1.1                          A bill for an act 
  1.2             relating to retirement; Fairmont police relief 
  1.3             association; increasing surviving spouse retirement 
  1.4             benefits; providing for an additional annual 
  1.5             postretirement adjustment mechanism; amending Laws 
  1.6             1963, chapter 423, section 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1963, chapter 423, section 1, is amended 
  1.9   to read: 
  1.10     Section 1.  [Fairmont, city of; police relief association 
  1.11  benefits.] The board of directors of the policemen's police 
  1.12  relief association of the city of Fairmont shall set the amount 
  1.13  of monthly pension benefits payable to eligible recipients, who 
  1.14  become eligible for pension after passage of this act, subject 
  1.15  to the following limitations: 
  1.16     (a) No policeman retiring police officer who first becomes 
  1.17  eligible for a pension after May 20, 1963, shall be paid less 
  1.18  than one half of the current maximum monthly pay of a patrolman 
  1.19  patrol officer; 
  1.20     (b) No policeman's widow The surviving spouse of a deceased 
  1.21  member of the relief association who is eligible for pension 
  1.22  benefits shall be paid less than one fourth is entitled to 
  1.23  receive a benefit equal to 35 percent of the current maximum 
  1.24  monthly pay of a patrolman patrol officer; 
  1.25     (c) Each policeman's surviving child of a deceased member 
  1.26  of the relief association who is eligible for pension benefits 
  2.1   shall be paid 1/16 is entitled to receive a benefit equal to 
  2.2   6.25 percent of the current maximum monthly pay of a patrolman 
  2.3   patrol officer; 
  2.4      (d) The total maximum pension benefits payable to an 
  2.5   eligible widow surviving spouse and eligible surviving children 
  2.6   of a policeman deceased relief association member is one half of 
  2.7   the current maximum monthly pay of a patrolman patrol officer. 
  2.8      The provisions of this section supersede any conflicting 
  2.9   provisions of Minnesota Statutes, Section 423.41 to 423.62. 
  2.10     Sec. 2.  [FAIRMONT POLICE RELIEF ASSOCIATION; ADDITIONAL 
  2.11  POSTRETIREMENT ADJUSTMENT.] 
  2.12     (a) Every recipient of a pension or benefit from the 
  2.13  Fairmont police relief association on June 30, annually, is 
  2.14  entitled to receive a postretirement adjustment as provided in 
  2.15  this section in addition to any pension or benefit increase by 
  2.16  virtue of an increase in the salary of active patrol officers in 
  2.17  the city of Fairmont on the following July 1. 
  2.18     (b) If the value of current assets of the relief 
  2.19  association is equal to at least 98 percent of the actuarial 
  2.20  accrued liability of the Fairmont police relief association as 
  2.21  calculated under Minnesota Statutes, sections 356.215 and 
  2.22  356.216, one percent of the value of current assets of the 
  2.23  relief association is available for the payment of the 
  2.24  postretirement adjustment. 
  2.25     (c) If the value of current assets of the relief 
  2.26  association is equal to at least 102 percent of the actuarial 
  2.27  accrued liability of the Fairmont police relief association as 
  2.28  calculated under Minnesota Statutes, sections 356.215 and 
  2.29  356.216, two percent of the value of current assets of the 
  2.30  relief association is available for the payment of the 
  2.31  postretirement adjustment.  
  2.32     (d) The amount of the postretirement adjustment must be 
  2.33  calculated by the board of trustees of the relief association.  
  2.34  The postretirement adjustment amount is payable monthly.  The 
  2.35  total annual amount of all service pensions, disability 
  2.36  pensions, and survivor benefits, without inclusion of any 
  3.1   postretirement adjustment paid previously under this section, 
  3.2   must be calculated and the percentage amount of each recipient's 
  3.3   annual pension or benefit of the total amount, expressed as four 
  3.4   digits beyond the decimal point, must be determined.  The 
  3.5   monthly postretirement adjustment payable to each pension or 
  3.6   benefit recipient is 1/12 of the dollar amount determined by 
  3.7   applying each recipient's determined percentage of the total 
  3.8   amount of pensions and benefits to the total dollar amount 
  3.9   available for payment as a postretirement adjustment. 
  3.10     (e) The postretirement adjustment amount paid in any year 
  3.11  under this section does not compound and must not be added to 
  3.12  the pension or benefit base for the calculation of a subsequent 
  3.13  postretirement adjustment.  If a pension or benefit recipient 
  3.14  dies before the 12 monthly postretirement adjustments under this 
  3.15  section have been paid, the remaining monthly postretirement 
  3.16  adjustment payments cancel and nothing in this section 
  3.17  authorizes the payment of the postretirement adjustment to an 
  3.18  estate or to a person who did not qualify for a postretirement 
  3.19  adjustment in the person's own right. 
  3.20     Sec. 3.  [FAIRMONT POLICE RELIEF ASSOCIATION; RETROACTIVITY 
  3.21  OF SURVIVING SPOUSE BENEFIT INCREASE.] 
  3.22     The increased surviving spouse benefit amount under section 
  3.23  1, clause (b), is payable to all surviving spouses receiving 
  3.24  benefits as of the date of the approval of this act. 
  3.25     Sec. 4.  [FAIRMONT POLICE RELIEF ASSOCIATION; BYLAW 
  3.26  AMENDMENTS REQUIRED.] 
  3.27     Sections 1 to 3 must be implemented by the appropriate 
  3.28  amendments to the bylaws of the Fairmont police relief 
  3.29  association. 
  3.30     Sec. 5.  [EFFECTIVE DATE.] 
  3.31     This act is effective on the day following approval by the 
  3.32  Fairmont city council and compliance with Minnesota Statutes, 
  3.33  section 645.021.