1.1                          A bill for an act
  1.2             relating to retirement; various pension plans; 
  1.3             providing special benefit coverage for privatized 
  1.4             employees of the Luverne public hospital and the 
  1.5             Waconia Ridgeview medical center; providing an ad hoc 
  1.6             postretirement adjustment to Eveleth police and fire 
  1.7             trust fund benefit recipients; establishing an 
  1.8             additional postretirement adjustment for the Fairmont 
  1.9             police relief association; extending survivor benefit 
  1.10            provisions to include certain Fairmont police relief 
  1.11            association survivors; providing a special ad hoc 
  1.12            postretirement adjustment to certain retired St. Cloud 
  1.13            police officers; authorizing the establishment of 
  1.14            volunteer rescue squad relief associations by 
  1.15            Kandiyohi county and the city of Litchfield; amending 
  1.16            Minnesota Statutes 1998, section 356A.01, subdivisions 
  1.17            7 and 8; Laws 1977, chapter 61, section 6, as amended; 
  1.18            proposing coding for new law as Minnesota Statutes, 
  1.19            chapter 425B; repealing Laws 1998, chapter 390, 
  1.20            article 1, section 1. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22                             ARTICLE 1
  1.23               LUVERNE PUBLIC HOSPITAL PRIVATIZATION
  1.24     Section 1.  [LUVERNE COMMUNITY HOSPITAL EMPLOYEE 
  1.25  PRIVATIZATION PENSION BENEFIT ACCOMMODATION; PURPOSE.] 
  1.26     The purpose of this act is to assure, to the extent 
  1.27  possible, that persons employed at the Luverne community 
  1.28  hospital will be entitled to receive future retirement benefits 
  1.29  under the general employees retirement plan of the public 
  1.30  employees retirement association that are commensurate with the 
  1.31  prior contributions made by them or on their behalf upon the 
  1.32  privatization of the Luverne community hospital. 
  1.33     Sec. 2.  [DEFINITIONS.] 
  2.1      Subdivision 1.  [GENERALLY.] As used in this act, unless 
  2.2   the context clearly indicates otherwise, each of the terms in 
  2.3   the following subdivisions has the meaning indicated. 
  2.4      Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  2.5   meaning provided in Minnesota Statutes 1998, section 353.01, 
  2.6   subdivision 16. 
  2.7      Subd. 3.  [EFFECTIVE DATE.] "Effective date" means the date 
  2.8   that the operation of the Luverne community hospital is assumed 
  2.9   by another employer or the date that the Luverne community 
  2.10  hospital is purchased by another employer and, in either event, 
  2.11  active membership in the public employees retirement association 
  2.12  consequently terminates. 
  2.13     Subd. 4.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  2.14  hospital employee" means a person who: 
  2.15     (1) was employed on the day before the effective date by 
  2.16  the Luverne community hospital; 
  2.17     (2) terminated employment with the Luverne community 
  2.18  hospital on the day before the effective date; and 
  2.19     (3) was a participant in the general employees retirement 
  2.20  plan of the public employees retirement association at the time 
  2.21  of termination of employment with the Luverne community hospital.
  2.22     Subd. 5.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  2.23  service" means the total number of years of allowable service to 
  2.24  the credit of a terminated hospital employee under Minnesota 
  2.25  Statutes 1998, section 353.01, subdivision 18. 
  2.26     Sec. 3.  [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  2.27     Notwithstanding any provision of Minnesota Statutes, 
  2.28  chapter 353, to the contrary, a terminated hospital employee is 
  2.29  eligible to receive a retirement annuity under Minnesota 
  2.30  Statutes 1998, section 353.29, without regard to the requirement 
  2.31  of three years of allowable service credit. 
  2.32     Sec. 4.  [AUGMENTATION INTEREST RATE FOR TERMINATED 
  2.33  HOSPITAL EMPLOYEES.] 
  2.34     The deferred annuity of a terminated hospital employee is 
  2.35  subject to augmentation in accordance with Minnesota Statutes 
  2.36  1998, section 353.71, subdivision 2, except that the rate of 
  3.1   interest for this purpose is 5.5 percent compounded annually 
  3.2   until January 1 following the year in which such person attains 
  3.3   age 55.  From that date to the effective date of retirement, the 
  3.4   rate is 7.5 percent.  These increased augmentation rates are no 
  3.5   longer applicable for any time after the terminated hospital 
  3.6   employee becomes covered again by a retirement fund enumerated 
  3.7   in Minnesota Statutes, section 356.30, subdivision 3.  These 
  3.8   increased deferred annuity augmentation rates do not apply to a 
  3.9   terminated transferred hospital employee who begins receipt of a 
  3.10  retirement annuity while employed by the employer which assumed 
  3.11  operations of the Luverne community hospital or purchased the 
  3.12  Luverne community hospital. 
  3.13     Sec. 5.  [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE 
  3.14  FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.15     For the purpose of determining eligibility for early 
  3.16  retirement benefits provided under Minnesota Statutes 1998, 
  3.17  section 353.30, subdivision 1a, only and notwithstanding any 
  3.18  provision of Minnesota Statutes, chapter 353, to the contrary, 
  3.19  the years of allowable service for a terminated hospital 
  3.20  employee who transfers employment on the effective date and does 
  3.21  not apply for a refund of contributions under Minnesota Statutes 
  3.22  1998, section 353.34, subdivision 1, or any similar provision in 
  3.23  future Minnesota Statutes, includes service with the successor 
  3.24  employer to the Luverne community hospital following the 
  3.25  effective date.  The successor employer shall provide any 
  3.26  reports that the executive director of the public employees 
  3.27  retirement association may reasonably request to permit the 
  3.28  calculation of retirement benefits.  
  3.29     To be eligible for early retirement benefits under this 
  3.30  section, the individual must separate from service with the 
  3.31  successor employer to the Luverne community hospital.  The 
  3.32  terminated eligible individual, or an individual authorized to 
  3.33  act on behalf of that individual, may apply for an annuity 
  3.34  following the application procedures under Minnesota Statutes, 
  3.35  section 353.29, subdivision 4. 
  3.36     Sec. 6.  [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
  4.1   LIMITATIONS.] 
  4.2      The reemployed annuitant earnings limitations of Minnesota 
  4.3   Statutes, section 353.37, apply to any service by a terminated 
  4.4   hospital employee as an employee of the successor employer to 
  4.5   the Luverne community hospital. 
  4.6      Sec. 7.  [EFFECT ON REFUND.] 
  4.7      Notwithstanding any provision of Minnesota Statutes, 
  4.8   chapter 353, to the contrary, terminated hospital employees may 
  4.9   receive a refund of employee accumulated contributions plus 
  4.10  interest at the rate of six percent per year compounded annually 
  4.11  in accordance with Minnesota Statutes 1998, section 353.34, 
  4.12  subdivision 2, at any time after the transfer of employment to 
  4.13  the successor employer to the Luverne community hospital.  If a 
  4.14  terminated hospital employee has received a refund from a 
  4.15  pension plan enumerated in Minnesota Statutes, section 356.30, 
  4.16  subdivision 3, the person may not repay that refund unless the 
  4.17  person again becomes a member of one of those enumerated plans 
  4.18  and complies with Minnesota Statutes, section 356.30, 
  4.19  subdivision 2. 
  4.20     Sec. 8.  [COUNSELING SERVICES.] 
  4.21     The administrator of the Luverne community hospital and the 
  4.22  executive director of the public employees retirement 
  4.23  association shall provide terminated hospital employees with 
  4.24  counseling on their benefits available under the general 
  4.25  employee retirement plan of the public employee retirement 
  4.26  association. 
  4.27     Sec. 9.  [REPEALER.] 
  4.28     Laws 1998, chapter 390, article 1, section 1, is repealed. 
  4.29     Sec. 10.  [EFFECTIVE DATE.] 
  4.30     Sections 1 to 9 are effective on the day following final 
  4.31  enactment. 
  4.32                             ARTICLE 2 
  4.33                  WACONIA RIDGEVIEW MEDICAL CENTER 
  4.34                           PRIVATIZATION
  4.35     Section 1.  [RIDGEVIEW MEDICAL CENTER EMPLOYEE 
  4.36  PRIVATIZATION PENSION BENEFIT ACCOMMODATION; PURPOSE.] 
  5.1      The purpose of this act is to ensure, to the extent 
  5.2   possible, that persons employed at the Ridgeview medical center, 
  5.3   Waconia, will be entitled to receive future retirement benefits 
  5.4   under the general employees retirement plan of the public 
  5.5   employees retirement association that are commensurate with the 
  5.6   prior contributions made by them or on their behalf upon the 
  5.7   privatization of the Ridgeview medical center. 
  5.8      Sec. 2.  [DEFINITIONS.] 
  5.9      Subdivision 1.  [GENERALLY.] As used in this act, unless 
  5.10  the context clearly indicates otherwise, each of the terms in 
  5.11  the following subdivisions has the meaning indicated. 
  5.12     Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  5.13  meaning provided in Minnesota Statutes 1998, section 353.01, 
  5.14  subdivision 16. 
  5.15     Subd. 3.  [EFFECTIVE DATE.] "Effective date" means the date 
  5.16  that the operation of the Ridgeview medical center is assumed by 
  5.17  another employer or the date that the Ridgeview medical center 
  5.18  is purchased by another employer and, in either event, active 
  5.19  membership in the public employees retirement association 
  5.20  consequently terminates. 
  5.21     Subd. 4.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  5.22  hospital employee" means a person who: 
  5.23     (1) was employed on the day before the effective date by 
  5.24  the Ridgeview medical center; 
  5.25     (2) terminated employment with the Ridgeview medical center 
  5.26  on the day before the effective date; and 
  5.27     (3) was a participant in the general employees retirement 
  5.28  plan of the public employees retirement association at the time 
  5.29  of termination of employment with the Ridgeview medical center. 
  5.30     Subd. 5.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  5.31  service" means the total number of years of allowable service to 
  5.32  the credit of a terminated hospital employee under Minnesota 
  5.33  Statutes 1998, section 353.01, subdivision 18. 
  5.34     Sec. 3.  [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  5.35     Notwithstanding any provision of Minnesota Statutes, 
  5.36  chapter 353, to the contrary, a terminated hospital employee is 
  6.1   eligible to receive a retirement annuity under Minnesota 
  6.2   Statutes 1998, section 353.29, without regard to the requirement 
  6.3   of three years of allowable service credit. 
  6.4      Sec. 4.  [AUGMENTATION INTEREST RATE FOR TERMINATED 
  6.5   HOSPITAL EMPLOYEES.] 
  6.6      The deferred annuity of a terminated hospital employee is 
  6.7   subject to augmentation in accordance with Minnesota Statutes 
  6.8   1998, section 353.71, subdivision 2, except that the rate of 
  6.9   interest for this purpose is 5.5 percent compounded annually 
  6.10  until January 1 following the year in which such person attains 
  6.11  age 55.  From that date to the effective date of retirement, the 
  6.12  rate is 7.5 percent.  These increased augmentation rates are no 
  6.13  longer applicable for any time after the terminated hospital 
  6.14  employee becomes covered again by a retirement fund enumerated 
  6.15  in Minnesota Statutes, section 356.30, subdivision 3.  These 
  6.16  increased deferred annuity augmentation rates do not apply to a 
  6.17  terminated transferred hospital employee who begins receipt of a 
  6.18  retirement annuity while employed by the employer which assumed 
  6.19  operations of the Ridgeview medical center or purchased the 
  6.20  Ridgeview medical center. 
  6.21     Sec. 5.  [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE 
  6.22  FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  6.23     For the purpose of determining eligibility for early 
  6.24  retirement benefits provided under Minnesota Statutes 1998, 
  6.25  section 353.30, subdivision 1a, only and notwithstanding any 
  6.26  provision of Minnesota Statutes, chapter 353, to the contrary, 
  6.27  the years of allowable service for a terminated hospital 
  6.28  employee who transfers employment on the effective date and does 
  6.29  not apply for a refund of contributions under Minnesota Statutes 
  6.30  1998, section 353.34, subdivision 1, or any similar provision in 
  6.31  future Minnesota Statutes, includes service with the successor 
  6.32  employer to the Ridgeview medical center following the effective 
  6.33  date.  The successor employer shall provide any reports that the 
  6.34  executive director of the public employees retirement 
  6.35  association may reasonably request to permit the calculation of 
  6.36  retirement benefits.  
  7.1      To be eligible for early retirement benefits under this 
  7.2   section, the individual must separate from service with the 
  7.3   successor employer to the Ridgeview medical center.  The 
  7.4   terminated eligible individual, or an individual authorized to 
  7.5   act on behalf of that individual, may apply for an annuity 
  7.6   following the application procedures under Minnesota Statutes, 
  7.7   section 353.29, subdivision 4. 
  7.8      Sec. 6.  [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS 
  7.9   LIMITATIONS.] 
  7.10     The reemployed annuitant earnings limitations of Minnesota 
  7.11  Statutes, section 353.37, apply to any service by a terminated 
  7.12  hospital employee as an employee of the successor employer to 
  7.13  the Ridgeview medical center. 
  7.14     Sec. 7.  [EFFECT ON REFUND.] 
  7.15     Notwithstanding any provision of Minnesota Statutes, 
  7.16  chapter 353, to the contrary, terminated hospital employees may 
  7.17  receive a refund of employee accumulated contributions plus 
  7.18  interest at the rate of six percent per year compounded annually 
  7.19  in accordance with Minnesota Statutes 1998, section 353.34, 
  7.20  subdivision 2, at any time after the transfer of employment to 
  7.21  the successor employer to the Ridgeview medical center.  If a 
  7.22  terminated hospital employee has received a refund from a 
  7.23  pension plan enumerated in Minnesota Statutes, section 356.30, 
  7.24  subdivision 3, the person may not repay that refund unless the 
  7.25  person again becomes a member of one of those enumerated plans 
  7.26  and complies with Minnesota Statutes, section 356.30, 
  7.27  subdivision 2. 
  7.28     Sec. 8.  [COUNSELING SERVICES.] 
  7.29     The administrator of the Ridgeview medical center and the 
  7.30  executive director of the public employees retirement 
  7.31  association shall provide terminated hospital employees with 
  7.32  counseling on their benefits available under the general 
  7.33  employee retirement plan of the public employee retirement 
  7.34  association. 
  7.35     Sec. 9.  [EFFECTIVE DATE.] 
  7.36     Sections 1 to 8 are effective on the day following final 
  8.1   enactment. 
  8.2                              ARTICLE 3 
  8.3                  LOCAL POLICE AND PAID FIRE RELIEF 
  8.4                  ASSOCIATION BENEFIT MODIFICATIONS
  8.5      Section 1. Laws 1977, chapter 61, section 6, as amended by 
  8.6   Laws 1981, chapter 68, section 39, and Laws 1998, chapter 390, 
  8.7   article 7, section 3, is amended to read: 
  8.8      Sec. 6. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; 
  8.9   FINANCIAL REQUIREMENTS OF THE TRUST FUND.] 
  8.10     (a) The city of Eveleth shall provide by annual levy amount 
  8.11  sufficient to pay an amount which when added to the investment 
  8.12  income of the trust fund is sufficient to pay the benefits 
  8.13  provided under the trust fund for the succeeding year as 
  8.14  certified by the board of trustees of the trust fund. 
  8.15     (b) If the city of Eveleth fails to contribute the amount 
  8.16  required in paragraph (a) in a given year, no postretirement 
  8.17  adjustment granted under Laws 1995, chapter 262, article 10, 
  8.18  section 1, or Laws 1997, chapter 241, article 2, section 19 is 
  8.19  payable in the following year. 
  8.20     Sec. 2.  [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD 
  8.21  HOC POSTRETIREMENT ADJUSTMENT.] 
  8.22     In addition to the current pensions and other retirement 
  8.23  benefits payable, the pensions and retirement benefits payable 
  8.24  to retired police officers and firefighters and their surviving 
  8.25  spouses by the Eveleth police and fire trust fund are increased 
  8.26  by $100 a month.  Increases are retroactive to January 1, 1999. 
  8.27     Sec. 3.  [FAIRMONT POLICE RELIEF ASSOCIATION; ADDITIONAL 
  8.28  ANNUAL POSTRETIREMENT ADJUSTMENT.] 
  8.29     (a) Every recipient of a pension or benefit from the 
  8.30  Fairmont police relief association on June 30, annually, is 
  8.31  entitled to receive a postretirement adjustment as provided in 
  8.32  this section in addition to any pension or benefit increase by 
  8.33  virtue of an increase in the salary of active patrol officers in 
  8.34  the city of Fairmont on the following July 1. 
  8.35     (b) If the value of current assets of the relief 
  8.36  association is equal to at least 102 percent of the actuarial 
  9.1   accrued liability of the Fairmont police relief association as 
  9.2   of December 31 in the prior calendar year as calculated under 
  9.3   Minnesota Statutes, sections 356.215 and 356.216, one percent of 
  9.4   the value of current assets of the relief association is 
  9.5   available for the payment of the postretirement adjustment. 
  9.6      (c) The amount of the postretirement adjustment must be 
  9.7   calculated by the board of trustees of the relief association.  
  9.8   The postretirement adjustment amount is payable monthly.  The 
  9.9   total amount of all service pensions, disability pensions, and 
  9.10  survivor benefits, without inclusion of any postretirement 
  9.11  adjustment paid previously under this section must be calculated 
  9.12  and the percentage amount of each recipient's annual pension or 
  9.13  benefit of the total amount, expressed as four digits beyond the 
  9.14  decimal point, must be determined.  The monthly postretirement 
  9.15  adjustment payable to each pension or benefit recipient is 1/12 
  9.16  of the dollar amount determined by applying each recipient's 
  9.17  determined percentage of the total amount of pensions and 
  9.18  benefits to the total dollar amount available for payment as a 
  9.19  postretirement adjustment. 
  9.20     (d) The postretirement adjustment amount paid in any year 
  9.21  under this section does not compound and must not be added to 
  9.22  the pension base for the calculation of a subsequent 
  9.23  postretirement adjustment.  If a pension or benefit recipient 
  9.24  dies before the 12 monthly postretirement adjustments under this 
  9.25  section have been paid, the remaining monthly postretirement 
  9.26  adjustment payments cancel and nothing in this section 
  9.27  authorizes the payment of the postretirement adjustment to an 
  9.28  estate or to a person who did not qualify for a postretirement 
  9.29  adjustment in the person's own right. 
  9.30     (e) The secretary of the relief association will report the 
  9.31  total amount of benefits paid under this section to the 
  9.32  executive director of the legislative commission on pensions and 
  9.33  retirement, the city clerk, and the state auditor. 
  9.34     (f) Payment of the postretirement adjustment amount 
  9.35  provided under this section may be made only if the average 
  9.36  time-weighted total rate of return for the total portfolio for 
 10.1   the most recent five-year period exceeds by at least two percent 
 10.2   the actual average percent increase in the current monthly 
 10.3   salary of a first class patrol officer in the most recent prior 
 10.4   five fiscal years. 
 10.5      Sec. 4.  [FAIRMONT POLICE RELIEF ASSOCIATION; RETROACTIVITY 
 10.6   OF SURVIVING SPOUSE BENEFIT INCREASE.] 
 10.7      The surviving spouse benefit amount under Laws 1963, 
 10.8   chapter 423, is payable to all surviving spouses receiving 
 10.9   benefits as of the date of the approval of this act. 
 10.10     Sec. 5.  [FAIRMONT POLICE RELIEF ASSOCIATION; BYLAWS 
 10.11  AMENDMENTS REQUIRED.] 
 10.12     Sections 3 and 4 must be implemented by the appropriate 
 10.13  amendments to the bylaws of the Fairmont police relief 
 10.14  association. 
 10.15     Sec. 6.  [ST. CLOUD POLICE CONSOLIDATION ACCOUNT; SPECIAL 
 10.16  ONE-TIME POSTRETIREMENT ADJUSTMENT.] 
 10.17     (a) Notwithstanding any provision of general or special law 
 10.18  to the contrary, all service pensioners, disability pensioners, 
 10.19  and survivor benefit recipients of the St. Cloud police 
 10.20  consolidation account who had begun the receipt of pensions or 
 10.21  benefits before December 31, 1997, the effective date of the St. 
 10.22  Cloud police consolidation process under Minnesota Statutes, 
 10.23  chapter 353A, that began in April 1997, are entitled to receive 
 10.24  the pension or benefit increase granted under Laws 1997, chapter 
 10.25  233, article 1, section 72. 
 10.26     (b) The special one-time postretirement adjustment under 
 10.27  paragraph (a) is effective retroactive to January 1, 1998.  The 
 10.28  first payment of pensions and benefits next following the 
 10.29  effective date of this section must include any back payments of 
 10.30  the retroactive postretirement adjustment. 
 10.31     (c) Nothing in this section authorizes the payment of a 
 10.32  special postretirement adjustment to an estate. 
 10.33     Sec. 7. [EFFECTIVE DATE.] 
 10.34     (a) Sections 1 and 2 are effective on approval by the 
 10.35  Eveleth city council and compliance with Minnesota Statutes, 
 10.36  section 645.021. 
 11.1      (b) Sections 3, 4, and 5 are effective on the day following 
 11.2   approval by the Fairmont city council and compliance with 
 11.3   Minnesota Statutes, section 645.021. 
 11.4      (c) Section 6 is effective on the day following approval by 
 11.5   the St. Cloud city council and compliance with Minnesota 
 11.6   Statutes, section 645.021. 
 11.7                              ARTICLE 4 
 11.8                 KANDIYOHI COUNTY AND LITCHFIELD CITY 
 11.9                    VOLUNTEER RESCUE SQUAD RELIEF 
 11.10                     ASSOCIATION AUTHORIZATION 
 11.11     Section 1.  Minnesota Statutes 1998, section 356A.01, 
 11.12  subdivision 7, is amended to read: 
 11.13     Subd. 7.  [COVERED GOVERNMENTAL ENTITY.] "Covered 
 11.14  governmental entity" means a governmental subdivision or other 
 11.15  governmental entity that employs persons who are plan 
 11.16  participants in a covered pension plan and who are eligible for 
 11.17  that participation because of their employment.  "Covered 
 11.18  governmental entity" also means a governmental subdivision or 
 11.19  other governmental entity that establishes a relief association 
 11.20  under chapter 425B. 
 11.21     Sec. 2.  Minnesota Statutes 1998, section 356A.01, 
 11.22  subdivision 8, is amended to read: 
 11.23     Subd. 8.  [COVERED PENSION PLAN.] "Covered pension plan" 
 11.24  means a pension plan or fund listed in section 356.20, 
 11.25  subdivision 2, or 356.30, subdivision 3, or the special fund of 
 11.26  any relief association established under chapter 425B. 
 11.27     Sec. 3.  [425B.01] [DEFINITIONS.] 
 11.28     Subdivision 1.  [TERMS DEFINED.] As used in this chapter, 
 11.29  the terms defined in this section have the meanings given. 
 11.30     Subd. 2.  [RESCUE SQUAD.] "Rescue squad" includes a 
 11.31  municipal or county rescue squad and independent nonprofit 
 11.32  rescue squad corporation that performs emergency management 
 11.33  services (EMS).  Rescue squad does not include any rescue squad 
 11.34  that is affiliated with a fire department or ambulance service 
 11.35  and whose members are eligible for membership in that fire 
 11.36  department's or ambulance's relief association or comparable 
 12.1   pension plan. 
 12.2      Subd. 3.  [MUNICIPALITY.] "Municipality" means the city of 
 12.3   Litchfield in Meeker county. 
 12.4      Subd. 4.  [COUNTY.] "County" means Kandiyohi county. 
 12.5      Sec. 4.  [425B.02] [VOLUNTEER RESCUE SQUAD RELIEF 
 12.6   ASSOCIATION; AUTHORIZATION.] 
 12.7      Notwithstanding any provision of section 356.24 or 356.25 
 12.8   to the contrary, the governing body of a municipality or county 
 12.9   is authorized to establish a rescue squad relief association as 
 12.10  provided in this chapter. 
 12.11     Sec. 5.  [425B.03] [RELIEF ASSOCIATION SELF-GOVERNING.] 
 12.12     Subdivision 1.  [INCORPORATION.] (a) The relief association 
 12.13  must be incorporated under chapter 317A. 
 12.14     (b) The incorporators of the relief association are the 
 12.15  members of the governing body of the municipality or county. 
 12.16     Subd. 2.  [BOARD OF TRUSTEES; COMPOSITION.] (a) The relief 
 12.17  association must be governed by a board of trustees. 
 12.18     (b) The relief association board of trustees consists of 
 12.19  nine persons.  Six members of the board of trustees must be 
 12.20  elected by and from the membership of the relief association.  
 12.21  The remaining members of the board of trustees must be appointed 
 12.22  by the governing body of the municipality or county. 
 12.23     (c) The relief association must have three officers, which 
 12.24  are a president, secretary, and treasurer.  The officers must be 
 12.25  elected by and from the membership of the relief association.  
 12.26     (d) Initially, the term of office of the elected members of 
 12.27  the board of trustees is one year for board members designated 
 12.28  "A" and "B," two years for board members designated "C" and "D," 
 12.29  and three years for board members designated "E" and "F."  
 12.30  Thereafter, the term of office of all elected members of the 
 12.31  board of trustees is three years.  The term of office of 
 12.32  ex-officio members of the board of trustees is the term of 
 12.33  office of the person that gave rise to board membership.  The 
 12.34  term of office of an officer of the relief association is two 
 12.35  years or the balance of the board member's term of office as a 
 12.36  board member, whichever is shorter. 
 13.1      (e) The board of trustees must administer the affairs of 
 13.2   the relief association consistent with this chapter and the 
 13.3   applicable provisions of chapters 317A and 356A. 
 13.4      Subd. 3.  [SPECIAL AND GENERAL FUNDS.] (a) The relief 
 13.5   association shall establish and maintain a special fund and may 
 13.6   establish and maintain a general fund. 
 13.7      (b) The special fund must be credited with all money 
 13.8   received by the relief association from the municipality or 
 13.9   county or any money received from any other source for the 
 13.10  purpose of providing retirement benefits for rescue squad 
 13.11  members, any moneys or property that is donated, given, granted, 
 13.12  or devised by any person for the benefit of the rescue squad 
 13.13  relief association special fund, and any investment income 
 13.14  earned on the invested assets of the relief association. 
 13.15     (c) The treasurer of the relief association is the 
 13.16  custodian of the assets of the special fund and must be the 
 13.17  recipient, on behalf of the special fund, of all revenues 
 13.18  payable to the special fund.  The treasurer shall maintain 
 13.19  adequate records documenting any transaction involving the 
 13.20  assets or the revenues of the special fund.  The record of the 
 13.21  treasurer is public records and must be open for inspection by 
 13.22  any member of the relief association, any officer or employee of 
 13.23  the state of Minnesota or of the municipality or county, or any 
 13.24  member of the public, at reasonable times and places. 
 13.25     (d) Disbursements from the special fund may be made only 
 13.26  for one of the following purposes: 
 13.27     (1) for the payment of service pensions to retired members 
 13.28  of the relief association; 
 13.29     (2) for the payment of disability pensions to disabled 
 13.30  members of the relief association; 
 13.31     (3) for the payment of survivor benefits to the surviving 
 13.32  spouse, surviving dependent children, or estate of a deceased 
 13.33  member of the relief association; and 
 13.34     (4) for the payment of administrative expenses of the 
 13.35  relief association if the expenses are of the kind and type 
 13.36  authorized by section 69.80. 
 14.1      (e) All pension and benefit payments must be authorized by 
 14.2   and paid in accordance with the applicable law, the articles of 
 14.3   incorporation, and the bylaws of the relief association. 
 14.4      (f) The assets of the special fund must be invested only in 
 14.5   securities that comply with or are authorized by sections 
 14.6   356A.04 and 356A.06. 
 14.7      (g) The general fund, if established, must be operated as 
 14.8   provided in the articles of incorporation or bylaws of the 
 14.9   relief association. 
 14.10     Sec. 6.  [425B.04] [MEMBERSHIP; ELIGIBILITY.] 
 14.11     Subdivision 1.  [MEMBERSHIP.] The municipality or county, 
 14.12  by resolution, must specify the personnel providing rescue squad 
 14.13  service who may be members of the relief association. 
 14.14     Subd. 2.  [ELIGIBILITY.] The bylaws of the relief 
 14.15  association must specify any additional eligibility requirements 
 14.16  for persons specified under subdivision 1 for relief association 
 14.17  membership. 
 14.18     Sec. 7.  [425B.05] [BENEFITS.] 
 14.19     A relief association must either be a defined contribution 
 14.20  plan or a flexible service plan, as established by the 
 14.21  municipality or county. 
 14.22     Sec. 8.  [425B.06] [DEFINED CONTRIBUTION PLAN OPTION.] 
 14.23     Subdivision 1.  [INDIVIDUAL ACCOUNTS.] (a) The relief 
 14.24  association must establish individual accounts within the 
 14.25  special fund of the relief association for each relief 
 14.26  association member. 
 14.27     (b) To each individual account, there must be credited an 
 14.28  equal share of any contribution made by the governing body of 
 14.29  the municipality or county, any gift, bequeath, devise or other 
 14.30  transfer to the special fund, and any amount forfeited by a 
 14.31  former member who terminates active service with the rescue 
 14.32  squad before reaching the vesting requirements set forth in 
 14.33  subdivision 2, paragraph (b), and who does not return within 
 14.34  five years of the date of termination.  Any investment income of 
 14.35  the special fund must be credited to the individual accounts in 
 14.36  proportion to the balances in those accounts. 
 15.1      (c) Amounts to be credited to individual accounts may be 
 15.2   allocated only after the deduction of any reasonable and 
 15.3   necessary administrative expenses payable. 
 15.4      Subd. 2.  [SERVICE PENSION.] (a) The service pension amount 
 15.5   is the balance in the members' individual account. 
 15.6      (b) The service pension is not payable until the member 
 15.7   terminates active service with the rescue squad, has credit for 
 15.8   at least five years of service as an active member of the rescue 
 15.9   squad and five years as an active member of the relief 
 15.10  association, and has attained the age of at least 50 years. 
 15.11     (c) The retiring member must apply for the service pension. 
 15.12     Subd. 3.  [DISABILITY PENSION.] (a) The disability pension 
 15.13  amount is the balance in the member's individual account. 
 15.14     (b) The disability pension is not payable until the member 
 15.15  terminates active service with the rescue squad by virtue of any 
 15.16  injury or illness that renders the member incapable of 
 15.17  performing rescue squad duties.  
 15.18     Subd. 4.  [DEATH BENEFIT.] The death benefit amount is the 
 15.19  balance in the deceased member's individual account. 
 15.20     Subd. 5.  [PAYMENT.] All pensions and benefits under this 
 15.21  section are payable in a single lump sum payment. 
 15.22     Sec. 9.  [425B.07] [FLEXIBLE SERVICE PLAN OPTION.] 
 15.23     A municipality or county may develop and implement its own 
 15.24  flexible service plan for payment of pensions to eligible 
 15.25  members out of the special fund.  The plan, as enacted by the 
 15.26  municipality or county as an ordinance, in the discretion of the 
 15.27  municipality or county, must include provisions for vesting 
 15.28  requirements, contribution levels, payment amounts, disability 
 15.29  pension provisions, death benefits, payment terms, the method of 
 15.30  payment, including lump sum, monthly or annually, and such other 
 15.31  terms as the municipality or county deems necessary. 
 15.32     Sec. 10.  [425B.08] [FUNDING.] 
 15.33     (a) A municipality or county, annually, must include in its 
 15.34  budget a contribution to the relief association. 
 15.35     (b) The contribution amount must be transmitted to the 
 15.36  relief association treasurer annually on the payment date 
 16.1   specified by the governing body of the municipality or county. 
 16.2      Sec. 11.  [425B.09] [AUDIT.] 
 16.3      The rescue squad relief association must be audited 
 16.4   annually by the state auditor. 
 16.5      Sec. 12.  [425B.10] [SPECIAL BENEFITS FOR EXISTING 
 16.6   MEMBERS.] 
 16.7      A municipality or county may, under such terms and 
 16.8   conditions as it approves, provide pensions under either the 
 16.9   defined contribution plan option or flexible service plan option 
 16.10  to existing members of the rescue squad as of the date the 
 16.11  relief association is incorporated through waivers of length of 
 16.12  service vesting requirements.  The terms and conditions must be 
 16.13  included in the bylaws of the relief association at the time of 
 16.14  incorporation. 
 16.15     Sec. 13.  [425B.11] [INAPPLICABILITY OF CERTAIN PROVISIONS 
 16.16  OF LAW.] 
 16.17     No member of the rescue squad relief association may 
 16.18  participate in or be eligible to receive any benefit or award 
 16.19  amount from the ambulance service personnel longevity award and 
 16.20  incentive program established under sections 144E.40 to 144E.48 
 16.21  or from any volunteer firefighter relief association under 
 16.22  chapter 424A by virtue of service rendered on behalf of the 
 16.23  rescue squad. 
 16.24     Sec. 14.  [EFFECTIVE DATE.] 
 16.25     Sections 1 to 13 are effective on the day following final 
 16.26  enactment.