HF2395

Purpose of the Bill

The purpose of this bill is to amend the rules regarding the maximum lump-sum service pension amounts that volunteer firefighters can receive through their relief associations for each year of service. This adjustment aims to increase the financial benefit provided to these firefighters upon retirement, reflecting an update to existing statutes.

Main Provisions

• Maximum Lump-Sum Pension Increase: The bill proposes to increase the maximum lump-sum service pension amount that can be set in the bylaws of defined benefit relief associations. The new maximum lump-sum pension cap is increased from $15,000 to $20,000 per year of service credited.
• Governance and Uniform Application: The amendment requires that the method of calculating service pensions be applied uniformly across all years of active service. There are specific conditions under which service credit might not be granted, such as exceeding the service credit caps or not resuming active service within a specified period.

Significant Changes to Existing Law

• This bill amends Minnesota Statutes 2024, section 424A.02, subdivision 3, specifically altering the cap on the lump-sum pension amount from $15,000 to $20,000 for defined benefit relief associations.
• It maintains the governance that any changes to pension amounts must be ratified by local municipalities, ensuring local control and accountability.

Relevant Terms

retirement, firefighters relief associations, lump-sum service pension, maximum pension benefit, defined benefit relief association, bylaws, service credit, volunteer firefighter, Minnesota Statutes 424A.02.