1.1A bill for an act
1.2relating to retirement; volunteer firefighter relief associations; implementing
1.3the recommendations of the 2013-2014 state auditor volunteer fire working
1.4group;amending Minnesota Statutes 2012, sections 356A.06, subdivisions 7,
1.57a; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.08;
1.6424B.12; Minnesota Statutes 2013 Supplement, sections 69.051, subdivisions 1a,
1.73; 424A.016, subdivision 6; 424A.02, subdivisions 3, 7; 424A.092, subdivision
1.86; 424A.093, subdivisions 2, 6; 424A.094, subdivision 2; 424A.10, subdivision 2.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10    Section 1. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 1a,
1.11is amended to read:
1.12    Subd. 1a. Financial statement. (a) The board of each volunteer firefighters relief
1.13association, as defined in section 424A.001, subdivision 4, that is not required to file a
1.14financial report and audit under subdivision 1 must prepare a detailed statement of the
1.15financial affairs for the preceding fiscal year of the relief association's special and general
1.16funds in the style and form prescribed by the state auditor. The detailed statement must
1.17show:
1.18(1) the sources and amounts of all money received;
1.19(2) all disbursements, accounts payable and accounts receivable;
1.20(3) the amount of money remaining in the treasury;
1.21(4) total assets, including a listing of all investments;
1.22(5) the accrued liabilities; and
1.23(6) all other items necessary to show accurately the revenues and expenditures and
1.24financial position of the relief association.
1.25(b) The detailed financial statement required under paragraph (a) must be certified
1.26by an independent a certified public accountant or by the state auditor or by the auditor or
2.1accountant who regularly examines or audits the financial transactions of the municipality.
2.2In addition to certifying the financial condition of the special and general funds of the relief
2.3association, the accountant or auditor conducting the examination shall give an opinion
2.4as to the condition of the special and general funds of the relief association, and shall
2.5comment upon any exceptions to the report. The independent accountant or auditor must
2.6have at least five years of public accounting, auditing, or similar experience, and must not
2.7be an active, inactive, or retired member of the relief association or the fire department.
2.8(c) The detailed statement required under paragraph (a) must be countersigned by:
2.9(1) the municipal clerk or clerk-treasurer of the municipality; or
2.10(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
2.11municipality in population which contracts with the independent nonprofit firefighting
2.12corporation if the relief association is a subsidiary of an independent nonprofit firefighting
2.13corporation and by the secretary of the independent nonprofit firefighting corporation; or
2.14(3) by the chief financial official of the county in which the volunteer firefighter
2.15relief association is located or primarily located if the relief association is associated with
2.16a fire department that is not located in or associated with an organized municipality.
2.17(d) The volunteer firefighters' relief association board must file the detailed statement
2.18required under paragraph (a) in the relief association office for public inspection and
2.19present it to the governing body of the municipality within 45 days after the close of the
2.20fiscal year, and must submit a copy of the detailed statement to the state auditor within 90
2.21days of the close of the fiscal year.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.

2.23    Sec. 2. Minnesota Statutes 2013 Supplement, section 69.051, subdivision 3, is
2.24amended to read:
2.25    Subd. 3. Report by certain municipalities; exceptions. (a) The chief
2.26administrative officer of each municipality which has an organized fire department but
2.27which does not have a firefighters' relief association governed by section 69.77 or sections
2.28424A.091 to 424A.095 and which is not exempted under paragraph (b) or (c) shall annually
2.29prepare a detailed financial report of the receipts and disbursements by the municipality
2.30for fire protection service during the preceding calendar year on a form prescribed by the
2.31state auditor. The financial report must contain any information which the state auditor
2.32deems necessary to disclose the sources of receipts and the purpose of disbursements for
2.33fire protection service. The financial report must be signed by the municipal clerk or
2.34clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk
2.35or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does
3.1not qualify initially to receive, and is not entitled subsequently to retain, state aid under
3.2this chapter if the financial reporting requirement or the applicable requirements of this
3.3chapter or any other statute or special law have not been complied with or are not fulfilled.
3.4(b) Each municipality that has an organized fire department and provides retirement
3.5coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
3.6retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
3.7retained in the statewide lump-sum volunteer firefighter retirement fund without filing
3.8a detailed financial report if the executive director of the Public Employees Retirement
3.9Association certifies compliance by the municipality with the requirements of sections
3.10353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief
3.11with the requirements of section 353G.07.
3.12(c) Each municipality qualifies to receive fire state aid under this chapter without
3.13filing a financial report under paragraph (a) if the municipality:
3.14(1) has an organized fire department;
3.15(2) does not have a volunteer firefighters relief association directly associated with
3.16its fire department;
3.17(3) does not participate in the statewide lump-sum volunteer firefighter retirement
3.18plan under chapter 353G;
3.19(4) provides retirement coverage to its firefighters through the public employees
3.20police and fire retirement plan under sections 353.63 to 353.68; and
3.21(5) is certified by the executive director of the Public Employees Retirement
3.22Association to the state auditor to have had an employer contribution under section
3.23353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to
3.24or greater than its fire state aid for the immediately prior calendar year.
3.25EFFECTIVE DATE.This section is effective the day following final enactment
3.26and applies to fire state aid payable on October 1, 2014.

3.27    Sec. 3. Minnesota Statutes 2012, section 356A.06, subdivision 7, is amended to read:
3.28    Subd. 7. Expanded list of authorized investment securities. (a) Authority. A
3.29covered pension plan not described by subdivision 6, paragraph (a), is an expanded list
3.30plan and shall invest its assets as specified in this subdivision. The governing board of an
3.31expanded list plan may select and appoint investment agencies to act for or on its behalf.
3.32    (b) Securities generally; investment forms. An expanded list plan is authorized
3.33to purchase, sell, lend, and exchange the investment securities authorized under this
3.34subdivision, including puts and call options and future contracts traded on a contract
3.35market regulated by a governmental agency or by a financial institution regulated by
4.1a governmental agency. These securities may be owned directly or through shares
4.2in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
4.3limitations specified in this subdivision.
4.4    (c) Government obligations. An expanded list plan is authorized to invest funds in
4.5governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the
4.6issue is backed by the full faith and credit of the issuer or the issue is rated among the top
4.7four quality rating categories by a nationally recognized rating agency. The obligations in
4.8which funds may be invested under this paragraph are guaranteed or insured issues of:
4.9(1) the United States, one of its agencies, one of its instrumentalities, or an
4.10organization created and regulated by an act of Congress;
4.11(2) the Dominion of Canada or one of its provinces if the principal and interest are
4.12payable in United States dollars;
4.13(3) a state or one of its municipalities, political subdivisions, agencies, or
4.14instrumentalities; and
4.15(4) a United States government-sponsored organization of which the United States is
4.16a member if the principal and interest are payable in United States dollars.
4.17    (d) Investment-grade corporate obligations. An expanded list plan is authorized
4.18to invest funds in bonds, notes, debentures, transportation equipment obligations, or
4.19any other longer term evidences of indebtedness issued or guaranteed by a corporation
4.20organized under the laws of the United States or any of its states, or the Dominion of
4.21Canada or any of its provinces if:
4.22    (1) the principal and interest are payable in United States dollars; and
4.23    (2) the obligations are rated among the top four quality categories by a nationally
4.24recognized rating agency.
4.25(e) Below-investment-grade corporate obligations. An expanded list plan is
4.26authorized to invest in unrated corporate obligations or in corporate obligations that are
4.27not rated among the top four quality categories by a nationally recognized rating agency if:
4.28(1) the aggregate value of these obligations does not exceed five percent of the
4.29covered pension plan's market value;
4.30(2) the covered pension plan's participation is limited to 50 percent of a single
4.31offering subject to this paragraph; and
4.32(3) the covered pension plan's participation is limited to 25 percent of an issuer's
4.33obligations subject to this paragraph.
4.34    (f) Other obligations. (1) An expanded list plan is authorized to invest funds in:
4.35    (i) bankers acceptances and deposit notes if issued by a United States bank that is
4.36rated in the highest four quality categories by a nationally recognized rating agency;
5.1    (ii) certificates of deposit if issued by a United States bank or savings institution
5.2rated in the highest four quality categories by a nationally recognized rating agency or
5.3whose certificates of deposit are fully insured by federal agencies, or if issued by a credit
5.4union in an amount within the limit of the insurance coverage provided by the National
5.5Credit Union Administration;
5.6    (iii) commercial paper if issued by a United States corporation or its Canadian
5.7subsidiary and if rated in the highest two quality categories by a nationally recognized
5.8rating agency;
5.9    (iv) mortgage securities and asset-backed securities if rated in the top four quality
5.10categories by a nationally recognized rating agency;
5.11    (v) repurchase agreements and reverse repurchase agreements if collateralized with
5.12letters of credit or securities authorized in this section;
5.13    (vi) guaranteed investment contracts if issued by an insurance company or a bank
5.14that is rated in the top four quality categories by a nationally recognized rating agency
5.15or alternative guaranteed investment contracts if the underlying assets comply with the
5.16requirements of this subdivision;
5.17    (vii) savings accounts if fully insured by a federal agency; and
5.18    (viii) guaranty fund certificates, surplus notes, or debentures if issued by a domestic
5.19mutual insurance company.
5.20    (2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
5.21of deposit and collateralization agreements executed by the covered pension plan under
5.22clause (1), item (ii).
5.23    (3) In addition to investments authorized by clause (1), item (iv), an expanded list
5.24plan is authorized to purchase from the Minnesota Housing Finance Agency all or any part
5.25of a pool of residential mortgages, not in default, that has previously been financed by the
5.26issuance of bonds or notes of the agency. The covered pension plan may also enter into
5.27a commitment with the agency, at the time of any issue of bonds or notes, to purchase
5.28at a specified future date, not exceeding 12 years from the date of the issue, the amount
5.29of mortgage loans then outstanding and not in default that have been made or purchased
5.30from the proceeds of the bonds or notes. The covered pension plan may charge reasonable
5.31fees for any such commitment and may agree to purchase the mortgage loans at a price
5.32sufficient to produce a yield to the covered pension plan comparable, in its judgment,
5.33to the yield available on similar mortgage loans at the date of the bonds or notes. The
5.34covered pension plan may also enter into agreements with the agency for the investment
5.35of any portion of the funds of the agency. The agreement must cover the period of the
5.36investment, withdrawal privileges, and any guaranteed rate of return.
6.1    (g) Corporate stocks. An expanded list plan is authorized to invest in stocks or
6.2convertible issues of any corporation organized under the laws of the United States or any
6.3of its states, any corporation organized under the laws of the Dominion of Canada or any
6.4of its provinces, or any corporation listed on an exchange that is regulated by an agency of
6.5the United States or of the Canadian national government.
6.6    An investment in any corporation must not exceed five percent of the total
6.7outstanding shares of that corporation, except that an expanded list plan may hold up
6.8to 20 percent of the shares of a real estate investment trust and up to 20 percent of the
6.9shares of a closed mutual fund.
6.10    (h) Other investments. (1) In addition to the investments authorized in paragraphs
6.11(b) to (g), and subject to the provisions in clause (2), an expanded list plan is authorized
6.12to invest funds in:
6.13    (i) equity and debt investment businesses through participation in limited
6.14partnerships, trusts, private placements, limited liability corporations, limited liability
6.15companies, limited liability partnerships, and corporations;
6.16    (ii) real estate ownership interests or loans secured by mortgages or deeds of trust
6.17or shares of real estate investment trusts, through investment in limited partnerships,
6.18bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance
6.19company commingled accounts, including separate accounts;
6.20    (iii) resource investments through limited partnerships, trusts, private placements,
6.21limited liability corporations, limited liability companies, limited liability partnerships,
6.22and corporations; and
6.23    (iv) international securities.
6.24    (2) The investments authorized in clause (1) must conform to the following
6.25provisions:
6.26    (i) the aggregate value of all investments made under clause (1), items (i), (ii), and
6.27(iii), may not exceed 35 percent of the market value of the fund for which the expanded
6.28list plan is investing;
6.29    (ii) there must be at least four unrelated owners of the investment other than the
6.30expanded list plan for investments made under clause (1), item (i), (ii), or (iii);
6.31    (iii) the expanded list plan's participation in an investment vehicle is limited to 20
6.32percent thereof for investments made under clause (1), item (i), (ii), or (iii);
6.33    (iv) the expanded list plan's participation in a limited partnership does not include a
6.34general partnership interest or other interest involving general liability. The expanded list
6.35plan may not engage in any activity as a limited partner which creates general liability; and
7.1(v) the aggregate value of all unrated obligations and obligations that are not rated
7.2among the top four quality categories by a nationally recognized rating agency authorized
7.3by paragraph (f) and clause (1), item (iv), must not exceed five percent of the covered
7.4plan's market value; and
7.5(vi) for volunteer firefighter relief associations, emerging market equity and
7.6international debt investments authorized under clause (1), item (iv), must not exceed 15
7.7percent of the association's special fund market value.
7.8(i) Supplemental plan investments. The governing body of an expanded list plan
7.9may certify assets to the State Board of Investment for investment under section 11A.17.
7.10(j) Asset mix limitations. The aggregate value of an expanded list plan's
7.11investments under paragraphs (g) and (h) and equity investments under paragraph (i),
7.12regardless of the form in which these investments are held, must not exceed 85 percent of
7.13the covered plan's market value.
7.14EFFECTIVE DATE.This section is effective the day following final enactment.

7.15    Sec. 4. Minnesota Statutes 2012, section 356A.06, subdivision 7a, is amended to read:
7.16    Subd. 7a. Restrictions. Any agreement to lend securities must be concurrently
7.17collateralized with cash or securities with a market value of not less than 100 percent of the
7.18market value of the loaned securities at the time of the agreement. For a covered pension
7.19authorized to purchase put and call options and futures contracts under subdivision 7, any
7.20agreement for put and call options and futures contracts may only be entered into with a
7.21fully offsetting amount of cash or securities. Only securities authorized by this section,
7.22excluding those under subdivision 7, paragraph (g) (h), clause (1), items (i) to (iv), may be
7.23accepted as collateral or offsetting securities.
7.24EFFECTIVE DATE.This section is effective the day following final enactment.

7.25    Sec. 5. Minnesota Statutes 2012, section 424A.015, is amended by adding a
7.26subdivision to read:
7.27    Subd. 6. Governing benefit plan provisions. A service pension or ancillary benefit
7.28payable under this chapter is governed by and must be calculated under the general statute,
7.29special law, relief association articles of incorporation, and relief association bylaw
7.30provisions applicable on the date on which the member separated from active service with
7.31the fire department and active membership in the relief association.
7.32EFFECTIVE DATE.This section is effective the day following final enactment.

8.1    Sec. 6. Minnesota Statutes 2012, section 424A.016, subdivision 4, is amended to read:
8.2    Subd. 4. Individual accounts. (a) An individual account must be established for
8.3each firefighter who is a member of the relief association.
8.4(b) To each individual active member account must be credited an equal share of:
8.5(1) any amounts of fire state aid received by the relief association;
8.6(2) any amounts of municipal contributions to the relief association raised from
8.7levies on real estate or from other available municipal revenue sources exclusive of fire
8.8state aid; and
8.9(3) any amounts equal to the share of the assets of the special fund to the credit of:
8.10(i) any former member who terminated active service with the fire department to
8.11which the relief association is associated before meeting the minimum service requirement
8.12provided for in subdivision 2, paragraph (b), and has not returned to active service with
8.13the fire department for a period no shorter than five years; or
8.14(ii) any retired member who retired before obtaining a full nonforfeitable interest in
8.15the amounts credited to the individual member account under subdivision 2, paragraph
8.16(b), and any applicable provision of the bylaws of the relief association. In addition, any
8.17investment return on the assets of the special fund must be credited in proportion to the
8.18share of the assets of the special fund to the credit of each individual active member
8.19account. Administrative expenses of the relief association payable from the special
8.20fund may be deducted from individual accounts in a manner specified in the bylaws of
8.21the relief association.
8.22(c) If the bylaws so permit and as the bylaws define, the relief association may credit
8.23any investment return on the assets of the special fund to the accounts of inactive members.
8.24(d) Amounts to be credited to individual accounts must be allocated uniformly
8.25for all years of active service and allocations must be made for all years of service,
8.26except for caps on service credit if so provided in the bylaws of the relief association.
8.27Amounts forfeited under paragraph (b), clause (3), before a resumption of active service
8.28and membership under section 424A.01, subdivision 6, remain forfeited and may not be
8.29reinstated upon the resumption of active service and membership. The allocation method
8.30may utilize monthly proration for fractional years of service, as the bylaws or articles of
8.31incorporation of the relief association so provide. The bylaws or articles of incorporation
8.32may define a "month," but the definition must require a calendar month to have at least 16
8.33days of active service. If the bylaws or articles of incorporation do not define a "month," a
8.34"month" is a completed calendar month of active service measured from the member's
8.35date of entry to the same date in the subsequent month.
9.1(e) At the time of retirement under subdivision 2 and any applicable provision of the
9.2bylaws of the relief association, a retiring member is entitled to that portion of the assets
9.3of the special fund to the credit of the member in the individual member account which is
9.4nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief
9.5association based on the number of years of service to the credit of the retiring member.
9.6(f) Annually, the secretary of the relief association shall certify the individual
9.7account allocations to the state auditor at the same time that the annual financial statement
9.8or financial report and audit of the relief association, whichever applies, is due under
9.9section 69.051.
9.10EFFECTIVE DATE.This section is effective the day following final enactment.

9.11    Sec. 7. Minnesota Statutes 2013 Supplement, section 424A.016, subdivision 6, is
9.12amended to read:
9.13    Subd. 6. Deferred service pensions. (a) A member of a relief association is entitled
9.14to a deferred service pension if the member separates from active service and membership
9.15and has completed the minimum service and membership requirements in subdivision 2.
9.16The requirement that a member separate from active service and membership is waived
9.17for persons who have discontinued their volunteer firefighter duties and who are employed
9.18on a full-time basis under section 424A.015, subdivision 1.
9.19    (b) The deferred service pension is payable when the former member reaches at
9.20least age 50, or at least the minimum age specified in the bylaws governing the relief
9.21association if that age is greater than age 50, and when the former member makes a valid
9.22written application.
9.23    (c) A defined contribution relief association may, if its governing bylaws so provide,
9.24credit interest or additional investment performance on the deferred lump-sum service
9.25pension during the period of deferral. If provided for in the bylaws, the interest must be
9.26paid:
9.27(1) at the investment performance rate actually earned on that portion of the assets
9.28if the deferred benefit amount is invested by the relief association in a separate account
9.29established and maintained by the relief association;
9.30(2) at the investment performance rate actually earned on that portion of the assets
9.31if the deferred benefit amount is invested in a separate investment vehicle held by the
9.32relief association; or
9.33(3) at the investment return on the assets of the special fund of the defined contribution
9.34volunteer firefighter relief association in proportion to the share of the assets of the special
10.1fund to the credit of each individual deferred member account through the accounting date
10.2on which the investment return is recognized by and credited to the special fund.
10.3    (d) Unless the bylaws of a relief association that has elected to pay interest or
10.4additional investment performance on deferred lump-sum service pensions under
10.5paragraph (c) specifies a different interest or additional investment performance method,
10.6including the interest or additional investment performance period starting date and ending
10.7date, the interest or additional investment performance on a deferred service pension
10.8is creditable as follows:
10.9(1) for a relief association that has elected to pay interest or additional investment
10.10performance under paragraph (c), clause (1) or (3), beginning on the date that the
10.11member separates from active service and membership and ending on the accounting
10.12date immediately before the deferred member commences receipt of the deferred service
10.13pension; or
10.14(2) for a relief association that has elected to pay interest or additional investment
10.15performance under paragraph (c), clause (2), beginning on the date that the member
10.16separates from active service and membership and ending on the date that the separate
10.17investment vehicle is valued immediately before the date on which the deferred member
10.18commences receipt of the deferred service pension.
10.19(e) The deferred service pension is governed by and must be calculated under
10.20the general statute, special law, relief association articles of incorporation, and relief
10.21association bylaw provisions applicable on the date on which the member separated from
10.22active service with the fire department and active membership in the relief association.
10.23EFFECTIVE DATE.This section is effective the day following final enactment.

10.24    Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 7, is amended to read:
10.25    Subd. 7. Limitation on ancillary benefits. (a) A defined contribution relief
10.26association may only pay an ancillary benefit which would constitute an authorized
10.27disbursement as specified in section 424A.05. The ancillary benefit for active members
10.28must equal the vested and nonvested amount of the individual account of the member.
10.29(b) For deferred members, the ancillary benefit must equal the vested amount of
10.30the individual account of the member. For the recipient of installment payments of a
10.31service pension, the ancillary benefit must equal the remaining balance in the individual
10.32account of the recipient.
10.33(c) If the bylaws permit and as defined by the bylaws, the relief association may pay
10.34an ancillary benefit to, or on behalf of, a member who is not active or deferred.
11.1(d)(1) If a survivor or death benefit is payable under the articles of incorporation or
11.2bylaws, the benefit must be paid:
11.3(i) as a survivor benefit to the surviving spouse of the deceased firefighter;
11.4(ii) as a survivor benefit to the surviving children of the deceased firefighter if no
11.5surviving spouse;
11.6(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
11.7surviving spouse or surviving children; or
11.8(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no
11.9surviving spouse, no surviving children, and no beneficiary designated.
11.10(2) If there are no surviving children, the surviving spouse may waive, in writing,
11.11wholly or partially, the spouse's entitlement to a survivor benefit.
11.12(d) (e) For purposes of this section, for a defined contribution volunteer fire relief
11.13association, a trust created under chapter 501B may be a designated beneficiary. If a trust
11.14payable to the surviving children organized under chapter 501B has been established as
11.15authorized by this section and there is no surviving spouse, the survivor benefit may be
11.16paid to the trust, notwithstanding the requirements of this section.
11.17EFFECTIVE DATE.This section is effective the day following final enactment.

11.18    Sec. 9. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 3, is
11.19amended to read:
11.20    Subd. 3. Flexible service pension maximums. (a) Annually on or before August
11.211 as part of the certification of the financial requirements and minimum municipal
11.22obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision
11.235 , as applicable, the secretary or some other official of the relief association designated
11.24in the bylaws of each defined benefit relief association shall calculate and certify to the
11.25governing body of the applicable qualified municipality the average amount of available
11.26financing per active covered firefighter for the most recent three-year period. The amount
11.27of available financing includes any amounts of fire state aid received or receivable by the
11.28relief association, any amounts of municipal contributions to the relief association raised
11.29from levies on real estate or from other available revenue sources exclusive of fire state
11.30aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief
11.31association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2
11.32and 4; or 424A.094, subdivision 2, if any.
11.33    (b) The maximum service pension which the defined benefit relief association has
11.34authority to provide for in its bylaws for payment to a member retiring after the calculation
12.1date when the minimum age and service requirements specified in subdivision 1 are met
12.2must be determined using the table in paragraph (c) or (d), whichever applies.
12.3    (c) For a defined benefit relief association where the governing bylaws provide for
12.4a monthly service pension to a retiring member, the maximum monthly service pension
12.5amount per month for each year of service credited that may be provided for in the bylaws
12.6is the greater of the service pension amount provided for in the bylaws on the date of the
12.7calculation of the average amount of the available financing per active covered firefighter
12.8or the maximum service pension figure corresponding to the average amount of available
12.9financing per active covered firefighter:
12.10
12.11
12.12
 Minimum Average Amount of Available
Financing per Firefighter
 Maximum Service Pension Amount
Payable per Month for Each
Year of Service
12.13
 $ ...
 $ .25
12.14
 41
 .50
12.15
 81
 1.00
12.16
 122
 1.50
12.17
 162
 2.00
12.18
 203
 2.50
12.19
 243
 3.00
12.20
 284
 3.50
12.21
 324
 4.00
12.22
 365
 4.50
12.23
 405
 5.00
12.24
 486
 6.00
12.25
 567
 7.00
12.26
 648
 8.00
12.27
 729
 9.00
12.28
 810
 10.00
12.29
 891
 11.00
12.30
 972
 12.00
12.31
 1053
 13.00
12.32
 1134
 14.00
12.33
 1215
 15.00
12.34
 1296
 16.00
12.35
 1377
 17.00
12.36
 1458
 18.00
12.37
 1539
 19.00
12.38
 1620
 20.00
12.39
 1701
 21.00
12.40
 1782
 22.00
12.41
 1823
 22.50
12.42
 1863
 23.00
13.1
 1944
 24.00
13.2
 2025
 25.00
13.3
 2106
 26.00
13.4
 2187
 27.00
13.5
 2268
 28.00
13.6
 2349
 29.00
13.7
 2430
 30.00
13.8
 2511
 31.00
13.9
 2592
 32.00
13.10
 2673
 33.00
13.11
 2754
 34.00
13.12
 2834
 35.00
13.13
 2916
 36.00
13.14
 2997
 37.00
13.15
 3078
 38.00
13.16
 3159
 39.00
13.17
 3240
 40.00
13.18
 3321
 41.00
13.19
 3402
 42.00
13.20
 3483
 43.00
13.21
 3564
 44.00
13.22
 3645
 45.00
13.23
 3726
 46.00
13.24
 3807
 47.00
13.25
 3888
 48.00
13.26
 3969
 49.00
13.27
 4050
 50.00
13.28
 4131
 51.00
13.29
 4212
 52.00
13.30
 4293
 53.00
13.31
 4374
 54.00
13.32
 4455
 55.00
13.33
 4536
 56.00
13.34
 Effective beginning December 31, 2008
13.35
 4617
 57.00
13.36
 4698
 58.00
13.37
 4779
 59.00
13.38
 4860
 60.00
13.39
 4941
 61.00
13.40
 5022
 62.00
13.41
 5103
 63.00
13.42
 5184
 64.00
13.43
 5265
 65.00
14.1
 Effective beginning December 31, 2009
14.2
 5346
 66.00
14.3
 5427
 67.00
14.4
 5508
 68.00
14.5
 5589
 69.00
14.6
 5670
 70.00
14.7
 5751
 71.00
14.8
 5832
 72.00
14.9
 5913
 73.00
14.10
 5994
 74.00
14.11
 Effective beginning December 31, 2010
14.12
 6075
 75.00
14.13
 6156
 76.00
14.14
 6237
 77.00
14.15
 6318
 78.00
14.16
 6399
 79.00
14.17
 6480
 80.00
14.18
 6561
 81.00
14.19
 6642
 82.00
14.20
 6723
 83.00
14.21
 Effective beginning December 31, 2011
14.22
 6804
 84.00
14.23
 6885
 85.00
14.24
 6966
 86.00
14.25
 7047
 87.00
14.26
 7128
 88.00
14.27
 7209
 89.00
14.28
 7290
 90.00
14.29
 7371
 91.00
14.30
 7452
 92.00
14.31
 Effective beginning December 31, 2012
14.32
 7533
 93.00
14.33
 7614
 94.00
14.34
 7695
 95.00
14.35
 7776
 96.00
14.36
 7857
 97.00
14.37
 7938
 98.00
14.38
 8019
 99.00
14.39
 8100
 100.00
14.40
 any amount in excess of
14.41
 8100
 100.00
14.42    (d) For a defined benefit relief association in which the governing bylaws provide
14.43for a lump-sum service pension to a retiring member, the maximum lump-sum service
15.1pension amount for each year of service credited that may be provided for in the bylaws is
15.2the greater of the service pension amount provided for in the bylaws on the date of the
15.3calculation of the average amount of the available financing per active covered firefighter
15.4or the maximum service pension figure corresponding to the average amount of available
15.5financing per active covered firefighter for the applicable specified period:
15.6
15.7
15.8
 Minimum Average Amount of Available
Financing per Firefighter
 Maximum Lump-Sum Service
Pension Amount Payable for
Each Year of Service
15.9
 $ ...
 $ 10
15.10
 11
 20
15.11
 16
 30
15.12
 23
 40
15.13
 27
 50
15.14
 32
 60
15.15
 43
 80
15.16
 54
 100
15.17
 65
 120
15.18
 77
 140
15.19
 86
 160
15.20
 97
 180
15.21
 108
 200
15.22
 131
 240
15.23
 151
 280
15.24
 173
 320
15.25
 194
 360
15.26
 216
 400
15.27
 239
 440
15.28
 259
 480
15.29
 281
 520
15.30
 302
 560
15.31
 324
 600
15.32
 347
 640
15.33
 367
 680
15.34
 389
 720
15.35
 410
 760
15.36
 432
 800
15.37
 486
 900
15.38
 540
 1000
15.39
 594
 1100
15.40
 648
 1200
15.41
 702
 1300
15.42
 756
 1400
15.43
 810
 1500
16.1
 864
 1600
16.2
 918
 1700
16.3
 972
 1800
16.4
 1026
 1900
16.5
 1080
 2000
16.6
 1134
 2100
16.7
 1188
 2200
16.8
 1242
 2300
16.9
 1296
 2400
16.10
 1350
 2500
16.11
 1404
 2600
16.12
 1458
 2700
16.13
 1512
 2800
16.14
 1566
 2900
16.15
 1620
 3000
16.16
 1672
 3100
16.17
 1726
 3200
16.18
 1753
 3250
16.19
 1780
 3300
16.20
 1820
 3375
16.21
 1834
 3400
16.22
 1888
 3500
16.23
 1942
 3600
16.24
 1996
 3700
16.25
 2023
 3750
16.26
 2050
 3800
16.27
 2104
 3900
16.28
 2158
 4000
16.29
 2212
 4100
16.30
 2265
 4200
16.31
 2319
 4300
16.32
 2373
 4400
16.33
 2427
 4500
16.34
 2481
 4600
16.35
 2535
 4700
16.36
 2589
 4800
16.37
 2643
 4900
16.38
 2697
 5000
16.39
 2751
 5100
16.40
 2805
 5200
16.41
 2859
 5300
16.42
 2913
 5400
16.43
 2967
 5500
17.1
 3021
 5600
17.2
 3075
 5700
17.3
 3129
 5800
17.4
 3183
 5900
17.5
 3237
 6000
17.6
 3291
 6100
17.7
 3345
 6200
17.8
 3399
 6300
17.9
 3453
 6400
17.10
 3507
 6500
17.11
 3561
 6600
17.12
 3615
 6700
17.13
 3669
 6800
17.14
 3723
 6900
17.15
 3777
 7000
17.16
 3831
 7100
17.17
 3885
 7200
17.18
 3939
 7300
17.19
 3993
 7400
17.20
 4047
 7500
17.21
 Effective beginning December 31, 2008
17.22
 4101
 7600
17.23
 4155
 7700
17.24
 4209
 7800
17.25
 4263
 7900
17.26
 4317
 8000
17.27
 4371
 8100
17.28
 4425
 8200
17.29
 4479
 8300
17.30
 Effective beginning December 31, 2009
17.31
 4533
 8400
17.32
 4587
 8500
17.33
 4641
 8600
17.34
 4695
 8700
17.35
 4749
 8800
17.36
 4803
 8900
17.37
 4857
 9000
17.38
 4911
 9100
17.39
 Effective beginning December 31, 2010
17.40
 4965
 9200
17.41
 5019
 9300
17.42
 5073
 9400
17.43
 5127
 9500
18.1
 5181
 9600
18.2
 5235
 9700
18.3
 5289
 9800
18.4
 5343
 9900
18.5
 5397
 10,000
18.6
 any amount in excess of
18.7
 5397
 10,000
18.8    (e) For a defined benefit relief association in which the governing bylaws provide
18.9for a monthly benefit service pension as an alternative form of service pension payment
18.10to a lump-sum service pension, the maximum service pension amount for each pension
18.11payment type must be determined using the applicable table contained in this subdivision.
18.12    (f) If a defined benefit relief association establishes a service pension in compliance
18.13with the applicable maximum contained in paragraph (c) or (d) and the minimum average
18.14amount of available financing per active covered firefighter is subsequently reduced
18.15because of a reduction in fire state aid or because of an increase in the number of active
18.16firefighters, the relief association may continue to provide the prior service pension
18.17amount specified in its bylaws, but may not increase the service pension amount until
18.18the minimum average amount of available financing per firefighter under the table in
18.19paragraph (c) or (d), whichever applies, permits.
18.20    (g) No defined benefit relief association is authorized to provide a service pension in
18.21an amount greater than the largest applicable flexible service pension maximum amount
18.22even if the amount of available financing per firefighter is greater than the financing
18.23amount associated with the largest applicable flexible service pension maximum.
18.24(h) The method of calculating service pensions must be applied uniformly for all
18.25years of active service. Credit must be given for all years of active service except for caps
18.26on service credit if so provided in the bylaws of the relief association.
18.27EFFECTIVE DATE.This section is effective the day following final enactment.

18.28    Sec. 10. Minnesota Statutes 2013 Supplement, section 424A.02, subdivision 7, is
18.29amended to read:
18.30    Subd. 7. Deferred service pensions. (a) A member of a defined benefit relief
18.31association is entitled to a deferred service pension if the member separates from active
18.32service and membership and has completed the minimum service and membership
18.33requirements in subdivision 1. The requirement that a member separate from active service
18.34and membership is waived for persons who have discontinued their volunteer firefighter
18.35duties and who are employed on a full-time basis under section 424A.015, subdivision 1.
19.1    (b) The deferred service pension is payable when the former member reaches at
19.2least age 50, or at least the minimum age specified in the bylaws governing the relief
19.3association if that age is greater than age 50, and when the former member makes a valid
19.4written application.
19.5    (c) A defined benefit relief association that provides a lump-sum service pension
19.6governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
19.7deferred lump-sum service pension during the period of deferral. If provided for in the
19.8bylaws, interest must be paid in one of the following manners:
19.9    (1) at the investment performance rate actually earned on that portion of the assets
19.10if the deferred benefit amount is invested by the relief association in a separate account
19.11established and maintained by the relief association;
19.12(2) at the investment performance rate actually earned on that portion of the assets
19.13if the deferred benefit amount is invested in a separate investment vehicle held by the
19.14relief association; or
19.15    (3) at an interest rate of up to five percent, compounded annually, as set by the
19.16board of trustees.
19.17(d) Any change in the interest rate set by the board of directors trustees under
19.18paragraph (c), clause (3), must be ratified by the governing body of the municipality
19.19served by the fire department to which the relief association is directly associated, or by
19.20the independent nonprofit firefighting corporation, as applicable.
19.21    (e) Interest under paragraph (c), clause (3), is payable beginning on the January 1
19.22next following the date on which the deferred service pension interest rate as set by the
19.23board of trustees was ratified by the governing body of the municipality served by the fire
19.24department to which the relief association is directly associated, or by the independent
19.25nonprofit firefighting corporation, as applicable.
19.26    (f) Unless the bylaws of a relief association that has elected to pay interest or
19.27additional investment performance on deferred lump-sum service pensions under
19.28paragraph (c) specifies a different interest or additional investment performance method,
19.29including the interest or additional investment performance period starting date and ending
19.30date, the interest or additional investment performance on a deferred service pension
19.31is creditable as follows:
19.32(1) for a relief association that has elected to pay interest or additional investment
19.33performance under paragraph (c), clause (1) or (3), beginning on the first day of the
19.34month next following the date on which the member separates from active service and
19.35membership and ending on the last day of the month immediately before the month in
19.36which the deferred member commences receipt of the deferred service pension; or
20.1(2) for a relief association that has elected to pay interest or additional investment
20.2performance under paragraph (c), clause (2), beginning on the date that the member
20.3separates from active service and membership and ending on the date that the separate
20.4investment vehicle is valued immediately before the date on which the deferred member
20.5commences receipt of the deferred service pension.
20.6(g) For a deferred service pension that is transferred to a separate account established
20.7and maintained by the relief association or separate investment vehicle held by the relief
20.8association, the deferred member bears the full investment risk subsequent to transfer and
20.9in calculating the accrued liability of the volunteer firefighters relief association that pays
20.10a lump-sum service pension, the accrued liability for deferred service pensions is equal
20.11to the separate relief association account balance or the fair market value of the separate
20.12investment vehicle held by the relief association.
20.13    (h) The deferred service pension is governed by and must be calculated under
20.14the general statute, special law, relief association articles of incorporation, and relief
20.15association bylaw provisions applicable on the date on which the member separated from
20.16active service with the fire department and active membership in the relief association.
20.17EFFECTIVE DATE.This section is effective the day following final enactment.

20.18    Sec. 11. Minnesota Statutes 2012, section 424A.08, is amended to read:
20.19424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION;
20.20AUTHORIZED DISBURSEMENTS.
20.21(a) Any qualified municipality which is entitled to receive fire state aid but which
20.22has no volunteer firefighters' relief association directly associated with its fire department
20.23and which has no full-time firefighters with retirement coverage by the public employees
20.24police and fire retirement plan shall deposit the fire state aid in a special account
20.25established for that purpose in the municipal treasury. Disbursement from the special
20.26account may not be made for any purpose except:
20.27(1) payment of the fees, dues and assessments to the Minnesota State Fire
20.28Department Association and to the state Volunteer Firefighters' Benefit Association in
20.29order to entitle its firefighters to membership in and the benefits of these state associations;
20.30(2) payment of the cost of purchasing and maintaining needed equipment for the
20.31fire department; and
20.32(3) payment of the cost of construction, acquisition, repair, or maintenance of
20.33buildings or other premises to house the equipment of the fire department.
21.1(b) A qualified municipality which is entitled to receive fire state aid, which has no
21.2volunteer firefighters' relief association directly associated with its fire department, which
21.3does not participate in the voluntary statewide lump-sum volunteer firefighter retirement
21.4plan under chapter 353G, and which has full-time firefighters with retirement coverage
21.5by the public employees police and fire retirement plan may disburse the fire state aid as
21.6provided in paragraph (a), for the payment of the employer contribution requirement with
21.7respect to firefighters covered by the public employees police and fire retirement plan under
21.8section 353.65, subdivision 3, or for a combination of the two types of disbursements.
21.9(c) A municipality that has no volunteer firefighters' relief association directly
21.10associated with it and that participates in the voluntary statewide lump-sum volunteer
21.11firefighter retirement plan under chapter 353G shall transmit any fire state aid that it
21.12receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.
21.13EFFECTIVE DATE.This section is effective the day following final enactment.

21.14    Sec. 12. Minnesota Statutes 2013 Supplement, section 424A.092, subdivision 6,
21.15is amended to read:
21.16    Subd. 6. Municipal ratification for plan amendments. If the special fund of
21.17the relief association does not have a surplus over full funding under subdivision 3,
21.18paragraph (c), clause (5), and if the municipality is required to provide financial support
21.19to the special fund of the relief association under this section, the adoption of or any
21.20amendment to the articles of incorporation or bylaws of a relief association which
21.21increases or otherwise affects the retirement coverage provided by or the service pensions
21.22or retirement benefits payable from the special fund of any relief association to which this
21.23section applies is not effective until it is ratified by the governing body of the municipality
21.24in which the relief association is located served by the fire department to which the
21.25relief association is directly associated or by the independent nonprofit firefighting
21.26corporation, as applicable, and the officers of a relief association shall not seek municipal
21.27ratification prior to preparing and certifying an estimate of the expected increase in the
21.28accrued liability and annual accruing liability of the relief association attributable to the
21.29amendment. If the special fund of the relief association has a surplus over full funding
21.30under subdivision 3, paragraph (c), clause (5), and if the municipality is not required to
21.31provide financial support to the special fund of the relief association under this section,
21.32the relief association may adopt or amend its articles of incorporation or bylaws which
21.33increase or otherwise affect the retirement coverage provided by or the service pensions
21.34or retirement benefits payable from the special fund of the relief association which are
21.35effective without municipal ratification so long as this does not cause the amount of the
22.1resulting increase in the accrued liability of the special fund of the relief association to
22.2exceed 90 percent of the amount of the surplus over full funding reported in the prior year
22.3and this does not result in the financial requirements of the special fund of the relief
22.4association exceeding the expected amount of the future fire state aid to be received by
22.5the relief association as determined by the board of trustees following the preparation
22.6of an estimate of the expected increase in the accrued liability and annual accruing
22.7liability of the relief association attributable to the change. If a relief association adopts or
22.8amends its articles of incorporation or bylaws without municipal ratification under this
22.9subdivision, and, subsequent to the amendment or adoption, the financial requirements
22.10of the special fund of the relief association under this section are such so as to require
22.11financial support from the municipality, the provision which was implemented without
22.12municipal ratification is no longer effective without municipal ratification and any service
22.13pensions or retirement benefits payable after that date may be paid only in accordance with
22.14the articles of incorporation or bylaws as amended or adopted with municipal ratification.
22.15EFFECTIVE DATE.This section is effective the day following final enactment.

22.16    Sec. 13. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 2,
22.17is amended to read:
22.18    Subd. 2. Determination of actuarial condition and funding costs. A relief
22.19association to which this section applies shall obtain an actuarial valuation showing the
22.20condition of the special fund of the relief association as of December 31, 1978, and at
22.21least as of December 31 every four years thereafter. The valuation shall be prepared in
22.22accordance with the provisions of sections 356.215, subdivision 8, and 356.216 and any
22.23applicable standards for actuarial work established by the Legislative Commission on
22.24Pensions and Retirement, except that the figure for normal cost shall be expressed as a
22.25level dollar amount, and the amortization contribution shall be the level dollar amount
22.26calculated to amortize any current unfunded accrued liability by at least the date of full
22.27funding specified in subdivision 4, clause (b). Each valuation shall be filed with the
22.28governing body of the municipality in which the relief association is located served by the
22.29fire department to which the relief association is directly associated or by the independent
22.30nonprofit firefighting corporation, as applicable, and with the state auditor, not later than
22.31July 1 of the year next following the date as of which the actuarial valuation is prepared.
22.32Any relief association which is operating under a special law which requires that actuarial
22.33valuations be obtained at least every four years and be prepared in accordance with
22.34applicable actuarial standards set forth in statute may continue to have actuarial valuations
23.1made according to the time schedule set forth in the special legislation subject to the
23.2provisions of subdivision 3.
23.3EFFECTIVE DATE.This section is effective the day following final enactment.

23.4    Sec. 14. Minnesota Statutes 2013 Supplement, section 424A.093, subdivision 6,
23.5is amended to read:
23.6    Subd. 6. Municipal ratification for plan amendments. If the special fund of the
23.7relief association does not have a surplus over full funding under subdivision 4, and
23.8if the municipality is required to provide financial support to the special fund of the
23.9relief association under this section, the adoption of or any amendment to the articles of
23.10incorporation or bylaws of a relief association which increases or otherwise affects the
23.11retirement coverage provided by or the service pensions or retirement benefits payable
23.12from the special fund of any relief association to which this section applies is not effective
23.13until it is ratified by the governing body of the municipality in which the relief association
23.14is located served by the fire department to which the relief association is directly associated
23.15or by the independent nonprofit firefighting corporation, as applicable. If the special
23.16fund of the relief association has a surplus over full funding under subdivision 4, and if
23.17the municipality is not required to provide financial support to the special fund of the
23.18relief association under this section, the relief association may adopt or amend its articles
23.19of incorporation or bylaws which increase or otherwise affect the retirement coverage
23.20provided by or the service pensions or retirement benefits payable from the special fund
23.21of the relief association which are effective without municipal ratification so long as this
23.22does not cause the amount of the resulting increase in the accrued liability of the special
23.23fund of the relief association to exceed 90 percent of the amount of the surplus over full
23.24funding reported in the prior year and this does not result in the financial requirements of
23.25the special fund of the relief association exceeding the expected amount of the future fire
23.26state aid to be received by the relief association as determined by the board of trustees
23.27following the preparation of an updated actuarial valuation including the proposed change
23.28or an estimate of the expected actuarial impact of the proposed change prepared by the
23.29actuary of the relief association. If a relief association adopts or amends its articles of
23.30incorporation or bylaws without municipal ratification pursuant to this subdivision, and,
23.31subsequent to the amendment or adoption, the financial requirements of the special fund
23.32of the relief association under this section are such so as to require financial support from
23.33the municipality, the provision which was implemented without municipal ratification is
23.34no longer effective without municipal ratification and any service pensions or retirement
24.1benefits payable after that date may be paid only in accordance with the articles of
24.2incorporation or bylaws as amended or adopted with municipal ratification.
24.3EFFECTIVE DATE.This section is effective the day following final enactment.

24.4    Sec. 15. Minnesota Statutes 2013 Supplement, section 424A.094, subdivision 2,
24.5is amended to read:
24.6    Subd. 2. Determination of actuarial condition and funding costs. Each
24.7independent nonprofit firefighting corporation to which this section applies shall determine
24.8the actuarial condition and the funding costs of the subsidiary relief association using
24.9the following procedure:
24.10(1) An independent nonprofit firefighting corporation which has a subsidiary relief
24.11association which pays a monthly benefit service pension shall procure an actuarial
24.12valuation of the special fund of the subsidiary relief association at the same times and
24.13in the same manner as specified in section 424A.093, subdivisions 2 and 3, and an
24.14independent nonprofit firefighting corporation which has a subsidiary relief association
24.15which pays a lump-sum service pension shall determine the accrued liability of the special
24.16fund of the relief association in accordance with section 424A.092, subdivision 2.
24.17(2) The financial requirements of the special fund of the subsidiary relief association
24.18which pays a monthly benefit service pension shall be determined in the same manner
24.19as specified in section 424A.093, subdivision 4, and the financial requirements of the
24.20special fund of the subsidiary relief association shall be determined in the same manner as
24.21specified in section 424A.092, subdivision 3.
24.22(3) The minimum obligation of the independent nonprofit firefighting corporation on
24.23behalf of the special fund of the subsidiary relief association shall be determined in the
24.24same manner as specified in section 424A.092, subdivision 4, or 424A.093, subdivision 5,
24.25as applicable.
24.26(4) The independent nonprofit firefighting corporation shall appropriate annually
24.27from the income of the corporation an amount at least equal to the minimum obligation
24.28of the independent nonprofit firefighting corporation on behalf of the special fund of
24.29the subsidiary relief association.
24.30EFFECTIVE DATE.This section is effective the day following final enactment.

24.31    Sec. 16. Minnesota Statutes 2013 Supplement, section 424A.10, subdivision 2, is
24.32amended to read:
25.1    Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a volunteer
25.2firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
25.3retirement plan of a lump-sum distribution to a qualified recipient, the association must
25.4pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
25.5contrary, the relief association must pay the supplemental benefit out of its special fund
25.6and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
25.7the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
25.8retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
25.9distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
25.10In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
25.11benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
25.12volunteer firefighter in that capacity.
25.13    (b) Upon the payment by a relief association or the retirement plan of a lump-sum
25.14survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
25.15deferred volunteer firefighter, the association must pay a supplemental survivor benefit to
25.16the survivor of the deceased active or deferred volunteer firefighter from the special fund
25.17of the relief association and the retirement plan must pay a supplemental survivor benefit
25.18to the survivor of the deceased active or deferred volunteer firefighter from the retirement
25.19fund if chapter 353G so provides. The amount of the supplemental survivor benefit is 20
25.20percent of the survivor benefit, but not to exceed $2,000.
25.21    (c) For purposes of this section, the term "regular lump-sum distribution" means the
25.22pretax lump-sum distribution excluding any interest that may have been credited during a
25.23volunteer firefighter's period of deferral.
25.24    (d) An individual may receive a supplemental benefit under paragraph (a) or under
25.25paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
25.26firefighter benefit.
25.27EFFECTIVE DATE.This section is effective the day following final enactment.

25.28    Sec. 17. Minnesota Statutes 2012, section 424B.12, is amended to read:
25.29424B.12 MIXED CONSOLIDATING RELIEF ASSOCIATIONS; BENEFIT
25.30PLAN; FUNDING.
25.31    Subdivision 1. Applicability. This section applies where one or more of the
25.32volunteer firefighters' relief associations involved in the consolidation are defined benefit
25.33relief associations as defined in section 424A.001, subdivision 1b, and one or more of
26.1the volunteer firefighters' relief associations involved in the consolidation are defined
26.2contribution relief associations as defined in section 424A.001, subdivision 1c.
26.3    Subd. 2. Benefit plan. The articles of incorporation or bylaws of the successor
26.4relief association must specify whether the relief association is a defined benefit relief
26.5association or whether the relief association is a defined contribution relief association. If
26.6the successor relief association is a defined benefit relief association, the relief association
26.7benefits must comply with sections 424A.02 and 424B.11, subdivision 1a 424B.10. If
26.8the successor relief association is a defined contribution relief association, the relief
26.9association must comply with sections 424A.016 and 424B.12 424B.11, subdivision 2.
26.10    Subd. 3. Funding. If the successor relief association is a defined benefit relief
26.11association, the relief association funding is governed by section 424B.11 424B.10,
26.12subdivision 2. If the successor relief association is a defined contribution relief association,
26.13the relief association funding is governed by section 424B.12 424B.11, subdivision 3.
26.14EFFECTIVE DATE.This section is effective the day following final enactment.