1.1                          A bill for an act 
  1.2             relating to retirement; changing provisions governing 
  1.3             deferred service pensions for volunteer firefighters; 
  1.4             amending Minnesota Statutes 1998, section 424A.02, 
  1.5             subdivision 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 424A.02, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [DEFERRED SERVICE PENSIONS.] A member of a relief 
  1.10  association to which this section applies is entitled to a 
  1.11  deferred service pension if the member:  
  1.12     (1) has completed the lesser of the minimum period of 
  1.13  active service with the fire department specified in the bylaws 
  1.14  or 20 years of active service with the fire department; 
  1.15     (2) has completed at least five years of active membership 
  1.16  in the relief association; and 
  1.17     (3) separates from active service and membership before 
  1.18  reaching age 50 or the minimum age for retirement and 
  1.19  commencement of a service pension specified in the bylaws 
  1.20  governing the relief association if that age is greater than age 
  1.21  50.  The deferred service pension starts when the former member 
  1.22  reaches age 50 or the minimum age specified in the bylaws 
  1.23  governing the relief association if that age is greater than age 
  1.24  50 and when the former member makes a valid written 
  1.25  application.  A relief association that provides a lump sum 
  2.1   service pension may, when its governing bylaws so provide, pay 
  2.2   interest on the deferred lump sum service pension during the 
  2.3   period of deferral.  If provided for, interest must be paid at 
  2.4   the rate determined by the governing bylaws, but not to exceed 
  2.5   the rate actually earned by the relief association~~, but not to~~ 
  2.6   ~~exceed the interest rate specified in section 356.215,~~ 
  2.7   ~~subdivision 4d, and~~.  Interest must be compounded annually based 
  2.8   on calendar year balances.  The deferred service pension is 
  2.9   governed by and must be calculated under the general statute, 
  2.10  special law, relief association articles of incorporation, or 
  2.11  relief association bylaw provisions applicable on the date on 
  2.12  which the member separated from active service with the fire 
  2.13  department and active membership in the relief association.