§ 424B.10 — Consolidation; Benefits; Funding
Plain-Language Summary
When all merging relief associations are defined benefit plans, the combined association must also be a defined benefit plan. The initial pension amount can be either the highest amount from any of the merging groups, or a split approach where pre-merger service uses each firefighter's old rate and post-merger service uses the highest rate. Funding is split between cities based on their share of fire state aid, and if one city fails to pay, the others must cover it and can collect the amount plus a 25% surcharge.
424B.10 CONSOLIDATION; BENEFITS; FUNDING.
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Subdivision 1.
[Repealed, 2009 c 169 art 10 s 58] §
Subd. 1a.Applicability.
This section applies when all of the volunteer firefighters’ relief associations involved in the consolidation are defined benefit relief associations as defined in section 424A.001, subdivision 1b. §
Subd. 1b.Benefits.
(a) The successor relief association following the consolidation of two or more defined benefit relief associations must be a defined benefit relief association.
(b) Notwithstanding any provision of section 424A.02, subdivision 3, to the contrary, the initial service pension amount of the subsequent defined benefit relief association as of the effective date of consolidation is either the service pension amount specified in clause (1) or the service pension amounts specified in clause (2), as provided for in the consolidated relief association’s articles of incorporation or bylaws:
(1) the highest dollar amount service pension amount of any prior firefighters relief association in effect immediately before the consolidation initiation if the pension amount was implemented consistent with section 424A.02; or
(2) for service rendered by each individual volunteer firefighter before consolidation, the service pension amount under the consolidating firefighters relief association that the firefighter belonged to immediately before the consolidation if the pension amount was implemented consistent with section 424A.02 and for service rendered after the effective date of the consolidation, the highest dollar amount service pension of any of the consolidating volunteer firefighters relief associations in effect immediately before the consolidation if the pension amount was implemented consistent with section 424A.02.
(c) Any increase in the service pension amount beyond the amount implemented under paragraph (a) must conform with the requirements and limitations of section 424A.02 and sections 424A.091 to 424A.095. §
Subd. 2.Funding.
(a) Unless the applicable municipalities agree in writing to allocate the minimum municipal obligation in a different manner, the minimum municipal obligation under section 424A.092 or 424A.093, whichever applies, must be allocated between the applicable municipalities in proportion to their fire state aid.
(b) If any applicable municipality fails to meet its portion of the minimum municipal obligation to the subsequent relief association, all other applicable municipalities are jointly obligated to provide the required funding upon certification by the relief association secretary. An applicable municipality that pays the minimum municipal obligation amount for another applicable municipality, the municipality may collect that payment amount, plus a 25 percent surcharge, from the responsible applicable municipality by any available means, including a deduction from any state aid or payment amount payable to the responsible municipality upon certification of the necessary information to the commissioner of management and budget.
History:
2000 c 461 art 16 s 10; 1Sp2005 c 8 art 9 s 15; 2009 c 101 art 2 s 109; 2009 c 169 art 10 s 51-53; 2013 c 111 art 5 s 80; 2021 c 22 art 10 s 35; 2022 c 65 art 4 s 22; 2024 c 102 art 2 s 31
History: History: 2000 c 461 art 16 s 10; 1Sp2005 c 8 art 9 s 15; 2009 c 101 art 2 s 109; 2009 c 169 art 10 s 51-53; 2013 c 111 art 5 s 80; 2021 c 22 art 10 s 35; 2022 c 65 art 4 s 22; 2024 c 102 art 2 s 31