1.1 	A bill for an act
1.2 	relating to retirement; amending disability benefits eligibility requirements in 
1.3 	the Public Employees Retirement Association police and fire fund; amending 
1.4 	Minnesota Statutes 2004, section 353.656, subdivisions 3, 6a; Minnesota Statutes 
1.5 	2005 Supplement, section 353.656, subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2005 Supplement, section 353.656, subdivision 1, 
1.8 	is amended to read:
1.9 		Subdivision 1.In line of duty; computation of benefits. (a) A member of the police 
1.10 	and fire plan who has not met the requirements for a retirement annuity under section 
1.11 	353.651, subdivision 1, and who becomes disabled and physically unfit to perform duties 
1.12 	as a police officer, firefighter, or paramedic as defined under section 353.64, subdivision 
1.13 	10, as a direct result of an injury, sickness, or other disability incurred in or arising out of 
1.14 	any act of duty, which has or is expected to render the member physically or mentally 
1.15 	unable to perform the duties as a police officer, firefighter, or paramedic as defined under 
1.16 	section 353.64, subdivision 10, for a period of at least one year, shall receive disability 
1.17 	benefits during the period of such disability. 
1.18 	(b) The benefits must be in an amount equal to 60 percent of the "average salary" as 
1.19 	defined in section 353.01, subdivision 17a, plus an additional percent specified in section 
1.20 	356.315, subdivision 6, of that average salary for each year of service in excess of 20 
1.21 	years. If the disability under this subdivision occurs before the member has at least five 
1.22 	years of allowable service credit in the police and fire plan, the disability benefit must be 
1.23 	computed on the "average salary" from which deductions were made for contribution to 
1.24 	the police and fire fund.

2.1 	Sec. 2. Minnesota Statutes 2004, section 353.656, subdivision 3, is amended to read:
2.2 		Subd. 3.Nonduty disability benefit. (a) Any member of the police and fire 
2.3 	plan who has not met the requirements for a retirement annuity under section 353.651, 
2.4 	subdivision 1, and who becomes disabled after not less than one year of allowable service 
2.5 	because of sickness or injury occurring while not on duty as a police officer, firefighter, or 
2.6 	paramedic as defined under section  353.64, subdivision 10, and by reason of that sickness 
2.7 	or injury the member has been or is expected to be unable to perform the duties as a police 
2.8 	officer, firefighter, or paramedic as defined under section  353.64, subdivision 10, for a 
2.9 	period of at least one year, is entitled to receive a disability benefit. 
2.10 	(b) The benefit must be paid in the same manner as if the benefit were paid under 
2.11 	section  353.651. If a disability under this subdivision occurs after one but in less than 15 
2.12 	years of allowable service, the disability benefit must be the same as though the member 
2.13 	had at least 15 years service. For a member who is employed as a full-time firefighter 
2.14 	by the Department of Military Affairs of the state of Minnesota, allowable service as a 
2.15 	full-time state Military Affairs Department firefighter credited by the Minnesota State 
2.16 	Retirement System may be used in meeting the minimum allowable service requirement 
2.17 	of this subdivision. 

2.18 	Sec. 3. Minnesota Statutes 2004, section 353.656, subdivision 6a, is amended to read:
2.19 		Subd. 6a.Disability survivor benefits. If a member who is receiving a disability 
2.20 	benefit under subdivision 1 or 3:
2.21 	(a) dies before attaining the age 65 required for receipt of a retirement annuity under 
2.22 	section 353.651, subdivision 1, or within five years of the effective date of the disability, 
2.23 	whichever is later, the surviving spouse shall receive a survivor benefit under section  
2.24 	353.657, subdivision 2 or 2a, unless the surviving spouse elected to receive a refund under 
2.25 	section  353.32, subdivision 1. The joint and survivor optional annuity under subdivision 
2.26 	2a is based on the minimum disability benefit under subdivision 1 or 3, or the deceased 
2.27 	member's allowable service, whichever is greater. 
2.28 	(b) is living at the age 65 required for receipt of a retirement annuity under section 
2.29 	353.651, subdivision 1, or five years after the effective date of the disability, whichever 
2.30 	is later, the member may continue to receive a normal disability benefit, or the member 
2.31 	may elect a joint and survivor optional annuity under section  353.30. The optional annuity 
2.32 	is based on the minimum disability benefit under subdivision 1 or 3, or the member's 
2.33 	allowable service, whichever is greater. The election of this joint and survivor annuity 
2.34 	must occur within 90 days of the age 65 required for receipt of a retirement annuity under 
2.35 	section 353.651, subdivision 1, or the five-year anniversary of the effective date of the 
3.1 	disability benefit, whichever is later. The optional annuity takes effect the first of the 
3.2 	month following the month in which the person attains the age 65 required for receipt 
3.3 	of a retirement annuity under section 353.651, subdivision 1, or reaches the five-year 
3.4 	anniversary of the effective date of the disability benefit, whichever is later. 
3.5 	(c) if there is a dependent child or children under paragraph (a) or (b), the association 
3.6 	shall grant a dependent child benefit under section  353.657, subdivision 3.