SF 2461

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; amending disability benefits eligibility requirements in
the Public Employees Retirement Association police and fire fund; amending
Minnesota Statutes 2004, section 353.656, subdivisions 3, 6a; Minnesota Statutes
2005 Supplement, section 353.656, subdivision 1.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 353.656, subdivision 1,
is amended to read:

Subdivision 1.

In line of duty; computation of benefits.

new text begin (a) new text end A member of the police
and fire plan who new text begin has not met the requirements for a retirement annuity under section
353.651, subdivision 1, and who new text end 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, shall receive disability
benefits during the period of such disability.

new text begin (b) new text end The benefits must be in an amount equal to 60 percent of the "average salary" as
defined in section 353.01, subdivision 17a, 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. 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.

Sec. 2.

Minnesota Statutes 2004, section 353.656, subdivision 3, is amended to read:

Subd. 3.

Nonduty disability benefit.

new text begin (a) new text end Any member of the police and fire
plan who new text begin has not met the requirements for a retirement annuity under section 353.651,
subdivision 1, and who new text end 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, is entitled to receive a disability benefit.

new text begin (b) new 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 occurs after one but in less than 15
years of allowable service, the disability benefit must be the same as though the member
had at least 15 years service. 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. 3.

Minnesota Statutes 2004, section 353.656, subdivision 6a, is amended to read:

Subd. 6a.

Disability survivor benefits.

If a member who is receiving a disability
benefit under subdivision 1 or 3:

(a) dies before attaining new text begin the new text end age deleted text begin 65 deleted text end new text begin required for receipt of a retirement annuity under
section 353.651, subdivision 1, 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 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.

(b) is living at new text begin the new text end age deleted text begin 65 deleted text end new text begin required for receipt of a retirement annuity under section
353.651, subdivision 1, new text end 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 of new text begin the new text end age deleted text begin 65 deleted text end new text begin required for receipt of a retirement annuity under
section 353.651, subdivision 1, 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 new text begin the new text end age deleted text begin 65 deleted text end new text begin required for receipt
of a retirement annuity under section 353.651, subdivision 1, new text end or reaches the five-year
anniversary of the effective date of the disability benefit, whichever is later.

(c) if there is a dependent child or children under paragraph (a) or (b), the association
shall grant a dependent child benefit under section 353.657, subdivision 3.