SF 3325

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; volunteer firefighter relief associations; allowing for an
increase in the maximum service pension amounts; amending Minnesota Statutes
2006, section 424A.02, subdivision 3.

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

Section 1.

Minnesota Statutes 2006, section 424A.02, subdivision 3, is amended to
read:

Subd. 3.

Flexible service pension maximums.

(a) Annually on or before August
1 as part of the certification of the financial requirements and minimum municipal
obligation determined under section 69.772, subdivision 4, or 69.773, subdivision 5, as
applicable, the secretary or some other official of the relief association designated in
the bylaws of each relief association shall calculate and certify to the governing body
of the applicable qualified municipality the average amount of available financing per
active covered firefighter for the most recent three-year period. The amount of available
financing shall include any amounts of fire state aid received or receivable by the relief
association, any amounts of municipal contributions to the relief association raised from
levies on real estate or from other available revenue sources exclusive of fire state aid,
and one-tenth of the amount of assets in excess of the accrued liabilities of the relief
association calculated under section 69.772, subdivision 2; 69.773, subdivisions 2 and 4;
or 69.774, subdivision 2, if any.

(b) The maximum service pension which the relief association has authority to
provide for in its bylaws for payment to a member retiring after the calculation date when
the minimum age and service requirements specified in subdivision 1 are met must be
determined using the table in paragraph (c) or (d), whichever applies.

(c) For a relief association where the governing bylaws provide for a monthly
service pension to a retiring member, the maximum monthly service pension amount
per month for each year of service credited that may be provided for in the bylaws is
the greater of the service pension amount provided for in the bylaws on the date of the
calculation of the average amount of the available financing per active covered firefighter
or the maximum service pension figure corresponding to the average amount of available
financing per active covered firefighter:

Minimum Average Amount of Available Financing per Firefighter		Maximum Service Pension Amount Payable per Month for Each Year of Service
$ ...		$ .25
41		.50
81		1.00
122		1.50
162		2.00
203		2.50
243		3.00
284		3.50
324		4.00
365		4.50
405		5.00
486		6.00
567		7.00
648		8.00
729		9.00
810		10.00
891		11.00
972		12.00
1053		13.00
1134		14.00
1215		15.00
1296		16.00
1377		17.00
1458		18.00
1539		19.00
1620		20.00
1701		21.00
1782		22.00
1823		22.50
1863		23.00
1944		24.00
2025		25.00
2106		26.00
2187		27.00
2268		28.00
2349		29.00
2430		30.00
2511		31.00
2592		32.00
2673		33.00
2754		34.00
2834		35.00
2916		36.00
2997		37.00
3078		38.00
3159		39.00
3240		40.00
3321		41.00
3402		42.00
3483		43.00
3564		44.00
3645		45.00
3726		46.00
3807		47.00
3888		48.00
3969		49.00
4050		50.00
4131		51.00
4212		52.00
4293		53.00
4374		54.00
4455		55.00
4536		56.00
new text begin 4617 new text end		new text begin 57.00 new text end
new text begin 4698 new text end		new text begin 58.00 new text end
new text begin 4779 new text end		new text begin 59.00 new text end
new text begin 4860 new text end		new text begin 60.00 new text end
new text begin 4941 new text end		new text begin 61.00 new text end
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new text begin 5103 new text end		new text begin 63.00 new text end
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new text begin 5265 new text end		new text begin 65.00 new text end
new text begin 5346 new text end		new text begin 66.00 new text end
new text begin 5427 new text end		new text begin 67.00 new text end
new text begin 5508 new text end		new text begin 68.00 new text end
new text begin 5589 new text end		new text begin 69.00 new text end
new text begin 5670 new text end		new text begin 70.00 new text end
new text begin 5751 new text end		new text begin 71.00 new text end
new text begin 5832 new text end		new text begin 72.00 new text end
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new text begin 5994 new text end		new text begin 74.00 new text end
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new text begin 7695 new text end		new text begin 95.00 new text end
new text begin 7776 new text end		new text begin 96.00 new text end
new text begin 7857 new text end		new text begin 97.00 new text end
new text begin 7938 new text end		new text begin 98.00 new text end
new text begin 8019 new text end		new text begin 99.00 new text end
new text begin 8100 new text end		new text begin 100.00 new text end

(d) For a relief association in which the governing bylaws provide for a lump sum
service pension to a retiring member, the maximum lump sum service pension amount for
each year of service credited that may be provided for in the bylaws is the greater of the
service pension amount provided for in the bylaws on the date of the calculation of the
average amount of the available financing per active covered firefighter or the maximum
service pension figure corresponding to the average amount of available financing per
active covered firefighter for the applicable specified period:

Minimum Average Amount of Available Financing per Firefighter		Maximum Lump Sum Service Pension Amount Payable for Each Year of Service
$ ...		$ 10
11		20
16		30
23		40
27		50
32		60
43		80
54		100
65		120
77		140
86		160
97		180
108		200
131		240
151		280
173		320
194		360
216		400
239		440
259		480
281		520
302		560
324		600
347		640
367		680
389		720
410		760
432		800
486		900
540		1000
594		1100
648		1200
702		1300
756		1400
810		1500
864		1600
918		1700
972		1800
1026		1900
1080		2000
1134		2100
1188		2200
1242		2300
1296		2400
1350		2500
1404		2600
1458		2700
1512		2800
1566		2900
1620		3000
1672		3100
1726		3200
1753		3250
1780		3300
1820		3375
1834		3400
1888		3500
1942		3600
1996		3700
2023		3750
2050		3800
2104		3900
2158		4000
2212		4100
2265		4200
2319		4300
2373		4400
2427		4500
2481		4600
2535		4700
2589		4800
2643		4900
2697		5000
2751		5100
2805		5200
2859		5300
2913		5400
2967		5500
3021		5600
3075		5700
3129		5800
3183		5900
3237		6000
3291		6100
3345		6200
3399		6300
3453		6400
3507		6500
3561		6600
3615		6700
3669		6800
3723		6900
3777		7000
3831		7100
3885		7200
3939		7300
3993		7400
4047		7500
new text begin 4101 new text end		new text begin 7600 new text end
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new text begin 4263 new text end		new text begin 7900 new text end
new text begin 4317 new text end		new text begin 8000 new text end
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new text begin 5397 new text end		new text begin 10,000 new text end

(e) For a relief association in which the governing bylaws provide for a monthly
benefit service pension as an alternative form of service pension payment to a lump sum
service pension, the maximum service pension amount for each pension payment type
must be determined using the applicable table contained in this subdivision.

(f) If a relief association establishes a service pension in compliance with the
applicable maximum contained in paragraph (c) or (d) and the minimum average amount
of available financing per active covered firefighter is subsequently reduced because of a
reduction in fire state aid or because of an increase in the number of active firefighters, the
relief association may continue to provide the prior service pension amount specified in
its bylaws, but may not increase the service pension amount until the minimum average
amount of available financing per firefighter under the table in paragraph (c) or (d),
whichever applies, permits.

(g) No relief association is authorized to provide a service pension in an amount
greater than the largest applicable flexible service pension maximum amount even if
the amount of available financing per firefighter is greater than the financing amount
associated with the largest applicable flexible service pension maximum.

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

new text begin Section 1 is effective January 1, 2009.
new text end