SF2752

Purpose of the Bill

The purpose of this bill is to amend the pension benefits for firefighters' relief associations in Minnesota. Specifically, it seeks to increase the maximum lump-sum service pension amounts that firefighters can receive for their service.

Main Provisions

• Increase in Lump-Sum Pension Cap: The bill raises the maximum allowable lump-sum service pension amount from $15,000 to $20,000 for each year of credited service. This applies to defined benefit relief associations with bylaws that provide for a lump-sum pension.
• Ratification Requirement: Relief associations can only adopt these amendments to their pension amounts into their bylaws if ratified by the municipality.
• Uniform Calculation Method: The method for calculating service pensions must be applied consistently for all years of service, ensuring fair treatment across different service periods.
• Service Credit Limitations: Credits for active service may be restricted, particularly for members who have ceased active firefighting duties and have not returned to service within a defined period, as specified in the bylaws.

Significant Changes to Existing Law

• The maximum lump-sum pension amount increases from $15,000 to $20,000, allowing firefighters to receive higher pension benefits for each year of credited service.
• Establishes a more structured requirement for ratifying pension changes, requiring municipal approval.

Relevant Terms

• Lump-sum service pension
• Defined benefit relief association
• Bylaws amendment
• Municipality ratification
• Service credit limits