Fire Relief Association Changes Considered by Pensions Commission

The Legislative Commission on Pensions and Retirement considered proposals that would change membership requirements and vesting schedules for fire relief associations in Minnesota.

The Legislative Commission on Pensions and Retirement (LCPR) on April 14 considered two bills that would change membership requirements and vesting schedules for fire relief associations in Minnesota, which serve as pension plans for volunteer and paid-on-call firefighters.

The first bill, SF 4766/HF 4723, sponsored by Sen. Judy Seeberger (DFL-Woodbury) and Rep. Pete Johnson (DFL-Duluth), would require fire relief associations to include emergency medical providers working in local fire departments as members. Under current law, their inclusion is optional.

The bill would also grant those employees service credit retroactively to their original date of hire. For example, an emergency medical provider hired in 2016 would enter the fire relief association with 10 years of service.

Commission members expressed support for the bill’s intent but raised concerns about the retroactive service credit provision. State Auditor Julie Blaha testified that she supports the concept but would like the proposal to be vetted by the Minnesota Office of the State Auditor’s Fire Relief Association Working Group.

The second proposal, SF 4767/HF 4724, also sponsored by Sen. Seeberger and Rep. Johnson, would phase in shorter vesting schedules for fire relief associations. It would reduce the requirement for full vesting from a maximum of 20 years to 10 years, phased in over three years.

Commission members again supported the general intent but raised concerns about the bill’s specifics. These included the relatively short phase-in period through 2029 and the potential financial liability for cities. That liability could arise if shorter vesting schedules cause a relief association to fall below funding thresholds, which may require a municipality to contribute funds to restore the plan to at least 90% funded.

As with the first bill, Blaha encouraged members to have the proposal reviewed by the Fire Relief Association Working Group before taking legislative action.

What’s next

While there was general support for the proposals, both bills were laid over without further action. They are currently scheduled to be heard again by the LCPR on April 21, starting at 5:30 p.m. Lawmakers are expected to consider amendments before potential inclusion in the omnibus pension bill.

The LCPR is not bound by committee deadlines, and its omnibus bill could be assembled at any point before the constitutional adjournment deadline on May 18.

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