Statewide volunteer firefighter retirement plan; requirements applicable to relief association after affiliated fire department joins statewide volunteer firefighter retirement plan amended.
Impact
The bill proposes a reduction in the board of trustees' structure, limiting it to five members, which would include the fire chief and four trustees elected by the relief association membership. This change is designed to streamline decision-making while ensuring that the governance of the association remains representative of the members. Furthermore, the legislation states that an association is only allowed to maintain a general fund which is governed by existing statutes, clarifying the fiscal responsibilities and limitations placed on these organizations.
Summary
House File 2777 aims to amend existing statutes regarding the statewide volunteer firefighter retirement plan, specifically addressing the requirements applicable to relief associations after their affiliated fire departments join this statewide plan. The legislation seeks to clarify the governance and operational structure of these relief associations, which are vital to providing retirement benefits for volunteer firefighters. This amendment reflects a reorganization that focuses on the long-term sustainability and integrity of volunteer firefighter retirement systems across Minnesota.
Conclusion
Overall, House File 2777 represents significant changes to the governance and financial operations of volunteer firefighter relief associations. It aims to centralize and clarify the relationships between local associations and state retirement plans, with the ultimate goal of ensuring that volunteer firefighters are adequately supported in their retirement. However, as the bill progresses, it will be essential to continue monitoring the implications on funding and operational flexibility for local relief associations.
Contention
A point of contention surrounding HF2777 is the provision that would prohibit relief associations from receiving state or municipal funds, potentially impacting their financial operations. This restriction raises concerns among proponents who worry that without external funding, the associations may struggle to provide adequate retirement benefits. Additionally, there is a stipulation that associations cannot pay pensions or benefits that were not previously authorized under their operational bylaws, which may restrict their flexibility in responding to the evolving needs of volunteer firefighters.
Mid-year effective date provision for joining the Public Employees Retirement Association statewide volunteer firefighter plan for the Hamel Volunteer Fire Department Relief Association and the Loretto Firefighters Relief Association
State Auditor's volunteer firefighter working group recommendations; volunteer firefighters relief association provisions amended, and conforming changes made.
Mid-year effective date for joining Public Employees Retirement Association statewide volunteer firefighter plan provided for Hamel Volunteer Fire Department Relief Association and Loretto Firefighters Relief Association, and Public Employees Retirement Association authorized to merge assets and liabilities related to retirement benefits for merged firefighters.
Public Employees Retirement Association statewide volunteer firefighter plan; defined contribution plan added, frequency of funding requirement determinations reduced, firefighters with previous service allowed to request service credit for vesting purposes, and other technical and administrative changes made.
State auditor's volunteer firefighter working group recommendations implemented, volunteer firefighters relief associations governing provisions modified, and conforming changes made.
Public Employees Retirement Association statewide volunteer firefighter plan service counted in determining vesting in a retirement benefit modification
Public Employees Retirement Association statewide volunteer firefighter plan provisions modified, and service counted modified in determining vesting in a retirement benefit.