MN HF857

Imposes a $5 per calendar year surcharge on homeowners insurance and automobile insurance policies, effective for policies issued after June 30, 2013.

Surcharge revenues directed to two accounts: fire pension aid account (from homeowners insurance) and police pension aid account (from automobile insurance) in the general fund.

Fire pension aid account allocates: 17.342% to Public Employees Retirement Association for police and fire retirement fund, 8.658% to municipalities with firefighters in the public employees plan, and 74% to other municipalities receiving fire state aid.

Police pension aid account allocates: one-third as police state aid and two-thirds split between Public Employees Retirement Association and Minnesota State Retirement System based on number of certified active police officers.

Surcharge terminates on December 31 following the actuarial valuation date when either the State Patrol or public employees police and fire retirement plan reaches 90% of total actuarial accrued liabilities on a market value basis.