Minnesota Legislature
SF 809
as introduced - 93rd Legislature (2023 - 2024) Posted on 01/27/2023 09:34am
Current Version - as introduced
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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 beginan individual who is or was new text enda volunteer firefighter
deleted text begin who provides activedeleted text end new text beginproviding new text endservice to a deleted text beginmunicipal fire departmentdeleted text end new text beginmunicipality new text endor an
independent nonprofit firefighting corporation deleted text beginwhere the applicable municipality or
corporationdeleted text end new text beginthat new text endhas elected coverage by the deleted text beginretirementdeleted text end plan under section 353G.05, and
deleted text begin whichdeleted text end new text beginwhose new text endservice is covered by the deleted text beginretirementdeleted 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 begina municipaldeleted text end new text beginthe new text endfire department new text beginof a municipality new text endor new text beginan new text endindependent 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 beginretirementdeleted text end plan is entitled to a deleted text beginservice
pensiondeleted text endnew text begin retirement benefit as defined in subdivision 1anew text end from the deleted text beginretirementdeleted 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 beginfor the service pensiondeleted text end.
(b) deleted text beginAdeleted text endnew 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 beginmeets at least one of the following requirements:deleted text endnew 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 endnew text begin (c) Ifnew text end the member new text beginis a member of the monthly benefit division, the member satisfies
the minimum service requirement if the member new text endhas completed at least the minimum number
of years of service deleted text beginas a member of the retirement plandeleted text end specified in the retirement benefit
plan document deleted text beginattributable to the applicable fire department if the person is a member of
the monthly benefit retirement divisiondeleted text endnew 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 beginVesting schedule; nonforfeitable portion of service pensiondeleted text endnew 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 beginExcept as provided in paragraphs (c) and (d), an activedeleted text end new text beginIf the member is a new text endmember
of the lump-sum deleted text beginretirementdeleted text end division deleted text beginis entitled to a service pensiondeleted text end new text beginand 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 beginnonforfeitabledeleted text end percentage new text beginthat corresponds to the number new text endof deleted text beginthe applicable
service pension amount, taking into accountdeleted text end years of service as a member of the deleted text beginretirementdeleted text end
plan plus new text beginany previous new text endyears of service as a member of deleted text beginthe former affiliateddeleted text end new text begina new text endrelief
association, deleted text beginif any,deleted text end as follows:
| Completed years of service credit |
deleted text beginNonforfeitabledeleted text end new text beginVested new text endpercentage deleted text beginof 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 beginIf 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 endIf deleted text beginan activedeleted text end new text beginthe new text endmember new text beginis a member new text endof the monthly benefit retirement division new text beginand
new text end has completed new text begin20 years of service as a member of the plan, the member is 100 percent
vested. If the member has completed new text endless than 20 years of service deleted text begincreditdeleted text end as a member of the
deleted text begin monthly benefit retirement division of thedeleted text end plan, the deleted text beginperson's entitlement to a service pension
must be governed bydeleted text end new text beginmember's vested percentage is equal to the percentage determined
under new text endthe retirement benefit plan document deleted text beginattributable to the applicable fire departmentdeleted text endnew 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 beginREVISOR 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 beginEFFECTIVE DATE.
new text end
new text begin
Sections 1 to 6 are effective January 1, 2024.
new text end