Subdivision 1. Entitlement. Except as provided in subdivision 3, an active member of the retirement plan is entitled to a service pension from the retirement plan if the person:
(1) has separated from active service with the fire department for at least 30 days;
(2) has attained the age of at least 50 years;
(3) has completed at least five years of good time service credit as a member of the retirement plan if the person is a member of the lump-sum retirement division or has completed at least the minimum number of years of good time service credit as a member of the retirement plan specified in the retirement benefit plan document attributable to the applicable fire department if the person is a member of the monthly benefit retirement division; and
(4) applies in a manner prescribed by the executive director for the service pension.
Subd. 2. Vesting schedule; nonforfeitable portion of service pension. (a) If an active member of the lump-sum retirement division has completed less than 20 years of good time service credit as a member of the lump-sum retirement division of the plan, the person's entitlement to a service pension is equal to the nonforfeitable percentage of the applicable service pension amount, as follows:
| Nonforfeitable percentage of the service pension |
| 40 percent |
| 44 percent |
| 48 percent |
| 52 percent |
| 56 percent |
| 60 percent |
| 64 percent |
| 68 percent |
| 72 percent |
| 76 percent |
| 80 percent |
| 84 percent |
| 88 percent |
| 92 percent |
| 96 percent |
(b) If an active member of the monthly benefit retirement division has completed less than 20 years of good time service credit as a member of the monthly benefit retirement division of the plan, the person's entitlement to a service pension must be governed by the retirement benefit plan document attributable to the applicable fire department.
Subd. 3. Alternative lump-sum pension eligibility and computation. (a) An active member of the lump-sum retirement division of the retirement plan is entitled to an alternative lump-sum service pension from the retirement plan if the person:
(1) has separated from active service with the fire department for at least 30 days;
(2) has attained the age of at least 50 years or the age for receipt of a service pension under the benefit plan of the applicable former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change, whichever is later;
(3) has completed at least five years of active service with the fire department and at least five years in total as a member of the applicable former volunteer firefighter relief association or of the lump-sum retirement division of the retirement plan, but has not rendered at least five years of good time service credit as a member of the lump-sum retirement division of the plan; and
(4) applies in a manner prescribed by the executive director for the service pension.
(b) If retirement coverage before statewide retirement plan coverage was provided to an active member by a defined benefit relief association, as defined in section 424A.001, subdivision 1b, the alternative lump-sum service pension is:
(1) the service pension level specified in the bylaws of the applicable former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change; multiplied by
(2) either full years of service or years and months of service, as specified in the bylaws, as a member of that volunteer firefighter relief association and as a member of the retirement plan; multiplied by
(3) the nonforfeitable percentage of the service pension to which the member is entitled under subdivision 2.
(c) If retirement coverage before statewide retirement plan coverage was provided to an active member by a defined contribution relief association, as defined in section 424A.001, subdivision 1c, the alternative lump-sum service pension is:
(1) the person's account balance as of the date immediately before the election of the retirement coverage change; multiplied by
(2) the nonforfeitable percentage of the account balance to which the person is entitled under subdivision 2; plus
(3) six percent annual compound interest from the date immediately before the election of the retirement coverage change until the date immediately before the date of retirement.
Subd. 4. Deferred service pensions from former volunteer firefighter relief association. A person who (1) had the status of deferred member with a former volunteer firefighter relief association as of the date immediately before the election of the retirement coverage change, and (2) is eligible for a service pension under the former relief association's bylaws is entitled to receive a service pension from the retirement plan. Eligibility for and calculation of the service pension are determined under the former relief association's bylaws as of the date the person terminated firefighting services and under chapter 424A.
History:2009 c 169 art 9 s 18; 2010 c 359 art 6 s 5; 2015 c 68 art 7 s 1; art 8 s 18; 2020 c 108 art 7 s 5,6