1.1                          A bill for an act 
  1.2             relating to retirement; Public Employees Retirement 
  1.3             Association police and fire plan; modifying the 
  1.4             procedure by which applications for disability are 
  1.5             made; clarifying duties of the medical advisor; 
  1.6             amending Minnesota Statutes 2002, section 353.656, 
  1.7             subdivision 5, by adding subdivisions. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 353.656, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [PROOF OF DISABILITY.] (a) A disability benefit 
  1.12  payment must not be made except upon adequate proof furnished to 
  1.13  the association of the existence of such disability, and. 
  1.14     (b) During the time when disability benefits are being 
  1.15  paid, the association has the right, at reasonable times, to 
  1.16  require the disabled member to submit proof of the continuance 
  1.17  of the disability claimed.  
  1.18     (c) A person applying for or receiving a disability benefit 
  1.19  shall provide or authorize release of medical evidence, 
  1.20  including all medical records and information from any source, 
  1.21  relating to an application for disability benefits or the 
  1.22  continuation of those benefits. 
  1.23     Sec. 2.  Minnesota Statutes 2002, section 353.656, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 8.  [APPLICATION PROCEDURE TO DETERMINE ELIGIBILITY 
  1.26  FOR POLICE AND FIRE PLAN DISABILITY BENEFITS.] (a) An 
  2.1   application for disability benefits must be made in writing on a 
  2.2   form or forms prescribed by the executive director. 
  2.3      (b) If an application for disability benefits is filed 
  2.4   within two years of the date of injury or onset of an illness, 
  2.5   the application must be supported by evidence that the applicant 
  2.6   is unable to perform the duties of the position held by the 
  2.7   applicant on the date of the injury or onset of an illness 
  2.8   causing the disability.  The employer must provide evidence 
  2.9   indicating whether the applicant is able or unable to perform 
  2.10  the duties of the position held on the date of the injury or 
  2.11  onset of illness causing the disability. 
  2.12     (c) Where an application for disability is filed more than 
  2.13  two years after the date of the injury or onset of an illness 
  2.14  causing the disability, the application must be supported by 
  2.15  evidence that the applicant is unable to perform the most recent 
  2.16  duties expected to be performed by the applicant during the 90 
  2.17  days prior to the filing of the application.  The employer must 
  2.18  provide evidence of the most recent duties expected to be 
  2.19  performed by the applicant during the 90 days prior to the 
  2.20  filing of the application, whether the applicant can or cannot 
  2.21  perform those duties overall, and specifications of any duties 
  2.22  that the applicant can or cannot perform. 
  2.23     (d) No application for disability benefits can be filed by 
  2.24  a former member of the police and fire plan more than three 
  2.25  years after the former member has terminated public employment.  
  2.26  If an application is filed within three years after termination 
  2.27  of public employment, the former member must provide evidence 
  2.28  that the disability is the direct cause of an injury or the 
  2.29  contracting of an illness that occurred while still actively 
  2.30  employed and participating in the police and fire plan. 
  2.31     (e) Any application for duty-related disability must be 
  2.32  supported by a first report of injury as defined in section 
  2.33  176.231. 
  2.34     (f) If a member who has applied for and been approved for 
  2.35  disability benefits before termination of service does not 
  2.36  terminate service or is not placed on an authorized leave of 
  3.1   absence as certified by the governmental subdivision within 45 
  3.2   days following the date the application is approved, the 
  3.3   application will be canceled.  If an approved application for 
  3.4   disability benefits has been canceled, a subsequent application 
  3.5   for disability benefits may not be filed on the basis of the 
  3.6   same medical condition for a minimum of one year from the date 
  3.7   the previous application was canceled. 
  3.8      (g) An applicant may file a retirement application pursuant 
  3.9   to section 353.29, subdivision 4, at the same time the 
  3.10  disability application is filed.  If the disability application 
  3.11  is approved, the retirement application is canceled.  If the 
  3.12  disability application is denied, the retirement application 
  3.13  will be initiated and processed upon the request of the 
  3.14  applicant.  A police and fire fund member may not receive a 
  3.15  disability benefit and a retirement annuity from the police and 
  3.16  fire fund at the same time. 
  3.17     (h) A repayment of a refund must be made within six months 
  3.18  after the effective date of disability benefits or within six 
  3.19  months after the date of the filing of the disability 
  3.20  application, whichever is later.  No purchase of prior service 
  3.21  or payment made in lieu of salary deductions otherwise 
  3.22  authorized under section 353.01 or 353.36, subdivision 2, may be 
  3.23  made after the occurrence of the disability for which an 
  3.24  application is filed under this section. 
  3.25     Sec. 3.  Minnesota Statutes 2002, section 353.656, is 
  3.26  amended by adding a subdivision to read: 
  3.27     Subd. 9.  [REFUSAL OF EXAMINATION OR MEDICAL EVIDENCE.] If 
  3.28  a person applying for or receiving a disability benefit refuses 
  3.29  to submit to a medical examination under subdivision 11, or 
  3.30  fails to provide or authorize the release of medical evidence 
  3.31  under subdivisions 5 and 7, the association shall cease the 
  3.32  application process or discontinue the payment of a disability 
  3.33  benefit, whichever is applicable.  Upon receipt of the requested 
  3.34  medical evidence, the association shall resume the application 
  3.35  process or the payment of a disability benefit upon approval for 
  3.36  the continuation, whichever is applicable. 
  4.1      Sec. 4.  Minnesota Statutes 2002, section 353.656, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 10.  [ACCRUAL OF BENEFITS.] (a) A disability benefit 
  4.4   begins to accrue the day following the commencement of 
  4.5   disability, 90 days preceding the filing of an application, or, 
  4.6   if annual or sick leave is paid for more than the 90-day period, 
  4.7   from the date salary ceased, whichever is later. 
  4.8      (b) Payment must not continue beyond the end of the month 
  4.9   in which entitlement has terminated.  If the disabilitant dies 
  4.10  prior to negotiating the check for the month in which death 
  4.11  occurs, payment is made to the surviving spouse or, if none, to 
  4.12  the designated beneficiary or, if none, to the estate. 
  4.13     Sec. 5.  Minnesota Statutes 2002, section 353.656, is 
  4.14  amended by adding a subdivision to read: 
  4.15     Subd. 11.  [INDEPENDENT MEDICAL EXAMINATION; DUTIES OF THE 
  4.16  MEDICAL ADVISOR.] An individual receiving disability benefits 
  4.17  and an applicant, if requested by the executive director, must 
  4.18  submit to an independent medical examination which will be paid 
  4.19  for by the association.  The medical advisor shall review all 
  4.20  medical reports submitted to the association, including the 
  4.21  findings of an independent medical examination requested under 
  4.22  this section, and advise the executive director of the results. 
  4.23     Sec. 6.  Minnesota Statutes 2002, section 353.656, is 
  4.24  amended by adding a subdivision to read: 
  4.25     Subd. 12.  [APPROVAL OF DISABILITY BENEFITS.] Approval of 
  4.26  an application for disability benefits shall be made by the 
  4.27  executive director based upon all relevant evidence including 
  4.28  advice from the medical advisor and evidence provided by the 
  4.29  member and employer.  A member whose application for disability 
  4.30  benefits is denied may appeal the executive director's decision 
  4.31  to the board of trustees within 45 days of receipt of a 
  4.32  certified letter notifying the member of the decision to deny 
  4.33  the application. 
  4.34     Sec. 7.  [EFFECTIVE DATE.] 
  4.35     Sections 1 to 6 are effective July 1, 2004.