HF 4301

as introduced - 91st Legislature (2019 - 2020) Posted on 03/09/2020 01:31pm

A bill for an act
relating to retirement; Public Employees Retirement Association; allowing for
purchases of service credit for less than the entire period of service in the uniformed
services; clarifying retroactive benefit commencement dates; revising provisions
related to phased retirement; revising duty disability provisions to comply with
plan operation; making other changes of an administrative nature; amending
Minnesota Statutes 2018, sections 353.29, subdivisions 1, 7; 353.30, subdivision
3c; 353.31, subdivision 8; 353.32, subdivision 4; 353.651, subdivision 1; 353.656,
subdivisions 1, 3; 353.657, subdivision 1; Minnesota Statutes 2019 Supplement,
sections 353.01, subdivision 2b; 353.0141, subdivision 1; 353.34, subdivision 3;
353.371, subdivisions 1, 2, by adding a subdivision; repealing Minnesota Statutes
2018, section 353.30, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2019 Supplement, section 353.01, subdivision 2b, is amended
to read:

Subd. 2b.

Excluded employees.

(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:

(1) persons whose annual salary from one governmental subdivision never exceeds an
amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed the
applicable amount, the stipulation is no longer valid and contributions must be made on
behalf of the employee under section 353.27, subdivision 12, from the first month in which
the employee received salary exceeding $425 in a month;

(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elected office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elected position;

(3) election judges and persons employed solely to administer elections;

(4) patient and inmate personnel who perform services for a governmental subdivision;

(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;

(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;

(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

(8) persons who are members of a religious order and are excluded from coverage under
the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
no irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;

(9) persons who are:

(i) employed by a governmental subdivision who have not reached the age of 23 and
who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or at a public or charter high school;

(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or

(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;

(10) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;

(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, except that the following foreign citizens are included employees
under subdivision 2a:

(i) employees of Hennepin County or Hennepin Healthcare System, Inc.;

(ii) employees legally authorized to work in the United States for three years or more;
and

(iii) employees otherwise required to participate under federal law;

(12) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;

(13) except as provided in section 353.86, volunteer ambulance service personnel, as
defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
may still qualify as public employees under subdivision 2 and may be members of the Public
Employees Retirement Association and participants in the general employees retirement
plan or the public employees police and fire plan, whichever applies, on the basis of
compensation received from public employment service other than service as volunteer
ambulance service personnel;

(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
36, engaging in activities undertaken as part of volunteer firefighter duties, but a person
who is a volunteer firefighter may still qualify as a public employee under subdivision 2
and may be a member of the Public Employees Retirement Association and a participant
in the general employees retirement plan or the public employees police and fire plan,
whichever applies, on the basis of compensation received from public employment activities
other than those as a volunteer firefighter;

(15) pipefitters and associated trades personnel employed by Independent School District
No. 625, St. Paul, with coverage under a collective bargaining agreement by the Pipefitters
Local 455 pension plan who were either first employed after May 1, 1997, or, if first
employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article
2, section 12;

(16) electrical workers, plumbers, carpenters, and associated trades personnel who are
employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who
have retirement coverage under a collective bargaining agreement by the Electrical Workers
Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the
pension plan applicable to Carpenters Local 322 who were either first employed after May
1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000,
chapter 461, article 7, section 5;

(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent
School District No. 625, St. Paul, with coverage under a collective bargaining agreement
by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local
633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters
and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension
plan who were either first employed after May 1, 2001, or if first employed before May 2,
2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10,
section 6;

(18) plumbers who are employed by the Metropolitan Airports Commission, with
coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
who either were first employed after May 1, 2001, or if first employed before May 2, 2001,
elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section
6;

(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to deleted text begin 185 consecutive calendar
days deleted text end new text begin a period of six months new text end or less in each year of employment with the governmental
subdivision;

(20) persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision limits the
position's duration to up to five years, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part of, or for,
future permanent public employment;

(21) independent contractors and the employees of independent contractors;

(22) reemployed annuitants of the association during the course of that reemployment;

(23) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof;

(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
Transit Commission who are members of the International Brotherhood of Teamsters Local
638 and who are, by virtue of that employment, members of the International Brotherhood
of Teamsters Central States pension plan;

(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board,
with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters
local 539 pension plan, who were first employed before May 2, 2015, and who elected to
be excluded under Laws 2015, chapter 68, article 11, section 5; and

(26) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
under a collective bargaining agreement and have retirement coverage by the Minnesota
Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first
employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211,
article 16, section 13.

(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 353.0141, subdivision 1, is amended
to read:

Subdivision 1.

Service credit purchase authorized.

(a) Unless prohibited under
paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five
new text begin cumulative new text end years of allowable service credit, for one or more periods of service in the
uniformed services, as defined in United States Code, title 38, section 4303(13), if new text begin :
new text end

new text begin (1) new text end the member has at least three years of allowable service credit with the general
employees retirement plan, the local government correctional employees retirement plan
under chapter 353E, or the public employees police and fire retirement plan new text begin ;
new text end

new text begin (2) the member's current period of employment is at least six months; new text end and

new text begin (3) one of the following applies new text end :

deleted text begin (1) deleted text end new text begin (i) new text end the member's service in the uniformed services occurred before becoming a public
employee as defined in section 353.01, subdivision 2; or

deleted text begin (2) deleted text end new text begin (ii) new text end the member failed to obtain service credit for a uniformed services leave of
absence under section 353.01, subdivision 16, paragraph (a), clause (8).

(b) A service credit purchase is prohibited if:

(1) the member separated from service in the uniformed services with a dishonorable
or bad conduct discharge or under other than honorable conditions; or

(2) the member has purchased or otherwise received service credit from any Minnesota
public employee pension plan for the same period of service in the uniformed services.

new text begin (c) When purchasing a period of service, if the period of service in the uniformed services
is one year or less, then the member must purchase the full period of service. If the period
of service in the uniformed services is longer than one year, the member may purchase the
full period, not to exceed five cumulative years, or may purchase a portion of the period of
service. If a member wishes to purchase a portion of the period of service, the portion must:
new text end

new text begin (1) not be less than one year; and
new text end

new text begin (2) be in increments of six months of service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 3.

Minnesota Statutes 2018, section 353.29, subdivision 1, is amended to read:

Subdivision 1.

Age and allowable service requirements.

Upon termination of
deleted text begin membership deleted text end new text begin public service new text end , a deleted text begin person deleted text end new text begin member new text end who has attained normal retirement age and
who is vested under section 353.01, subdivision 47, is entitled upon application to a
retirement annuity. The retirement annuity is known as the "normal" retirement annuity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 353.29, subdivision 7, is amended to read:

Subd. 7.

Annuity starting date.

(a) Except as specified in paragraph (b), a retirement
annuity granted under this chapter begins on the first day of the first calendar month after
the date of termination of public service or up to deleted text begin six deleted text end new text begin five new text end months before the first of the month
in which a complete application is received by the executive director under subdivision 4,
whichever is later. The annuity must be paid in equal monthly installments deleted text begin , unless suspended
or reduced under section 353.37 deleted text end . Annuity payments shall not be paid beyond the end of the
month in which entitlement to the annuity has terminated.

(b) An annuity granted to an elected public official may begin on the day following the
expiration of the public office that qualified the elected official for membership under section
353.01, subdivision 2a or 2d, if a complete application is received by the executive director
under subdivision 4 within six months of the date of termination of public service. The
annuity for the month during which the expiration occurred is prorated accordingly.

(c) An annuity, once granted, must not be increased, decreased, or revoked except under
this chapter.

(d) If an annuitant dies before negotiating the check for the month in which death occurs,
payment must first be made to the surviving spouse, or if none, then to the designated
beneficiary, or if none, lastly to the estate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 5.

Minnesota Statutes 2018, section 353.30, subdivision 3c, is amended to read:

Subd. 3c.

Effective date of bounce-back annuity.

In the event of the death of the
designated optional annuity beneficiary before the retired employee or disabilitant, the
restoration of the normal single life annuity under subdivision 3a or 3b will take effect on
the first of the month following the date of death of the designated optional annuity
beneficiary or deleted text begin on deleted text end new text begin up to five months before new text end the first of the month deleted text begin following six months before deleted text end
new text begin in which new text end satisfactory verification of the death is established by the executive director,
whichever date is later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 6.

Minnesota Statutes 2018, section 353.31, subdivision 8, is amended to read:

Subd. 8.

Accrual of benefits.

All benefits under this section and survivor benefits
otherwise provided in this chapter when payable to persons qualifying therefor shall accrue
on the deleted text begin first day following the deleted text end new text begin date of new text end death of a deleted text begin "basic member" deleted text end new text begin basic member new text end or the first
day of the month following the death of an annuitant or disabilitant. No payment may be
made retroactively deleted text begin for deleted text end more than deleted text begin 12 deleted text end new text begin five new text end months deleted text begin prior to that deleted text end new text begin before the first of the new text end month
in which deleted text begin the deleted text end new text begin a complete new text end application is deleted text begin filed deleted text end new text begin received by the executive director new text end , and no benefit
shall accrue beyond the end of the month in which entitlement to such benefits has terminated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 7.

Minnesota Statutes 2018, section 353.32, subdivision 4, is amended to read:

Subd. 4.

Lack, or death, of beneficiary.

If a member or former member dies without
having designated a beneficiary or if the beneficiary should die before making application
for refund, and if there is no surviving spouse, and if the legal representative of such member
or former member does not apply for refund within five years from the date of death of the
member or former member, the accumulated deductions to the member or former member's
credit at the time of death shall be disposed of in the manner provided in section deleted text begin 356.631 deleted text end new text begin
356.65, unless subdivision 5 applies new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 8.

Minnesota Statutes 2019 Supplement, section 353.34, subdivision 3, is amended
to read:

Subd. 3.

Deferred annuity; eligibility; computation.

(a) A member who is vested
under section 353.01, subdivision 47, when termination of public service or termination of
membership occurs has the option of leaving the new text begin member's new text end accumulated deductions in the
fund and being entitled to a deferred retirement annuity commencing at normal retirement
age or to a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c,
or 5.

(b) The deferred annuity must be computed under section 353.29, subdivision 3, on the
basis of the law in effect on the date of termination of public service or termination of
membership, whichever is deleted text begin earlier deleted text end new text begin later new text end , and new text begin , if the later of termination of public service or
termination of membership is on or before December 31, 2011, the deferred annuity new text end must
be augmented as provided in deleted text begin paragraph deleted text end new text begin paragraphs new text end (c) new text begin to (e) new text end .

(c) The deferred annuity of any former member must be augmented from the first day
of the month following the termination of active service, or July 1, 1971, whichever is later,
to the effective date of retirement new text begin or, if earlier, December 31, 2018 new text end .

(d) For a person who became a public employee before July 1, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:

(1) five percent until January 1, 1981;

(2) three percent from January 1, 1981, until January 1 of the year following the year in
which the former member attains age 55 or December 31, 2011, whichever is earlier;

(3) five percent from January 1 of the year following the year in which the former member
attains age 55, or December 31, 2011, whichever is earlier;

(4) one percent from January 1, 2012, until December 31, 2018; and

(5) after December 31, 2018, the deferred annuity must not be augmented.

(e) For a person who became a public employee after June 30, 2006, and who has a
termination of public service before January 1, 2012, the deferred annuity must be augmented
at the following rate or rates, compounded annually:

(1) 2.5 percent until December 31, 2011;

(2) one percent from January 1, 2012, until December 31, 2018; and

(3) after December 31, 2018, the deferred annuity must not be augmented.

(f) For a person who has a termination of public service after December 31, 2011, the
deferred annuity must not be augmented.

(g) The retirement annuity or disability benefit of, or the survivor benefit payable on
behalf of, a former member who terminated service before July 1, 1997, or the survivor
benefit payable on behalf of a basic or police and fire member who was receiving disability
benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased
on an actuarial equivalent basis to reflect the change in the investment return actuarial
assumption under section 356.215, subdivision 8, from five percent to six percent under a
calculation procedure and tables adopted by the board and approved by the actuary retained
under section 356.214.

(h) A former member qualified to apply for a deferred retirement annuity may revoke
this option at any time before the commencement of deferred annuity payments by making
application for a refund. The person is entitled to a refund of accumulated member
contributions within 30 days following date of receipt of the application by the executive
director.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 9.

Minnesota Statutes 2019 Supplement, section 353.371, subdivision 1, is amended
to read:

Subdivision 1.

Eligibility.

deleted text begin (a) deleted text end This section applies to a basic or coordinated member of
the general employees retirement plan of the Public Employees Retirement Association
who:

(1) for at least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered by the
general employees retirement plan of the Public Employees Retirement Association not
including positions that are elected offices;

(2) deleted text begin terminates deleted text end new text begin has a termination of new text end membership as defined under section 353.01,
subdivision 11b;

(3) at the time of termination under clause (2), was at least age 62 and met the age and
service requirements necessary to receive a retirement annuity from the plan and satisfied
requirements for the commencement of the retirement annuity in the month following
termination;

(4) accepts a phased retirement agreement to continue employment new text begin in the same position
new text end with the same governmental subdivision deleted text begin , working deleted text end new text begin that the member held before the date of
the member's termination of membership and to work new text end a reduced schedule that is both:

(i) a reduction of at least 25 percent from the employee's number of previously regularly
scheduled work hours new text begin per pay period new text end ; and

(ii) 1,044 hours new text begin per year new text end or less in public service; and

(5) is not eligible for participation in the state employee postretirement option program
under section 43A.346.

deleted text begin (b) For purposes of this section, the length of separation requirement and termination
of public service requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicable except as specified in subdivision 7, paragraph
(a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 10.

Minnesota Statutes 2019 Supplement, section 353.371, subdivision 2, is amended
to read:

Subd. 2.

new text begin Termination and new text end annuity reduction new text begin requirements new text end not
applicable.

new text begin Notwithstanding sections 353.29 and 353.30, an employee covered by a phased
retirement agreement need not have a termination of public service to be eligible for a
retirement annuity. new text end The provisions of section 353.37 governing annuities of reemployed
annuitants do not apply to employment under a phased retirement agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 11.

Minnesota Statutes 2019 Supplement, section 353.371, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Termination upon excess hours worked. new text end

new text begin If an employee works more hours
under a phased retirement agreement than is permitted under subdivision 1, paragraph (a),
clause (4), then, effective on the first of the month following the date on which the permitted
number of hours was exceeded:
new text end

new text begin (1) the phased retirement agreement is terminated; and
new text end

new text begin (2) the employee's retirement annuity is suspended until the employee meets the
termination and length of service requirement in section 353.01, subdivisions 11a and 28.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 12.

Minnesota Statutes 2018, section 353.651, subdivision 1, is amended to read:

Subdivision 1.

Age and allowable service requirements.

Upon separation from public
service, any police officer or firefighter member, other than a firefighter covered by section
353.6511, or a police officer covered by section 353.6512, who has attained the age of at
least 55 years and who is new text begin partially or totally new text end vested under section 353.01, subdivision 47,
is entitled upon application to a retirement annuity, known as the deleted text begin "normal" deleted text end new text begin normal new text end retirement
annuity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 13.

Minnesota Statutes 2018, section 353.656, subdivision 1, is amended to read:

Subdivision 1.

Duty disability; computation of benefits.

(a) A member of the police
and fire plan, other than a firefighter covered by section 353.6511, or a police officer covered
by section 353.6512, who is determined to qualify for duty disability as defined in section
353.01, subdivision 41, is entitled to receive disability benefits during the period of such
disability in an amount equal to 60 percent of the average salary as defined in section 353.01,
subdivision 17a, plus an additional 3.0 percent of that average salary for each year of service
in excess of 20 years.

(b) To be eligible for a benefit under paragraph (a), the member must have:

(1) not met the new text begin age and vesting new text end requirements for a retirement annuity under section
353.651, subdivision 1; or

(2) met the new text begin age and vesting new text end requirements under that subdivision, but does not have at
least 20 years of allowable service credit.

(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and at the end of that period is subject
to provisions of subdivision 5a.

(d) If the disability under this subdivision occurs before the member has at least five
years of allowable service credit in the police and fire plan, the disability benefit must be
computed on the average salary from which deductions were made for contribution to the
police and fire fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020.
new text end

Sec. 14.

Minnesota Statutes 2018, section 353.656, subdivision 3, is amended to read:

Subd. 3.

Regular disability benefit.

(a) A member of the police and fire plan, other
than a firefighter covered by section 353.6511, or a police officer covered by section
353.6512, who qualifies for a regular disability benefit as defined in section 353.01,
subdivision 46, is entitled to receive a disability benefit, after filing a valid application, in
an amount equal to 45 percent of the average salary as defined in section 353.01, subdivision
17a.

(b) To be eligible for a benefit under paragraph (a), the member must have at least one
year of allowable service credit and have:

(1) not met the new text begin age and vesting new text end requirements for a retirement annuity under section
353.651, subdivision 1, or

(2) met the new text begin age and vesting new text end requirements under that subdivision, but does not have at
least 15 years of allowable service credit.

(c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a period
of 60 months from the disability benefit accrual date and, at the end of that period, is subject
to provisions of subdivision 5a.

(d) For a member who is employed as a full-time firefighter by the Department of Military
Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs
Department firefighter credited by the Minnesota State Retirement System may be used in
meeting the minimum allowable service requirement of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020.
new text end

Sec. 15.

Minnesota Statutes 2018, section 353.657, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) In the event that a member of the police and fire fund,
other than a firefighter covered by section 353.6511, or a police officer covered by section
353.6512, dies from any cause before retirement or before deleted text begin becoming disabled and deleted text end receiving
disability benefits, the association shall grant survivor benefits to a surviving spouse, as
defined in section 353.01, subdivision 20, and to a dependent child or children, as defined
in section 353.01, subdivision 15, except that if the death is not a line of duty death, the
member must be new text begin partially or totally new text end vested under section 353.01, subdivision 47.

(b) Notwithstanding the definition of surviving spouse, a former spouse of the member,
if any, is entitled to a portion of the monthly surviving spouse benefit if stipulated under
the terms of a marriage dissolution decree filed with the association. If there is no surviving
spouse or child or children, a former spouse may be entitled to a lump-sum refund payment
under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not
a monthly surviving spouse benefit despite the terms of a marriage dissolution decree filed
with the association.

(c) The spouse and new text begin dependent new text end child or children are entitled to monthly benefits as
provided in subdivisions 2 to 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

Sec. 16. new text begin POLICE AND FIRE PLAN; RETROACTIVE CLARIFICATION
RELATING TO DURATION OF A DISABILITY BENEFIT.
new text end

new text begin Minnesota Statutes, section 353.656, subdivision 1, paragraph (c), shall be read as "(c)
The disability benefit must be paid for a period of 60 months from the disability benefit
accrual date and at the end of that period is subject to provisions of subdivision 5a."
new text end

new text begin EFFECTIVE DATE; EXPIRATION. new text end

new text begin This section is effective retroactively from July
1, 2007, and expires December 31, 2019.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 353.30, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end

APPENDIX

Repealed Minnesota Statutes: 20-7553

353.30 ANNUITIES UPON RETIREMENT.

Subd. 4.

Reduction in monthly payments.

Monthly payments to which any person may be entitled under this chapter may be reduced upon application to the association, provided that the person shall first relinquish in writing all claim to that part of the full monthly payment which is the difference between the monthly payment which that person would be otherwise entitled to receive and the monthly payment which that person will receive. The reduced monthly payment shall be payment in full of all amounts due under this chapter for the month for which the payment is made and acceptance of the reduced monthly payment releases the retirement association from all obligation to pay to the person the difference between the amount of the reduced monthly payment and the full amount of the monthly payment which the person would otherwise have received. Upon application of the person who is entitled to such monthly payment, it may be increased prospectively to not more than the amount to which the person would have been entitled had no portion thereof been waived.