S.F. No. 4123 Summary

• Establishes definitions for volunteer firefighter relief associations, including defined benefit plans, defined contribution plans, members, and other benefit recipients in Minnesota Statutes chapter 424B.

• Creates procedures for voluntary termination of retirement plans and dissolution of relief associations when affiliated fire departments are dissolved or cease employing active firefighters.

• Requires full vesting of all members' retirement benefits upon plan termination and allows relief association boards to increase defined benefit amounts up to 125 percent of statutory maximums if plan assets exceed liabilities.

• Mandates liquidation and distribution of retirement benefits within 210 days of termination, with surplus plan assets first returned to municipalities for contributions made during preceding nine years, then allocated to members or retained by the relief association.

• Repeals existing sections 424B.20 and 424B.21 governing dissolution procedures and replaces them with a new comprehensive section 424B.22 requiring trustees to notify state officials, transfer records to municipalities, and establish annuity contracts for monthly pension beneficiaries.