Bill Text: MN HF3323 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Lino Lakes, Circle Pines, and Centerville; Centennial Volunteer Firefighters Relief Association; Centennial Fire Department division into a residual relief association and the Lino Lakes Volunteer Firefighters Relief Association.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-03-31 - Introduction and first reading, referred to Government Operations [HF3323 Detail]
Download: Minnesota-2013-HF3323-Introduced.html
1.2relating to retirement; volunteer firefighters relief associations and the cities
1.3of Lino Lakes, Circle Pines, and Centerville; providing for the division of
1.4the Centennial Volunteer Firefighters Relief Association into a residual relief
1.5association and the Lino Lakes Volunteer Firefighters Relief Association.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. DIVISION OF CENTENNIAL VOLUNTEER FIREFIGHTERS
1.8RELIEF ASSOCIATION AUTHORIZED.
1.9Notwithstanding any provision of Minnesota Statutes, chapter 424A, or sections
1.10424B.20 and 424B.21, to the contrary, if the city of Lino Lakes withdraws from the joint
1.11powers agreement establishing the Centennial Fire Department, if the city of Lino Lakes
1.12establishes a city fire department, if a Lino Lakes Volunteer Firefighters Relief Association
1.13is established, and if the Lino Lakes Volunteer Firefighters Relief Association includes
1.14in its membership one or more former members of the Centennial Volunteer Firefighters
1.15Relief Association, then the Centennial Volunteer Firefighters Relief Association shall
1.16transfer a proportional share of the accrued liabilities of the relief association, the service
1.17credit of any transferring firefighters in the relief association, and a proportional share of the
1.18special fund assets and general fund assets of the relief association as provided in section 2.
1.19 Sec. 2. LIABILITY, SERVICE CREDIT, AND ASSET ALLOCATION
1.20PROCEDURE.
1.21(a) The allocation of the accrued liability between the remnant Centennial Volunteer
1.22Firefighters Relief Association and the new Lino Lakes Volunteer Firefighters Relief
1.23Association must utilize the following procedure:
2.1(1) the active service credit of all active members of the relief association as of the
2.2end of the month preceding the date on which the last of the conditions set forth in section
2.31 are met must be determined and expressed in full years for full years completed and as a
2.4percentage of a full year for full months less than a full year;
2.5(2) using the results determined under clause (1) and the accrued liability table set
2.6forth in Minnesota Statutes, section 424A.092, subdivision 2, adjusted for the service
2.7pension amount per year of service credit in force as of the calculation date, the total dollar
2.8value of the accrued liability for active members must be determined;
2.9(3) the amount of the service pension payable to any former relief association
2.10members who have sufficient service credit to be entitled to receive a service pension
2.11upon attaining age 50, plus any interest on the deferred service pension amount payable
2.12until age 50 under Minnesota Statutes, section 424A.02, subdivision 7, and the relief
2.13association bylaws must be determined;
2.14(4) the amounts determined under clauses (2) and (3) must be totaled;
2.15(5) a subtotal of the amount determined under clause (2) for those active firefighters
2.16transferring from the Centennial Volunteer Firefighters Relief Association to the Lino
2.17Lakes Volunteer Firefighters Relief Association must be determined;
2.18(6) the amount determined under clause (5) must be divided by the amount
2.19determined under clause (4) and the result expressed as a percentage; and
2.20(7) the percentage determined under clause (6) must be applied to the next regular
2.21determination of the accrued liability of the Centennial Volunteer Firefighters Relief
2.22Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared after
2.23the effective date of this section, with the resulting accrued liability portion deducted
2.24from the accrued liability of the Centennial Volunteer Firefighters Relief Association and
2.25transferred to the Lino Lakes Volunteer Firefighters Relief Association.
2.26(b) The allocation of the special fund assets of the Centennial Volunteer Firefighters
2.27Relief Association between the remnant relief association and the new Lino Lakes
2.28Volunteer Firefighters Relief Association must be determined by applying the percentage
2.29determined under paragraph (a), clause (6), to the market value of the assets of the
2.30Centennial Volunteer Firefighters Relief Association as of the date on which the next
2.31regular determination of the accrued liability of the Centennial Volunteer Firefighters
2.32Relief Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared
2.33after the effective date of this section under paragraph (a), clause (7), the result of which
2.34is the Lino Lakes Volunteer Firefighters Relief Association share and the balance is the
2.35remnant Centennial Volunteer Firefighters Relief Association share. The transfer of legal
2.36and beneficial titles to the special fund assets to be transferred must occur as soon as is
3.1practicable after the asset transfer amount determination date, with legal title to be held
3.2by the Lino Lakes Volunteer Firefighters Relief Association, as a Minnesota nonprofit
3.3corporation, and with beneficial title to be held by the active membership of the Lino
3.4Lakes Volunteer Firefighters Relief Association. The transferred special assets must, to
3.5the extent practicable, replicate the portfolio composition of investment securities based
3.6on the market value of the assets of the last business day on which market values of a
3.7preponderance of the assets are available. If there are any investment securities without a
3.8market value on that date, that asset must continue to be held by the Centennial Volunteer
3.9Firefighters Relief Association in trust for itself and the Lino Lakes Volunteer Firefighters
3.10Relief Association until the asset can be liquidated for the carrying value of the asset on
3.11the first of the month preceding the effective date of this section.
3.12(c) The transfer of special fund assets from the Centennial Volunteer Firefighters
3.13Relief Association to the Lino Lakes Volunteer Firefighters Relief Association constitutes
3.14an authorized disbursement from the special fund of the Centennial Volunteer Firefighters
3.15Relief Association for purposes of Minnesota Statutes, section 424A.05, subdivision 3.
3.16(d) General fund assets of the Centennial Volunteer Firefighters Relief Association
3.17must be allocated between the remnant Centennial Volunteer Firefighters Relief
3.18Association and the Lino Lakes Volunteer Firefighters Relief Association in the proportions
3.19and in the manner established by the Centennial Volunteer Firefighters Relief Association.
3.20(e) The service credit of the active firefighters who transfer to the Lino Lakes
3.21Fire Department as of the date on which the next regular determination of the accrued
3.22liability of the Centennial Volunteer Firefighters Relief Association under Minnesota
3.23Statutes, sections 424A.091 and 424A.092, prepared after the effective date of this section
3.24under paragraph (a), clause (7), transfers to the Lino Lakes Volunteer Firefighters Relief
3.25Association on the date of the accrued liability and asset transfers. Upon the service
3.26credit transfer, the remnant Centennial Volunteer Firefighters Relief Association has no
3.27further liability for service pensions or ancillary benefits with respect to the firefighters
3.28transferring to the Lino Lakes Fire Department.
3.29(f) The remnant Centennial Volunteer Firefighters Relief Association and the new
3.30Lino Lakes Volunteer Firefighters Relief Association are jointly, for a period of six years
3.31after the transfer of special fund assets, successors in interest to all claims that the prior
3.32Centennial Volunteer Firefighters Relief Association may have or may assert against any
3.33person and are the successors in interest that could have been against the Centennial
3.34Volunteer Firefighters Relief Association. After six years, the Lino Lakes Volunteer
3.35Firefighters Relief Association is no longer a successor in interest to claims against the
3.36Centennial Volunteer Firefighters Relief Association.
4.1(g) The office of the state auditor shall audit the asset transfer under this section,
4.2with the cost of that audit payable by the two relief associations in proportion to their
4.3post-transfer assets.
4.4 Sec. 3. LINO LAKES VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION
4.5SERVICE CREDIT CONTINUATION.
4.6(a) Notwithstanding any provision of Minnesota Statutes, chapter 424A, to the
4.7contrary, this section governs the service credit, vesting, service pension calculation, and
4.8ancillary benefit calculation of the Lino Lakes Volunteer Firefighters Relief Association if
4.9sections 1 and 2 become effective upon the occurrence of the local approvals in section 4.
4.10(b) A firefighter who transfers employment from the Centennial Fire Department to
4.11the Lino Lakes Fire Department upon the creation of the Lino Lakes Fire Department:
4.12(1) retains any full and partial years of service credited by the Centennial Volunteer
4.13Firefighters Relief Association as of the date of the employment transfer, which must be
4.14credited to the firefighter by the Lino Lakes Volunteer Firefighters Relief Association;
4.15(2) retains any vesting acquired as of the date of employment transfer; and
4.16(3) is eligible to have subsequent Lino Lakes Fire Department firefighting service
4.17recognized as a continuation of firefighting service for additional vesting eligibility.
4.18 Sec. 4. EFFECTIVE DATE; LOCAL APPROVAL.
4.19Sections 1 and 2 are effective the day after the latest date on which the governing
4.20bodies and the chief clerical officers of the cities of Centerville, Circle Pines, and Lino
4.21Lakes timely complete their compliance with Minnesota Statutes, section 645.021,
4.22subdivisions 2 and 3.
1.3of Lino Lakes, Circle Pines, and Centerville; providing for the division of
1.4the Centennial Volunteer Firefighters Relief Association into a residual relief
1.5association and the Lino Lakes Volunteer Firefighters Relief Association.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. DIVISION OF CENTENNIAL VOLUNTEER FIREFIGHTERS
1.8RELIEF ASSOCIATION AUTHORIZED.
1.9Notwithstanding any provision of Minnesota Statutes, chapter 424A, or sections
1.10424B.20 and 424B.21, to the contrary, if the city of Lino Lakes withdraws from the joint
1.11powers agreement establishing the Centennial Fire Department, if the city of Lino Lakes
1.12establishes a city fire department, if a Lino Lakes Volunteer Firefighters Relief Association
1.13is established, and if the Lino Lakes Volunteer Firefighters Relief Association includes
1.14in its membership one or more former members of the Centennial Volunteer Firefighters
1.15Relief Association, then the Centennial Volunteer Firefighters Relief Association shall
1.16transfer a proportional share of the accrued liabilities of the relief association, the service
1.17credit of any transferring firefighters in the relief association, and a proportional share of the
1.18special fund assets and general fund assets of the relief association as provided in section 2.
1.19 Sec. 2. LIABILITY, SERVICE CREDIT, AND ASSET ALLOCATION
1.20PROCEDURE.
1.21(a) The allocation of the accrued liability between the remnant Centennial Volunteer
1.22Firefighters Relief Association and the new Lino Lakes Volunteer Firefighters Relief
1.23Association must utilize the following procedure:
2.1(1) the active service credit of all active members of the relief association as of the
2.2end of the month preceding the date on which the last of the conditions set forth in section
2.31 are met must be determined and expressed in full years for full years completed and as a
2.4percentage of a full year for full months less than a full year;
2.5(2) using the results determined under clause (1) and the accrued liability table set
2.6forth in Minnesota Statutes, section 424A.092, subdivision 2, adjusted for the service
2.7pension amount per year of service credit in force as of the calculation date, the total dollar
2.8value of the accrued liability for active members must be determined;
2.9(3) the amount of the service pension payable to any former relief association
2.10members who have sufficient service credit to be entitled to receive a service pension
2.11upon attaining age 50, plus any interest on the deferred service pension amount payable
2.12until age 50 under Minnesota Statutes, section 424A.02, subdivision 7, and the relief
2.13association bylaws must be determined;
2.14(4) the amounts determined under clauses (2) and (3) must be totaled;
2.15(5) a subtotal of the amount determined under clause (2) for those active firefighters
2.16transferring from the Centennial Volunteer Firefighters Relief Association to the Lino
2.17Lakes Volunteer Firefighters Relief Association must be determined;
2.18(6) the amount determined under clause (5) must be divided by the amount
2.19determined under clause (4) and the result expressed as a percentage; and
2.20(7) the percentage determined under clause (6) must be applied to the next regular
2.21determination of the accrued liability of the Centennial Volunteer Firefighters Relief
2.22Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared after
2.23the effective date of this section, with the resulting accrued liability portion deducted
2.24from the accrued liability of the Centennial Volunteer Firefighters Relief Association and
2.25transferred to the Lino Lakes Volunteer Firefighters Relief Association.
2.26(b) The allocation of the special fund assets of the Centennial Volunteer Firefighters
2.27Relief Association between the remnant relief association and the new Lino Lakes
2.28Volunteer Firefighters Relief Association must be determined by applying the percentage
2.29determined under paragraph (a), clause (6), to the market value of the assets of the
2.30Centennial Volunteer Firefighters Relief Association as of the date on which the next
2.31regular determination of the accrued liability of the Centennial Volunteer Firefighters
2.32Relief Association under Minnesota Statutes, sections 424A.091 and 424A.092, prepared
2.33after the effective date of this section under paragraph (a), clause (7), the result of which
2.34is the Lino Lakes Volunteer Firefighters Relief Association share and the balance is the
2.35remnant Centennial Volunteer Firefighters Relief Association share. The transfer of legal
2.36and beneficial titles to the special fund assets to be transferred must occur as soon as is
3.1practicable after the asset transfer amount determination date, with legal title to be held
3.2by the Lino Lakes Volunteer Firefighters Relief Association, as a Minnesota nonprofit
3.3corporation, and with beneficial title to be held by the active membership of the Lino
3.4Lakes Volunteer Firefighters Relief Association. The transferred special assets must, to
3.5the extent practicable, replicate the portfolio composition of investment securities based
3.6on the market value of the assets of the last business day on which market values of a
3.7preponderance of the assets are available. If there are any investment securities without a
3.8market value on that date, that asset must continue to be held by the Centennial Volunteer
3.9Firefighters Relief Association in trust for itself and the Lino Lakes Volunteer Firefighters
3.10Relief Association until the asset can be liquidated for the carrying value of the asset on
3.11the first of the month preceding the effective date of this section.
3.12(c) The transfer of special fund assets from the Centennial Volunteer Firefighters
3.13Relief Association to the Lino Lakes Volunteer Firefighters Relief Association constitutes
3.14an authorized disbursement from the special fund of the Centennial Volunteer Firefighters
3.15Relief Association for purposes of Minnesota Statutes, section 424A.05, subdivision 3.
3.16(d) General fund assets of the Centennial Volunteer Firefighters Relief Association
3.17must be allocated between the remnant Centennial Volunteer Firefighters Relief
3.18Association and the Lino Lakes Volunteer Firefighters Relief Association in the proportions
3.19and in the manner established by the Centennial Volunteer Firefighters Relief Association.
3.20(e) The service credit of the active firefighters who transfer to the Lino Lakes
3.21Fire Department as of the date on which the next regular determination of the accrued
3.22liability of the Centennial Volunteer Firefighters Relief Association under Minnesota
3.23Statutes, sections 424A.091 and 424A.092, prepared after the effective date of this section
3.24under paragraph (a), clause (7), transfers to the Lino Lakes Volunteer Firefighters Relief
3.25Association on the date of the accrued liability and asset transfers. Upon the service
3.26credit transfer, the remnant Centennial Volunteer Firefighters Relief Association has no
3.27further liability for service pensions or ancillary benefits with respect to the firefighters
3.28transferring to the Lino Lakes Fire Department.
3.29(f) The remnant Centennial Volunteer Firefighters Relief Association and the new
3.30Lino Lakes Volunteer Firefighters Relief Association are jointly, for a period of six years
3.31after the transfer of special fund assets, successors in interest to all claims that the prior
3.32Centennial Volunteer Firefighters Relief Association may have or may assert against any
3.33person and are the successors in interest that could have been against the Centennial
3.34Volunteer Firefighters Relief Association. After six years, the Lino Lakes Volunteer
3.35Firefighters Relief Association is no longer a successor in interest to claims against the
3.36Centennial Volunteer Firefighters Relief Association.
4.1(g) The office of the state auditor shall audit the asset transfer under this section,
4.2with the cost of that audit payable by the two relief associations in proportion to their
4.3post-transfer assets.
4.4 Sec. 3. LINO LAKES VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION
4.5SERVICE CREDIT CONTINUATION.
4.6(a) Notwithstanding any provision of Minnesota Statutes, chapter 424A, to the
4.7contrary, this section governs the service credit, vesting, service pension calculation, and
4.8ancillary benefit calculation of the Lino Lakes Volunteer Firefighters Relief Association if
4.9sections 1 and 2 become effective upon the occurrence of the local approvals in section 4.
4.10(b) A firefighter who transfers employment from the Centennial Fire Department to
4.11the Lino Lakes Fire Department upon the creation of the Lino Lakes Fire Department:
4.12(1) retains any full and partial years of service credited by the Centennial Volunteer
4.13Firefighters Relief Association as of the date of the employment transfer, which must be
4.14credited to the firefighter by the Lino Lakes Volunteer Firefighters Relief Association;
4.15(2) retains any vesting acquired as of the date of employment transfer; and
4.16(3) is eligible to have subsequent Lino Lakes Fire Department firefighting service
4.17recognized as a continuation of firefighting service for additional vesting eligibility.
4.18 Sec. 4. EFFECTIVE DATE; LOCAL APPROVAL.
4.19Sections 1 and 2 are effective the day after the latest date on which the governing
4.20bodies and the chief clerical officers of the cities of Centerville, Circle Pines, and Lino
4.21Lakes timely complete their compliance with Minnesota Statutes, section 645.021,
4.22subdivisions 2 and 3.
