This bill amends Minnesota Statutes to establish new vesting schedules for firefighters' relief associations, specifically for defined contribution and defined benefit plans. The amendments introduce a phased approach to vesting, which will gradually reduce the required years of active service for members to become 100 percent vested in their accounts. Under the new provisions, members will vest in increments based on their years of service, starting with a requirement of 20 years of service until December 31, 2027, then reducing to 15 years from January 1, 2028, to December 31, 2029, and finally to 10 years starting January 1, 2029.

Additionally, the bill clarifies the definitions of "vests," "vesting," and "vested," ensuring that members have a nonforfeitable right to their benefits as outlined in the relief association's articles of incorporation or bylaws. The previous restrictions that limited the vesting schedule to a maximum of 20 years of service and specified vesting percentages have been removed, allowing for more flexibility in the vesting process. The changes are set to take effect the day following final enactment.

Statutes affected:
Introduction: 424A.016, 424A.02