Minnesota Legislature - Legislative Commission on Pensions and Retirement

LCPR

Minnesota Legislature

State Aid

Public Pension Plan State Aid

The State of Minnesota has established 16 different aid programs dedicated to or specifically applicable to public employee retirement plans.

The aid programs are:

Fire State Aid;
Minimum Volunteer Firefighter Fire State Aid;
First Class City Fire Insurance Premium Tax Surcharge;
Police State Aid;
Local Police and Paid Fire Relief Association Amortization Aid;
Supplemental Police and Paid Fire Amortization State Aid;
Additional Amortization State Aid;
Minneapolis Employees Retirement Fund (MERF) State Contribution;
Volunteer Fire Lump Sum Supplemental Benefit State Reimbursement;
Pre-1974 Retiree MERF Special Post Retirement Adjustment Aid;
Teacher Retirement Plan State Categorized Aid and State Funding;
1993 State Supplemental MTRFA/SPTRFA Contributions;
1996 State Supplementary MTRFA/SPTRFA Contributions;
1997 State Supplemental First Class City Teacher Retirement Fund Association Funding;
1997 State Aid for the PERA-General Employer Contribution Rate Increase; and
Ambulance Service Personnel Longevity Award and Incentive State Aid.

The following summarizes these aid programs, specifying their governing statutes, the establishment year, the source of the aid, the aid recipient or recipients, and the recent total aid amounts:

State Aid Program	Governing Statute	Year In Which Aid Program Established	Aid Source	Aid Recipient(s)	Recent Total Aid Amounts
Fire State Aid	Minnesota Statutes, Sections 69.011 to 69.051	1885	State General Fund (Dedicated proceeds of equivalent to two percent insurance premium tax)	Municipalities and nonprofit firefighting corporations with fire department with at least 10 firefighters	2000: $16,055,136 2001: $16,899,053 2002: $18,066,489
Minimum Volunteer Firefighter Fire State Aid	Minnesota Statutes, Sections 69.021, Subdivision 7, Paragraph (d), and 423A.02, Subdivision 3, Paragraph (e)	1996	30 percent of excess amortization and supplemental amortization state aid freed up by fully funded relief associations or consolidation accounts	Municipalities and nonprofit firefighting corporations eligible to receive fire state aid	2000: $1,210,366 2001: $1,065,323 2002: $1,846,119
First Class City Fire Insurance Premium Tax Surcharge	Minnesota Statutes, Section 297I.10	1934	State General Fund (Dedicated proceeds of two percent of fire insurance premium amount in Duluth, Minneapolis, and St. Paul)	Duluth (approx. 13%) Mpls. (approx. 55%) St. Paul (approx. 32%)	2000: $1,092,207 2001: $1,321,161 2002: $1,382,374
Police State Aid	Minnesota Statutes, Sections 69.011 to 69.051	1971	State General Fund (Dedicated proceeds of equivalent to two percent insurance premium tax)	Counties, cities, townships, the Metropolitan Airports Commission, Indian tribal governments, the Dept. of Public Safety, and the Dept. of Natural Resources.	2000: $45,915,460 2001: $44,843,783 2002: $47,384,086
Local Police and Paid Fire Relief Association Amortization State Aid	Minnesota Statutes, Section 423A.02, Subdivision 1	1980	State General Fund	Cities with local police or paid firefighter relief associations	2000: $1,639,219 2001: $1,616,837 2002: $3,451,988
Supplemental Police and Paid Fire Amortization State Aid	Minnesota Statutes, Section 423A.02, Subdivision 1a	1984	State General Fund	Cities with local police or paid firefighter relief associations	2000: $529,703 2001: $279,229 2002: $749,526
Additional Amortization State Aid	Minnesota Statutes, Section 423A.02, Subdivision 1b	1995	State General Fund (one-half of excess police state aid after ambulance longevity award program deduction)	Cities with local police or paid firefighter relief associations	2000: $4,164,411 2001: $8,665,401 2002: $5,161,643
Volunteer Fire Lump Sum Supplemental Benefit State Reimbursement	Minnesota Statutes, Section 424A.10	1988	State General Fund (line item appropriation to the Dept. of Revenue)	Volunteer firefighter relief associations paying lump sum service pensions in prior year which apply for reimbursement	2000: $378,000 2001: $420,000 2002: $420,000
State Contribution to MERF	Minnesota Statutes, Section 422A.101, Subdivision 3	1979	State General Fund	Minneapolis Employees Retirement Fund (MERF)	2000: $7,032,750 2001: $3,085,000 2002: $3,224,000
Pre-1974 MERF Retiree Special Post Retirement Adjustment Aid	Minnesota Statutes, Section 356.43	1991	State General Fund	MERF	2000: $510,647 2001: $483,729 2002: Incorporated into State contribution to MERF
State Funding of Teacher Retirement	Minnesota Statutes, Sections 126C.10 to 126C.23	1915/1931/ 1967/1985/ 1987	State General Fund	School districts and other educational employers	2000: TRA - $134,418,833 TRFA�s - $44,929,291 2001: TRA - $139,799,408 TRFA�s - $46,580,142 2002: TRA - $142,221,589 TRFA�s - $44,970,000
1993 State Supplemental MTRFA/ SPTRFA Contributions	Minnesota Statutes, Section 354A.12, Subdivision 3b	1993	State General Fund	Minneapolis Teachers Retirement Fund Association (MTRFA) and St. Paul Teachers Retirement Fund Association (SPTRFA)	2000: $3,000,000 2001: $3,000,000 2002: $3,000,000
1996 State Supplementary MTRFA/ SPTRFA Contributions	Minnesota Statutes, Section 423A.02, Subdivision 3	1996	State General Fund	MTRFA and SPTRFA	2000: $4,480,000 2001: $5,040,000 2002: $4,715,000
1997 State Supplemental First Class City Teacher Retirement Fund Associations Funding	Minnesota Statutes, Section 354A.12, Subdivision 3a	1997	State General Fund	Duluth Teachers Retirement Fund Association (DTRFA), MTRFA, and SPTRFA	2000: $15,767,000 2001: $15,767,000 2002: $15,767,000
1997 State Aid for PERA-General	Minnesota Statutes, Sections 124.2141 and 273.1385	1997	State General Fund	General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General)	2000: $14,586,176 2001: $14,585,456 2002: $14,585,074
Ambulance Service Personnel Longevity Award and Incentive Program State Aid	Minnesota Statutes, Sections 69.021, Subdivision 11, Paragraph (c), and 144E.42	1993	State General Fund (deduction from excess police state aid)	Ambulance service personnel longevity award and incentive program	2000: $1,000,000 2001: $1,000,000 2002: $1,000,000

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Updated: (ld)