Fire State Aid Allocation Agreements

A law change that went into effect on January 1, 2021, allows fire state aid to be allocated between a relief association and affiliated municipality if the fire department is a combination fire department, and both the relief association and municipality have mutually agreed to an allocation method. If both of these criteria are met, the municipality may use the portion of fire state aid it retains pursuant to the agreement to pay employer contributions to the Public Employees Retirement Association on behalf of its full-time firefighters.

The new authority is described in Minn. Stat. § 477B.042 and includes filing requirements with the OSA.

Published last in the August 2023 Pension Newsletter