1.2relating to retirement; volunteer firefighter relief associations; modifying
1.3requirements relating to municipal ratification of amendments increasing retirement
1.4benefits; amending Minnesota Statutes 2016, section 424A.092, subdivision 6.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2016, section 424A.092, subdivision 6, is amended to read:
1.7    Subd. 6. Municipal ratification for plan amendments. (a) If the special fund of the
1.8relief association does or does not have a surplus over full funding under subdivision 3,
1.9paragraph (c), clause (5), and if the municipality is required or elects to provide financial
1.10support to the special fund of the relief association under this section, the adoption of or
1.11any amendment to the articles of incorporation or bylaws of a relief association which
1.12increases or otherwise affects the retirement coverage provided by or the service pensions
1.13or retirement benefits payable from the special fund of any relief association to which this
1.14section applies is not effective until:
1.15(i) it is ratified by the governing body of the municipality served by the fire department
1.16to which the relief association is directly associated or by the independent nonprofit
1.17firefighting corporation, as applicable, and
1.18(ii) the officers of a relief association shall not seek municipal ratification prior to
1.19preparing and certifying an estimate of the expected increase in the accrued liability and
1.20annual accruing liability of the relief association attributable to the amendment.
1.21(b) If the special fund of the relief association has a surplus over full funding under
1.22subdivision 3, paragraph (c), clause (5), and if the municipality is does not required to
1.23provide financial support to the special fund of the relief association under this section, the
2.1relief association may adopt or amend its articles of incorporation or bylaws which increase
2.2or otherwise affect the retirement coverage provided by or the service pensions or retirement
2.3benefits payable from the special fund of the relief association which are effective without
2.4municipal ratification so long as:
2.5(i) this does not cause the amount of the resulting increase in the accrued liability of the
2.6special fund of the relief association to exceed 90 percent of the amount of the surplus over
2.7full funding reported in the prior year, and
2.8(ii) this does not result in the financial requirements of the special fund of the relief
2.9association exceeding the expected amount of the future fire state aid and police and
2.10firefighter retirement supplemental state aid to be received by the relief association as
2.11determined by the board of trustees following the preparation of an estimate of the expected
2.12increase in the accrued liability and annual accruing liability of the relief association
2.13attributable to the change.
2.14(c) If a relief association adopts or amends its articles of incorporation or bylaws without
2.15municipal ratification under this subdivision, and, subsequent to the amendment or adoption,
2.16the financial requirements of the special fund of the relief association under this section are
2.17such so as to require financial support from the municipality, the provision which was
2.18implemented without municipal ratification is no longer effective without municipal
2.19ratification and any service pensions or retirement benefits payable after that date may be
2.20paid only in accordance with the articles of incorporation or bylaws as amended or adopted
2.21with municipal ratification.
2.22EFFECTIVE DATE.This section is effective January 1, 2018.