1.1                          A bill for an act 
  1.2             relating to retirement; public employees retirement 
  1.3             association police and fire plan; authorizing survivor 
  1.4             benefit for the survivor of a deceased member. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [SURVIVOR BENEFIT FOR DECEASED PUBLIC EMPLOYEES 
  1.7   RETIREMENT ASSOCIATION POLICE AND FIRE PLAN MEMBER.] 
  1.8      Subdivision 1.  [APPLICATION.] An eligible individual under 
  1.9   subdivision 2 is eligible to receive the benefit specified in 
  1.10  subdivision 3 upon satisfying requirements specified in 
  1.11  subdivision 4. 
  1.12     Subd. 2.  [ELIGIBILITY.] An eligible individual is a 
  1.13  surviving spouse of a deceased previous member of the public 
  1.14  employees retirement association police and fire plan who: 
  1.15     (1) was born on October 10, 1933; 
  1.16     (2) was injured on April 29, 1977, while performing duties 
  1.17  as the chief of police for the city of Hayfield; 
  1.18     (3) was incorrectly diagnosed in March 1978 as having 
  1.19  amyotrophic lateral sclerosis; 
  1.20     (4) received a refund of employee contributions to the 
  1.21  public employees retirement association police and fire plan; 
  1.22  and 
  1.23     (5) died on March 13, 1999, from conditions resulting from 
  1.24  the April 29, 1977, injury. 
  1.25     Subd. 3.  [BENEFIT AMOUNT.] (a) The benefit amount is the 
  2.1   amount specified in paragraph (b) plus the amount specified in 
  2.2   paragraph (c). 
  2.3      (b) The executive director of the public employees 
  2.4   retirement association must compute the present value, on the 
  2.5   first of the month following the date all requirements under 
  2.6   subdivision 4 are satisfied, of duty-related disability benefits 
  2.7   assuming that the public employees retirement association board 
  2.8   had concluded that the deceased chief of police for the city of 
  2.9   Hayfield, as described in subdivision 2, met the requirements of 
  2.10  Minnesota Statutes 1978, section 353.656, subdivision 1, for 
  2.11  disability benefits due to duty-related injury.  The computation 
  2.12  must assume that the disability benefit would have been paid 
  2.13  from the first of the month following the determination of the 
  2.14  public employees retirement association board that the deceased 
  2.15  chief of police for the city of Hayfield, described in 
  2.16  subdivision 2, met the requirements of Minnesota Statutes 1978, 
  2.17  section 353.656, subdivision 1, until the individual's death on 
  2.18  March 13, 1999.  The computation must include any increases or 
  2.19  other adjustments payable under the Minnesota postretirement 
  2.20  investment fund or its predecessor fund or funds.  The 
  2.21  disability benefits assumed in the computation must be reduced 
  2.22  by any workers' compensation benefits paid or payable, if 
  2.23  required under applicable law.  The executive director must 
  2.24  subtract, from the present value, the present value of the 
  2.25  refund plus any applicable interest that was paid to the now 
  2.26  deceased employee.  The computations under this paragraph must 
  2.27  assume 8.5 percent interest, compounded annually.  The 
  2.28  computations must also assume election of a 100 percent 
  2.29  joint-and-survivor optional annuity at the earliest opportunity 
  2.30  authorized under public employees retirement association law or 
  2.31  administrative procedure.  The amount determined under this 
  2.32  paragraph is payable on the first of the month following the 
  2.33  date all requirements under subdivision 4 are satisfied. 
  2.34     (c) An annuity is payable to the eligible individual under 
  2.35  subdivision 2, computed assuming the deceased police officer had 
  2.36  elected a 100 percent joint-and-survivor annuity.  The annuity 
  3.1   accrues from April 1, 1999.  Any amounts representing monthly 
  3.2   annuity payments prior to the date all requirements under 
  3.3   subdivision 4 are met are payable as a lump sum amount, 
  3.4   including 8.5 percent interest compounded annually, payable on 
  3.5   the first of the month following the date all requirements under 
  3.6   subdivision 4 are met.  The executive director is authorized to 
  3.7   transfer assets representing the full actuarial reserves for the 
  3.8   annuity authorized under this paragraph from the public 
  3.9   employees retirement association police and fire fund to the 
  3.10  Minnesota postretirement investment fund. 
  3.11     Subd. 4.  [ADMINISTRATIVE HEARING; OTHER REQUIREMENTS.] (a) 
  3.12  The public employees retirement association shall hold an 
  3.13  administrative hearing under Minnesota Statutes, sections 14.57 
  3.14  to 14.62, to determine whether the previous member of the public 
  3.15  employees retirement association police and fire fund plan 
  3.16  described in subdivision 2 died from conditions resulting from 
  3.17  the April 29, 1997 injury.  Notice of the hearing must be 
  3.18  provided within 30 days of the effective date of this section 
  3.19  and the hearing must be held as soon as practicable after the 
  3.20  notice is provided.  The findings of the administrative law 
  3.21  judge must be filed with the executive director of the public 
  3.22  employees retirement association, the eligible individual under 
  3.23  subdivision 2, and the executive director of the legislative 
  3.24  commission on pensions and retirement. 
  3.25     (b) Benefits are payable under this section if the 
  3.26  administrative law judge concludes that the individual's death 
  3.27  on March 13, 1999, was caused by conditions resulting from the 
  3.28  April 29, 1977, injury. 
  3.29     (c) The eligible individual under subdivision 2 must 
  3.30  provide the executive director of the public employees 
  3.31  retirement association with all relevant documentation to verify 
  3.32  that all remaining eligibility requirements in this section are 
  3.33  satisfied and with any other applicable information that the 
  3.34  executive director may request. 
  3.35     Sec. 2.  [EFFECTIVE DATE.] 
  3.36     Section 1 is effective the day following final enactment.