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Pension Commission Passes Fire Relief Proposals

The commission gave a nod to the state auditor’s working group proposal and made tweaks to the new Voluntary Statewide Volunteer Firefighter Retirement Plan.
(Published Feb 10, 2010)

The Legislative Commission on Pensions and Retirement (LCPR) met Feb. 5 to process fire relief association issues.

The items considered and recommended for inclusion in the omnibus pensions bill included a package of the Office of the State Auditor's (OSA’s) Volunteer Fire Relief Association Working Group recommendations (Revisor #10-5059), Statewide Volunteer Firefighter Plan Advisory Board administrative changes (LCPR09-080), and a measure that would expand the number of service pension levels in the Statewide Volunteer Firefighter Plan (LCPR09-081).

OSA working group recommendations
The provisions in the OSA working group’s recommendations were developed by a longstanding group of stakeholders convened by State Auditor Rebecca Otto. The group forwards only consensus items for legislative action. The OSA’s working group recommendations would:

  • Revise the 2009 break-in-service return to active firefighting authorizations.
  • Permit transfers of lump sum service pension amounts to the Minnesota Deferred Compensation Plan.
  • Clarify/revise the payout order of volunteer firefighter relief association survivor/death benefits.
  • Authorize OSA correction of special fund erroneous deposits.

Statewide Volunteer Firefighter Plan provisions
The provisions in the Statewide Volunteer Firefighter Plan bills were developed by an advisory committee made up of fire officials, local government representatives, and Public Employees Retirement Association staff. The group met during the interim to implement and refine legislation passed during the 2009 legislative session. The legislation created the Statewide Volunteer Firefighter Retirement Plan, a plan available to local units of government on a voluntary basis.

The first measure pertaining to the statewide plan, LCPR09-080, contains technical changes that will address administrative issues. The second measure, LCPR09-081, is more substantive. It will provide more flexibility and choices by allowing for more service pension levels. The proposal would eliminate the $750 service pension level and add five new service pension levels: $600, $700, $800, $900, and $1,250. The changes are expected to make the statewide plan more attractive for small fire relief associations.

Where the bill goes from here
According to LCPR Chair Sen. Don Betzold (DFL-Fridley), the LCPR will finalize the omnibus pensions bill relatively early in the legislative session; however the package will not be drafted for introduction until all the provisions have been discussed individually by the commission. Upon introduction, the bill must travel to the state government finance committees in the House and Senate. While the fire relief provisions discussed last week are not considered controversial, the bill may ultimately face an uphill battle when the commission inserts provisions to address deficiencies in the state retirement plans and the Minneapolis Employees Retirement Fund.

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