This bill amends various provisions related to the Public Employees Retirement Association, particularly focusing on the statewide volunteer firefighting plan. It introduces new definitions for "on-call basis" and "volunteer basis," which clarify compensation structures for volunteer firefighters. The frequency of actuarial valuations is changed from biennial to annual, allowing for more frequent assessments of the retirement fund's financial health. Additionally, the bill establishes new requirements for entities seeking coverage under the retirement plan, including a cost analysis for defined benefit plan coverage and stipulations regarding the selection of benefit levels. It also restricts certain entities from electing coverage for their volunteer firefighters after December 31, 2026, if they are affiliated with a defined benefit relief association that provides a monthly pension.

Furthermore, the bill modifies financial management of fire department retirement accounts by detailing how to calculate financial requirements for fully funded accounts, deficits, and surpluses, and introduces new requirements for the executive director to provide reconciliations to fire departments regarding member allocations. It specifies conditions for retirement benefit distribution, including the necessity of service credit certification, and establishes new procedures for modifying benefit levels, requiring governing bodies to file resolutions by specific deadlines. The bill prohibits entities that convert from a defined benefit plan to a defined contribution plan from reverting back to the defined benefit plan and includes new authorized disbursements from the retirement fund. The bill is set to take effect the day following its final enactment.

Statutes affected:
Introduction: 353G.01, 353G.02, 353G.05, 353G.07, 353G.075, 353G.08, 353G.082, 353G.085, 353G.14, 353G.18, 353G.19