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2014_1208_CCpacket
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Attachment A <br />State of Minnesota <br /> \\ <br />LEGISLATIVE COMMISSION ON PENSIONS AND RETIREMENT <br />TO: Senator John Marty <br />Representative Alice Hausman <br />Senator Bev Scalze <br />Representative Jason Isaacson <br />FROM: Lawrence A. Martin, Executive Director <br />RE: Summary of Draft Proposed Special Legislation LCPR14-052 Modifying Roseville <br />Volunteer Firefighters' Relief Association Governance and Administration <br />DATE: October 2, 2014 <br />Introduction <br />As requested by Senator Marty and Representative Hausman, I have prepared a revised draft of potential <br />special legislation, Document LCPR14-052, changing the governance and administration of the Roseville <br />Volunteer Firefighters' Relief Association as the relief association phases out of existence. This <br />memorandum summarizes the Roseville Volunteer Firefighters' Relief Association pension issue, <br />summarizes the draft potential special legislation for Roseville, and identifies and discusses the policy <br />issues arising in connection with the draft potential legislation. <br />Roseville Volunteer Firefighters' Relief Association Pension Issue <br />Roseville, akin to many Minnesota municipalities, has a wholly or primarily emergency on-call fire <br />department and a volunteer firefighter relief association to provide pension coverage for those emergency <br />on-call firefighters. In Roseville, the volunteer firefighter relief association is one of about two dozen in <br />the state that provides a monthly benefit (i.e., annuity for life) rather than a lump sum benefit. As I <br />understand the situation, Roseville has, with municipal action, begun phasing out its emergency on-call <br />fire department, employing instead part-time firefighters, and its volunteer firefighter relief association, <br />reportedly providing retirement coverage for those part-time firefighters a plan administered by the Public <br />Employees Retirement Association (PERA). The part-time firefighters reportedly have begun organizing <br />a union, represented by American Federation of State, County and Municipal Employees (AFSCME) <br />currently, and are apparently collectively bargaining a contract. The current on-call emergency <br />firefighters believe that they will be converted to part-time firefighters in the near future. If the active <br />membership of the Roseville Volunteer Firefighters' Relief Association is diminished in number in the <br />near term or eliminated, the general statutory provision specifying the governance of the volunteer <br />firefighter relief association (with six members elected by the membership, of which one can be a retired <br />member if the relief association is a monthly benefit plan, and with three municipal officials, of which one <br />is the department fire chief) will no longer adequately function for the relief association. <br />Summary of Draft Proposed Legislation LCPR14-052 <br />Potential special proposed legislation LCPR14-052 permits the Roseville Volunteer Firefighters' Relief <br />Association, if approved by the Roseville City Council, to utilize one or both of two options for <br />maintaining appropriate governance of the relief association. One option is by increasing the number of <br />retired members to be elected to serve on the relief association board of trustees to three immediately, to <br />four when the relief association active membership drops below 26, to five when the relief association <br />active membership drops below 11, and to six when there no longer is any association active membership. <br />Another option is by permitting the Roseville Volunteer Firefighters' Relief Association board of trustees, <br />with city council approval, to transfer the relief association administration to the board of directors and <br />executive director of the Public Employees Retirement Association (PERA). Additionally, the disposition <br />of the Roseville Volunteer Firefighters' Relief Association assets upon the death of the last retiree and the <br />last beneficiary is specified as the deposit of the remaining assets in the Roseville city treasury. <br />Discussion and Analysis <br />Document LCPR14-052 provides the City of Roseville and the Roseville Volunteer Firefighters' Relief <br />Association with two options in providing for the administration of pension coverage for the remaining <br />active and retired members of the relief association, either by increasing the number of permitted retired <br />board members as the active membership of the relief association declines or by permitting the transfer of <br />LCPR14-052 Memo.docx Page 1 <br /> <br />
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