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The PERA Police and Fire Fund is well <br />funded and rapidly approaching full <br />funding. Furthermore, the taxpayers, <br />through payment of the employers 60% <br />of pension payments, already provide <br />sufficient funding to amortize the deficit <br />in that fund. Therefore, the legislature <br />should amend the present provision on dis- <br />bursement of tile two percent tax on auto- <br />mobile casualty insurance to allow expen- <br />ditures by the recipient political subdi- <br />vision of any excess over the employer's <br />share, of police retirement costs for any <br />police department purpose instead of re- <br />quiring payment to the PERA Police and <br />Fire Fund. Where the PERA Police and <br />Fire Fund achieves full funding, employers' <br />and employees' contributions should be <br />reduced by the amounts sufficient to pay <br />normal costs on an equal share basis. <br /> <br />Volunteer firefighters relief associations <br /> <br /> Through the some 550 municipal volunteer <br />fire departments and more than 20 non-profit <br />fir¢fighting corporations, hundreds of cities through- <br />out the state provide fire protection services to <br />their citizens in a very economical manner. Most <br />of these departments and non-profit corporations <br />provide their volunteer members with some type <br />of pension as partial compensation for their com- <br />munity service. Traditionally, the type and level <br />of pension benefits provided as well as the adminis- <br />tration investment of the pension fund has been <br />handled locally in accordance with benefit limits <br />and financial standards specified by law. Although <br />this system has worked very well, the League <br />proposes that there is need to provide cities more <br />flexibility in the use of state-aid funds. Further, <br />the legislature is urged to carefully monitor local <br />funding since effective limits on benefits have now <br />been removed. <br /> <br />Formal civil service systems <br /> <br /> Constraints imposed by the police and fire <br />civil service laws tend to hinder the effectiveness <br />of personnel management systems and limit home <br />rule charter options in cities with such commis- <br />sions. Experience indicates that the present me- <br />thods of modifying these systems have not proved <br />workable. <br /> <br /> The League supports enactment of an optional <br />comprehensive municipal civil service act for both <br />home rule charter and statutory cities, other than <br />cities of the first class, that provides for either a <br />personnel board or an advisory and appeals com- <br />mission. <br /> <br /> If a city already has a personnel board, this <br />board would continue until superseded by an <br />advisory and appeals commission, rule of the <br />council, or terminated by majority vote of the <br />electorate. The council would be able to exclude <br />individuals, class position, or entire departments <br />from the civil service classification. Adoption of <br />the service would be by enacting ordinance, sub- <br />ject to amendment by majority vote of the court- <br />cil. <br /> <br /> The League recommends that the authority to <br />grade and classify positions or keep personnel <br />records be removed from the authority of the <br />civil service board or commission; that appoint- <br />ment or promotion in the classified service be by <br />a fair, impartial process designed to test qualifi- <br />cations and fitness for duties of a position; that <br />dismissal or suspension be for just cause and be <br />subject to appropriate due process considerations. <br /> <br />Federal labor legislation <br /> <br /> In 1971, Minnesota adopted a comprehensive <br />public employment labor relations act which <br />covers all public employees within the state. The <br />scope of the law is sufficiently broad to permit <br />free and extensive participation in the collective <br />bargaining process by both the public employee <br />and employer, including the right to strike for <br />certain employees. The League is opposed to fed- <br />eral labor legislation covering state and local em- <br />ployees on the grounds that it is unconstitutional <br />and that it is patently unnecessary. If the United <br />States Supreme Court determines that such legis- <br />lation is constitutional and that Congress finds it <br />necessary to adopt some sort of national legisla- <br />tion in this area, we believe the best alternative <br />would be to extend the provision' of the National <br />Labor Relations Act to cover public employers <br />and employees in those states that do not have <br />existing labor legislation, allowing states the oppor- <br />tunity to establish their own laws as the need <br />arises. <br /> <br />-10- <br /> <br /> <br />