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A bill for an act
relating to retirement; Public Employees Retirement Association; modifying
provisions relating to the statewide volunteer firefighting plan; amending Minnesota
Statutes 2024, sections 353G.01, by adding subdivisions; 353G.02, subdivision
4; 353G.05, subdivisions 1, 1a, 1b, 1d, 3, 5, by adding a subdivision; 353G.07;
353G.075; 353G.08, subdivision 1; 353G.082, subdivision 3; 353G.085; 353G.14,
by adding a subdivision; 353G.18, subdivisions 2, 4; 353G.19, by adding a
subdivision; Minnesota Statutes 2025 Supplement, sections 353G.01, subdivision
7b; 353G.11, subdivisions 2, 2a; 353G.19, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 353G.01, subdivision 7b, is
amended to read:
Subd. 7b.
Lump-sum division.
"Lump-sum division" means the division of the defined
benefit plan
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or the defined contribution plan
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that distributes retirement benefits under section
353G.14, subdivision 1
, in the form of a single lump sum.
Sec. 2.
Minnesota Statutes 2024, section 353G.01, is amended by adding a subdivision to
read:
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Subd. 9d.
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On-call basis.
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"On-call basis" means the volunteer firefighter:
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(1) receives compensation per call or per hour for firefighting services; and
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(2) has a choice of availability regarding the firefighter's hours or scheduled shifts in
providing services with the fire department.
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Sec. 3.
Minnesota Statutes 2024, section 353G.01, is amended by adding a subdivision to
read:
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Subd. 14b.
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Volunteer basis.
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"Volunteer basis" means the volunteer firefighter:
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(1) does not receive compensation per call or hour for firefighting services but may
receive reimbursement for expenses; and
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(2) has a choice of availability in providing services with the fire department.
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Sec. 4.
Minnesota Statutes 2024, section 353G.02, subdivision 4, is amended to read:
Subd. 4.
Periodic audit; biennial actuarial valuation;
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biennial
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annual
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funding
report.
(a) The legislative auditor shall periodically audit the retirement fund.
(b) The executive director must retain an approved actuary under section
356.214
to
perform biennial actuarial valuations of each fire department account in the monthly division.
The actuarial valuation must conform with section
356.215
and the standards for actuarial
work. The actuarial valuation must contain sufficient detail for each participating employer
to ascertain the actuarial condition of its account in the retirement fund and the amount of
its required contribution to the account.
(c) The executive director must perform
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biennial
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annual
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funding assessments of each
fire department account in the
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lump-sum division
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defined benefit plan
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. The assessment must
comply with section
353G.08, subdivision 1
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or 1a, as applicable
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.
Sec. 5.
Minnesota Statutes 2024, section 353G.05, subdivision 1, is amended to read:
Subdivision 1.
Entities eligible to request coverage.
A relief association, municipality,
or firefighting corporation may elect to have its volunteer firefighters covered by the
retirement plan
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, except that after December 31, 2026, a relief association, municipality, or
firefighting corporation that is affiliated with a defined benefit relief association, as defined
in section 424A.001, subdivision 1b, and that provides a monthly pension, may not elect to
have its volunteer firefighters covered by the retirement plan
new text end
.
Sec. 6.
Minnesota Statutes 2024, section 353G.05, subdivision 1a, is amended to read:
Subd. 1a.
Requesting coverage.
(a) An entity that is eligible under subdivision 1 to
make a request for coverage may initiate the process of obtaining coverage by filing a request
with the executive director, as described in this subdivision.
(b) The request for coverage must be in writing and on a form prescribed by the executive
director.
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The request for coverage must be filed with the association after March 31 and
before July 16. The association must not accept a request for coverage that is filed after July
15 until the following April 1.
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(c) If the request for coverage is for volunteer firefighters covered by a relief association
retirement plan, the secretary of the relief association, following approval of the request by
the board of trustees of the relief association, and the chief administrative officer of the
entity affiliated with the relief association, following approval of the request by the governing
body of the entity, must jointly make the request. If the relief association is affiliated with
more than one entity, the chief administrative officer of each affiliated entity must execute
the request.
(d) If the request for coverage is for volunteer firefighters who are not covered by a
relief association retirement plan, the chief administrative officer of the entity operating the
fire department must make the request.
Sec. 7.
Minnesota Statutes 2024, section 353G.05, subdivision 1b, is amended to read:
Subd. 1b.
Selection of plan and division.
(a) In the request for coverage, the entity must
select coverage by either the defined benefit plan or the defined contribution plan.
(b) If the entity selects coverage by the defined benefit plan, the entity must select
coverage by either the lump-sum division or the monthly division, except that the entity
may select coverage by the monthly division only if the relief association with which the
entity is affiliated is a defined benefit relief association, as defined under section
424A.001
,
subdivision 1b, that provides a monthly pension.
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After December 31, 2026, the association
must not accept or approve a request for coverage in which the entity selects coverage by
the monthly division of the defined benefit plan.
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(c) If the entity selects coverage by the defined contribution plan and the relief association
with which the entity is affiliated is a defined benefit relief association, as defined under
section
424A.001, subdivision 1b
, the defined benefit relief association must complete a
conversion under section
353G.19
as part of the process of joining the retirement plan.
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(d) An entity that selects coverage by the defined contribution plan cannot later convert
to coverage by the defined benefit plan.
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Sec. 8.
Minnesota Statutes 2024, section 353G.05, subdivision 1d, is amended to read:
Subd. 1d.
Selection of benefit level.
(a) If the request for coverage is for coverage by
the defined benefit plan, the entity making the request must identify the desired benefit
level.
(b) If the request for coverage is for the lump-sum division of the defined benefit plan,
the benefit level identified must be no less than $500 per full year of service credit and no
more than the maximum amount permitted under section
424A.02, subdivision 3
, per full
year of service credit. Benefit levels between the minimum and maximum must be in $100
increments.
(c) If the request for coverage is for the monthly division of the defined benefit plan
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and
is received before January 1, 2027
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, the benefit level is the amount specified in the retirement
benefit plan document applicable to the fire department.
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(d) If the request for coverage is for coverage by the defined contribution plan, no benefit
level is selected.
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Sec. 9.
Minnesota Statutes 2024, section 353G.05, is amended by adding a subdivision to
read:
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Subd. 1e.
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Cost analysis requirement.
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(a) If the request for coverage is for coverage by
the defined benefit plan, a cost analysis must be prepared before the transfer of coverage
may be approved.
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(b) If the request for coverage is for coverage by the defined contribution plan, a cost
analysis is not required before the transfer of coverage may be approved.
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Sec. 10.
Minnesota Statutes 2024, section 353G.05, subdivision 3, is amended to read:
Subd. 3.
Cost analysis for coverage by monthly division of defined benefit plan.
(a)
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Upon receipt of
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If
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a request for coverage by the monthly division
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is received before January
1, 2027
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, the executive director must prepare a cost analysis as described in this subdivision
and deliver the cost analysis to the board of trustees of the relief association, if one exists,
and the governing body.
(b) The cost analysis under this subdivision must be prepared by the approved actuary
retained by the association. The cost analysis must be based on:
(1) the monthly benefit level and other retirement benefit types and amounts in effect
for the relief association as of the date of the request;
(2) if different than the amount under clause (1), the monthly pension amount identified
in the request under subdivision 1d and evaluated in a special actuarial valuation prepared
under sections
356.215
and
356.216
; and
(3) the standards for actuarial work and the actuarial assumptions utilized in the most
recent actuarial valuation, except that the applicable investment return actuarial assumption
is six percent.
(c) The cost analysis must take into account the vesting option selected in the request
under subdivision 1c.
(d)
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The secretary
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A representative
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of the relief association making the request must
supply the demographic and financial data necessary for the cost analysis to be prepared.
Sec. 11.
Minnesota Statutes 2024, section 353G.05, subdivision 5, is amended to read:
Subd. 5.
Finalization; coverage transfer.
(a) The transfer of coverage to the defined
contribution plan is considered approved if, no later than 120 days
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or the November 1
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after
the filing of the request for coverage with the executive director,
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whichever is earlier,
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the
transfer is approved by both (1) the board of trustees of the relief association, if one exists,
and (2) the governing body.
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If the transfer of coverage to the defined contribution plan is
approved, the entity must provide the most recent reconciliation of account balances to the
association no later than the December 31 following the date of approval.
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If either the
governing body or the board of trustees of the relief association does not take action to
approve the transfer within 120 days
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or by the November 1
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after the filing of the request
for coverage,
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whichever is earlier,
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the transfer is not approved
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and the entity is ineligible
to be covered by the retirement plan for the remainder of the calendar year
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.
(b) The transfer of coverage to the defined benefit plan is considered approved if, no
later than 120 days
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or the November 1
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after receipt of the cost analysis,
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whichever is earlier,
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the transfer is approved by both (1) the board of trustees of the relief association, if one
exists, and (2) the governing body. If either the governing body or the board of trustees of
the relief association does not take action to approve the transfer within 120 days
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or by the
November 1
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after receipt of the cost analysis,
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whichever is earlier,
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the transfer is not approved
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and the entity is ineligible to be covered by the retirement plan for the remainder of the
calendar year
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.
(c) If the transfer is approved, coverage by the plan is effective on the January 1 next
following the date of approval by the last governing body or, if later, the date of approval
by the board of trustees of the relief association.
Sec. 12.
Minnesota Statutes 2024, section 353G.07, is amended to read:
353G.07 SERVICE CREDIT FOR PENSION BENEFIT ACCRUAL OR
CONTRIBUTION ALLOCATION.
(a) Annually, by March 31, the fire chief of a fire department with volunteer firefighters
who are active members of the retirement plan must certify to the executive director the
service credit for the previous calendar year of each volunteer firefighter rendering active
service with the fire department.
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If the service credit certification is not provided by March
31, the most recent service credit certification provided to the executive director must be
used to determine the funding requirements under section 353G.08.
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(b) The fire chief shall provide to each firefighter rendering active service with the fire
department notification of the amount of service credit rendered by the firefighter for the
calendar year. The service credit notification must be provided to the firefighter 60 days
before its certification to the executive director, along with an explanation of the process
for the firefighter to challenge the fire chief's determination of service credit. If the service
credit amount is challenged in a timely fashion, the fire chief shall hold a hearing on the
challenge, accept and consider any additional pertinent information, and make a final
determination of service credit. The final determination of service credit by the fire chief
is not reviewable by the executive director or by the board of trustees.
(c) The service credit certification is an official public document. If a false service credit
certification is filed or if false information regarding service credits is provided, section
353.19
applies.
(d) The service credit certification must be expressed as a
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percentage of a full year
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number of months
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of service during which an active firefighter rendered at least the minimum
level and quantity of fire suppression, emergency response, fire prevention, or fire education
duties required by the fire department under the rules and regulations applicable to the fire
department. No more than one year of service credit may be certified for a calendar year.
(e) If a firefighter covered by the retirement plan leaves active firefighting service to
render active military service that is required to be governed by the federal Uniformed
Services Employment and Reemployment Rights Act, as amended, the person must be
certified as providing a full year of service credit in each year of the military service, up to
the applicable limit of the federal Uniformed Services Employment and Reemployment
Rights Act. If the firefighter does not return from the military service in compliance with
the federal Uniformed Services Employment and Reemployment Rights Act, the service
credits applicable to that military service credit period are forfeited and cancel at the end
of the calendar year in which the federal law time limit occurs.
Sec. 13.
Minnesota Statutes 2024, section 353G.075, is amended to read:
353G.075 SERVICE CREDIT FOR VESTING.
(a) Annually, the executive director must credit each volunteer firefighter with
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a year
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all months and years
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of service credit for vesting for each
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month and
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year of service credited
for benefit accrual or contribution allocation under section
353G.07
.
(b) A volunteer firefighter is entitled to receive service credit toward vesting in the
retirement plan for any period of service as a volunteer firefighter, as defined under section
353G.01, subdivision 15
, rendered as a firefighter in a fire department in the state that was
not covered by the retirement plan at the time the service was rendered if the firefighter
submits a request to the executive director indicating the number of years and months of
service for which credit is requested and provides documentation in a form acceptable to
the executive director regarding the earlier period of service. The firefighter must submit a
copy of the request and documentation to the fire chief of the fire department to which the
firefighter is currently providing service.
(c) The executive director must credit a firefighter with all
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months and
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years of service
as a member of the retirement plan for any participating employer for vesting purposes.
Sec. 14.
Minnesota Statutes 2024, section 353G.08, subdivision 1, is amended to read:
Subdivision 1.
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Biennial
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Annual
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funding reports; lump-sum division.
(a) The executive
director must
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annually
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determine the funding requirements for each fire department account
in the lump-sum division on or before August 1
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every other year
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. The funding requirements
computed under this subdivision must be determined using a mathematical procedure
developed and certified as accurate by the approved actuary retained by the association and
must be based on present value factors using a six percent investment return rate, without
any decrement assumptions. The executive director must provide written notice of the
funding requirements to the entity or entities associated with the fire department whose
active firefighters are covered by the plan.
(b) The overall funding balance of each fire department account for the current calendar
year must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department
as of December 31 of the current year must be calculated based on the service credit of
active and deferred members as of that date.
(2) The assets of the fire department account projected to December 31 of the current
year, including receipts by and disbursements from the account anticipated to occur on or
before December 31, must be calculated. The executive director must begin phasing in the
use of actuarial value of assets in making this calculation beginning with the funding reports
for 2026.
(3) The amount of the assets calculated under clause (2) must be subtracted from the
amount of the total accrued liability calculated under clause (1). If the amount of the assets
exceeds the amount of the total accrued liability, then the account is considered to have a
surplus over full funding. If the amount of the assets is less than the amount of the total
accrued liability, then the account is considered to have a deficit from full funding. If the
amount of assets is equal to the amount of the total accrued liability, then the account is
considered to be fully funded.
(c) The financial requirements of each fire department for the following calendar year
must be determined in the following manner:
(1) The total accrued liability for all active and deferred members of the fire department
as of December 31 of the calendar year next following the current calendar year must be
calculated based on the service used in the calculation under paragraph (b), clause (1),
increased by one year.
(2) The increase in the total accrued liability of the account for the following calendar
year over the total accrued liability of the account for the current year must be calculated.
(3) The amount of administrative expenses of the account must be calculated by
multiplying the per-person dollar amount of the administrative expenses for the most recent
prior calendar year by the number of active and deferred firefighters reported to the
association on the most recent service credit certification form for the account.
(4) If the account is fully funded, the financial requirement of the account for the
following calendar year is the total of the amounts calculated under clauses (2) and (3).
(5) If the account has a deficit from full funding, the financial requirement of the account
for the following calendar year is the total of the amounts calculated under clauses (2) and
(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the
account.
(6) If the account has a surplus over full funding, the financial requirement of the account
for the following calendar year is the financial requirement of the account calculated as
though the account was fully funded under clause (4) and, if the account has also had a
surplus over full funding during the prior two years, additionally reduced by an amount
equal to one-tenth of the amount of the surplus over full funding of the account.
(d) The required contribution of the entity or entities associated with the fire department
whose active firefighters are covered by the lump-sum division is the annual financial
requirements of the fire department account under paragraph (c) reduced by the amount of
any fire state aid payable under chapter 477B or police and firefighter retirement
supplemental state aid payable under section
423A.022
that is reasonably anticipated to be
received by the retirement plan attributable to the entity or entities during the following
calendar year, and an amount of investment earnings on the assets projected to be received
during the following calendar year calculated at the rate of six percent per annum. The
required contribution must be allocated between the entities if more than one entity is
involved. A reasonable amount of anticipated fire state aid is an amount that does not exceed
the fire state aid received in the prior year multiplied by the factor 1.035.
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(e) The financial requirement for each fire department account in the lump-sum division
for the second year of the biennial valuation period must be in the amount determined in
paragraph (d) increased by six percent, but no more than the excess, if any, of the amount
determined under paragraph (c), clause (1), less the actual market value of assets in the fire
department account as of that date.
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(f)
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(e)
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The required contribution calculated in paragraph (d) must be paid to the retirement
plan on or before December 31 of the year for which it was calculated. If the contribution
is not received by the plan by December 31, it is payable with interest at an annual compound
rate of six percent from the date due until the date payment is received by the plan. If the
entity does not pay the full amount of the required contribution, the executive director shall
collect the unpaid amount under section
353.28, subdivision 6
.
Sec. 15.
Minnesota Statutes 2024, section 353G.082, subdivision 3, is amended to read:
Subd. 3.
Annual allocation and deduction in equal shares.
(a) As of the end of each
calendar year, the executive director must credit to the individual account of each firefighter
providing services to a fire department and who did not leave firefighting service with the
fire department during the calendar year an equal share of:
(1) any fire state aid payable under chapter 477B and police and firefighter retirement
supplemental state aid payable under section
423A.022
received by the retirement fund that
is attributable to the participating employer associated with the fire department as soon as
practicable after the aid is received by the retirement fund;
(2) any contributions made by the participating employer to the retirement fund for the
benefit of the volunteer firefighters providing firefighting services to the participating
employer as soon as practicable after the contribution is received by the retirement fund;
and
(3) any forfeiture under section
353G.10, subdivision 4
, attributable to a former volunteer
firefighter of the fire department.
(b) As of the end of each calendar year, the executive director must deduct an equal
share of administrative expenses from each individual account.
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(c) As of the end of the calendar year, the executive director must allocate to the
individual account of a volunteer firefighter who has less than a full year of service a
fractional share of the amount that would have been allocated to the individual account for
a full year of service. The fractional amount is equal to the number of months of service
divided by twelve. A month will be credited if the volunteer firefighter was credited with
at least 16 days of service.
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(c) Each year the executive director must provide a reconciliation to each fire department
with an account in the defined contribution plan. The reconciliation must include a breakdown
of member allocations.
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Sec. 16.
Minnesota Statutes 2024, section 353G.085, is amended to read:
353G.085 AUTHORIZED DISBURSEMENTS.
The assets of the retirement fund may be disbursed only as a distribution of lump-sum
retirement benefits, monthly retirement benefits, or individual accounts or for:
(1) administrative expenses of the retirement plan;
(2) investment expenses of the retirement fund;
(3) survivor benefits;
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and
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(4) a transfer of assets under section
353G.17
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.
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;
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(5) preparation of federal or Minnesota tax form 1099;
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(6) fire department tax requirements; and
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(7) underpaid benefits.
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Sec. 17.
Minnesota Statutes 2025 Supplement, section 353G.11, subdivision 2, is amended
to read:
Subd. 2.
Benefit level changes in the lump-sum division.
(a) A fire department's fire
chief or the governing body operating a fire department may request an increase in the
benefit level as provided in this subdivision.
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(b) The fire chief or governing body must request a cost estimate from the executive
director of an increase in the benefit level applicable to the active firefighters of the fire
department.
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(c) The executive director must prepare the cost estimate using a procedure certified as
accurate by the approved actuary retained by the association.
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(d) Within 120 days
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(b)
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After receiving the
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cost estimate
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annual funding report
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from
the executive director, the governing body may approve the benefit level
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change,
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modification. The modification is considered approved if the governing body notifies the
executive director, in the form and manner prescribed by the executive director, of that
approval no later than December 1 of the calendar year in which the modification is requested.
If the approval is filed by December 1, the modification is
new text end
effective for January 1 of the
following calendar year unless the governing body specifies in the approval document an
effective date that is January 1 of the second year following the approval date. If the approval
occurs after April 30, the required municipal contribution for the following calendar year
must be recalculated and the results reported to the governing body. If
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not approved within
120 days of the receipt of the cost estimate
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the approval is not filed by December 1
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, the
benefit level
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change
deleted text end
new text begin
modification
new text end
is considered to have been disapproved
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and the governing
body must wait until the following calendar year to file a new approval
new text end
.
new text begin
(c) The executive director must not accept an approval until the service credit certification
for the current year and any prior years is provided to the executive director.
new text end
Sec. 18.
Minnesota Statutes 2025 Supplement, section 353G.11, subdivision 2a, is amended
to read:
Subd. 2a.
Benefit level changes in the monthly division.
(a) A fire department's fire
chief or the governing body operating a fire department that has an active membership
covered by the monthly division may request an increase in the benefit level provided in
the retirement benefit plan document under this subdivision.
(b) The modification procedure is initiated when the fire chief or governing body files
with the executive director a written summary of the desired modification, the proposed
modification language, a written request for the preparation of an actuarial cost estimate
for the proposed modification, and payment of the estimated cost of the actuarial cost
estimate.
(c) Upon receipt of the modification request and related documents, the executive director
must review the language of the proposed modification and, if a clarification is needed in
the submitted language, inform the fire chief or governing body of the necessary clarification.
After the fire chief or governing body has submitted the clarified language to the executive
director, the executive director must prepare the cost estimate using a procedure certified
as accurate by the approved actuary retained by the association. Upon completion of the
cost estimate, the executive director must forward the estimate to the fire chief and to the
chief financial officer of the municipality or entity with which the fire department is primarily
associated.
(d) The fire chief, upon receipt of the cost estimate, must distribute the cost estimate to
the active firefighters in the fire department and take reasonable steps to provide the cost
estimate to any affected retired members of the fire department and their beneficiaries. The
chief financial officer of the municipality or entity associated with the fire department must
present the proposed modification language and the cost estimate to the governing body of
the municipality or entity for its consideration at a public hearing held for that purpose.
(e) If the governing body of the municipality or entity approves the modification language,
the chief administrative officer of the municipality or entity must notify the executive
director
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, in the form and manner prescribed by the executive director,
new text end
of that approval
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no
later than December 1 of the calendar year in which the modification is requested
new text end
.
new text begin
If the
approval is filed by December 1,
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the modification is effective on January 1 following the
date of filing the approval with the association.
new text begin
If the approval is not filed by December 1,
the benefit level modification is considered to have been disapproved and the chief
administrative officer must wait until the following calendar year to file a new approval.
new text end
new text begin
(f) The executive director must not accept an approval until the service credit certification
for the current year and any prior years is provided to the executive director.
new text end
Sec. 19.
Minnesota Statutes 2024, section 353G.14, is amended by adding a subdivision
to read:
new text begin
Subd. 3.
new text end
new text begin
Defined contribution plan distributions.
new text end
new text begin
The executive director must not
distribute the retirement benefit under section 353G.09, subdivision 1a, of a member of the
defined contribution plan until the service credit certification required in section 353G.07
is received and processed by the executive director.
new text end
Sec. 20.
Minnesota Statutes 2024, section 353G.18, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the terms defined in this subdivision
have the meanings given them unless the context clearly indicates otherwise.
(b) "Departing entity" means the entity seeking to terminate its participation in the plan
and the coverage of its departing firefighters by the plan.
(c) "Departing firefighter" means each former firefighter of the departing entity who:
(1) is credited with one or more years of service under the plan or under the relief
association previously affiliated with the departing entity;
(2) has not yet received a distribution of the firefighter's pension benefit; and
(3) is entitled to a distribution of a pension benefit under this section.
(d) "Direct rollover" means a payment described under section
356.633
, subdivisions 1
and 2. Consistent with the definition of "distributee" under section
356.633, subdivision 1
,
paragraph (b), a departing firefighter is a distributee for the purpose of a direct rollover
election.
(e) "Distribution date" means the date as of which all assets in the entity's account are
to be distributed in the form of a payment to each departing firefighter or the survivor of
each deceased departing firefighter or as a direct rollover, if elected under section
356.633
,
subdivisions 1 and 2.
(f) "Entity" means a municipality, a firefighting corporation, or a joint powers entity
that operates or had operated a fire department with firefighters who are covered by the
plan.
(g) "Entity's account" means the pension plan that is a component of the plan and under
which the departing firefighters have accrued lump sum pension benefits and with which
the departing entity is affiliated.
(h) "Executive director" means the executive director of the Public Employees Retirement
Association.
(i) "Termination date" means the
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effective date of the termination of
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last day of the year
in which
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the pension plan that is the entity's account
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terminates
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. The termination date shall
precede the distribution date.
(j) "Year of service" means a year of service credit certified by the departing entity's fire
chief under section
353G.07
. For purposes of determining the amount of a departing
firefighter's pension benefit under this section, year of service includes any service credit
earned by the departing firefighter under the relief association previously affiliated with the
departing entity, which must be certified under section
424A.003
beginning January 1,
2019. Service credit ends when the departing firefighter's active service ends, notwithstanding
a later termination date as defined in paragraph (i).
Sec. 21.
Minnesota Statutes 2024, section 353G.18, subdivision 4, is amended to read:
Subd. 4.
Termination procedures.
(a) The participation of a departing entity in the plan
and the coverage of the departing firefighters by the plan shall cease as of the date the
requirements in this subdivision are completed and all assets credited to the entity's account
are distributed.
(b) The governing board of the departing entity shall adopt the resolutions under
subdivision 5 and deliver the resolutions to the executive director
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no later than 90 days
before the end of the year. If the resolutions are not filed 90 days before the end of the year,
the resolutions are considered invalid and the governing board must wait until the following
calendar year to file new resolutions
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.
(c) The executive director shall:
(1) fully vest all departing firefighters as of the termination date and consider each
departing firefighter 100 percent vested in the pension benefit accrued by the departing
firefighter under the entity's account as of the termination date;
(2) determine the present value of each departing firefighter's accrued benefit as of the
termination date, taking into account the benefit level under section
353G.11
or otherwise
in effect for the departing firefighter as determined by the executive director;
(3) determine, as of the termination date, the value of accrued liabilities, including
administrative expenses incurred or reasonably anticipated to be incurred through the
distribution date, and the value of assets attributable to the entity's account; and
(4) to the extent necessary to minimize the risk of investment losses between the
termination date and the distribution date, reinvest the assets credited to the entity's account
in low-risk investments.
(d) If the entity's account has assets in excess of accrued liabilities, the executive director
shall allocate the excess among all departing firefighters in the same proportion that the
present value of the accrued benefit for each departing firefighter bears to the total present
value of the accrued benefits of all departing firefighters, and each departing firefighter's
benefit, as determined under paragraph (c), clause (2), shall be increased by the departing
firefighter's share of the excess.
(e) The executive director shall, as soon as practicable after the termination date, distribute
to each departing firefighter, regardless of whether the departing firefighter has attained
age 50, the firefighter's benefit as calculated by the executive director under paragraphs (c)
and (d). The distribution shall be made in a lump sum, either as a payment to the departing
firefighter or as a direct rollover, if elected by the firefighter. If the departing firefighter is
deceased, then the firefighter's benefit shall be paid to the firefighter's survivor under section
353G.12
or as a direct rollover, if elected by the survivor.
(f) The executive director shall pay supplemental benefits under section
424A.10
, but
only to the extent that the executive director will be reimbursed under section
424A.10
,
subdivision 3.
Sec. 22.
Minnesota Statutes 2025 Supplement, section 353G.19, subdivision 2, is amended
to read:
Subd. 2.
Resolutions by the governing body.
To initiate a conversion, the governing
body of the participating employer must file with the executive director at least 30 days
before the end of a calendar year:
(1) a resolution
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, in the form and manner prescribed by the executive director,
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that states
that the fire department elects to participate in the defined contribution plan effective on
the conversion effective date, which is the first day of the next calendar year; and
(2) if, as of the valuation immediately preceding the conversion effective date, the fire
department account had a deficit from full funding as defined under section
353G.08,
subdivision 1
, paragraph (c), or the special fund of the defined benefit relief association had
a deficit from full funding as defined in section
424A.092, subdivision 3
, paragraph (b), a
resolution
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, in the form and manner prescribed by the executive director,
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approving a
contribution to the retirement plan in the amount necessary to eliminate the deficit, which
is to be paid within 30 days of the filing of the resolution or
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in installments
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over three years,
with the first payment to be made within 30 days of the filing of the resolution.
Sec. 23.
Minnesota Statutes 2024, section 353G.19, is amended by adding a subdivision
to read:
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Subd. 8.
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Prohibition against converting back to defined benefit plan coverage.
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An
entity that converts from coverage by the defined benefit plan to coverage by the defined
contribution plan cannot later convert back to coverage by the defined benefit plan.
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Sec. 24.
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EFFECTIVE DATE.
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Sections 1 to 23 are effective the day following final enactment.
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