1.1 	A bill for an act
1.2 	relating to retirement; voluntary statewide lump sum volunteer firefighter 
1.3 	retirement plan; extending the length of time for municipal action on the election 
1.4 	of transfer to statewide plan coverage; amending Minnesota Statutes 2012, 
1.5 	section 353G.05, subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
1.8 		Subd. 2.Election of coverage. (a) The process for electing coverage of volunteer 
1.9 	firefighters by the retirement plan is initiated by a request to the executive director for a 
1.10 	cost analysis of the prospective retirement coverage.
1.11 	(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief 
1.12 	association governed by chapter 424A, the cost analysis of the prospective retirement 
1.13 	coverage must be requested jointly by the secretary of the volunteer firefighters' relief 
1.14 	association, following approval of the request by the board of the volunteer firefighters' 
1.15 	relief association, and the chief administrative officer of the entity associated with the relief 
1.16 	association, following approval of the request by the governing body of the entity associated 
1.17 	with the relief association. If the relief association is associated with more than one entity, 
1.18 	the chief administrative officer of each associated entity must execute the request. If 
1.19 	the volunteer firefighters are not currently covered by a volunteer firefighters' relief 
1.20 	association, the cost analysis of the prospective retirement coverage must be requested by 
1.21 	the chief administrative officer of the entity operating the fire department. The request 
1.22 	must be made in writing and must be made on a form prescribed by the executive director.
1.23 	(c) The cost analysis of the prospective retirement coverage by the statewide 
1.24 	retirement plan must be based on the service pension amount under section 353G.11
1.25 	closest to the service pension amount provided by the volunteer firefighters' relief 
2.1 	association if the relief association is a lump-sum defined benefit plan, or the amount equal 
2.2 	to 95 percent of the most current average account balance per relief association member if 
2.3 	the relief association is a defined contribution plan, or to the lowest service pension amount 
2.4 	under section 353G.11 if there is no volunteer firefighters' relief association, rounded up, 
2.5 	and any other service pension amount designated by the requester or requesters. The cost 
2.6 	analysis must be prepared using a mathematical procedure certified as accurate by an 
2.7 	approved actuary retained by the Public Employees Retirement Association.
2.8 	(d) If a cost analysis is requested and a volunteer firefighters' relief association exists 
2.9 	that has filed the information required under section 69.051 in a timely fashion, upon 
2.10 	request by the executive director, the state auditor shall provide the most recent data 
2.11 	available on the financial condition of the volunteer firefighters' relief association, the most 
2.12 	recent firefighter demographic data available, and a copy of the current relief association 
2.13 	bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association 
2.14 	exists, the chief administrative officer of the entity operating the fire department shall 
2.15 	provide the demographic information on the volunteer firefighters serving as members 
2.16 	of the fire department requested by the executive director.
2.17 	(e) If a cost analysis is requested, the executive director of the State Board of 
2.18 	Investment shall review the investment portfolio of the relief association, if applicable, 
2.19 	for compliance with the applicable provisions of chapter 11A and for appropriateness 
2.20 	for retention under the established investment objectives and investment policies of the 
2.21 	State Board of Investment. If the prospective retirement coverage change is approved 
2.22 	under paragraph (f), the State Board of Investment may require that the relief association 
2.23 	liquidate any investment security or other asset which the executive director of the State 
2.24 	Board of Investment has determined to be an ineligible or inappropriate investment for 
2.25 	retention by the State Board of Investment. The security or asset liquidation must occur 
2.26 	before the effective date of the transfer of retirement plan coverage. If requested to do so by 
2.27 	the chief administrative officer of the relief association, the executive director of the State 
2.28 	Board of Investment shall provide advice about the best means to conduct the liquidation.
2.29 	(f) Upon receipt of the cost analysis, the governing body of the municipality or 
2.30 	independent nonprofit firefighting corporation associated with the fire department shall 
2.31 	either approve or disapprove the retirement coverage change within ~~90~~120 days. If the 
2.32 	retirement coverage change is not acted upon within ~~90~~120 days, it is deemed to be 
2.33 	disapproved. If the retirement coverage change is approved by the applicable governing 
2.34 	body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan 
2.35 	is effective on the next following January 1.

2.36 	EFFECTIVE DATE. This section is effective July 1, 2013.