2007 Minnesota Statutes

424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER FIREFIGHTERS.
    Subdivision 1. Definitions. For purposes of this section:
    (1) "qualified recipient" means an individual who receives a lump sum distribution of
pension or retirement benefits from a firefighters' relief association for service that the individual
has performed as a volunteer firefighter;
    (2) "survivor of a deceased active or deferred volunteer firefighter" means the legally married
spouse of a deceased volunteer firefighter, or, if none, the surviving minor child or minor children
of a deceased volunteer firefighter;
    (3) "active volunteer firefighter" means a person who regularly renders fire suppression
service for a municipal fire department or an independent nonprofit firefighting corporation, who
has met the statutory and other requirements for relief association membership, and who has been
a fully qualified member of the relief association for at least one month; and
    (4) "deferred volunteer firefighter" means a former active volunteer firefighter who terminated
active firefighting service, has sufficient service credit from the applicable relief association to be
entitled to a service pension, but has not applied for or has not received the service pension.
    Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a firefighters' relief
association of a lump sum distribution to a qualified recipient, the association must pay a
supplemental benefit to the qualified recipient. Notwithstanding any law to the contrary, the relief
association must pay the supplemental benefit out of its special fund. The amount of this benefit
equals ten percent of the regular lump sum distribution that is paid on the basis of the recipient's
service as a volunteer firefighter. In no case may the amount of the supplemental benefit exceed
$1,000. A supplemental benefit under this paragraph may not be paid to a survivor of a deceased
active or deferred volunteer firefighter in that capacity.
    (b) Upon the payment by a relief association of a lump sum survivor benefit or funeral
benefit to a survivor of a deceased active volunteer firefighter or of a deceased deferred volunteer
firefighter, the association may pay a supplemental survivor benefit to the survivor of the deceased
active or deferred volunteer firefighter from the special fund of the relief association if its articles
of incorporation or bylaws so provide. The amount of the supplemental survivor benefit is 20
percent of the survivor benefit or funeral benefit, but not to exceed $2,000.
    (c) An individual may receive a supplemental benefit under paragraph (a) or under paragraph
(b), but not under both paragraphs with respect to one lump sum volunteer firefighter benefit.
    Subd. 3. State reimbursement. (a) By February 15 of each year, the treasurer of the relief
association shall apply to the commissioner of revenue for state reimbursement of the amount of
supplemental benefits paid under subdivision 2 during the preceding calendar year. By March 15,
the commissioner shall reimburse the relief association for the amount of the supplemental benefits
paid to qualified recipients and to survivors of deceased active or deferred volunteer firefighters.
    (b) The commissioner of revenue shall prescribe the form of and supporting information that
must be supplied as part of the application for state reimbursement.
    (c) The reimbursement payment must be deposited in the special fund of the relief
association.
    (d) A sum sufficient to make the payments is appropriated from the general fund to the
commissioner of revenue.
    Subd. 4. In lieu of income tax exclusion. (a) The supplemental benefit provided by this
section is in lieu of the state income tax exclusion for lump sum distributions of retirement
benefits paid to volunteer firefighters.
(b) If the law is modified to exclude or exempt volunteer firefighters' lump sum distributions
from state income taxation, the supplemental benefits under this section may no longer be paid
beginning with the first calendar year in which the exclusion or exemption is effective. This
subdivision does not apply to exemption of all or part of a lump sum distribution under section
290.032 or 290.0802.
    Subd. 5. Retroactive reimbursement in certain instances. A supplemental survivor
or funeral benefit may be paid by a relief association for the death of an active volunteer
firefighter or of a deferred volunteer firefighter that occurred on or after August 1, 2005, if the
relief association articles of incorporation or bylaws so provide for a supplemental survivor
benefit and for retroactivity.
History: 1988 c 719 art 19 s 22; 1989 c 319 art 10 s 7; 1993 c 307 art 9 s 1; 2006 c 271
art 13 s 5; 2007 c 134 art 10 s 1-3