), or 69.773,
subdivision 4, and if the municipality is required to provide financial support to the special
fund of the relief association under section 69.772 or 69.773, no bylaw amendment which
would affect the amount of, the manner of payment of, or the conditions for qualification
for service pensions or ancillary benefits or disbursements other than administrative
expenses authorized under section 69.80 payable from the special fund of the relief
association is effective until it has been ratified deleted text begin by the governing body or bodies of the
appropriate municipalities deleted text end new text begin as required under section 69.772, subdivision 6, or 69.773,
subdivision 6 new text end . If new text begin the special fund of the relief association has a surplus over full funding
under section 69.772, subdivision 3, or 69.773, subdivision 4, and if new text end the municipality is
not required to provide financial support to the special fund under this section, the relief
association may adopt or amend without municipal ratification its articles of incorporation
or bylaws which increase or otherwise affect the service pensions or ancillary benefits
payable from the special fund deleted text begin so long as the changes do not cause 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 and the changes do not
result in the financial requirements of the special fund exceeding the expected amount
of the subsequent calendar year's fire state aid to be received by the relief association deleted text end new text begin if
authorized under section 69.772, subdivision 6, or 69.773, subdivision 6 new text end .

(c) If the relief association pays only a lump-sum pension, the financial requirements
are to be determined by the board of trustees following the preparation of an estimate
of the expected increase in the accrued liability and annual accruing liability of the
relief association attributable to the change. If the relief association pays a monthly
benefit service pension, the financial requirements are to be determined by the board of
trustees following either 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. If a relief association adopts or amends its articles
of incorporation or bylaws without municipal ratification under this subdivision, and,
subsequent to the amendment or adoption, the financial requirements of the special fund
under this section are such so as to require financial support from the municipality, the
provision which was implemented without municipal ratification is no longer effective
without municipal ratification, and any service pensions or ancillary benefits payable after
that date must be paid only in accordance with the articles of incorporation or bylaws as
amended or adopted with municipal ratification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2009 Supplement, section 424A.05, subdivision 3, is
amended to read:

Subd. 3.

Authorized disbursements from the special fund.

deleted text begin (a) deleted text end Disbursements
from the special fund may not be made for any purpose other than one of the following:

(1) for the payment of service pensions to retired members of the relief association if
authorized and paid under law and the bylaws governing the relief association;

new text begin (2) for the purchase of an annuity for the applicable person under section 424A.015,
subdivision 3, for the transfer of service pension or benefit amounts to the applicable
person's individual retirement account under section 424A.015, subdivision 4, or to the
applicable person's account in the Minnesota deferred compensation plan under section
424A.015, subdivision 5;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end for the payment of temporary or permanent disability benefits to disabled
members of the relief association if authorized and paid under law and specified in amount
in the bylaws governing the relief association;

deleted text begin (3) deleted text end new text begin (4) new text end for the payment of survivor benefits deleted text begin to surviving spouses and surviving
children, or if none, to designated beneficiaries, of deceased members of the relief
association, and if no survivors and if no designated beneficiary, deleted text end new text begin or new text end for the payment of a
death benefit to the estate of the deceased active or deferred firefighter, if authorized deleted text begin by deleted text end
and paid under law and specified in amount in the bylaws governing the relief association;

deleted text begin (4) deleted text end new text begin (5) new text end for the payment of the fees, dues and assessments to the Minnesota State
Fire Department Association and to the Minnesota Area Relief Association Coalition in
order to entitle relief association members to membership in and the benefits of these
associations or organizations;

deleted text begin (5) deleted text end new text begin (6) new text end for the payment of insurance premiums to the state Volunteer Firefighters
Benefit Association, or an insurance company licensed by the state of Minnesota offering
casualty insurance, in order to entitle relief association members to membership in and the
benefits of the association or organization; and

deleted text begin (6) deleted text end new text begin (7) new text end for the payment of administrative expenses of the relief association as
authorized under section 69.80.

deleted text begin (b) For purposes of this chapter, for a monthly benefit volunteer fire relief association
or for a combination lump-sum and monthly benefit volunteer fire 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 chapter, for a defined contribution volunteer fire relief association, for a lump-sum
volunteer fire relief association, or for a combination lump-sum and monthly benefit
volunteer fire 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 designated beneficiary
may be a trust created under chapter 501B.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2009 Supplement, section 424A.05, is amended by adding
a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Corrections of erroneous special fund deposits. new text end

new text begin Upon notification
of funds deposited in error in the special fund and after presentation of evidence that
the error occurred in good faith, the state auditor may require the relief association to
provide a written legal opinion concluding that the transfer of funds from the special
fund is consistent with federal and state law. Taking into consideration the evidence of
good faith presented and the legal opinion, if any, provided, the state auditor may order
the transfer from the special fund to the appropriate fund or account an amount equal
to the funds deposited in error.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2009 Supplement, section 424A.001, subdivision 6, new text end new text begin is
repealed.
new text end

new text begin (b) new text end new text begin Laws 2009, chapter 169, article 10, section 32, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is effective the day following
final enactment. Paragraph (b) of this section is effective retroactively from July 1, 2009.
new text end