Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 286--H.F.No. 652
           An act relating to public retirement funds; providing 
          interest on refunds and removing erroneous language 
          from the legislators plan; excluding severance pay in 
          annuity computation and authorizing the purchase of 
          service credit in the state retirement system for 
          certain periods of unpaid leave; excluding severance 
          pay in computing state patrol annuities; authorizing 
          payment of interest on refunds to constitutional 
          officers; excluding court reporter's fees from salary 
          computation and reinstating retroactively an actuarial 
          valuation reduction for certain public employees 
          retirement association members; providing for a 
          fiduciary obligation of trustees, clarifying the 
          exemption of moneys from legal process, and increasing 
          survivor benefits for first class city teachers 
          associations; providing that moneys of public plans 
          are for the exclusive benefit of participants; 
          clarifying treatment of periods of duplicated public 
          service credit; allowing certain public employees to 
          retain service credit for disability benefit purposes 
          upon a change in employment; conforming to federal 
          limits on annual benefits; authorizing asset transfers 
          between accounts and increasing survivor benefits for 
          the Minneapolis municipal fund; clarifying the 
          definition of separation from active service for 
          volunteer firefighters; clarifying the period during 
          which a disabled judge is entitled to full salary; 
          correcting erroneous dates in a buyback authorization 
          for a Crookston police officer; amending Minnesota 
          Statutes 1982, sections 3A.03, subdivision 2; 3A.11, 
          subdivision 1; 352.01, subdivision 13; 352B.08, 
          subdivision 2; 352C.09, subdivision 2; 353.01, 
          subdivision 10; 353.27, subdivision 9; 353.30, by 
          adding a subdivision; 354A.011, subdivision 4; 
          354A.021, by adding a subdivision; 354A.11; 354A.32; 
          354A.35, subdivision 2; 356.30, subdivision 1; 
          356.301; 356.61; 356.65, subdivision 1; 422A.05, 
          subdivision 1; 422A.05, by adding a subdivision; 
          422A.23, subdivision 2; 424A.02, subdivision 1; 
          490.124, subdivision 4; amending Laws 1983, chapter 
          84, section 1; proposing new law coded in Minnesota 
          Statutes, chapter 356; repealing Minnesota Statutes, 
          sections 422A.05, subdivision 7; 422A.23, subdivision 
          3; and Laws 1982, chapter 519, section 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 3A.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [REFUNDMENT REFUND.] (1) Any person who has made 
contributions pursuant to subdivision 1 who is no longer a 
member of the legislature and has less than eight years service 
as a member of the legislature and is not receiving, has not 
received, or is not entitled to receive any allowance or benefit 
under this chapter is entitled to receive upon application to 
the director a refundment refund of all contributions credited 
to his the member's account without with interest thereon at 
the rate of 3-1/2 percent per annum compounded annually after 
the third year of service.  
    (2) The refundment refund of contributions as provided in 
clause (1) above terminates all rights of a former member of the 
legislature or his or her survivors under this chapter.  Should 
the former member of the legislature again be a member of the 
legislature after having taken a refundment refund as provided 
above, he or she shall be considered a new member.  However, 
such a new member may reinstate the rights and credit for 
service forfeited, provided the new member repays all 
refundments refunds taken plus interest thereon at six percent 
per annum compounded annually.  
    (3) No person shall be required to apply for or accept a 
refundment refund. 
    Sec. 2.  Minnesota Statutes 1982, section 3A.11, 
subdivision 1, is amended to read:  
    Subdivision 1.  The reserves necessary to fund the 
retirement allowance granted pursuant to section 3A.02 to a 
former legislator upon retirement and any survivor benefits 
which may become payable, shall be transferred by the director 
to the Minnesota post-retirement investment fund as of the date 
benefits begin to accrue in accord with section 11A.18.  The 
amount of the transfer made hereunder shall be determined by an 
approved actuary as defined in section 352.01, subdivision 15, 
in accord with an appropriate mortality table using an interest 
assumption set at the rate specified in section 356.215, 
subdivision 4, clause (4). 
    Sec. 3.  Minnesota Statutes 1982, section 352.01, 
subdivision 13, is amended to read: 
    Subd. 13.  [SALARY.] "Salary" means any compensation paid 
to any employee including wages, allowances, and fees, but 
excluding amounts of severance pay. 
    Sec. 4.  Minnesota Statutes 1982, section 352B.08, 
subdivision 2, is amended to read: 
    Subd. 2.  The annuity shall be paid in monthly installments 
equal to that portion of the average monthly salary of the 
member multiplied by 2-1/2 percent for each year and pro rata 
for completed months of service not exceeding 25 years and two 
percent for each year and pro rata for completed months of 
service in excess of 25 years.  "Average monthly salary" shall 
mean the average of the monthly salaries for the five highest 
successive years of service as a member.  The monthly salary for 
the period prior to July 2, 1969 shall be deemed to be $600.  
The term "average monthly salary" shall not include any amounts 
of severance pay or any reduced salary paid during the period 
the person is entitled to benefit payments from the workers' 
compensation court of appeals for temporary disability.  In lieu 
of the single life annuity herein provided, the member or former 
member with ten years or more of service may elect a joint and 
survivor annuity, payable to a designated beneficiary for life, 
adjusted to the actuarial equivalent value of the single life 
annuity.  The joint and survivor annuity elected by a member may 
also provide that the elected annuity be reinstated to the 
single life annuity herein provided, if after drawing the 
elected joint and survivor annuity, the designated beneficiary 
dies prior to the death of the member.  This reinstatement shall 
not be retroactive but shall be in effect for the first full 
month subsequent to the death of the designated beneficiary.  
This additional joint and survivor option with reinstatement 
clause shall be adjusted to the actuarial equivalent value of a 
regular single life annuity. 
    Sec. 5.  Minnesota Statutes 1982, section 352C.09, 
subdivision 2, is amended to read:  
    Subd. 2.  (1) Any person who has made contributions 
pursuant to subdivision 1 who is no longer a constitutional 
officer or commissioner and is not receiving and has not 
received, or is not entitled to receive any allowance or benefit 
under the provisions of this chapter is entitled to receive upon 
application to the director a refund of all contributions 
credited to his or her account without with interest thereon 
at the rate of 3-1/2 percent per annum compounded annually after 
the third year of service.  
    (2) The refund of contributions as provided in clause (1) 
above terminates all rights of a former constitutional officer 
or commissioner or his or her survivors under the provisions of 
this chapter.  Should the former constitutional officer or 
commissioner again hold such office after having taken a refund 
as provided above, he or she shall be considered a new member 
for all purposes and such refund may not be repaid for any 
credit or benefit whatever and may reinstate the rights and 
credit for service forfeited provided he or she repays all 
refunds previously taken plus interest at six percent per annum 
compounded annually. 
    (3) No person shall be required to apply for or accept a 
refund. 
    Sec. 6.  Minnesota Statutes 1982, section 353.01, 
subdivision 10, is amended to read:  
    Subd. 10.  [SALARY.] "Salary" means the periodical 
compensation of any public employee, before deductions for 
deferred compensation or supplemental retirement plans, and also 
means "wages" and includes net income from fees.  Fees paid to 
district court reporters shall not be considered a salary.  Lump 
sum annual leave payments and severance payments shall not be 
deemed to be salary.  Prior to the time that all sick leave has 
been used, amounts paid to an employee pursuant to a disability 
insurance policy or program where the employer paid the premiums 
shall be considered salary, and after all sick leave has been 
used, the payment shall not be considered salary.  Workers' 
compensation payments shall not be considered salary. 
    Sec. 7.  Minnesota Statutes 1982, section 353.27, 
subdivision 9, is amended to read: 
    Subd. 9.  [FEE OFFICERS; CONTRIBUTIONS; OBLIGATIONS OF 
EMPLOYERS.] Any appointed or elected officer of a governmental 
subdivision who was or is a "public employee" within the meaning 
of section 353.01 and was or is a member of the fund and whose 
salary was or is paid in whole or in part from revenue derived 
by fees and assessments, shall pay his employee contribution in 
the amount, at the time, and in the manner provided in 
subdivisions 2 and 4.  This subdivision shall not apply to 
district court reporters.  The employer contribution as provided 
in subdivision 3, and the additional employer contribution as 
provided in subdivision 3a, and section 353.36, subdivision 2a, 
with respect to such service shall be paid by the governmental 
subdivision.  This subdivision shall have both retroactive and 
prospective application as to all such members; and every 
employing governmental subdivision is deemed liable, 
retroactively and prospectively, for all employer and additional 
employer contributions for every such member in its employ. 
Delinquencies under this section shall be governed in all 
respects by section 353.28. 
    Sec. 8.  Minnesota Statutes 1982, section 353.30, is 
amended by adding a subdivision to read:  
    Subd. 1b.  Any person with 30 years or more of allowable 
service credit, who elects early retirement under subdivision 1, 
shall receive an annuity reduced by one-quarter of one percent 
for each month that the member is under age 62 at the time of 
retirement.  
    Sec. 9.  Minnesota Statutes 1982, section 354A.011, 
subdivision 4, is amended to read: 
    Subd. 4.  [ALLOWABLE SERVICE.] "Allowable service" means 
any service rendered by a member during a period in which the 
member receives salary from which employee contribution salary 
deductions are made to and credited by the teachers retirement 
fund association or any service rendered by a person during any 
period where assessments or payments in lieu of salary 
deductions were made if authorized by any law or provision of 
the association's articles of incorporation or bylaws then in 
effect or pursuant to section 354A.091, 354.092, 354.093, or 
354.094 354A.092, 354A.093, or 354A.094. 
    Sec. 10.  Minnesota Statutes 1982, section 354A.021, is 
amended by adding a subdivision to read:  
    Subd. 6.  [TRUSTEES' FIDUCIARY OBLIGATION.] It is the duty 
of the trustees or directors of each teachers retirement fund 
association to administer each fund in accordance with the 
applicable portions of this chapter, of the articles of 
incorporation, and of the bylaws.  They shall act as trustees 
with a fiduciary obligation to the state of Minnesota which 
created the fund, the taxpayers which aid in financing it, and 
the teachers who are its beneficiaries.  The purpose of this 
subdivision is to establish each teachers retirement fund 
association as a trust under the laws of the state of Minnesota 
for all purposes related to section 401(a) of the Internal 
Revenue Code of the United States, including all amendments.  
    Sec. 11.  Minnesota Statutes 1982, section 354A.11, is 
amended to read:  
    354A.11 [CERTAIN MONEYS AND CREDITS OF TEACHERS EXEMPT.] 
    All moneys deposited by a teacher or member or deposited by 
any other person or corporation, municipal or private, to the 
credit of a teacher or member of a teachers retirement fund 
association organized pursuant to this chapter, and all moneys, 
rights, and interests or annuities due or to become due to a 
teacher, member, or annuitant, or their beneficiaries, from any 
association shall not be assignable, shall be exempt from 
garnishment, attachment, and execution or sale on any final 
process issued from any court and every other legal process 
whatsoever including, but not limited to, divorce process to 
collect court awards relating to marriage dissolution, legal 
separation, and child support, and shall not be subject to the 
estate tax provisions of this state.  This section does not make 
the moneys nonmarital property.  
    Sec. 12.  Minnesota Statutes 1982, section 354A.32, is 
amended to read: 
    354A.32 [OPTIONAL RETIREMENT ANNUITIES.] 
    The boards of the Minneapolis and the St. Paul teachers 
retirement fund associations shall each establish for the 
coordinated program and the board of the Duluth teachers 
retirement fund association shall establish for the new law 
coordinated program an optional retirement annuity which shall 
take the form of a joint and survivor annuity.  Each board may 
also in its discretion establish an optional annuity which shall 
take the form of an annuity payable for a period certain and for 
life thereafter.  Each board shall also establish an optional 
retirement annuity which shall take the form of a guarantee that 
in the event of death the balance of the accumulated deductions 
shall be paid to a designated beneficiary.  All optional forms 
shall be the actuarial equivalent of the normal forms provided 
in section 354A.31.  In establishing these optional forms, the 
board shall obtain the written recommendation of an approved 
actuary and the recommendation shall be a part of the permanent 
records of the board. 
     In the event of the death of the designated beneficiary of 
a retired member who had elected an optional annuity, the member 
shall thereafter receive the unreduced amount of the earned 
benefit computed pursuant to 354A.31. 
    Sec. 13.  Minnesota Statutes 1982, section 354A.35, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEATH WHILE ELIGIBLE TO RETIRE; SURVIVING SPOUSE 
OPTIONAL ANNUITY.] The surviving spouse of any coordinated 
member who has attained the age of at least 55 years and has 
credit for at least 20 years of service or has credit for at 
least 30 years of service regardless of age shall be entitled to 
elect a joint and survivor annuity covering the spouse of the 
member.  If a coordinated member has elected a joint and 
survivor annuity pursuant to this subdivision and the member 
dies prior to retirement, coverage in the event of death of the 
member prior to retirement.  The member's surviving spouse shall 
be paid a joint and survivor annuity as provided in section 
354A.32 and computed pursuant to section 354A.31.  The benefits 
shall be payable for life.  
    Sec. 14.  Minnesota Statutes 1982, section 356.30, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 
Notwithstanding any provisions to the contrary of the laws 
governing the funds enumerated in subdivision 3, a person who 
has met the qualifications of clause (2) may elect to receive a 
retirement annuity from each fund in which the person has at 
least six months allowable service, based on the allowable 
service in each fund, subject to the provisions of clause (3).  
    (2) A person may receive upon retirement, in lieu of any 
augmentation of deferred annuities provided by laws governing 
the funds enumerated in subdivision 3, a retirement annuity from 
each fund in which the person has at least six months allowable 
service if 
    (a) the person has allowable service totaling ten or more 
years in any two or more of such the enumerated funds and;  
    (b) the person has at least six months of allowable service 
with the last such fund earned during his the last period of 
employment; and 
    (c) the person has not begun to receive an annuity from any 
such funds, may, upon retirement, in lieu of any augmentation of 
deferred annuities provided by the laws of such funds, elect to 
receive a retirement annuity enumerated fund or the person has 
made application for benefits from all funds within a six-month 
period.  
    (3) The retirement annuity from each fund in which he has 
allowable service, shall be based upon the allowable service in 
each fund, except that:  
     (a) The laws governing annuities shall be the law in effect 
on the date of his final termination from the last public 
service under a covered fund;.  
     (b) The "average salary" on which the annuity from each 
covered fund in which the employee has credit in a formula plan 
shall be based on the employee's highest five successive years 
of covered salary during his the entire service in covered funds;
.  
     (c) The formula percentages to be used by each fund shall 
be those percentages prescribed by each fund's formula as 
continued for the respective years of allowable service from one 
fund to the next, recognizing all previous allowable service 
with the other covered funds; and.  
     (d) Allowable service in all the funds shall be combined in 
determining eligibility for and the application of each fund's 
provisions in respect to actuarial reduction in the benefit 
amount for retirement prior to normal retirement.  
     (e) The benefit amount payable for any allowable service 
under a nonformula plan of a covered fund shall not be affected 
but such service and covered salary shall be used in the above 
calculation.  
     (f) This section shall not apply to any person whose final 
termination from the last public service under a covered fund is 
prior to May 1, 1975.  
     (g) For the purpose of computing benefits under this 
section the formula percentages used by any covered fund shall 
in no event exceed two and one-half percent per year of service 
for any year of service or fraction thereof.  
    (h) Any period of time for which a person has credit in 
more than one of the covered funds shall be used only once for 
the purpose of determining total allowable service.  Such period 
shall be used in the computation of the benefit by the fund 
having primary and principal coverage prior to and following the 
period.  However, if such dual coverage is the result of two 
part time employments each fund shall apply a pro rata fraction 
of its formula.  
     (i) If the period of duplicated service credit is more than 
six months, or the person has credit for more than six months 
with each of the funds, each fund shall apply its formula to a 
prorated service credit for the period of duplicated service 
based on a fraction of the salary on which deductions were paid 
to that fund for the period divided by the total salary on which 
deductions were paid to all funds for the period.  
     (j) If the period of duplicated service credit is less than 
six months, or when added to other service credit with that fund 
is less than six months, the service credit shall be ignored and 
a refund of contributions made to the person in accord with that 
fund's refund provisions.  
    Sec. 15.  Minnesota Statutes 1982, section 356.301, is 
amended to read: 
    356.301 [RECOGNITION OF MULTIPLE RETIREMENT FUND COVERAGE 
FOR DISABILITY BENEFIT ENTITLEMENT.] 
    Notwithstanding any provisions to the contrary of the laws 
governing the funds enumerated in section 356.30, subdivision 3, 
in determining the length of service for the purpose of meeting 
the service requirement for entitlement for a disability 
benefit, but not for the purpose of establishing service credit 
for the calculation of the amount of a disability benefit, 
service covered by any retirement fund as defined in section 
356.60, subdivision 1, clause (a) 356.61, shall be recognized.  
    If the law governing any fund enumerated in section 356.30, 
subdivision 3 requires a specified length of allowable service 
under that fund since the last termination of covered employment 
to be eligible for a disability benefit, an employee 
transferring from a covered position under one fund to a covered 
position under another fund within a 30-day period shall be 
considered to have been employed continuously for the purpose of 
qualifying the employee for a disability benefit.  
    Sec. 16.  Minnesota Statutes 1982, section 356.61, is 
amended to read:  
    356.61 [LIMITATION ON PUBLIC EMPLOYEE RETIREMENT 
ANNUITIES.] 
    Notwithstanding any provision of law, bylaws, articles of 
incorporation, retirement and disability allowance plan 
agreements or retirement plan contracts to the contrary, no 
person who has pension or retirement coverage by a public 
pension plan shall be entitled to receive a monthly retirement 
annuity or disability benefit which, at the time of commencement 
of the retirement annuity or disability benefit, exceeds the 
lesser of:  
    (a) the amount of the final monthly salary of the person; 
or 
    (b) one-twelfth of the amount of the annual benefit 
permitted by the terms of section 415 of the Internal Revenue 
Code with respect to a participant in a plan qualified under 
section 401(a) of the Internal Revenue Code, as amended through 
December 31, 1982.  
    A public pension plan is any Minnesota public pension plan 
or fund which provides pension or retirement coverage for public 
employees other than volunteer firefighters, including any plan 
or fund enumerated in sections 356.20, subdivision 2, or 356.30, 
subdivision 3, any local police or firefighter's relief 
association to which section 69.77 applies, or any retirement or 
pension plan or fund, including a supplemental retirement plan 
or fund, established, maintained or supported by any 
governmental subdivision or public body whose revenues are 
derived from taxation, fees, assessments or from other public 
sources.  Final monthly salary is the hourly rate of 
compensation received by the person on account of the most 
recent public employment for the final pay period occurring 
prior to retirement multiplied by 174.  
    The figure for the monthly retirement annuity or disability 
benefit to be used for the calculation of this limitation shall 
not include any reduction or adjustment required for retirement 
prior to the normal retirement age or required for the election 
of an optional annuity.  
      If the figure for the monthly retirement annuity or 
disability benefit exceeds the limit contained in this section, 
the annuity or benefit payable shall be reduced appropriately.  
      The managing board of each public pension plan from which a 
retirement annuity or disability benefit is payable shall, at 
the time that the retirement annuity or disability benefit 
commences, contact all other public pension plans to determine 
whether or not the recipient of the retirement annuity or 
disability benefit is also receiving or is entitled to receive a 
retirement annuity or disability benefit from any other public 
pension plan.  If a person is entitled to receive or is 
receiving a retirement annuity or disability benefit from more 
than one public pension plan, all retirement annuities or 
disability benefits from all public pension plans shall be 
totalled in determining whether or not the limitation shall 
apply; provided however, that the limitation shall be based on 
the highest final monthly salary received by the individual from 
any plan.  Any reduction in the amount of the retirement annuity 
or disability benefit required pursuant to this section shall be 
made by the public pension plan which provided retirement 
coverage for the most recent period of service. 
    Sec. 17.  Minnesota Statutes 1982, section 356.65, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, unless the context clearly indicates otherwise, the 
following terms shall have the meanings given to them:  
    (a) "Public pension fund" means any public pension plan as 
defined in section 356.60, subdivision 1, clause (a) 356.61 and 
any Minnesota volunteer firefighters relief association which is 
established pursuant to chapter 424A and governed pursuant to 
sections 69.771 to 69.776.  
    (b) "Unclaimed public pension fund amounts" means any 
amounts representing accumulated member contributions, any 
outstanding unpaid annuity, service pension or other retirement 
benefit payments, including those made on warrants issued by the 
commissioner of finance, which have been issued and delivered 
for more than six years prior to the date of the end of the 
fiscal year applicable to the public pension fund, and any 
applicable interest to the credit of:  
    (1) an inactive or former member of a public pension fund 
who is not entitled to a defined retirement annuity and who has 
not applied for a refund of those amounts within five years 
after the last member contribution was made;  
    (2) a deceased inactive or former member of a public 
pension fund if no survivor is entitled to a survivor benefit 
and no survivor, designated beneficiary or legal representative 
of the estate has applied for a refund of those amounts within 
five years after the date of death of the inactive or former 
member. 
    Sec. 18.  Minnesota Statutes 1982, section 422A.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as otherwise provided by law The 
members of the retirement board shall be the trustees and 
custodians of the several funds created by sections 422A.01 to 
422A.25 and shall have exclusive control and management of these 
funds, and power to invest them and to hold, purchase, sell, 
assign, transfer, or dispose of any of the securities and 
investments in which any of the funds created by sections 
422A.01 to 422A.25 shall have been invested as well as the 
proceeds of the investments, and of the money belonging to these 
funds. 
    Sec. 19.  Minnesota Statutes 1982, section 422A.05, is 
amended by adding a subdivision to read: 
    Subd. 2d.  Notwithstanding any law to the contrary, the 
retirement board, subject to the standards of subdivision 2a of 
this section, may transfer assets between accounts established 
by section 422A.06.  
    Sec. 20.  Minnesota Statutes 1982, section 422A.23, 
subdivision 2, is amended to read: 
    Subd. 2.  Upon the death of a contributing member after 
having been in the city service not less than 18 months but 
before the effective date of retirement, the board shall in lieu 
of the settlement hereinbefore provided pay to the surviving 
dependent spouse and/or dependent children of the member under 
the age of 18, or under the age of 22 if a full-time student at 
an accredited school, college or university, and single, the 
following monthly benefit: 
    (a) Surviving spouse $150 $325 per month, except for 
benefits beginning after July 1, 1983, which shall be 30 percent 
of member's average salary in effect over the last six months of 
allowable service preceeding the month in which the death 
occurred. 
    (b) Each dependent surviving child $100 $150 per month, 
except for benefits beginning after July 1, 1983, which shall be 
ten percent of the member's average salary in effect over the 
last six months of allowable service preceeding the month in 
which the death occurred.  Payments for the benefit of any 
dependent child under the age of 18 years shall be made to the 
surviving parent, or if there be none, to the legal guardian of 
such child.  The maximum monthly benefit shall not exceed a 
total of $450 $750. 
    Sec. 21.  Minnesota Statutes 1982, section 424A.02, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORIZATION.] Any volunteer 
firefighters' relief association or volunteer firefighters' 
division or account of a partially salaried and partially 
volunteer firefighters' relief association organized and 
incorporated under chapter 317 and any laws of the state and 
directly associated with a fire department established by 
municipal ordinance or any separate incorporated volunteer 
firefighters' relief association subsidiary to and providing 
service pension and retirement benefit coverage for members of 
an independent nonprofit firefighting corporation organized 
under the provisions of chapter 317 and operating exclusively 
for fire fighting purposes, whether or not the nonprofit 
firefighting corporation qualifies for fire state aid pursuant 
to chapter 69, when its articles of incorporation or bylaws so 
provide, may pay out of the assets of the special fund of the 
volunteer firefighters' relief association or volunteer 
firefighters' account, a service pension to each of its members 
who separates from active service with the fire department or 
the independent nonprofit firefighting corporation, who reaches 
the age of 50 years and who completes at least ten years of 
active service as an active member of the municipal fire 
department to which the relief association is associated or of 
the independent nonprofit firefighting corporation to which the 
relief association is subsidiary, and who completes at least ten 
years of active membership with the volunteer firefighters' 
relief association or volunteer firefighters' account prior to 
separation from active service and who complies with any 
additional conditions as to age, service and membership which 
are prescribed by the bylaws of the relief association.  In the 
case of a member who has completed at least ten years of active 
service as an active member of the municipal fire department to 
which the relief association is associated or of the independent 
nonprofit firefighting corporation to which the relief 
association is subsidiary on the date that the volunteer 
firefighters' relief association is established and 
incorporated, the requirement that the member complete at least 
ten years of active membership with the volunteer firefighters' 
relief association or volunteer firefighters' account prior to 
separation from active service may be waived by the board of 
trustees of the relief association if the member completes at 
least ten years of inactive membership with the volunteer 
firefighters' relief association or volunteer firefighters' 
account prior to the payment of the service pension.  During the 
period of inactive membership, the member shall not be entitled 
to receive any disability benefit coverage, shall not be 
entitled to receive any additional service credit towards 
computation of a service pension, and shall be deemed to have 
the status of a person entitled to a deferred service pension 
pursuant to subdivision 7. 
     No municipality or nonprofit firefighting corporation is 
authorized to delegate the power to take final action in setting 
a service pension or retirement benefit amount or level to the 
board of trustees of the volunteer firefighters relief 
association or to approve in advance a service pension or 
retirement benefit amount or level equal to the maximum amount 
or level which this chapter would allow rather than a specific 
dollar amount or level.  
      No volunteer firefighters' relief association or volunteer 
firefighters' division or account of a partially salaried and 
partially volunteer firefighters' relief association is 
authorized to pay a service pension or disability benefit to any 
former member of the relief association if that person has not 
separated from active service with the fire department to which 
the volunteer firefighters' relief association is directly 
associated or with the independent nonprofit firefighting 
corporation to which the volunteer firefighters' relief 
association is subsidiary.  
    For the purposes of this chapter, "to separate from active 
service" means to cease to perform fire suppression duties and 
to cease to supervise fire suppression duties.  
    Sec. 22.  Minnesota Statutes 1982, section 490.124, 
subdivision 4, is amended to read: 
    Subd. 4.  [DISABILITY RETIREMENT.] From and after 
disability retirement date, a disabled judge shall be entitled 
to (a) continuation of his the judge's full salary payable by 
the judge's employer, as if his the judge's office were not 
vacated by retirement, for a period of up to two full years, and 
(b) but in no event beyond the judge's mandatory retirement 
date.  Thereafter a disability retirement annuity computed as 
provided in subdivision 1 shall be paid, provided that such the 
judge shall receive a minimum annuity of 25 percent of his the 
judge's final average compensation. 
    Sec. 23.  [356.001] [PURPOSE OF PUBLIC PLANS.] 
    Subdivision 1.  [EXCLUSIVE BENEFIT OF MEMBERS AND 
BENEFICIARIES.] The public plans and funds specified in 
subdivision 4 are established to provide for the retirement of 
their members and to provide funds for the beneficiaries of 
members in the event of death of a member.  The public plans and 
funds are established and shall be maintained for the exclusive 
benefit of the members and the beneficiaries of the members. 
Except as provided in subdivisions 2 and 3, no part of the 
moneys of the plans and funds shall revert to the plan or fund 
or be used for or diverted to purposes other than the exclusive 
benefit of the members or their beneficiaries.  
    Subd. 2.  [ALLOWABLE EXPENSES.] The necessary, reasonable, 
and direct expenses of maintaining, protecting, and 
administering the public plan or fund, as authorized in the laws 
governing the plan or fund, shall be considered as expenditures 
for the exclusive benefit of the members or their beneficiaries. 
    Subd. 3.  [EFFECT OF AMENDMENTS OR TERMINATION.] If a 
public plan or fund as defined in subdivision 4 is terminated or 
the plan or fund provisions are amended, no part of the moneys 
held in the plan or fund shall be used for or diverted to any 
purpose other than the exclusive benefit of the members or their 
beneficiaries, except as provided in this subdivision.  
     If a plan or fund is terminated, all affected members have 
a nonforfeitable interest in their benefits accrued and funded 
to date.  The value of the accrued benefits to be credited to 
the account of each affected member shall be calculated as of 
the date of termination and the funding ratio of the plan or 
fund applied to the accrued benefit of each affected member.  
     The board of trustees of the plan or fund shall then, as 
soon as administratively feasible, pay each eligible member or 
beneficiary on behalf of a member the amount in the member's 
account in a lump sum.  In the case of a member whose 
whereabouts is unknown, the board shall notify the member at the 
last known address by certified mail with return receipt 
requested advising the member of the member's right to a pending 
distribution.  If the member cannot be located in this manner, 
the board shall establish a custodial account for the member's 
benefit in a federally insured bank, savings and loan 
association, or credit union in which the member's account 
balance shall be deposited.  If the board receives proof of 
death of a member that is satisfactory to the board, the account 
balance shall be paid to the beneficiary of the member.  
     Subd. 4.  [COVERED PLANS AND FUNDS.] This section applies 
to all public pension and retirement plans and funds established 
pursuant to the laws of the state of Minnesota that receive 
contributions from moneys derived from taxation.  
    Subd. 5.  [CONSTRUCTION.] Nothing contained in this section 
shall be construed to authorize, or otherwise imply, a 
legislative policy or intent favoring the termination of any 
plan or fund to which this section applies.  
    Sec. 24.  [AUTHORITY TO PURCHASE SERVICE CREDIT FOR PERIODS 
OF VOLUNTARY UNPAID LEAVES OF ABSENCE.] 
    Any employee in the executive branch of state government 
who took an unpaid leave of absence as authorized by Laws 1982, 
Third Special Session chapter 1, article 2, section 8, shall be 
entitled to service credit for the period of the leave of 
absence upon payment to the fund before July 1, 1984.  The 
amount of the payment shall include the applicable employee, 
employer and employer additional contributions in effect for the 
period of leave.  The payment shall be based on the member's 
average monthly salary upon return to service following the 
leave and shall be without interest.  Repayment shall be 
accompanied by a copy of the approval of leave by the appointing 
authority.  
    The executive director of the retirement system may require 
additional documentation as necessary.  
    Sec. 25.  Laws 1983, chapter 84, section 1, is amended to 
read: 
    Section 1.  [PENSION COVERAGE.] 
    Notwithstanding Minnesota Statutes, section 353.64, 
subdivision 1, or any other general or special law to the 
contrary, a person employed by the county of Polk as a deputy 
sheriff, on the effective date of this act shall be deemed to 
have been a member of the public employees police and fire fund 
established by Minnesota Statutes, sections 353.63 to 353.68 and 
not of the Crookston police relief association for the period 
from January 1, 1953 November 1, 1952 to December 31 January 15, 
1957, when that person was employed as an officer by the 
Crookston police department.  The amount and manner of payment 
shall be governed by the provisions of Laws 1982, chapter 578, 
article II, section 2, subdivisions 1 to 3, as amended.  Any 
employee contributions made to the Crookston policeman's relief 
association shall be transferred to the public employees police 
and fire fund as a portion of the employee payment.  Upon 
receipt of the required amounts by the public employees police 
and fire fund, credit shall be given to the officer for service 
as a member for the period from January 1, 1953 to December 31, 
1957 specified.  
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes, sections 422A.05, subdivision 7; and 
422A.23, subdivision 3; and Laws 1982, chapter 519, section 4, 
are repealed.  
    Sec. 27.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
    This act is effective the day following final enactment, 
subject to the following conditions.  Sections 1 and 5 apply to 
applications for refunds filed after July 1, 1983.  Section 8 
and the repeal of Laws 1982, chapter 519, section 4, are 
retroactive to July 1, 1982.  Sections 10, 16, and 23 are 
retroactive to January 1, 1983.  Sections 18, 19, and 20 are 
effective upon approval by the Minneapolis city council and 
compliance with Minnesota Statutes, section 645.021. 
    Approved June 7, 1983