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Minnesota Legislature

Office of the Revisor of Statutes

SF 2982

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; modifying the investment-related postretirement
adjustment of the Minneapolis firefighters relief association by correcting;
providing an additional cost-of-living unit to members of the Minneapolis
firefighters relief association upon achieving 110 percent funding; amending
Minnesota Statutes 2006, section 423C.05, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2006, section 423C.05, is amended by adding a
subdivision to read:


new text begin Subd. 10. new text end

new text begin Pension unit increase. new text end

new text begin When the actuarial value of assets of the special
fund is greater than 110 percent of the actuarial accrued liabilities, according to the most
recent annual actuarial valuation performed in accordance with sections 356.215 and
356.216, each service pensioner, joint survivor annuitant, and surviving spouse member is
entitled to a onetime permanent benefit increase of one additional unit. The association
shall add the additional unit to the pension to which the member is otherwise entitled
beginning January 1 of the year following the year for which the valuation was prepared.
Active members retiring after the effective date of this subdivision will be entitled to this
additional unit upon retirement from the fire department, once the requirements of this
legislation have been satisfied and the benefit has been provided to the retired membership.
The benefit increase authorized by this subdivision will occur only when the funding ratio
equals or exceeds 110 percent of liabilities. This subdivision authorizes a benefit increase
of up to one unit to a total maximum of 43 units for a service pensioner, 23 units for a
surviving spouse benefit, and 43.2 units for unmarried service pensioners. If adding an
additional unit results in raising total units past the maximum, a partial unit may be added
to reach the maximum. For joint survivor annuities, this subdivision authorizes a benefit
increase actuarially equivalent to one unit.
new text end

Sec. 2.

Minnesota Statutes 2006, section 423C.05, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Unit precedence. new text end

new text begin The additional unit provided for in subdivision 10
shall take precedence over the benefit provided in section 423C.06, subdivision 4. In
preparing the actuarial valuation under sections 356.215 and 356.216, the actuary for the
fund shall first account for the benefit provided in subdivision 10 in determining the plan's
funded ratio. No benefit payments may be made by the association under section 423C.06,
subdivision 4, until the actuarial impact of the benefit provided for in subdivision 10 has
been determined and factored into the funding ratio.
new text end

Sec. 3. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end