HF4723

Purpose

This bill broadens who can participate in Minnesota firefighters relief associations and related retirement plans, by adding emergency medical providers to the eligible group and aligning their benefits with existing firefighter retirement rules. It also updates how service credit, contributions, and bylaw requirements work, and sets timelines for implementing these changes.

Key Provisions

• Eligibility and participation

  • Expands eligibility to include emergency medical providers (as defined in state law) and keeps other existing eligible groups (such as volunteers, on-call firefighters, certain rescue squad members, and related personnel) in place.
  • The bill lists specific categories of people who may be eligible, including EMS personnel, certain rescue squads, and other municipal or joint powers entities, and clarifies eligibility criteria for these groups.
  • Minors remain prohibited from membership in a firefighters relief association.

• Election to participate

  • Eligible individuals may elect to participate in the plan within a defined window after starting service (30 days) and must file a membership election within 60 days.
  • The membership election is irrevocable.
  • No employer contribution is payable unless the fire department or governing body ratifies the election.

• Dual participation

  • Eligible EMS providers and firefighters may participate in both the public employees defined contribution plan (PEDCP) and the relief association’s retirement plan.

• Contributions

  • For volunteer or on-call firefighters and emergency medical providers who elect plan coverage, the participant must contribute at least 7.5% of compensation.
  • If the employing unit ratifies the election, the total contribution by the employer and employee must still be at least 7.5%.

• Service credit and vesting

  • Fire chiefs must certify annual service credit for volunteers and EMS providers; the credited service is used to determine vesting and pension benefits.
  • The bill allows past service for EMS providers to be recognized for service credit if bylaws permit, with a deadline (by August 1, 2026) to certify such past service.
  • Military service under federal USERRA rules can be credited, with forfeiture and cancellation rules if the member does not return from military service within the required timeframe.

• Membership eligibility and governance

  • EMS providers can qualify for membership if they meet the fire department’s service requirements and bylaws authorize their eligibility, with oversight by the applicable municipality, joint powers board, or contracting entity.

• Pensions and benefits

  • Relief associations may pay a defined benefit service pension from their assets when a member separates from active service and meets certain age and service thresholds, with possible monthly prorating as defined by bylaws.
  • The pension can be paid even if the municipality or association does not qualify for certain state fire aid programs, and bylaws control the exact benefit amount or level within statutory limits.

• Bylaws amendments

  • By January 1, 2027, all relief associations must amend their bylaws to incorporate the new requirements and to align with the referenced statutes.

• Administrative and other provisions

  • The bill includes provisions for certification of service credit, treatment of EMS service for vesting and pension purposes, and ensures rules around military service and reemployment rights are followed.

Effects on Existing Law

• Expands the scope of who can participate in firefighters relief associations and related defined-contribution plans to include emergency medical providers.
• Introduces explicit processes for voluntary election to participate, certification of service credit (including EMS and past service), and the ability to participate in multiple retirement systems.
• Requires bylaw updates across relief associations to reflect the new rules and eligibility.
• Clarifies how service credit, vesting, and pensions will be calculated for EMS providers and for those with military service.

Practical Implications

• Increased retirement options and potential benefits for emergency medical providers serving with fire departments or related agencies.
• Possible changes in local government budgeting and employer contributions due to new participation and funding rules.
• A timeline for implementation with a firm deadline for bylaws updates (by 2027).

Timeline and Compliance Highlights

• Eligibility windows for election to participate: within 30 days of starting service; file within 60 days.
• Past service certification for EMS providers: by August 1, 2026 (where allowed by bylaws).
• Bylaws updates: required by January 1, 2027.

Terminology You’ll See in the Bill

• firefighters relief association
• public employees defined contribution plan (PEDCP)
• emergency medical provider (EMS provider)
• emergency medical services (EMS)
• service credit
• vesting
• defined benefit service pension
• nonprofit firefighting corporation
• bylaw/bylaws (amendments)
• USERRA (Uniformed Services Employment and Reemployment Rights Act)
• volunteer or paid on-call firefighter
• eligibility eligibility windows (30-day election, 60-day filing)

Relevant Terms - emergency medical provider - EMS - firefighters relief association - public employees defined contribution plan - service credit - vesting - defined benefit service pension - bylaw amendments - USERRA - volunteer or paid on-call firefighter - eligibility - retirement plan