Bill Text: MN SF274 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Volunteer firefighter retirement coverage municipal action on the election of transfer to statewide plan coverage extension
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-02-06 - Referred to State and Local Government [SF274 Detail]
Download: Minnesota-2013-SF274-Introduced.html
1.2relating to retirement; voluntary statewide lump sum volunteer firefighter
1.3retirement plan; extending the length of time for municipal action on the election
1.4of transfer to statewide plan coverage; amending Minnesota Statutes 2012,
1.5section 353G.05, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
1.8 Subd. 2. Election of coverage. (a) The process for electing coverage of volunteer
1.9firefighters by the retirement plan is initiated by a request to the executive director for a
1.10cost analysis of the prospective retirement coverage.
1.11(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
1.12association governed by chapter 424A, the cost analysis of the prospective retirement
1.13coverage must be requested jointly by the secretary of the volunteer firefighters' relief
1.14association, following approval of the request by the board of the volunteer firefighters'
1.15relief association, and the chief administrative officer of the entity associated with the relief
1.16association, following approval of the request by the governing body of the entity associated
1.17with the relief association. If the relief association is associated with more than one entity,
1.18the chief administrative officer of each associated entity must execute the request. If
1.19the volunteer firefighters are not currently covered by a volunteer firefighters' relief
1.20association, the cost analysis of the prospective retirement coverage must be requested by
1.21the chief administrative officer of the entity operating the fire department. The request
1.22must be made in writing and must be made on a form prescribed by the executive director.
1.23(c) The cost analysis of the prospective retirement coverage by the statewide
1.24retirement plan must be based on the service pension amount under section353G.11
1.25closest to the service pension amount provided by the volunteer firefighters' relief
2.1association if the relief association is a lump-sum defined benefit plan, or the amount equal
2.2to 95 percent of the most current average account balance per relief association member if
2.3the relief association is a defined contribution plan, or to the lowest service pension amount
2.4under section353G.11 if there is no volunteer firefighters' relief association, rounded up,
2.5and any other service pension amount designated by the requester or requesters. The cost
2.6analysis must be prepared using a mathematical procedure certified as accurate by an
2.7approved actuary retained by the Public Employees Retirement Association.
2.8(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
2.9that has filed the information required under section69.051 in a timely fashion, upon
2.10request by the executive director, the state auditor shall provide the most recent data
2.11available on the financial condition of the volunteer firefighters' relief association, the most
2.12recent firefighter demographic data available, and a copy of the current relief association
2.13bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
2.14exists, the chief administrative officer of the entity operating the fire department shall
2.15provide the demographic information on the volunteer firefighters serving as members
2.16of the fire department requested by the executive director.
2.17(e) If a cost analysis is requested, the executive director of the State Board of
2.18Investment shall review the investment portfolio of the relief association, if applicable,
2.19for compliance with the applicable provisions of chapter 11A and for appropriateness
2.20for retention under the established investment objectives and investment policies of the
2.21State Board of Investment. If the prospective retirement coverage change is approved
2.22under paragraph (f), the State Board of Investment may require that the relief association
2.23liquidate any investment security or other asset which the executive director of the State
2.24Board of Investment has determined to be an ineligible or inappropriate investment for
2.25retention by the State Board of Investment. The security or asset liquidation must occur
2.26before the effective date of the transfer of retirement plan coverage. If requested to do so by
2.27the chief administrative officer of the relief association, the executive director of the State
2.28Board of Investment shall provide advice about the best means to conduct the liquidation.
2.29(f) Upon receipt of the cost analysis, the governing body of the municipality or
2.30independent nonprofit firefighting corporation associated with the fire department shall
2.31either approve or disapprove the retirement coverage change within90 120 days. If the
2.32retirement coverage change is not acted upon within90 120 days, it is deemed to be
2.33disapproved. If the retirement coverage change is approved by the applicable governing
2.34body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
2.35is effective on the next following January 1.
2.36EFFECTIVE DATE.This section is effective July 1, 2013.
1.3retirement plan; extending the length of time for municipal action on the election
1.4of transfer to statewide plan coverage; amending Minnesota Statutes 2012,
1.5section 353G.05, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
1.8 Subd. 2. Election of coverage. (a) The process for electing coverage of volunteer
1.9firefighters by the retirement plan is initiated by a request to the executive director for a
1.10cost analysis of the prospective retirement coverage.
1.11(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
1.12association governed by chapter 424A, the cost analysis of the prospective retirement
1.13coverage must be requested jointly by the secretary of the volunteer firefighters' relief
1.14association, following approval of the request by the board of the volunteer firefighters'
1.15relief association, and the chief administrative officer of the entity associated with the relief
1.16association, following approval of the request by the governing body of the entity associated
1.17with the relief association. If the relief association is associated with more than one entity,
1.18the chief administrative officer of each associated entity must execute the request. If
1.19the volunteer firefighters are not currently covered by a volunteer firefighters' relief
1.20association, the cost analysis of the prospective retirement coverage must be requested by
1.21the chief administrative officer of the entity operating the fire department. The request
1.22must be made in writing and must be made on a form prescribed by the executive director.
1.23(c) The cost analysis of the prospective retirement coverage by the statewide
1.24retirement plan must be based on the service pension amount under section
1.25closest to the service pension amount provided by the volunteer firefighters' relief
2.1association if the relief association is a lump-sum defined benefit plan, or the amount equal
2.2to 95 percent of the most current average account balance per relief association member if
2.3the relief association is a defined contribution plan, or to the lowest service pension amount
2.4under section
2.5and any other service pension amount designated by the requester or requesters. The cost
2.6analysis must be prepared using a mathematical procedure certified as accurate by an
2.7approved actuary retained by the Public Employees Retirement Association.
2.8(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
2.9that has filed the information required under section
2.10request by the executive director, the state auditor shall provide the most recent data
2.11available on the financial condition of the volunteer firefighters' relief association, the most
2.12recent firefighter demographic data available, and a copy of the current relief association
2.13bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
2.14exists, the chief administrative officer of the entity operating the fire department shall
2.15provide the demographic information on the volunteer firefighters serving as members
2.16of the fire department requested by the executive director.
2.17(e) If a cost analysis is requested, the executive director of the State Board of
2.18Investment shall review the investment portfolio of the relief association, if applicable,
2.19for compliance with the applicable provisions of chapter 11A and for appropriateness
2.20for retention under the established investment objectives and investment policies of the
2.21State Board of Investment. If the prospective retirement coverage change is approved
2.22under paragraph (f), the State Board of Investment may require that the relief association
2.23liquidate any investment security or other asset which the executive director of the State
2.24Board of Investment has determined to be an ineligible or inappropriate investment for
2.25retention by the State Board of Investment. The security or asset liquidation must occur
2.26before the effective date of the transfer of retirement plan coverage. If requested to do so by
2.27the chief administrative officer of the relief association, the executive director of the State
2.28Board of Investment shall provide advice about the best means to conduct the liquidation.
2.29(f) Upon receipt of the cost analysis, the governing body of the municipality or
2.30independent nonprofit firefighting corporation associated with the fire department shall
2.31either approve or disapprove the retirement coverage change within
2.32retirement coverage change is not acted upon within
2.33disapproved. If the retirement coverage change is approved by the applicable governing
2.34body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
2.35is effective on the next following January 1.
2.36EFFECTIVE DATE.This section is effective July 1, 2013.
