SF 4424

as introduced - 91st Legislature (2019 - 2020) Posted on 10/06/2020 11:25am

A bill for an act
relating to retirement; volunteer firefighter relief associations and the cities of
Ramsey and Nowthen; providing for the division of the Ramsey Volunteer
Firefighters' Relief Association and the transfer of accounts to a relief association
affiliated with the city of Nowthen.

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

Section 1. new text begin DIVISION OF RAMSEY VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
section have the meanings given them.
new text end

new text begin (b) "Account balance" means the account established for a member under the Ramsey
relief association, to which an allocation of fire state aid, contributions, forfeitures, and net
investment earnings have been credited for every year the member was eligible to receive
such funding under the bylaws of the Ramsey relief association.
new text end

new text begin (c) "Inactive or deferred Nowthen firefighter" means a firefighter who, when the
firefighter was an active firefighter, was assigned to the Nowthen fire department and whose
account in the Ramsey relief association has not yet been distributed or forfeited as provided
under the bylaws of the Ramsey relief association.
new text end

new text begin (d) "Joint powers agreement" means the city of Ramsey and city of Nowthen joint powers
fire protection agreement.
new text end

new text begin (e) "Nowthen firefighter" means a firefighter who is a member of the Ramsey relief
association and who is hired to provide firefighting services to the city of Nowthen by the
city of Nowthen or a municipality with which the city of Nowthen enters into a joint powers
agreement or an independent nonprofit firefighting corporation that provides firefighting
services to the city of Nowthen.
new text end

new text begin (f) "Nowthen relief association" means a volunteer firefighters relief association to be
established by the city of Nowthen or a volunteer firefighters relief association affiliated
with a municipality with which the city of Nowthen enters into a joint powers agreement
or a volunteer firefighters relief association affiliated with an independent nonprofit
firefighting corporation that provides firefighting services to the city of Nowthen.
new text end

new text begin (g) "Other benefit recipient of a Nowthen firefighter" means a person who is entitled to
receive all or a portion of a Nowthen firefighter's account under the Ramsey relief association
due to the person having one of the following relationships to the Nowthen firefighter:
new text end

new text begin (1) surviving spouse;
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new text begin (2) former spouse who is the alternate payee under a state domestic relations order that
meets the requirements of section 414(p) of the federal Internal Revenue Code of 1986, as
amended, or who is a recipient of a court-ordered distribution of marital property, as provided
in Minnesota Statutes, section 518.58;
new text end

new text begin (3) nonspousal beneficiary; or
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new text begin (4) the estate of the Nowthen firefighter.
new text end

new text begin (h) "Ramsey relief association" means the city of Ramsey Volunteer Firefighters' Relief
Association.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies, notwithstanding any provision of Minnesota
Statutes, chapter 424A or 424B, if all of the following occurs:
new text end

new text begin (1) the joint powers agreement expires or is terminated by either party;
new text end

new text begin (2) the city of Nowthen establishes a fire department or enters into a joint powers
agreement with another municipality to provide firefighting services for the city of Nowthen;
new text end

new text begin (3) either the city of Nowthen establishes a volunteer firefighters relief association or
the municipality with which the city of Nowthen enters into a joint powers agreement has
a volunteer firefighters relief association; and
new text end

new text begin (4) the Nowthen relief association includes as members one or more firefighters whose
employment with the city of Ramsey terminates on or before December 31, 2021, and who
are hired as firefighters by: (i) the city of Nowthen; (ii) a municipality with which the city
of Nowthen enters into a joint powers agreement; or (iii) an independent nonprofit firefighting
corporation that provides firefighting services to the city of Nowthen.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of Nowthen firefighter accounts. new text end

new text begin (a) If the provisions in subdivision
2, clauses (1) to (4), occur, the Ramsey relief association shall transfer to the Nowthen relief
association the account balance for each Nowthen firefighter, each inactive or deferred
Nowthen firefighter, or other benefit recipient of a Nowthen firefighter.
new text end

new text begin (b) The Ramsey relief association shall determine, in accordance with the bylaws of the
Ramsey relief association, the account balance for each firefighter whose account is to be
transferred under paragraph (a) as of the most recent calendar year end or any later date
preceding the date of transfer on which net investment earnings are determined and credited
to accounts.
new text end

new text begin (c) The transfer of account balances shall occur no later than 30 days after the date on
which the firefighter is hired by the city of Nowthen or the municipality with which the city
of Nowthen enters into a joint powers agreement or the date on which the firefighter becomes
a member of the Nowthen relief association, if later.
new text end

new text begin (d) The transfer of account balances under this subdivision shall be considered authorized
disbursements from the special fund of the Ramsey relief association for purposes of
Minnesota Statutes, section 424A.05, subdivision 3.
new text end

new text begin (e) The Ramsey relief association shall transfer records to the Nowthen relief association
regarding service, vesting service, and account activity for each firefighter whose account
balance is transferred.
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new text begin Subd. 4. new text end

new text begin Relief association general fund assets. new text end

new text begin The Ramsey relief association shall
transfer a proportionate share of the assets in the general fund of the Ramsey relief association
to the general fund of the Nowthen relief association. The proportion shall be equal to the
ratio that the total value of the account balances transferred to the Nowthen relief association
bears to the total value of all account balances in the Ramsey relief association on the day
immediately preceding the date of transfer.
new text end

new text begin Subd. 5. new text end

new text begin Fire state aid. new text end

new text begin The city of Ramsey shall transfer to the city of Nowthen a portion
of the 2021 fire state aid received by the city of Ramsey on or about October 1, 2021, based
on 2020 property value and population. The portion to be transferred shall be equal to the
amount determined by the commissioner of revenue to be attributable to the estimated
market value of property and population in the city of Nowthen fire service area, as a
percentage of the total fire state aid paid to the city of Ramsey on or about October 1, 2021.
new text end

new text begin Subd. 6. new text end

new text begin Service credit under the Nowthen relief association. new text end

new text begin The Nowthen relief
association shall credit each firefighter whose account balance is transferred from the Ramsey
relief association to the Nowthen relief association with the same number of years of service
credit the firefighter had been credited with under the Ramsey relief association for vesting
and any other purpose for which service credit is granted. Such service credit shall be applied
to retain the firefighter's vesting percentage in the account balance that was transferred and
shall be applied toward the firefighter's vesting percentage in all new funds allocated to the
firefighter's account in the Nowthen relief association.
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