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HF2395 (Legislative Session 94 (2025-2026))

Firefighters relief associations; maximum lump-sum service pension amount increased for each year of service credited.

Related bill: SF2752

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 01, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Proposes an increase in the maximum lump-sum service pension amount for each year of service credited from $15,000 to $20,000."
      ],
      "removed": [],
      "summary": "This bill amends the pension benefit determination for firefighter relief associations under section 424A.02.",
      "modified": []
    },
    "citation": "424A.02"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to section 424A.093 for adopting a service pension amount via a bylaws amendment is unchanged.",
      "modified": []
    },
    "citation": "424A.093"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to section 424A.092 for adopting a lump-sum service pension amount via a bylaws amendment is unchanged.",
      "modified": []
    },
    "citation": "424A.092"
  }
]

Sponsors