1.1                          A bill for an act 
  1.2             relating to retirement; modifying provisions of 
  1.3             various local pension plans; making miscellaneous 
  1.4             benefit and administrative changes; including 
  1.5             nonprofit firefighting corporations as municipalities 
  1.6             in certain circumstances; amending Minnesota Statutes 
  1.7             1994, sections 353B.11, subdivisions 1 and 3; 353B.13; 
  1.8             and 466.01, subdivisions 1 and 6; Laws 1965, chapter 
  1.9             519, section 1, as amended; Laws 1992, chapter 563, 
  1.10            section 5; Laws 1994, chapter 490, section 2; and Laws 
  1.11            1995, chapter 262, article 7, section 1. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1 
  1.14              ITASCA COUNTY MEDICAL CENTER; RETIREMENT 
  1.15     Section 1.  Laws 1995, chapter 262, article 7, section 1, 
  1.16  is amended to read: 
  1.17     Section 1.  [TRANSFERRED EMPLOYEES.] 
  1.18     This section applies if the Itasca county medical center is 
  1.19  sold, leased, or transferred to a private entity or public 
  1.20  corporation.  Notwithstanding any provision of Minnesota 
  1.21  Statutes, sections 356.24 and 356.25 to the contrary, to 
  1.22  facilitate the orderly transition of employees affected by the 
  1.23  sale, lease, or transfer, the county may, in its discretion, 
  1.24  make, from assets to be transferred to the private entity or 
  1.25  public corporation, payments to a qualified pension plan 
  1.26  established for the transferred employees by the private 
  1.27  entity or public corporation, to provide benefits substantially 
  1.28  similar to those the employees would have been entitled to under 
  2.1   the provisions of the public employees retirement association, 
  2.2   Minnesota Statutes 1994, sections 353.01 to 353.46. 
  2.3      Sec. 2.  [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.] 
  2.4      Subdivision 1.  [ELIGIBILITY.] (a) An eligible individual 
  2.5   is an individual who: 
  2.6      (1) is an employee of the Itasca county medical center 
  2.7   immediately prior to the sale, lease, or transfer of that 
  2.8   facility to a private entity or public corporation; 
  2.9      (2) is terminated at the time of the sale, lease, or 
  2.10  transfer; and 
  2.11     (3) had less than three years of service credit in the 
  2.12  public employees retirement association plan at the date of 
  2.13  termination. 
  2.14     (b) For an eligible individual under paragraph (a), the 
  2.15  county may make a member contribution equivalent payment under 
  2.16  subdivision 2. 
  2.17     Subd. 2.  [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The 
  2.18  member contribution equivalent payment is an amount equal to the 
  2.19  total refund provided by Minnesota Statutes, section 353.34, 
  2.20  subdivisions 1 and 2.  To be eligible for the member 
  2.21  contribution equivalent payment, the individual in subdivision 
  2.22  1, paragraph (a), must apply for a refund under Minnesota 
  2.23  Statutes, section 353.34, subdivisions 1 and 2, within one year 
  2.24  of termination.  A member contribution equivalent amount 
  2.25  exceeding $200 must be made directly to an individual retirement 
  2.26  account under section 408(a) of the federal Internal Revenue 
  2.27  Code, as amended, or to another qualified plan.  A member 
  2.28  contribution equivalent amount of $200 or less may, at the 
  2.29  preference of the individual, be made to the individual or to an 
  2.30  individual retirement account under section 408(a) of the 
  2.31  federal Internal Revenue Code, as amended, or to another 
  2.32  qualified plan. 
  2.33     Sec. 3.  [EFFECTIVE DATE.] 
  2.34     Sections 1 and 2 are effective on the day following 
  2.35  approval by the Itasca county board and compliance with 
  2.36  Minnesota Statutes, section 645.021. 
  3.1                              ARTICLE 2 
  3.2             PUBLIC SAFETY EMPLOYEE RETIREMENT PROVISIONS 
  3.3      Section 1.  Laws 1992, chapter 563, section 5, is amended 
  3.4   to read: 
  3.5      Sec. 5.  [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS; 
  3.6   LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.] 
  3.7      (a) A monthly service pension or retirement benefit payment 
  3.8   from the St. Paul fire department relief association 
  3.9   consolidation account or the St. Paul police relief association 
  3.10  consolidation account may not be reduced in amount to an amount 
  3.11  that is less than that received by the person for the 
  3.12  immediately previous month.  
  3.13     (b) The service pension or retirement benefit payable from 
  3.14  the St. Paul fire department consolidation account or from the 
  3.15  St. Paul police consolidation account to a person who becomes 
  3.16  newly entitled to that service pension or retirement benefit may 
  3.17  not be an amount that is less than the service pension or 
  3.18  retirement benefit then payable to a comparably situated 
  3.19  pensioner or benefit recipient of that consolidation account. 
  3.20     This (c) The limitation in paragraph (a) or (b) may not be 
  3.21  construed to limit the power of the board of trustees of the 
  3.22  relief executive director of the public employees retirement 
  3.23  association to require proof of continuing eligibility for 
  3.24  receipt of a disability benefit or a survivor benefit, or to 
  3.25  require the reduction in amount or elimination of a disability 
  3.26  benefit in the event of changed medical circumstances, or to 
  3.27  require the reduction in amount or elimination of a survivor 
  3.28  benefit in the event of changes in eligibility. 
  3.29     Sec. 2.  Laws 1994, chapter 490, section 2, is amended to 
  3.30  read: 
  3.31     Sec. 2.  [AUSTIN FIRE DEPARTMENT RELIEF ASSOCIATION; 
  3.32  SURVIVOR COVERAGE FOR CERTAIN SPOUSES OF CERTAIN RETIRED 
  3.33  FIREFIGHTERS.] 
  3.34     (a) Notwithstanding any provision to the contrary of the 
  3.35  general or special laws governing the Austin fire department 
  3.36  relief association, the articles of incorporation of the relief 
  4.1   association, or the bylaws of the relief association, a person 
  4.2   described in paragraph (b) is entitled to a surviving spouse 
  4.3   benefit as provided in paragraph (c). 
  4.4      (b) A person entitled under paragraph (a) is a person who: 
  4.5      (1) was the legally married spouse of a deceased retired or 
  4.6   disabled member of the Austin fire department relief association 
  4.7   at the time of the deceased member's death; 
  4.8      (2) married the retired or disabled member after the date 
  4.9   on which the member terminated active employment as a 
  4.10  firefighter by the Austin fire department; and 
  4.11     (3) was married for at least three years before the date of 
  4.12  the death of the retired or disabled member; and 
  4.13     (3) was married to a retired or disabled member whose prior 
  4.14  spouse, if any, predeceased the member.  
  4.15     (c) The surviving spouse benefit is an amount equal to the 
  4.16  amount of a surviving spouse benefit payable by the Austin fire 
  4.17  department relief association to the surviving spouse of a 
  4.18  deceased active member of the relief association under Laws 
  4.19  1949, chapter 87, section 26, subdivision 4, as amended by Laws 
  4.20  1965, chapter 418, section 5, reduced by any amount awarded or 
  4.21  payable from the service pension or disability benefit of the 
  4.22  deceased former firefighter to a former spouse of the deceased 
  4.23  active member by virtue of the legal dissolution of the member's 
  4.24  marriage to the former spouse. 
  4.25     Sec. 3.  [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 
  4.26  AUTHORIZATION OF VARIOUS ADMINISTRATIVE CHANGES.] 
  4.27     Notwithstanding any provision of any law to the contrary, 
  4.28  the Minneapolis fire department relief association is authorized 
  4.29  to implement the following administrative and other 
  4.30  modifications: 
  4.31     (1) five-year vesting under Minnesota Statutes, section 
  4.32  423A.19, retroactive to the April 1, 1987, date when the change 
  4.33  was approved by the Minneapolis city council, despite the 
  4.34  failure to meet the filing requirement of Minnesota Statutes, 
  4.35  section 423A.19, subdivision 4; 
  4.36     (2) the period for applying for a disability benefit by or 
  5.1   on behalf of a disabled member increased from 30 days after the 
  5.2   beginning of the disability to 90 days after the beginning of 
  5.3   the disability; 
  5.4      (3) a salary for services for the members of the board of 
  5.5   trustees of the relief association who are elected members and 
  5.6   who are not officers in an amount equal to 2.5 percent of the 
  5.7   maximum salary of a first grade firefighter; 
  5.8      (4) a salary for the president of the relief association 
  5.9   increased to an amount equal to ten percent of the maximum 
  5.10  salary of a first grade firefighter; 
  5.11     (5) a salary for the executive secretary of the relief 
  5.12  association increased to an amount equal to 30 percent of the 
  5.13  maximum salary of a first grade firefighter; and 
  5.14     (6) eligibility for the surviving spouse of a deceased 
  5.15  deferred member, the dependent surviving child or children of a 
  5.16  deceased deferred member, or a combination, to receive annual 
  5.17  postretirement payments under Laws 1989, chapter 319, article 
  5.18  19, section 7, as amended by Laws 1992, chapter 471, article 2, 
  5.19  section 5, with confirmation and ratification of any past 
  5.20  payments of annual postretirement payments to survivors of 
  5.21  deceased deferred members since June 1, 1989. 
  5.22     Sec. 4.  [ST. LOUIS PARK; EXCLUSIONS FROM FIREFIGHTERS 
  5.23  CIVIL SERVICE.] 
  5.24     Notwithstanding Minnesota Statutes, chapter 420, in the 
  5.25  city of St. Louis Park, volunteer and paid-on-call firefighters, 
  5.26  who are employees of the fire department, are excluded from 
  5.27  civil service. 
  5.28     Sec. 5.  [EFFECTIVE DATE.] 
  5.29     Subdivision. 1.  [ST. PAUL POLICE AND FIRE.] Section 1 is 
  5.30  effective retroactively to December 31, 1993, upon approval by 
  5.31  the city council of the city of St. Paul and compliance with 
  5.32  Minnesota Statutes, section 645.021. 
  5.33     Subd. 2.  [AUSTIN FIRE.] Section 2 is effective upon 
  5.34  approval by the Austin city council and compliance with 
  5.35  Minnesota Statutes, section 645.021. 
  5.36     Subd. 3.  [MINNEAPOLIS FIRE.] (a) Section 3 is effective on 
  6.1   the day following final approval by the Minneapolis city council 
  6.2   and compliance with Minnesota Statutes, section 645.021. 
  6.3      (b) The city council resolution must specify the provisions 
  6.4   contained in section 3 that it is approving.  The city council 
  6.5   may approve some or all of the provisions contained in section 3.
  6.6      Subd. 4.  [ST. LOUIS PARK POLICE AND FIRE.] Section 4 takes 
  6.7   effect the day after the chief clerical officer of the city of 
  6.8   St. Louis Park complies with Minnesota Statutes, section 
  6.9   645.021, subdivision 3. 
  6.10                             ARTICLE 3 
  6.11         MINNEAPOLIS FIRE; SURVIVING SPOUSE BENEFIT CHANGE 
  6.12     Section 1.  Laws 1965, chapter 519, section 1, as amended 
  6.13  by Laws 1967, chapter 819, section 1; Laws 1969, chapter 123, 
  6.14  section 1; Laws 1975, chapter 57, section 1; Laws 1977, chapter 
  6.15  164, section 2; Laws 1990, chapter 589, section 5; and Laws 
  6.16  1992, chapter 454, section 2, is amended to read: 
  6.17     Section 1.  [MINNEAPOLIS, CITY OF; FIREFIGHTER'S RELIEF 
  6.18  ASSOCIATION; SURVIVING SPOUSE'S ENTITLEMENT.] Notwithstanding 
  6.19  the provisions of Minnesota Statutes 1965, Section 69.48, to the 
  6.20  contrary, when a service pensioner, disability pensioner, or 
  6.21  deferred pensioner, or an active member of a relief association 
  6.22  dies, leaving: 
  6.23     (1) A surviving spouse who was a legally married spouse, 
  6.24  residing with the decedent, and who was married while or prior 
  6.25  to the time the decedent was on the payroll of the fire 
  6.26  department in the case of a deceased active member; and or who, 
  6.27  in case the deceased member was a service, disability or 
  6.28  deferred pensioner, was legally married to the member at least 
  6.29  one year before the member's retirement from the fire department 
  6.30  or for at least five years before the member's death if the 
  6.31  marriage occurred after retirement; or 
  6.32     (2) A child or children who were living while the deceased 
  6.33  was on the payroll of the fire department, or born within nine 
  6.34  months after the decedent was withdrawn from the payroll of the 
  6.35  fire department, the surviving spouse and the child or children 
  6.36  shall be entitled to a pension or pensions, as follows: 
  7.1      (a) To the surviving spouse, a pension of not less than 17 
  7.2   units, and not to exceed the total of 22 units per month, as the 
  7.3   bylaws of the association provide, for life; provided, that if 
  7.4   the spouse shall remarry then the pension shall cease and 
  7.5   terminate as of the date of remarriage; provided, further, if 
  7.6   the remarriage terminates for any reason, the surviving spouse 
  7.7   shall again be entitled to a pension as the bylaws of the 
  7.8   association provide; 
  7.9      (b) To the child or children, if their other parent is 
  7.10  living, a pension of not to exceed eight units per month for 
  7.11  each child up to the time each child reaches the age of not less 
  7.12  than 16 years and not to exceed an age of 18 years; provided, 
  7.13  however, upon approval by the board of trustees, such a child 
  7.14  who is a full-time student, upon proof of compliance with the 
  7.15  provisions of this act, may be entitled to such pension so long 
  7.16  as the child is a full-time student and has not reached 22 years 
  7.17  of age, all in conformity with the bylaws of the association; 
  7.18  provided, further, the total pensions hereunder for the 
  7.19  surviving spouse and children of the deceased member shall not 
  7.20  exceed the sum of 41 units per month; 
  7.21     (c) A child or children of a deceased member after the 
  7.22  death of their other parent, or in the event their other parent 
  7.23  predeceases the member, be entitled to receive a pension or 
  7.24  pensions in such amount as the board of trustees of the 
  7.25  association shall deem necessary to properly support the child 
  7.26  or children until they reach the age of not less than 16 and not 
  7.27  more than 18 years; provided, however, upon approval by the 
  7.28  board of trustees, such a child who is a full-time student, upon 
  7.29  proof of compliance with the provisions of this act, may be 
  7.30  entitled to such pension so long as the child is a full-time 
  7.31  student and has not reached 22 years of age, as the bylaws of 
  7.32  the association may provide; but the total amount of the pension 
  7.33  or pensions hereunder for any child or children shall not exceed 
  7.34  the sum of 41 units per month; 
  7.35     (d) For the purposes of this act, a full-time student is 
  7.36  defined as an individual who is in full-time attendance as a 
  8.1   student at an educational institution.  Whether or not the 
  8.2   student was in full-time attendance would be determined by the 
  8.3   board of trustees of the association in the light of the 
  8.4   standards and practices of the school involved.  Specifically 
  8.5   excluded is a person who is paid by the person's employer while 
  8.6   attending school at the request of the person's employer.  
  8.7   Benefits may continue during any period of four calendar months 
  8.8   or less in any 12 month period in which a person does not attend 
  8.9   school if the person shows to the satisfaction of the board of 
  8.10  trustees that the person intends to continue in full-time school 
  8.11  attendance immediately after the end of the period.  An 
  8.12  educational institution is defined so as to permit the payment 
  8.13  of benefits to students taking vocational or academic courses in 
  8.14  all approved, accredited or licensed schools, colleges, and 
  8.15  universities.  The board of trustees shall make the final 
  8.16  determination of eligibility for benefits if any question arises 
  8.17  concerning the approved status of the educational institution 
  8.18  which the student attends or proposes to attend; 
  8.19     (e) In the event that a child who is receiving a pension as 
  8.20  provided above shall marry before the age of 22 years, the 
  8.21  pension shall cease as of the date of the marriage. 
  8.22     Sec. 2.  [EFFECTIVE DATE.] 
  8.23     Section 1 is effective on the day following approval by the 
  8.24  Minneapolis city council and compliance with Minnesota Statutes, 
  8.25  section 645.021. 
  8.26                             ARTICLE 4 
  8.27                         CONFORMING CHANGES 
  8.28     Section 1.  Minnesota Statutes 1994, section 353B.11, 
  8.29  subdivision 1, is amended to read: 
  8.30     Subdivision 1.  [ELIGIBILITY; SURVIVING SPOUSE BENEFIT.] 
  8.31  (a) Except as specified in paragraph (b), (c), (d), (e), (f), 
  8.32  (g), or (f) (h), the person who survives a deceased active, 
  8.33  deferred, or retired member, who was legally married to the 
  8.34  member at the time of the death of the deceased member, who was 
  8.35  legally married to the member for at least one year before the 
  8.36  separation from active service if the deceased member was a 
  9.1   deceased, deferred, or retired member and who was residing with 
  9.2   the member at the time of the death of the deceased member shall 
  9.3   be entitled to receive a surviving spouse benefit.  
  9.4      (b) The person who survives a deceased active, deferred, or 
  9.5   retired member, who was legally married to the member at the 
  9.6   time of the death of the deceased member, who was legally 
  9.7   married to the member at the time of separation from active 
  9.8   service if the deceased member was a deceased deferred or 
  9.9   retired member and who was residing with the member at the time 
  9.10  of the death of the member shall be entitled to receive a 
  9.11  surviving spouse benefit in the case of former members of the 
  9.12  following consolidating relief associations:  
  9.13     (1) Albert Lea police relief association; 
  9.14     (2) Anoka police relief association; 
  9.15     (3) Austin firefighters relief association; 
  9.16     (4) Austin police relief association; 
  9.17     (5) (4) Brainerd police benefit association; 
  9.18     (6) (5) Columbia Heights police relief association; 
  9.19     (7) (6) Crookston fire department relief association; 
  9.20     (8) (7) Crookston police relief association; 
  9.21     (9) (8) Fairmont police benefit association; 
  9.22     (10) (9) Faribault police benefit association; 
  9.23     (11) (10) Mankato fire department relief association; 
  9.24     (12) (11) Red Wing police relief association; 
  9.25     (13) (12) South St. Paul police relief association; 
  9.26     (14) (13) Virginia fire department relief association; 
  9.27     (15) (14) Virginia police relief association; and 
  9.28     (16) (15) West St. Paul police relief association. 
  9.29     (c) The person who survives a deceased active, deferred, or 
  9.30  retired member, who was legally married to the member at the 
  9.31  time of the death of the deceased member, and who was legally 
  9.32  married to the member at the time of separation from active 
  9.33  service if the deceased member was a deceased deferred or 
  9.34  retired member shall be entitled to receive a surviving spouse 
  9.35  benefit in the case of former members of the following 
  9.36  consolidating relief associations:  
 10.1      (1) Chisholm police relief association; 
 10.2      (2) Hibbing police relief association; 
 10.3      (3) Mankato police benefit association; and 
 10.4      (4) New Ulm police relief association.  
 10.5      (d) The person who survives a deceased active, deferred, or 
 10.6   retired member, who was legally married to the member at the 
 10.7   time of the death of the deceased member, who was either legally 
 10.8   married to the member at the time of separation from active 
 10.9   service or legally married the member after the time of 
 10.10  separation from active service and was married for at least 
 10.11  three years before the date of death of the member if the 
 10.12  deceased member was a deceased deferred or retired member, and 
 10.13  who was residing with the member at the time of the death of the 
 10.14  member is entitled to receive a surviving spouse benefit in the 
 10.15  case of former members of the Austin firefighters relief 
 10.16  association.  
 10.17     (e) The person who survives a deceased active, deferred, or 
 10.18  retired member, who was legally married to the member at the 
 10.19  time of the death of the deceased member, who was legally 
 10.20  married to the member for at least five years before the 
 10.21  separation from active service death if the deceased member was 
 10.22  the recipient of a service pension or was entitled to a deferred 
 10.23  service pension, and who was residing with the member at the 
 10.24  time of the death of the deceased member in the case of former 
 10.25  members of the Minneapolis fire department relief association.  
 10.26     (e) (f) The person who survives a deceased active, 
 10.27  deferred, or retired member, who was legally married to the 
 10.28  member at the time of the death of the deceased member, who was 
 10.29  residing with the member at the time of the death of the 
 10.30  decedent, and, if the deceased member was the recipient of a 
 10.31  service pension or was entitled to a deferred service pension at 
 10.32  the time of death, who was legally married to the member for at 
 10.33  least five years before the member's death, in the case of 
 10.34  former members of the Minneapolis police relief association.  
 10.35     (f) (g) The person who survives a deceased active, 
 10.36  deferred, or retired member, who was legally married to the 
 11.1   member at the time of the death of the deceased member, who was 
 11.2   legally married to the member for at least three years before 
 11.3   the separation from active service if the deceased member was a 
 11.4   deceased, retired, or deferred member and who was residing with 
 11.5   the member at the time of the death of the member shall be 
 11.6   entitled to receive a surviving spouse benefit in the case of 
 11.7   former members of the South St. Paul firefighters relief 
 11.8   association.  
 11.9      (g) (h) The person who survives a deceased active, 
 11.10  deferred, or retired member who was legally married to the 
 11.11  member at the time of the death of the deceased member, who was 
 11.12  legally married to the member for at least one year before the 
 11.13  separation from active service if the deceased member was a 
 11.14  deceased, deferred, or retired member and who had not deserted 
 11.15  the member at the time of the death of the deceased member shall 
 11.16  be entitled to receive a surviving spouse benefit in the case of 
 11.17  former members of the St. Paul police relief association. 
 11.18     Sec. 2.  Minnesota Statutes 1994, section 353B.11, 
 11.19  subdivision 3, is amended to read: 
 11.20     Subd. 3.  [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 
 11.21  surviving spouse benefit shall be 30 percent of the salary base 
 11.22  for the former members of the following consolidating relief 
 11.23  associations:  
 11.24     (1) Albert Lea firefighters relief association; 
 11.25     (2) Albert Lea police relief association; 
 11.26     (3) Anoka police relief association; 
 11.27     (4) Austin firefighters relief association; 
 11.28     (5) Austin police relief association; 
 11.29     (6) (5) Brainerd police benefit association; 
 11.30     (7) (6) Crookston police relief association; 
 11.31     (8) (7) Faribault fire department relief association; and 
 11.32     (9) (8) West St. Paul firefighters relief association.  
 11.33     (b) The surviving spouse benefit shall be 25 percent of the 
 11.34  salary base for the former members of the following 
 11.35  consolidating relief associations:  
 11.36     (1) Chisholm police relief association; 
 12.1      (2) Duluth firefighters relief association; 
 12.2      (3) Duluth police pension association; 
 12.3      (4) Fairmont police benefit association; 
 12.4      (5) Red Wing fire department relief association; 
 12.5      (6) South St. Paul police relief association; and 
 12.6      (7) West St. Paul police relief association. 
 12.7      (c) The surviving spouse benefit shall be 24 percent of the 
 12.8   salary base for the former members of the following 
 12.9   consolidating relief associations: 
 12.10     (1) Fridley police pension association; 
 12.11     (2) Richfield police relief association; 
 12.12     (3) Rochester fire department relief association; 
 12.13     (4) Rochester police relief association; 
 12.14     (5) Winona fire department relief association; and 
 12.15     (6) Winona police relief association. 
 12.16     (d) The surviving spouse benefit shall be 40 percent of the 
 12.17  salary base for the former members of the following 
 12.18  consolidating relief associations: 
 12.19     (1) Columbia Heights fire department relief association, 
 12.20  paid division; 
 12.21     (2) New Ulm police relief association; and 
 12.22     (3) Richfield fire department relief association.  
 12.23     (e) The surviving spouse benefit shall be $250 per month 
 12.24  for the former members of the following consolidating relief 
 12.25  associations: 
 12.26     (1) Hibbing firefighters relief association; and 
 12.27     (2) Hibbing police relief association. 
 12.28     (f) The surviving spouse benefit shall be 23.75 percent of 
 12.29  the salary base for the former members of the following 
 12.30  consolidating relief associations: 
 12.31     (1) Crystal police relief associations; and 
 12.32     (2) Minneapolis police relief association.  
 12.33     (g) The surviving spouse benefit shall be 32 percent of the 
 12.34  salary base for the former members of the following 
 12.35  consolidating relief associations: 
 12.36     (1) St. Cloud fire department relief association; and 
 13.1      (2) St. Cloud police relief association. 
 13.2      (h) The surviving spouse benefit shall be one-half of the 
 13.3   service pension or disability benefit which the deceased member 
 13.4   was receiving as of the date of death, or of the service pension 
 13.5   which the deferred member would have been receiving if the 
 13.6   service pension had commenced as of the date of death or of the 
 13.7   service pension which the active member would have received 
 13.8   based on the greater of the allowable service credit of the 
 13.9   person as of the date of death or 20 years of allowable service 
 13.10  credit if the person would have been eligible as of the date of 
 13.11  death, for the former members of the following consolidating 
 13.12  relief associations: 
 13.13     (1) Virginia fire department relief association; and 
 13.14     (2) Virginia police relief association. 
 13.15     (i) The surviving spouse benefit shall be the following for 
 13.16  the former members of the consolidating relief associations as 
 13.17  indicated: 
 13.18     (1) 30 percent of the salary base, reduced by any amount 
 13.19  awarded or payable from the service pension or disability 
 13.20  benefit of the deceased former firefighter to a former spouse of 
 13.21  the member by virtue of the legal dissolution of the member's 
 13.22  marriage to the former spouse if the surviving spouse married 
 13.23  the member after the time of separation from active service, 
 13.24  Austin firefighters relief association; 
 13.25     (2) 27.333 percent of the salary base, or one-half of the 
 13.26  service pension payable to or accrued by the deceased former 
 13.27  member, whichever is greater, Bloomington police relief 
 13.28  association; 
 13.29     (2) (3) 72.25 percent of the salary base, Buhl police 
 13.30  relief association; 
 13.31     (3) (4) 50 percent of the service pension which the active 
 13.32  member would have received based on allowable service credit to 
 13.33  the date of death and prospective service from the date of death 
 13.34  until the date on which the person would have attained the 
 13.35  normal retirement age, 50 percent of the service pension which 
 13.36  the deferred member would have been receiving if the service 
 14.1   pension had commenced as of the date of death or $175 per month 
 14.2   if the deceased member was receiving a service pension or 
 14.3   disability benefit as of the date of death, Chisholm 
 14.4   firefighters relief association; 
 14.5      (4) (5) two-thirds of the service pension or disability 
 14.6   benefit which the deceased member was receiving as of the date 
 14.7   of death, or of the service pension which the deferred member 
 14.8   would have been receiving if the service pension had commenced 
 14.9   as of the date of death or of the service pension which the 
 14.10  active member would have received based on the greater of the 
 14.11  allowable service credit of the person as of the date of death 
 14.12  or 20 years of allowable service credit if the person would have 
 14.13  been eligible as of the date of death, Columbia Heights police 
 14.14  relief association; 
 14.15     (5) (6) the greater of $300 per month or one-half of the 
 14.16  service pension or disability benefit which the deceased member 
 14.17  was receiving as of the date of death, or of the service pension 
 14.18  which the deferred member would have been receiving if the 
 14.19  service pension had commenced as of the date of death or of the 
 14.20  service pension which the active member would have received 
 14.21  based on the allowable service credit of the person as of the 
 14.22  date of death if the person would have been eligible as of the 
 14.23  date of death, Crookston fire department relief association; 
 14.24     (6) (7) $100 per month, Faribault police benefit 
 14.25  association; 
 14.26     (7) (8) 60 percent of the service pension or disability 
 14.27  benefit which the deceased member was receiving as of the date 
 14.28  of death, or of the service pension which the deferred member 
 14.29  would have been receiving if the service pension had commenced 
 14.30  as of the date of death or of the service pension which the 
 14.31  active member would have received based on the allowable service 
 14.32  credit of the person as of the date of death if the person would 
 14.33  have been eligible as of the date of death, Mankato fire 
 14.34  department relief association; 
 14.35     (8) (9) $175 per month, Mankato police benefit association; 
 14.36     (9) (10) 26.25 percent of the salary base, Minneapolis fire 
 15.1   department relief association; 
 15.2      (10) (11) equal to the service pension or disability 
 15.3   benefit which the deceased member was receiving as of the date 
 15.4   of death, or of the service pension which the deferred member 
 15.5   would have been receiving if the service pension had commenced 
 15.6   as of the date of death or of the service pension which the 
 15.7   active member would have received based on the allowable service 
 15.8   credit of the person as of the date of death if the person would 
 15.9   have been eligible as of the date of death, Red Wing police 
 15.10  relief association; 
 15.11     (11) (12) 40 percent of the salary base for a surviving 
 15.12  spouse of a deceased active member, disabled member, or retired 
 15.13  or deferred member with at least 20 years of allowable service, 
 15.14  or the prorated portion of 40 percent of the salary base that 
 15.15  bears the same relationship to 40 percent that the deceased 
 15.16  member's years of allowable service bear to 20 years of 
 15.17  allowable service for the surviving spouse of a deceased retired 
 15.18  or deferred member with at least ten but less than 20 years of 
 15.19  allowable service, St. Louis Park fire department relief 
 15.20  association; 
 15.21     (12) (13) 26.6667 percent of the salary base, St. Louis 
 15.22  Park police relief association; 
 15.23     (13) (14) 27.5 percent of the salary base, St. Paul fire 
 15.24  department relief association; 
 15.25     (14) (15) 20 percent of the salary base, St. Paul police 
 15.26  relief association; and 
 15.27     (15) (16) 27 percent of the salary base, South St. Paul 
 15.28  firefighters relief association. 
 15.29     Sec. 3.  Minnesota Statutes 1994, section 353B.13, is 
 15.30  amended to read: 
 15.31     353B.13 [OTHER BENEFIT COVERAGE.] 
 15.32     (a) A person who is a former member of the Austin 
 15.33  firefighters relief association who receives a service pension 
 15.34  or a disability pension from the relief association and who is 
 15.35  under age 65 or who is not yet eligible for the receipt of 
 15.36  federal Medicare benefits, whichever occurs first, and the 
 16.1   person's spouse, if the spouse would be eligible for a surviving 
 16.2   spouse benefit upon the death of the pension recipient, is 
 16.3   entitled to receive a health or medical insurance premium 
 16.4   benefit in an amount equal to the amount that the city of Austin 
 16.5   would pay under the applicable collective bargaining agreement 
 16.6   for medical or health insurance coverage for a firefighter who 
 16.7   is employed by the city, who has a spouse and who has no other 
 16.8   dependents, payable monthly, in addition to any other pension 
 16.9   amount received by the eligible pension recipient, and not 
 16.10  subject to any postretirement adjustments applicable to service 
 16.11  pensions or disability pensions. 
 16.12     (b) A person who is a former member of the New Ulm police 
 16.13  relief association, who retired from the New Ulm police 
 16.14  department after October 15, 1985, and who is receiving a 
 16.15  service pension after the effective date of consolidation as 
 16.16  provided in section 353A.06, shall be entitled to receive a 
 16.17  supplemental benefit of $80 per month for each month following 
 16.18  the date of retirement until the last day of the month in which 
 16.19  the person attains the age of 65 years. 
 16.20     (b) (c) The payment of the premiums for medical and dental 
 16.21  insurance coverage and the payment of a lump sum amount at 
 16.22  retirement for former members of the St. Cloud fire department 
 16.23  relief association and the payment of the premiums for medical 
 16.24  insurance coverage and the payment of a lump sum amount at 
 16.25  retirement for former members of the St. Cloud police relief 
 16.26  association as provided for in the governing benefit plan 
 16.27  documents shall be considered to be special benefit coverage 
 16.28  governed by section 353A.08, subdivision 6.  
 16.29     (c) (d) A person who is a former member of the St. Paul 
 16.30  fire department relief association who is unable to perform 
 16.31  normally assigned fire department service due to a medically 
 16.32  determinable physical or mental illness or injury and who is 
 16.33  removed from the fire department payroll, upon application, 
 16.34  until recovery, or for a period of 90 days or for a period of 
 16.35  150 days upon a showing of need and a medical report indicating 
 16.36  a reasonable prognosis for recovery due to the extended period, 
 17.1   whichever occurs first, shall be entitled to a sick relief 
 17.2   benefit for each day of that inability, payable monthly, in an 
 17.3   amount of 1.5625 percent of the salary base per day.  
 17.4      Sec. 4.  [EFFECTIVE DATE.] 
 17.5      Subdivision 1.  [AUSTIN FIRE.] Sections 1 and 2 with 
 17.6   respect to the Austin fire department relief association and 
 17.7   section 3 are effective on the effective date of article 2, 
 17.8   section 2. 
 17.9      Subd. 2.  [MINNEAPOLIS FIRE.] Section 1 with respect to the 
 17.10  Minneapolis fire department relief association is effective on 
 17.11  the effective date of article 3, section 1. 
 17.12                             ARTICLE 5
 17.13                       NORWOOD-YOUNG AMERICA
 17.14       CONSOLIDATED VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
 17.15     Section 1.  [CONSOLIDATED NORWOOD-YOUNG AMERICA VOLUNTEER 
 17.16  FIREFIGHTERS RELIEF ASSOCIATION.] 
 17.17     Subdivision 1.  [COMBINATION.] The cities of Norwood and 
 17.18  Young America in Carver county have conducted the necessary 
 17.19  proceedings to combine as one municipality to be known as 
 17.20  Norwood-Young America effective January 1, 1997, pursuant to 
 17.21  Minnesota Statutes, sections 465.81 to 465.87. 
 17.22     Subd. 2.  [CREATION.] The Norwood volunteer firefighters 
 17.23  relief association and the Young America volunteer firefighters 
 17.24  relief association are consolidated into a single volunteer 
 17.25  firefighters relief association in the manner provided by this 
 17.26  chapter.  The consolidated volunteer firefighters relief 
 17.27  association is to be governed by this chapter and the applicable 
 17.28  provisions of Minnesota Statutes, chapters 69, 317A, 356, 356A, 
 17.29  and 424A. 
 17.30     Subd. 3.  [CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF 
 17.31  ASSOCIATION.] The consolidated volunteer firefighters relief 
 17.32  association must be incorporated under Minnesota Statutes, 
 17.33  chapter 317A.  The incorporators of the consolidated relief 
 17.34  association must include at least one board member of the former 
 17.35  Norwood volunteer firefighters relief association and at least 
 17.36  one board member of the former Young America volunteer 
 18.1   firefighters relief association.  The consolidated relief 
 18.2   association must be incorporated no later than February 1, 1997. 
 18.3      Sec. 2.  [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS 
 18.4   RELIEF ASSOCIATION.] 
 18.5      Subdivision 1.  [BOARD OF TRUSTEES.] The consolidated 
 18.6   volunteer firefighters relief association is governed by a board 
 18.7   of trustees as provided in Minnesota Statutes, section 424A.04, 
 18.8   subdivision 1. 
 18.9      Subd. 2.  [COMPOSITION OF BOARD.] The board must have three 
 18.10  officers, including a president, a secretary, and a treasurer.  
 18.11  The membership of the consolidated volunteer firefighters relief 
 18.12  association must elect the three officers from the board 
 18.13  members.  A board of trustees member may not hold more than one 
 18.14  officer position at the same time. 
 18.15     Subd. 3.  [BOARD ADMINISTRATION.] The board of trustees 
 18.16  must administer the affairs of the relief association consistent 
 18.17  with this chapter and the applicable provisions of Minnesota 
 18.18  Statutes, chapters 69, 356A, and 424A. 
 18.19     Sec. 3.  [SPECIAL AND GENERAL FUNDS.] 
 18.20     The consolidated volunteer firefighters relief association 
 18.21  must establish and maintain a special fund and a general fund.  
 18.22  The special fund must be established and maintained as provided 
 18.23  in Minnesota Statutes, section 424A.05.  The general fund must 
 18.24  be established and maintained as provided in Minnesota Statutes, 
 18.25  section 424A.06. 
 18.26     Sec. 4.  [EFFECTIVE DATE OF CONSOLIDATION; TRANSFERS.] 
 18.27     The first business day occurring 30 days after the 
 18.28  incorporation of the consolidated volunteer firefighters relief 
 18.29  association under section 1 is the effective date of 
 18.30  consolidation.  On the effective date of consolidation, the 
 18.31  administration, records, assets, and liabilities of the prior 
 18.32  Norwood volunteer firefighters relief association and the prior 
 18.33  Young America volunteer firefighters relief association are 
 18.34  transferred to the consolidated volunteer firefighters relief 
 18.35  association.  On the effective date of consolidation, the 
 18.36  Norwood volunteer firefighters relief association and the Young 
 19.1   America volunteer firefighters relief association cease to exist 
 19.2   as legal entities, except for the purposes of winding up 
 19.3   association affairs as provided by this chapter. 
 19.4      Sec. 5.  [TRANSFER OF ADMINISTRATION.] 
 19.5      On the effective date of consolidation, the administration 
 19.6   of the prior relief associations is transferred to the board of 
 19.7   trustees of the consolidated volunteer firefighters relief 
 19.8   association. 
 19.9      Sec. 6.  [TRANSFER OF RECORDS.] 
 19.10     On the effective date of consolidation, the secretary and 
 19.11  the treasurer of the Norwood volunteer firefighters relief 
 19.12  association and the secretary and treasurer of the Young America 
 19.13  volunteer firefighters relief association shall transfer all 
 19.14  records and documents relating to the prior relief associations 
 19.15  to the secretary and treasurer of the consolidated volunteer 
 19.16  firefighters relief association. 
 19.17     Sec. 7.  [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.] 
 19.18     (a) On the effective date of consolidation, the secretary 
 19.19  and the treasurer of the Norwood volunteer firefighters relief 
 19.20  association and the secretary and treasurer of the Young America 
 19.21  volunteer firefighters relief association shall transfer the 
 19.22  assets of the special fund of the applicable relief association 
 19.23  to the special fund of the consolidated relief association.  
 19.24  Unless the appropriate secretary and treasurer decide otherwise, 
 19.25  the assets may be transferred as investment securities rather 
 19.26  than cash.  The transfer must include any accounts receivable.  
 19.27  The appropriate secretary must settle any accounts payable from 
 19.28  the special fund of the relief association before the effective 
 19.29  date of consolidation. 
 19.30     (b) Upon the transfer of the assets of the special fund of 
 19.31  a prior relief association, the pension liabilities of that 
 19.32  special fund become the obligation of the special fund of the 
 19.33  consolidated volunteer firefighters relief association. 
 19.34     (c) Upon the transfer of the prior relief association 
 19.35  special fund assets, the board of trustees of the consolidated 
 19.36  volunteer firefighters relief association has legal title to and 
 20.1   management responsibility for the transferred assets as trustees 
 20.2   for persons having a beneficial interest in those assets arising 
 20.3   out of the benefit coverage provided by the prior relief 
 20.4   association. 
 20.5      (d) The consolidated volunteer firefighters relief 
 20.6   association is the successor in interest in all claims for and 
 20.7   against the special funds of the prior Norwood volunteer 
 20.8   firefighters relief association and the prior Young America 
 20.9   volunteer firefighters relief association, or the cities of 
 20.10  Norwood and Young America, with respect to the special funds of 
 20.11  the prior relief associations.  The status of successor in 
 20.12  interest does not apply to any claim against a prior relief 
 20.13  association, the city in which that relief association is 
 20.14  located, or any person connected with the prior relief 
 20.15  association or the city, based on any act or acts that were not 
 20.16  done in good faith and that constituted a breach of fiduciary 
 20.17  responsibility under common law or Minnesota Statutes, chapter 
 20.18  356A. 
 20.19     Sec. 8.  [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.] 
 20.20     Prior to the effective date of consolidation, the secretary 
 20.21  of the Norwood volunteer firefighters relief association and the 
 20.22  secretary of the Young America volunteer firefighters relief 
 20.23  association shall settle any accounts payable from the 
 20.24  respective general fund or any other relief association fund in 
 20.25  addition to the relief association special fund.  Investments 
 20.26  held by a fund of the prior relief associations in addition to 
 20.27  the special fund must be liquidated before the effective date of 
 20.28  consolidation as the bylaws of the relief association provide.  
 20.29  Prior to the effective date of consolidation, the respective 
 20.30  relief associations must pay all applicable general fund 
 20.31  expenses from their respective general funds.  Any balance 
 20.32  remaining in the general fund or in a fund other than the relief 
 20.33  association special fund as of the effective date of 
 20.34  consolidation must be paid to the new general fund of the 
 20.35  consolidated volunteer relief association. 
 20.36     Sec. 9.  [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.] 
 21.1      Following the transfer of administration, records, special 
 21.2   fund assets, and special fund liabilities from the prior relief 
 21.3   associations to the consolidated volunteer firefighters relief 
 21.4   association, the Norwood volunteer firefighters relief 
 21.5   association and the Young America volunteer firefighters relief 
 21.6   association cease to exist as legal entities for any purpose.  
 21.7   The city clerk of the city of Norwood-Young America shall notify 
 21.8   the following governmental officials of the termination of the 
 21.9   respective volunteer firefighters relief associations and of the 
 21.10  establishment of the consolidated volunteer firefighters relief 
 21.11  association: 
 21.12     (1) Minnesota secretary of state; 
 21.13     (2) Minnesota state auditor; 
 21.14     (3) Minnesota commissioner of revenue; and 
 21.15     (4) commissioner of the federal Internal Revenue Service. 
 21.16     Sec. 10.  [ADMINISTRATIVE EXPENSES.] 
 21.17     The payment of authorized administrative expenses of the 
 21.18  consolidated volunteer firefighters relief association must be 
 21.19  from the special fund of the consolidated volunteer firefighters 
 21.20  relief association in accordance with Minnesota Statutes, 
 21.21  section 69.80, and as provided for in the bylaws of the 
 21.22  consolidated volunteer firefighters relief association and 
 21.23  approved by the board of trustees or the consolidated volunteer 
 21.24  firefighters relief association.  The payment of any other 
 21.25  expenses of the consolidated volunteer firefighters relief 
 21.26  association must be from the general fund of the consolidated 
 21.27  volunteer firefighters relief association in accordance with 
 21.28  Minnesota Statutes, section 69.80, and as provided for in the 
 21.29  bylaws of the consolidated volunteer firefighters relief 
 21.30  association and approved by the board of trustees of the 
 21.31  consolidated volunteer firefighters relief association. 
 21.32     Sec. 11.  [VALIDATION OF CURRENT BENEFIT PLANS AND PRIOR 
 21.33  ACTIONS.] 
 21.34     Notwithstanding any other law, the benefit plans of the 
 21.35  Norwood volunteer firefighters relief association and the Young 
 21.36  America volunteer firefighters relief association, as reflected 
 22.1   in each association's articles of incorporation and bylaws as of 
 22.2   December 31, 1995, are ratified and validated.  Acts previously 
 22.3   taken by the Norwood volunteer firefighters relief association 
 22.4   and the Young America volunteer firefighters relief association 
 22.5   in association with those ratified by articles of incorporation 
 22.6   are also ratified and validated. 
 22.7      Sec. 12.  [BENEFITS; FUNDING.] 
 22.8      After the effective date of consolidation, the service 
 22.9   pension for a member of the consolidated firefighters relief 
 22.10  association is $550 for each year of past service credited by 
 22.11  either the Norwood volunteer firefighters relief association or 
 22.12  the Young America volunteer firefighters relief association.  
 22.13  Future service credited by the consolidated firefighters relief 
 22.14  association is payable in a lump sum and is to be so provided in 
 22.15  the bylaws of the consolidated volunteer firefighters relief 
 22.16  association.  The service pension may be subsequently changed by 
 22.17  appropriate amendment to the bylaws approved by the board of 
 22.18  trustees and the city council of the city of Norwood-Young 
 22.19  America under Minnesota Statutes, sections 69.772, subdivision 
 22.20  6, and 424A.02, subdivisions 1 and 2.  In its budget and tax 
 22.21  levy for the year 1997, the city of Norwood-Young America must 
 22.22  provide that funds will be transferred to the special fund of 
 22.23  the consolidated volunteer firefighters relief association to 
 22.24  fully fund the actuarial accrued liability of the special fund 
 22.25  as determined under Minnesota Statutes, section 69.772, 
 22.26  subdivisions 2 and 2a.  Subsequent budgets and tax levies must 
 22.27  comply with Minnesota Statutes, section 69.772, subdivisions 3 
 22.28  and 4. 
 22.29     Sec. 13.  [EFFECTIVE DATE.] 
 22.30     Sections 1 to 12 are effective the day following approval 
 22.31  by the city council of the city of Norwood and approval by the 
 22.32  city council of the city of Young America and compliance with 
 22.33  Minnesota Statutes, section 645.021. 
 22.34                             ARTICLE 6 
 22.35                NONPROFIT FIREFIGHTING CORPORATIONS 
 22.36     Section 1.  Minnesota Statutes 1994, section 466.01, 
 23.1   subdivision 1, is amended to read: 
 23.2      Subdivision 1.  [MUNICIPALITY.] For the purposes of 
 23.3   sections 466.01 to 466.15, "municipality" means any city, 
 23.4   whether organized under home rule charter or otherwise, any 
 23.5   county, town, public authority, public corporation, nonprofit 
 23.6   firefighting corporation that has associated with it a relief 
 23.7   association as defined in section 424A.001, subdivision 4, 
 23.8   special district, school district, however organized, county 
 23.9   agricultural society organized pursuant to chapter 38, joint 
 23.10  powers board or organization created under section 471.59 or 
 23.11  other statute, public library, regional public library system, 
 23.12  multicounty multitype library system, family services 
 23.13  collaborative established under section 121.8355, other 
 23.14  political subdivision, or community action agency. 
 23.15     Sec. 2.  Minnesota Statutes 1994, section 466.01, 
 23.16  subdivision 6, is amended to read: 
 23.17     Subd. 6.  [EMPLOYEE, OFFICER, OR AGENT.] For the purposes 
 23.18  of sections 466.01 to 466.15, "employee," "officer," or "agent" 
 23.19  means a present or former employee, officer, or agent of a 
 23.20  municipality, or other person acting on behalf of the 
 23.21  municipality in an official capacity, temporarily or 
 23.22  permanently, with or without compensation, but does not include 
 23.23  an independent contractor other than a nonprofit firefighting 
 23.24  corporation that has associated with it a relief association as 
 23.25  defined in section 424A.001, subdivision 4.  "Employee" includes 
 23.26  court administrators and their staff under chapter 485, district 
 23.27  administration staff in the second and fourth judicial 
 23.28  districts, guardians ad litem, and other employees within the 
 23.29  court system whose salaries are paid by the county, other than 
 23.30  employees who remain on the county payroll under section 
 23.31  480.181, subdivision 2.