SF 84

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; adding definitions for disability for police and fire
fund and local government correctional retirement plan members; modifying
disability and survivor benefits; amending Minnesota Statutes 2006, sections
353.01, subdivision 37, by adding subdivisions; 353.651, subdivision 4;
353.656, subdivisions 1, 1a, 3, 4, 5a, 6a, 10, by adding a subdivision; 353.657,
subdivisions 1, 2, 2a, 3; 353E.06, subdivisions 1, 2; proposing coding for new
law in Minnesota Statutes, chapter 353E.

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

Section 1.

Minnesota Statutes 2006, section 353.01, subdivision 37, is amended to read:

Subd. 37.

Normal retirement age.

new text begin (a) new text end "Normal retirement age" means age 65
for a person who first became a public employee or a member of a pension fund listed
in section 356.30, subdivision 3, new text begin clause (7), new text end before July 1, 1989. For a person who first
becomes a public employee after June 30, 1989, "normal retirement age" means the higher
of age 65 or "retirement age," as defined in United States Code, title 42, section 416(l), as
amended, but not to exceed age 66.

new text begin (b) "Normal retirement age" means age 55 for a person who is a member of a
pension fund listed in section 356.30, subdivision 3, clauses (8) and (9).
new text end

Sec. 2.

Minnesota Statutes 2006, section 353.01, is amended by adding a subdivision
to read:

new text begin Subd. 41. new text end

new text begin Occupational disability. new text end

new text begin "Occupational disability," for purposes of
determining eligibility for disability benefits, means a disabling condition that is expected
to prevent a member, for a period of not less than 12 months, from performing the normal
duties of the position held by a person who is a member of the public employees police
and fire fund. Occupational disability benefits are awarded as:
new text end

new text begin (1) duty disability, physical or psychological, which means a disabling condition
that is the direct result of an injury incurred during, or a disease arising out of, the
performance of normal duties or the actual performance of less frequent duties, either of
which are specific to protecting the property and personal safety of others and that present
inherent dangers that are specific to the positions covered by the public employees police
and fire plan; or
new text end

new text begin (2) regular disability, physical or psychological, which means a disabling condition
resulting from a disease or an injury that arises from any activities while not at work or
while at work from performing those normal or less frequent duties that do not present
inherent dangers that are specific to the occupations covered by the public employees
police and fire plan.
new text end

Sec. 3.

Minnesota Statutes 2006, section 353.01, is amended by adding a subdivision
to read:

new text begin Subd. 42. new text end

new text begin Normal duties. new text end

new text begin "Normal duties" means specific tasks designated in the
applicant's job description and which the applicant performs on a day-to-day basis, but
do not include less frequent duties which may be requested to be done by the employer
from time to time.
new text end

Sec. 4.

Minnesota Statutes 2006, section 353.01, is amended by adding a subdivision
to read:

new text begin Subd. 43. new text end

new text begin Less frequent duties. new text end

new text begin "Less frequent duties" means tasks designated in
the applicant's job description as either required from time to time or as assigned, but
which are not carried out as part of the normal routine of the applicant's job.
new text end

Sec. 5.

Minnesota Statutes 2006, section 353.651, subdivision 4, is amended to read:

Subd. 4.

Early retirement.

new text begin (a) Upon termination of public service, new text end any police
deleted text begin officer or firefighter deleted text end new text begin and fire plan new text end member who deleted text begin has become deleted text end new text begin was an active member of the
plan on June 30, 2007, and has continuous service thereafter, upon attaining new text end at least 50
years deleted text begin old and who has deleted text end new text begin of age with new text end at least three years of allowable service is entitled
upon application to a retirement annuity equal to the normal annuity calculated under
subdivision 3, reduced by one-tenth of one percent for each month that the member is
under age 55 at the time of retirement.

new text begin (b) Any police and fire plan member who was newly enrolled or reinstated as a
member of the plan after June 30, 2007, who is at least 50 years of age with at least three
years of allowable service, upon termination of public service is entitled upon application
to a retirement annuity equal to the normal annuity calculated under subdivision 3,
reduced by two-tenths of one percent for each month that the member is under age 55
at the time of retirement.
new text end

Sec. 6.

Minnesota Statutes 2006, section 353.656, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin In line of deleted text end Duty new text begin disability new text end ; computation of benefits.

deleted text begin (a) deleted text end A member
of the police and fire plan who:

(1) has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, or

(2) has met the requirements for a retirement annuity under section 353.651,
subdivision 1, but who does not have 20 years of credited service; and who deleted text begin becomes
disabled and physically unfit to perform duties as a police officer, firefighter, or paramedic
as defined under section 353.64, subdivision 10, as a direct result of an injury, sickness,
or other disability incurred in or arising out of any act of duty, which has or is expected
to render the member physically or mentally unable to perform the duties as a police
officer, firefighter, or paramedic as defined under section 353.64, subdivision 10, for
a period of at least one year, deleted text end new text begin is determined to qualify for duty disability as defined in
section 353.01, subdivision 41, clause (1), new text end shall receive disability benefits during the
period of such disability deleted text begin .
deleted text end

deleted text begin (b) The benefits must be deleted text end in an amount equal to 60 percent of the "average salary" as
defined in section 353.01, subdivision 17a deleted text begin , plus an additional percent specified in section
356.315, subdivision 6, of that average salary for each year of service in excess of 20
years deleted text end . If the disability under this subdivision new text begin : new text end

new text begin (i) is payable based upon this clause, the disability benefit must be paid for a period
of 60 months from the effective date and at the end of that period is subject to the
provisions of subdivision 5a; and
new text end

new text begin (ii) new text end 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.

Sec. 7.

Minnesota Statutes 2006, section 353.656, subdivision 1a, is amended to read:

Subd. 1a.

Optional annuity election.

A disabled member of the police and fire
fund may elect to receive the normal disability benefit or an optional annuity as provided
in section 353.30, subdivision 3. The election of an optional annuity may be made prior to
commencement of payment of the disability benefit deleted text begin or as specified under subdivision 6a deleted text end .
new text begin If an election is made upon application for a disability benefit, new text end the optional annuity shall
begin to accrue on the same date as provided for the disability benefit deleted text begin . deleted text end new text begin : new text end

new text begin (i) if an election of an optional annuity is not made prior to payment of the disability
benefit, the disabled member can elect an optional annuity 90 days prior to attaining
normal retirement age;
new text end

new text begin (ii) if electing to convert to a retirement annuity prior to normal retirement age, upon
application to convert to an early retirement annuity payment; or
new text end

new text begin (iii) if the disability benefit is paid based on the member not having accrued 20
years of credited service at normal retirement age, 90 days prior to the expiration of the
60-month period for which a disability benefit is paid.
new text end

(1) If the person who is not the spouse of the member is named as beneficiary of
the joint and survivor optional annuity, the person is eligible to receive the annuity only
if the spouse, on the disability application form prescribed by the executive director,
permanently waives the surviving spouse benefits under section 353.657, deleted text begin subdivisions deleted text end new text begin
subdivision new text end deleted text begin 2 and deleted text end 2a. If the spouse of the member refuses to permanently waive the
surviving spouse coverage, the selection of a person other than the spouse of the member
as a joint annuitant is invalid.

(2) If the spouse of the member permanently waives survivor coverage, the
dependent child or children, if any, continue to be eligible for survivor benefits, including
the minimum benefit under section 353.657, subdivision 3. The designated optional
annuity beneficiary may draw the monthly benefit; however, the amount payable to the
dependent child or children and joint annuitant must not exceed the 70 percent maximum
family benefit under section 353.657, subdivision 3. If the maximum is exceeded, the
benefit of the joint annuitant must be reduced to the amount necessary so that the total
family benefit does not exceed the 70 percent maximum family benefit amount.

(3) If the spouse is named as the beneficiary of the joint and survivor optional
annuity, the spouse may draw the monthly benefit; however, the amount payable to
the dependent child or children and the joint annuitant must not exceed the 70 percent
maximum family benefit under section 353.657, subdivision 3. If the maximum is
exceeded, each dependent child will receive ten percent of the member's specified average
monthly salary, and the benefit to the joint annuitant must be reduced to the amount
necessary so that the total family benefit does not exceed the 70 percent maximum family
benefit amount. The joint and survivor optional annuity must be restored to the surviving
spouse, plus applicable postretirement adjustments under section 356.41, as the dependent
child or children become no longer dependent under section 353.01, subdivision 15.

Sec. 8.

Minnesota Statutes 2006, section 353.656, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Nonduty deleted text end new text begin Regular new text end disability benefit.

deleted text begin (a) deleted text end Any member of the police and
fire plan who new text begin has at least one year of allowable service credit and who new text end :

(1) has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, or

(2) has met the requirements for a retirement annuity under section 353.651,
subdivision 1, but who does not have 15 years of credited service; and who deleted text begin becomes
disabled after not less than one year of allowable service because of sickness or injury
occurring while not on duty as a police officer, firefighter, or paramedic as defined under
section 353.64, subdivision 10, and by reason of that sickness or injury the member has
been or is expected to be unable to perform the duties as a police officer, firefighter, or
paramedic as defined under section 353.64, subdivision 10, for a period of at least one
year, deleted text end new text begin is determined to qualify for a regular disability benefit as defined in section 353.01,
subdivision 41, clause (2), new text end is entitled to receive a disability benefit new text begin in an amount equal to
45 percent of the "average salary" as defined in section 353.01, subdivision 17a new text end .

deleted text begin (b) deleted text end The benefit must be paid in the same manner as if the benefit were paid under
section 353.651. If a disability under this subdivision new text begin :
new text end

new text begin (i) is payable based upon this clause, the disability benefit must be paid for a period
of 60 months from the effective date and at the end of that period is subject to the
provisions of subdivision 5a; and
new text end

new text begin (ii) new text end occurs deleted text begin after one but in less than 15 deleted text end new text begin before the member has at least five new text end years of
allowable service new text begin credit in the police and fire plan new text end , the disability benefit must be new text begin computed
on new text end the deleted text begin same as though the member had at least 15 years service deleted text end new text begin "average salary" from
which deductions were made for contributions to the police and fire fund new text end . 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.

Sec. 9.

Minnesota Statutes 2006, section 353.656, subdivision 4, is amended to read:

Subd. 4.

Limitation on disability benefit payments.

(a) No member is entitled to
receive a disability benefit payment when there remains to the member's credit unused
annual leave deleted text begin or deleted text end new text begin , new text end sick leave new text begin , or any other employer-provided salary continuation plan, new text end or
under any other circumstances when, during the period of disability, there has been no
impairment of the person's salary as a police officer, a firefighter, or a paramedic as defined
in section 353.64, subdivision 10, whichever applies.

(b) If a disabled member resumes a gainful occupation with earnings that, when
added to the normal disability benefit, and workers' compensation benefit if applicable,
exceed the disabilitant reemployment earnings limit, the amount of the disability benefit
must be reduced as provided in this paragraph. The disabilitant reemployment earnings
limit is the greater of:

(1) the salary earned at the date of disability; or

(2) 125 percent of the base salary currently paid by the employing governmental
subdivision for similar positions.

The disability benefit must be reduced by one dollar for each three dollars by which
the total amount of the current disability benefit, any workers' compensation benefits if
applicable, and actual earnings exceed the greater disabilitant reemployment earnings
limit. In no event may the disability benefit as adjusted under this subdivision exceed
the disability benefit originally allowed.

Sec. 10.

Minnesota Statutes 2006, section 353.656, subdivision 5a, is amended to read:

Subd. 5a.

Cessation of disability benefit.

new text begin (a) new text end The association shall cease the
payment of deleted text begin an in-line-of-duty or nonduty deleted text end new text begin any new text end disability benefit the first of the month
following the reinstatement of a member to full time or less than full-time service in a
position covered by the police and fire fund.

new text begin (b) A disability benefit paid to a disabled member of the police and fire fund
terminates at the end of the month in which the member:
new text end

new text begin (1) reaches normal retirement age;
new text end

new text begin (2) if the disability benefit is payable for a 60-month period as determined under
subdivisions 1 and 3, as applicable, the first of the month following the expiration of
the 60-month period; or
new text end

new text begin (3) if the disabled member so chooses, the end of the month in which the member
has elected to convert to an early retirement annuity under section 353.651, subdivision 4.
new text end

new text begin If the police and fire fund member is still disabled when the benefit being paid ceases
under this subdivision, the member is deemed to be retired and, if the member had elected
an optional annuity under subdivision 1a, must receive an annuity in accordance with the
terms of the optional annuity previously elected. If the member had not elected an optional
annuity under subdivision 1a, the member may elect to receive a normal retirement
annuity under section 353.651, or to receive an optional annuity as provided in section
353.30, subdivision 3, based on the same length of service as used in the calculation of the
disability benefit or the member's actual years of accrued service and the laws in effect at
the time the disability benefit payments first began to accrue, whichever is greater.
new text end

new text begin (c) A member of the police and fire fund who is receiving a disability benefit under
this section may, upon application, elect to receive an early retirement annuity under
section 353.651, subdivision 4, at any time after attaining age 50, but must convert to a
retirement annuity no later than the end of the month in which the disabled member attains
normal retirement age. An early retirement annuity elected under this subdivision must be
calculated on the disabled member's accrued years of service and average salary as defined
in section 353.01, subdivision 17a, and when elected, the member is deemed to be retired.
new text end

new text begin (d) When a disabled member's benefit is recalculated as a retirement annuity under
this section, any postretirement percentage increases provided under section 11A.18 that
were added to the disability benefit previously paid must be included in the computation
of the retirement annuity payable using the member's accrued years of service and average
salary as defined in section 353.01, subdivision 17a.
new text end

Sec. 11.

Minnesota Statutes 2006, section 353.656, subdivision 6a, is amended to read:

Subd. 6a.

Disability survivor benefits.

If a member who is receiving a disability
benefit deleted text begin under subdivision 1 or 3 deleted text end new text begin that was granted under the laws in effect before July
1, 2007 new text end :

(1) dies before attaining deleted text begin the deleted text end new text begin normal retirement new text end age deleted text begin required for receipt of a
retirement annuity under section 353.651, subdivision 1 deleted text end new text begin as defined under section 353.01,
subdivision 37, paragraph (b) new text end , or within five years of the effective date of the disability,
whichever is later, the surviving spouse shall receive a survivor benefit under section
353.657, subdivision 2 new text begin , paragraph (a), clause (2); new text end or 2a, unless the surviving spouse
elected to receive a refund under section 353.32, subdivision 1. The joint and survivor
optional annuity under subdivision 2a is based on the minimum disability benefit under
subdivision 1 or 3, or the deceased member's allowable service, whichever is greater;

(2) is living at the age required for receipt of a retirement annuity under section
353.651, subdivision 1, or five years after the effective date of the disability, whichever
is later, the member may continue to receive a normal disability benefit, or the member
may elect a joint and survivor optional annuity under section 353.30. The optional annuity
is based on the minimum disability benefit under subdivision 1 or 3, or the member's
allowable service, whichever is greater. The election of this joint and survivor annuity
must occur within 90 days deleted text begin of the deleted text end new text begin prior to attaining normal retirement new text end age deleted text begin required for
receipt of a retirement annuity under section 353.651, subdivision 1 deleted text end new text begin as defined under
section 353.01, subdivision 37, paragraph (b) new text end , or the five-year anniversary of the effective
date of the disability benefit, whichever is later. The optional annuity takes effect the first
of the month following the month in which the person attains the age required for receipt
of a retirement annuity under section 353.651, subdivision 1, or reaches the five-year
anniversary of the effective date of the disability benefit, whichever is later; or

(3) has a dependent child or children under clause (1) or (2), the association shall
grant a dependent child benefit under section 353.657, subdivision 3.

Sec. 12.

Minnesota Statutes 2006, section 353.656, subdivision 10, is amended to read:

Subd. 10.

Accrual of benefits.

(a) A disability benefit begins to accrue deleted text begin the day
following the commencement of disability, deleted text end new text begin when the applicant is no longer receiving any
form of compensation, whether salary or paid leave new text end 90 days preceding the filing of an
application deleted text begin , deleted text end new text begin ; new text end or, if annual or sick leave new text begin , or any other employer-paid salary continuation
plan new text end is paid for more than the 90-day period, from the date on which the payment of salary
ceased, whichever is later. new text begin No member is entitled to receive a disability benefit payment
when there remains to the member's credit any unused annual leave, sick leave, or any
other employer-paid salary continuation benefit, or under any other circumstances when,
during the period of disability, there has been no impairment of the person's salary.
new text end

(b) Payment of the disability benefit must not continue beyond the end of the month
in which entitlement has terminated. If the disabilitant dies prior to negotiating the check
for the month in which death occurs, payment must be made to the surviving spouse or, if
none, to the designated beneficiary or, if none, to the estate.

Sec. 13.

Minnesota Statutes 2006, section 353.656, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Chemical dependency limitations to disability benefit eligibility. new text end

new text begin No
benefits shall be payable for any disability resulting in whole or in part from the member's
current use of illegal drugs. This exclusion does not apply to a member who:
new text end

new text begin (1) has successfully completed a supervised drug rehabilitation program or has
otherwise been rehabilitated successfully and is no longer engaging in such use; or
new text end

new text begin (2) is participating in a supervised rehabilitation program and is no longer engaging
in such use.
new text end

new text begin "Illegal use of drugs" means the use of drugs, the possession or distribution of which
is unlawful under United States Code, title 21, section 801. "Illegal use of drugs" does not
include the use of a drug taken under the supervision of a licensed health care professional,
or other uses authorized by United States Code, title 21, or other provisions of law.
new text end

Sec. 14.

Minnesota Statutes 2006, section 353.657, subdivision 1, is amended to read:

Subdivision 1.

Generally.

In the event a member of the police and fire fund
dies from any cause before retirement or deleted text begin after deleted text end new text begin before new text end becoming disabled and receiving
disability benefits, the association shall grant survivor benefits to a surviving spouse, as
defined in section 353.01, subdivision 20, deleted text begin and who was married to the member for a
period of at least one year, except that deleted text end new text begin and to a dependent child or children, as defined in
section 353.01, subdivision 15, as follows: new text end

new text begin (1) new text end if death occurs in the line of duty new text begin , new text end no time limit is required new text begin ; and
new text end

new text begin (2) if death occurs while not on duty, the member must have accrued at least three
years of credited service new text end .

deleted text begin For purposes of this section, line of duty also includes active military service, as
defined in section 190.05, subdivision 5. The association shall also grant survivor benefits
to a dependent child or children, as defined in section 353.01, subdivision 15.
deleted text end

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.

The spouse and child or children are entitled to monthly benefits as provided in
deleted text begin the following deleted text end subdivisions new text begin 2 to 4 new text end .

Sec. 15.

Minnesota Statutes 2006, section 353.657, subdivision 2, is amended to read:

Subd. 2.

Benefit amount.

new text begin (a) new text end The spouse deleted text begin , for life, deleted text end new text begin of a member new text end shall receive a
monthly benefit new text begin for life new text end equal to deleted text begin 50 percent deleted text end new text begin the following percentage new text end of the member's
average full-time monthly salary rate as a new text begin member of the new text end police deleted text begin officer or firefighter deleted text end
new text begin and fire fund new text end in effect over the last six months of allowable service preceding the month
in which death occurred deleted text begin . deleted text end new text begin :
new text end

new text begin (1) if the death occurred in the line of duty, 60 percent of the stated average salary
is payable; and
new text end

new text begin (2) if the death occurred while not on duty or while receiving disability benefits that
accrued prior to July 1, 2007, 50 percent of the stated average salary is payable.
new text end

new text begin (b) new text end If the member was a part-time new text begin employee in the position for which the employee
qualified for participation in the new text end police deleted text begin officer or firefighter deleted text end new text begin and fire fund new text end , the monthly
survivor benefit is based on the salary rate in effect for that member's part-time service
during the last six months of allowable service. If the member's status changed from full
time to part time for health reasons during the last year of employment, the monthly
survivor benefit is based on the full-time salary rate of deleted text begin a deleted text end new text begin the position held as a member of
the new text end police deleted text begin officer or firefighter deleted text end new text begin and fire fund new text end in effect over the last six months of allowable
service preceding the month in which the death occurred.

Sec. 16.

Minnesota Statutes 2006, section 353.657, subdivision 2a, is amended to read:

Subd. 2a.

Death while eligible survivor benefit.

new text begin (a) new text end If a member or former
member who has attained the age of at least 50 years and has credit for not less than
three years allowable service or who has credit for at least 30 years of allowable service,
regardless of age attained, dies before the annuity or disability benefit becomes payable,
notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
elect to receive a death while eligible survivor benefit.

new text begin (b) new text end Notwithstanding the definition of surviving spouse in section 353.01, subdivision
20, a former spouse of the member, if any, is entitled to a portion of the death while
eligible survivor 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 death while eligible survivor
benefit despite the terms of a marriage dissolution decree filed with the association.

new text begin (c) new text end The benefit may be elected instead of a refund with interest under section 353.32,
subdivision 1, or surviving spouse benefits otherwise payable under subdivisions 1 and
2. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
which the member could have qualified for on the date of death, computed as provided in
sections 353.651, subdivisions 2 and 3, and 353.30, subdivision 3.

new text begin (d) new text end If there is a dependent child or children, and the 100 percent joint and survivor
optional annuity for the surviving spouse, when added to the benefit of the dependent child
or children under subdivision 3, exceeds an amount equal to new text begin : new text end

new text begin (1) 80 percent of the member's average specified monthly salary, if death is
duty-related; or
new text end

new text begin (2) new text end 70 percent of the member's specified average monthly salary, new text begin if death is not
duty-related or occurred while receiving disability benefits which accrued before July 1,
2007, new text end the 100 percent joint and survivor annuity must be reduced by the amount necessary
so that the total family benefit does not exceed the deleted text begin 70 percent deleted text end maximum family benefit
amount under subdivision 3 new text begin , as applicable new text end .

new text begin (e) new text end The 100 percent joint and survivor optional annuity must be restored to the
surviving spouse, plus applicable postretirement fund adjustments under section 356.41,
as the dependent child or children become no longer dependent under section 353.01,
subdivision 15.

new text begin (f) new text end The surviving spouse may apply for the annuity at any time after the date on
which the deceased employee would have attained the required age for retirement based on
the employee's allowable service. Sections 353.34, subdivision 3, and 353.71, subdivision
2, apply to a deferred annuity payable under this subdivision.

new text begin (g) new text end No payment shall accrue beyond the end of the month in which entitlement to
such annuity has terminated. An amount equal to the excess, if any, of the accumulated
contributions which were credited to the account of the deceased employee over and
above the total of the annuities paid and payable to the surviving spouse must be paid to
the deceased member's last designated beneficiary or, if none, to the legal representative of
the estate of such deceased member.

new text begin (h) new text end Any member may request in writing that this subdivision not apply and that
payment be made only to the designated beneficiary, as otherwise provided by this chapter.

new text begin (i) new text end 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.

Sec. 17.

Minnesota Statutes 2006, section 353.657, subdivision 3, is amended to read:

Subd. 3.

Dependent children.

A dependent child, as defined in section 353.01,
subdivision 15, shall receive a monthly benefit equal to ten percent of the member's
average full-time monthly salary rate as a new text begin member of the new text end police deleted text begin officer or firefighter deleted text end new text begin and
fire fund new text end in effect over the last six months of allowable service preceding the month in
which death occurred. Payments for the benefit of a dependent child must be made to the
surviving parent, or to the legal guardian of the child or to any adult person with whom the
child may at the time be living, provided only that the parent or other person to whom
any amount is to be paid advises the board in writing that the amount will be held or used
in trust for the benefit of the child. The maximum monthly benefit for one family must
not exceed an amount equal to new text begin : new text end

new text begin (1) 80 percent if the member's death is duty-related; or
new text end

new text begin (2) new text end 70 percent new text begin , if the member's death is not duty-related or occurred while the
member was receiving a disability benefit that accrued before July 1, 2007, new text end of the
member's specified average monthly salary, and the minimum benefit per family, including
the joint and survivor optional annuity under subdivision 2a, and section 353.656,
subdivision 1a, must not be less than new text begin 60 percent if the death is duty-related or new text end 50 percent new text begin
if the death is not duty-related or occurred while the member was receiving a disability
benefit that accrued before July 1, 2007, new text end of the member's specified average monthly salary.

Sec. 18.

new text begin [353E.001] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Occupational disability. new text end

new text begin "Occupational disability," for purposes of
determining eligibility for disability benefits, means a disabling condition that is expected
to prevent a member, for a period of not less than 12 months, from performing the normal
duties of a local government correctional service employee as defined under section
353E.02. Occupational disability benefits are awarded as:
new text end

new text begin (1) duty disability, physical or psychological, which means a disabling condition that
is the direct result of an injury incurred during, or a disease arising out of, the performance
of normal duties or the actual performance of less frequent duties, either of which are
specific to protecting the property and personal safety of others and that present inherent
dangers that are specific to the positions covered by the local government correctional
service retirement plan; or
new text end

new text begin (2) regular disability, physical or psychological, which means a disabling condition
resulting from a disease or an injury that arises from any activities while not at work or
while at work from performing those normal or less frequent duties that do not present
inherent dangers that are specific to the occupations covered by the local government
correctional service retirement plan.
new text end

new text begin Subd. 2. new text end

new text begin Normal duties. new text end

new text begin "Normal duties" means specific tasks designated in the
applicant's job description and which the applicant performs on a day-to-day basis, but
do not include less frequent duties which may be requested to be done by the employer
from time to time.
new text end

new text begin Subd. 3. new text end

new text begin Less frequent duties. new text end

new text begin "Less frequent duties" means tasks designated in the
applicant's job description as either required from time to time or as assigned, but which
are not carried out as part of the normal routine of the applicant's job.
new text end

Sec. 19.

Minnesota Statutes 2006, section 353E.06, subdivision 1, is amended to read:

Subdivision 1.

Duty disability qualification requirements.

A local government
correctional employee who deleted text begin becomes disabled and physically or mentally unfit to perform
the duties of the position as a direct result of an injury, sickness, or other disability that
is medically determinable, that was incurred in or arose out of any act of duty, and that
renders the employee physically or mentally unable to perform the employee's duties deleted text end new text begin is
determined to qualify for a duty disability as defined in section 353E.001, subdivision
1, clause (1) new text end , is entitled to a disability benefit. The disability benefit must be based on
covered service under this chapter only and is an amount equal to 47.5 percent of the
average salary defined in section 353E.04, subdivision 2, plus an additional percent equal
to that specified in section 356.315, subdivision 5a, for each year of covered service
under this chapter in excess of 25 years.

Sec. 20.

Minnesota Statutes 2006, section 353E.06, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Nonduty deleted text end new text begin Regular new text end disability qualification requirements.

A local
government correctional employee who has at least one year of covered service under this
chapter and deleted text begin becomes disabled and physically or mentally unfit to perform the duties of
the position because of sickness or injury that is medically determinable and that occurs
while not engaged in covered employment, deleted text end new text begin who is determined to qualify for a regular
disability benefit as defined in section 353E.001, subdivision 1, clause (2), new text end is entitled to a
disability benefit based on covered service under this chapter. The disability benefit must
be computed in the same manner as an annuity under section 353E.04, subdivision 3, and
as though the employee had at least ten years of covered correctional service.

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 20 are effective July 1, 2007, and apply to a disability applicant whose
last day worked is after June 30, 2007, or any survivor benefit payable based upon the
death of an active member after June 30, 2007.
new text end