1.1 A bill for an act
1.2 relating to retirement; volunteer firefighter relief associations; modifying various
1.3 provisions as recommended by the state auditor's volunteer fire working
1.4 group; amending Minnesota Statutes 2004, sections 6.72; 69.011, subdivision
1.5 4; 424A.001, by adding a subdivision; 424A.02, subdivision 8b; 424A.05,
1.6 subdivision 3.
1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2004, section 6.72, is amended to read:
1.9 6.72 STATE AUDITOR; REPORT TO LEGISLATURE ON VOLUNTEER
1.10 FIREFIGHTERS' RELIEF ASSOCIATIONS.
1.11 Subdivision 1. Reporting requirements. Commencing November 15, 1981, and
1.12 every two years thereafter (a) Annually, the state auditor shall report to the legislature on
1.13 the general financial condition of the various volunteer firefighters' relief associations in
1.14 the state as of December 31 of the year preceding the filing of the report.
1.15 (b) Two copies of the report shall be filed with the executive director of the
1.16 Legislative Commission on Pensions and Retirement and ten copies of the report shall be
1.17 filed with the director of the Legislative Reference Library.
1.18 Subd. 2. Contents of report. The report shall must include the aggregate totals for
1.19 all volunteer firefighters' relief associations directly associated with the municipal fire
1.20 departments and all volunteer firefighters' relief associations subsidiary to independent
1.21 nonprofit firefighting corporations, the aggregate totals by the various benefit types and the
1.22 individual results for each volunteer firefighters' relief association listed by various benefit
1.23 types specified in subdivision 3. The following items shall be reported in each instance:
1.24 (1) amount of accrued liability,
1.25 (2) amount of the assets of the special fund,
2.1 (3) amount of surplus or unfunded accrued liability,
2.2 (4) funding ratio,
2.3 (5) amount of annual accruing liability or normal cost,
2.4 (6) amount of annual required contribution to amortize the unfunded accrued
2.5 liability,
2.6 (7) amount of total required contribution,
2.7 (8) amount of fire state aid and supplemental fire state aid,
2.8 (9) amount of any municipal contributions,
2.9 (10) amount of administrative expenses,
2.10 (11) amount of service pension disbursements,
2.11 (12) amount of other retirement benefit disbursements,
2.12 (13) number of active members,
2.13 (14) number of retired members,
2.14 (15) number of deferred members,
2.15 (16) amount of fidelity bond of secretary and treasurer,
2.16 (17) amount of lump sum or monthly service pension accrued per year of service
2.17 credit,
2.18 (18) minimum retirement age required for commencement of a service pension,
2.19 (19) minimum years of active service credit required for commencement of service
2.20 pension,
2.21 (20) minimum years of active membership credit required for commencement of
2.22 service pension,
2.23 (21) type and amount of other retirement benefits.
2.24 Subd. 3. Benefit categories Report format. For purposes of compiling The report
2.25 required by this section, the various benefit types shall be as follows:
2.26 (1) volunteer firefighters' relief associations paying a lump sum service pension of:
2.27 (i) less than $50 per year of service,
2.28 (ii) $50 or more, but less than $100 per year of service,
2.29 (iii) $100 or more, but less than $200 per year of service,
2.30 (iv) $200 or more, but less than $300 per year of service,
2.31 (v) $300 or more per year of service;
2.32 (2) volunteer firefighters' relief associations paying a monthly benefit service
2.33 pension of:
2.34 (i) less than $2 per month per year of service,
2.35 (ii) $2 or more per month per year of service;
3.1 (3) volunteer firefighters' relief associations paying a defined contribution service
3.2 pension;
3.3 (4) volunteer firefighters' relief associations paying no service pension must be
3.4 organized in a manner that the state auditor determines to provide fair representation of
3.5 the condition of the various volunteer firefighters' relief associations.
3.6 Sec. 2. Minnesota Statutes 2004, section 69.011, subdivision 4, is amended to read:
3.7 Subd. 4. Qualification for state aid. Any municipality in this state having for more
3.8 than one year an organized fire department and officially established by the governing
3.9 body of the municipality or an independent nonprofit fire fighting corporation created
3.10 under the nonprofit corporation act of this state and operating exclusively for fire fighting
3.11 purposes and providing retirement and relief benefits to its members or having a separate
3.12 subsidiary incorporated firefighter's relief and pension association providing retirement
3.13 and relief benefits may qualify to receive state aid if it meets the following minimum
3.14 requirements or equivalent indication of a capable and functioning fire department as
3.15 determined by the state fire marshal by July 1, 1972:
3.16 (a) (1) ten paid or volunteer firefighters including a fire chief and assistant fire
3.17 chief, and
3.18 (b) (2) regular scheduled meetings and frequent drills including instructions in fire
3.19 fighting tactics and in the use, care, and operation of all fire apparatus and equipment, and
3.20 (c) (3) a motorized fire truck equipped with a motorized pump, 250 gallon or larger
3.21 water tank, 300 feet of one inch or larger fire hose in two lines with combination spray
3.22 and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry
3.23 chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
3.24 axes, lanterns, fire coats, helmets, boots, and
3.25 (d) (4) apparatus suitably housed in a building of good construction with facilities
3.26 for care of hose and equipment, and
3.27 (e) (5) a reliable and adequate method of receiving fire alarms by telephone or with
3.28 electric siren and suitable means of sounding an alarm, and
3.29 (f) (6) if response is to be provided outside the corporate limits of the municipality
3.30 wherein the fire department is located, the municipality has another piece of motorized
3.31 apparatus to make the response, and
3.32 (g) (7) other requirements the commissioner state fire marshal establishes by rule.
3.33 Sec. 3. Minnesota Statutes 2004, section 424A.001, is amended by adding a
3.34 subdivision to read:
4.1 Subd. 10. Volunteer firefighter. "Volunteer firefighter" means a person who:
4.2 (1) was a member of the applicable fire department or the firefighting corporation
4.3 and a member of the relief association on July 1, 2006; or
4.4 (2) became a member of the applicable fire department or the firefighting corporation
4.5 and is eligible for membership in the applicable relief association after June 30, 2006, and
4.6 (i) is engaged in providing emergency response services or delivering fire education
4.7 or prevention services as a member of a municipal fire department, a joint powers entity
4.8 fire department, or an independent nonprofit firefighting corporation;
4.9 (ii) is trained in or is qualified to provide fire suppression duties or to provide fire
4.10 prevention duties under subdivision 8; and
4.11 (iii) meets any other minimum firefighter and service standards established by the
4.12 fire department or firefighting corporation or specified in the articles of incorporation or
4.13 bylaws of the relief association.
4.14 Sec. 4. Minnesota Statutes 2004, section 424A.02, subdivision 8b, is amended to read:
4.15 Subd. 8b. Transfer to individual retirement account. A relief association that is
4.16 a qualified pension plan under section 401(a) of the federal Internal Revenue Code, as
4.17 amended, and that provides a lump sum service pension, at the written request of a the
4.18 applicable retiring member or, following the death of the active member, at the written
4.19 request of the deceased member's surviving spouse, may directly transfer the eligible
4.20 member's lump sum pension or the death, funeral, or survivor benefit attributable to the
4.21 member, whichever applies, to the member's requesting person's individual retirement
4.22 account under section 408(a) of the federal Internal Revenue Code, as amended.
4.23 Sec. 5. Minnesota Statutes 2004, section 424A.05, subdivision 3, is amended to read:
4.24 Subd. 3. Authorized disbursements from the special fund. (a) Disbursements
4.25 from the special fund are not permitted to be made for any purpose other than one of
4.26 the following:
4.27 (1) for the payment of service pensions to retired members of the relief association if
4.28 authorized and paid pursuant to law and the bylaws governing the relief association;
4.29 (2) for the payment of temporary or permanent disability benefits to disabled
4.30 members of the relief association if authorized and paid pursuant to law and specified in
4.31 amount in the bylaws governing the relief association;
4.32 (3) for the payment of survivor benefits to surviving spouses and surviving children,
4.33 or if none, to designated beneficiaries, of deceased members of the relief association,
4.34 and if survivors and if no designated beneficiary, for the payment of a death benefit to
5.1 the estate of the deceased active firefighter, if authorized by and paid pursuant to law and
5.2 specified in amount in the bylaws governing the relief association;
5.3 (4) for the payment of any funeral benefits to the surviving spouse, or if no surviving
5.4 spouse, the estate, of the deceased member of the relief association if authorized by law
5.5 and specified in amount in the bylaws governing the relief association;
5.6 (5) for the payment of the fees, dues and assessments to the Minnesota State Fire
5.7 Department Association, to the Minnesota Area Relief Association Coalition, and to
5.8 the state Volunteer Firefighters Benefit Association in order to entitle relief association
5.9 members to membership in and the benefits of these associations or organizations; and
5.10 (6) for the payment of administrative expenses of the relief association as authorized
5.11 pursuant to section 69.80.
5.12 (b) For purposes of this chapter, a designated beneficiary must be a natural person.
5.13 Sec. 6. EFFECTIVE DATE.
5.14 (a) Sections 1, 2, and 5 are effective on July 1, 2006.
5.15 (b) Section 3 is effective on January 1, 2008.
5.16 (c) Section 4 is effective upon the day following final enactment and applies
5.17 retroactively to January 1, 2006.