Bill
SF 4767
The bill phases in shorter vesting for Minnesota firefighter relief associations, allowing partial pensions and speeding full vesting on a set, time-based schedule.
Title: Phase in shorter vesting schedules for defined contribution and defined benefit firefighters relief associations
Jurisdiction: Minnesota Senate
Authoring and Status
- Senate No.: SF 4767
- Session: 2025-2026
- Authors: Sen. Seeburger and Sen. Howe (co-sponsors)
- Current status: Introduced and referred to State and Local Government (as of 3/25/2026); Howe added as co-sponsor (4/16/2026)
Purpose
- To require and implement phased vesting schedules for both defined contribution (DC) and defined benefit (DB) firefighters relief associations in Minnesota.
- The goal is to gradually accelerate vesting of members’ pension benefits, reducing the time needed to become fully vested over a period of years and creating specific milestones and limits on vesting schedules.
Key Provisions
1) Vesting Schedule for Defined Contribution Relief Associations (Section 1)
- If a DC relief association’s articles of incorporation or bylaws provide a vesting schedule that meets the statute, the association may pay a reduced service pension to a retiring member (subject to vesting).
- Definitions:
- “Vests/Vesting/Vested” = nonforfeitable, unconditional, or legally enforceable right to the member’s account.
- A member must meet minimum age and service requirements to receive a service pension, but only to the extent vested.
- Vesting limits:
- The articles/bylaws may not require more than 20 years of active service for 100% vesting.
- The vesting percentages are capped by a specific schedule:
- 5 years: 40%
- 6 years: 52%
- 7 years: 64%
- 8 years: 76%
- 9 years: 88%
- 10+ years: 100%
- Annual vesting cap timeline:
- Through December 31, 2027: 20 years of service to reach 100% vesting; increments of 4% per year from 5 years (40% at year 5, plus 4% each additional year).
- January 1, 2028 to December 31, 2029: 15 years of service to reach 100% vesting; increments of 6% per year, starting at 40% upon year 5.
- Beginning January 1, 2029: 10 years of active service to reach 100% vesting; increments of 12% per year, starting at 40% upon year 5.
2) Vesting Schedule for Defined Benefit Relief Associations (Section 2)
- Similar structure as DC associations, but for accrued service pensions under defined benefit plans.
- Vesting is nonforfeitable and depends on the association’s articles/bylaws.
- Vesting limits mirror the DC schedule:
- No requirement exceeding 20 years of active service for 100% vesting.
- Vesting percentages align with the same schedule as DC:
- 5 years: 40%
- 6 years: 52%
- 7 years: 64%
- 8 years: 76%
- 9 years: 88%
- 10+ years: 100%
- Timeline phasing:
- Through 12/31/2027: 20 years to 100% vesting, with 4% increments starting at 40% after 5 years.
- 1/1/2028 to 12/31/2029: 15 years to 100% vesting, 6% increments starting at 40% after 5 years.
- 1/1/2029 onward: 10 years to 100% vesting, 12% increments starting at 40% after 5 years.
3) Effective Date (Section 3)
- Sections 1 and 2 become effective the day after final enactment.
What is Affected
- Defined contribution and defined benefit firefighters relief associations in Minnesota.
- The vesting terms apply to members entitled to service or accrued service pensions, with vesting rights determined by the associations’ own articles of incorporation or bylaws, within the new phased limits.
Procedural and Timeline Notes
- Implementing legislation sets phased vesting milestones that gradually ease to 100% vesting based on active service years, with distinct cutoffs:
- 2027 end: 20-year vesting cap
- 2028-2029: 15-year vesting cap
- 2029 onward: 10-year vesting cap
- Effective date is contingent on final enactment; the text states Sections 1 and 2 take effect the day after enactment.
Potential Impact
- Accelerates vesting for firefighters’ retirement benefits, shortening the horizon to full vesting.
- Allows relief associations to offer reduced service pensions for retirees who are partially vested.
- Creates uniform vesting benchmarks across DC and DB firefighter relief associations, while preserving the associations’ ability to adopt vesting schedules compliant with the statute.
- Could affect long-term funding and payout schedules for firefighter pension programs under Minnesota law.
Compiled from official sources — confirm details with the bill’s official record.
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