SF4766

Purpose

• This bill expands retirement and pension programs for firefighters and emergency medical providers by adding emergency medical providers to eligibility and benefits, and by updating how service credit and pensions are calculated and managed. It also requires/bylaws updates to reflect these changes.

Key changes at a glance

• Adds emergency medical providers (EMS) to participation in firefighters relief associations and related public employee retirement plans.
• Broadens who can participate in the public employees defined contribution plan to include EMS personnel and certain related roles.
• Allows volunteer and on-call firefighters and EMS personnel who are not covered by existing plans to join the defined contribution plan and/or a relief association.
• Establishes new rules for certifying and counting service credit, including past and military service.
• Requires relief associations to amend bylaws to incorporate EMS participation and related rules by a deadline.
• Creates wide eligibility for EMS personnel to qualify for membership and service credit similar to firefighters.
• Permits defined benefit pensions to be paid from the relief association assets under clarified rules, including vesting and prorating.
• Sets contribution rules, including a minimum employee (volunteer/EMS) contribution of 7.5% of firefighting compensation and potential employer contributions if approved.

Affected groups and positions

• Volunteers, paid on-call firefighters, and emergency medical providers who work with municipal fire departments, independent nonprofit firefighting corporations, joint powers entities, or related services.
• Elected and appointed local government officials participating in the defined contribution plan.
• Fire departments, relief associations, municipal governments, and independent firefighting corporations that administer the plans or fund pensions.
• EMS personnel who perform emergency medical response duties or supervise such activities.

Main provisions by topic

• Eligibility for participation (353D.01 and 353D.02)

  • Eligibility to participate in the public employees defined contribution plan and in the firefighters relief association now includes emergency medical providers defined in the bill.
  • The bill lists specific groups that may participate, including EMS personnel, certain rescue squad members, Port Authority staff within St. Paul, city managers who participate in other plans, and others who perform emergency response roles or related duties.

• Inclusion of emergency medical providers (EMS)

  • Adds EMS providers to the definition of who can participate in the relief association and the defined contribution plan.
  • Defines EMS providers and places them on the same footing for eligibility and service credit as firefighters in many respects.

• Volunteer and on-call firefighters and EMS participation rules (Sec. 3)

  • A volunteer or paid on-call firefighter or EMS provider who is serving with a municipal department or independent nonprofit firefighting organization may elect to participate in the plan within the first 30 days of starting service, with a 60-day filing window.
  • An eligible person’s membership election is irrevocable.
  • No employer contribution is required unless the relevant governing body approves the election.

• Contributions (Sec. 3 Subd.6)

  • Volunteer or EMS participants must contribute at least 7.5% of compensation for firefighting services, unless the employing unit ratifies the election to participate, in which case the total of employer plus employee contributions must meet that threshold.

• Certification of service credit (Secs. 4–5)

  • Fire chiefs must annually certify the service credit for volunteers and EMS providers for the previous year.
  • Certification includes a process for notification, review, and disputes, and must be provided before final certification to the relief association.
  • Past service: EMS providers who were previously barred from relief association membership can have past service certified (with timelines) to count toward eligibility.
  • Military service: service during active military duty must be credited under the federal USERRA rules, with forfeiture rules if the member does not return as required.

• Membership eligibility and bylaws (Sec. 6)

  • EMS personnel can become relief association members and qualify for pensions on the same basis as fire department personnel, provided the bylaws allow it.
  • Bylaws must permit EMS eligibility and be approved by the appropriate governing body (city, joint powers board, or contracting municipality).
  • Minors are prohibited from membership.

• Service credit for EMS providers (Sec. 7)

  • Relief associations must count all active EMS service from the first day of active service for vesting and benefit accrual purposes.
  • This service affects vesting, years of active service, and pension calculations.

• Defined benefit pensions and governance (Sec. 8)

  • Defined benefit relief associations may pay a service pension from their assets when certain conditions are met.
  • Pensions may be prorated monthly, per the association’s bylaws or articles.
  • The association board must set pension amounts according to the bylaws; municipalities or other governing bodies cannot unilaterally override by pre-set maximum amounts unless specified in the bylaws.
  • Pensions may be paid even if the associated municipality does not qualify for certain state aid program rules.

• Bylaws amendment deadline (Sec. 7)

  • By January 1, 2027, all relief associations must amend their bylaws to reflect the new requirements and to incorporate EMS participation as described.

• Other definitional and governance updates

  • Adds the term emergency medical provider to definitions and aligns certification, service credit, vesting, and pension rules with this broader classification.
  • Includes checks and structures to ensure accurate service credit accounting and to handle disputes.

How this changes current law

• Expands eligibility to participate in both the public employees defined contribution plan and firefighters relief associations to include emergency medical providers.
• Introduces explicit rules for counting EMS service toward vesting and pension benefits.
• Creates mandatory bylaw updates across relief associations to reflect EMS inclusion and new contribution, certification, and pension provisions.
• Introduces a formal process for certifying service credits, including past service and military service, with timelines and dispute resolution.
• Establishes that some pension benefits can be paid from relief association assets under defined conditions, with governance safeguards.

Timeline and deadlines

• January 1, 2027: Deadline for all relief associations to amend bylaws to incorporate the new EMS-related requirements and definitions.

Potential impacts and considerations

• Increased participation by EMS providers could widen retirement benefit coverage and require adjustments in funding, administration, and governance for relief associations.
• The new contribution and certification processes add administrative steps for fire chiefs, relief associations, and municipalities.
• The ability to count EMS service for vesting and pension accrual may increase pension liabilities and require long-term funding planning.
• Bylaw amendments by 2027 may require negotiations and approvals from multiple governing bodies, especially for joint powers entities and independent nonprofit organizations.

Relevant terms

emergency medical provider; EMS; emergency medical response; volunteers; on-call firefighters; firefighters relief association; defined contribution plan; public employees defined contribution plan; service credit; vesting; past service; military service; USERRA; certification; fire chief; bylaw; relief association; joint powers entity; independent nonprofit firefighting corporation; pension; service pension; defined benefit; contribution; employer contribution; Port Authority; rescue squad; municipal department; ambulance service; Litchfield; Eden Valley; Kandiyohi County; Stearns County; Meeker County; ongoing bylaws amendments; state aid (chapter 477B).

Relevant Terms emergency medical provider, EMS, service credit, vesting, relief association, defined contribution plan, volunteers, on-call firefighter, fire chief, bylaws, pension, service pension, past service, military service, USERRA, eligibility, certification, contribution, employer contribution, joint powers entity, independent nonprofit firefighting corporation.