SF 3219

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; recodifying laws applicable to 
  1.3             the Minneapolis firefighters relief association; 
  1.4             clarifying laws for the administration of the 
  1.5             association; proposing coding for new law as Minnesota 
  1.6             Statutes, chapter 423C; repealing Laws 1907, chapter 
  1.7             24; Laws 1913, chapters 318; and 419; Laws 1917, 
  1.8             chapter 196; Laws 1919, chapters 515; and 523; Laws 
  1.9             1921, chapter 404; Laws 1923, chapter 61; Laws 1945, 
  1.10            chapter 322; Laws 1959, chapters 213; 491; and 568, as 
  1.11            amended; Laws 1961, chapter 109; Laws 1963, chapter 
  1.12            318, as amended; Laws 1967, chapters 819; and 824; 
  1.13            Laws 1969, chapters 123; and 287; Laws 1971, chapter 
  1.14            542; Laws 1975, chapter 57; Laws 1977, chapter 164, 
  1.15            section 2; Laws 1980, chapter 607, article XV, 
  1.16            sections 8, 9, and 10; Laws 1988, chapters 572, 
  1.17            sections 4, 5, and 6; and 574, sections 3, 4, and 5; 
  1.18            Laws 1989, chapter 319, article 19, sections 6 and 7; 
  1.19            Laws 1990, chapter 589, article 1, sections 5 and 6; 
  1.20            Laws 1992, chapters 429; 454, section 2; and 471, 
  1.21            article 2; Laws 1993, chapters 125; and 192, section 
  1.22            32; Laws 1994, chapters 591; and 632, article 3, 
  1.23            section 14; Laws 1996, article 2, section 3; and 
  1.24            article 3, section 1; and Laws 1997, chapter 233, 
  1.25            article 4, sections 13, 14, 15, 16, 17, 18, 19, 20, 
  1.26            21, and 22. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28     Section 1.  [423C.01] [MINNEAPOLIS FIRE DEPARTMENT RELIEF 
  1.29  ASSOCIATION; DEFINITIONS.] 
  1.30     Subdivision 1.  [TERMS.] For purposes of this chapter, 
  1.31  unless the context clearly indicates otherwise, each of the 
  1.32  terms defined in this section has the indicated meaning. 
  1.33     Subd. 2.  [ACTIVE MEMBER.] "Active member" means a person 
  1.34  who was hired and duly appointed by the city of Minneapolis 
  1.35  before June 15, 1980, as a firefighter who is regularly entered 
  1.36  on the payroll of the fire department and who serves on active 
  2.1   duty. 
  2.2      Subd. 3.  [ACTUARIAL EQUIVALENT OR ACTUARIALLY 
  2.3   EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent" 
  2.4   means the condition of one annuity or benefit having an equal 
  2.5   actuarial present value as another annuity or benefit determined 
  2.6   as of a given date at a specified age with each actuarial 
  2.7   present value based on the appropriate mortality table adopted 
  2.8   by the board based on the experience of the fund and approved by 
  2.9   the actuary retained by the legislative commission on pensions 
  2.10  and retirement and using the applicable preretirement or 
  2.11  postretirement interest rate assumptions specified in section 
  2.12  356.216.  
  2.13     Subd. 4.  [AGE.] "Age" means a person's age at the person's 
  2.14  latest birthday. 
  2.15     Subd. 5.  [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 
  2.16  postretirement payment" means the payment of a lump-sum, 
  2.17  postretirement benefit to an eligible member on June 1 following 
  2.18  the determination date in any year. 
  2.19     Subd. 6.  [ASSOCIATION.] "Association" means the 
  2.20  Minneapolis firefighters relief association. 
  2.21     Subd. 7.  [BOARD.] "Board" means the board of trustees of 
  2.22  the association. 
  2.23     Subd. 8.  [DEPENDENT.] "Dependent" means a biological or 
  2.24  adopted child of a deceased active or retired member who is 
  2.25  unmarried and under the age of 18, or age 18 to 22, while the 
  2.26  child is enrolled as a full-time student at an accredited 
  2.27  educational institution approved by the board.  Dependent also 
  2.28  includes a child of an active or retired member conceived during 
  2.29  the active or retired member's lifetime and born after the 
  2.30  active or retired member's death. 
  2.31     Subd. 9.  [DETERMINATION DATE.] "Determination date" means 
  2.32  December 31 of each year. 
  2.33     Subd. 10.  [DISABILITY.] "Disability" means a sickness or 
  2.34  accident causing a member to be disabled from performing 
  2.35  firefighting duties of the fire department. 
  2.36     Subd. 11.  [DISCHARGE.] "Discharge" means a complete 
  3.1   separation from and termination of active service as a member of 
  3.2   the fire department. 
  3.3      Subd. 12.  [ELIGIBLE MEMBER.] "Eligible member" means a 
  3.4   person, including a service pensioner, a disability pensioner, a 
  3.5   survivor or dependent of a deceased active member, service 
  3.6   pensioner, deferred pensioner, or disability pensioner who 
  3.7   received a pension or benefit from the relief association during 
  3.8   the 12 months before the determination date. 
  3.9      Subd. 13.  [EXCESS INVESTMENT INCOME.] "Excess investment 
  3.10  income" means the amount, if any, by which the time weighted 
  3.11  total rate of return earned by the fund in the most recent prior 
  3.12  five fiscal years has exceeded the actual percentage increase in 
  3.13  the current monthly salary of a first grade firefighter in the 
  3.14  most recent fiscal year plus two percent.  The excess investment 
  3.15  income must be expressed as a dollar amount and may not exceed 
  3.16  one percent of the total assets of the fund except when the 
  3.17  actuarial value of assets of the fund, according to the most 
  3.18  recent annual actuarial valuation prepared in accordance with 
  3.19  sections 356.215 and 356.216, is greater than 102 percent of its 
  3.20  actuarial accrued liabilities in which case the amount must not 
  3.21  exceed 1.5 percent of the assets of the fund. 
  3.22     Subd. 14.  [FIRE DEPARTMENT.] "Fire department" means the 
  3.23  city of Minneapolis fire department. 
  3.24     Subd. 15.  [FUND.] "Fund" means the special fund of the 
  3.25  association. 
  3.26     Subd. 16.  [RETIRED MEMBER.] "Retired member" means a 
  3.27  former active member who has terminated active service in the 
  3.28  fire department and who is entitled to receive a pension or 
  3.29  benefit under this chapter, as amended, or any previous law. 
  3.30     Subd. 17.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
  3.31  member" means the person who was the legally married spouse of 
  3.32  the member, who was residing with the decedent, and who was 
  3.33  married while or before the time the decedent was an active 
  3.34  member and was on the payroll of the fire department, and who, 
  3.35  in case the deceased member was a pensioner or deferred 
  3.36  pensioner, was legally married to the member at least one year 
  4.1   before the decedent's termination of active service with the 
  4.2   fire department.  The term does not include the surviving spouse 
  4.3   who has deserted a member or who has not been dependent upon the 
  4.4   member for support, nor does it include the surviving common law 
  4.5   spouse of a member. 
  4.6      Subd. 18.  [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time 
  4.7   weighted total rate of return" means the percentage amount 
  4.8   determined by using the formula or formulas established by the 
  4.9   state board of investment under section 11A.04, clause (11), and 
  4.10  in effect on January 1, 1987. 
  4.11     Subd. 19.  [UNIT.] "Unit" means 1/80 of the maximum monthly 
  4.12  salary of a first grade firefighter on the first day of the 
  4.13  month in which the pension benefits provided by this chapter are 
  4.14  paid. 
  4.15     Sec. 2.  [423C.02] [MINNEAPOLIS FIREFIGHTERS RELIEF 
  4.16  ASSOCIATION AND RETIREMENT FUND.] 
  4.17     Subdivision 1.  [CREATION.] The active and retired members 
  4.18  of the fire department and their surviving spouses shall 
  4.19  maintain the association.  The association shall be duly 
  4.20  incorporated under chapter 317A.  This corporation shall have 
  4.21  perpetual corporate existence. 
  4.22     Subd. 2.  [RELIEF ASSOCIATION.] The association shall 
  4.23  create, maintain, and administer a firefighters fund for the 
  4.24  benefit of its members and their survivors and beneficiaries.  
  4.25  The sources of revenue of the fund are governed by section 
  4.26  423C.06.  The authorized disbursements from the fund are 
  4.27  governed by section 423C.08. 
  4.28     Subd. 3.  [MEMBERSHIP.] All members as defined in section 
  4.29  423C.01 are members of the Minneapolis firefighters relief 
  4.30  association. 
  4.31     Subd. 4.  [MANAGEMENT OF ASSOCIATION AND FUND.] The board 
  4.32  created in section 423C.03 shall manage and control the fund in 
  4.33  accordance with this chapter, other applicable law, the 
  4.34  association's articles of incorporation, and its bylaws. 
  4.35     Sec. 3.  [423C.03] [BOARD OF TRUSTEES OFFICERS; ELECTIONS; 
  4.36  DUTIES; COMPENSATION; BOND.] 
  5.1      Subdivision 1.  [BOARD COMPOSITION AND ELECTIONS.] The 
  5.2   board shall consist of two persons appointed by the city of 
  5.3   Minneapolis and ten other trustees which shall include at least 
  5.4   five retired or surviving spouse members of the association.  
  5.5   Trustees shall serve a term of three years, except as limited in 
  5.6   this subdivision.  In 1999, two trustee positions shall be open 
  5.7   for a two-year term and every three years thereafter.  One 
  5.8   trustee position shall be open for a one-year term and every 
  5.9   three years thereafter and two trustee positions shall be open 
  5.10  for a three-year term and every three years thereafter. 
  5.11     Subd. 2.  [OFFICERS OF RELIEF ASSOCIATION.] The officers of 
  5.12  the association shall consist of a president, one or more 
  5.13  vice-presidents, an executive secretary, a treasurer, an 
  5.14  assistant executive secretary, and an assistant treasurer.  Only 
  5.15  active, retired, or surviving spouse members of the association 
  5.16  are eligible to be an officer.  Officers shall have those duties 
  5.17  and responsibilities as set forth in this chapter, other 
  5.18  applicable law, and the association's bylaws.  Officers shall be 
  5.19  compensated as provided in subdivision 3.  All officers shall be 
  5.20  elected at the annual meeting of the association's board and 
  5.21  shall hold their office for a term of one year or until their 
  5.22  successors are elected and duly qualified. 
  5.23     Subd. 3.  [COMPENSATION OF OFFICERS AND BOARD 
  5.24  MEMBERS.] Notwithstanding any other law to the contrary, the 
  5.25  association may provide for payment of the following salaries to 
  5.26  its officers and trustees: 
  5.27     (1) the executive secretary may receive a salary not 
  5.28  exceeding 30 percent of the maximum salary of a top grade 
  5.29  firefighter; 
  5.30     (2) the president may receive a salary in an amount equal 
  5.31  to ten percent of the maximum salary of a top grade firefighter; 
  5.32  and 
  5.33     (3) other elected members of the board not enumerated in 
  5.34  clause (1) or (2) may receive a salary in an amount equal to 2.5 
  5.35  percent of the maximum salary of a top grade firefighter.  
  5.36     Subd. 4.  [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] The 
  6.1   executive secretary of the association shall furnish a corporate 
  6.2   bond to the association for the faithful performance of duties 
  6.3   in an amount that the association from time to time may 
  6.4   determine.  The treasurer of the association shall furnish a 
  6.5   corporate bond to the association for the faithful performance 
  6.6   of duties in an amount acceptable to the city of Minneapolis.  
  6.7   The association is authorized to and shall pay the premiums on 
  6.8   these bonds from its special fund.  
  6.9      Sec. 4.  [423C.06] [SOURCE OF FUNDS.] 
  6.10     The fund is derived from the following sources: 
  6.11     (1) receipts from the state, including, but not limited to, 
  6.12  all money received pursuant to applicable state amortization and 
  6.13  supplemental amortization aid laws and state fire aid laws; 
  6.14     (2) all money derived from taxation by the municipality for 
  6.15  the support of the association and the payment of pensions; 
  6.16     (3) receipts from private sources, such as gifts, charges, 
  6.17  rents, fundraising project dues paid by members, and all other 
  6.18  sources; 
  6.19     (4) an amount equal to the minimum percentage specified in 
  6.20  section 69.77, subdivision 2a, of the salary of a first grade 
  6.21  firefighter deducted from the monthly salary of each active 
  6.22  member; and 
  6.23     (5) money from the investment of, earnings on, and interest 
  6.24  on the assets of the fund. 
  6.25     Sec. 5.  [423C.08] [AUTHORIZED FUND DISBURSEMENTS.] 
  6.26     The fund may be used only for the payment of: 
  6.27     (1) service, disability, or dependency pensions; 
  6.28     (2) to provide compensation to the executive secretary, 
  6.29  president, and other officers of the association as authorized 
  6.30  by section 423C.03; 
  6.31     (3) the expenses of officers and employees of the 
  6.32  association in connection with the protection of the fund; and 
  6.33     (4) expenses of operating, administering, and maintaining 
  6.34  the association, including those authorized by this chapter, 
  6.35  section 69.80, or other applicable law. 
  6.36     Sec. 6.  [423C.07] [GENERAL FUND.] 
  7.1      The association shall also establish and maintain a general 
  7.2   fund.  This fund is separate and distinct from the association's 
  7.3   special fund.  The city finance officer shall deduct from each 
  7.4   active member's biweekly payroll check a sum equal to one-half 
  7.5   of one percent of the maximum biweekly salary of a first grade 
  7.6   firefighter.  This sum shall be forwarded to the treasurer of 
  7.7   the association and deposited in the general fund.  Money 
  7.8   received from other sources may also be deposited in the general 
  7.9   fund.  Money in the general fund may be expended for those 
  7.10  purposes the board deems appropriate. 
  7.11     Sec. 7.  [423C.10] [PENSIONS; RIGHT TO REDUCE.] 
  7.12     The association shall at all times have the right to reduce 
  7.13  the amount of pensions and benefits paid out of its funds, and 
  7.14  to reduce and otherwise adjust the amounts of the pensions and 
  7.15  benefits to be thereafter paid out of its fund.  Within the 
  7.16  limits prescribed in this chapter, state law, and the federal 
  7.17  and state constitutions, the association shall have and retain 
  7.18  the right to increase or otherwise adjust these pensions and 
  7.19  benefits after the same have been so reduced. 
  7.20     Sec. 8.  [423C.13] [SERVICE PENSION.] 
  7.21     Subdivision 1.  [..........] An active member or deferred 
  7.22  pensioner who has performed duty for the fire department for 
  7.23  five years or more, upon written application after retiring from 
  7.24  duty and reaching at least age 50, is entitled to be paid 
  7.25  monthly for life a service pension equal to eight units. 
  7.26     When the actuarial value of assets of the fund according to 
  7.27  the most recent annual actuarial valuation prepared in 
  7.28  accordance with sections 356.215 and 356.216 is of greater than 
  7.29  92.5 percent of actuarial accrued liabilities, active members, 
  7.30  retired members, deferred pensioners, and service pensioners who 
  7.31  meet the requirements of this subdivision are entitled to a 
  7.32  service pension according to the following schedule: 
  7.33    Length of credited service   Units of service pension payable 
  7.34                5                                8.0
  7.35                6                                9.6
  7.36                7                               11.2 
  8.1                 8                               12.8 
  8.2                 9                               14.4 
  8.3                 10                              16.0 
  8.4                 11                              17.6 
  8.5                 12                              19.2 
  8.6                 13                              20.8
  8.7                 14                              22.4 
  8.8                 15                              24.0 
  8.9                 16                              25.6 
  8.10                17                              27.2 
  8.11                18                              28.8 
  8.12                19                              30.4 
  8.13                20                              34.0 
  8.14                21                              35.6 
  8.15                22                              37.2 
  8.16                23                              38.8 
  8.17                24                              40.4 
  8.18                25                              42.0 
  8.19     Any and all leaves of absence of more than 90 days, except 
  8.20  as are granted to a member because of disability due to sickness 
  8.21  or accident, shall be excluded in computing a period of service; 
  8.22  a leave of absence granted to enable a member to accept an 
  8.23  appointive position in the fire department will not be 
  8.24  considered a leave of absence for purposes of this section.  No 
  8.25  member shall be entitled to draw both a disability and a service 
  8.26  pension. 
  8.27     Subd. 2.  [WAR SERVICE INCLUDED IN PERIOD OF SERVICE.] (a) 
  8.28  An individual's period of service includes any period in which 
  8.29  the member, after entering the fire department, leaves to either 
  8.30  enter the military forces of the United States in a time of war 
  8.31  or national emergency and subsequently receives an honorable 
  8.32  discharge therefrom or renders fire prevention services to the 
  8.33  United States government in a time of war or national emergency 
  8.34  provided the member who serves either applies for reinstatement 
  8.35  in or resumes active duty in the fire department within six 
  8.36  months. 
  9.1      (b) Any period of service a member qualifies for pursuant 
  9.2   to paragraph (a) is limited as follows: 
  9.3      (1) credit shall be granted for service rendered subsequent 
  9.4   to July 1, 1961, but the credit shall not exceed six calendar 
  9.5   years; 
  9.6      (2) no credit shall be granted for service rendered 
  9.7   subsequent to July 1, 1961, if the service credit for service 
  9.8   rendered prior to July 1, 1961, equals or exceeds six calendar 
  9.9   years; and 
  9.10     (3) if the service credit for service prior to July 1, 
  9.11  1961, is less than six calendar years, credit for service 
  9.12  subsequent to July 1, 1961, shall be added to the prior service, 
  9.13  but in no case shall total service credit exceed six calendar 
  9.14  years. 
  9.15     (c) During any period of military or fire prevention 
  9.16  service an individual shall not be considered an active member. 
  9.17     Sec. 9.  [423C.14] [MEMBER MAY BE ON DEFERRED PENSION 
  9.18  LIST.] 
  9.19     An association member who has performed services of the 
  9.20  fire department for five years or more but has not reached the 
  9.21  age of 50 years shall be eligible to retire from the department 
  9.22  after April 1, 1988, without forfeiting service pension rights.  
  9.23  The member shall, upon application, be placed on the 
  9.24  association's deferred pension roll.  The association shall, 
  9.25  upon application and approval, pay the pension of any member on 
  9.26  the deferred pension roll who has attained 50 years of age from 
  9.27  the date the application is approved.  The pension shall be paid 
  9.28  in accordance with the schedule set out under section 423C.13.  
  9.29  Any person making this application thereby waives all other 
  9.30  rights, claims, or demands against the association for any cause 
  9.31  that may have arisen from, or that may be attributable to, the 
  9.32  person's service in the fire department.  
  9.33     Sec. 10.  [423C.15] [DISABILITY PENSION.] 
  9.34     Subdivision 1.  [GENERALLY.] A member of the association 
  9.35  who, by sickness or accident, becomes disabled from performing 
  9.36  firefighter duties of the fire department shall be entitled to a 
 10.1   disability pension in accordance with the association's bylaws.  
 10.2   No allowance for disability shall be made unless notice of the 
 10.3   disability and an application for benefits is made by, or on 
 10.4   behalf of, the disabled member to the association within 90 days 
 10.5   after the beginning of the disability.  This application shall 
 10.6   include a certificate from a qualified medical professional 
 10.7   setting forth the cause, nature, and extent of the disability.  
 10.8   This certificate must also conclude that the disability was 
 10.9   incurred or sustained while the member was in the service of the 
 10.10  fire department.  A member entitled to a disability pension 
 10.11  shall receive benefits from the association for that period of 
 10.12  time, at such times and in such amounts, not to exceed 41 units 
 10.13  per month, as the bylaws of the association provide.  
 10.14     Subd. 2.  [BOARD OF EXAMINERS.] The board may authorize and 
 10.15  create a board of examiners to investigate and report on all 
 10.16  applications for disability pensions.  This board of examiners 
 10.17  shall make recommendations as to the benefit paid each 
 10.18  applicant, investigate, and report on all disability pensioners 
 10.19  and make recommendations as to the amount of pension to be paid 
 10.20  to them from year to year.  This board shall further investigate 
 10.21  and report on all applications for service pensions and claims 
 10.22  for relief.  This board shall consist of a competent physician 
 10.23  selected by the association and at least three members of the 
 10.24  association on active duty with the fire department. 
 10.25     Sec. 11.  [423C.16] [OPTIONAL ANNUITIES.] 
 10.26     Subdivision 1.  [ELECTION.] Subject to the provisions of 
 10.27  subdivision 2, a member of the association who retires or 
 10.28  becomes disabled may elect an optional retirement annuity prior 
 10.29  to the receipt of any benefits.  The optional retirement annuity 
 10.30  may be a 50 percent, 75 percent, or 100 percent joint survivor 
 10.31  annuity without reinstatement in the event of the designated 
 10.32  beneficiary predeceasing the member or a joint and survivor 
 10.33  annuity with reinstatement in the event of the designated 
 10.34  beneficiary predeceasing the member.  An optional retirement 
 10.35  annuity must be actuarially equivalent to the service pension 
 10.36  and automatic survivor coverage otherwise payable to the retired 
 11.1   member and the member's beneficiaries.  Once selected, the 
 11.2   optional annuity is irrevocable. 
 11.3      Subd. 2.  [SURVIVING SPOUSE BENEFIT.] The surviving spouse 
 11.4   of any service pensioner or disability benefit recipient of the 
 11.5   association who died between July 1, 1997, and October 1, 1997, 
 11.6   is entitled to a surviving spouse benefit equal to the 100 
 11.7   percent joint and survivor annuity amount which the decedent 
 11.8   would have been eligible to select if the decedent had been 
 11.9   entitled and able to select an optional annuity form on the date 
 11.10  of death.  The benefit under this subdivision is in lieu of any 
 11.11  other survivor benefit payable from the association.  The 
 11.12  benefit under this subdivision accrues as of October 1, 1997, 
 11.13  and is payable on the first day of the month next following the 
 11.14  effective date of this section.  The initial benefit payment 
 11.15  must include the increased amounts retroactive to October 1, 
 11.16  1997. 
 11.17     Sec. 12.  [423C.17] [RECIPIENT BENEFICIARY ENTITLEMENTS.] 
 11.18     Subdivision 1.  [BENEFICIARIES.] Notwithstanding any other 
 11.19  provision of law to the contrary, when a service pensioner, 
 11.20  disability pensioner, deferred pensioner, or active member of 
 11.21  the relief association dies, recipient beneficiaries are 
 11.22  entitled to a pension or pensions, as follows: 
 11.23     (1) to a surviving spouse, a pension of not less than 17 
 11.24  units, and not to exceed a total of 22 units per month, as the 
 11.25  bylaws of the association provide.  A surviving spouse of a 
 11.26  deceased service pensioner, disability pensioner, deferred 
 11.27  pensioner, or service pensioner who is otherwise not qualified 
 11.28  may receive a benefit if the surviving spouse was legally 
 11.29  married to the decedent for a period of five years and was 
 11.30  residing with the decedent at the time of death.  The surviving 
 11.31  spouse benefit is the same as that provided to those who meet 
 11.32  the definition of surviving spouse set out under section 
 11.33  423C.01, subdivision 17, except that if the surviving spouse is 
 11.34  younger than the decedent, the surviving spouse benefit must be 
 11.35  actuarially equivalent to a surviving spouse benefit that would 
 11.36  have been paid to the member's spouse had the member been 
 12.1   married to a person of the same or greater age than the member's 
 12.2   age prior to retirement.  A benefit paid in this circumstance 
 12.3   may be less than 17 units notwithstanding the minimum set out in 
 12.4   this clause; 
 12.5      (2) to each dependent, if their other parent is living, a 
 12.6   pension not to exceed eight units per month as the bylaws of the 
 12.7   association provide.  Dependents between the ages of 18 and 22 
 12.8   may continue to receive a pension upon board determination that 
 12.9   the dependent complies with section 423C.01, subdivision 8, and 
 12.10  applicable association bylaws.  The board shall make the final 
 12.11  determination with respect to eligibility for benefits and 
 12.12  compliance with section 423C.01, subdivision 8. 
 12.13     Subd. 2.  [EXTENSION BENEFITS IN THE EVENT OF BOTH 
 12.14  PARENTS.] Each dependent of a deceased member after the death of 
 12.15  their other parent, or in the event their other parent 
 12.16  predeceases the member, is entitled to receive a pension in such 
 12.17  amount as the board shall deem necessary to properly support 
 12.18  each dependent until they reach the age of not less than 16 and 
 12.19  not more than 18 years except that dependents between the ages 
 12.20  of 18 and 22 may be entitled to continue receiving a pension 
 12.21  upon board determination that the dependent complies with 
 12.22  section 423C.01, subdivision 8, and applicable association 
 12.23  bylaws.  The board shall make the final determination with 
 12.24  respect to eligibility for benefits and compliance with section 
 12.25  423C.01, subdivision 8. 
 12.26     Subd. 3.  [LIMIT ON TOTAL UNITS.] The total pension payable 
 12.27  to a surviving spouse and all dependents of a deceased member 
 12.28  shall not exceed 41 units per month. 
 12.29     Subd. 4.  [LIMITATION ON DEPENDENT'S REVIEW.] In the event 
 12.30  a dependent who is receiving a pension as provided above shall 
 12.31  marry before the age of 22 years, the pension shall cease as of 
 12.32  the date of the marriage.  
 12.33     Sec. 13.  [423C.18] [INVESTMENT RELATED POSTRETIREMENT 
 12.34  ADJUSTMENTS.] 
 12.35     Subdivision 1.  [ANNUAL POSTRETIREMENT PAYMENT AUTHORIZED.] 
 12.36  Notwithstanding the provisions of chapter 69, or any other law 
 13.1   to the contrary, the association may provide annual 
 13.2   postretirement payments to eligible members under this section. 
 13.3      Subd. 2.  [DETERMINATION OF EXCESS INVESTMENT INCOME.] The 
 13.4   board shall determine by May 1 of each year whether or not the 
 13.5   association has excess investment income.  The amount of excess 
 13.6   investment income, if any, must be stated as a dollar amount and 
 13.7   reported by the executive secretary of the association to the 
 13.8   mayor and governing body of the city, the state auditor, the 
 13.9   commissioner of finance, and the executive director of the 
 13.10  legislative commission on pensions and retirement.  The dollar 
 13.11  amount of excess investment income up to one percent of the 
 13.12  assets of the fund, except if the actuarial value of assets of 
 13.13  the fund according to the most recent annual actuarial valuation 
 13.14  prepared in accordance with sections 356.215 and 356.216 is 
 13.15  greater than 102 percent of its actuarial accrued liabilities, 
 13.16  in which case the amount may not exceed 1.5 percent of the 
 13.17  assets of the fund, must be applied for the purpose specified in 
 13.18  subdivision 3.  
 13.19     Excess investment income must not be considered as income 
 13.20  to, or assets of, the fund for actuarial valuations of the fund 
 13.21  for that year under sections 69.77, 356.215, and 356.216, and 
 13.22  the provisions of this section except to offset the annual 
 13.23  postretirement payment.  Additional investment income is any 
 13.24  realized or unrealized investment income other than the excess 
 13.25  investment income and must be included in the actuarial 
 13.26  valuations performed under sections 69.77, 356.215, and 356.216, 
 13.27  and the provisions of this section. 
 13.28     Subd. 3.  [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 
 13.29  amount determined under subdivision 2 must be applied in 
 13.30  accordance with this subdivision.  When the actuarial value of 
 13.31  assets of the fund according to the most recent annual actuarial 
 13.32  valuation prepared in accordance with sections 356.215 and 
 13.33  356.216 is less than 102 percent of its actuarial accrued 
 13.34  liabilities.  The association shall apply the first one-half of 
 13.35  one percent of assets which constitute excess investment income 
 13.36  to the payment of an annual postretirement payment as specified 
 14.1   in this subdivision and the second one-half of one percent of 
 14.2   assets which constitute excess investment income shall be 
 14.3   applied to reduce the state amortization state aid or 
 14.4   supplementary amortization state-aid payments otherwise due to 
 14.5   the association under section 423A.02 for the current calendar 
 14.6   year.  When the actuarial value of assets of the fund according 
 14.7   to the most recent annual actuarial valuation prepared in 
 14.8   accordance with sections 356.215 and 356.216 is less than 102 
 14.9   percent of its actuarial accrued liabilities the association 
 14.10  shall pay an annual postretirement payment to all eligible 
 14.11  members in an amount not to exceed one-half of one percent of 
 14.12  the assets of the fund.  Payment of the annual postretirement 
 14.13  payment must be in a lump-sum amount on June 1 following the 
 14.14  determination date in any year. 
 14.15     When the actuarial value of assets of the fund according to 
 14.16  the most recent annual actuarial valuation prepared in 
 14.17  accordance with sections 356.215 and 356.216 is greater than 102 
 14.18  percent of its actuarial accrued liabilities, the association 
 14.19  shall pay an annual postretirement payment to all eligible 
 14.20  members in an amount not to exceed 1-1/2 percent of the assets 
 14.21  of the fund.  Payment of the annual postretirement payment may 
 14.22  be made only if the time weighted total rate of return in the 
 14.23  most recent prior five fiscal years exceeds by two percent the 
 14.24  actual percentage increase in the maximum monthly salary of a 
 14.25  top grade firefighter in the most recent prior five fiscal 
 14.26  years.  The total amount of all payments to members may not 
 14.27  exceed the amount determined under subdivision 2. 
 14.28     Payment to each eligible member must be calculated by 
 14.29  dividing the total number of pension units to which eligible 
 14.30  members are entitled into the excess investment income available 
 14.31  for distribution to members, and then multiplying that result by 
 14.32  the number of units to which each eligible member is entitled to 
 14.33  determine each eligible member's annual postretirement payment.  
 14.34  When the fund actuarial value of assets according to the most 
 14.35  recent annual actuarial valuation prepared in accordance with 
 14.36  sections 356.215 and 356.216 is less than 102 percent of its 
 15.1   actuarial accrued liabilities.  Payment to each eligible member 
 15.2   may not exceed an amount equal to the total monthly benefit that 
 15.3   the eligible member was entitled to in the prior year under the 
 15.4   terms of the benefit plan of the association or each eligible 
 15.5   member's proportionate share of the excess investment income, 
 15.6   whichever is less.  When the actuarial value of assets of the 
 15.7   fund according to the most recent annual actuarial valuation 
 15.8   prepared in accordance with sections 356.215 and 356.216 is 
 15.9   greater than 102 percent of its actuarial accrued liabilities, 
 15.10  payment to each eligible member may not exceed the member's 
 15.11  proportionate share of 1-1/2 percent of assets of the fund. 
 15.12     Subd. 4.  [ANNUAL POSTRETIREMENT PAYMENT IN THE EVENT OF 
 15.13  DEATH.] In the event an eligible member dies prior to the 
 15.14  payment of the annual postretirement payment, the executive 
 15.15  secretary of the association shall pay the eligible member's 
 15.16  estate the amount to which the member was entitled. 
 15.17     Subd. 5.  [REPORT ON ANNUAL POSTRETIREMENT PAYMENT.] The 
 15.18  executive secretary of the association shall submit a report on 
 15.19  the amount of all postretirement payments made under this 
 15.20  section and the manner in which those payments were determined 
 15.21  to the state auditor, the executive director of the legislative 
 15.22  commission on pensions and retirement, and the city clerk of the 
 15.23  city of Minneapolis. 
 15.24     Subd. 6.  [NO GUARANTEE OF ANNUAL POSTRETIREMENT 
 15.25  PAYMENT.] No provision of or payment made under this section may 
 15.26  be interpreted or relied upon by any member of the association 
 15.27  to guarantee or entitle a member to annual postretirement 
 15.28  payments for a period when no excess investment income is earned 
 15.29  by the fund.  If the actuarial value of assets of the fund 
 15.30  according to the most recent annual actuarial valuation prepared 
 15.31  in accordance with sections 356.215 and 356.216 is less than 102 
 15.32  percent of its actuarial accrued liabilities, the distribution 
 15.33  of the fund assets must not exceed one-half of one percent. 
 15.34     Sec. 14.  [423C.19] [ACTUARIAL VALUATION DATE.] 
 15.35     Notwithstanding section 69.77, subdivision 2h, 356.215, or 
 15.36  356.216, the annual actuarial valuation of the association must 
 16.1   be completed by May 1 of each year.  
 16.2      Sec. 15.  [423C.20] [MINNEAPOLIS FIRE DEPARTMENT RELIEF 
 16.3   ASSOCIATION TAX LEVY.] 
 16.4      If in any year after the Minneapolis fire department relief 
 16.5   actuarial value of assets of the association, according to the 
 16.6   most recent annual actuarial valuation prepared in accordance 
 16.7   with sections 356.215 and 356.216, is greater than 102 percent 
 16.8   of the actuarial accrued liabilities of the fund and 
 16.9   subsequently the actuarial value of assets are less than 100 
 16.10  percent of the actuarial accrued liabilities according to the 
 16.11  most recent annual actuarial valuation prepared in accordance 
 16.12  with sections 356.215 and 356.216, the city of Minneapolis is 
 16.13  not required to levy a property tax to fund any deficit unless 
 16.14  the fund has two successive years when the actuarial value of 
 16.15  assets are less than 100 percent of the actuarial accrued 
 16.16  liabilities according to the most recent annual actuarial 
 16.17  valuation prepared in accordance with sections 356.215 and 
 16.18  356.216. 
 16.19     Sec. 16.  [423C.21] [HEALTH INSURANCE ACCOUNT.] 
 16.20     (a) Notwithstanding any law to the contrary, contributions 
 16.21  of active members of the relief association with at least 25 
 16.22  years of service made after the 25th year of service must be 
 16.23  deposited in a separate account and used to pay the future 
 16.24  health insurance costs of the individual member upon that 
 16.25  member's retirement. 
 16.26     (b) A member who retires with at least 25 years of service 
 16.27  is entitled to receive periodic distributions from the remaining 
 16.28  balance in the member's health insurance account, in the amount 
 16.29  and with the frequency specified by the retiring member in 
 16.30  conformance with rules adopted by the board. 
 16.31     Sec. 17.  [423C.22] [MEMBER CONTRIBUTION REFUND TO 
 16.32  BENEFICIARY UPON DEATH.] 
 16.33     If an active, deferred, or retired member of the 
 16.34  association dies and no survivor benefit is payable, the 
 16.35  designated beneficiary of the decedent or, if none, the legal 
 16.36  representative of the estate of the decedent is entitled, upon 
 17.1   application, to a refund.  The refund shall be an amount equal 
 17.2   to the member contributions to the credit of the decedent, plus 
 17.3   interest on those contributions as an annual compounded rate of 
 17.4   five percent from the first day of the month following the date 
 17.5   of death of the decedent, reduced by the sum of any service 
 17.6   pension or disability benefit previously paid by the fund to the 
 17.7   decedent.  
 17.8      Sec. 18.  [423C.23] [PAYMENTS EXEMPT FROM PROCESS.] 
 17.9      All payments made, or to be made, by the association under 
 17.10  any of the provisions of this chapter shall be totally exempt 
 17.11  from garnishment, execution, or other legal process, except as 
 17.12  provided in section 518.58 or 518.581.  No person entitled to a 
 17.13  payment shall have the right to assign the name, nor shall the 
 17.14  association have authority to recognize any assignment or to pay 
 17.15  any sum on account thereof.  Any attempt to transfer any right 
 17.16  or claim, or any part thereof, shall be void. 
 17.17     Sec. 19.  [423C.24] [WORKERS' COMPENSATION ACT NOT 
 17.18  AFFECTED.] 
 17.19     This chapter shall not be construed as abridging, 
 17.20  repealing, or amending the laws of this state relating to the 
 17.21  provisions of the law commonly known as the Workers' 
 17.22  Compensation Act. 
 17.23     Sec. 20.  [423C.25] [DISPOSITION OF ASSETS UPON CONCLUSION 
 17.24  OF BENEFIT PAYMENTS.] 
 17.25     Upon the death of the last benefit recipient and the 
 17.26  certification by the chief administrative officer of the city of 
 17.27  Minneapolis to the state auditor of the absence of any remaining 
 17.28  person with a benefit entitlement, the assets of the association 
 17.29  or trust fund, whichever applies, must revert to the city and 
 17.30  may be used by the city only for firefighting expenditure 
 17.31  purposes. 
 17.32     Sec. 21.  [EFFECT ON ACCRUED BENEFITS AND BENEFITS 
 17.33  PAYABLE.] 
 17.34     (a) The legislature intends by this chapter to recodify the 
 17.35  prior local laws applicable to the Minneapolis fire department 
 17.36  relief association. 
 18.1      (b) This chapter is not intended to increase or reduce the 
 18.2   pensions or benefits currently payable to pension and benefit 
 18.3   recipients of the association.  All pensions and benefits 
 18.4   payable from the association in force on the effective date of 
 18.5   this section, as reflected in the records of the relief 
 18.6   association as of that date, continue. 
 18.7      (c) This chapter is not intended to modify, impair, or 
 18.8   diminish the pension or benefit entitlements accrued or service 
 18.9   credited to active or deferred members of the association on the 
 18.10  effective date of this chapter as reflected in the records of 
 18.11  the association as of that date.  If the executive secretary of 
 18.12  the relief association determines that any provision of this 
 18.13  chapter has the effect of modifying, impairing, or diminishing 
 18.14  the pension or benefit entitlements that had been accrued or 
 18.15  service had been credited to an active or referred relief 
 18.16  association member, the executive secretary shall certify that 
 18.17  determination and a recommendation as to the required 
 18.18  legislative correction, if any, to the chairs of the legislative 
 18.19  commission on pensions and retirement, the house governmental 
 18.20  operations committee, the senate governmental operations 
 18.21  committee, and to the executive director of the legislative 
 18.22  commission on pensions and retirement.  
 18.23     Sec. 22.  [REPEALER.] 
 18.24     Laws 1907, chapter 24; Laws 1913, chapters 318; and 419; 
 18.25  Laws 1917, chapter 196; Laws 1919, chapters 515; and 523; Laws 
 18.26  1921, chapter 404; Laws 1923, chapter 61; Laws 1945, chapter 
 18.27  322; Laws 1959, chapters 213; 491; and 568, as amended by Laws 
 18.28  1961, extra session chapter 3; Laws 1961, chapter 109; Laws 
 18.29  1963, chapter 318, as amended by Laws 1965, chapters 519; and 
 18.30  578; Laws 1967, chapters 819; and 824; Laws 1969, chapters 123; 
 18.31  and 287; Laws 1971, chapter 542; Laws 1975, chapter 57; Laws 
 18.32  1977, chapter 164, section 2; Laws 1980, chapter 607, article 
 18.33  XV, sections 8, 9, and 10; Laws 1988, chapters 572, sections 4, 
 18.34  5, and 6; and 574, sections 3, 4, and 5; Laws 1989, chapter 319, 
 18.35  article 19, sections 6 and 7; Laws 1990, chapter 589, article 1, 
 18.36  sections 5 and 6; Laws 1992, chapters 429; 454, section 2; and 
 19.1   471, article 2; Laws 1993, chapters 125; and 192, section 32; 
 19.2   Laws 1994, chapters 591; and 632, article 3, section 14; Laws 
 19.3   1996, article 2, section 3; and article 3, section 1; and Laws 
 19.4   1997, chapter 233, article 4, sections 13, 14, 15, 16, 17, 18, 
 19.5   19, 20, 21, and 22, are repealed.