2004 Minnesota Statutes

     424A.02 Volunteer firefighters; service pensions. 

    Subdivision 1.    Authorization.  (a) A relief 
 association, when its articles of incorporation or bylaws so 
 provide, may pay out of the assets of its special fund a service 
 pension to each of its members who:  (1) separates from active 
 service with the fire department; (2) reaches age 50; (3) 
 completes at least five years of active service as an active 
 member of the municipal fire department to which the relief 
 association is associated; (4) completes at least five years of 
 active membership with the relief association before separation 
 from active service; and (5) complies with any additional 
 conditions as to age, service, and membership that are 
 prescribed by the bylaws of the relief association.  A service 
 pension computed under this section may be prorated monthly for 
 fractional years of service, if the bylaws or articles of 
 incorporation of the relief association so provide.  The service 
 pension may be paid whether or not the municipality or nonprofit 
 firefighting corporation to which the relief association is 
 associated qualifies for fire state aid under chapter 69.  

    (b) In the case of a member who has completed at least five 
 years of active service as an active member of the fire 
 department to which the relief association is associated on the 
 date that the relief association is established and 
 incorporated, the requirement that the member complete at least 
 five years of active membership with the relief association 
 before separation from active service may be waived by the board 
 of trustees of the relief association if the member completes at 
 least five years of inactive membership with the relief 
 association before the payment of the service pension.  During 
 the period of inactive membership, the member is not entitled to 
 receive disability benefit coverage, is not entitled to receive 
 additional service credit towards computation of a service 
 pension, and is considered to have the status of a person 
 entitled to a deferred service pension under subdivision 7. 

    (c) No municipality or nonprofit firefighting corporation 
 may delegate the power to take final action in setting a service 
 pension or ancillary benefit amount or level to the board of 
 trustees of the relief association or to approve in advance a 
 service pension or ancillary benefit amount or level equal to 
 the maximum amount or level that this chapter would allow rather 
 than a specific dollar amount or level.  

    (d) No relief association as defined in section 424A.001, 
 subdivision 4, may pay a service pension or disability benefit 
 to a former member of the relief association if that person has 
 not separated from active service with the fire department to 
 which the relief association is directly associated, unless: 

    (1) the person is employed subsequent to retirement by the 
 municipality or the independent nonprofit firefighting 
 corporation, whichever applies, to perform duties within the 
 municipal fire department or corporation on a full-time basis; 

    (2) the governing body of the municipality or of the 
 corporation has filed its determination with the board of 
 trustees of the relief association that the person's experience 
 with and service to the fire department in that person's 
 full-time capacity would be difficult to replace; and 

    (3) the bylaws of the relief association were amended to 
 provide for the payment of a service pension or disability 
 benefit for such full-time employees. 

    Subd. 2.    Nonforfeitable portion of service pension.  
 If the articles of incorporation or bylaws of a relief 
 association so provide, a relief association may pay a reduced 
 service pension to a retiring member who has completed fewer 
 than 20 years of service.  The reduced service pension may be 
 paid when the retiring member meets the minimum age and service 
 requirements of subdivision 1.  

    The amount of the reduced service pension may not exceed 
 the amount calculated by multiplying the service pension 
 appropriate for the completed years of service as specified in 
 the bylaws times the applicable nonforfeitable percentage of 
 pension.  

    For a volunteer firefighter relief association that pays a 
 lump-sum service pension, a monthly benefit service pension, or 
 a lump-sum service pension or a monthly benefit service pension 
 as alternative benefit forms, the nonforfeitable percentage of 
 pension amounts are as follows: 

   Completed Years of Service   Nonforfeitable Percentage
                                    of Pension Amount
              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 
             20 and thereafter          100 percent 

    For a volunteer firefighter relief association that pays a 
 defined contribution service pension, the nonforfeitable 
 percentage of pension amounts are as follows:  

   Completed Years of Service   Nonforfeitable Percentage
                                    of Pension Amount
              5                          40 percent 
              6                          52 percent 
              7                          64 percent 
              8                          76 percent 
              9                          88 percent 
             10 and thereafter          100 percent 

    Subd. 3.    Flexible service pension maximums.  (a) 
 Annually on or before August 1 as part of the certification of 
 the financial requirements and minimum municipal obligation 
 determined under section 69.772, subdivision 4, or 69.773, 
 subdivision 5, as applicable, the secretary or some other 
 official of the relief association designated in the bylaws of 
 each relief association shall calculate and certify to the 
 governing body of the applicable qualified municipality the 
 average amount of available financing per active covered 
 firefighter for the most recent three-year period.  The amount 
 of available financing shall include any amounts of fire state 
 aid received or receivable by the relief association, any 
 amounts of municipal contributions to the relief association 
 raised from levies on real estate or from other available 
 revenue sources exclusive of fire state aid, and one-tenth of 
 the amount of assets in excess of the accrued liabilities of the 
 relief association calculated under section 69.772, subdivision 
 2; 69.773, subdivisions 2 and 4; or 69.774, subdivision 2, if 
 any.  

    (b) The maximum service pension which the relief 
 association has authority to provide for in its bylaws for 
 payment to a member retiring after the calculation date when the 
 minimum age and service requirements specified in subdivision 1 
 are met must be determined using the table in paragraph (c) or 
 (d), whichever applies. 

    (c) For a relief association where the governing bylaws 
 provide for a monthly service pension to a retiring member, the 
 maximum monthly service pension amount per month for each year 
 of service credited that may be provided for in the bylaws is 
 the maximum service pension figure corresponding to the average 
 amount of available financing per active covered firefighter: 

   Minimum Average Amount of      Maximum Service Pension
   Available Financing per        Amount Payable per Month
        Firefighter               for Each Year of Service

          $...                             $ .25
            42                               .50
            84                              1.00
           126                              1.50
           168                              2.00
           209                              2.50
           252                              3.00
           294                              3.50
           335                              4.00
           378                              4.50
           420                              5.00
           503                              6.00
           587                              7.00
           672                              8.00
           755                              9.00
           839                             10.00
           923                             11.00
          1007                             12.00
          1090                             13.00
          1175                             14.00
          1259                             15.00
          1342                             16.00
          1427                             17.00
          1510                             18.00
          1594                             19.00
          1677                             20.00
          1762                             21.00
          1845                             22.00
          1888                             22.50
          1929                             23.00
          2014                             24.00
          2098                             25.00
          2183                             26.00
          2267                             27.00
          2351                             28.00
          2436                             29.00
          2520                             30.00
          2604                             31.00
          2689                             32.00
          2773                             33.00
          2857                             34.00
          2942                             35.00
          3026                             36.00
          3110                             37.00
          3194                             38.00
          3278                             39.00
          3362                             40.00
          3446                             41.00
          3530                             42.00
          3614                             43.00
          3698                             44.00
          3782                             45.00
          3866                             46.00
          3950                             47.00
          4034                             48.00
          4118                             49.00
          4202                             50.00
          4286                             51.00
          4370                             52.00

    Effective beginning December 31, 2003: 

          4454                             53.00
          4538                             54.00
          4622                             55.00
          4706                             56.00

    (d) For a relief association in which the governing bylaws 
 provide for a lump sum service pension to a retiring member, the 
 maximum lump sum service pension amount for each year of service 
 credited that may be provided for in the bylaws is the maximum 
 service pension figure corresponding to the average amount of 
 available financing per active covered firefighter for the 
 applicable specified period: 

  Minimum Average Amount         Maximum Lump Sum Service
  of Available Financing         Pension Amount Payable
     per Firefighter             for Each Year of Service

         $..                              $10
          11                               20
          16                               30
          23                               40
          27                               50
          32                               60
          43                               80
          54                              100
          65                              120
          77                              140
          86                              160
          97                              180
         108                              200
         131                              240
         151                              280
         173                              320
         194                              360
         216                              400
         239                              440
         259                              480
         281                              520
         302                              560
         324                              600
         347                              640
         367                              680
         389                              720
         410                              760
         432                              800
         486                              900
         540                             1000
         594                             1100
         648                             1200
         702                             1300
         756                             1400
         810                             1500
         864                             1600
         918                             1700
         972                             1800
        1026                             1900
        1080                             2000
        1134                             2100
        1188                             2200
        1242                             2300
        1296                             2400
        1350                             2500
        1404                             2600
        1458                             2700
        1512                             2800
        1566                             2900
        1620                             3000
        1672                             3100
        1726                             3200
        1753                             3250
        1780                             3300
        1820                             3375

        1834                             3400
        1888                             3500

        1942                             3600
        1996                             3700
        2023                             3750

        2050                             3800
        2104                             3900
        2158                             4000

        2212                             4100
        2265                             4200
        2319                             4300
        2373                             4400
        2427                             4500
        2481                             4600
        2535                             4700
        2589                             4800
        2643                             4900
        2697                             5000
        2751                             5100
        2805                             5200
        2859                             5300
        2913                             5400
        2967                             5500

        3021                             5600

        3075                             5700

        3129                             5800

        3183                             5900

        3237                             6000

        3291                             6100

        3345                             6200

        3399                             6300

        3453                             6400

        3507                             6500

        3561                             6600

        3615                             6700

        3669                             6800

        3723                             6900

        3777                             7000

    Effective beginning December 31, 2003: 

        3831                             7100

        3885                             7200

        3939                             7300

        3993                             7400

        4047                             7500

    (e) For a relief association in which the governing bylaws 
 provide for a monthly benefit service pension as an alternative 
 form of service pension payment to a lump sum service pension, 
 the maximum service pension amount for each pension payment type 
 must be determined using the applicable table contained in this 
 subdivision. 

    (f) If a relief association establishes a service pension 
 in compliance with the applicable maximum contained in paragraph 
 (c) or (d) and the minimum average amount of available financing 
 per active covered firefighter is subsequently reduced because 
 of a reduction in fire state aid or because of an increase in 
 the number of active firefighters, the relief association may 
 continue to provide the prior service pension amount specified 
 in its bylaws, but may not increase the service pension amount 
 until the minimum average amount of available financing per 
 firefighter under the table in paragraph (c) or (d), whichever 
 applies, permits. 

    (g) No relief association is authorized to provide a 
 service pension in an amount greater than the largest applicable 
 flexible service pension maximum amount even if the amount of 
 available financing per firefighter is greater than the 
 financing amount associated with the largest applicable flexible 
 service pension maximum. 

    Subd. 3a.    Penalty for paying pension greater than 
 applicable maximum.  (a) If a relief association pays a 
 service pension greater than the maximum service pension 
 associated with the applicable average amount of available 
 financing per active covered firefighter under the table in 
 subdivision 3, paragraph (c) or (d), whichever applies, the 
 maximum service pension under subdivision 3, paragraph (f), or 
 the applicable maximum service pension amount specified in 
 subdivision 3, paragraph (g), whichever is less, the state 
 auditor shall: 

    (1) disqualify the municipality or the nonprofit 
 firefighting corporation associated with the relief association 
 from receiving fire state aid by making the appropriate 
 notification to the municipality and the commissioner of 
 revenue, with the disqualification applicable for the next 
 apportionment and payment of fire state aid; and 

    (2) recover the amount of the overpaid service pension or 
 pensions from any retired firefighter who received an 
 overpayment. 

    (b) Fire state aid amounts from disqualified municipalities 
 for the period of disqualifications under paragraph (a), clause 
 (1), must be credited to the amount of fire insurance premium 
 tax proceeds available for the next subsequent fire state aid 
 apportionment. 

    (c) The amount of any overpaid service pension recovered 
 under paragraph (a), clause (2), must be credited to the amount 
 of fire insurance premium tax proceeds available for the next 
 subsequent fire state aid apportionment. 

    (d) The determination of the state auditor that a relief 
 association has paid a service pension greater than the 
 applicable maximum must be made on the basis of the information 
 filed by the relief association and the municipality with the 
 state auditor under sections 69.011, subdivision 2, and 69.051, 
 subdivision 1 or 1a, whichever applies, and any other relevant 
 information that comes to the attention of the state auditor.  
 The determination of the state auditor is final.  An aggrieved 
 municipality, relief association, or person may appeal the 
 determination under section 480A.06.  

    Subd. 4.    Defined contribution lump sum service 
 pensions.  If the bylaws governing the relief association so 
 provide exclusively, the relief association may pay a defined 
 contribution lump sum service pension in lieu of any defined 
 benefit service pension governed by subdivision 2.  An 
 individual account for each firefighter who is a member of the 
 relief association shall be established.  To each individual 
 member account shall be credited a right to an equal share of:  
 (a) any amounts of fire state aid received by the relief 
 association; (b) any amounts of municipal contributions to the 
 relief association raised from levies on real estate or from 
 other available revenue sources exclusive of fire state aid; and 
 (c) any amounts equal to the share of the assets of the special 
 fund to the credit of:  (1) any former member who terminated 
 active service with the fire department to which the relief 
 association is associated prior to meeting the minimum service 
 requirement provided for in subdivision 1 and has not returned 
 to active service with the fire department for a period no 
 shorter than five years; or (2) any retired member who retired 
 prior to obtaining a full nonforfeitable interest in the amounts 
 credited to the individual member account pursuant to 
 subdivision 2 and any applicable provision of the bylaws of the 
 relief association.  In addition, any interest or investment 
 income earned on the assets of the special fund shall be 
 credited in proportion to the share of the assets of the special 
 fund to the credit of each individual member account.  At the 
 time of retirement pursuant to subdivision 1 and any applicable 
 provision of the bylaws of the relief association, a retiring 
 member shall be entitled to that portion of the assets of the 
 special fund to the credit of the member in the individual 
 member account which is nonforfeitable pursuant to subdivision 2 
 and any applicable provision of the bylaws of the relief 
 association based on the number of years of service to the 
 credit of the retiring member.  

    Subd. 5. Repealed, 1999 c 222 art 11 s 1 

    Subd. 6.    Payment of service pensions; nonassignability. 
  The method of calculating service pensions shall be applied 
 uniformly for all years of active service and credit shall be 
 given for all years of active service, except as otherwise 
 provided in this section.  No service pension shall be paid to 
 any person while the person remains an active member of the 
 respective fire department, and no person who is receiving a 
 service pension shall be entitled to receive any other benefits 
 from the special fund of the relief association.  No service 
 pension or ancillary benefits paid or payable from the special 
 fund of a relief association to any person receiving or entitled 
 to receive a service pension or ancillary benefits shall be 
 subject to garnishment, judgment, execution, or other legal 
 process, except as provided in section 518.58, 518.581, or 
 518.6111.  No person entitled to a service pension or ancillary 
 benefits from the special fund of a relief association may 
 assign any service pension or ancillary benefit payments, nor 
 shall the association have the authority to recognize any 
 assignment or pay over any sum which has been assigned. 

    Subd. 7.    Deferred service pensions.  (a) A member of 
 a relief association to which this section applies is entitled 
 to a deferred service pension if the member: 

    (1) has completed the lesser of the minimum period of 
 active service with the fire department specified in the bylaws 
 or 20 years of active service with the fire department; 

    (2) has completed at least five years of active membership 
 in the relief association; and 

    (3) separates from active service and membership before 
 reaching age 50 or the minimum age for retirement and 
 commencement of a service pension specified in the bylaws 
 governing the relief association if that age is greater than age 
 50.  

    (b) The deferred service pension starts when the former 
 member reaches age 50 or the minimum age specified in the bylaws 
 governing the relief association if that age is greater than age 
 50 and when the former member makes a valid written application. 

    (c) A relief association that provides a lump sum service 
 pension may, when its governing bylaws so provide, pay interest 
 on the deferred lump sum service pension during the period of 
 deferral.  If provided for in the bylaws, interest must be paid 
 in one of the following manners: 

    (1) at the investment performance rate actually earned on 
 that portion of the assets if the deferred benefit amount is 
 invested by the relief association in a separate account 
 established and maintained by the relief association or if the 
 deferred benefit amount is invested in a separate investment 
 vehicle held by the relief association; 

    (2) at the interest rate of five percent, compounded 
 annually; or 

    (3) at a rate equal to the actual time weighted total rate 
 of return investment performance of the special fund as reported 
 by the Office of the State Auditor under section 356.219, up to 
 five percent, compounded annually, and applied consistently for 
 all deferred service pensioners. 

    (d) A relief association may not use the method provided 
 for in paragraph (c), clause (3), until it has modified its 
 bylaws to be consistent with that clause. 

    (e) For a deferred service pension that is transferred to a 
 separate account established and maintained by the relief 
 association or separate investment vehicle held by the relief 
 association, the deferred member bears the full investment risk 
 subsequent to transfer and in calculating the accrued liability 
 of the volunteer firefighters relief association that pays a 
 lump sum service pension, the accrued liability for deferred 
 service pensions is equal to the separate relief association 
 account balance or the fair market value of the separate 
 investment vehicle held by the relief association. 

    (f) The deferred service pension is governed by and must be 
 calculated under the general statute, special law, relief 
 association articles of incorporation, and relief association 
 bylaw provisions applicable on the date on which the member 
 separated from active service with the fire department and 
 active membership in the relief association. 

    Subd. 8.    Lump sum service pensions; installment 
 payments.  Any relief association, if the governing bylaws so 
 provide, may pay, at the option of the retiring member and in 
 lieu of a single payment of a lump sum service pension, a lump 
 sum service pension in installments. 

    The election of installment payments shall be irrevocable 
 and shall be made by the retiring member in writing and filed 
 with the secretary of the relief association no later than 30 
 days prior to the commencement of payment of the service 
 pension.  The amount of the installment payments shall be 
 determined so that the present value of the aggregate 
 installment payments computed at an interest rate of five 
 percent, compounded annually, is equal to the amount of the 
 single lump sum payment which would have been made had the 
 installment payments option not been elected.  The payment of 
 each installment shall include interest at the rate of five 
 percent, compounded annually on the reserve supporting the 
 remaining installment payments as of the date on which the 
 previous installment payment was paid and computed from the date 
 on which the previous installment payment was paid to the date 
 of payment for the current installment payment. 

    To the extent that the commissioner of commerce deems it to 
 be necessary or practical, the commissioner may specify and 
 issue procedures, forms or mathematical tables for use in 
 performing the calculations required pursuant to this 
 subdivision.  

    Subd. 8a.    Purchase of annuity contracts.  A relief 
 association providing a lump-sum service pension, if the 
 governing articles of incorporation or bylaws so provide, may 
 purchase an annuity contract on behalf of a retiring member in 
 an amount equal to the service pension otherwise payable at the 
 request of the person and in place of a direct payment to the 
 person.  The annuity contract must be purchased from an 
 insurance carrier licensed to do business in this state and 
 approved for this product by the commerce commissioner under 
 section 60A.40.  

    Subd. 8b.    Transfer to individual retirement account.  
 A relief association that is a qualified pension plan under 
 section 401(a) of the federal Internal Revenue Code, as amended, 
 and that provides a lump sum service pension, at the written 
 request of a retiring member, may directly transfer the eligible 
 member's lump sum pension to the member's individual retirement 
 account under section 408(a) of the federal Internal Revenue 
 Code, as amended. 

    Subd. 9.    Limitation on ancillary benefits.  Any 
 relief association, including any volunteer firefighters relief 
 association governed by section 69.77 or any volunteer 
 firefighters division of a relief association governed by 
 chapter 424, may only pay ancillary benefits which would 
 constitute an authorized disbursement as specified in section 
 424A.05 subject to the following requirements or limitations: 

    (1) with respect to a relief association in which governing 
 bylaws provide for a lump sum service pension to a retiring 
 member, no ancillary benefit may be paid to any former member or 
 paid to any person on behalf of any former member after the 
 former member (i) terminates active service with the fire 
 department and active membership in the relief association; and 
 (ii) commences receipt of a service pension as authorized under 
 this section; and 

    (2) with respect to any relief association, no ancillary 
 benefit paid or payable to any member, to any former member, or 
 to any person on behalf of any member or former member, may 
 exceed in amount the total earned service pension of the member 
 or former member.  The total earned service pension must be 
 calculated using the service pension amount specified in the 
 bylaws of the relief association and the years of service 
 credited to the member or former member.  The years of service 
 must be determined as of (i) the date the member or former 
 member became entitled to the ancillary benefit; or (ii) the 
 date the member or former member died entitling a survivor or 
 the estate of the member or former member to an ancillary 
 benefit.  The ancillary benefit must be calculated (i) without 
 regard to whether the member or former member had attained the 
 minimum amount of service and membership credit specified in the 
 governing bylaws; and (ii) without regard to the percentage 
 amounts specified in subdivision 2; except that the bylaws of 
 any relief association may provide for the payment of a survivor 
 benefit in an amount not to exceed five times the yearly service 
 pension amount specified in the bylaws on behalf of any member 
 who dies before having performed five years of active service in 
 the fire department with which the relief association is 
 affiliated. 

    Subd. 9a.    Postretirement increases.  Notwithstanding 
 any provision of general or special law to the contrary, a 
 relief association paying a monthly service pension may provide 
 a postretirement increase to retired members and ancillary 
 benefit recipients of the relief association if (1) the relief 
 association adopts an appropriate bylaw amendment; and (2) the 
 bylaw amendment is approved by the municipality pursuant to 
 subdivision 10 and section 69.773, subdivision 6.  The 
 postretirement increase shall be applicable only to retired 
 members and ancillary benefit recipients receiving a service 
 pension or ancillary benefit as of the effective date of the 
 bylaw amendment.  The authority to provide a postretirement 
 increase to retired members and ancillary benefit recipients of 
 a relief association contained in this subdivision shall 
 supersede any prior special law authorization relating to the 
 provision of postretirement increases.  

    Subd. 9b.    Repayment of service pension in certain 
 instances.  If a retired volunteer firefighter does not 
 permanently separate from active firefighting service as 
 required by subdivision 1 and section 424A.001, subdivision 9, 
 by resuming active service as a firefighter in the same 
 volunteer fire department or as a person in charge of 
 firefighters in the same volunteer fire department, no 
 additional service pension amount is payable to the person, no 
 additional service is creditable to the person, and the person 
 shall repay any previously received service pension. 

    Subd. 10.    Local approval of bylaw amendments; filing 
 requirements.  (a) Each relief association to which this 
 section applies shall file a revised copy of its governing 
 bylaws with the state auditor upon the adoption of any amendment 
 to its governing bylaws by the relief association or upon the 
 approval of any amendment to its governing bylaws granted by the 
 governing body of each municipality served by the fire 
 department to which the relief association is directly 
 associated.  Failure of the relief association to file a copy of 
 the bylaws or any bylaw amendments with the state auditor shall 
 disqualify the municipality from the distribution of any future 
 fire state aid until this filing requirement has been completed. 

    (b) If the special fund of the relief association does not 
 have a surplus over full funding pursuant to section 69.772, 
 subdivision 3, clause (2), subclause (e), or 69.773, subdivision 
 4, and if the municipality is required to provide financial 
 support to the special fund of the relief association pursuant 
 to section 69.772 or 69.773, no bylaw amendment which would 
 affect the amount of, the manner of payment of, or the 
 conditions for qualification for service pensions or ancillary 
 benefits or disbursements other than administrative expenses 
 authorized pursuant to section 69.80 payable from the special 
 fund of the relief association shall be effective until it has 
 been ratified by the governing body or bodies of the appropriate 
 municipalities.  If the municipality is not required to provide 
 financial support to the special fund pursuant to this section, 
 the relief association may adopt or amend without municipal 
 ratification its articles of incorporation or bylaws which 
 increase or otherwise affect the service pensions or ancillary 
 benefits payable from the special fund so long as the changes do 
 not cause the amount of the resulting increase in the accrued 
 liability of the special fund to exceed 90 percent of the amount 
 of the prior surplus over full funding and the changes do not 
 result in the financial requirements of the special fund 
 exceeding the expected amount of the future fire state aid to be 
 received by the relief association.  

    (c) If the relief association pays only a lump sum pension, 
 the financial requirements are to be determined by the board of 
 trustees following the preparation of an estimate of the 
 expected increase in the accrued liability and annual accruing 
 liability of the relief association attributable to the change.  
 If the relief association pays a monthly benefit service 
 pension, the financial requirements are to be determined by the 
 board of trustees following either an updated actuarial 
 valuation including the proposed change or an estimate of the 
 expected actuarial impact of the proposed change prepared by the 
 actuary of the relief association.  If a relief association 
 adopts or amends its articles of incorporation or bylaws without 
 municipal ratification pursuant to this subdivision, and, 
 subsequent to the amendment or adoption, the financial 
 requirements of the special fund pursuant to this section are 
 such so as to require financial support from the municipality, 
 the provision which was implemented without municipal 
 ratification shall no longer be effective without municipal 
 ratification, and any service pensions or ancillary benefits 
 payable after that date shall be paid only in accordance with 
 the articles of incorporation or bylaws as amended or adopted 
 with municipal ratification.  

    Subd. 11. Repealed, 2000 c 461 art 16 s 13 

    Subd. 12.    Transfer of service credit to new district. 
  Notwithstanding the requirements of subdivision 1 or any 
 other law, a member of a fire department which is disbanded upon 
 formation of a fire district to serve substantially the same 
 geographic area, who serves as an active firefighter with the 
 new district fire department, and is a member of the district 
 firefighters' relief association shall be entitled to a 
 nonforfeitable service pension from the new relief association 
 upon completion of a combined total of 20 years active service 
 in the disbanded and the new departments.  The amount of the 
 service pension shall be based upon years of service in the new 
 department only, and shall be in an amount equal to the accrued 
 liability for the appropriate years of service calculated in 
 accordance with section 69.772, subdivision 2. 

    Subd. 13.    Combined service pensions.  (a) If the 
 articles of incorporation or bylaws of the associations so 
 provide, a volunteer firefighter with credit for service as an 
 active firefighter in more than one volunteer firefighters 
 relief association is entitled, when the applicable requirements 
 of paragraph (b) are met and when otherwise qualified, to a 
 prorated service credit from each relief association. 

    (b) A volunteer firefighter receiving a prorated service 
 pension under this subdivision must have total service credit of 
 ten years or more, if every affected relief association does not 
 require only a five-year service vesting requirement, or five 
 years or more, if every affected relief association requires 
 only a five-year service vesting requirement, as a member of two 
 or more relief associations otherwise qualified.  The member 
 must have one year or more of service credit in each relief 
 association.  The prorated service pension must be based on the 
 service pension amount in effect for the relief association on 
 the date on which active volunteer firefighting services covered 
 by that relief association terminate.  To receive a service 
 pension under this subdivision, the firefighter must become a 
 member of the second or succeeding association and must give 
 notice of membership to the prior association within two years 
 of the date of termination of active service with the prior 
 association.  The notice must be attested to by the second or 
 subsequent association secretary. 

    HIST: 1979 c 201 s 12; 1980 c 607 art 15 s 11; 1981 c 224 s 
 208,209,274; 1982 c 421 s 3; 1982 c 460 s 8; 1982 c 465 s 7,8; 
 1983 c 219 s 6; 1983 c 286 s 21; 1983 c 289 s 114 subd 1; 1984 c 
 547 s 15; 1984 c 655 art 1 s 92; 1985 c 261 s 8-10; 1Sp1985 c 7 
 s 35; 1987 c 372 art 1 s 22; 1988 c 668 s 9; 1988 c 709 art 7 s 
 2,3; 1989 c 319 art 10 s 3-6; 1990 c 570 art 14 s 1; 1993 c 244 
 art 1 s 1-3; art 3 s 1; 1996 c 438 art 8 s 4; 1997 c 203 art 6 s 
 92; 1997 c 241 art 6 s 1; art 10 s 5; 2000 c 461 art 15 s 5-9; 
 2002 c 392 art 13 s 1; 1Sp2003 c 12 art 12 s 1; 2004 c 267 art 
 14 s 1,2 

*   NOTE:  The deferred service pension interest crediting 
*procedure of subdivision 7, paragraph (c), clause (3), expires 
*on December 31, 2008.  Laws 2004, chapter 267, article 14, 
*section 5, paragraph (d).