Minnesota modifies deferred service pension rules for volunteer firefighters

February 13, 2025 | Senate Bills, Introduced Bills, 2025 Bills, Minnesota Legislation Bills, Minnesota


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Minnesota modifies deferred service pension rules for volunteer firefighters
The Minnesota State Legislature has introduced Senate Bill 1341, aimed at amending the provisions related to deferred service pensions for volunteer firefighters and paid on-call firefighters. The bill, introduced on February 13, 2025, seeks to clarify eligibility and enhance benefits for deferred members of relief associations.

One of the key provisions of the bill is the definition of a "deferred member," which now includes individuals who have separated from active service but have completed the necessary service and membership requirements. Notably, the bill waives the requirement for members to separate from active service if they have discontinued their firefighting duties while still being employed part-time or full-time in related roles.

The bill also stipulates that deferred members can receive their pensions as soon as they reach age 50 or the minimum age specified in the relief association's bylaws. This change aims to provide more flexibility and access to retirement benefits for those who have served in these critical roles.

Another significant aspect of Senate Bill 1341 is the requirement for defined contribution relief associations to credit interest or additional investment performance on deferred pensions. This provision ensures that deferred members' benefits grow during the deferral period, enhancing their financial security upon retirement.

Debate surrounding the bill has focused on its potential impact on local relief associations and the financial implications of the new provisions. Supporters argue that the changes will better support firefighters who may leave active duty but still contribute to their communities in other capacities. However, some opposition has emerged regarding the financial sustainability of these enhanced benefits, with concerns about the long-term viability of relief association funds.

The bill is set to take effect on January 1, 2026, and its passage could have significant implications for the state's volunteer firefighting community. By providing clearer pathways to retirement benefits, Senate Bill 1341 aims to attract and retain individuals in these essential roles, ultimately strengthening public safety in Minnesota. As the legislative process continues, stakeholders will be closely monitoring discussions and potential amendments to the bill.

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Scribe from Workplace AI
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