1.1 	A bill for an act
1.2 	relating to retirement; state auditor's volunteer fire relief association working group; 
1.3 	simplifying maximum benefit levels, modifying certification of service credit 
1.4 	process, modifying distributions to alternate payees pursuant to a domestic relations 
1.5 	order, clarifying payment of supplemental benefits, and making conforming 
1.6 	changes;amending Minnesota Statutes 2020, sections 424A.003; 424A.015, 
1.7 	subdivision 2; 424A.05, subdivision 3, by adding a subdivision; Minnesota Statutes 
1.8 	2021 Supplement, sections 353G.11, subdivision 1; 424A.02, subdivisions 3, 3a; 
1.9 	424A.091, subdivision 3; 424A.093, subdivision 1; 424A.10, subdivision 2; 
1.10 	424B.10, subdivision 1b; 424B.13, subdivision 4; 424B.22, subdivision 4; repealing 
1.11 	Minnesota Statutes 2021 Supplement, section 424A.02, subdivisions 2a, 2b, 2c.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2021 Supplement, section 353G.11, subdivision 1, is 
1.14 	amended to read:
1.15 		Subdivision 1.Service pension levels; lump-sum retirement division. Except as 
1.16 	provided in subdivision 1a, the lump-sum retirement division of the retirement plan provides 
1.17 	the following levels of service pension amounts per full year of good time service credit to 
1.18 	be selected at the election of coverage:
1.19 	(1) a minimum service pension level of $500 per year;
1.20 	(2) a maximum service pension level equal to the largest maximum lump-sum service 
1.21 	pension amount permitted under section 424A.02, subdivision 2c subdivision 3, as a 
1.22 	maximum lump-sum service pension amount payable for each year of service; and
1.23 	(3) service pension levels between the minimum level and the maximum level in $100 
1.24 	increments.

1.25 	EFFECTIVE DATE. This section is effective January 1, 2023.

2.1 	Sec. 2. Minnesota Statutes 2020, section 424A.003, is amended to read:
2.2 	424A.003 CERTIFICATION OF SERVICE CREDIT.
2.3 	(a) When a municipal fire department, a joint powers fire department, or an independent 
2.4 	nonprofit firefighting corporation is directly associated with the volunteer firefighters relief 
2.5 	association, the fire chief shall certify annually by March 31 the service credit for the 
2.6 	previous calendar year of each volunteer firefighter rendering active service with the fire 
2.7 	department.
2.8 	(b) The certification shall be made to an officer of the relief association's board of trustees 
2.9 	and to the municipal clerk or clerk-treasurer of the largest municipality in population served 
2.10 	by the associated fire department.
2.11 	(c) The fire chief shall notify each volunteer firefighter rendering active service with 
2.12 	the fire department of the amount of service credit rendered by the firefighter for the previous 
2.13 	calendar year. Upon request, the fire chief shall provide the firefighter with a written 
2.14 	explanation and documentation to support the determination of service credit. The service 
2.15 	credit notification and a description of the process and deadlines for the firefighter to 
2.16 	challenge the fire chief's determination of service credit must be provided to the firefighter 
2.17 	at least 21 days prior to its certification to the relief association and municipality. If the 
2.18 	service credit amount is challenged, the fire chief shall accept and consider any additional 
2.19 	pertinent information and shall make a final determination of service credit.
2.20 	(d) The service credit certification must be expressed as the number of completed months 
2.21 	of the previous year during which an active volunteer firefighter rendered at least the 
2.22 	minimum level of duties as specified and required by the fire department under the rules, 
2.23 	regulations, and policies applicable to the fire department. No more than one year of service 
2.24 	credit may be certified for a calendar year.
2.25 	(e) If a volunteer firefighter who is a member of the relief association leaves active 
2.26 	firefighting service to render active military service that is required to be governed by the 
2.27 	federal Uniformed Services Employment and Reemployment Rights Act, as amended, the 
2.28 	firefighter must be certified as providing service credit for the period of the military service, 
2.29 	up to the applicable limit of the federal Uniformed Services Employment and Reemployment 
2.30 	Rights Act. If the volunteer firefighter does not return from the military service in compliance 
2.31 	with the federal Uniformed Services Employment and Reemployment Rights Act, the service 
2.32 	credits applicable to that military service credit period are forfeited and canceled at the end 
2.33 	of the calendar year in which the time limit set by federal law occurs.

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

3.1 	Sec. 3. Minnesota Statutes 2020, section 424A.015, subdivision 2, is amended to read:
3.2 		Subd. 2.No assignment or garnishment. Except as provided in sections 424A.05, 
3.3 	518.58, 518.581, and 518A.53:
3.4 	(1) a service pension or ancillary benefits paid or payable from the special fund of a 
3.5 	relief association to any person receiving or entitled to receive a service pension or ancillary 
3.6 	benefits is not subject to garnishment, judgment, execution, or other legal process, except 
3.7 	as provided in section 518.58, 518.581, or 518A.53.; and
3.8 	(2) no person entitled to a service pension or ancillary benefits from the special fund of 
3.9 	a relief association may assign any service pension or ancillary benefit payments, and the 
3.10 	association does not have the authority to recognize any assignment or pay over any sum 
3.11 	which has been assigned.

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

3.13 	Sec. 4. Minnesota Statutes 2021 Supplement, section 424A.02, subdivision 3, is amended 
3.14 	to read:
3.15 		Subd. 3.Determining maximum pension benefit. (a) Except as provided in section 
3.16 	424B.22, subdivision 4, a defined benefit relief association may not set in its bylaws a 
3.17 	service pension amount above the following maximum amounts:
3.18 	(1) for a defined benefit relief association in which the governing bylaws provide for a 
3.19 	monthly benefit service pension as an alternative form of service pension payment to a 
3.20 	lump-sum service pension, the maximum monthly service pension amount for each pension 
3.21 	payment type must be determined using the applicable table contained in subdivision 2b or 
3.22 	2c. per month for each year of service credited is $100; and
3.23 	(2) for a defined benefit relief association in which the governing bylaws provide for a 
3.24 	lump-sum service pension, the maximum lump-sum service pension amount for each year 
3.25 	of service credited is $15,000.
3.26 	(b) If a defined benefit relief association establishes a service pension in compliance 
3.27 	with the applicable maximum contained in subdivision 2b or 2c and the minimum average 
3.28 	amount of available financing per active covered firefighter is subsequently reduced because 
3.29 	of a reduction in fire state aid or because of an increase in the number of active firefighters, 
3.30 	the relief association may continue to provide the prior service pension amount specified 
3.31 	in its bylaws, but may not increase the service pension amount until the minimum average 
3.32 	amount of available financing per firefighter under the table in subdivision 2b or 2c, 
3.33 	whichever applies, permits.
4.1 	(c) No defined benefit relief association is authorized to provide a service pension in an 
4.2 	amount greater than the largest applicable flexible service pension maximum amount even 
4.3 	if the amount of available financing per firefighter is greater than the financing amount 
4.4 	associated with the largest applicable flexible service pension maximum.
4.5 	(d)(b) The method of calculating service pensions must be applied uniformly for all 
4.6 	years of active service. Credit must be given for all years of active service, unless the bylaws 
4.7 	of the relief association provide that service credit is not given for:
4.8 	(1) years of active service in excess of caps on service credit; or
4.9 	(2) years of active service earned by a former member who:
4.10 	(i) has ceased duties as a volunteer firefighter with the fire department before becoming 
4.11 	vested under subdivision 2; and
4.12 	(ii) has not resumed active service with the fire department and active membership in 
4.13 	the relief association for a period as defined in the relief association's bylaws, of not less 
4.14 	than five years.

4.15 	EFFECTIVE DATE. This section is effective January 1, 2023.

4.16 	Sec. 5. Minnesota Statutes 2021 Supplement, section 424A.02, subdivision 3a, is amended 
4.17 	to read:
4.18 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
4.19 	defined benefit relief association pays a service pension greater than the applicable maximum 
4.20 	service pension associated with the applicable average amount of available financing per 
4.21 	active covered firefighter under the table in subdivision 2b or 2c, whichever applies, the 
4.22 	maximum service pension under subdivision 3, paragraph (b), or the applicable maximum 
4.23 	service pension amount specified in subdivision 3, paragraph (c), whichever is less, the state 
4.24 	auditor shall:
4.25 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
4.26 	associated with the relief association from receiving fire state aid by making the appropriate 
4.27 	notification to the municipality and the commissioner of revenue, with the disqualification 
4.28 	applicable for the next apportionment and payment of fire state aid; and
4.29 	(2) order the treasurer of the applicable relief association to recover the amount of the 
4.30 	overpaid service pension or pensions from any retired firefighter who received an 
4.31 	overpayment.
5.1 	(b) Fire state aid amounts from disqualified municipalities for the period of 
5.2 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
5.3 	insurance premium tax proceeds available for the next subsequent fire state aid 
5.4 	apportionment.
5.5 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
5.6 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
5.7 	the next subsequent fire state aid apportionment.
5.8 	(d) The determination of the state auditor that a relief association has paid a service 
5.9 	pension greater than the applicable maximum must be made on the basis of the information 
5.10 	filed by the relief association and the municipality with the state auditor under this chapter 
5.11 	and any other relevant information that comes to the attention of the state auditor. The 
5.12 	determination of the state auditor is final. An aggrieved municipality, relief association, or 
5.13 	person may appeal the determination under section 480A.06.
5.14 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
5.15 	pension based on an error in the maximum service pension calculation, the municipality or 
5.16 	independent nonprofit firefighting corporation associated with the relief association for fire 
5.17 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
5.18 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
5.19 	(c), all overpayments recovered under this paragraph must be credited to the relief 
5.20 	association's special fund.

5.21 	EFFECTIVE DATE. This section is effective January 1, 2023.

5.22 	Sec. 6. Minnesota Statutes 2020, section 424A.05, subdivision 3, is amended to read:
5.23 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
5.24 	special fund may not be made for any purpose other than one of the following:
5.25 	(1) for the payment of service pensions to retired members of the relief association if 
5.26 	authorized and paid under law and the bylaws governing the relief association;
5.27 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
5.28 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
5.29 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
5.30 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
5.31 	subdivision 5;
6.1 	(3) for the payment of temporary or permanent disability benefits to disabled members 
6.2 	of the relief association if authorized and paid under law and specified in amount in the 
6.3 	bylaws governing the relief association;
6.4 	(4) for the payment of survivor benefits or for the payment of a death benefit to the estate 
6.5 	of the deceased active or deferred firefighter, if authorized and paid under law and specified 
6.6 	in amount in the bylaws governing the relief association;
6.7 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
6.8 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
6.9 	entitle relief association members to membership in and the benefits of these associations 
6.10 	or organizations;
6.11 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
6.12 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
6.13 	insurance, in order to entitle relief association members to membership in and the benefits 
6.14 	of the association or organization; and
6.15 	(7) for the payment of administrative expenses of the relief association as authorized 
6.16 	under subdivision 3b.; and
6.17 	(8) for the payment of a service pension to the former spouse of a member or former 
6.18 	member of a relief association, if the former spouse is an alternate payee designated in a 
6.19 	qualified domestic relations order under subdivision 5.
6.20 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
6.21 	by this section must be signed by the relief association treasurer and at least one other elected 
6.22 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
6.23 	A relief association may make disbursements authorized by this subdivision by electronic 
6.24 	fund transfers only if the specific method of payment and internal control policies and 
6.25 	procedures regarding the method are approved by the board of trustees.

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

6.27 	Sec. 7. Minnesota Statutes 2020, section 424A.05, is amended by adding a subdivision to 
6.28 	read:
6.29 		Subd. 5.Qualified domestic relations orders. (a) A "qualified domestic relations order" 
6.30 	means a domestic relations order that creates or recognizes the existence of an alternate 
6.31 	payee's right to or assigns to an alternate payee the right to receive a service pension that is 
6.32 	all or any portion of the service pension payable with respect to a member or former member 
6.33 	of a relief association.
7.1 	(b) An "alternate payee" means the former spouse of a member or former member of a 
7.2 	relief association, including a former spouse who is a distributee as defined in section 
7.3 	356.635, subdivision 7, clause (3).
7.4 	(c) A relief association must comply with a qualified domestic relations order purporting 
7.5 	to assign all or a portion of a service pension accrued under the retirement plan of the relief 
7.6 	association, to the extent vested, if the payment or payments required by the order are within 
7.7 	the limits described in section 518.58, subdivision 4, paragraph (a), clauses (1) to (4). For 
7.8 	the purpose of applying section 518.58, subdivision 4, paragraph (a), "plan" or "pension 
7.9 	plan" as used in paragraph (a) means the articles or bylaws of the relief association and 
7.10 	chapter 424A, as applicable to the relief association.
7.11 	(d) Notwithstanding any state law to the contrary, the bylaws of a relief association may 
7.12 	permit distribution to an alternate payee under a qualified domestic relations order:
7.13 	(1) as early as administratively practicable after the order is received by the relief 
7.14 	association, even if the member whose service pension is being assigned to the alternate 
7.15 	payee under the order has not yet reached age 50 or separated from active service with the 
7.16 	fire department affiliated with the relief association; and
7.17 	(2) in a lump sum, even if the relief association is a defined benefit relief association 
7.18 	that pays monthly service pensions under section 424A.093.
7.19 	(e) If the service pension is an eligible rollover distribution as defined in section 356.635, 
7.20 	subdivisions 4 and 5, the relief association must permit the alternate payee to elect a direct 
7.21 	rollover, as provided under section 356.635, subdivisions 3 to 7.

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

7.23 	Sec. 8. Minnesota Statutes 2021 Supplement, section 424A.091, subdivision 3, is amended 
7.24 	to read:
7.25 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
7.26 	there exists a firefighters relief association as specified in subdivision 1 which does not 
7.27 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
7.28 	of any applicable special law relating to the funding or financing of the association does 
7.29 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
7.30 	chapter 477B until the reason for the disqualification specified by the state auditor is 
7.31 	remedied, whereupon the municipality or relief association, if otherwise qualified, is entitled 
7.32 	to again receive fire state aid for the year occurring immediately subsequent to the year in 
7.33 	which the disqualification is remedied.
8.1 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
8.2 	association is directly associated or a firefighters relief association fails to comply with the 
8.3 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
8.4 	applicable special law based upon the information contained in the annual financial report 
8.5 	of the firefighters relief association required under section 424A.014, the actuarial valuation 
8.6 	of the relief association, if applicable, the relief association officers' financial requirements 
8.7 	of the relief association and minimum municipal obligation determination documentation 
8.8 	under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 and 5; or 424A.094, 
8.9 	subdivision 2, if requested to be filed by the state auditor, the applicable municipal or 
8.10 	independent nonprofit firefighting corporation budget, if requested to be filed by the state 
8.11 	auditor, and any other relevant documents or reports obtained by the state auditor.
8.12 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
8.13 	relief association are not eligible to receive or to retain fire state aid if:
8.14 	(1) the relief association fails to prepare or to file the financial report or financial 
8.15 	statement under section 424A.014;
8.16 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
8.17 	by section 424A.014, subdivision 4;
8.18 	(3) the relief association officers fail to determine or improperly determine the accrued 
8.19 	liability and the annual accruing liability of the relief association under section 424A.092, 
8.20 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
8.21 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
8.22 	valuation or the officers file an actuarial valuation that does not contain the special fund 
8.23 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
8.24 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
8.25 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
8.26 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
8.27 	summary of the applicable benefit plan, a summary of the membership of the relief 
8.28 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
8.29 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
8.30 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
8.31 	(5) the municipality failed to provide a municipal contribution, or the independent 
8.32 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
8.33 	equal to the minimum municipal obligation if the relief association is governed under section 
8.34 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
9.1 	the plan year in question, to at least equal in total the calculated annual financial requirements 
9.2 	of the special fund of the relief association if the relief association is governed under section 
9.3 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
9.4 	failed to include the minimum municipal obligation certified under section 424A.092, 
9.5 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
9.6 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
9.7 	under section 424A.094, subdivision 2, in the corporate budget;
9.8 	(6) the defined benefit relief association did not receive municipal ratification for the 
9.9 	most recent plan amendment when municipal ratification was required under section 424A.02, 
9.10 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
9.11 	(7) the relief association invested special fund assets in an investment security that is 
9.12 	not authorized under section 424A.095;
9.13 	(8) the relief association had an administrative expense that is not authorized under 
9.14 	section 424A.05, subdivision 3 or 3b, or the municipality had an expenditure that is not 
9.15 	authorized under section 424A.08;
9.16 	(9) the relief association officers fail to provide a complete and accurate public pension 
9.17 	plan investment portfolio and performance disclosure under section 356.219;
9.18 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
9.19 	statement of investment restrictions under section 356A.06, subdivision 8b;
9.20 	(11) the relief association officers permitted to occur a prohibited transaction under 
9.21 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
9.22 	of a prohibited transaction that did occur; or
9.23 	(12) the relief association pays a defined benefit service pension in an amount that is in 
9.24 	excess of the applicable maximum service pension maximum amount under section 424A.02, 
9.25 	subdivision 2b or 2c subdivision 3.

9.26 	EFFECTIVE DATE. This section is effective January 1, 2023.

9.27 	Sec. 9. Minnesota Statutes 2021 Supplement, section 424A.093, subdivision 1, is amended 
9.28 	to read:
9.29 		Subdivision 1.Application. (a) This section applies to any firefighters relief association 
9.30 	specified in section 424A.091, subdivision 1, which pays or allows for an option of a monthly 
9.31 	service pension to a retiring firefighter when at least the minimum requirements for 
9.32 	entitlement to a service pension specified in section 424A.02, any applicable special 
10.1 	legislation, and the articles of incorporation or bylaws of the relief association have been 
10.2 	met. Each firefighters relief association to which this section applies shall determine the 
10.3 	actuarial condition and funding costs of the special fund of the relief association in accordance 
10.4 	with subdivisions 2 and 3, the financial requirements of the special fund of the relief 
10.5 	association in accordance with subdivision 4, and the minimum obligation of the municipality 
10.6 	with respect to the special fund of the relief association in accordance with subdivision 5.
10.7 	(b) If a firefighters relief association that previously provided a monthly benefit service 
10.8 	pension discontinues that practice and either replaces the monthly benefit amount with a 
10.9 	lump sum lump-sum benefit amount consistent with section 424A.02, subdivision 2c
10.10 	subdivision 3, paragraph (a), clause (2), or purchases an annuity in the same amount as the 
10.11 	monthly benefit from an insurance company licensed to do business in this state, the actuarial 
10.12 	condition and funding costs, financial, and minimum municipal obligation requirements of 
10.13 	section 424A.092 apply rather than this section.

10.14 	EFFECTIVE DATE. This section is effective January 1, 2023.

10.15 	Sec. 10. Minnesota Statutes 2021 Supplement, section 424A.10, subdivision 2, is amended 
10.16 	to read:
10.17 		Subd. 2.Payment of supplemental benefit. (a) Upon the payment by a volunteer 
10.18 	firefighters relief association or by the statewide lump-sum volunteer firefighter plan of a 
10.19 	lump-sum distribution to a qualified recipient, the association or retirement plan, as 
10.20 	applicable, must pay a supplemental benefit to the qualified recipient. Notwithstanding any 
10.21 	law to the contrary, the relief association must pay the supplemental benefit out of its special 
10.22 	fund and the statewide lump-sum volunteer firefighter plan must pay the supplemental 
10.23 	benefit out of the statewide lump-sum volunteer firefighter plan. This benefit is an amount 
10.24 	equal to ten percent of the regular lump-sum distribution that is paid on the basis of the 
10.25 	recipient's service as a volunteer firefighter. In no case may the amount of the supplemental 
10.26 	benefit exceed $1,000. A supplemental benefit under this paragraph may not be paid to a 
10.27 	survivor of a deceased active or deferred volunteer firefighter in that capacity.
10.28 	(b) Upon the payment by a relief association or the retirement plan of a lump-sum 
10.29 	survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased 
10.30 	deferred volunteer firefighter, the association or retirement plan, as applicable, must pay a 
10.31 	supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
10.32 	firefighter from the special fund of the relief association and the retirement plan must pay 
10.33 	a supplemental survivor benefit to the survivor of the deceased active or deferred volunteer 
11.1 	firefighter from the retirement fund if chapter 353G so provides. The amount of the 
11.2 	supplemental survivor benefit is 20 percent of the survivor benefit, but not to exceed $2,000.
11.3 	(c) For purposes of this section, the term "regular lump-sum distribution" means the 
11.4 	pretax lump-sum distribution excluding any interest that may have been credited during a 
11.5 	volunteer firefighter's period of deferral.
11.6 	(d) An individual may receive a supplemental benefit under paragraph (a) or under 
11.7 	paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer 
11.8 	firefighter benefit.
11.9 	(e) If a qualified recipient receives more than one lump-sum distribution, the qualified 
11.10 	recipient is eligible to receive a supplemental benefit or supplemental survivor benefit, 
11.11 	whichever is applicable, with each lump-sum distribution. Each supplemental benefit shall 
11.12 	be calculated pursuant to paragraph (a) or (b), as applicable, and shall be subject to a separate 
11.13 	limit.
11.14 	(f) Qualified recipients who elect to receive their lump-sum distribution in installments 
11.15 	under section 424A.016, subdivision 5, or 424A.02, subdivision 8, are eligible to receive 
11.16 	one supplemental benefit calculated on the total lump-sum distribution amount under 
11.17 	paragraph (a) or (b), as applicable.

11.18 	EFFECTIVE DATE. This section is effective retroactively for supplemental benefits 
11.19 	paid in 2018 and thereafter.

11.20 	Sec. 11. Minnesota Statutes 2021 Supplement, section 424B.10, subdivision 1b, is amended 
11.21 	to read:
11.22 		Subd. 1b.Benefits. (a) The successor relief association following the consolidation of 
11.23 	two or more defined benefit relief associations must be a defined benefit relief association.
11.24 	(b) Notwithstanding any provision of section 424A.02, subdivisions 2a to 3 subdivision 
11.25 	3, to the contrary, the initial service pension amount of the subsequent defined benefit relief 
11.26 	association as of the effective date of consolidation is either the service pension amount 
11.27 	specified in clause (1) or the service pension amounts specified in clause (2), as provided 
11.28 	for in the consolidated relief association's articles of incorporation or bylaws:
11.29 	(1) the highest dollar amount service pension amount of any prior volunteer firefighters 
11.30 	relief association in effect immediately before the consolidation initiation if the pension 
11.31 	amount was implemented consistent with section 424A.02; or
12.1 	(2) for service rendered by each individual volunteer firefighter before consolidation, 
12.2 	the service pension amount under the consolidating volunteer firefighters relief association 
12.3 	that the firefighter belonged to immediately before the consolidation if the pension amount 
12.4 	was implemented consistent with section 424A.02 and for service rendered after the effective 
12.5 	date of the consolidation, the highest dollar amount service pension of any of the 
12.6 	consolidating volunteer firefighters relief associations in effect immediately before the 
12.7 	consolidation if the pension amount was implemented consistent with section 424A.02.
12.8 	(c) Any increase in the service pension amount beyond the amount implemented under 
12.9 	paragraph (a) must conform with the requirements and limitations of section 424A.02 and 
12.10 	sections 424A.091 to 424A.095.

12.11 	EFFECTIVE DATE. This section is effective January 1, 2023.

12.12 	Sec. 12. Minnesota Statutes 2021 Supplement, section 424B.13, subdivision 4, is amended 
12.13 	to read:
12.14 		Subd. 4.Benefit increase. (a) If the relief association has a surplus as of the end of the 
12.15 	relief association's most recent fiscal year before the conversion effective date, the board 
12.16 	of trustees may approve a resolution that increases the lump-sum benefit or monthly pension 
12.17 	amount or both the lump-sum and monthly pension amount, if the relief association offers 
12.18 	both, and amends the relief association bylaws without the consent of the affiliated 
12.19 	municipality or firefighting corporation, notwithstanding section 424A.02, subdivision 10. 
12.20 	The resulting lump-sum benefit or monthly pension amount is not limited to the maximum 
12.21 	lump-sum benefit service pension amount or maximum monthly service pension amounts
12.22 	amount under section 424A.02, subdivisions 2a to 3 subdivision 3.
12.23 	(b) The benefit increase must not cause the liabilities of the retirement plan to exceed 
12.24 	the value of the assets, after taking into account full vesting as required under subdivision 
12.25 	2 and any administrative expenses arising from the conversion.
12.26 	(c) The board of trustees shall specify whether the benefit increase will apply only to 
12.27 	participants who are members active as of the conversion effective date or whether the 
12.28 	benefit increase will apply to all participants, including members who are not active as of 
12.29 	the conversion effective date, notwithstanding section 424A.015, subdivision 6.
12.30 	(d) The board of trustees' resolution approving an increase in the benefit level must be 
12.31 	considered conditional on there being sufficient assets to fund the increase and must state 
12.32 	that if, as of the date benefits are transferred to the defined contribution plan, there are not 
12.33 	sufficient assets to cover all benefit liabilities at the new higher benefit level, the benefit 
13.1 	level will be reduced until assets equal or are greater than liabilities. The resolution must 
13.2 	state that the new lower benefit level will be considered approved by the board of trustees 
13.3 	without further action by the board.

13.4 	EFFECTIVE DATE. This section is effective January 1, 2023.

13.5 	Sec. 13. Minnesota Statutes 2021 Supplement, section 424B.22, subdivision 4, is amended 
13.6 	to read:
13.7 		Subd. 4.Benefit increase. (a) Notwithstanding section 424A.02, subdivision 10, the 
13.8 	board of trustees of a relief association may increase the benefit amount under a defined 
13.9 	benefit relief association without the consent of the affiliated municipality or independent 
13.10 	nonprofit firefighting corporation, as provided in this subdivision.
13.11 	(b) If the retirement plan being terminated is a defined benefit plan, the board of trustees 
13.12 	may approve an amendment to the bylaws of the relief association to increase the lump-sum 
13.13 	or monthly pension amount or both the lump lump-sum and monthly pension amount, if 
13.14 	the relief association offers both, up to 125 percent of the largest maximum lump-sum 
13.15 	service pension amount under section 424A.02, subdivision 3, paragraph (a), clause (2), or 
13.16 	the maximum monthly service pension amount payable per month in effect under section 
13.17 	424A.02, subdivision 2b or 2c, respectively, without regard to the relief association's 
13.18 	minimum average amount of available financing per firefighter subdivision 3, paragraph 
13.19 	(a), clause (1). The amount by which the lump-sum or monthly pension amount is increased 
13.20 	must not cause the liabilities of the retirement plan to exceed the value of the assets, after 
13.21 	taking into account full vesting as required under subdivision 3 and any administrative 
13.22 	expenses.
13.23 	(c) The board of trustees shall specify whether the benefit increase will apply to only 
13.24 	participants who are members active as of the date of the termination of the retirement plan 
13.25 	or whether the benefit increase will apply to all participants, including members who are 
13.26 	not active as of the plan termination date.

13.27 	EFFECTIVE DATE. This section is effective January 1, 2023.

13.28 	Sec. 14. REPEALER.
 13.29 	Minnesota Statutes 2021 Supplement, section 424A.02, subdivisions 2a, 2b, and 2c, are 
13.30 	repealed.

13.31 	EFFECTIVE DATE. This section is effective January 1, 2023.

APPENDIX 

Repealed Minnesota Statutes: 22-06444 

424A.02 DEFINED BENEFIT RELIEF ASSOCIATIONS; SERVICE PENSIONS.Subd. 2a.Average amount of available financing. 
(a) Annually on or before August 1 as part of the certification of the financial requirements and minimum municipal obligation determined under section 424A.092, subdivision 4, or 424A.093, subdivision 5, as applicable, the secretary or some other official of the relief association designated in the bylaws of each defined benefit relief association shall calculate and certify to the governing body of the applicable municipality the average amount of available financing per active covered firefighter for the most recent three-year period. 

The amount of available financing includes any amounts of fire state aid and police and firefighter retirement supplemental state aid received or receivable by the relief association, any amounts of municipal contributions to the relief association raised from levies on real estate or from other available revenue sources exclusive of fire state aid, and one-tenth of the amount of assets in excess of the accrued liabilities of the relief association calculated under section 424A.092, subdivision 2; 424A.093, subdivisions 2 and 4; or 424A.094, subdivision 2, if any. 

(b) The maximum service pension which the defined benefit relief association has authority to provide for in its bylaws for payment to a member retiring after the calculation date when the minimum age and service requirements specified in subdivision 1 are met must be determined using the table in subdivision 2b or 2c, whichever applies. 

Subd. 2b.Maximum monthly amount. 
For a defined benefit relief association where the governing bylaws provide for a monthly service pension to a retiring member, the maximum monthly service pension amount per month for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter: 

	Minimum Average Amount of AvailableFinancing per Firefighter	Maximum Service Pension Amount Payable per Month for Each Year of Service	
	$ ...		$ .25		
	41		.50		
	81		1.00		
	122		1.50		
	162		2.00		
	203		2.50		
	243		3.00		
	284		3.50		
	324		4.00		
	365		4.50		
	405		5.00		
	486		6.00		
	567		7.00		
	648		8.00		
	729		9.00		
	810		10.00		
	891		11.00		
	972		12.00		
	1053		13.00		
	1134		14.00		
	1215		15.00		
	1296		16.00		
	1377		17.00		
	1458		18.00		
	1539		19.00		
	1620		20.00		
	1701		21.00		
	1782		22.00		
	1823		22.50		
	1863		23.00		
	1944		24.00		
	2025		25.00		
	2106		26.00		
	2187		27.00		
	2268		28.00		
	2349		29.00		
	2430		30.00		
	2511		31.00		
	2592		32.00		
	2673		33.00		
	2754		34.00		
	2834		35.00		
	2916		36.00		
	2997		37.00		
	3078		38.00		
	3159		39.00		
	3240		40.00		
	3321		41.00		
	3402		42.00		
	3483		43.00		
	3564		44.00		
	3645		45.00		
	3726		46.00		
	3807		47.00		
	3888		48.00		
	3969		49.00		
	4050		50.00		
	4131		51.00		
	4212		52.00		
	4293		53.00		
	4374		54.00		
	4455		55.00		
	4536		56.00		
	4617		57.00		
	4698		58.00		
	4779		59.00		
	4860		60.00		
	4941		61.00		
	5022		62.00		
	5103		63.00		
	5184		64.00		
	5265		65.00		
	5346		66.00		
	5427		67.00		
	5508		68.00		
	5589		69.00		
	5670		70.00		
	5751		71.00		
	5832		72.00		
	5913		73.00		
	5994		74.00		
	6075		75.00		
	6156		76.00		
	6237		77.00		
	6318		78.00		
	6399		79.00		
	6480		80.00		
	6561		81.00		
	6642		82.00		
	6723		83.00		
	6804		84.00		
	6885		85.00		
	6966		86.00		
	7047		87.00		
	7128		88.00		
	7209		89.00		
	7290		90.00		
	7371		91.00		
	7452		92.00		
	7533		93.00		
	7614		94.00		
	7695		95.00		
	7776		96.00		
	7857		97.00		
	7938		98.00		
	8019		99.00		
	8100		100.00		
	any amount in excess of 				
	8100		100.00		
Subd. 2c.Maximum lump-sum amount. 
For a defined benefit relief association in which the governing bylaws provide for a lump-sum service pension to a retiring member, the maximum lump-sum service pension amount for each year of service credited that may be provided for in the bylaws is the greater of the service pension amount provided for in the bylaws on the date of the calculation of the average amount of the available financing per active covered firefighter or the maximum service pension figure corresponding to the average amount of available financing per active covered firefighter for the applicable specified period: 

	Minimum Average Amount of AvailableFinancing per Firefighter	Maximum Lump-Sum Service Pension Amount Payable for Each Year of Service	
	$ ...		$ 10		
	11		20		
	16		30		
	23		40		
	27		50		
	32		60		
	43		80		
	54		100		
	65		120		
	77		140		
	86		160		
	97		180		
	108		200		
	131		240		
	151		280		
	173		320		
	194		360		
	216		400		
	239		440		
	259		480		
	281		520		
	302		560		
	324		600		
	347		640		
	367		680		
	389		720		
	410		760		
	432		800		
	486		900		
	540		1000		
	594		1100		
	648		1200		
	702		1300		
	756		1400		
	810		1500		
	864		1600		
	918		1700		
	972		1800		
	1026		1900		
	1080		2000		
	1134		2100		
	1188		2200		
	1242		2300		
	1296		2400		
	1350		2500		
	1404		2600		
	1458		2700		
	1512		2800		
	1566		2900		
	1620		3000		
	1672		3100		
	1726		3200		
	1753		3250		
	1780		3300		
	1820		3375		
	1834		3400		
	1888		3500		
	1942		3600		
	1996		3700		
	2023		3750		
	2050		3800		
	2104		3900		
	2158		4000		
	2212		4100		
	2265		4200		
	2319		4300		
	2373		4400		
	2427		4500		
	2481		4600		
	2535		4700		
	2589		4800		
	2643		4900		
	2697		5000		
	2751		5100		
	2805		5200		
	2859		5300		
	2913		5400		
	2967		5500		
	3021		5600		
	3075		5700		
	3129		5800		
	3183		5900		
	3237		6000		
	3291		6100		
	3345		6200		
	3399		6300		
	3453		6400		
	3507		6500		
	3561		6600		
	3615		6700		
	3669		6800		
	3723		6900		
	3777		7000		
	3831		7100		
	3885		7200		
	3939		7300		
	3993		7400		
	4047		7500		
	4101		7600		
	4155		7700		
	4209		7800		
	4263		7900		
	4317		8000		
	4371		8100		
	4425		8200		
	4479		8300		
	4533		8400		
	4587		8500		
	4641		8600		
	4695		8700		
	4749		8800		
	4803		8900		
	4857		9000		
	4911		9100		
	4965		9200		
	5019		9300		
	5073		9400		
	5127		9500		
	5181		9600		
	5235		9700		
	5289		9800		
	5343		9900		
	5397		10,000		
	5451		10,100		
	5505		10,200		
	5559		10,300		
	5613		10,400		
	5667		10,500		
	5721		10,600		
	5775		10,700		
	5829		10,800		
	5883		10,900		
	5937		11,000		
	5991		11,100		
	6045		11,200		
	6099		11,300		
	6153		11,400		
	6207		11,500		
	6261		11,600		
	6315		11,700		
	6369		11,800		
	6423		11,900		
	6477		12,000		
	6531		12,100		
	6585		12,200		
	6639		12,300		
	6693		12,400		
	6747		12,500		
	6801		12,600		
	6855		12,700		
	6909		12,800		
	6963		12,900		
	7017		13,000		
	7071		13,100		
	7125		13,200		
	7179		13,300		
	7233		13,400		
	7287		13,500		
	7341		13,600		
	7395		13,700		
	7449		13,800		
	7503		13,900		
	7557		14,000		
	7611		14,100		
	7665		14,200		
	7719		14,300		
	7773		14,400		
	7827		14,500		
	7881		14,600		
	7935		14,700		
	7989		14,800		
	8043		14,900		
	8097		15,000		
	any amount in excess of				
	8097		15,000