1.1 	A bill for an act
1.2 	relating to retirement; State Auditor's volunteer firefighter working group 
1.3 	recommendations; amending volunteer firefighters relief association provisions; 
1.4 	making conforming changes;amending Minnesota Statutes 2022, sections 
1.5 	424A.001, subdivisions 4, 5, 8, 9, 10; 424A.003; 424A.01, subdivisions 1, 2, 5; 
1.6 	424A.014, subdivision 1; 424A.015, subdivisions 1, 5, 7; 424A.016, subdivisions 
1.7 	2, 6; 424A.02, subdivisions 1, 3, 7, 9; 424A.021; 424A.092, subdivision 6; 
1.8 	424A.093, subdivision 6; 424A.094, subdivision 1; 424A.095, subdivision 2; 
1.9 	424A.10; 424B.22, subdivision 10.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	AUDIT THRESHOLD AND ADMINISTRATIVE CHANGES
1.13 	FOR RELIEF ASSOCIATIONS

1.14 	Section 1. Minnesota Statutes 2022, section 424A.014, subdivision 1, is amended to read:
1.15 		Subdivision 1.Financial report and audit. (a) An annual financial report and audited 
1.16 	financial statements in accordance with paragraphs (c) to (e) must be submitted by the board 
1.17 	of trustees of the Bloomington Fire Department Relief Association and the board of trustees 
1.18 	of each volunteer firefighters relief association with special fund assets of at least $500,000
1.19 	$750,000 or special fund liabilities of at least $500,000 $750,000, according to any previous 
1.20 	year's financial report.
1.21 	(b) The board of trustees of a volunteer firefighters relief association with special fund 
1.22 	assets of less than $500,000$750,000 and special fund liabilities of less than $500,000
1.23 	$750,000, according to each previous year's financial report, may submit an annual financial 
1.24 	report and audited financial statements in accordance with paragraphs (c) to (e).
2.1 	(c) The financial report must cover the relief association's special fund and general fund 
2.2 	and be in the style and form prescribed by the state auditor. The financial report must be 
2.3 	countersigned by:
2.4 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
2.5 	association is located if the relief association is directly associated with a municipal fire 
2.6 	department;
2.7 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
2.8 	contracts with the independent nonprofit firefighting corporation if the volunteer firefighter
2.9 	firefighters relief association is a subsidiary of an independent nonprofit firefighting 
2.10 	corporation, and by the secretary of the independent nonprofit firefighting corporation; or
2.11 	(3) the chief financial official of the county in which the volunteer firefighterfirefighters 
2.12 	relief association is located or primarily located if the relief association is associated with 
2.13 	a fire department that is not located in or associated with an organized municipality.
2.14 	(d) The financial report must be retained in the office of the Bloomington Fire Department 
2.15 	Relief Association or the volunteer firefighterfirefighters relief association for public 
2.16 	inspection and must be filed with the governing body of the government subdivision in 
2.17 	which the associated fire department is located after the close of the fiscal year. One copy 
2.18 	of the financial report must be furnished to the state auditor on or before June 30 after the 
2.19 	close of the fiscal year.
2.20 	(e) Audited financial statements that present the true financial condition of the relief 
2.21 	association's special fund and general fund must be attested to by a certified public accountant 
2.22 	or by the state auditor and must be filed with the state auditor on or before June 30 after the 
2.23 	close of the fiscal year. Audits must be conducted in compliance with generally accepted 
2.24 	auditing standards and section 6.65 governing audit procedures. The state auditor may accept 
2.25 	audited financial statements in lieu of the financial report required in paragraph (a).
2.26 	(f) A firefighters relief association with special fund assets of less than $750,000 and 
2.27 	special fund liabilities of less than $750,000 on December 31, 2023, is not required to submit 
2.28 	audited financial statements unless and until the special fund assets or special fund liabilities 
2.29 	exceed $750,000, even if audited financial statements were required on the date immediately 
2.30 	prior to the effective date.

2.31 	EFFECTIVE DATE. This section is effective December 31, 2023, and applies to 
2.32 	audited financial statements for calendar year 2023 and thereafter.

3.1 	Sec. 2. Minnesota Statutes 2022, section 424A.092, subdivision 6, is amended to read:
3.2 		Subd. 6.Municipal ratification for bylaws amendments. (a) The board of trustees of 
3.3 	a relief association may adopt an amendment to the articles of incorporation or bylaws that 
3.4 	increases the coverage, service pensions, or retirement benefits provided by the relief 
3.5 	association only after preparing an estimate of the expected increase in the financial 
3.6 	requirements andchange to the accrued liability and the overall funding balance of the 
3.7 	special fund resulting from the amendment.
3.8 	(b) For purposes of this subdivision, "financial requirements""overall funding balance" 
3.9 	means the amount of the surplus or deficit calculated under subdivision 3, paragraph (c)
3.10 	(b). "Accrued liability" means the amount calculated under subdivision 2 or 2a, as applicable. 
3.11 	"Estimate" means the estimate required in paragraph (a).
3.12 	(c) If the special fund of a relief association to which this section applies does not have 
3.13 	a surplus overhas a deficit from full funding under subdivision 3, paragraph (c) (b), clause 
3.14 	(5) (3), and if the municipality is required to provide financial support to the special fund 
3.15 	under this section has a minimum obligation under subdivision 3, paragraph (d), the board 
3.16 	of trustees of the relief association may adopt anany amendment to the articles of 
3.17 	incorporation or bylaws adopted by the relief association that increases the coverage, service 
3.18 	pensions, or retirement benefits provided by the relief association. The amendment is not 
3.19 	effective until it is ratified by the governing body of the affiliated municipality or independent 
3.20 	nonprofit firefighting corporation, as applicable. The governing body may ratify such 
3.21 	amendment only if the relief association has delivered to the governing body the estimate 
3.22 	described in paragraphs (a) and (b), certified by an officer of the relief association.
3.23 	(d) If the special fund of a relief association to which this section applies is fully funded 
3.24 	or has a surplus over full funding under subdivision 3, paragraph (c) (b), clause (5) (3), and 
3.25 	if the municipality is not required to provide financial support under subdivision 3, paragraph 
3.26 	(d), to the special fund under this section, the relief association may adopt an amendment 
3.27 	to the articles of incorporation or bylaws that increases the coverage, service pensions, or 
3.28 	retirement benefits provided by the relief association. (1) TheAny such adopted amendment 
3.29 	is effective if the municipality ratifies the amendment. (2) The amendment is effective 
3.30 	without municipal ratificationor, in the absence of municipal ratification, if the amendment 
3.31 	satisfies paragraph (e).
3.32 	(e) An amendment satisfies this paragraph if the estimate described in paragraphs (a) 
3.33 	and (b) demonstrates that the amendment will not cause:
4.1 	(1) the amount of the resulting increase in the accrued liability of the special fund to 
4.2 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year; 
4.3 	and
4.4 	(2) the financial requirements of the special fund to exceed the expected amount of the 
4.5 	future fire state aid and police and firefighter retirement supplemental state aid to be received 
4.6 	by the relief association. an increase in the minimum obligation of the municipality for the 
4.7 	upcoming calendar year under subdivision 3, paragraph (d); and
4.8 	(3) the special fund of the relief association to have a deficit from full funding under 
4.9 	subdivision 3, paragraph (c), clause (5), on the day immediately following the adoption of 
4.10 	the amendment.
4.11 	(f) If a relief association amends the articles of incorporation or bylaws without municipal 
4.12 	ratification under this subdivision, and, subsequent to the amendment, the financial 
4.13 	requirements of the special fund of the relief association under this section are such so as 
4.14 	to require financial support fromrequires an increase in the minimum obligation of the 
4.15 	municipality under subdivision 3, paragraph (d), the provision whichthat was implemented 
4.16 	without municipal ratification is no longer effective and any service pensions or retirement 
4.17 	benefits payable after that date may be paid only in accordance with the articles of 
4.18 	incorporation or bylaws as amended with municipal ratification.

4.19 	EFFECTIVE DATE. This section is effective January 1, 2024.

4.20 	Sec. 3. Minnesota Statutes 2022, section 424A.093, subdivision 6, is amended to read:
4.21 		Subd. 6.Municipal ratification for bylaws amendments. (a) The board of trustees of 
4.22 	a relief association may adopt an amendment to the articles of incorporation or bylaws that 
4.23 	increases the coverage, service pensions, or retirement benefits provided by the relief 
4.24 	association only after the board of trustees has had an updated actuarial valuation including 
4.25 	the proposed change or an estimate of the expected actuarial impact of the proposed change 
4.26 	prepared by the actuary of the relief association.
4.27 	(b) If the special fund of a relief association to which this section applies does not have 
4.28 	a surplus overhas a deficit from full funding under subdivision 4, andor if the municipality 
4.29 	is required to provide financial support to the special fundhas a minimum municipal 
4.30 	obligation under this section subdivision 5, the board of trustees of the relief association 
4.31 	may adopt an amendment to the articles of incorporation or bylaws that increases the 
4.32 	coverage, service pensions, or retirement benefits provided by the relief association. The 
4.33 	amendment is not effective until it is ratified by the governing body of the affiliated 
5.1 	municipality or independent nonprofit firefighting corporation, as applicable. The governing 
5.2 	body may ratify such amendment only if the relief association has delivered to the governing 
5.3 	body the actuarial valuation or estimate described in paragraph (a), certified by an officer 
5.4 	of the relief association.
5.5 	(c) If the special fund of a relief association to which this section applies is fully funded 
5.6 	or has a surplus over full funding under subdivision 4, and if the municipality isdoes not 
5.7 	required to provide financial support to the special fundhave a minimum municipal obligation 
5.8 	under this section subdivision 5, the relief association may adopt an amendment to the 
5.9 	articles of incorporation or bylaws that increases the coverage, service pensions, or retirement 
5.10 	benefits provided by the relief association. The amendment is effective:
5.11 	(1) if the municipality ratifies the amendment; or
5.12 	(2) without municipal ratification if the amendment satisfies paragraph (d).
5.13 	(d) An amendment satisfies this paragraph if the actuarial valuation or estimate described 
5.14 	in paragraph (a) demonstrates that the amendment will not cause:
5.15 	(1) the amount of the resulting increase in the accrued liability of the special fund to 
5.16 	exceed 90 percent of the amount of the surplus over full funding reported in the prior year;
5.17 	and
5.18 	(2) the financial requirements of the special fund to exceed the expected amount of the 
5.19 	future fire state aid and police and firefighter retirement supplemental state aid to be received 
5.20 	by the relief association. an increase in the minimum obligation of the municipality for the 
5.21 	upcoming calendar year; and
5.22 	(3) the special fund of the relief association to have a deficit from full funding under 
5.23 	subdivision 4 on the day immediately following the adoption of the amendment.
5.24 	(e) If a relief association amends its articles of incorporation or bylaws without municipal 
5.25 	ratification pursuant to this subdivision, and, subsequent to the amendment, the financial 
5.26 	requirements of the special fund of the relief association under this section are such so as 
5.27 	to requirerequires financial support from the municipality under this section, the provision 
5.28 	which was implemented without municipal ratification is no longer effective and any service 
5.29 	pensions or retirement benefits payable after that date may be paid only in accordance with 
5.30 	the articles of incorporation or bylaws as amended with municipal ratification.

5.31 	EFFECTIVE DATE. This section is effective January 1, 2024.

6.1 	Sec. 4. Minnesota Statutes 2022, section 424B.22, subdivision 10, is amended to read:
6.2 		Subd. 10.Supplemental benefits. Within 60 days after the distribution of benefits under 
6.3 	subdivision 8, the municipality or firefighting corporation with which the fire department 
6.4 	is affiliated shall pay supplemental benefits under section 424A.10 to each participant and 
6.5 	survivor who satisfies the requirements of section 424A.10, subdivision 2,. A supplemental 
6.6 	benefit is payable to each participant who receives a service pension if the participant is at 
6.7 	least age 50. A supplemental benefit is payable to each participant or survivor who receives 
6.8 	a disability benefit or survivor benefit without regard to any minimum age requirement. 
6.9 	The commissioner of revenue shall reimburse the municipality or independent nonprofit 
6.10 	firefighting corporation for all supplemental benefits paid as provided in section 424A.10, 
6.11 	subdivision 3.

6.12 	EFFECTIVE DATE. This section is effective for supplemental benefits reimbursed in 
6.13 	calendar year 2024 and thereafter.

6.14 	ARTICLE 2
6.15 	MODIFYING THE DEFINITION OF "FIREFIGHTER";
6.16 	TECHNICAL AND CONFORMING CHANGES

6.17 	Section 1. Minnesota Statutes 2022, section 424A.001, subdivision 4, is amended to read:
6.18 		Subd. 4.Relief association. (a) "Relief association" or "volunteer firefighters relief 
6.19 	association" means a volunteer firefighters relief association or a volunteer firefighters 
6.20 	division or account of a partially salaried and partially volunteer firefighters relief association
6.21 	that is:
6.22 	(1) organized and incorporated as a nonprofit corporation to provide retirement benefits 
6.23 	to volunteer firefighters and paid on-call firefighters under chapter 317A and any laws of 
6.24 	the state;
6.25 	(2) governed by this chapter and sections 424A.091 to 424A.095; and
6.26 	(3) directly associated with:
6.27 	(i) a fire department established by municipal ordinance;
6.28 	(ii) an independent nonprofit firefighting corporation that is organized under the 
6.29 	provisions of chapter 317A and that operates primarily for firefighting purposes; or
6.30 	(iii) a fire department operated as or by a joint powers entity that operates primarily for 
6.31 	firefighting purposes.
6.32 	(b) "Relief association" or "volunteer firefighters relief association" does not mean:
7.1 	(1) the Bloomington Fire Department Relief Association governed by Laws 2013, chapter 
7.2 	111, article 5, sections 31 to 42; Minnesota Statutes 2000, chapter 424; and Laws 1965, 
7.3 	chapter 446, as amended; or
7.4 	(2) the statewide volunteer firefighter plan governed by chapter 353G.
7.5 	(c) A relief association or volunteer firefighters relief association is a governmental 
7.6 	entity that receives and manages public money to provide retirement benefits for individuals 
7.7 	providing the governmental services of firefighting and emergency first response.

7.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

7.9 	Sec. 2. Minnesota Statutes 2022, section 424A.001, subdivision 5, is amended to read:
7.10 		Subd. 5.Special fund. "Special fund" means the special fund of a volunteer firefighters 
7.11 	relief association or the account for volunteer firefighters within the special fund of a partially 
7.12 	salaried and partially volunteer firefighters relief association.

7.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

7.14 	Sec. 3. Minnesota Statutes 2022, section 424A.001, subdivision 8, is amended to read:
7.15 		Subd. 8.Firefighting service. "Firefighting service," if the applicable municipality 
7.16 	approves for a fire department that is a municipal department, or if the applicable contracting 
7.17 	municipality or municipalities approve for a fire department that is an independent nonprofit 
7.18 	firefighting corporation, includes fire department service renderedmeans duties performed 
7.19 	by firefighters and, if approved by the appropriate municipality or municipalities, duties 
7.20 	performed by fire prevention personnel.

7.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

7.22 	Sec. 4. Minnesota Statutes 2022, section 424A.001, subdivision 9, is amended to read:
7.23 		Subd. 9.Separate from active service. "Separate from active service" means that a 
7.24 	firefighter permanently ceases to perform fire suppression duties with a particular volunteer
7.25 	fire department, permanently ceases to perform fire prevention duties, permanently ceases 
7.26 	to supervise fire suppression duties, and permanently ceases to supervise fire prevention 
7.27 	duties.

7.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

8.1 	Sec. 5. Minnesota Statutes 2022, section 424A.001, subdivision 10, is amended to read:
8.2 		Subd. 10.Volunteer Firefighter. "Volunteer Firefighter" means a person who is a 
8.3 	member of the applicable fire department or the independent nonprofit firefighting 
8.4 	corporationone or more of the following:
8.5 	(1) "volunteer firefighter" means a firefighter who does not receive compensation per 
8.6 	call or hour for firefighting services but who may receive reimbursement for expenses, who 
8.7 	has a choice of availability in providing services with the fire department, and who is eligible 
8.8 	for membership in the applicablea relief association and: associated with the fire department 
8.9 	or participates in the statewide volunteer firefighter plan under chapter 353G;
8.10 	(i) is engaged in providing emergency response services or delivering fire education or 
8.11 	prevention services as a member of a fire department;
8.12 	(ii) is trained in or is qualified to provide fire suppression duties or to provide fire 
8.13 	prevention duties under subdivision 8; and
8.14 	(iii) meets any other minimum firefighter and service standards established by the fire 
8.15 	department or specified in the articles of incorporation or bylaws of the relief association.
8.16 	(2) "paid on-call firefighter" means a firefighter who receives compensation per call or 
8.17 	per hour for firefighting services, who has a choice of availability in providing services with 
8.18 	the fire department, and who is eligible for membership in a relief association associated 
8.19 	with the fire department or participates in the statewide volunteer firefighter plan under 
8.20 	chapter 353G;
8.21 	(3) "part-time firefighter" means a firefighter who receives compensation per call or per 
8.22 	hour for firefighting services, whose services with the fire department are scheduled and 
8.23 	who, as a result of providing firefighting services, is a member or is eligible to be a member 
8.24 	of a fund operated pursuant to chapter 353 other than the statewide volunteer firefighter 
8.25 	plan under chapter 353G; and
8.26 	(4) "full-time firefighter" or "career firefighter" means a firefighter who receives 
8.27 	compensation per hour or through a salary for firefighting services, whose services with 
8.28 	the fire department are scheduled and who, as a result of providing firefighting services, is 
8.29 	a member or is eligible to be a member of a fund operated pursuant to chapter 353 other 
8.30 	than the statewide volunteer firefighter plan under chapter 353G.

8.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

9.1 	Sec. 6. Minnesota Statutes 2022, section 424A.003, is amended to read:
9.2 	424A.003 CERTIFICATION OF SERVICE CREDIT.
9.3 	(a) When a municipal fire department, a joint powers fire department, or an independent 
9.4 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
9.5 	association, the fire chief shall certify annually by March 31 the service credit for the 
9.6 	previous calendar year of each volunteer firefighter and paid on-call firefighter rendering 
9.7 	active service with the fire department.
9.8 	(b) The certification shall be made to an officer of the relief association's board of trustees 
9.9 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
9.10 	by the associated fire department.
9.11 	(c) The fire chief shall notify each volunteer firefighter and paid on-call firefighter 
9.12 	rendering active service with the fire department of the amount of service credit rendered 
9.13 	by the firefighter for the previous calendar year. Upon request, the fire chief shall provide 
9.14 	the firefighter with a written explanation and documentation to support the determination 
9.15 	of service credit. The service credit notification and a description of the process and deadlines 
9.16 	for the firefighter to challenge the fire chief's determination of service credit must be provided 
9.17 	to the firefighter at least 21 days prior to its certification to the relief association and 
9.18 	municipality. If the service credit amount is challenged, the fire chief shall accept and 
9.19 	consider any additional pertinent information and shall make a final determination of service 
9.20 	credit.
9.21 	(d) The service credit certification must be expressed as the number of completed months 
9.22 	of the previous year during which an active volunteer firefighter or paid on-call firefighter 
9.23 	rendered at least the minimum level of duties as specified and required by the fire department 
9.24 	under the rules, regulations, and policies applicable to the fire department. No more than 
9.25 	one year of service credit may be certified for a calendar year.
9.26 	(e) If a volunteer firefighter or paid on-call firefighter who is a member of the relief 
9.27 	association leaves active firefighting service to render active military service that is required 
9.28 	to be governed by the federal Uniformed Services Employment and Reemployment Rights 
9.29 	Act, as amended, the firefighter must be certified as providing service credit for the period 
9.30 	of the military service, up to the applicable limit of the federal Uniformed Services 
9.31 	Employment and Reemployment Rights Act. If the volunteer firefighter or paid on-call 
9.32 	firefighter does not return from the military service in compliance with the federal Uniformed 
9.33 	Services Employment and Reemployment Rights Act, the service credits applicable to that 
10.1 	military service credit period are forfeited and canceled at the end of the calendar year in 
10.2 	which the time limit set by federal law occurs.

10.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

10.4 	Sec. 7. Minnesota Statutes 2022, section 424A.01, subdivision 1, is amended to read:
10.5 		Subdivision 1.Minors Membership eligibility. No volunteer(a) A firefighter or any 
10.6 	volunteer emergency medical personnel is eligible for membership in a firefighters relief 
10.7 	association associated with aif the firefighter or volunteer emergency medical personnel 
10.8 	satisfies the requirements of paragraph (b) or (c), as applicable, and is not otherwise 
10.9 	prohibited from membership under this chapter.
10.10 	(b) To be eligible for membership in a relief association, a firefighter must be a member 
10.11 	of the fire department and:
10.12 	(1) provide services as a volunteer firefighter or as a paid on-call firefighter, although 
10.13 	the firefighter need not exclusively provide services as either a volunteer firefighter or a 
10.14 	paid on-call firefighter;
10.15 	(2) be engaged in providing emergency response services or delivering fire education 
10.16 	or prevention services as a member of a fire department;
10.17 	(3) be trained in or qualified to provide fire suppression duties or to provide fire 
10.18 	prevention duties; and
10.19 	(4) meet any other minimum firefighter and service standards established by the fire 
10.20 	department or specified in the articles of incorporation or bylaws of the firefighters relief 
10.21 	association.
10.22 	(c) Any volunteer emergency medical personnel is eligible to be a member of the 
10.23 	firefighters relief association and to qualify for a service pension or other benefit coverage 
10.24 	of the relief association on the same basis as fire department personnel who perform or 
10.25 	supervise fire suppression or fire prevention duties if:
10.26 	(1) the fire department employs or otherwise uses the services of the person solely as 
10.27 	volunteer emergency medical personnel to perform emergency medical response duties or 
10.28 	supervise emergency medical response activities;
10.29 	(2) the bylaws of the firefighters relief association authorize the volunteer emergency 
10.30 	medical personnel's eligibility; and
10.31 	(3) the volunteer emergency medical personnel's eligibility is approved by:
11.1 	(i) the municipality, a if the fire department is a municipal department;
11.2 	(ii) the joint powers entity board, if the fire department is a joint powers entity; or
11.3 	(iii) the contracting municipality or municipalities, if the fire department is an independent 
11.4 	nonprofit firefighting corporation may include as a.
11.5 	(d) Minors are prohibited from membership in a firefighters relief association member 
11.6 	a minor serving as a volunteer firefighter.

11.7 	EFFECTIVE DATE. This section is effective January 1, 2024.

11.8 	Sec. 8. Minnesota Statutes 2022, section 424A.01, subdivision 2, is amended to read:
11.9 		Subd. 2.Status of substitute volunteer firefighters. No person who is serving as a 
11.10 	substitute volunteer firefighter may be considered to be a firefighter for purposes of chapter 
11.11 	477B or this chapter and no substitute volunteer firefighter is authorized to be a member of 
11.12 	any volunteer firefighters relief association governed by chapter 477B or this chapter.

11.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

11.14 	Sec. 9. Minnesota Statutes 2022, section 424A.01, subdivision 5, is amended to read:
11.15 		Subd. 5.Fire prevention personnel. (a) If the applicable municipality or municipalities 
11.16 	approve, the fire department may employ or otherwise utilize the services of persons as 
11.17 	volunteer firefighters to perform fire prevention duties and to supervise fire prevention 
11.18 	activities.
11.19 	(b) PersonnelVolunteer firefighters and paid on-call firefighters serving in fire prevention 
11.20 	positions are eligible to be members of the applicable volunteer firefighterfirefighters relief 
11.21 	association and to qualify for service pension or other benefit coverage of the relief 
11.22 	association on the same basis as fire department personnel who perform fire suppression 
11.23 	duties.
11.24 	(c) PersonnelVolunteer firefighters and paid on-call firefighters serving in fire prevention 
11.25 	positions also are eligible to receive any other benefits under the applicable law or practice 
11.26 	for services on the same basis as personnel who are employed to perform fire suppression 
11.27 	duties.

11.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

12.1 	Sec. 10. Minnesota Statutes 2022, section 424A.015, subdivision 1, is amended to read:
12.2 		Subdivision 1.Separation from active service; exception. (a) No service pension is 
12.3 	payable to a person while the person remains an active member of the respective fire 
12.4 	department, and a person who is receiving a service pension is not entitled to receive any 
12.5 	other benefits from the special fund of the relief association.
12.6 	(b) No relief association as defined in section 424A.001, subdivision 4, may pay a service 
12.7 	pension or disability benefit to a former member of the relief association if that person has 
12.8 	not separated from active service with the fire department to which the relief association is 
12.9 	directly associated, unless:
12.10 	(1) the person discontinues volunteer firefighter and paid on-call firefighter duties with 
12.11 	the fire department and performs duties within the fire department on a part-time or full-time 
12.12 	basis;
12.13 	(2) the governing body of the municipality, of the independent nonprofit firefighting 
12.14 	corporation, or of the joint powers entity has filed its determination with the board of trustees 
12.15 	of the relief association that the person's experience with and service to the fire department 
12.16 	in that person's part-time or full-time capacity would be difficult to replace; and
12.17 	(3) the bylaws of the relief association were amended to provide for the payment of a 
12.18 	service pension or disability benefit for such part-time or full-time employees.

12.19 	EFFECTIVE DATE. This section is effective July 1, 2024.

12.20 	Sec. 11. Minnesota Statutes 2022, section 424A.015, subdivision 5, is amended to read:
12.21 		Subd. 5.Minnesota deferred compensation plan transfers. A relief association may 
12.22 	directly transfer on an institution-to-institution basis the eligible member's lump-sum pension 
12.23 	amount to the requesting member's account in the Minnesota deferred compensation plan, 
12.24 	if:
12.25 	(1) the governing articles of incorporation or bylaws so provide;
12.26 	(2) the volunteer firefighter participates in the Minnesota deferred compensation plan 
12.27 	at the time of retirement; and
12.28 	(3) the applicable retiring firefighter requests in writing that the relief association do so.

12.29 	EFFECTIVE DATE. This section is effective July 1, 2024.

13.1 	Sec. 12. Minnesota Statutes 2022, section 424A.015, subdivision 7, is amended to read:
13.2 		Subd. 7.Combined service pensions. (a) A member with credit for service as an active 
13.3 	firefighter in more than one volunteer firefighters relief association is entitled to a service 
13.4 	pension from each participating relief association if:
13.5 	(1) the articles of incorporation or bylaws of the relief associations provide for such 
13.6 	combined service pensions;
13.7 	(2) the applicable requirements of paragraphs (b) to (e) are met; and
13.8 	(3) the member otherwise qualifies.
13.9 	(b) A member receiving a service pension under this subdivision must be at least partially 
13.10 	vested under the bylaws of the first participating relief association on the date on which the 
13.11 	member terminates active service with that relief association. The service pension paid from 
13.12 	the first participating relief association shall be based on the years of active service accrued 
13.13 	in the first relief association and the vesting percentage applicable to those years of active 
13.14 	service.
13.15 	(c) To receive a service pension from each subsequent relief association, the member 
13.16 	must be at least partially vested under the bylaws of the subsequent relief association, taking 
13.17 	into consideration the member's total service credit accrued in all participating relief 
13.18 	associations to the date the member terminates active service with the subsequent relief 
13.19 	association. The service pension paid from each subsequent relief association shall be based 
13.20 	on the years of active service accrued solely in that relief association and the vesting 
13.21 	percentage applicable to the combined amount of total service credit accrued in all of the 
13.22 	participating relief associations.
13.23 	(d) The member must have one or more years of service credit in each participating 
13.24 	relief association. The service pension must be based on:
13.25 	(1) for defined benefit relief associations, the service pension amount in effect for the 
13.26 	relief association on the date on which the member's active volunteer firefighting services 
13.27 	covered by that relief association terminate; and
13.28 	(2) for defined contribution relief associations, the member's individual account balance 
13.29 	on the date on which the member's active volunteer firefighting services covered by that 
13.30 	relief association terminate.
13.31 	(e) To receive a service pension under this subdivision, the member must become a 
13.32 	member of the subsequent relief association within two years of the date of termination of 
13.33 	active service with the prior relief association. If requested by the member or a subsequent 
14.1 	relief association, the secretary of each prior relief association must provide written notice 
14.2 	to the member and the subsequent relief association regarding the amount of active service 
14.3 	accrued by the member in the prior relief association.

14.4 	EFFECTIVE DATE. This section is effective July 1, 2024.

14.5 	Sec. 13. Minnesota Statutes 2022, section 424A.016, subdivision 2, is amended to read:
14.6 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
14.7 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
14.8 	special fund a defined contribution service pension to each of its members who:
14.9 	(1) separates from active service with the fire department;
14.10 	(2) reaches age 50;
14.11 	(3) completes at least five years of active service as an active member of the fire 
14.12 	department to which the relief association is associated;
14.13 	(4) completes at least five years of active membership with the relief association before 
14.14 	separation from active service; and
14.15 	(5) complies with any additional conditions as to age, service, and membership that are 
14.16 	prescribed by the bylaws of the relief association.
14.17 	(b) In the case of a member who has completed at least five years of active service as 
14.18 	an active member of the fire department to which the relief association is associated on the 
14.19 	date that the relief association is established and incorporated, the requirement that the 
14.20 	member complete at least five years of active membership with the relief association before 
14.21 	separation from active service may be waived by the board of trustees of the relief association 
14.22 	if the member completes at least five years of inactive membership with the relief association 
14.23 	before the date of the payment of the service pension. During the period of inactive 
14.24 	membership, the member is not entitled to receive any disability benefit coverage, is not 
14.25 	entitled to receive additional individual account allocation of fire state aid or municipal 
14.26 	contribution towards toward a service pension, and is considered to have the status of a 
14.27 	person entitled to a deferred service pension.
14.28 	(c) The service pension earned by a volunteerfirefighter under this chapter and the 
14.29 	articles of incorporation and bylaws of the relief association may be paid whether or not 
14.30 	the municipality or independent nonprofit firefighting corporation to which the relief 
14.31 	association is associated qualifies for the receipt of fire state aid under chapter 477B.

14.32 	EFFECTIVE DATE. This section is effective July 1, 2024.

15.1 	Sec. 14. Minnesota Statutes 2022, section 424A.016, subdivision 6, is amended to read:
15.2 		Subd. 6.Deferred service pensions. (a) A "deferred member" means a member of a 
15.3 	relief association who has separated from active service and membership and has completed 
15.4 	the minimum service and membership requirements in subdivision 2. The requirement that 
15.5 	a member separate from active service and membership is waived for persons who have 
15.6 	discontinued their volunteer firefighter and paid on-call firefighter duties and who are 
15.7 	employed on a part-time or full-time basis under section 424A.015, subdivision 1.
15.8 	(b) A deferred member is entitled to receive a deferred service pension when the member 
15.9 	reaches at least age 50, or at least the minimum age specified in the bylaws governing the 
15.10 	relief association if that age is greater than age 50, and makes a valid written application.
15.11 	(c) A defined contribution relief association must credit interest or additional investment 
15.12 	performance on the deferred lump-sum service pension during the period of deferral for all 
15.13 	deferred members on or after January 1, 2021. A defined contribution relief association 
15.14 	may specify in its bylaws the method by which it will credit interest or additional investment 
15.15 	performance to the accounts of deferred members. Such method shall be limited to one of 
15.16 	the three methods provided in this paragraph. In the event the bylaws do not specify a 
15.17 	method, the interest or additional investment performance must be credited using the method 
15.18 	defined in clause (3). The permissible methods are:
15.19 	(1) at the investment performance rate actually earned on that portion of the assets if the 
15.20 	deferred benefit amount is invested by the relief association in a separate account established 
15.21 	and maintained by the relief association;
15.22 	(2) at the investment performance rate actually earned on that portion of the assets if the 
15.23 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
15.24 	association; or
15.25 	(3) at the investment return on the assets of the special fund of the defined contribution 
15.26 	volunteer firefighters relief association in proportion to the share of the assets of the special 
15.27 	fund to the credit of each individual deferred member account through the accounting date 
15.28 	on which the investment return is recognized by and credited to the special fund.
15.29 	(d) Notwithstanding the requirements of section 424A.015, subdivision 6, bylaw 
15.30 	amendments made in accordance with paragraph (c) on or before January 1, 2022, shall 
15.31 	apply to members already in deferred status as of January 1, 2021.
16.1 	(e) Unless the bylaws provide differently, the dates that will be used by a relief association 
16.2 	in determining the creditable amount of interest or additional investment performance on 
16.3 	a deferred service pension shall be as follows:
16.4 	(1) for a relief association that has elected to credit interest or additional investment 
16.5 	performance under paragraph (c), clause (1) or (3), beginning on the date that the member 
16.6 	separates from active service and membership and ending on the accounting date immediately 
16.7 	before the deferred member commences receipt of the deferred service pension; or
16.8 	(2) for a relief association that has elected to credit interest or additional investment 
16.9 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
16.10 	from active service and membership and ending on the date that the separate investment 
16.11 	vehicle is valued immediately before the date on which the deferred member commences 
16.12 	receipt of the deferred service pension.

16.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

16.14 	Sec. 15. Minnesota Statutes 2022, section 424A.02, subdivision 1, is amended to read:
16.15 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
16.16 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
16.17 	benefit service pension to each of its members who: (1) separates from active service with 
16.18 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
16.19 	as an active member of the fire department to which the relief association is associated; (4) 
16.20 	completes at least five years of active membership with the relief association before 
16.21 	separation from active service; and (5) complies with any additional conditions as to age, 
16.22 	service, and membership that are prescribed by the bylaws of the relief association. A service 
16.23 	pension computed under this section may be prorated monthly for fractional years of service 
16.24 	as the bylaws or articles of incorporation of the relief association so provide. The bylaws 
16.25 	or articles of incorporation may define a "month," but the definition must require a calendar 
16.26 	month to have at least 16 days of active service. If the bylaws or articles of incorporation 
16.27 	do not define a "month," a "month" is a completed calendar month of active service measured 
16.28 	from the member's date of entry to the same date in the subsequent month. The service 
16.29 	pension earned by a volunteer firefighter under this chapter and the articles of incorporation 
16.30 	and bylaws of the volunteer firefighters relief association may be paid whether or not the 
16.31 	municipality or independent nonprofit firefighting corporation to which the relief association 
16.32 	is associated qualifies for the receipt of fire state aid under chapter 477B.
16.33 	(b) In the case of a member who has completed at least five years of active service as 
16.34 	an active member of the fire department to which the relief association is associated on the 
17.1 	date that the relief association is established and incorporated, the requirement that the 
17.2 	member complete at least five years of active membership with the relief association before 
17.3 	separation from active service may be waived by the board of trustees of the relief association 
17.4 	if the member completes at least five years of inactive membership with the relief association 
17.5 	before the date of the payment of the service pension. During the period of inactive 
17.6 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
17.7 	to receive additional service credit towards toward computation of a service pension, and 
17.8 	is considered to have the status of a person entitled to a deferred service pension under 
17.9 	subdivision 7.
17.10 	(c) No municipality, independent nonprofit firefighting corporation, or joint powers 
17.11 	entity may delegate the power to take final action in setting a service pension or ancillary 
17.12 	benefit amount or level to the board of trustees of the relief association or to approve in 
17.13 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
17.14 	or level that this chapter would allow rather than a specific dollar amount or level.

17.15 	EFFECTIVE DATE. This section is effective July 1, 2024.

17.16 	Sec. 16. Minnesota Statutes 2022, section 424A.02, subdivision 3, is amended to read:
17.17 		Subd. 3.Determining maximum pension benefit. (a) Except as provided in paragraph 
17.18 	(b) and section 424B.22, subdivision 4, a defined benefit relief association may not set in 
17.19 	its bylaws a service pension amount above the following maximum amounts:
17.20 	(1) for a defined benefit relief association in which the governing bylaws provide for a 
17.21 	monthly service pension, the maximum monthly service pension amount per month for each 
17.22 	year of service credited is the lesser of $100 or the maximum monthly service pension 
17.23 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
17.24 	section 424A.093, subdivision 6, paragraph (d); and
17.25 	(2) for a defined benefit relief association in which the governing bylaws provide for a 
17.26 	lump-sum service pension, the maximum lump-sum service pension amount for each year 
17.27 	of service credited is the lesser of $15,000 or the maximum lump-sum service pension 
17.28 	amount that could be adopted by the relief association as a bylaws amendment that satisfies 
17.29 	section 424A.092, subdivision 6, paragraph (e).
17.30 	(b) A defined benefit relief association may set in its bylaws a service pension amount 
17.31 	that is not greater than the maximum amounts in clause (1) or (2), as applicable, but only 
17.32 	if the service pension amount has been ratified by the municipality.
18.1 	(1) For a defined benefit relief association that pays a monthly service pension, the 
18.2 	maximum monthly service pension amount per month for each year of service credited is 
18.3 	$100.
18.4 	(2) For a defined benefit relief association that pays a lump-sum service pension, the 
18.5 	maximum lump-sum service pension amount for each year of service credited is $15,000.
18.6 	(c) The method of calculating service pensions must be applied uniformly for all years 
18.7 	of active service. Credit must be given for all years of active service, unless the bylaws of 
18.8 	the relief association provide that service credit is not given for:
18.9 	(1) years of active service in excess of caps on service credit; or
18.10 	(2) years of active service earned by a former member who:
18.11 	(i) has ceased duties as a volunteer firefighter and paid on-call firefighter with the fire 
18.12 	department before becoming vested under subdivision 2; and
18.13 	(ii) has not resumed active service with the fire department and active membership in 
18.14 	the relief association for a period as defined in the relief association's bylaws, of not less 
18.15 	than five years.

18.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

18.17 	Sec. 17. Minnesota Statutes 2022, section 424A.02, subdivision 7, is amended to read:
18.18 		Subd. 7.Deferred service pensions. (a) A member of a defined benefit relief association 
18.19 	is entitled to a deferred service pension if the member separates from active service and 
18.20 	membership and has completed the minimum service and membership requirements in 
18.21 	subdivision 1. The requirement that a member separate from active service and membership 
18.22 	is waived for persons who have discontinued their volunteer firefighter and paid on-call 
18.23 	firefighter duties and who are employed on a part-time or full-time basis under section 
18.24 	424A.015, subdivision 1.
18.25 	(b) The deferred service pension is payable when the former member reaches at least 
18.26 	age 50, or at least the minimum age specified in the bylaws governing the relief association 
18.27 	if that age is greater than age 50, and when the former member makes a valid written 
18.28 	application.
18.29 	(c) A defined benefit relief association that provides a lump-sum service pension governed 
18.30 	by subdivision 2c may, when its governing bylaws so provide, credit interest on the deferred 
18.31 	lump-sum service pension during the period of deferral. If provided for in the bylaws, interest 
18.32 	must be credited in one of the following manners:
19.1 	(1) at the investment performance rate actually earned on that portion of the assets if the 
19.2 	deferred benefit amount is invested by the relief association in a separate account established 
19.3 	and maintained by the relief association;
19.4 	(2) at the investment performance rate actually earned on that portion of the assets if the 
19.5 	deferred benefit amount is invested in a separate investment vehicle held by the relief 
19.6 	association; or
19.7 	(3) at an interest rate of up to five percent, compounded annually, as set by the board of 
19.8 	trustees.
19.9 	(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause 
19.10 	(3), must be ratified by the governing body of the municipality or joint powers entity served 
19.11 	by the fire department to which the relief association is directly associated, or by the 
19.12 	independent nonprofit firefighting corporation, as applicable.
19.13 	(e) Interest under paragraph (c), clause (3), is credited beginning on the January 1 next 
19.14 	following the date on which the deferred service pension interest rate as set by the board of 
19.15 	trustees was ratified by the governing body of the municipality or joint powers entity served 
19.16 	by the fire department to which the relief association is directly associated, or by the 
19.17 	independent nonprofit firefighting corporation, as applicable.
19.18 	(f) Unless the bylaws of a relief association that has elected to credit interest or additional 
19.19 	investment performance on deferred lump-sum service pensions under paragraph (c) specifies 
19.20 	a different interest or additional investment performance method, including the interest or 
19.21 	additional investment performance period starting date and ending date, the interest or 
19.22 	additional investment performance on a deferred service pension is creditable as follows:
19.23 	(1) for a relief association that has elected to credit interest or additional investment 
19.24 	performance under paragraph (c), clause (1) or (3), beginning on the first day of the month 
19.25 	next following the date on which the member separates from active service and membership 
19.26 	and ending on the last day of the month immediately before the month in which the deferred 
19.27 	member commences receipt of the deferred service pension; or
19.28 	(2) for a relief association that has elected to credit interest or additional investment 
19.29 	performance under paragraph (c), clause (2), beginning on the date that the member separates 
19.30 	from active service and membership and ending on the date that the separate investment 
19.31 	vehicle is valued immediately before the date on which the deferred member commences 
19.32 	receipt of the deferred service pension.
20.1 	(g) For a deferred service pension that is transferred to a separate account established 
20.2 	and maintained by the relief association or separate investment vehicle held by the relief 
20.3 	association, the deferred member bears the full investment risk subsequent to transfer and 
20.4 	in calculating the accrued liability of the volunteer firefighters relief association that pays 
20.5 	a lump-sum service pension, the accrued liability for deferred service pensions is equal to 
20.6 	the separate relief association account balance or the fair market value of the separate 
20.7 	investment vehicle held by the relief association.

20.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

20.9 	Sec. 18. Minnesota Statutes 2022, section 424A.02, subdivision 9, is amended to read:
20.10 		Subd. 9.Limitation on ancillary benefits. A defined benefit relief association, including 
20.11 	any volunteer firefighters relief association governed by Laws 2013, chapter 111, article 5, 
20.12 	sections 31 to 42, or any volunteer firefighters division of a relief association governed by 
20.13 	chapter 424,and the Bloomington Fire Department Relief Association may only pay ancillary 
20.14 	benefits which that would constitute an authorized disbursement as specified in section 
20.15 	424A.05 subject to the following requirements or limitations:
20.16 	(1) with respect to a defined benefit relief association in which governing bylaws provide 
20.17 	solely for a lump-sum service pension to a retiring member, or provide a retiring member 
20.18 	the choice of either a lump-sum service pension or a monthly service pension and the 
20.19 	lump-sum service pension was chosen, no ancillary benefit may be paid to any former 
20.20 	member or paid to any person on behalf of any former member after the former member (i) 
20.21 	terminates active service with the fire department and active membership in the relief 
20.22 	association; and (ii) commences receipt of a service pension as authorized under this section; 
20.23 	and
20.24 	(2) with respect to any defined benefit relief association, no ancillary benefit paid or 
20.25 	payable to any member, to any former member, or to any person on behalf of any member 
20.26 	or former member, may exceed in amount the total earned service pension of the member 
20.27 	or former member. The total earned service pension must be calculated by multiplying the 
20.28 	service pension amount specified in the bylaws of the relief association at the time of death 
20.29 	or disability, whichever applies, by the years of service credited to the member or former 
20.30 	member. The years of service must be determined as of (i) the date the member or former 
20.31 	member became entitled to the ancillary benefit; or (ii) the date the member or former 
20.32 	member died entitling a survivor or the estate of the member or former member to an 
20.33 	ancillary benefit. The ancillary benefit must be calculated without regard to whether the 
20.34 	member had attained the minimum amount of service and membership credit specified in 
21.1 	the governing bylaws. For active members, the amount of a permanent disability benefit or 
21.2 	a survivor benefit must be equal to the member's total earned service pension except that 
21.3 	the bylaws of a defined benefit relief association may provide for the payment of a survivor 
21.4 	benefit in an amount not to exceed five times the yearly service pension amount specified 
21.5 	in the bylaws on behalf of any member who dies before having performed five years of 
21.6 	active service in the fire department with which the relief association is affiliated. For 
21.7 	deferred members, the amount of a permanent disability benefit or a survivor benefit must 
21.8 	be calculated using the service pension amount in effect on the date specified in section 
21.9 	424A.015, subdivision 6, unless the bylaws of the relief association specify a different 
21.10 	service pension amount to be used for the calculation.
21.11 	(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation 
21.12 	or bylaws, the benefit must be paid:
21.13 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
21.14 	(B) as a survivor benefit to the surviving children of the deceased firefighter if no 
21.15 	surviving spouse;
21.16 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
21.17 	surviving spouse or surviving children; or
21.18 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
21.19 	surviving children and no beneficiary designated.
21.20 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly 
21.21 	or partially, the spouse's entitlement to a survivor benefit.
21.22 	(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of 
21.23 	incorporation or bylaws, the benefit must be paid:
21.24 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
21.25 	(B) as a survivor benefit to the surviving children of the deceased firefighter if no 
21.26 	surviving spouse;
21.27 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
21.28 	surviving spouse or surviving children; or
21.29 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
21.30 	surviving spouse, no surviving children, and no beneficiary designated.
21.31 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly 
21.32 	or partially, the spouse's entitlement to a survivor benefit.
22.1 	(iii) For purposes of this clause, if the relief association bylaws authorize a monthly 
22.2 	survivor benefit payable to a designated beneficiary, the relief association bylaws may limit 
22.3 	the total survivor benefit amount payable.
22.4 	(5) For purposes of this section, for a monthly benefit volunteer fire relief association 
22.5 	or for a combination lump-sum and monthly benefit volunteer fire relief association where 
22.6 	a monthly benefit service pension has been elected by or a monthly benefit is payable with 
22.7 	respect to a firefighter, a designated beneficiary must be a natural person. For purposes of 
22.8 	this section, for a lump-sum volunteer fire relief association or for a combination lump-sum 
22.9 	and monthly benefit volunteer fire relief association where a lump-sum service pension has 
22.10 	been elected by or a lump-sum benefit is payable with respect to a firefighter, a trust created 
22.11 	under chapter 501C may be a designated beneficiary. If a trust is payable to the surviving 
22.12 	children organized under chapter 501C as authorized by this section and there is no surviving 
22.13 	spouse, the survivor benefit may be paid to the trust, notwithstanding a requirement of this 
22.14 	section to the contrary.

22.15 	EFFECTIVE DATE. This section is effective July 1, 2024.

22.16 	Sec. 19. Minnesota Statutes 2022, section 424A.021, is amended to read:
22.17 	424A.021 CREDIT FOR BREAK IN SERVICE TO PROVIDE UNIFORMED 
22.18 	SERVICE.
22.19 		Subdivision 1.Authorization. Subject to restrictions stated in this section, a volunteer 
22.20 	firefighter or paid on-call firefighter who is absent from firefighting service due to service 
22.21 	in the uniformed services, as defined in United States Code, title 38, section 4303(13), may 
22.22 	obtain service credit if the relief association is a defined benefit plan or an allocation by the 
22.23 	relief association as though the person was an active member if the relief association is a 
22.24 	defined contribution plan for the period of the uniformed service, not to exceed five years, 
22.25 	unless a longer period is required under United States Code, title 38, section 4312.
22.26 		Subd. 2.Limitations. (a) To be eligible for service credit or an allocation as though an 
22.27 	active member under this section, the volunteer firefighter must return to firefighting service 
22.28 	with coverage by the same relief association or by the successor to that relief association 
22.29 	upon discharge from service in the uniformed service within the time frame required in 
22.30 	United States Code, title 38, section 4312(e).
22.31 	(b) Service credit or an allocation as though an active member is not authorized if the 
22.32 	firefighter separates from uniformed service with a dishonorable or bad conduct discharge 
22.33 	or under other than honorable conditions.
23.1 	(c) Service credit or an allocation as though an active member is not authorized if the 
23.2 	firefighter fails to provide notice to the fire department that the individual is leaving to 
23.3 	provide service in the uniformed service, unless it is not feasible to provide that notice due 
23.4 	to the emergency nature of the situation.

23.5 	EFFECTIVE DATE. This section is effective July 1, 2024.

23.6 	Sec. 20. Minnesota Statutes 2022, section 424A.094, subdivision 1, is amended to read:
23.7 		Subdivision 1.Authorized inclusion in fire state aid program; covered nonprofit 
23.8 	corporations. (a) This section applies to any independent nonprofit firefighting corporation 
23.9 	incorporated or organized under chapter 317A which that: (1) operates exclusively for 
23.10 	firefighting purposes; (2) which that is composed of volunteer firefighters and paid on-call 
23.11 	firefighters; and (3) which that has a duly established separate subsidiary incorporated 
23.12 	firefighters relief association which that provides retirement coverage for or pays a service 
23.13 	pension to a retired firefighter or a retirement benefit to a surviving dependent of either an 
23.14 	active or a retired firefighter, and which that is subject to the applicable provisions of chapter 
23.15 	424A.
23.16 	(b) Notwithstanding any law to the contrary, a municipality contracting with an 
23.17 	independent nonprofit firefighting corporation must be included in the distribution of fire 
23.18 	state aid to the appropriate county auditor by the state auditor only if the independent 
23.19 	nonprofit firefighting corporation complies with the provisions of this section.

23.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

23.21 	Sec. 21. Minnesota Statutes 2022, section 424A.095, subdivision 2, is amended to read:
23.22 		Subd. 2.Investment report. (a) Annually, the state auditor must provide an investment 
23.23 	report to each relief association that has complied with the reporting requirements under 
23.24 	section 356.219, subdivisions 1 and 3. The investment report must contain the following 
23.25 	information:
23.26 	(1) the relief association's average annual rates of return for at least the previous one-, 
23.27 	three-, five-, ten-, 15-, and 20-year periods for which the state auditor has investment 
23.28 	information;
23.29 	(2) the relief association's asset allocation;
23.30 	(3) the average annual one-year and ten-year benchmark rates of return;
24.1 	(4) the average annual one-year and ten-year rates of return for the statewide volunteer 
24.2 	firefighter plan;
24.3 	(5) the one-year and ten-year average annual rates of return for the State Board of 
24.4 	Investment supplemental investment fund; and
24.5 	(6) a graphical comparison between:
24.6 	(i) the relief association's average annual rates of return for the previous year and for 
24.7 	the previous multiyear periods provided under clause (1); and
24.8 	(ii) the average annual rates of return for the same periods for the supplemental investment 
24.9 	fund's balanced fund or any successor fund.
24.10 	(b) The state auditor shall select the benchmark rates of return based on the best practice 
24.11 	in the industry.
24.12 	(c) An officer of the relief association's board of trustees must certify to the state auditor 
24.13 	that the board reviewed the investment report. The certification must accompany the audited 
24.14 	financial statements or detailed financial statement under section 424A.014, subdivision 1
24.15 	or 2, whichever applies. A copy of the report must be kept on file by the relief association 
24.16 	and must be available for inspection by any member of the public.

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

24.18 	Sec. 22. Minnesota Statutes 2022, section 424A.10, is amended to read:
24.19 	424A.10 STATE SUPPLEMENTAL BENEFIT; VOLUNTEER FIREFIGHTERS.
24.20 		Subdivision 1.Definitions. For purposes of this section:
24.21 	(1) "qualified recipient" means a volunteer firefighter who receives a lump-sum 
24.22 	distribution of pension or retirement benefits from a volunteer firefighters relief association 
24.23 	or from the statewide volunteer firefighter plan;
24.24 	(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving 
24.25 	spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child 
24.26 	or children of a deceased active or deferred volunteer firefighter, or, if none, the designated 
24.27 	beneficiary of the deceased active or deferred volunteer firefighter, or, if no beneficiary has 
24.28 	been designated, the estate of the deceased active or deferred volunteer firefighter;
24.29 	(3) "active volunteer firefighter" means a person who:
25.1 	(i) regularly renders fire suppression service, the performance or supervision of authorized 
25.2 	fire prevention duties, or the performance or supervision of authorized emergency medical 
25.3 	response activities for a fire department;
25.4 	(ii) has met the statutory and other requirements for relief association membership; and
25.5 	(iii) is deemed by the relief association under law and its bylaws to be a fully qualified 
25.6 	member of the relief association or from the statewide volunteer firefighter plan for at least 
25.7 	one month;
25.8 	(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
25.9 	(i) terminated active firefighting service, the performance or supervision of authorized 
25.10 	fire prevention duties, or the performance or supervision of authorized emergency medical 
25.11 	response activities; and
25.12 	(ii) has sufficient service credit from the applicable relief association or from the statewide 
25.13 	volunteer firefighter plan to be entitled to a service pension under the bylaws of the relief 
25.14 	association, but has not applied for or has not received the service pension; and
25.15 	(5) "volunteer firefighter" includes an individual whose services were utilized to perform 
25.16 	or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and 
25.17 	individuals whose services were used to perform emergency medical response duties or 
25.18 	supervise emergency medical response activities if authorized under section 424A.01, 
25.19 	subdivision 5a.
25.20 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer
25.21 	firefighters relief association or by the statewide volunteer firefighter plan of a lump-sum 
25.22 	distribution to a qualified recipient, the association or retirement plan, as applicable, must 
25.23 	pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the contrary, 
25.24 	the relief association must pay the supplemental benefit out of its special fund and the 
25.25 	statewide volunteer firefighter plan must pay the supplemental benefit out of the statewide 
25.26 	volunteer firefighter plan. This benefit is an amount equal to ten percent of the regular 
25.27 	lump-sum distribution that is paid on the basis of the recipient's service as a volunteer
25.28 	firefighter. In no case may the amount of the supplemental benefit exceed $1,000. A 
25.29 	supplemental benefit under this paragraph may not be paid to a survivor of a deceased active 
25.30 	or deferred volunteer firefighter in that capacity.
25.31 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
25.32 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
25.33 	deferred volunteer firefighter, the association or retirement plan, as applicable, must pay a 
26.1 	supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
26.2 	firefighter from the special fund of the relief association and the retirement plan must pay 
26.3 	a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer
26.4 	firefighter from the retirement fund if chapter 353G so provides. The amount of the 
26.5 	supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.
26.6 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
26.7 	pretax lump-sum distribution excluding any interest that may have been credited during a 
26.8 	volunteer firefighter's period of deferral.
26.9 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
26.10 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
26.11 	firefighter benefit.
26.12 	(e) If a qualified recipient receives more than one lump-sum distribution, the qualified 
26.13 	recipient is eligible to receive a supplemental benefit or supplemental survivor benefit, 
26.14 	whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall 
26.15 	be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate 
26.16 	limit.
26.17 	(f) Qualified recipients who elect to receive their lump-sum distribution in installments 
26.18 	under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive 
26.19 	one supplemental benefit calculated on the total lump-sum distribution amount under 
26.20 	paragraph (a) or (b), as applicable.
26.21 		Subd. 3.State reimbursement. (a) Each year, to be eligible for state reimbursement of 
26.22 	the amount of supplemental benefits paid under subdivision 2 during the preceding calendar 
26.23 	year, the volunteer firefighters relief association or the statewide volunteer firefighter plan 
26.24 	shall apply to the commissioner of revenue by February 15. By March 15, the commissioner 
26.25 	shall reimburse the relief association for the amount of the supplemental benefits paid by 
26.26 	the relief association to qualified recipients and to survivors of deceased active or deferred 
26.27 	volunteer firefighters.
26.28 	(b) The commissioner of revenue shall prescribe the form of and supporting information 
26.29 	that must be supplied as part of the application for state reimbursement. The commissioner 
26.30 	of revenue shall reimburse the relief association by paying the reimbursement amount to 
26.31 	the treasurer of the municipality where the association is located and shall reimburse the 
26.32 	retirement plan by paying the reimbursement amount to the executive director of the Public 
26.33 	Employees Retirement Association. Within 30 days after receipt, the municipal treasurer 
26.34 	shall transmit the state reimbursement to the treasurer of the association if the association 
27.1 	has filed a financial report with the municipality. If the relief association has not filed a 
27.2 	financial report with the municipality, the municipal treasurer shall delay transmission of 
27.3 	the reimbursement payment to the association until the complete financial report is filed. 
27.4 	If the association has dissolved or has been removed as a trustee of state aid, the treasurer 
27.5 	shall deposit the money in a special account in the municipal treasury, and the money may 
27.6 	be disbursed only for the purposes and in the manner provided in section 424A.08. When 
27.7 	paid to the association, the reimbursement payment must be deposited in the special fund 
27.8 	of the relief association and when paid to the retirement plan, the reimbursement payment 
27.9 	must be deposited in the retirement fund of the plan.
27.10 	(c) A sum sufficient to make the payments is appropriated from the general fund to the 
27.11 	commissioner of revenue.
27.12 		Subd. 4.In lieu of income tax exclusion. (a) The supplemental benefit provided by this 
27.13 	section is in lieu of the state income tax exclusion for lump-sum distributions of retirement 
27.14 	benefits paid to volunteer firefighters.
27.15 	(b) If the law is modified to exclude or exempt volunteer firefighters' lump-sum 
27.16 	distributions from state income taxation, the supplemental benefits under this section are 
27.17 	no longer payable, beginning with the first calendar year in which the exclusion or exemption 
27.18 	is effective. This subdivision does not apply to exemption of all or part of a lump-sum 
27.19 	distribution under section 290.032 or 290.0802.

27.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

27.21 	Sec. 23. REVISOR INSTRUCTION.
 27.22 	In Minnesota Statutes, the revisor of statutes shall change the terms "volunteer firefighters 
27.23 	relief association," "volunteer firefighter relief association," "volunteer firefighters' relief 
27.24 	association," and "volunteer fire relief association" to "firefighters relief association" 
27.25 	wherever the terms appear in statutes. The revisor shall make any necessary grammatical 
27.26 	changes or changes to sentence structure necessary to preserve the meaning of the text as 
27.27 	a result of the changes.