SF 2924

as introduced - 88th Legislature (2013 - 2014) Posted on 03/31/2014 08:33am

A bill for an act
relating to retirement; volunteer firefighters relief associations and the cities
of Lino Lakes, Circle Pines, and Centerville; providing for the division of
the Centennial Volunteer Firefighters Relief Association into a residual relief
association and the Lino Lakes Volunteer Firefighters Relief Association.

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

Section 1. new text begin DIVISION OF CENTENNIAL VOLUNTEER FIREFIGHTERS
RELIEF ASSOCIATION AUTHORIZED.
new text end

new text begin Notwithstanding any provision of Minnesota Statutes, chapter 424A, or sections
424B.20 and 424B.21, to the contrary, if the city of Lino Lakes withdraws from the joint
powers agreement establishing the Centennial Fire Department, if the city of Lino Lakes
establishes a city fire department, if a Lino Lakes Volunteer Firefighters Relief Association
is established, and if the Lino Lakes Volunteer Firefighters Relief Association includes
in its membership one or more former members of the Centennial Volunteer Firefighters
Relief Association, then the Centennial Volunteer Firefighters Relief Association shall
transfer a proportional share of the accrued liabilities of the relief association, the service
credit of any transferring firefighters in the relief association, and a proportional share of the
special fund assets and general fund assets of the relief association as provided in section 2.
new text end

Sec. 2. new text begin LIABILITY, SERVICE CREDIT, AND ASSET ALLOCATION
PROCEDURE.
new text end

new text begin (a) The allocation of the accrued liability between the remnant Centennial Volunteer
Firefighters Relief Association and the new Lino Lakes Volunteer Firefighters Relief
Association must utilize the following procedure:
new text end

new text begin (1) the active service credit of all active members of the relief association as of the
end of the month preceding the date on which the last of the conditions set forth in section
1 are met must be determined and expressed in full years for full years completed and as a
percentage of a full year for full months less than a full year;
new text end

new text begin (2) using the results determined under clause (1) and the accrued liability table set
forth in Minnesota Statutes, section 424A.092, subdivision 2, adjusted for the service
pension amount per year of service credit in force as of the calculation date, the total dollar
value of the accrued liability for active members must be determined;
new text end

new text begin (3) the amount of the service pension payable to any former relief association
members who have sufficient service credit to be entitled to receive a service pension
upon attaining age 50, plus any interest on the deferred service pension amount payable
until age 50 under Minnesota Statutes, section 424A.02, subdivision 7, and the relief
association bylaws must be determined;
new text end

new text begin (4) the amounts determined under clauses (2) and (3) must be totaled;
new text end

new text begin (5) a subtotal of the amount determined under clause (2) for those active firefighters
transferring from the Centennial Volunteer Firefighters Relief Association to the Lino
Lakes Volunteer Firefighters Relief Association must be determined;
new text end

new text begin (6) the amount determined under clause (5) must be divided by the amount
determined under clause (4) and the result expressed as a percentage; and
new text end

new text begin (7) the percentage determined under clause (6) must be applied to the next regular
determination of the accrued liability of the Centennial Volunteer Firefighters Relief
Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared after
the effective date of this section, with the resulting accrued liability portion deducted
from the accrued liability of the Centennial Volunteer Firefighters Relief Association and
transferred to the Lino Lakes Volunteer Firefighters Relief Association.
new text end

new text begin (b) The allocation of the special fund assets of the Centennial Volunteer Firefighters
Relief Association between the remnant relief association and the new Lino Lakes
Volunteer Firefighters Relief Association must be determined by applying the percentage
determined under paragraph (a), clause (6), to the market value of the assets of the
Centennial Volunteer Firefighters Relief Association as of the date on which the next
regular determination of the accrued liability of the Centennial Volunteer Firefighters
Relief Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared
after the effective date of this section under paragraph (a), clause (7), the result of which
is the Lino Lakes Volunteer Firefighters Relief Association share and the balance is the
remnant Centennial Volunteer Firefighters Relief Association share. The transfer of legal
and beneficial titles to the special fund assets to be transferred must occur as soon as is
practicable after the asset transfer amount determination date, with legal title to be held
by the Lino Lakes Volunteer Firefighters Relief Association, as a Minnesota nonprofit
corporation, and with beneficial title to be held by the active membership of the Lino
Lakes Volunteer Firefighters Relief Association. The transferred special assets must, to
the extent practicable, replicate the portfolio composition of investment securities based
on the market value of the assets of the last business day on which market values of a
preponderance of the assets are available. If there are any investment securities without a
market value on that date, that asset must continue to be held by the Centennial Volunteer
Firefighters Relief Association in trust for itself and the Lino Lakes Volunteer Firefighters
Relief Association until the asset can be liquidated for the carrying value of the asset on
the first of the month preceding the effective date of this section.
new text end

new text begin (c) The transfer of special fund assets from the Centennial Volunteer Firefighters
Relief Association to the Lino Lakes Volunteer Firefighters Relief Association constitutes
an authorized disbursement from the special fund of the Centennial Volunteer Firefighters
Relief Association for purposes of Minnesota Statutes, section 424A.05, subdivision 3.
new text end

new text begin (d) General fund assets of the Centennial Volunteer Firefighters Relief Association
must be allocated between the remnant Centennial Volunteer Firefighters Relief
Association and the Lino Lakes Volunteer Firefighters Relief Association in the proportions
and in the manner established by the Centennial Volunteer Firefighters Relief Association.
new text end

new text begin (e) The service credit of the active firefighters who transfer to the Lino Lakes
Fire Department as of the date on which the next regular determination of the accrued
liability of the Centennial Volunteer Firefighters Relief Association under Minnesota
Statutes, sections 424A.091 and 424A.092, prepared after the effective date of this section
under paragraph (a), clause (7), transfers to the Lino Lakes Volunteer Firefighters Relief
Association on the date of the accrued liability and asset transfers. Upon the service
credit transfer, the remnant Centennial Volunteer Firefighters Relief Association has no
further liability for service pensions or ancillary benefits with respect to the firefighters
transferring to the Lino Lakes Fire Department.
new text end

new text begin (f) The remnant Centennial Volunteer Firefighters Relief Association and the new
Lino Lakes Volunteer Firefighters Relief Association are jointly, for a period of six years
after the transfer of special fund assets, successors in interest to all claims that the prior
Centennial Volunteer Firefighters Relief Association may have or may assert against any
person and are the successors in interest that could have been against the Centennial
Volunteer Firefighters Relief Association. After six years, the Lino Lakes Volunteer
Firefighters Relief Association is no longer a successor in interest to claims against the
Centennial Volunteer Firefighters Relief Association.
new text end

new text begin (g) The office of the state auditor shall audit the asset transfer under this section,
with the cost of that audit payable by the two relief associations in proportion to their
post-transfer assets.
new text end

Sec. 3. new text begin LINO LAKES VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION
SERVICE CREDIT CONTINUATION.
new text end

new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 424A, to the
contrary, this section governs the service credit, vesting, service pension calculation, and
ancillary benefit calculation of the Lino Lakes Volunteer Firefighters Relief Association if
sections 1 and 2 become effective upon the occurrence of the local approvals in section 4.
new text end

new text begin (b) A firefighter who transfers employment from the Centennial Fire Department to
the Lino Lakes Fire Department upon the creation of the Lino Lakes Fire Department:
new text end

new text begin (1) retains any full and partial years of service credited by the Centennial Volunteer
Firefighters Relief Association as of the date of the employment transfer, which must be
credited to the firefighter by the Lino Lakes Volunteer Firefighters Relief Association;
new text end

new text begin (2) retains any vesting acquired as of the date of employment transfer; and
new text end

new text begin (3) is eligible to have subsequent Lino Lakes Fire Department firefighting service
recognized as a continuation of firefighting service for additional vesting eligibility.
new text end

Sec. 4. new text begin EFFECTIVE DATE; LOCAL APPROVAL.
new text end

new text begin Sections 1 and 2 are effective the day after the latest date on which the governing
bodies and the chief clerical officers of the cities of Centerville, Circle Pines, and Lino
Lakes timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end