as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; correcting Minneapolis 1.3 firefighters relief association provisions; amending 1.4 certain administrative procedures; amending Minnesota 1.5 Statutes 2001 Supplement, sections 423C.01, 1.6 subdivisions 17, 25; 423C.03, subdivisions 4, 6; 1.7 423C.04, subdivision 4; 423C.05, subdivisions 7, 9. 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. Minnesota Statutes 2001 Supplement, section 1.10 423C.01, subdivision 17, is amended to read: 1.11 Subd. 17. [EXCESS INVESTMENT INCOME.] "Excess investment 1.12 income" means the amount, if any, by which the average 1.13 time-weighted total rate of return earned by the special fund in 1.14 the most recent prior five fiscal years has exceeded the actual 1.15 average percentage increase in the current monthly salary of a 1.16 first grade firefighter in the most recent prior five fiscal 1.17 year plus two percent. The excess investment income must be 1.18 expressed as a dollar amount and may not exceed one percent of 1.19 the total assets of the special fund, except when the actuarial 1.20 value of assets of the special fund
,according to the most 1.21 recent annual actuarial valuation prepared in accordance with 1.22 sections 356.215 and 356.216 ,is greater than 102 percent of its 1.23 actuarial accrued liabilities ,in which case the amount must not 1.24 exceed 1.5 percent of the assets of the special fund. 1.25 Sec. 2. Minnesota Statutes 2001 Supplement, section 1.26 423C.01, subdivision 25, is amended to read: 2.1 Subd. 25. [SURVIVING SPOUSE MEMBER.] "Surviving spouse 2.2 member" means a person who was: 2.3 (1) legally married to, and residing with, an active, 2.4 deferred, disabled, or retired member both during the time the 2.5 member was regularly entered on the payroll and serving on 2.6 active duty in the fire department and at the time of the 2.7 member's death; 2.8 (2) not in a common law marriage;and 2.9 (3)(2) in the event the person was married to a retired or 2.10 deferred member, married to that retired or deferred member for 2.11 at least two yearsone year prior to the member's discharge from 2.12 the fire department. 2.13 Sec. 3. Minnesota Statutes 2001 Supplement, section 2.14 423C.03, subdivision 4, is amended to read: 2.15 Subd. 4. [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a) 2.16 The executive secretary and the treasurer must furnish to the 2.17 relief association a corporate bond for the faithful performance 2.18 of the duties of that office in an amount as the board of 2.19 trustees from time to time may determine, subject to the minimum 2.20 amount specified in section 69.051, subdivision 2. 2.21 (b) The relief association must pay the premiums on these 2.22 bonds from the generalspecial fund of the relief association. 2.23 Sec. 4. Minnesota Statutes 2001 Supplement, section 2.24 423C.03, subdivision 6, is amended to read: 2.25 Subd. 6. [ADDITIONAL BOARD POWERS.] In addition to the 2.26 powers granted the board by this chapter, chapter 317A, other 2.27 applicable state and federal law, and its articles and bylaws, 2.28 the board shall authorize and create a board of examiners. 2.29 The board of examiners shall investigate and report on all 2.30 applications for disability pensions and make recommendations as 2.31 to the amount to be paid to each applicant; investigate and 2.32 report on all disability pensioners and make recommendations as 2.33 to the amount of pension to be paid to them, from year to year; 2.34 and investigate and report on all applications for service 2.35 pensions and claims for relief. This board shall consist of a2.36 competent physician selected by the association andat least 3.1 three members of the board of the relief association on active3.2 duty with the fire department. 3.3 Sec. 5. Minnesota Statutes 2001 Supplement, section 3.4 423C.04, subdivision 4, is amended to read: 3.5 Subd. 4. [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any 3.6 law to the contrary, special fund contributions of active 3.7 members of the association with at least 25 years of service 3.8 made after the 25th year of service must be deposited in a 3.9 separate account and used to pay health care costs of the 3.10 individual member upon retirement. The board shall adopt rules 3.11 regarding the frequency and amounts of distributions from these 3.12 accounts. A member with an account established pursuant to this 3.13 section is entitled, upon retirement or disability, to receive 3.14 periodic distributions from the account, in the amount and with 3.15 the frequency specified by the retiringmember consistent with 3.16 the board's rules. 3.17 Sec. 6. Minnesota Statutes 2001 Supplement, section 3.18 423C.05, subdivision 7, is amended to read: 3.19 Subd. 7. [SURVIVING SPOUSE AND DEPENDENT PENSIONS.] 3.20 Notwithstanding any other law to the contrary, when a service 3.21 pensioner, disability pensioner, deferred pensioner, or active 3.22 member of the association dies, recipient beneficiaries are 3.23 entitled to a pension or pensions, as follows: 3.24 (1) to a surviving spouse, a pension of 22 units per month; 3.25 (2) a surviving spouse of a deceased service pensioner, 3.26 disability pensioner, or deferred pensioner who is otherwise not 3.27 qualified for a pension may receive a benefit if the surviving 3.28 spouse was legally married to the decedent for a period of two 3.29 years and was residing with the decedent at the time of death. 3.30 The surviving spouse benefit provided in this clause is the same 3.31 as that provided to those who meet the definition of surviving 3.32 spouse under section 423C.01, subdivision 25, except that if the 3.33 surviving spouse is younger than the decedent, the surviving 3.34 spouse benefit must be actuarially equivalent to a surviving 3.35 spouse benefit that would have been paid to the member's spouse 3.36 had the member been married to a person of the same or greater 4.1 age than the member's age prior to retirement. A benefit paid 4.2 in this circumstance may be less than 17 units notwithstanding 4.3 the minimum set out in this clausesubdivision; 4.4 (3) to each dependent, if the dependent's other parent is 4.5 living, a pension not to exceed eight units per month. 4.6 Dependents between the ages of 18 and 22 may continue to receive 4.7 a pension upon board determination that the dependent complies 4.8 with the requirements of section 423C.01, subdivision 11, and 4.9 applicable association bylaws, except that if the dependent 4.10 marries before the age of 22 years the pension shall cease as of 4.11 the date of the marriage. The board shall make the final 4.12 determination with respect to eligibility for benefits and 4.13 compliance with section 423C.01, subdivision 11; 4.14 (4) each dependent of a deceased member after the death of 4.15 the dependent's other parent, or in the event the other parent 4.16 predeceases the member, is entitled to receive a pension in the 4.17 amount the board deems necessary to properly support each 4.18 dependent until the dependent reaches the age of not less than 4.19 16 and not more than 18 years. Dependents between the ages of 4.20 18 and 22 may be entitled to continue receiving a pension upon 4.21 board determination that the dependent complies with the 4.22 requirements of section 423C.01, subdivision 11, and applicable 4.23 association bylaws, except that if the dependent marries before 4.24 the age of 22 years the pension shall cease as of the date of 4.25 the marriage. The board shall make the final determination with 4.26 respect to eligibility for benefits and compliance; and 4.27 (5) the total pension payable to a surviving spouse and all 4.28 dependents of a deceased member shall in no event exceed 4142 4.29 units per month. 4.30 Sec. 7. Minnesota Statutes 2001 Supplement, section 4.31 423C.05, subdivision 9, is amended to read: 4.32 Subd. 9. [ ALTERNATIVESERVICE PENSION FOR UNMARRIED 4.33 MEMBER.] A retired member who iswas not legally married on 4.34 September 1, 1997, and remainsremained unmarried on the 4.35 effective date of Laws 2001, First Special Session chapter 10, 4.36 article 15, may, if the member had obtained 25 years of service 5.1 credit, select a service pension of 42.3 units in lieu of a 5.2 service pension under subdivision 2. 5.3 Sec. 8. [INTENT.] 5.4 Laws 2001, First Special Session chapter 10, article 15, 5.5 was intended to recodify the prior local laws applicable to the 5.6 Minneapolis firefighters relief association as they then 5.7 existed. The provisions in sections 1, 2, 6, and 7 are intended 5.8 to correct provisions of Laws 2001, First Special Session 5.9 chapter 10, article 15. If any provision of sections 1 to 7 or 5.10 Laws 2001, First Special Session chapter 10, article 15, result 5.11 in a member receiving a benefit that the member would not have 5.12 otherwise been entitled to receive prior to the effective date 5.13 of Laws 2001, First Special Session chapter 10, article 15, the 5.14 secretary of the Minneapolis firefighters relief association 5.15 shall notify the executive director of the legislative 5.16 commission on pensions and retirement and the mayor of the city 5.17 of Minneapolis. 5.18 Sec. 9. [EFFECTIVE DATE.] 5.19 The provisions of sections 1, 2, 6, and 7 are effective 5.20 retroactive to October 25, 2001. The provisions of sections 3, 5.21 4, and 5 are effective the day following final enactment.