Minnesota Agencies

The executive director of the Public Employees Retirement Association shall convene a Fire State Aid Work Group to study and make recommendations to the Legislative Commission on Pensions and Retirement on: the current requirement that all fire state aid provided to municipalities with firefighters as defined in Minnesota Statutes, section 353G.01, subdivision 15, or 424A.001, subd. 10, must be used to fund service pensions governed by Minn. Stat., chap. 353G or 424A; and modifying the requirement to allow municipalities to allocate a portion of fire state aid to pay employer contributions on behalf of firefighters covered by the public employees police and fire retirement plan under Minn. Stat., sec. 353.65, subd. 3.

In making recommendations with information provided by Public Employees Retirement Association and Legislative Commission on Pensions and Retirement staff, the work group shall consider: the history and purpose of fire state aid; the history, purpose, and utilization of Minn. Stat. 2012, sec. 353A.10, subd. 6, which allowed certain municipalities to allocate a portion of fire state aid to pay public employees police and fire employer contributions; the impact on current volunteer firefighters, volunteer firefighter recruitment and retention, and municipalities if fire state aid is allocated between service pensions and public employees police and fire employer contributions; and a presentation by a city of Austin official and a representative from the Austin Part-time Firefighters Relief Association on the city of Austin's current allocation of fire state aid.

The 2018 Omnibus Pension Bill created the Fire State Aid Working Group to study the issue of fire state aid allocation between volunteer firefighter relief association service pensions and PERA Police & Fire employer contributions. The Public Employees Retirement Association (PERA) will organize the group.

The work group shall submit a report by December 31, 2018, that contains the work group's recommendations to the chair, vice-chair, and executive director of the Legislative Commission on Pensions and Retirement. The report shall include recommendations regarding: municipalities allocating a portion of fire state aid to pay employer contributions to the public employees police and fire retirement plan; implementation of policies if fire state aid is divided; the scope of allowable allocations of fire state aid; and other issues the work group determines are relevant.

The first meeting of the Fire State Aid Work Group is Tuesday, August 21 at the Capitol. The work group expires the day following the last day of the 2019 legislative session

Members of the work group shall include: two representatives of Minnesota cities, appointed by the League of Minnesota Cities; two representatives of Minnesota fire chiefs, who are fire chiefs from fire departments with both volunteer firefighters covered by either a volunteer firefighter relief association governed by Minn. Stat., chap.  424A, or the voluntary statewide volunteer firefighter retirement plan governed by Minn. Stat., chap. 353G, and firefighters covered by the public employees police and fire retirement plan governed by Minn. Stat., sec. 353.64, appointed by the Minnesota State Fire Chiefs Association; two representatives of Minnesota volunteer firefighters, who are active volunteer firefighters, appointed by the Minnesota State Fire Departments Association; one representative of the Office of the State Auditor, designated by the state auditor; and one representative of the Department of Revenue, designated by the commissioner of revenue. The work group shall elect a chair from among its members.