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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1985 

                        CHAPTER 261-H.F.No. 729 
           An act relating to retirement; public plans generally; 
          amending Minnesota Statutes 1984, sections 69.011, 
          subdivision 1; 69.26; 353.01, subdivision 2a; 353.34, 
          by adding a subdivision; 423A.02; 423A.15; 424A.02, 
          subdivisions 6 and 9, and by adding a subdivision; and 
          Laws 1965, chapter 592, section 4, as amended; Laws 
          1969, chapters 576, sections 3, subdivision 1; and 4, 
          subdivision 1; 950, sections 1, subdivision 1, as 
          amended; and 4, as amended; Laws 1981, chapter 68, 
          section 42, subdivision 1; Laws 1982, chapter 574, 
          sections 3, subdivision 9; and 5; Laws 1983, chapter 
          100, section 1; and Laws 1984, chapters 564, section 
          48; and 574, section 18; proposing coding for new law 
          in Minnesota Statutes, chapter 423A; repealing Laws 
          1945, chapter 277; Laws 1951, chapter 499; Laws 1955, 
          chapter 75; Laws 1965, chapter 190; Laws 1967, chapter 
          775; Laws 1969, chapter 138; Laws 1975, chapter 120; 
          Laws 1978, chapter 563, section 8; Laws 1979, chapter 
          216, sections 27 to 43; Laws 1980, chapter 600, 
          section 16; Laws 1981, chapter 224, section 236; and 
          Laws 1982, chapter 578, article 3, section 18.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 69.011, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] Unless the language or 
context clearly indicates that a different meaning is intended, 
the following words and terms shall for the purposes of this 
chapter and chapters 423, 424 and 424A have the meanings 
ascribed to them: 
    (a) "Commissioner" means the commissioner of revenue. 
    (b) "Municipality" means any home rule charter or statutory 
city, organized town or park district subject to chapter 398, 
and the University of Minnesota.  
    (c) "Minnesota Firetown Premium Report" means a form 
prescribed by the commissioner containing space for reporting by 
insurers of fire, lightning, sprinkler leakage and extended 
coverage premiums received upon risks located or to be performed 
in this state less return premiums and dividends. 
    (d) "Firetown" means the area serviced by any municipality 
having a qualified fire department or a qualified incorporated 
fire department having a subsidiary volunteer firefighters 
relief association. 
    (e) "Assessed Property Valuation" means latest available 
assessed value of all property in a taxing jurisdiction, whether 
the property is subject to taxation, or exempt from ad valorem 
taxation obtained from information which appears on abstracts 
filed with the commissioner of revenue or equalized by the state 
board of equalization. 
    (f) "Minnesota Aid to Police Premium Report" means a form 
prescribed by the commissioner for reporting by each fire and 
casualty insurer of all premiums received upon direct business 
received by it in this state, or by its agents for it, in cash 
or otherwise, during the preceding calendar year, with reference 
to insurance written for insuring against the perils contained 
in auto liability-bodily injury, auto liability-property damage, 
and auto physical damage as reported in the Minnesota business 
schedule of the fire and casualty insurance companies annual 
financial statement which each insurer is required to file with 
the commissioner in accordance with the governing laws or 
regulations less return premiums and dividends. 
       (g) "Peace officer" means any person: 
       (1) Whose primary source of income derived from wages is 
from direct employment by a municipality or county as a law 
enforcement officer on a full time basis of not less than 30 
hours per week; 
      (2) Who has been employed for a minimum of six months prior 
to December 31 preceding the date of the current year's 
certification pursuant to subdivision 2, clause (b); 
       (3) Who is sworn to enforce the general criminal laws of 
the state and local ordinances; 
       (4) Who is licensed by the peace officers standards and 
training board and is authorized to arrest with a warrant; and 
     (5) Who is a member of a local police relief association to 
which section 69.77 applies or the public employees police and 
fire fund. 
    (h) "Full time equivalent number of peace officers 
providing contract service" means the integral or fractional 
number of peace officers which would be necessary to provide the 
contract service if all peace officers providing service were 
employed on a full time basis as defined by the employing unit 
and the municipality receiving the contract service. 
    (i) "Retirement benefits other than a service pension"  
means any disbursement authorized pursuant to section 424.05, 
subdivision 3, clauses (2), (3) and (4).  
    (j) "Municipal clerk, municipal clerk-treasurer or county 
auditor" means the person who was elected or appointed to the 
specified position or, in the absence of the person, another 
person who is designated by the applicable governing body.  In a 
park district the clerk is the secretary of the board of park 
district commissioners.  In the case of the University of 
Minnesota, the clerk is that official designated by the board of 
regents.  
    Sec. 2.  Minnesota Statutes 1984, section 69.26, is amended 
to read: 
    69.26 [RELIEF ASSOCIATIONS SELF GOVERNING.] 
    Subdivision 1.  Each relief association shall be organized, 
operated, and maintained in accordance with its own articles of 
incorporation and bylaws, by firefighters, as defined in section 
69.27, who are members of the fire departments. Each association 
shall have power to regulate its own management and its own 
affairs, and all additional corporate powers which may be 
necessary or useful; subject to the regulations and restrictions 
of the laws of this state pertaining to corporations not 
inconsistent herewith. 
     Subd. 2.  Each relief association may provide for the 
participation of retired members of the fire departments in the 
governance of the association as each association deems 
appropriate.  The bylaws of the associations may be amended to 
provide retired members the right to vote, to be elected to the 
board and to pay dues. 
    Sec. 3.  Minnesota Statutes 1984, section 353.01, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [INCLUDED EMPLOYEES.] The following persons are 
included in the meaning of "public employee": 
    (a) Elected or appointed officers and employees of elected 
officers. 
    (b) District court reporters. 
    (c) Officers and employees of the public employees 
retirement association. 
    (d) Employees of the League of Minnesota Cities. 
    (e) Officers and employees of public hospitals, owned or 
operated by or an integral part of, any governmental subdivision 
or governmental subdivisions. 
    (f) Employees of a school district who receive separate 
salaries for driving their own buses. 
    (g) Employees of the Association of Minnesota Counties. 
    (h) Employees of the Metropolitan Inter-County Association. 
    (i) Employees of the Minnesota Municipal Utilities 
Association. 
    (j) Employees of the metropolitan airports commission if 
employment initially commences on or after July 1, 1979. 
    (k) Employees of the Minneapolis employees retirement fund, 
if employment initially commences on or after July 1, 1979. 
    (l) Employees of the Range Association of Municipalities 
and Schools. 
    (m) Employees of the soil and water conservation districts. 
    (n) Employees of a county historical society.  
    Sec. 4.  Minnesota Statutes 1984, section 353.34, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [DEFERRED ANNUITY; CERTAIN FORMER MUNICIPAL 
COURT JUDGES.] Any person who qualified for membership in the 
association solely because of service as a municipal court 
judge, whose service as a municipal court judge was terminated 
by Laws 1971, chapter 951, section 9, and who elected to leave 
his or her accumulated deductions in the fund to qualify for a 
deferred annuity, may receive a deferred early retirement 
annuity under section 353.30, subdivisions 1, 1a, 1b, or 1c, 
notwithstanding the law in effect on the date of his or her 
termination of public service. 
    Sec. 5.  Minnesota Statutes 1984, section 423A.02, is 
amended to read: 
    423A.02 [LOCAL POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 
AMORTIZATION STATE AID.] 
    Subdivision 1.  Any municipality in which is located a 
local police or salaried firefighters' relief association to 
which the provisions of section 69.77, apply, unless the 
municipality has adopted a municipal resolution retaining the 
local relief association pursuant to section 423A.01, 
subdivision 1, shall be entitled upon annual application on or 
before the date specified as required by the commissioner of 
finance to receive local police and salaried firefighters' 
relief association amortization state aid if the municipality 
and the appropriate relief association both comply with the 
applicable provisions of sections 69.031, subdivision 5, 69.051, 
subdivisions 1 and 3, and 69.77.  The amount of local police and 
salaried firefighters' relief association amortization state aid 
to which a municipality is entitled annually shall be an amount 
equal to the level annual dollar amount required to amortize, by 
December 31, 2010, the unfunded accrued liability of the special 
fund of the appropriate relief association as reported in 
the most recent December 31, 1978, actuarial valuation of the 
relief association prepared pursuant to Minnesota Statutes 1978, 
sections 356.215 and 356.216, and filed with the commissioner of 
commerce on the date of final enactment of Laws 1980, chapter 
607, reduced by the dollar amount required to pay the interest 
on the unfunded accrued liability of the special fund of the 
relief association for the calendar year next following the date 
of final enactment of Laws 1980, chapter 607, 1981 set at the 
rate specified in Minnesota Statutes 1978, section 356.215, 
subdivision 4, clause (4).  Payment of local police and salaried 
firefighters' relief association amortization state aid to 
municipalities shall be made directly to the municipalities 
involved in four equal installments on March 15, July 15, 
September 15 and November 15 annually.  Upon receipt of the 
local police and salaried firefighters' relief association 
amortization state aid, the municipal treasurer shall transmit 
the aid amount to the treasurer of the local relief association 
for immediate deposit in the special fund of the relief 
association.  The commissioner of finance shall prescribe and 
periodically revise the form for and content of the annual 
application for the local police and salaried firefighters' 
relief association amortization state aid.  The amounts required 
to pay the local police and salaried firefighters' relief 
association amortization state aid are hereby annually 
appropriated from the general fund to the commissioner of 
finance. 
    Subd. 2.  Any municipality which has qualified for 
amortization state aid under subdivision 1 shall continue upon 
application to be entitled to receive amortization state aid and 
supplementary amortization state aid authorized by Laws 1984, 
chapter 564, section 48, after the local police or salaried 
firefighters' relief association has been consolidated into the 
public employees police and fire fund. 
    Sec. 6.  [423A.07] [ADDITIONS TO BOARD.] 
    Notwithstanding any other law, each local police and 
salaried firefighters relief association may amend its bylaws 
and its articles of incorporation, as necessary, to provide for 
the inclusion of retirees on its board. 
    Upon adoption of the amendments, the relief association 
must file a copy of the amended bylaws with the executive 
secretary of the legislative commission on pensions and 
retirement.  A relief association amending its articles of 
incorporation must comply with any statutory requirements 
pertaining to the filing of amended articles of incorporation. 
    Sec. 7.  Minnesota Statutes 1984, section 423A.15, is 
amended to read: 
    423A.15 [EFFECT OF PROVISIONS FOR EXISTING DISABILITY 
BENEFIT RECIPIENTS.] 
    The provisions of section 423A.06 shall apply to any member 
of any applicable local relief association in active service on 
or after March 24, 1982.  The provisions of section 423A.11 
shall apply to any person receiving a disability benefit from a 
local relief association on or after March 24, 1982.  The 
provisions of section 423A.12 shall apply to any person who 
returns to active employment as a police officer or firefighter, 
whichever is applicable, after receipt of a permanent disability 
benefit on or after March 24, 1982.  The provisions of section 
423A.14 shall apply to any person who first commences receipt of 
a disability benefit after March 24, 1982.  
    Sec. 8.  Minnesota Statutes 1984, section 424A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENT OF SERVICE PENSIONS; NONASSIGNABILITY.] 
The method of calculating service pensions shall be applied 
uniformly for all years of active service and credit shall be 
given for all years of active service, except as otherwise 
provided in this section.  No service pension shall be paid to 
any person while the person remains an active member of the 
respective fire department, and no person who is receiving a 
service pension shall be entitled to receive any other benefits 
from the special fund of the relief association.  No service 
pension or ancillary benefits paid or payable from the special 
fund of a relief association to any person receiving or entitled 
to receive a service pension or ancillary benefits shall be 
subject to garnishment, judgment, execution or other legal 
process, except as provided in section 518.611.  No person 
entitled to a service pension or ancillary benefits from the 
special fund of a relief association may assign any service 
pension or ancillary benefit payments, nor shall the association 
have the authority to recognize any assignment or pay over any 
sum which has been assigned. 
    Sec. 9.  Minnesota Statutes 1984, section 424A.02, 
subdivision 9, is amended to read: 
    Subd. 9.  [LIMITATION ON ANCILLARY BENEFITS.] Any relief 
association may pay ancillary benefits which would constitute an 
authorized disbursement as specified in section 424A.05 subject 
to the following limitations: 
    (a) With respect to a relief association in which governing 
bylaws provide for a lump sum service pension to a retiring 
member, no ancillary benefit may be paid to any former member or 
paid to any person on behalf of any former member after the 
former member (1) terminates active service with the fire 
department and active membership in the relief association; and 
(2) commences receipt of a service pension as authorized 
pursuant to this section; and 
    (b) With respect to any relief association, no ancillary 
benefit paid or payable to any member, to any former member, or 
to any person on behalf of any member or former member, may 
exceed in amount the total earned service pension of the member 
or former member.  The total earned service pension is shall be 
calculated using the service pension amount specified in the 
bylaws of the relief association and the years of service 
credited to the member or former member.  The years of service 
are shall be determined as of (1) the date the member or former 
member became entitled to the ancillary benefit; or (2) the date 
the member or former member died entitling a survivor or the 
estate of the member or former member to an ancillary benefit.  
The survivor ancillary benefit may shall be calculated (1) 
without regard to whether the member or former member had 
attained the minimum amount of service and membership credit 
specified in the governing bylaws; and (2) without regard to the 
percentage amounts specified in subdivision 2; except that the 
bylaws of any relief association may provide for the payment of 
a survivor benefit in an amount not to exceed five times the 
yearly service pension amount specified in the bylaws on behalf 
of any member who dies before having performed five years of 
active service in the fire department with which the relief 
association is affiliated. 
    Sec. 10.  Minnesota Statutes 1984, section 424A.02, is 
amended by adding a subdivision to read:  
    Subd. 12.  [TRANSFER OF SERVICE CREDIT TO NEW 
DISTRICT.] Notwithstanding the requirements of subdivision 1 or 
any other law, a member of a fire department which is disbanded 
upon formation of a fire district to serve substantially the 
same geographic area, who serves as an active firefighter with 
the new district fire department, and is a member of the 
district firefighters' relief association shall be entitled to a 
nonforfeitable service pension from the new relief association 
upon completion of a combined total of 20 years active service 
in the disbanded and the new departments.  The amount of the 
service pension shall be based upon years of service in the new 
department only, and shall be in an amount equal to the accrued 
liability for the appropriate years of service calculated in 
accordance with section 69.772, subdivision 2. 
    Sec. 11.  Laws 1969, chapter 950, section 1, subdivision 1, 
as amended by Laws 1978, chapter 720, section 19, and Laws 1982, 
chapter 450, section 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY FOR COVERAGE.] Any person who 
was employed by the county of Hennepin or its agencies, boards, 
commissions, authorities and committees prior to the effective 
date of this act April 14, 1982, as an employee or an officer in 
the classified service as defined in Laws 1965, Chapter 855, and 
amendatory and supplemental acts, or as an employee in the 
unclassified service, and who has served for five years as a 
county employee or an officer in the classified service, or as a 
county employee in the unclassified service, which need not 
necessarily be continuous, and which shall include time served 
as a county employee prior to June 8, 1965, if the person is an 
employee in the classified service, shall be entitled to elect 
to retain or obtain, whichever is applicable, coverage by the 
Hennepin county supplemental retirement program.  The election 
to retain or obtain coverage may be exercised only once.  The 
election to retain coverage shall be exercised within 90 days of 
the effective date of this act.  The election to obtain coverage 
and shall be exercised within 30 days of the date on which the 
person first becomes entitled to elect to obtain coverage.  No 
person hired, rehired, or reinstated by the county as an 
employee in the classified or unclassified service on or after 
April 14, 1982, shall be eligible for coverage by the Hennepin 
county supplemental retirement program. 
    Sec. 12.  Laws 1969, chapter 950, section 4, as amended by 
Laws 1975, chapter 153, section 2, and Laws 1982, chapter 450, 
section 4, is amended to read: 
    Sec. 4.  [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF 
SHARES.] 
    When requested to do so, in writing, on forms provided by 
the county, by a participant, surviving spouse, a guardian of a 
surviving child or an estate, whichever is applicable, the 
county of Hennepin shall redeem shares in the accounts of the 
Minnesota supplemental investment fund standing in a 
participant's share account record under the following 
circumstances and in accordance with the laws and regulations 
governing the Minnesota supplemental investment fund: 
    (1) A participant who has reached the age of at least 58 
years and who is no longer employed by the county of Hennepin 
shall be entitled to receive the cash realized on the redemption 
of the shares to the credit of the participant's share account 
record of the person.  The participant may direct request the 
redemption of not more than 20 percent of all or a portion of 
the shares in the participant's share account record of the 
person in any one year, but may not direct request more than one 
redemption in any one calendar month; provided, however, that 
the board of commissioners of the county of Hennepin may, upon 
application, in their sole discretion permit greater withdrawals 
in any one year.  If only a portion of the shares in the 
participant's share account record is requested to be redeemed 
the person may request to redeem not less than 20 percent of the 
shares in any one calendar year and the redemption must be 
completed in no more than five years.  An election is 
irrevocable except that a participant may request an amendment 
of the election to redeem all of the person's remaining shares. 
All requests under this paragraph are subject to application to 
and approval of the Hennepin county board, in its sole 
discretion. 
    (2) A participant who has terminated employment with the 
county of Hennepin on account of total and permanent disability 
shall be entitled to receive the cash realized on the redemption 
of the shares to the credit of the participant's share account 
record of the person.  The board of commissioners of the county 
of Hennepin shall make the initial determination of whether the 
participant is totally and permanently disabled, but any 
aggrieved party may commence an action in the district court for 
Hennepin county for a review de novo of the decision of the 
county board.  The proceedings in district court shall conform 
to the Minnesota rules of civil procedure.  An appeal may be 
taken to the supreme court from any final order or decision of 
the district court in the same manner as in other civil 
actions.  The participant may direct the redemption of all or a 
portion of the shares in the participant's share account record 
of the person, but in no event may the participant direct more 
than one redemption in each calendar month.  In the event that 
the person becomes no longer totally and permanently disabled, 
the person shall owe no restitution to the county or any fund 
for a redemption directed pursuant to this paragraph. 
    If only a portion of the shares in the participant's share 
account record is elected to be redeemed, the disabled person 
may direct the redemption of not more than 20 percent of the 
shares in any one year; provided, however, that the board of 
commissioners of the county of Hennepin may, upon application, 
in their sole discretion permit greater withdrawals in any one 
year. 
    (3) In the event of the death of a participant leaving a 
surviving spouse, the surviving spouse shall be entitled to 
receive the cash realized on the redemption of all or a portion 
of the shares in the participant's share account record of the 
deceased spouse, but in no event may the spouse direct request 
more than one redemption in each calendar month year.  If only a 
portion of the shares in the participant's share account record 
is elected requested to be redeemed, the surviving spouse 
may direct request the redemption of not more less than 20 
percent of the shares in any one calendar year; provided, 
however, that the board of commissioners of Hennepin county may, 
upon application, in their sole discretion permit greater 
withdrawals in any one year.  Redemption must be completed in no 
more than five years.  An election is irrevocable except that 
the surviving spouse may request an amendment of the election to 
redeem all of the participant's remaining shares.  All requests 
under this paragraph are subject to application to and approval 
of the Hennepin county board, in their sole discretion.  Upon 
the death of the surviving spouse, any shares remaining in the 
participant's share account record shall be redeemed by the 
county of Hennepin and the cash realized therefrom distributed 
to the estate of the surviving spouse. 
    (4)(3) In the event of the death of a participant leaving 
no surviving spouse, but leaving a minor surviving child or 
minor surviving children, the guardianship estate of the minor 
child or the guardianship estates of the minor children shall be 
entitled to receive the cash realized on the redemption of all 
shares to the credit of the participant's share account record 
of the deceased participant.  In the event of minor surviving 
children, the cash realized shall be paid in equal shares to the 
guardianship estates of the minor surviving children. 
    (5)(4) In the event of the death of a participant leaving 
no surviving spouse and no minor surviving children, the estate 
of the deceased participant shall be entitled to receive the 
cash realized on the redemption of all shares to the credit of 
the participant's share account record of the deceased 
participant. 
    (6) A participant who has terminated employment with the 
county of Hennepin, who does not qualify pursuant to the 
provisions of paragraphs (1) through (5) and who became a 
participant in the Hennepin county supplemental retirement 
program prior to or after the effective date of this act and who 
previously had not redeemed any shares in the program shall be 
entitled to receive the total amount of the cash realized on the 
redemption of all shares to the credit of the participant's 
share account record. 
    Sec. 13.  Laws 1983, chapter 100, section 1, is amended to 
read:  
    Section 1.  [WITHDRAWAL FROM PARTICIPATION.] 
    Notwithstanding Laws 1982, chapter 450, or any other law to 
the contrary, a Hennepin county employee currently participating 
in the Hennepin county supplemental retirement program pursuant 
to Laws 1982, chapter 450 may, within a period of 180 days after 
the effective date of this section, in the event of an 
unforeseeable emergency, apply to the county to discontinue 
participation in the program.  Employees who are no longer 
participating in the program may apply for the redemption of all 
shares credited to their share account record.  Applications are 
subject to approval of the Hennepin county board of 
commissioners in its sole discretion.  For the purposes of this 
section, the term "unforeseeable emergency" shall mean a severe 
financial hardship to the participant resulting from a sudden 
and unexpected illness or accident of the participant or a 
person dependent upon the participant, loss of participant's 
property due to casualty, or other similar extraordinary and 
unforeseeable circumstances arising as a result of events beyond 
the control of the participant.  Applications based on 
foreseeable expenditures normally budgetable shall not be 
approved.  A participant exercising the option provided by this 
section shall be ineligible for further participation in the 
supplemental retirement program.  
    Sec. 14.  Laws 1981, chapter 68, section 42, subdivision 1, 
is amended to read:  
    Sec. 42.  [THIEF RIVER FALLS POLICE; SURVIVOR BENEFITS.] 
    Subdivision 1.  [BENEFITS.] Notwithstanding Minnesota 
Statutes, section 423.58, when a service pensioner, disability 
pensioner, deferred pensioner, or an active member of the Thief 
River Falls police relief association dies, leaving a surviving 
spouse, one or more surviving children, or both, the surviving 
spouse and child or children shall be entitled to a pension or 
pensions as follows:  
    (1) To the surviving spouse a pension in an amount not to 
exceed $250 $300 per month payable for life; provided, however, 
that if the surviving spouse shall remarry, the pension shall 
terminate as of the date of remarriage.  
    (2) To the child or children, until the child reaches the 
age of 18 years, a monthly benefit in an amount not to exceed 
$125 per month.  Payments for the benefit of any qualified 
dependent child under the age of 18 years shall be made to the 
surviving parent or if none, to the legal guardian of the 
child.  The maximum monthly benefit for any one family shall not 
exceed $750.  If the member shall die under circumstances which 
entitle his surviving spouse and dependent children to receive 
benefits under the workers' compensation law, the amounts so 
received by them shall not be deducted from the benefits payable 
under this section.  
    (3) Pensions payable to a surviving spouse pursuant to 
paragraph (1) shall be adjusted annually on January 1, 1986, and 
January 1 of each year thereafter in proportion to salary 
increases paid to active patrolmen by the city during the 
preceding calendar year, to a maximum of three and one-half 
percent in any calendar year.  In no event shall the pension of 
a surviving spouse exceed $600 per month. 
    Sec. 15.  Laws 1982, chapter 574, section 3, subdivision 9, 
is amended to read: 
    Subd. 9.  [PREVAILING PAY.] "Prevailing pay" means the 
monthly basic salary and the maximum holiday pay, multiplied by 
the maximum percentage of longevity.  Monthly basic salary, 
maximum holiday pay, and the percentage of longevity are 
determined in accordance with the unit employment contract of 
the police department in effect from time to time or, in the 
case of police officers not covered by the unit employment 
contract, by other contracts in effect from time to time.  No 
pension shall be reduced by reason of the employment of a 
successor at a lower prevailing pay.  In the case of police 
officers who are required to accept a position of lower rank 
prior to their retirement, the pension shall be based on the 
prevailing pay of the higher rank. 
    Sec. 16.  Laws 1982, chapter 574, section 5, is amended to 
read: 
    Sec. 5.  [VIRGINIA POLICE; BENEFIT CHANGES FOR 
PARTICIPANTS.] 
    If the bylaws so authorize, the following changes shall be 
effective: 
    (a) The service pension payable to persons who retired from 
the police department on or before January 12, 1966, shall be 
supplemented by $50 $100 per month. 
    (b) For any participant who terminated employment after 20 
or more years of service, the amount of the monthly service 
pension payable after the participant has attained the age of at 
least 50 years shall be equal to one-half of the prevailing pay 
of a police officer of the rank and position held by the 
participant for a period of at least six months prior to 
termination of service, or to the rank and position most 
analogous thereto, payable by the police department in each 
month during which the retired participant receives a service 
pension. 
    (c) The amount of a monthly disability pension shall be 
equal to one-half of the prevailing pay of a police officer of 
the rank and position held by the participant for a period of at 
least six months prior to his or her disability or the rank and 
position most analogous thereto, payable by the police 
department in each month during the period of the participant's 
disability, subject to any integration of benefits. 
    (d) The benefit paid to the surviving spouse of a 
participant who died on or before January 11, 1967, shall be 
increased by $25 $50 per month, until the surviving spouse's 
death or remarriage. 
    (e) The benefit paid to a surviving child shall be 
increased to $50 per child per month, subject to any limitation 
placed on the total amount of survivor's benefits. 
    Sec. 17.  Laws 1984, chapter 564, section 48, is amended to 
read: 
    Sec. 48.  [ANNUAL APPROPRIATION SUPPLEMENTARY AMORTIZATION 
STATE AID.] 
    There is appropriated and transferred from the general fund 
to the commissioner of finance, $1,000,000 annually for 
distribution among those local police and salaried firefighters 
relief associations municipalities that receive amortization 
state aid according to Minnesota Statutes, section 423A.02.  
Distribution shall be made according to that proportion the 
unfunded accrued liability of each relief association bears to 
the total unfunded accrued liabilities of all relief 
associations as reported in the most recent December 31, 1983, 
actuarial valuations of the relief associations that receive 
amortization state aid according to section 423A.02.  Moneys 
shall be distributed to the relief associations at the same time 
fire and police department state aid is distributed according to 
section 69.021. 
    Sec. 18.  Laws 1984, chapter 574, section 18, is amended to 
read: 
    Sec. 18.  [BUHL POLICE RETIREMENT BENEFITS.] 
    Notwithstanding the limitation contained in Minnesota 
Statutes, section 423.55 or any other law, the bylaws of the 
Buhl police relief association may be amended to provide for the 
payment of a an annual service pension equal to 65 85 percent of 
the monthly base pay of a member at for the 12-month period 
immediately preceding the time of retirement from the police 
department.  All other provisions of section 423.55 shall apply 
to the extent not inconsistent with this section. 
    In addition, the bylaws of the Buhl police relief 
association may be amended to provide for the recalculation of 
the service pension payable to a current retiree.  The increased 
service pension may be equal to 85 percent of the total pay of 
the retired member for the 12-month period immediately preceding 
the time of retirement from the police department. 
    Sec. 19.  [EVELETH POLICE AND FIREFIGHTERS; BENEFIT 
INCREASE.] 
    Notwithstanding any general or special law to the contrary, 
in addition to other benefits payable, retirement benefits 
payable to retired police officers and firefighters and the 
surviving spouses thereof by the Eveleth police and fire trust 
fund may be increased by $25 per month.  Increases may be made 
retroactive to January 1, 1985. 
    Sec. 20.  [NEW ULM POLICE RELIEF ASSOCIATION.] 
    Subdivision 1.  [BENEFIT INCREASE FOR RETIREES.] The New 
Ulm police relief association is authorized to pay any retired 
member of the association a supplemental benefit of $80 per 
month from the date the retired member is eligible to receive 
benefits from the association until the member reaches the age 
of 65 years.  This benefit shall be available to only those 
members retiring after the effective date of this section. 
    Subd. 2.  [FINANCING.] The cost of the additional benefit 
provided by subdivision 1 will be paid by a 0.75 percent 
increase in the payroll deduction of the covered payroll of 
members of the New Ulm police relief association.  Any cost of 
the additional retirement benefits not covered by the increase 
in payroll deduction shall be reimbursed to the association by 
the city of New Ulm. 
    Sec. 21.  [STEVENS COUNTY MEMORIAL HOSPITAL EMPLOYEES.] 
    Subdivision 1.  [REFUND OF CONTRIBUTIONS.] A member of the 
public employees retirement association who was employed by the 
Stevens county memorial hospital on the date the hospital was 
taken over by a private corporation or organization shall be 
paid a refund of accumulated employee and employer contributions 
made by or on behalf of the employee to the association, plus 
interest thereon at the rate of six percent per annum.  If an 
employee has previously received a refund of employee 
contributions, only the employer contributions plus the total 
interest shall be refunded.  No employer additional 
contributions are to be refunded. 
    Subd. 2.  [DEFERRED ANNUITY.] If an employee described in 
subdivision 1 had at least five years of allowable service 
credit, the employee may elect to receive, in lieu of the 
refund, a deferred annuity pursuant to Minnesota Statutes, 
section 353.34, subdivision 3, notwithstanding the length of 
service requirements contained therein.  An employee eligible 
for a deferred annuity who has previously received a refund of 
employee contributions may reinstate his or her eligibility for 
a deferred annuity by repaying the amount refunded, including 
any interest received, to the association. 
    Subd. 3.  [DEADLINE.] Refunds shall be paid or options 
exercised and repayments of refunds made prior to July 1, 1986. 
    Sec. 22.  [CITY OF ST. PAUL MODEL CITIES HEALTH CENTER 
PROJECT EMPLOYEES.] 
    Subdivision 1.  [REFUND OF CONTRIBUTIONS.] A member of the 
public employees retirement association who is employed by the 
city of St. Paul and assigned to the model cities health center 
project on the date the project is taken over by a private 
corporation or organization must, upon the employee's request, 
be paid a refund of accumulated employee and employer 
contributions made by or on behalf of the employee to the 
association, plus interest at the rate of six percent per year.  
If an employee has previously received a refund of employee 
contributions, only the employer contributions plus the total 
interest may be refunded.  No employer additional contributions 
are to be refunded. 
    Subd. 2.  [DEFERRED ANNUITY.] If an employee described in 
subdivision 1 had at least five years of allowable service 
credit, the employee may elect to receive, instead of the 
refund, a deferred annuity under Minnesota Statutes, section 
353.34, subdivision 3, notwithstanding the length of service 
requirements contained in that subdivision.  An employee 
eligible for a deferred annuity who has previously received a 
refund of employee contributions may reinstate his or her 
eligibility for a deferred annuity by repaying the amount 
refunded, including any interest received, to the association. 
    Subd. 3.  [DEADLINE.] Refunds must be paid or options 
exercised and repayments of refunds made within one year of the 
date the model cities health center project is taken over by a 
private corporation or organization. 
    Sec. 23.  [OWATONNA CITY HOSPITAL.] 
    Refunds authorized by Laws 1984, chapter 574, section 31, 
may be paid prior to July 1, 1985. 
    Sec. 24.  [TEMPORARY PROVISION; COUNTY HISTORICAL SOCIETY 
EMPLOYEES.] 
    Section 3 applies to county historical society employees 
first employed on or after July 1, 1985.  Employees first 
employed prior to July 1, 1985, may elect membership effective 
commencing on that date by filing notice of their election with 
the board of trustees of the association prior to September 1, 
1985.  Elected coverage shall not be retroactive for service 
prior to July 1, 1985, and no purchase of prior service credit 
shall be allowed. 
    Sec. 25.  [MOORHEAD POLICE AND FIREFIGHTERS; RETIREMENT 
COVERAGE FOR ACTIVE MEMBERS.] 
    Subdivision 1.  [TRANSFER OF COVERAGE.] Notwithstanding any 
other law, deferred recipients or active police officers and 
firefighters employed by the police and fire departments of the 
city of Moorhead on the effective date of sections 25 to 31 who 
receive their pension and retirement coverage from either the 
Moorhead police or firefighters relief association cease to be 
members of their respective association, and cease to accrue 
service credits, rights, or benefits from their respective 
relief association on August 1, 1985.  On August 1, 1985, active 
police officers and firefighters employed by the city of 
Moorhead who meet the requirements of Minnesota Statutes, 
section 353.64, become members of the public employees police 
and fire fund established pursuant to Minnesota Statutes, 
sections 353.63 to 353.68.  Their service before August 1, 1985, 
as police officers and firefighters with the city of Moorhead 
must be credited as allowable service by the public employees 
police and fire fund for purposes of Minnesota Statutes, section 
353.01, subdivision 16. 
    Subd. 2.  [CALCULATION OF LIABILITY.] The liability for 
service before August 1, 1985, to be transferred to the police 
and fire fund must be calculated by the actuary for the police 
and fire fund based on the following data for each active police 
officer and firefighter:  date of birth, date of entry into 
service, dates of breaks in service, and salaries for each of 
the highest five successive years of service.  The liability 
must be calculated as of August 1, 1985, as if each police 
officer and firefighter were a member of the police and fire 
fund from the original date of entry into service under the laws 
governing the police and fire fund on January 1, 1985.  The 
actuary of the police and fire fund shall calculate this 
liability before the approval of sections 25 to 31 by the city 
of Moorhead. 
    The legislative commission on pensions and retirement must 
approve the calculations of liabilities upon the recommendation 
of its actuary.  The actuary for the police and fire fund shall 
furnish documents, data, and materials requested by the 
commission and its actuary. 
    The city of Moorhead shall pay a required portion of the 
calculated liability to the police and fire fund.  The required 
portion shall be an amount equal to the percentage which the 
assets of the police and fire fund bear to the accrued liability 
of the fund as determined in the June 30, 1984, valuation of the 
fund. 
    The required portion of the liability for the service of 
the police officers and firefighters before August 1, 1985, must 
be added to the liability of the police and fire fund.  The city 
of Moorhead shall certify the records upon which the liability 
calculations are performed and shall amortize the amount of that 
added liability as provided in section 27, subdivision 2. 
    Sec. 26.  [RETIREMENT COVERAGE FOR CURRENT RECIPIENTS OF 
BENEFITS.] 
    Current recipients of retirement benefits, disability 
benefits, or survivor benefits paid by either relief association 
shall receive future benefits from the police and fire fund with 
future adjustments from the Minnesota postretirement investment 
fund, called the postretirement fund in sections 27 to 30, 
pursuant to Minnesota Statutes, section 11A.18. 
    The relief associations shall obtain estimates of reserves 
for current or deferred benefit recipients from the actuary of 
the police and fire fund.  The estimates must be of the reserves 
necessary to support a benefit in an amount equal to that 
received by each recipient in July 1985, plus future adjustments 
from the postretirement fund, assuming the recipient was 
retiring at his or her attained age as of July 31, 1985, from 
the police and fire fund on that date.  The calculation must be 
made using the interest assumption of the postretirement fund 
and the applicable police and fire fund mortality table.  For 
recipients with eligible spouses, the reserves must include the 
right of the spouse to receive a surviving spouse benefit as 
provided by the laws and the bylaws governing the relief 
association as of January 1, 1985. 
    The relief association shall compile a list of recipients 
to receive future benefit adjustments from the postretirement 
fund, called the postfund recipients and the corresponding 
required reserves for those recipients.  The relief association 
shall provide the board of the public employees retirement 
association with the list so that the board can pay the August 
1985 payments. 
    The accrued liability as of July 31, 1985, for all postfund 
recipients must be added to the liability of the police and fire 
fund and ceases to be the liability of each relief association.  
The police and fire fund shall transfer the required reserves 
for the postfund recipients to the postretirement fund by July 
31, 1985. 
    The required reserves for the January 1, 1986, increase 
determined using the interest assumption of the postretirement 
fund and the applicable police and fire fund mortality table 
shall be transferred by the police and fire fund to the 
postretirement fund on January 1, 1986.  If any assets remain in 
either the Moorhead police relief association or in the special 
fund of the Moorhead firefighters relief association after the 
transfer of assets for the postfund recipients, those assets 
must be transferred to the public employees retirement 
association to reduce the unfunded accrued liability resulting 
from transfer of the liability of the active employees.  If the 
assets transferred for the postfund recipients are insufficient, 
the city shall finance the remaining unfunded accrued liability 
as provided in section 27, subdivision 3. 
    Future adjustments, pursuant to Minnesota Statutes, section 
11A.18, must be calculated on the annuity or benefit amount 
payable by either relief association in July 1985.  For the 
purposes of determining and paying the January 1, 1986, 
adjustment from the postretirement fund, the adjustment must be 
calculated as though June 30, 1984, were the effective date of 
retirement for each postfund recipient. 
    Sec. 27.  [FINANCIAL REQUIREMENTS FOR CITY OF MOORHEAD.] 
    Subdivision 1.  [RECEIPT OF STATE AID.] Amortization state 
aid, fire state aid, or other money received by the city for 
pension purposes must be allocated by the city among the 
financial requirements of this section. 
    Subd. 2.  [FINANCIAL REQUIREMENTS OF POLICE AND FIRE FUND 
MEMBERS.] The city of Moorhead shall make the employer 
contribution to the police and fire fund on behalf of all active 
police officers and firefighters employed by the police and fire 
departments as required in Minnesota Statutes, section 353.65, 
subdivision 3. 
    In addition, the city shall make an additional contribution 
to the police and fire fund to amortize the unfunded accrued 
liability incurred by the police and fire fund as a result of 
the crediting of service before August 1, 1985.  The additional 
contribution must be the level annual dollar amount that is 
required to amortize by the year 2010 the unfunded accrued 
liability incurred as a result of the consolidation, using an 
interest assumption of eight percent.  The additional 
contribution is payable at the beginning of each fiscal year, 
commencing July 1, 1986.  Upon request of the city of Moorhead, 
the board may permit the city to make payments according to a 
different schedule. 
    Subd. 3.  [FINANCIAL REQUIREMENTS FOR POSTFUND RECIPIENTS.] 
The city of Moorhead shall amortize the unfunded accrued 
liability incurred by the police and fire fund as a result of 
the transfer of reserves by the police and fire fund to the 
postretirement fund for the postfund recipients.  That 
liability, if any, calculated by the police and fire fund 
actuary as provided in section 26, must be amortized and paid in 
the same manner as the unfunded liability incurred as a result 
of the consolidation, as provided in subdivision 2, except that 
the amortization period must be equal to the average life 
expectancy of the postfund recipients as of August 1, 1985.  The 
actuary of the police and fire fund shall determine the period 
of amortization based on the mortality tables applicable to the 
police and fire fund. 
    Subd. 4.  [LEVY AUTHORITY.] The city of Moorhead shall levy 
to provide for the financial requirements of subdivisions 2 and 
3.  Notwithstanding any other law, any levy required to provide 
the necessary financing is not included in any limitation as to 
rate or amount set by charter and is a special levy for purposes 
of Minnesota Statutes, section 275.50, subdivision 5, clause (o).
    Sec. 28.  [TERMINATION OF RELIEF ASSOCIATIONS.] 
    Subdivision 1.  [TRANSFER OF ASSETS.] All assets of the 
special fund of the Moorhead firefighters relief association and 
all assets of the Moorhead police relief association must be 
transferred to the public employees retirement association as 
provided in section 26.  The transfer of assets must include any 
accounts receivable, regardless of source.  Accounts payable on 
August 1, 1985, must also be transferred to the public employees 
retirement association.  The public employees retirement 
association is the successor in interest with respect to all 
claims by or against either relief association or the city of 
Moorhead arising from operation of the relief association, 
except (1) any claim against either relief association or any 
person connected with it in a fiduciary capacity, based on any 
acts by that person which were not performed in good faith and 
which constituted a breach of the person's obligation as a 
fiduciary, or (2) any judicial proceeding arising from the 
passage of sections 25 to 31.  As a successor in interest, the 
public employees retirement association may assert any 
applicable defense in any judicial proceeding which either 
relief association or the city of Moorhead would otherwise have 
been entitled to assert. 
    Subd. 2.  [TRANSFER OF RECORDS.] Before August 1, 1985, or 
as soon as possible, each relief association shall transfer to 
the police and fire fund original copies of all records and 
documents in its possession relating to the relief association 
and any of its members.  The city of Moorhead shall provide from 
time to time whatever additional relevant information the board 
may request. 
    Subd. 3.  [TERMINATION OF SPECIAL FUND.] Upon the transfer 
of the assets, liabilities, and records of the Moorhead 
firefighters relief association to the public employees 
retirement association, the Moorhead firefighters are no longer 
authorized to retain a special fund within their relief 
association, and the special fund ceases to exist as a legal 
entity.  Firefighters employed by the Moorhead fire department 
may retain the name "Moorhead firefighters relief association" 
as the name of their general fund. 
    Subd. 4.  [TERMINATION OF RELIEF ASSOCIATION.] Upon the 
transfer of the assets, liabilities, and records of the Moorhead 
police relief association to the public employees retirement 
association, the Moorhead police relief association ceases to 
exist as a legal entity. 
    Sec. 29.  [REVIEW OF PORTFOLIO BY STATE BOARD OF 
INVESTMENT.] 
    Before the transfer of assets to the public employees 
retirement association, the state board of investment may review 
the existing portfolio of the relief associations and require 
the liquidation of any assets deemed inappropriate for transfer. 
All assets must be transferred at market value. 
    Sec. 30.  [SAVING CLAUSE.] 
    Notwithstanding any other law, any person receiving a 
benefit from either relief association on or before the 
effective date of sections 25 to 31, who is working for a state 
or local unit of government on that date, and who has retirement 
coverage for that employment from either the Minnesota state 
retirement system or the public employees retirement association 
retains benefits accrued for that employment and is entitled to 
accrue future benefits for it despite the transfer of service 
credit for service as a Moorhead police officer or firefighter 
to the police and fire fund. 
    Sec. 31.  [REPEALER OF MOORHEAD SPECIAL LAWS.] 
    Laws 1945, chapter 277; Laws 1951, chapter 499; Laws 1955, 
chapter 75; Laws 1965, chapter 190; Laws 1967, chapter 775; Laws 
1969, chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 
563, section 8; Laws 1979, chapter 216, sections 27, 28, 29, 30, 
31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, and 43; Laws 
1980, chapter 600, section 16; Laws 1981, chapter 224, section 
236; and Laws 1982, chapter 578, article 3, section 18, are 
repealed. 
    Sec. 32.  Laws 1969, chapter 576, section 3, subdivision 1, 
is amended to read: 
    Sec. 3.  Subdivision 1.  In lieu of a service pension as 
provided for in Minnesota Statutes, Section 424.21, the fire 
department relief association may provide a service pension to a 
regularly employed full time member of the association as 
defined in Minnesota Statutes, Section 424.03, who has completed 
a period or periods of service in the fire department equal 
to 20 ten years or more, and after he has arrived at the age of 
50 years or more or would have attained 20 years of service had 
active membership continued, whichever is later, and has retired 
from the payroll of the fire department, such pension to be a 
sum equal to 50 26 percent, and in addition thereto, 2.6 percent 
for each year of service beyond ten years but not to exceed 20 
years plus one percent per year for each year of service beyond 
20 years, not to exceed a sum equal to 60 62 percent, of the 
salary as payable from time to time during the period of the 
pension payment to firemen of the highest grade, not including 
officers of the department, in the employ of the city of St. 
Louis Park, such pension to be payable for his natural life in 
conformity with the bylaws of the association. 
    Sec. 33.  Laws 1969, chapter 576, section 4, subdivision 1, 
is amended to read: 
    Sec. 4.  Subdivision 1.  In lieu of the disability pension 
and limitations provided for in Minnesota Statutes, Section 
424.20, the fire department relief association shall provide for 
disability benefits to a member of the association on active 
duty in the department of.  For members who have not completed 
20 years of service the disability amount is a sum equal to 50 
percent of the applicable salary.  For members who have 
completed 20 years of service the disability amount is a sum 
equal to 50 52 percent, and in addition thereto, one percent per 
year for each year of service performed in the department beyond 
20 years, not to exceed a sum equal to 60 62 percent, of the 
salary as payable from time to time during the period of pension 
payment to firemen of the highest grade, not including officers 
of the department, in the employ of the city of St. Louis Park, 
such pension to be payable for such periods of time and at such 
times as the bylaws of the association provide. 
    Sec. 34.  [BYLAW AMENDMENT.] 
    Pursuant to Minnesota Statutes, section 356.24, authority 
is granted to the St. Louis Park fire department relief 
association to amend its bylaws or articles as required for the 
purpose of providing a prorated survivor benefit to the 
surviving spouse and dependent children of a deceased retired 
firefighter who had at least ten but less than 20 years of 
service at the time of death.  The prorated benefit shall be in 
that proportion that the years of service of the decedent bears 
to 20 years.  
    Sec. 35.  [VESTED RIGHTS.] 
    No provision of sections 32 to 35 shall be construed as 
reducing or impairing benefits for members vested prior to the 
effective date of sections 32 to 35.  
    Those benefits include increases granted by resolution of 
the St. Louis Park city council pursuant to Laws 1980, chapter 
607, article XV, section 7.  Those increases were as follows:  
    (a) An additional 2.35 percent of the top firefighter 
salary shall be added to the service pension of members who have 
completed at least 20 years service. 
    (b) An additional 2.35 percent of the top firefighter 
salary shall be added to the disability benefits available to 
members who have completed at least 20 years of service. 
    Sec. 36.  [ALBERT LEA POLICE AND FIREFIGHTERS; 
REINSTATEMENT OF SURVIVORS' BENEFITS.] 
    Notwithstanding any law to the contrary, the Albert Lea 
police and firefighters relief associations are entitled to 
amend their bylaws to provide for the reinstatement of benefits 
to a surviving spouse who had remarried.  The surviving spouse 
benefit may be reinstated upon application following termination 
of the remarriage for any reason.  The reapplying person shall 
not be entitled to retroactive payments prior to the time of 
reapplication. 
    Sec. 37.  Laws 1965, chapter 592, section 4, as added by 
Laws 1969, chapter 644, section 2, and amended by Laws 1975, 
chapter 229, section 3, is amended to read:  
    Sec. 4.  [SURVIVORS' AND FUNERAL BENEFITS.] The association 
may pay survivors benefits to the surviving spouse and children 
under 18 years of age of deceased members of the association and 
funeral benefits in the manner and amounts prescribed by its 
bylaws, subject to the provisions of this section, or as 
provided in Minnesota Statutes, chapter 424A.  The widow 
surviving spouse or estate of a member who dies before his 
retirement from the fire department shall may receive a funeral 
benefit of not to exceed at least $1,350 payable in a lump sum 
upon the member's death and monthly payments of $135 from the 
death of the member until the widow's death or remarriage.  
The widow surviving spouse of a member who dies either before or 
following his retirement from the fire department shall receive 
monthly payments of not to exceed at least $135 from the death 
of the member until the widow's surviving spouse's death or 
remarriage.  Each child of a deceased member of the association 
shall receive monthly payments from the death of the member 
until the child attains 18 years of age in the amount of not to 
exceed at least $27 per month.  The total amount paid to the 
children of any member shall not exceed $135 per month five 
times the monthly amount payable to one child. 
    Sec. 38.  [EFFECTIVE DATE.] 
    Sections 2, 4 to 10, 17, 21 to 23, and 32 are effective the 
day following final enactment.  Section 10 is retroactive to 
January 1, 1985.  Section 1 is effective May 31, 1985.  Sections 
3 and 24 are effective July 1, 1985.  Sections 4 and 5 are 
effective January 1, 1986.  Sections 11 to 13 are effective on 
approval by the Hennepin county board.  Section 14 is effective 
retroactive to January 1, 1985, on approval by the Thief River 
Falls city council.  Sections 15 and 16 are effective 
retroactive to January 1, 1985, on approval by the Virginia city 
council.  Section 18 is effective on approval by the Buhl city 
council.  Section 19 is effective retroactive to January 1, 
1985, on approval by the Eveleth city council.  Section 20 is 
effective on approval by the New Ulm city council.  Sections 25 
to 31 are effective on approval by the Moorhead city council.  
Sections 32 to 35 are effective on approval by the St. Louis 
Park city council.  Section 36 is effective on approval by the 
Albert Lea city council.  All local approvals must comply with 
Minnesota Statutes, section 645.021. 
    Approved May 30, 1985