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  Thurs Oct 9, 2009 7-9PM Bloomington FD Station #1 $20/person (max $60/Relief Assoc) Register at info@mnfpc.com Fire Schools RA Trustee MSFDA Convention MN Muni Clerks Institute |
Trustee Questions & Answers
"My family, work and firefighter responsibilities are time consuming enough without having to run the relief association too. MNFPC will provide us the documents and support to run the organization, and will give us credibility with our membership and municipality."
- Michael Niehaus
MNFPC knows trustees are committed to running their association and, understandably, want to make a smart choice when adopting new bylaws. To make sure the MNFPC Bylaw Solution™ was created by trustees for trustees, we asked a group of fire relief associations to list questions they thought trustees would ask when considering the MNFPC Bylaw Solution™. If you have a question you don't see on the list, contact us.President, Saint Paul Park Fire Department Relief Association
Talk with trustees who helped develop the MNFPC product or talk with clients about their
experience.
If you are interested in purchasing the MNFPC Bylaw Solution, simply contact us and we'll walk you through it.
Q1: How did the concept of MNFPC come about?
A1: When Krista Boston, the primary legal counsel for fire relief associations, decided she could no longer draft bylaw solutions on a part-time basis, trustees who had used her legal services helped develop a cost-effective bylaw and retirement plan solution that would help all relief associations, regardless of their size and location, fulfill their fiduciary responsibilities. In October 2004, a trustee focus group was formed with the assistance of Colleen H. Bollom, president of MNFPC, to discuss the compliance, training and support issues of both defined benefit and defined contribution volunteer fire relief associations. The focus group also evaluated if model bylaws and pension plan could be created similar to the private sector retirement plan model. Finally, the focus group determined that the MNFPC Bylaw Solution would offer trustees assistance with interpretation questions, easy compliance with pension legislative changes and provide a framework to coordinate investment, training and accounting professional services. back to top Q2: How is the MNFPC Bylaw Solution priced given the various sizes of relief associations statewide? A2: Approximately one-half of the relief associations statewide have assets less than $200,000, the value at which the State Auditor requires an annual independent audit. The State Auditor also provides a report that lists relief associations paying 1% or more of their pension plans' assets in annual fees. Since the compliance issues of small, rural relief associations continue to be a concern to the on-going viability of locally-controlled fire relief association pension plans, MNFPC believes it is in the interests of the entire fire service community that there be a two tier conversion fee based on a $200,000 plan asset threshold. As a result, larger relief association will pay an additional $500 one-time conversion fee and an additional $100 per year annual maintenance fee when compared to smaller relief associations. For large relief associations with assets more than $200,000, the cost will still be minimal when calculated as a percentage of plan assets. back to top Q3: How much legal assistance can we expect outside the "normal" updates? A3: MNFPC cannot provide legal advice like a law firm. However, we will answer common legal questions related to the MNFPC Bylaw Solution once MNPFC's legal counsel has reviewed the answers for accuracy. If a relief association requires a legal opinion for a situation unrelated to the MNFPC Bylaw Solution, the FRA will have to hire its own attorney, as is the current practice. back to top Q4: How much will our current bylaws change when converting to the MNFPC model bylaws? A4: It is MNFPC's intention, and that of our focus group, that the model bylaws will provide enough customizable options to meet the needs of 90% of the fire relief associations in Minnesota. The options you choose will allow your model bylaws to reflect your current practices/situation. Your customized version of the model bylaws will not only comply with current state and federal law, it's our intent that the model will allow for seamless updates for future changes in state and federal law. back to top Q5: How much will the bylaws change after the initial conversion? A5: MNFPC cannot predict how often state and federal pension legislation could result in changes to the MNFPC model bylaw document. However, MNFPC anticipates that relief associations will continue to amend their bylaws for common changes that occur as standard operating procedures of running the relief association (e.g., benefit level increases (DB), municipal contribution contracts (DC)). We anticipate that these common types of bylaw amendments will be available immediately as options in the model bylaw document and included in the annual maintenance fee. back to top Q6: How do we amend our bylaws after they are initially approved by the relief association membership and/or city council? A6: MNFPC anticipates that relief associations will continue to amend their bylaws caused by common changes that occur as standard operating procedures of running the relief association (e.g., benefit level increases (DB), municipal contracts (DC)). We anticipate that these common types of bylaw amendments will be available immediately as options in the model bylaw document and included in the annual maintenance fee. If a change in federal or state statutes requires a change for all relief associations, MNFPC will notify clients of the legislative change and provided the model bylaw document revisions necessary for compliance. MNFPC will also provide documentation to the relief association to communicate the rationale for the change and actions required by the board, membership and governmental jurisdiction in the annual maintenance fee. If a relief association requires a bylaw provision unique to its organization outside of the customizable options, they will have to submit a request for consideration to MNFPC and the company will evaluate the costs and benefits of adding this option to a future version of the MNFPC Bylaw Solution. back to top Q7: Do we have to use all of the model bylaw document or only sections? A7: A relief association will use the model bylaw document and customize it by selecting options that best fit the characteristics and needs of its organization. One model bylaw document with legally compliant, customizable sections will enable MNFPC to fulfill its mission to provide a cost-effective and compliant bylaw document for all relief associations. back to top Q8: What support will be available to relief associations that use the model bylaws? A8: During the conversion of a relief association from its current bylaws to the model bylaws, MNFPC will assist relief associations by telephone, e-mail or mail with selecting the model bylaw options that:
In addition to the trustee support services, MNFPC will be encouraging trustees to attend training by providing a 50% discount on the firefighter portion of the annual maintenance fee for attending MNFPC continuing education courses through the Fire Schools and fire service organizations. MNFPC also includes access to a client-only section of our Web site for trustees who have purchased the MNFPC Bylaw Solution. back to top Q9: What if we pay the one-time conversion, but not the annual maintenance fee? A9: MNFPC has priced its bylaw solution to make cost-effective bylaws and trustee support service available for the volunteer fire service community throughout Minnesota. If a relief association elects not to subscribe to the annual maintenance fees, it will not be contacted when federal or state legislative changes occur, risking bylaw compliance and potentially delaying State Aid (2% Money). The relief association will also no longer have access to the client section of the www.mnfpc.com web site or MNFPC consultant telephone and e-mail support for trustee questions. Relief associations need to understand that bylaw changes are only one part of the MNFPC annual maintenance fees. The challenge most relief associations have with their bylaws (in addition to staying current with legislative changes) is the trustee's ability to have knowledgeable and responsive answers to questions regarding bylaw interpretation and consistent training and support. back to top |
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