HF 340

as introduced - 88th Legislature (2013 - 2014) Posted on 02/04/2013 03:01pm

A bill for an act
relating to retirement; voluntary statewide lump sum volunteer firefighter
retirement plan; extending the length of time for municipal action on the election
of transfer to statewide plan coverage; amending Minnesota Statutes 2012,
section 353G.05, subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:

Subd. 2.

Election of coverage.

(a) The process for electing coverage of volunteer
firefighters by the retirement plan is initiated by a request to the executive director for a
cost analysis of the prospective retirement coverage.

(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
association governed by chapter 424A, the cost analysis of the prospective retirement
coverage must be requested jointly by the secretary of the volunteer firefighters' relief
association, following approval of the request by the board of the volunteer firefighters'
relief association, and the chief administrative officer of the entity associated with the relief
association, following approval of the request by the governing body of the entity associated
with the relief association. If the relief association is associated with more than one entity,
the chief administrative officer of each associated entity must execute the request. If
the volunteer firefighters are not currently covered by a volunteer firefighters' relief
association, the cost analysis of the prospective retirement coverage must be requested by
the chief administrative officer of the entity operating the fire department. The request
must be made in writing and must be made on a form prescribed by the executive director.

(c) The cost analysis of the prospective retirement coverage by the statewide
retirement plan must be based on the service pension amount under section 353G.11
closest to the service pension amount provided by the volunteer firefighters' relief
association if the relief association is a lump-sum defined benefit plan, or the amount equal
to 95 percent of the most current average account balance per relief association member if
the relief association is a defined contribution plan, or to the lowest service pension amount
under section 353G.11 if there is no volunteer firefighters' relief association, rounded up,
and any other service pension amount designated by the requester or requesters. The cost
analysis must be prepared using a mathematical procedure certified as accurate by an
approved actuary retained by the Public Employees Retirement Association.

(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
that has filed the information required under section 69.051 in a timely fashion, upon
request by the executive director, the state auditor shall provide the most recent data
available on the financial condition of the volunteer firefighters' relief association, the most
recent firefighter demographic data available, and a copy of the current relief association
bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
exists, the chief administrative officer of the entity operating the fire department shall
provide the demographic information on the volunteer firefighters serving as members
of the fire department requested by the executive director.

(e) If a cost analysis is requested, the executive director of the State Board of
Investment shall review the investment portfolio of the relief association, if applicable,
for compliance with the applicable provisions of chapter 11A and for appropriateness
for retention under the established investment objectives and investment policies of the
State Board of Investment. If the prospective retirement coverage change is approved
under paragraph (f), the State Board of Investment may require that the relief association
liquidate any investment security or other asset which the executive director of the State
Board of Investment has determined to be an ineligible or inappropriate investment for
retention by the State Board of Investment. The security or asset liquidation must occur
before the effective date of the transfer of retirement plan coverage. If requested to do so by
the chief administrative officer of the relief association, the executive director of the State
Board of Investment shall provide advice about the best means to conduct the liquidation.

(f) Upon receipt of the cost analysis, the governing body of the municipality or
independent nonprofit firefighting corporation associated with the fire department shall
either approve or disapprove the retirement coverage change within deleted text begin 90 deleted text end new text begin 120 new text end days. If the
retirement coverage change is not acted upon within deleted text begin 90 deleted text end new text begin 120 new text end days, it is deemed to be
disapproved. If the retirement coverage change is approved by the applicable governing
body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
is effective on the next following January 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end