1.1 	A bill for an act
1.2 	relating to retirement; volunteer firefighter relief associations; implementing 
1.3 	the recommendations of the state auditor's volunteer firefighter working group; 
1.4 	addressing various disbursement and accounting issues; addressing various 
1.5 	benefit issues; updating volunteer fire state aid references; addressing various 
1.6 	relief association establishment and membership issues; amending Minnesota 
1.7 	Statutes 2014, sections 69.051, subdivision 1a; 69.80; 424A.001, by adding 
1.8 	a subdivision; 424A.002, subdivision 1; 424A.016, subdivision 4; 424A.02, 
1.9 	subdivisions 3, 3a, 9a; 424A.05, subdivisions 2, 3; 424A.092, subdivisions 3, 6; 
1.10 	424A.093, subdivisions 5, 6.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	DISBURSEMENT AND ACCOUNTING ISSUES

1.14 	Section 1. Minnesota Statutes 2014, section 69.051, subdivision 1a, is amended to read:
1.15 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
1.16 	association, as defined in section 424A.001, subdivision 4, that is not required to file a 
1.17 	financial report and audit under subdivision 1 must prepare a detailed statement of the 
1.18 	financial affairs for the preceding fiscal year of the relief association's special and general 
1.19 	funds in the style and form prescribed by the state auditor. The detailed statement must 
1.20 	show:
1.21 	(1) the sources and amounts of all money received;
1.22 	(2) all disbursements, accounts payable and accounts receivable;
1.23 	(3) the amount of money remaining in the treasury;
1.24 	(4) total assets, including a listing of all investments;
1.25 	(5) the accrued liabilities; and
2.1 	(6) all other items necessary to show accurately the revenues and expenditures and 
2.2 	financial position of the relief association.
2.3 	(b) The detailed financial statement of the special and general funds required under 
2.4 	paragraph (a) must be certified by a certified public accountant or by the state auditor. In 
2.5 	addition to certifying the financial condition of the special and general funds of the relief 
2.6 	association, the accountant or auditor conducting the examination shall give an opinion 
2.7 	as to the condition of the special and general funds of the relief association, and shall 
2.8 	comment upon any exceptions to the report in accordance with agreed-upon procedures 
2.9 	and forms prescribed by the state auditor. The accountant must have at least five years of 
2.10 	public accounting, auditing, or similar experience, and must not be an active, inactive, or 
2.11 	retired member of the relief association or the fire department.
2.12 	(c) The detailed financial statement required under paragraph (a) must be 
2.13 	countersigned by:
2.14 	(1) the municipal clerk or clerk-treasurer of the municipality; or
2.15 	(2) where applicable, by the municipal clerk or clerk-treasurer of the largest 
2.16 	municipality in population which contracts with the independent nonprofit firefighting 
2.17 	corporation if the relief association is a subsidiary of an independent nonprofit firefighting 
2.18 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
2.19 	(3) by the chief financial official of the county in which the volunteer firefighter 
2.20 	relief association is located or primarily located if the relief association is associated with 
2.21 	a fire department that is not located in or associated with an organized municipality.
2.22 	(d) The volunteer firefighters' relief association board must file the detailed financial 
2.23 	statement required under paragraph (a) in the relief association office for public inspection 
2.24 	and present it to the governing body of the municipality within 45 days after the close of 
2.25 	the fiscal year, and must submit a copy of the certified detailed financial statement to the 
2.26 	state auditor within 90 days of the close of the fiscal year.
2.27 	(e) A certified public accountant or auditor who performs the agreed-upon 
2.28 	procedures under paragraph (b) is subject to the reporting requirements of section 6.67.

2.29 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to financial 
2.30 	statements prepared for calendar year 2015 and thereafter.

2.31 	Sec. 2. Minnesota Statutes 2014, section 69.80, is amended to read:
2.32 	69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
2.33 	(a) Notwithstanding any provision of law to the contrary, the payment of the 
2.34 	following necessary, reasonable and direct expenses of maintaining, protecting and 
3.1 	administering the special fund, when provided for in the bylaws of the association and 
3.2 	approved by the board of trustees, constitutes authorized administrative expenses of a 
3.3 	volunteer firefighters' relief association organized under any law of this state or the 
3.4 	Bloomington Fire Department Relief Association:
3.5 	(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, 
3.6 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative 
3.7 	personnel;
3.8 	(2) salaries of the officers of the association, or their designees, and salaries of the 
3.9 	members of the board of trustees of the association if the salary amounts are approved by 
3.10 	the governing body of the entity that is responsible for meeting any minimum obligation 
3.11 	under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 
3.12 	42, and the itemized expenses of relief association officers and board members that are 
3.13 	incurred as a result of fulfilling their responsibilities as administrators of the special fund;
3.14 	(3) tuition, registration fees, organizational dues, and other authorized expenses 
3.15 	of the officers or members of the board of trustees incurred in attending educational 
3.16 	conferences, seminars, or classes relating to the administration of the relief association;
3.17 	(4) audit,and audit-related services, and accounting and accounting-related services, 
3.18 	actuarial, medical, legal, and investment and performance evaluation expenses;
3.19 	(5) filing and application fees payable by the relief association to federal or other 
3.20 	governmental entities;
3.21 	(6) reimbursement to the officers and members of the board of trustees, or their 
3.22 	designees, for reasonable and necessary expenses actually paid and incurred in the 
3.23 	performance of their duties as officers or members of the board; and
3.24 	(7) premiums on fiduciary liability insurance and official bonds for the officers, 
3.25 	members of the board of trustees, and employees of the relief association.
3.26 	(b) Any other expenses of the relief association must be paid from the general fund 
3.27 	of the association, if one exists. If a relief association has only one fund, that fund is the 
3.28 	special fund for purposes of this section. If a relief association has a special fund and 
3.29 	a general fund, and any expense of the relief association that is directly related to the 
3.30 	purposes for which both funds were established, the payment of that expense must be 
3.31 	apportioned between the two funds on the basis of the benefits derived by each fund.

3.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.33 	Sec. 3. Minnesota Statutes 2014, section 424A.05, subdivision 3, is amended to read:
3.34 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from 
3.35 	the special fund may not be made for any purpose other than one of the following:
4.1 	(1) for the payment of service pensions to retired members of the relief association if 
4.2 	authorized and paid under law and the bylaws governing the relief association;
4.3 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
4.4 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable 
4.5 	person's individual retirement account under section 424A.015, subdivision 4, or to the 
4.6 	applicable person's account in the Minnesota deferred compensation plan under section 
4.7 	424A.015, subdivision 5;
4.8 	(3) for the payment of temporary or permanent disability benefits to disabled 
4.9 	members of the relief association if authorized and paid under law and specified in amount 
4.10 	in the bylaws governing the relief association;
4.11 	(4) for the payment of survivor benefits or for the payment of a death benefit to the 
4.12 	estate of the deceased active or deferred firefighter, if authorized and paid under law and 
4.13 	specified in amount in the bylaws governing the relief association;
4.14 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
4.15 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
4.16 	entitle relief association members to membership in and the benefits of these associations 
4.17 	or organizations;
4.18 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
4.19 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
4.20 	insurance, in order to entitle relief association members to membership in and the benefits 
4.21 	of the association or organization; and
4.22 	(7) for the payment of administrative expenses of the relief association as authorized 
4.23 	under section 69.80.
4.24 	(b) Checks or authorizations for electronic fund transfers for disbursements 
4.25 	authorized by this section must be signed by the relief association treasurer and at least one 
4.26 	other elected trustee who has been designated by the board of trustees to sign the checks or 
4.27 	authorizations. A relief association may make disbursements authorized by this subdivision 
4.28 	by electronic funds transfers only if the specific method of payment and internal control 
4.29 	policies and procedures regarding the method are approved by the board of trustees.

4.30 	EFFECTIVE DATE. This section is effective July 1, 2015.

4.31 	ARTICLE 2
4.32 	BENEFIT ISSUES

4.33 	Section 1. Minnesota Statutes 2014, section 424A.02, subdivision 3a, is amended to 
4.34 	read:
5.1 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) 
5.2 	If a defined benefit relief association pays a service pension greater than the maximum 
5.3 	service pension associated with the applicable average amount of available financing per 
5.4 	active covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever 
5.5 	applies, the maximum service pension under subdivision 3, paragraph (f), or the applicable 
5.6 	maximum service pension amount specified in subdivision 3, paragraph (g), whichever is 
5.7 	less, the state auditor shall:
5.8 	(1) disqualify the municipality or the nonprofit firefighting corporation associated 
5.9 	with the relief association from receiving fire state aid by making the appropriate 
5.10 	notification to the municipality and the commissioner of revenue, with the disqualification 
5.11 	applicable for the next apportionment and payment of fire state aid; and
5.12 	(2) order the treasurer of the applicable relief association to recover the amount of 
5.13 	the overpaid service pension or pensions from any retired firefighter who received an 
5.14 	overpayment.
5.15 	(b) Fire state aid amounts from disqualified municipalities for the period of 
5.16 	disqualifications under paragraph (a), clause (1), must be credited to the amount of 
5.17 	fire insurance premium tax proceeds available for the next subsequent fire state aid 
5.18 	apportionment.
5.19 	(c) The amount of any overpaid service pension recovered under paragraph (a), 
5.20 	clause (2), must be credited to the amount of fire insurance premium tax proceeds 
5.21 	available for the next subsequent fire state aid apportionment.
5.22 	(d) The determination of the state auditor that a relief association has paid a service 
5.23 	pension greater than the applicable maximum must be made on the basis of the information 
5.24 	filed by the relief association and the municipality with the state auditor under sections 
5.25 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, and any other 
5.26 	relevant information that comes to the attention of the state auditor. The determination 
5.27 	of the state auditor is final. An aggrieved municipality, relief association, or person may 
5.28 	appeal the determination under section 480A.06.
5.29 	(e) The state auditor may certify, upon learning that a relief association overpaid 
5.30 	a service pension based on an error in the maximum service pension calculation, the 
5.31 	municipality or nonprofit firefighting corporation associated with the relief association 
5.32 	for fire state aid if (1) there is evidence that the error occurred in good faith, and (2) the 
5.33 	relief association has initiated recovery of any overpayment amount. Notwithstanding 
5.34 	paragraph (c), all overpayments recovered under this paragraph must be credited to the 
5.35 	relief association's special fund.

5.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.1 	Sec. 2. Minnesota Statutes 2014, section 424A.02, subdivision 9a, is amended to read:
6.2 		Subd. 9a.Postretirement increases. Notwithstanding any provision of general or 
6.3 	special law to the contrary, a defined benefit relief association paying a monthly service 
6.4 	pension may provide a postretirement increase to retired members and ancillary benefit 
6.5 	recipients of the relief association if (1) the relief association adopts an appropriate 
6.6 	bylaw amendment; and (2) the bylaw amendment is approved by the municipality 
6.7 	pursuant to subdivision 10 and section 424A.093, subdivision 6. The postretirement 
6.8 	increase is applicable only to retired members and ancillary benefit recipients receiving a 
6.9 	monthly service pension or monthly ancillary benefit as of the effective date of the bylaw 
6.10 	amendment. The authority to provide a postretirement increase to retired members and 
6.11 	ancillary benefit recipients of a relief association contained in this subdivision supersedes 
6.12 	any prior special law authorization relating to the provision of postretirement increases.

6.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.14 	ARTICLE 3
6.15 	STATE AID REFERENCES

6.16 	Section 1. Minnesota Statutes 2014, section 424A.016, subdivision 4, is amended to 
6.17 	read:
6.18 		Subd. 4.Individual accounts. (a) An individual account must be established for 
6.19 	each firefighter who is a member of the relief association.
6.20 	(b) To each individual active member account must be credited an equal share of:
6.21 	(1) any amounts of fire state aid and police and firefighter retirement supplemental 
6.22 	state aid received by the relief association;
6.23 	(2) any amounts of municipal contributions to the relief association raised from 
6.24 	levies on real estate or from other available municipal revenue sources exclusive of fire 
6.25 	state aid; and
6.26 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
6.27 	(i) any former member who terminated active service with the fire department to 
6.28 	which the relief association is associated before meeting the minimum service requirement 
6.29 	provided for in subdivision 2, paragraph (b), and has not returned to active service with 
6.30 	the fire department for a period no shorter than five years; or
6.31 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in 
6.32 	the amounts credited to the individual member account under subdivision 2, paragraph 
6.33 	(b), and any applicable provision of the bylaws of the relief association. In addition, any 
6.34 	investment return on the assets of the special fund must be credited in proportion to the 
7.1 	share of the assets of the special fund to the credit of each individual active member 
7.2 	account. Administrative expenses of the relief association payable from the special 
7.3 	fund may be deducted from individual accounts in a manner specified in the bylaws of 
7.4 	the relief association.
7.5 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
7.6 	any investment return on the assets of the special fund to the accounts of inactive members.
7.7 	(d) Amounts to be credited to individual accounts must be allocated uniformly 
7.8 	for all years of active service and allocations must be made for all years of service, 
7.9 	except for caps on service credit if so provided in the bylaws of the relief association. 
7.10 	Amounts forfeited under paragraph (b), clause (3), before a resumption of active service 
7.11 	and membership under section 424A.01, subdivision 6, remain forfeited and may not be 
7.12 	reinstated upon the resumption of active service and membership. The allocation method 
7.13 	may utilize monthly proration for fractional years of service, as the bylaws or articles of 
7.14 	incorporation of the relief association so provide. The bylaws or articles of incorporation 
7.15 	may define a "month," but the definition must require a calendar month to have at least 16 
7.16 	days of active service. If the bylaws or articles of incorporation do not define a "month," a 
7.17 	"month" is a completed calendar month of active service measured from the member's 
7.18 	date of entry to the same date in the subsequent month.
7.19 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
7.20 	bylaws of the relief association, a retiring member is entitled to that portion of the assets 
7.21 	of the special fund to the credit of the member in the individual member account which is 
7.22 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
7.23 	association based on the number of years of service to the credit of the retiring member.
7.24 	(f) Annually, the secretary of the relief association shall certify the individual 
7.25 	account allocations to the state auditor at the same time that the annual financial statement 
7.26 	or financial report and audit of the relief association, whichever applies, is due under 
7.27 	section 69.051.

7.28 	Sec. 2. Minnesota Statutes 2014, section 424A.02, subdivision 3, is amended to read:
7.29 		Subd. 3.Flexible service pension maximums. (a) Annually on or before August 
7.30 	1 as part of the certification of the financial requirements and minimum municipal 
7.31 	obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, 
7.32 	as applicable, the secretary or some other official of the relief association designated in the 
7.33 	bylaws of each defined benefit relief association shall calculate and certify to the governing 
7.34 	body of the applicable municipality the average amount of available financing per active 
7.35 	covered firefighter for the most recent three-year period. The amount of available financing 
8.1 	includes any amounts of fire state aid and police and firefighter retirement supplemental 
8.2 	state aid received or receivable by the relief association, any amounts of municipal 
8.3 	contributions to the relief association raised from levies on real estate or from other 
8.4 	available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in 
8.5 	excess of the accrued liabilities of the relief association calculated under section 424A.092, 
8.6 	subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any.
8.7 	(b) The maximum service pension which the defined benefit relief association has 
8.8 	authority to provide for in its bylaws for payment to a member retiring after the calculation 
8.9 	date when the minimum age and service requirements specified in subdivision 1 are met 
8.10 	must be determined using the table in paragraph (c) or (d), whichever applies.
8.11 	(c) For a defined benefit relief association where the governing bylaws provide for 
8.12 	a monthly service pension to a retiring member, the maximum monthly service pension 
8.13 	amount per month for each year of service credited that may be provided for in the bylaws 
8.14 	is the greater of the service pension amount provided for in the bylaws on the date of the 
8.15 	calculation of the average amount of the available financing per active covered firefighter 
8.16 	or the maximum service pension figure corresponding to the average amount of available 
8.17 	financing per active covered firefighter:

8.18
8.19
8.20	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Service Pension Amount 
Payable per Month for Each 
Year of Service
	
8.21	$ ...
		$ .25
		
8.22	41
		.50
		
8.23	81
		1.00
		
8.24	122
		1.50
		
8.25	162
		2.00
		
8.26	203
		2.50
		
8.27	243
		3.00
		
8.28	284
		3.50
		
8.29	324
		4.00
		
8.30	365
		4.50
		
8.31	405
		5.00
		
8.32	486
		6.00
		
8.33	567
		7.00
		
8.34	648
		8.00
		
8.35	729
		9.00
		
8.36	810
		10.00
		
8.37	891
		11.00
		
8.38	972
		12.00
		
8.39	1053
		13.00
		
8.40	1134
		14.00
		
9.1	1215
		15.00
		
9.2	1296
		16.00
		
9.3	1377
		17.00
		
9.4	1458
		18.00
		
9.5	1539
		19.00
		
9.6	1620
		20.00
		
9.7	1701
		21.00
		
9.8	1782
		22.00
		
9.9	1823
		22.50
		
9.10	1863
		23.00
		
9.11	1944
		24.00
		
9.12	2025
		25.00
		
9.13	2106
		26.00
		
9.14	2187
		27.00
		
9.15	2268
		28.00
		
9.16	2349
		29.00
		
9.17	2430
		30.00
		
9.18	2511
		31.00
		
9.19	2592
		32.00
		
9.20	2673
		33.00
		
9.21	2754
		34.00
		
9.22	2834
		35.00
		
9.23	2916
		36.00
		
9.24	2997
		37.00
		
9.25	3078
		38.00
		
9.26	3159
		39.00
		
9.27	3240
		40.00
		
9.28	3321
		41.00
		
9.29	3402
		42.00
		
9.30	3483
		43.00
		
9.31	3564
		44.00
		
9.32	3645
		45.00
		
9.33	3726
		46.00
		
9.34	3807
		47.00
		
9.35	3888
		48.00
		
9.36	3969
		49.00
		
9.37	4050
		50.00
		
9.38	4131
		51.00
		
9.39	4212
		52.00
		
9.40	4293
		53.00
		
9.41	4374
		54.00
		
9.42	4455
		55.00
		
9.43	4536
		56.00
		
10.1	4617
		57.00
		
10.2	4698
		58.00
		
10.3	4779
		59.00
		
10.4	4860
		60.00
		
10.5	4941
		61.00
		
10.6	5022
		62.00
		
10.7	5103
		63.00
		
10.8	5184
		64.00
		
10.9	5265
		65.00
		
10.10	5346
		66.00
		
10.11	5427
		67.00
		
10.12	5508
		68.00
		
10.13	5589
		69.00
		
10.14	5670
		70.00
		
10.15	5751
		71.00
		
10.16	5832
		72.00
		
10.17	5913
		73.00
		
10.18	5994
		74.00
		
10.19	6075
		75.00
		
10.20	6156
		76.00
		
10.21	6237
		77.00
		
10.22	6318
		78.00
		
10.23	6399
		79.00
		
10.24	6480
		80.00
		
10.25	6561
		81.00
		
10.26	6642
		82.00
		
10.27	6723
		83.00
		
10.28	6804
		84.00
		
10.29	6885
		85.00
		
10.30	6966
		86.00
		
10.31	7047
		87.00
		
10.32	7128
		88.00
		
10.33	7209
		89.00
		
10.34	7290
		90.00
		
10.35	7371
		91.00
		
10.36	7452
		92.00
		
10.37	7533
		93.00
		
10.38	7614
		94.00
		
10.39	7695
		95.00
		
10.40	7776
		96.00
		
10.41	7857
		97.00
		
10.42	7938
		98.00
		
10.43	8019
		99.00
		
11.1	8100
		100.00
		
11.2	any amount in excess of 
				
11.3	8100
		100.00
		
11.4 	(d) For a defined benefit relief association in which the governing bylaws provide 
11.5 	for a lump-sum service pension to a retiring member, the maximum lump-sum service 
11.6 	pension amount for each year of service credited that may be provided for in the bylaws is 
11.7 	the greater of the service pension amount provided for in the bylaws on the date of the 
11.8 	calculation of the average amount of the available financing per active covered firefighter 
11.9 	or the maximum service pension figure corresponding to the average amount of available 
11.10 	financing per active covered firefighter for the applicable specified period:

11.11
11.12
11.13	Minimum Average Amount of Available 
Financing per Firefighter
	Maximum Lump-Sum Service 
Pension Amount Payable for 
Each Year of Service
	
11.14	$ ...
		$ 10
		
11.15	11
		20
		
11.16	16
		30
		
11.17	23
		40
		
11.18	27
		50
		
11.19	32
		60
		
11.20	43
		80
		
11.21	54
		100
		
11.22	65
		120
		
11.23	77
		140
		
11.24	86
		160
		
11.25	97
		180
		
11.26	108
		200
		
11.27	131
		240
		
11.28	151
		280
		
11.29	173
		320
		
11.30	194
		360
		
11.31	216
		400
		
11.32	239
		440
		
11.33	259
		480
		
11.34	281
		520
		
11.35	302
		560
		
11.36	324
		600
		
11.37	347
		640
		
11.38	367
		680
		
11.39	389
		720
		
11.40	410
		760
		
11.41	432
		800
		
11.42	486
		900
		
12.1	540
		1000
		
12.2	594
		1100
		
12.3	648
		1200
		
12.4	702
		1300
		
12.5	756
		1400
		
12.6	810
		1500
		
12.7	864
		1600
		
12.8	918
		1700
		
12.9	972
		1800
		
12.10	1026
		1900
		
12.11	1080
		2000
		
12.12	1134
		2100
		
12.13	1188
		2200
		
12.14	1242
		2300
		
12.15	1296
		2400
		
12.16	1350
		2500
		
12.17	1404
		2600
		
12.18	1458
		2700
		
12.19	1512
		2800
		
12.20	1566
		2900
		
12.21	1620
		3000
		
12.22	1672
		3100
		
12.23	1726
		3200
		
12.24	1753
		3250
		
12.25	1780
		3300
		
12.26	1820
		3375
		
12.27	1834
		3400
		
12.28	1888
		3500
		
12.29	1942
		3600
		
12.30	1996
		3700
		
12.31	2023
		3750
		
12.32	2050
		3800
		
12.33	2104
		3900
		
12.34	2158
		4000
		
12.35	2212
		4100
		
12.36	2265
		4200
		
12.37	2319
		4300
		
12.38	2373
		4400
		
12.39	2427
		4500
		
12.40	2481
		4600
		
12.41	2535
		4700
		
12.42	2589
		4800
		
12.43	2643
		4900
		
13.1	2697
		5000
		
13.2	2751
		5100
		
13.3	2805
		5200
		
13.4	2859
		5300
		
13.5	2913
		5400
		
13.6	2967
		5500
		
13.7	3021
		5600
		
13.8	3075
		5700
		
13.9	3129
		5800
		
13.10	3183
		5900
		
13.11	3237
		6000
		
13.12	3291
		6100
		
13.13	3345
		6200
		
13.14	3399
		6300
		
13.15	3453
		6400
		
13.16	3507
		6500
		
13.17	3561
		6600
		
13.18	3615
		6700
		
13.19	3669
		6800
		
13.20	3723
		6900
		
13.21	3777
		7000
		
13.22	3831
		7100
		
13.23	3885
		7200
		
13.24	3939
		7300
		
13.25	3993
		7400
		
13.26	4047
		7500
		
13.27	4101
		7600
		
13.28	4155
		7700
		
13.29	4209
		7800
		
13.30	4263
		7900
		
13.31	4317
		8000
		
13.32	4371
		8100
		
13.33	4425
		8200
		
13.34	4479
		8300
		
13.35	4533
		8400
		
13.36	4587
		8500
		
13.37	4641
		8600
		
13.38	4695
		8700
		
13.39	4749
		8800
		
13.40	4803
		8900
		
13.41	4857
		9000
		
13.42	4911
		9100
		
13.43	4965
		9200
		
14.1	5019
		9300
		
14.2	5073
		9400
		
14.3	5127
		9500
		
14.4	5181
		9600
		
14.5	5235
		9700
		
14.6	5289
		9800
		
14.7	5343
		9900
		
14.8	5397
		10,000
		
14.9	any amount in excess of
				
14.10	5397
		10,000
		
14.11 	(e) For a defined benefit relief association in which the governing bylaws provide 
14.12 	for a monthly benefit service pension as an alternative form of service pension payment 
14.13 	to a lump-sum service pension, the maximum service pension amount for each pension 
14.14 	payment type must be determined using the applicable table contained in this subdivision.
14.15 	(f) If a defined benefit relief association establishes a service pension in compliance 
14.16 	with the applicable maximum contained in paragraph (c) or (d) and the minimum average 
14.17 	amount of available financing per active covered firefighter is subsequently reduced 
14.18 	because of a reduction in fire state aid or because of an increase in the number of active 
14.19 	firefighters, the relief association may continue to provide the prior service pension 
14.20 	amount specified in its bylaws, but may not increase the service pension amount until 
14.21 	the minimum average amount of available financing per firefighter under the table in 
14.22 	paragraph (c) or (d), whichever applies, permits.
14.23 	(g) No defined benefit relief association is authorized to provide a service pension in 
14.24 	an amount greater than the largest applicable flexible service pension maximum amount 
14.25 	even if the amount of available financing per firefighter is greater than the financing 
14.26 	amount associated with the largest applicable flexible service pension maximum.
14.27 	(h) The method of calculating service pensions must be applied uniformly for all 
14.28 	years of active service. Credit must be given for all years of active service except for caps 
14.29 	on service credit if so provided in the bylaws of the relief association.

14.30 	Sec. 3. Minnesota Statutes 2014, section 424A.05, subdivision 2, is amended to read:
14.31 		Subd. 2.Special fund assets and revenues. The special fund must be credited 
14.32 	with all fire state aid moneys and police and firefighter retirement supplemental state 
14.33 	aid  received under sections 69.011 to 69.051 and 423A.022, all taxes levied by or other 
14.34 	revenues received from the municipality under sections 424A.091 to 424A.096 or any 
14.35 	applicable special law requiring municipal support for the relief association, any moneys
14.36 	funds or property donated, given, granted or devised by any person which is specified for 
15.1 	use for the support of the special fund and any interest or investment return earned upon 
15.2 	the assets of the special fund. The treasurer of the relief association is the custodian of 
15.3 	the assets of the special fund and must be the recipient on behalf of the special fund of 
15.4 	all revenues payable to the special fund. The treasurer shall maintain adequate records 
15.5 	documenting any transaction involving the assets or the revenues of the special fund. 
15.6 	These records and the bylaws of the relief association are public and must be open for 
15.7 	inspection by any member of the relief association, any officer or employee of the state or 
15.8 	of the municipality, or any member of the public, at reasonable times and places.

15.9 	Sec. 4. Minnesota Statutes 2014, section 424A.092, subdivision 3, is amended to read:
15.10 		Subd. 3.Financial requirements of relief association; minimum obligation of 
15.11 	municipality. (a) During the month of July, the officers of the relief association shall 
15.12 	determine the overall funding balance of the special fund for the current calendar year, 
15.13 	the financial requirements of the special fund for the following calendar year and the 
15.14 	minimum obligation of the municipality with respect to the special fund for the following 
15.15 	calendar year in accordance with the requirements of this subdivision.
15.16 	(b) The overall funding balance of the special fund for the current calendar year must 
15.17 	be determined in the following manner:
15.18 	(1) The total accrued liability of the special fund for all active and deferred members 
15.19 	of the relief association as of December 31 of the current year must be calculated under 
15.20 	subdivisions 2 and 2a, if applicable.
15.21 	(2) The total present assets of the special fund projected to December 31 of the 
15.22 	current year, including receipts by and disbursements from the special fund anticipated to 
15.23 	occur on or before December 31, must be calculated. To the extent possible, for those 
15.24 	assets for which a market value is readily ascertainable, the current market value as of the 
15.25 	date of the calculation for those assets must be utilized in making this calculation. For any 
15.26 	asset for which no market value is readily ascertainable, the cost value or the book value, 
15.27 	whichever is applicable, must be utilized in making this calculation.
15.28 	(3) The amount of the total present assets of the special fund calculated under clause 
15.29 	(2) must be subtracted from the amount of the total accrued liability of the special fund 
15.30 	calculated under clause (1). If the amount of total present assets exceeds the amount of 
15.31 	the total accrued liability, then the special fund is considered to have a surplus over full 
15.32 	funding. If the amount of the total present assets is less than the amount of the total 
15.33 	accrued liability, then the special fund is considered to have a deficit from full funding. If 
15.34 	the amount of total present assets is equal to the amount of the total accrued liability, then 
15.35 	the special fund is considered to be fully funded.
16.1 	(c) The financial requirements of the special fund for the following calendar year 
16.2 	must be determined in the following manner:
16.3 	(1) The total accrued liability of the special fund for all active and deferred members 
16.4 	of the relief association as of December 31 of the calendar year next following the current 
16.5 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
16.6 	(2) The increase in the total accrued liability of the special fund for the following 
16.7 	calendar year over the total accrued liability of the special fund for the current year must 
16.8 	be calculated.
16.9 	(3) The amount of anticipated future administrative expenses of the special fund 
16.10 	must be calculated by multiplying the dollar amount of the administrative expenses of the 
16.11 	special fund for the most recent prior calendar year by the factor of 1.035.
16.12 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
16.13 	the following calendar year are the total of the amounts calculated under clauses (2) and (3).
16.14 	(5) If the special fund has a deficit from full funding, the financial requirements of 
16.15 	the special fund for the following calendar year are the financial requirements of the 
16.16 	special fund calculated as though the special fund were fully funded under clause (4) plus 
16.17 	an amount equal to one-tenth of the original amount of the deficit from full funding of the 
16.18 	special fund as determined under clause (2) resulting either from an increase in the amount 
16.19 	of the service pension occurring in the last ten years or from a net annual investment loss 
16.20 	occurring during the last ten years until each increase in the deficit from full funding is 
16.21 	fully retired. The annual amortization contribution under this clause may not exceed the 
16.22 	amount of the deficit from full funding.
16.23 	(6) If the special fund has a surplus over full funding, the financial requirements of 
16.24 	the special fund for the following calendar year are the financial requirements of the special 
16.25 	fund calculated as though the special fund were fully funded under clause (4) reduced by an 
16.26 	amount equal to one-tenth of the amount of the surplus over full funding of the special fund.
16.27 	(d) The minimum obligation of the municipality with respect to the special fund is 
16.28 	the financial requirements of the special fund reduced by the amount of any fire state aid 
16.29 	and police and firefighter retirement supplemental state aid payable under sections 69.011
16.30 	to 69.051and 423A.022 reasonably anticipated to be received by the municipality for 
16.31 	transmittal to the special fund during the following calendar year, an amount of interest on 
16.32 	the assets of the special fund projected to the beginning of the following calendar year 
16.33 	calculated at the rate of five percent per annum, and the amount of any contributions to 
16.34 	the special fund required by the relief association bylaws from the active members of the 
16.35 	relief association reasonably anticipated to be received during the following calendar year. 
17.1 	A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
17.2 	state aid actually received in the prior year multiplied by the factor 1.035.

17.3 	Sec. 5. Minnesota Statutes 2014, section 424A.092, subdivision 6, is amended to read:
17.4 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
17.5 	relief association does not have a surplus over full funding under subdivision 3, paragraph 
17.6 	(c), clause (5), and if the municipality is required to provide financial support to the special 
17.7 	fund of the relief association under this section, the adoption of or any amendment to the 
17.8 	articles of incorporation or bylaws of a relief association which increases or otherwise 
17.9 	affects the retirement coverage provided by or the service pensions or retirement benefits 
17.10 	payable from the special fund of any relief association to which this section applies is not 
17.11 	effective until it is ratified by the governing body of the municipality served by the fire 
17.12 	department to which the relief association is directly associated or by the independent 
17.13 	nonprofit firefighting corporation, as applicable, and the officers of a relief association 
17.14 	shall not seek municipal ratification prior to preparing and certifying an estimate of 
17.15 	the expected increase in the accrued liability and annual accruing liability of the relief 
17.16 	association attributable to the amendment. If the special fund of the relief association 
17.17 	has a surplus over full funding under subdivision 3, paragraph (c), clause (5), and if the 
17.18 	municipality is not required to provide financial support to the special fund of the relief 
17.19 	association under this section, the relief association may adopt or amend its articles of 
17.20 	incorporation or bylaws which increase or otherwise affect the retirement coverage 
17.21 	provided by or the service pensions or retirement benefits payable from the special fund 
17.22 	of the relief association which are effective without municipal ratification so long as this 
17.23 	does not cause the amount of the resulting increase in the accrued liability of the special 
17.24 	fund of the relief association to exceed 90 percent of the amount of the surplus over full 
17.25 	funding reported in the prior year and this does not result in the financial requirements 
17.26 	of the special fund of the relief association exceeding the expected amount of the future 
17.27 	fire state aid and police and firefighter retirement supplemental state aid to be received 
17.28 	by the relief association as determined by the board of trustees following the preparation 
17.29 	of an estimate of the expected increase in the accrued liability and annual accruing 
17.30 	liability of the relief association attributable to the change. If a relief association adopts or 
17.31 	amends its articles of incorporation or bylaws without municipal ratification under this 
17.32 	subdivision, and, subsequent to the amendment or adoption, the financial requirements 
17.33 	of the special fund of the relief association under this section are such so as to require 
17.34 	financial support from the municipality, the provision which was implemented without 
17.35 	municipal ratification is no longer effective without municipal ratification and any service 
18.1 	pensions or retirement benefits payable after that date may be paid only in accordance with 
18.2 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

18.3 	Sec. 6. Minnesota Statutes 2014, section 424A.093, subdivision 5, is amended to read:
18.4 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association 
18.5 	shall determine the minimum obligation of the municipality with respect to the special 
18.6 	fund of the relief association for the following calendar year on or before August 1 of each 
18.7 	year in accordance with the requirements of this subdivision.
18.8 	(b) The minimum obligation of the municipality with respect to the special fund is 
18.9 	an amount equal to the financial requirements of the special fund of the relief association 
18.10 	determined under subdivision 4, reduced by the estimated amount of any fire state 
18.11 	aid and police and firefighter retirement supplemental state aid payable under sections 
18.12 	69.011 to 69.051and 423A.022 reasonably anticipated to be received by the municipality 
18.13 	for transmittal to the special fund of the relief association during the following year 
18.14 	and the amount of any anticipated contributions to the special fund required by the 
18.15 	relief association bylaws from the active members of the relief association reasonably 
18.16 	anticipated to be received during the following calendar year. A reasonable amount of 
18.17 	anticipated fire state aid is an amount that does not exceed the fire state aid actually 
18.18 	received in the prior year multiplied by the factor 1.035.
18.19 	(c) The officers of the relief association shall certify the financial requirements of the 
18.20 	special fund of the relief association and the minimum obligation of the municipality with 
18.21 	respect to the special fund of the relief association as determined under subdivision 4 and 
18.22 	this subdivision by August 1 of each year. The certification must be made to the entity that 
18.23 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
18.24 	relief association. If the responsible entity is a joint powers entity, the certification must be 
18.25 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
18.26 	is silent on this point, the certification must be made to the chair of the joint powers board.
18.27 	(d) The financial requirements of the relief association and the minimum municipal 
18.28 	obligation must be included in the financial report or financial statement under section 
18.29 	69.051.
18.30 	(e) The municipality shall provide for at least the minimum obligation of the 
18.31 	municipality with respect to the special fund of the relief association by tax levy or from 
18.32 	any other source of public revenue. The municipality may levy taxes for the payment of the 
18.33 	minimum municipal obligation without any limitation as to rate or amount and irrespective 
18.34 	of any limitations imposed by other provisions of law or charter upon the rate or amount 
18.35 	of taxation until the balance of the special fund or any fund of the relief association has 
19.1 	attained a specified level. In addition, any taxes levied under this section must not cause 
19.2 	the amount or rate of any other taxes levied in that year or to be levied in a subsequent year 
19.3 	by the municipality which are subject to a limitation as to rate or amount to be reduced.
19.4 	(f) If the municipality does not include the full amount of the minimum municipal 
19.5 	obligation in its levy for any year, the officers of the relief association shall certify that 
19.6 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
19.7 	municipal obligation on the taxable property of the municipality.
19.8 	(g) If the state auditor determines that a municipal contribution actually made in a 
19.9 	plan year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause 
19.10 	(5), the state auditor may request from the relief association or from the city a copy of 
19.11 	the certifications under this subdivision. The relief association or the city, whichever 
19.12 	applies, must provide the certifications within 14 days of the date of the request from 
19.13 	the state auditor.

19.14 	Sec. 7. Minnesota Statutes 2014, section 424A.093, subdivision 6, is amended to read:
19.15 		Subd. 6.Municipal ratification for plan amendments. If the special fund of the 
19.16 	relief association does not have a surplus over full funding under subdivision 4, and 
19.17 	if the municipality is required to provide financial support to the special fund of the 
19.18 	relief association under this section, the adoption of or any amendment to the articles of 
19.19 	incorporation or bylaws of a relief association which increases or otherwise affects the 
19.20 	retirement coverage provided by or the service pensions or retirement benefits payable from 
19.21 	the special fund of any relief association to which this section applies is not effective until it 
19.22 	is ratified by the governing body of the municipality served by the fire department to which 
19.23 	the relief association is directly associated or by the independent nonprofit firefighting 
19.24 	corporation, as applicable. If the special fund of the relief association has a surplus 
19.25 	over full funding under subdivision 4, and if the municipality is not required to provide 
19.26 	financial support to the special fund of the relief association under this section, the relief 
19.27 	association may adopt or amend its articles of incorporation or bylaws which increase or 
19.28 	otherwise affect the retirement coverage provided by or the service pensions or retirement 
19.29 	benefits payable from the special fund of the relief association which are effective without 
19.30 	municipal ratification so long as this does not cause the amount of the resulting increase in 
19.31 	the accrued liability of the special fund of the relief association to exceed 90 percent of 
19.32 	the amount of the surplus over full funding reported in the prior year and this does not 
19.33 	result in the financial requirements of the special fund of the relief association exceeding 
19.34 	the expected amount of the future fire state aid and police and firefighter retirement 
19.35 	supplemental state aid to be received by the relief association as determined by the 
20.1 	board of trustees following the preparation of an updated actuarial valuation including 
20.2 	the proposed change or an estimate of the expected actuarial impact of the proposed 
20.3 	change prepared by the actuary of the relief association. If a relief association adopts or 
20.4 	amends its articles of incorporation or bylaws without municipal ratification pursuant to 
20.5 	this subdivision, and, subsequent to the amendment or adoption, the financial requirements 
20.6 	of the special fund of the relief association under this section are such so as to require 
20.7 	financial support from the municipality, the provision which was implemented without 
20.8 	municipal ratification is no longer effective without municipal ratification and any service 
20.9 	pensions or retirement benefits payable after that date may be paid only in accordance with 
20.10 	the articles of incorporation or bylaws as amended or adopted with municipal ratification.

20.11 	Sec. 8. EFFECTIVE DATE.
 20.12 	Sections 1 to 7 are effective the day following final enactment.

20.13 	ARTICLE 4
20.14 	RELIEF ASSOCIATION ESTABLISHMENT AND MEMBERSHIP ISSUES

20.15 	Section 1. Minnesota Statutes 2014, section 424A.001, is amended by adding a 
20.16 	subdivision to read:
20.17 		Subd. 12.Membership start date. Membership in a volunteer firefighters relief 
20.18 	association begins upon the date of hire by a municipality, a joint powers board, or an 
20.19 	independent nonprofit firefighting corporation with which the relief association is directly 
20.20 	associated, unless otherwise specified in the relief association bylaws.

20.21 	EFFECTIVE DATE. This section is effective January 1, 2016.

20.22 	Sec. 2. Minnesota Statutes 2014, section 424A.002, subdivision 1, is amended to read:
20.23 		Subdivision 1.Authorization. A municipal fire department or an independent 
20.24 	nonprofit firefighting corporation, with approval by the applicable municipality or 
20.25 	municipalities, may establish a new volunteer firefighters relief association or may retain 
20.26 	an existing volunteer firefighters relief association. A municipal fire department or an 
20.27 	independent nonprofit firefighting corporation may be associated with only one volunteer 
20.28 	firefighters relief association at one time.

20.29 	EFFECTIVE DATE. This section is effective the day following final enactment.