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 of 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.
- How did the concept of MNFPC come about?
- How are the MNFPC model bylaws priced given the various sizes of relief associations statewide?
- How much legal assistance can we expect outside the “normal” updates?
- How much will our current bylaws change when converting to the MNFPC model bylaws?
- How much will the bylaws change after the initial conversion?
- How do we amend our bylaws after they are initially approved by the relief association membership and/or city council?
- Do we have to use all of the model bylaw document or only sections?
- What support will be available to relief associations that use the model bylaws?
- What if we pay the one-time conversion, but not the annual maintenance fee?
- What is the benefit of the relief association subscriber-only, secured portion of www.MNFPC.com?
Talk with trustees who helped develop the MNFPC product or talk with clients about their experience.
How did the concept of MNFPC come about?
In the late 1990s, Krista Boston, the primary legal counsel for fire relief associations decided she could no longer draft bylaw solutions on a part-time basis.
In 2004, trustees who had used Ms. Boston’s legal services joined together to create a focus group. This trustee focus group, joined with Colleen Hartmon Bollom, owner of MNFPC to pursue one goal: to help all relief associations, regardless of their size and location, manage and administer their pension plans and fulfill their fiduciary responsibilities in an efficient and cost-effective manner, while maintaining local control.
The focus group discussed the compliance, training and support issues of both defined benefit and defined contribution lump-sum volunteer fire relief associations. The result was model bylaws that can be customized by each relief association similar to how the private sector retirement plans are developed and serviced. In addition, MNFPC would offer a coop, or consortium, approach to:
- assisting trustees with bylaw interpretation questions,
- amending bylaws to incorporate legislative changes, and
- helping trustees coordinate the relief associations’ investment, training, accounting and state reporting needs.
How does MNFPC price the model bylaws?
MNFPC has created a two-tier conversion fee based on a $200,000 plan asset threshold.
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. 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 the two-tier fee is in the interests of the entire fire service community. With this approach, larger relief association will pay an additional $500 one-time conversion fee (compared to smaller relief associations), a minimal cost when calculated as a percentage of plan assets.
How much legal assistance can we expect outside the “normal” updates?
MNFPC takes a cooperative, consortium approach to assisting relief associations. This approach increases the assistance at a decreased price. While MNFPC cannot provide legal advice like a law firm, it will answer common questions related to model bylaws. If a relief association requires a legal opinion for a situation unrelated to the model bylaws, the relief association will have to hire its own attorney, as it normally would.
How much will our current bylaws change when converting to the MNFPC model bylaws?
It is MNFPC’s intention, that the model bylaws will provide enough customizable options to meet the needs of 90% of the fire relief associations in Minnesota. Currently, there are over 300+ model options and no two relief associations have the same document. The options you choose will allow your model bylaws to reflect your current administrative practice and political situation, while taking advantage of the best ideas gathered from trustees across the state. Your customized version of the model bylaws will help your relief association comply with current Minnesota laws, and allow for seamless updates for relief association initiated bylaw amendments or those required as the result of changes to Minnesota law.
How much will the bylaws change after the initial conversion?
MNFPC cannot predict how often state pension legislation could result in amendments to the MNFPC model bylaw documents. Other than the state mandated changes, relief associations may continue to amend their bylaws for common operational changes in the normal course of running the relief association (e.g., benefit level increases (DB), municipal contribution contracts (DC)). Either type of amendment (trustee initiated or state mandated) is included in MNFPC’s annual maintenance fee.
How do we amend our bylaws after they are initially approved by the relief association membership and/or city council?
Whether mandated by state law changes or by a relief association-initiated change for common operational reasons (e.g., benefit level increases (DB), municipal contracts (DC)), MNFPC will assist the relief associations in amending the bylaws and filing the amendment with the Office of the State Auditor. Either type of amendment (trustee initiated or state mandated) is included in MNFPC’s annual maintenance fee.
If a change in Minnesota statutes requires that all relief associations change their bylaws to remain compliant, MNFPC will revise the model bylaws and make available the amendment/restatement to all relief association subscribers. MNFPC will also provide description of 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 submit a request for consideration to MNFPC and the company will evaluate the costs and benefits of adding this enhancement to a future version of the MNFPC Bylaw Solution.
Do we have to use all of the model bylaw document or only sections?
A relief association must use the model bylaw document in its entirety and customize it by selecting options that best fit the characteristics and needs of its organization. Having one model bylaw document with legally reviewed, customizable options, allows MNFPC to operate as a consortium and fulfill its mission to provide a low-cost, attorney-reviewed bylaws, forms and training for all relief associations, while allowing relief associations to maintain local control.
What support will be available to relief associations that use the model bylaws?
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:
- Best match their existing bylaw provisions or current operating procedures,
- Comply with recent Minnesota state nonprofit and volunteer fire relief association legislative changes
- Recommend “best practices” learned from other relief associations
Trustees will also be provided templates to help them understand, communicate and document actions required by the board, membership and, if necessary, the municipality, joint powers board, independent nonprofit firefighting corporation or township to approve the amendment/restatement and ratify the benefit level amount.
In addition to the trustee support services, MNFPC offers trustee continuing education courses and, by invitation, classes through the Fire Schools and fire service municipal organizations.
MNFPC also includes access to a client-only section of our Web site for trustees who have purchased the MNFPC Bylaw Solution.
What if we pay the one-time conversion, but not the annual maintenance fee?
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 eligible for amendments to the model bylaws when state legislative changes occur, which might potentially delay 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.
What is the benefit of the relief association subscriber-only, secured portion of www.MNFPC.com?
Included in the one-time conversion fee and the annual maintenance is filing the restated Articles of Incorporation, and the amended or restated bylaws with the Minnesota Secretary of State and Minnesota State Auditor, respectively. The subscriber-only, secured web-page stores the most recently filed version of subscribers’ articles and bylaws, in addition to membership and pension payment forms and templates needed to run relief associations efficiently, consistently and in line with trustees’ fiduciary duties.