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HF2395 (Legislative Session 94 (2025-2026))

Firefighters relief associations; maximum lump-sum service pension amount increased for each year of service credited.

Related bill: SF2752

AI Generated Summary

Purpose of the Bill

The bill aims to amend the regulations governing the service pensions for firefighters associated with defined benefit relief associations in Minnesota. Specifically, it seeks to increase the maximum lump sum service pension amount awarded to firefighters for each year of service.

Main Provisions

  • Increase in Maximum Lump Sum Pension: The bill proposes to increase the cap on the lump sum service pension amount from $15,000 to $20,000 for each year of service credited. This applies to defined benefit relief associations where the bylaws stipulate a lump sum pension.

  • Uniform Application of Pension Calculations: The method for calculating service pensions must be applied consistently across all years of active service, ensuring uniformity for all active firefighters.

  • Bylaws and Ratification: The bill permits defined benefit relief associations to set pension amounts in their bylaws that do not exceed the new maximum limits. However, these amounts must be ratified by the municipality, ensuring local government oversight and approval.

Significant Changes to Existing Law

  • The primary change is the increase in the maximum allowable lump sum payment from $15,000 to $20,000 per year of service. This change is intended to provide greater financial support to firefighters upon retirement.

  • The bill clarifies the requirements for uniform application of service pension calculations and outlines conditions under which service credit may not be awarded, such as exceeding service credit caps or for non-vested members who have left and not returned to service within a prescribed period.

Relevant Terms

retirement, firefighters, relief associations, service pension, lump sum, defined benefit, bylaws, municipality, ratification, pension benefits

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 01, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Increased maximum lump sum service pension amount for each year of service credited."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the maximum lump sum service pension amount for firefighters under section 424A.02, subdivision 3.",
      "modified": [
        "Adjusts the maximum limits for service pensions in applicable relief associations."
      ]
    },
    "citation": "424A.02",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references requirements for adopting bylaws amendments related to pension service amounts under section 424A.093, subdivision 6.",
      "modified": [
        "Includes reference for adopting maximum monthly service pension amounts."
      ]
    },
    "citation": "424A.093",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references requirements for adopting bylaws amendments related to pension service amounts under section 424A.092, subdivision 6.",
      "modified": [
        "Includes reference for adopting maximum lump sum service pension amounts."
      ]
    },
    "citation": "424A.092",
    "subdivision": "subdivision 6"
  }
]

Sponsors