HF 2366

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to retirement; changing provisions governing certain municipal
amortization aid; amending Minnesota Statutes 2008, section 423A.02,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 423A.02, subdivision 1, is amended to
read:

Subdivision 1.

Amortization state aid.

(a) A municipality in which is located
a local police or salaried firefighters' relief association to which the provisions of
section 69.77, apply, that had an unfunded actuarial accrued liability in the most recent
relief association actuarial valuation, is entitled, upon application as required by the
commissioner of revenue, to receive local police and salaried firefighters' relief association
amortization state aid if the municipality and the appropriate relief association both comply
with the applicable provisions of sections 69.031, subdivision 5, 69.051, subdivisions 1
and 3, and 69.77. deleted text begin If a municipality loses entitlement for amortization state aid in any year
because its local relief association no longer has an unfunded actuarial accrued liability,
the municipality is not entitled to amortization state aid in any subsequent year.
deleted text end

(b) The total amount of amortization state aid to all entitled municipalities must
not exceed $5,055,000.

(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph,
the amount of amortization state aid to which a municipality is entitled annually is an
amount equal to the level annual dollar amount required to amortize, by December 31,
2010, the unfunded actuarial accrued liability of the special fund of the appropriate
relief association as reported in the December 31, 1978, actuarial valuation of the
relief association prepared under sections 356.215 and 356.216, reduced by the dollar
amount required to pay the interest on the unfunded actuarial accrued liability of the
special fund of the relief association for calendar year 1981 set at the rate specified in
Minnesota Statutes 1978, section 356.215, subdivision 8. For the city of Minneapolis, the
amortization state aid amount thus determined must be reduced by $747,232 on account of
the Minneapolis Police Relief Association and by $772,768 on account of the Minneapolis
Fire Department Relief Association. If the amortization state aid amounts determined
under this paragraph exceed the amount appropriated for this purpose, the amortization
state aid for actual allocation must be reduced pro rata.

(d) Payment of amortization state aid to municipalities must be made directly to
the municipalities involved in three equal installments on July 15, September 15, and
November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
shall transmit the aid amount to the treasurer of the local relief association for immediate
deposit in the special fund of the relief association.

(e) The commissioner of revenue shall prescribe and periodically revise the form for
and content of the application for the amortization state aid.