Minnesota Legislature
SF 809
as introduced - 93rd Legislature (2023 - 2024) Posted on 06/20/2023 11:49am
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A bill for an act
relating to retirement; Public Employees Retirement Association statewide volunteer
firefighter plan; modifying service counted in determining vesting in a retirement
benefit; amending Minnesota Statutes 2022, sections 353G.01, subdivisions 8, 15;
353G.09, subdivisions 1, 2, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 353G.01, subdivision 8, is amended to read:
Subd. 8.
Member.
"Member" means new text begin an individual who is or was new text end a volunteer firefighter
deleted text begin who provides activedeleted text end new text begin providing new text end service to a deleted text begin municipal fire departmentdeleted text end new text begin municipality new text end or an
independent nonprofit firefighting corporation deleted text begin where the applicable municipality or
corporationdeleted text end new text begin that new text end has elected coverage by the deleted text begin retirementdeleted text end plan under section 353G.05, and
deleted text begin whichdeleted text end new text begin whose new text end service is covered by the deleted text begin retirementdeleted text end plan.
Sec. 2.
Minnesota Statutes 2022, section 353G.01, subdivision 15, is amended to read:
Subd. 15.
Volunteer firefighter.
"Volunteer firefighter" means a person who is an active
member of deleted text begin a municipaldeleted text end new text begin the new text end fire department new text begin of a municipality new text end or new text begin an new text end independent nonprofit
firefighting corporation and who, in that capacity, engages in fire suppression activities,
provides emergency response services, or delivers fire education or prevention services on
an on-call basis.
Sec. 3.
Minnesota Statutes 2022, section 353G.09, subdivision 1, is amended to read:
Subdivision 1.
Entitlement.
(a) A member of the deleted text begin retirementdeleted text end plan is entitled to a deleted text begin service
pensiondeleted text end new text begin retirement benefit as defined in subdivision 1anew text end from the deleted text begin retirementdeleted text end plan if the
member:
(1) has separated from active service with the fire department for at least 30 days;
(2) has attained the age of at least 50 years;
(3) has satisfied the minimum service requirement in paragraph (b)new text begin or (c), as applicablenew text end ;
and
(4) applies in a manner prescribed by the executive director deleted text begin for the service pensiondeleted text end .
(b) deleted text begin Adeleted text end new text begin If the member is a member of the lump-sum division, thenew text end member satisfies the
minimum service requirement if the member deleted text begin meets at least one of the following requirements:deleted text end new text begin
is at least 40 percent vested as determined under subdivision 2.
new text end
deleted text begin
(1) the member is at least 40 percent vested based on years of service as a member of
the retirement plan;
deleted text end
deleted text begin
(2) the member is at least 40 percent vested based on years of service with the fire
department and the total number of years of service as a member of the former affiliated
relief association plus years of service as a member of the retirement plan is at least five;
or
deleted text end
deleted text begin (3)deleted text end new text begin (c) Ifnew text end the member new text begin is a member of the monthly benefit division, the member satisfies
the minimum service requirement if the member new text end has completed at least the minimum number
of years of service deleted text begin as a member of the retirement plandeleted text end specified in the retirement benefit
plan document deleted text begin attributable to the applicable fire department if the person is a member of
the monthly benefit retirement divisiondeleted text end new text begin applicable to the membernew text end .
Sec. 4.
Minnesota Statutes 2022, section 353G.09, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Retirement benefit. new text end
new text begin
(a) The retirement benefit of a member of the lump-sum
division is equal to the number of years of service credit certified under section 353G.07
for the member, multiplied by the service pension level applicable to the member under
section 353G.11, multiplied by the member's vested percentage under subdivision 2.
new text end
new text begin
(b) The retirement benefit of a member of the monthly benefit division is equal to the
number of years of service credit certified under section 353G.07 for the member, multiplied
by the service pension level applicable to the member under section 353G.112, multiplied
by the member's vested percentage under subdivision 2.
new text end
Sec. 5.
Minnesota Statutes 2022, section 353G.09, subdivision 2, is amended to read:
Subd. 2.
deleted text begin Vesting schedule; nonforfeitable portion of service pensiondeleted text end new text begin Vested
percentagenew text end .
new text begin
A member of the plan has a nonforfeitable right to a retirement benefit, up to
the percent vested. The member's vested percentage is determined under paragraph (a), (b),
or (c), as applicable.
new text end
(a) deleted text begin Except as provided in paragraphs (c) and (d), an activedeleted text end new text begin If the member is a new text end member
of the lump-sum deleted text begin retirementdeleted text end division deleted text begin is entitled to a service pensiondeleted text end new text begin and employed in a fire
department that joined the plan before January 1, 2023, the member's vested percentage is
new text end equal to the deleted text begin nonforfeitabledeleted text end percentage new text begin that corresponds to the number new text end of deleted text begin the applicable
service pension amount, taking into accountdeleted text end years of service as a member of the deleted text begin retirementdeleted text end
plan plus new text begin any previous new text end years of service as a member of deleted text begin the former affiliateddeleted text end new text begin a new text end relief
association, deleted text begin if any,deleted text end as follows:
| Completed years of service credit |
deleted text begin Nonforfeitabledeleted text end new text begin Vested new text end percentage deleted text begin of the service pension deleted text end |
|
| less than 5 |
0 percent |
|
| 5 |
40 percent |
|
| 6 |
44 percent |
|
| 7 |
48 percent |
|
| 8 |
52 percent |
|
| 9 |
56 percent |
|
| 10 |
60 percent |
|
| 11 |
64 percent |
|
| 12 |
68 percent |
|
| 13 |
72 percent |
|
| 14 |
76 percent |
|
| 15 |
80 percent |
|
| 16 |
84 percent |
|
| 17 |
88 percent |
|
| 18 |
92 percent |
|
| 19 |
96 percent |
(b) new text begin If the member is a member of the lump-sum division and employed in a fire
department that joined the retirement plan on or after January 1, 2023, the member's vested
percentage is equal to the percentage determined by applying the vesting schedule selected
in the request for coverage under section 353G.05, subdivision 1a, taking into account years
of service as a member of the plan plus any previous years of service as a member of a relief
association.
new text end
new text begin (c) new text end If deleted text begin an activedeleted text end new text begin the new text end member new text begin is a member new text end of the monthly benefit retirement division new text begin and
new text end has completed new text begin 20 years of service as a member of the plan, the member is 100 percent
vested. If the member has completed new text end less than 20 years of service deleted text begin creditdeleted text end as a member of the
deleted text begin monthly benefit retirement division of thedeleted text end plan, the deleted text begin person's entitlement to a service pension
must be governed bydeleted text end new text begin member's vested percentage is equal to the percentage determined
under new text end the retirement benefit plan document deleted text begin attributable to the applicable fire departmentdeleted text end new text begin
applicable to the membernew text end .
deleted text begin
(c) A person described in paragraph (d) is entitled to the vested portion of the service
pension as determined by applying the vesting schedule selected in the request for coverage
under section 353G.05, subdivision 1a, taking into account years of service as a member
of the retirement plan plus years of service as a member of the former affiliated relief
association, if any.
deleted text end
deleted text begin
(d) A person is described in this paragraph if the person becomes a member of the
lump-sum retirement division in connection with the transfer of coverage from a relief
association to the retirement plan on or after January 1, 2023, or in connection with a
municipality or independent nonprofit firefighting corporation joining the retirement plan
on or after January 1, 2023.
deleted text end
Sec. 6. new text begin REVISOR INSTRUCTION.
new text end
new text begin
In Minnesota Statutes, chapter 353G, the revisor of statutes shall change the terms in
column A to the terms in column B wherever the terms appear.
new text end
|
new text begin
Column A new text end |
new text begin
Column B new text end |
|
|
new text begin
lump-sum retirement division new text end |
new text begin
lump-sum division new text end |
|
|
new text begin
monthly benefit retirement division new text end |
new text begin
monthly benefit division new text end |
|
|
new text begin
retirement plan new text end |
new text begin
plan new text end |
Sec. 7. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 6 are effective January 1, 2024.
new text end