Public Employees Retirement Association statewide volunteer firefighter plan provisions modifications and technical and conforming changes
Impact
This legislation may significantly affect how volunteer firefighters receive their retirement benefits. By incorporating a defined contribution plan, which provides individual retirement accounts based on contributions and investment performance, it gives firefighters more control over their retirement outcomes. Additionally, transitioning the funding requirement for fire department retirement accounts from an annual to a biennial assessment could streamline administrative processes and reduce friction in budget planning for municipalities. However, the specified effective dates of changes push the implementation of these modifications to January 2025, allowing current systems to remain in place temporarily while adjustments are made.
Summary
SF5062 proposes modifications to the Public Employees Retirement Association, specifically addressing provisions regarding the statewide volunteer firefighter plan. The bill introduces a defined contribution plan alongside existing defined benefit arrangements, thereby allowing for a more diversified retirement saving mechanism for volunteer firefighters. It aims to modernize and clarify certain retirement provisions to better serve participants within the firefighting community. The bill defines how assets are allocated, reductions in contributions, and the specifics around calculating service credits based on prior firefighting experience.
Contention
Discussions around SF5062 highlight a potential divide in opinions on retirement benefits for volunteer firefighters. Advocates for the bill argue that it provides necessary updates for modern retirement planning, while critics could express concerns about the complexities introduced by differentiating between contribution plans and the impacts these modifications might have on the stability of existing benefits. Furthermore, as the bill involves significant changes to how contributions and service credits are calculated, stakeholders may question how this could affect the overall trust in the retirement system, especially for those who may rely on these benefits in their later years.
Similar To
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.
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.
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State auditor's volunteer firefighter working group recommendations implemented, volunteer firefighters relief associations governing provisions modified, and conforming changes made.
State Auditor's volunteer firefighter working group recommendations; volunteer firefighters relief association provisions amended, and conforming changes made.
Public Employees Retirement Association statewide volunteer firefighter plan provisions modified, and service counted modified in determining vesting in a retirement benefit.
Statewide volunteer firefighter retirement plan; requirements applicable to relief association after affiliated fire department joins statewide volunteer firefighter retirement plan amended.
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
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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; volunteer firefighters relief association provisions amended, and conforming changes made.