Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 296-S.F.No. 317 
           An act relating to retirement; police and salaried 
          firefighters relief associations; authorizing the 
          voluntary consolidation of local relief associations 
          with the public employees police and fire fund; 
          authorizing the individual election of applicable 
          benefit coverage upon consolidation; amending 
          Minnesota Statutes 1986, sections 353.01, subdivisions 
          2b, 10, and 16; 353.271; 353.64, subdivision 1; and 
          353.65, subdivision 1; proposing coding for new law in 
          Minnesota Statutes, chapters 353 and 356; proposing 
          coding for new law as Minnesota Statutes, chapters 
          353A and 353B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 353.01, 
subdivision 2b, is amended to read:  
    Subd. 2b.  [EXCLUDED EMPLOYEES.] The following persons are 
excluded from the meaning of "public employee": 
    (a) Persons employed for professional services where such 
service is incidental to regular professional duties. 
    (b) Election officers. 
    (c) Independent contractors and their employees. 
    (d) Patient and inmate help in governmental subdivision 
charitable, penal and correctional institutions. 
    (e) Members of boards, commissions, bands and others who 
serve the governmental subdivision intermittently. 
    (f) Employees who hold positions of an essentially 
temporary or seasonal character, provided such employment does 
not continue for a period in excess of 120 working days in any 
calendar year.  Immediately following the expiration of such 120 
working days if such employees continue in public service and 
earn in excess of $325 in any one calendar month, the department 
heads must then report all such employees for membership and 
must cause employee contributions to be made on behalf of such 
employees in accordance with section 353.27, subdivision 4, and 
they shall remain members until termination of public service. 
    (g) Part-time employees who receive monthly compensation 
not exceeding $325, and part-time employees and elected 
officials whose annual compensation is stipulated in advance to 
be not more than $3,900 per year, except that members shall 
continue their membership until termination of public service. 
    (h) Persons who first occupy an elected office after March 
1, 1978, the compensation for which does not exceed $325 per 
month. 
    (i) Emergency employees who are employed by reason of work 
caused by fire, flood, storm or similar disaster. 
    (j) Employees who by virtue of their employment as an 
officer or employee of a governmental subdivision are required 
by law to be a member of and to contribute to any other pension, 
relief or retirement fund established for the benefit of 
officers and employees of a governmental subdivision, except the 
state employees retirement fund, the teachers retirement fund, 
the state patrol retirement fund, the Duluth teachers retirement 
fund association, the Minneapolis teachers retirement fund 
association, the St. Paul teachers retirement fund association, 
the Minneapolis employees retirement fund, the Minnesota state 
retirement system correctional officers retirement plan or any 
police or firefighters relief association governed by section 
69.77 which has not consolidated with the public employees 
police and fire fund and for which the employee has not elected 
coverage by the public employees police and fire fund benefit 
plan as provided in sections 8 to 17, other than as an act of 
the legislature has specifically enabled participation by 
employees of a designated governmental subdivision in a plan 
supplemental to the public employees retirement association; 
provided that.  This clause shall not prevent a person 
from being a member of and contributing to the public employees 
retirement association and also belonging to or contributing to 
another public pension fund for other service occurring during 
the same period of time. 
    (k) Police matrons employed in a police department of any 
city who are transferred to the jurisdiction of a joint city and 
county detention and corrections authority. 
    (l) Chaplains and nuns who have taken a vow of poverty as 
members of a religious order. 
    (m) Full-time students who are enrolled and are regularly 
attending classes at an accredited school, college or 
university; provided, no person employed full time by a 
governmental subdivision shall be exempt under this paragraph. 
    (n) Resident physicians, medical interns and pharmacist 
interns who are serving in public hospitals. 
    (o) Appointed or elected officers, paid entirely on a fee 
basis, and who were not members on June 30, 1971. 
    (p) Nothing in Laws 1973, chapter 753 shall be interpreted 
to impair or revoke any option exercised under Laws 1963, 
chapter 793. 
    (q) Persons employed in subsidized on-the-job training, 
work experience or public service employment as enrollees under 
the federal Comprehensive Employment and Training Act from and 
after March 30, 1978, unless the person has as of the later of 
March 30, 1978 or the date of employment sufficient service 
credit in the retirement fund to meet the minimum vesting 
requirements for a deferred retirement annuity, or the employer 
agrees in writing on forms prescribed by the executive director 
to make the required employer contributions, including any 
employer additional contributions, on account of that person 
from revenue sources other than funds provided under the federal 
Comprehensive Training and Employment Act, or the person agrees 
in writing on forms prescribed by the executive director to make 
the required employer contributions in addition to the required 
employee contribution. 
    (r) Town, city or county assessors elected or appointed 
pursuant to chapter 273 who do not receive compensation in 
excess of $325 per month from any one employing governmental 
subdivision or who are employed pursuant to an employment 
contract which sets forth the total compensation to be paid and 
the length of service, not to exceed three months in duration, 
required for the performance of the contract and which was 
entered into in advance of the commencement of employment. 
    (s) A person Persons holding a part time adult 
supplementary vocational technical school license who renders 
render part time teaching service in a vocational technical 
school if (1) the service is incidental to the person's regular 
nonteaching occupation; and (2) the applicable vocational 
technical school stipulates annually in advance that the part 
time teaching service will not exceed 300 hours in a fiscal 
year; and (3) the part time teaching service actually does not 
exceed 300 hours in a fiscal year. 
    (t) A person Persons exempt from licensure pursuant to 
section 125.031. 
    Sec. 2.  Minnesota Statutes 1986, 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.  For any 
public employee who has prior service covered by a local police 
or firefighters relief association which has consolidated with 
the public employees police and fire fund and who has elected 
coverage by the public employees police and fire fund benefit 
plan as provided in section 15 following the consolidation, the 
term means the rate of salary upon which member contributions to 
the special fund of the relief association were made prior to 
the effective date of the consolidation as specified in the 
applicable general law, special law, and bylaw provisions 
governing the relief association as of the date of the 
initiation of the consolidation procedure and the actual 
periodical compensation of the public employee after the 
effective date of the consolidation. 
    Sec. 3.  Minnesota Statutes 1986, section 353.01, 
subdivision 16, is amended to read:  
    Subd. 16.  [ALLOWABLE SERVICE.] "Allowable service" means: 
    (1) Service during years of actual membership in the course 
of which employee contributions were currently made; periods 
covered by payments in lieu of salary deductions made as 
provided in section 353.35, and service in years during which 
the public employee was not a member but for which the member 
later elected, while a member, to obtain credit by making 
payments to the fund as permitted by any law then in effect. 
    (2) Any period of authorized leave of absence with pay from 
which deductions for employee contributions are made, deposited, 
and credited to the fund. 
    (3) Any period of authorized leave of absence without pay 
which does not exceed one year, and during or for which a member 
obtained credit by payments to the fund made in lieu of salary 
deductions, provided that such payments are made in an amount or 
amounts based on the member's average salary on which deductions 
were paid (a) for the last six months of public service, or (b) 
that portion of the last six months while the member was in 
public service, to apply to the period in either case 
immediately preceding commencement of such leave of absence; 
provided, however, that if the employee elects to pay employee 
contributions for the period of any leave of absence without 
pay, or for any portion thereof, the employee shall also, as a 
condition to the exercise of such election, pay to the fund an 
amount equivalent to both the required employer and additional 
employer contributions therefor, such payment to be made 
currently or within one year from the date the leave of absence 
terminates, unless the employer by appropriate action of its 
governing body and made a part of its official records, prior to 
the date of the first payment of such employee contribution, 
certifies to the association in writing that it will cause to be 
paid such employer and additional employer contributions from 
the proceeds of a tax levy made pursuant to section 353.28.  
Payments under this clause shall include interest at the rate of 
six percent per annum from the date of the termination of the 
leave of absence to the date payment is made. 
    (4) Any period during which a member is on an authorized 
sick leave of absence, without pay limited to one year, or an 
authorized temporary layoff. 
    (5) Any period during which a member is on an authorized 
leave of absence to enter military service, provided that the 
member returns to public service upon discharge from military 
service pursuant to section 192.262, and pays into the fund 
employee contributions based upon the employee's salary at the 
date of return from military service.  After June 30, 1983 
payment must be made within five years of the date of discharge 
from the military service.  The amount of these contributions 
shall be in accord with the contribution rates and salary 
limitations, if any, in effect during such leave, plus interest 
thereon at six percent per annum compounded annually from the 
date of return to public service to the date payment is made.  
In such cases the matching employer contribution and additional 
employer contribution provided in section 353.27, subdivisions 3 
and 3a, shall be paid by the department employing such member 
upon return to public service and the governmental subdivision 
involved is hereby authorized to appropriate money therefor.  
Such member shall not receive credit for any voluntary extension 
of military service at the instance of the member beyond the 
initial period of enlistment, induction or call to active duty. 
    (6) For calculating benefits under sections 353.30, 353.31, 
353.32, and 353.33 for state officers and employees displaced by 
the community corrections act, Minnesota Statutes 1984, chapter 
401, and transferred into county service under Minnesota 
Statutes 1984, section 401.04, allowable service means combined 
years of allowable service as defined in Minnesota Statutes 
1984, section 352.01, subdivision 11, and Minnesota Statutes 
1984, section 353.01, subdivision 16, paragraphs (1) to (5). 
    (7) For any public employee who has prior service covered 
by a local police or firefighters relief association which has 
consolidated with the public employees police and fire fund, and 
who has elected coverage by the public employees police and fire 
fund benefit plan as provided in section 15 following the 
consolidation, any period of service credited by the local 
police or firefighters relief association as of the effective 
date of the consolidation based on the applicable general law, 
special law, and bylaw provisions governing the relief 
association as of the date of the initiation of the 
consolidation procedure. 
    Sec. 4.  Minnesota Statutes 1986, section 353.271, is 
amended to read:  
    353.271 [PARTICIPATION IN MINNESOTA POSTRETIREMENT 
INVESTMENT FUND.] 
    Subdivision 1.  [AUTHORIZATION.] The public employees 
retirement association, including the public employees police 
and fire fund but excluding the various local relief association 
consolidation accounts, is hereby authorized to participate in 
the Minnesota postretirement investment fund.  There shall be 
one general participation in the Minnesota postretirement 
investment fund for all purposes by the public employees 
retirement association fund and one general participation in the 
Minnesota postretirement investment fund for all purposes by the 
public employees police and fire fund. 
    Subd. 2.  [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.] 
(1) For members retiring, The required reserves for retirement 
annuities payable as provided in this chapter other than those 
payable from the various local relief association consolidation 
accounts, as determined in accordance with the appropriate 
mortality table adopted by the board of trustees based on the 
experience of the fund as recommended by the actuary retained by 
the legislative commission on pensions and retirement, and using 
the postretirement interest assumption specified in section 
356.215, subdivision 4d, shall be transferred to the Minnesota 
postretirement investment fund as of the date of retirement.  
    (2) Annuity payments other than those payable from the 
various local relief association consolidation accounts shall be 
adjusted in accordance with the provisions of section 11A.18.  
    (3) Notwithstanding section 356.18, increases in payments 
pursuant to this section or from the various local relief 
association consolidation accounts, if applicable, will be made 
automatically unless the intended recipient files written notice 
with the public employees retirement association requesting that 
the increase shall not be made. 
    Sec. 5.  Minnesota Statutes 1986, section 353.64, 
subdivision 1, is amended to read:  
    Subdivision 1.  [POLICE AND FIRE FUND MEMBERSHIP.] Any 
person who prior to July 1, 1961, was a member of the police and 
fire fund, by virtue of being a police officer or firefighter, 
shall as long as the person remains in either position, be 
deemed to continue membership in the fund.  Any person who was 
employed by a governmental subdivision as a police officer and 
was a member of the police and fire fund on July 1, 1978 by 
virtue of being a police officer as defined by this section on 
that date shall be entitled, if employed by the same 
governmental subdivision in a position in the same department in 
which the person was employed on that date, to continue 
membership in the fund whether or not that person has the power 
of arrest by warrant after that date.  Any person who was 
employed by a governmental subdivision as a police officer or a 
firefighter, whichever applies, was an active member of the 
local police or salaried firefighters relief association located 
in that governmental subdivision by virtue of that employment as 
of the effective date of the consolidation as authorized by 
sections 8 to 17, and has elected coverage by the public 
employees police and fire fund benefit plan, shall be considered 
to be a member of the police and fire fund after that date if 
employed by the same governmental subdivision in a position in 
the same department in which the person was employed on that 
date.  Any other employee serving on a full-time basis as a 
police officer or firefighter on or after July 1, 1961, shall 
become a member of the public employees police and fire fund.  
Any employee serving on less than a full-time basis as a police 
officer shall become a member of the public employees police and 
fire fund only after a resolution is adopted by the governing 
body of the governmental subdivision employing the person 
declaring that the position which the person holds is that of a 
police officer.  Any employee serving on less than a full-time 
basis as a firefighter, other than a volunteer firefighter, 
shall become a member of the public employees police and fire 
fund only after a resolution is adopted by the governing body of 
the governmental subdivision employing the person declaring that 
the position which the person holds is that of a firefighter.  
Any police officer or firefighter, other than a volunteer 
firefighter, employed by a governmental subdivision who by 
virtue of that employment is required by law to be a member of 
and to contribute to any other pension, police or firefighter 
relief, or retirement fund established for the benefit of 
officers or employees of a governmental subdivision association 
governed by section 69.77 which has not consolidated with the 
public employees police and fire fund and for which the employee 
has not elected coverage by the public employees police and fire 
fund benefit plan as provided in sections 8 to 17 other than a 
volunteer firefighters relief association to which sections 
69.771 to 69.776 apply shall not be a member of this fund. 
    Sec. 6.  Minnesota Statutes 1986, section 353.65, 
subdivision 1, is amended to read:  
    Subdivision 1.  There is a special fund known as the 
"public employees police and fire fund."  In that fund there 
shall be deposited employee contributions, employer 
contributions and other amounts authorized by law including all 
employee and employer contributions of members 
transferred.  Within the public employees police and fire fund 
are accounts for each municipality known as the "local relief 
association consolidation accounts," which are governed by 
section 16.  
     Sec. 7.  [353.659] [LOCAL RELIEF ASSOCIATION CONSOLIDATION 
ACCOUNT BENEFITS.] 
     For any person who has prior service covered by a local 
police or firefighters relief association which has consolidated 
with the public employee police and fire fund and who has 
elected coverage by the public employees police and fire fund 
benefit plan as provided in section 15 following the 
consolidation, any retirement benefits payable shall be governed 
by the applicable provisions of this chapter.  For any person 
who has prior service covered by a local police or firefighters 
relief association which has consolidated with the public 
employees police and fire fund and who has not elected coverage 
by the public employees police and fire fund benefit plan as 
provided in section 15 following the consolidation, any 
retirement benefits payable shall be governed by the provisions 
of sections 18 to 30 which apply to the relief association. 
     Sec. 8.  [353A.01] [LEGISLATIVE INTENT AND POLICY.] 
    Subdivision 1.  [VOLUNTARY CONSOLIDATION AUTHORIZED.] It is 
the intent and policy of the legislature in sections 8 to 17 to 
authorize, on a voluntary elective basis, any local police or 
salaried firefighters relief association and the respective 
municipality to effect the consolidation of the local relief 
association into the public employees police and fire fund 
established by chapter 353.  
     Subd. 2.  [SAVINGS CLAUSE.] A consolidation under sections 
1 to 33 does not impair or diminish benefits for an active, 
deferred, or retired member or a survivor of an active, 
deferred, or retired member who elects to retain benefits under 
the relief association plan in existence at the time of a 
consolidation. 
     Sec. 9.  [353A.02] [DEFINITIONS.] 
     Subdivision 1.  [GENERALLY.] When used in sections 8 to 17, 
each of the following words and phrases shall have the meaning 
ascribed to it in this section unless the context clearly 
indicates otherwise. 
     Subd. 2.  [ACTIONS PRELIMINARY.] "Actions preliminary to 
consolidation finalization" means those actions undertaken by 
the commission, the state board, the public employee retirement 
association, the local police or firefighters relief 
association, and the municipality following initiation of the 
consolidation procedure as provided in section 11.  
     Subd. 3.  [ASSETS.] "Assets" means the investment 
securities and other items of value held by the special fund of 
the relief association. 
     Subd. 4.  [BENEFICIARY.] "Beneficiary" means the natural 
person designated by any active, deferred, or retired member of 
the fund or of the local relief association consolidation 
account of the fund, whichever applies, as the recipient of any 
remainder interest to the credit of the designating person under 
law upon the death of the designating person, including the 
natural person receiving or entitled to receive the remainder 
portion of any elected optional retirement annuity form or 
automatic survivor benefit portion of a service pension or 
disability benefit.  
     Subd. 5.  [BENEFIT PLAN.] "Benefit plan" means that portion 
of a pension plan which deals specifically with the service 
pension or retirement annuity and retirement benefit coverage 
provided by the relief association or the fund, whichever 
applies, including, but not limited to, the types of coverage, 
the initial and continuing eligibility for and entitlement to 
service pensions or retirement annuities and retirement 
benefits, the amount of service pensions or retirement annuities 
and retirement benefits and the adjustment of service pensions 
or retirement annuities and retirement benefits.  
     Subd. 6.  [BOARD OF TRUSTEES.] "Board of trustees" means 
the managing board of the local police or firefighters relief 
association.  
     Subd. 7.  [CHIEF ADMINISTRATIVE OFFICER.] "Chief 
administrative officer" means the person who has primary 
responsibility for the execution of the administrative affairs 
of the municipality, in the case of a municipality, or of the 
relief association in the case of a local police or firefighters 
relief association, or the designee of that person. 
     Subd. 8.  [COMMISSION.] "Commission" means the legislative 
commission on pensions and retirement established by section 
3.85.  
     Subd. 9.  [DEFERRED MEMBER.] "Deferred member" means a 
person who has credit for sufficient service in the relief 
association to gain entitlement to an eventual service pension 
but who has not yet applied for or started receipt of that 
service pension.  
    Subd. 10.  [EFFECTIVE DATE OF THE CONSOLIDATION.] 
"Effective date of the consolidation" means the date on which 
the consolidation shall occur as determined under section 13.  
    Subd. 11.  [EXISTING RELIEF ASSOCIATION BENEFIT 
PLAN.] "Existing relief association benefit plan" means the 
benefit plan of the relief association in effect on the day 
before the initiation of the consolidation procedure as provided 
in section 11.  
    Subd. 12.  [FUND.] "Fund" means the public employees police 
and fire fund established by sections 353.63 to 353.68. 
    Subd. 13.  [INAPPROPRIATE INVESTMENTS.] "Inappropriate 
investments" means any investment security or other asset held 
by the relief association at or after the initiation of the 
consolidation procedure which does not comply with any 
applicable investment guidelines or objectives which are 
established and published by the state board.  
    Subd. 14.  [INELIGIBLE INVESTMENTS.] "Ineligible 
investments" means any investment security or other asset held 
by the relief association at or after the initiation of the 
consolidation procedure which does not comply with the 
applicable requirements or limitations of sections 11A.09, 
11A.18, 11A.19, 11A.23, and 11A.24.  
     Subd. 15.  [LOCAL POLICE OR FIREFIGHTERS RELIEF 
ASSOCIATION.] "Local police or firefighters relief association" 
means a relief association governed by section 69.77, including 
the Duluth firefighters relief association, the Duluth police 
pension association, the St. Paul fire department relief 
association, and the St. Paul police relief association, but 
does not mean the Bloomington fire department relief association 
or a relief association that is a member of the Minnesota police 
pension council or the Minnesota professional firefighters 
pension council. 
    Subd. 16.  [LOCAL RELIEF ASSOCIATION CONSOLIDATION 
ACCOUNTS.] "Local relief association consolidation accounts" 
means the special accounts created within the fund by sections 
6, and 16, subdivision 1.  
    Subd. 17.  [MAJORITY VOTE.] "Majority vote" means: 
    (1) for a local police or firefighters relief association, 
a number of votes of the membership of the relief association 
that equals or exceeds 50 percent of the number of members 
voting; or 
    (2) for a relief association that would not have met the 
definition of a local police or firefighters relief association 
under section 9, subdivision 15, on January 1, 1987, a number of 
votes that equals or exceeds 50 percent of the membership of the 
relief association. 
    Subd. 18.  [MEMBERSHIP OF THE RELIEF ASSOCIATION.] 
"Membership of the relief association" means the active, 
deferred, disabled, and retired members and the survivors of 
active, deferred, disabled, and retired members of a relief 
association.  Volunteer firefighters or their survivors may not 
be included in determining the membership of a relief 
association. 
    Subd. 19.  [MINIMUM REQUIRED PROPORTION OF RELIEF 
ASSOCIATION MEMBERSHIP.] "Minimum required proportion of relief 
association membership" means ten percent of the membership of a 
local police or firefighters relief association or 30 percent of 
the membership of a relief association that would not have met 
the definition of a local police or firefighters relief 
association under section 9, subdivision 15, on January 1, 1987. 
    Subd. 20.  [MINNESOTA POSTRETIREMENT INVESTMENT FUND.] 
"Minnesota postretirement investment fund" means the 
postretirement adjustment mechanism and investment fund 
established by section 11A.18.  
    Subd. 21.  [OTHER ITEMS OF VALUE.] "Other items of value" 
means any real property, personal property, or interest in real 
or personal property not evidenced by or appropriately 
characterized as a security as that term is defined by section 
524.1-201, clause (37).  
    Subd. 22.  [PENSION PLAN.] "Pension plan" means the various 
aspects of the relationship between a municipality and its 
police officers or salaried firefighters, whichever applies, who 
are members of the local police or firefighters relief 
association regarding the retirement benefit coverage provided 
by the relief association.  
    Subd. 23.  [POSTRETIREMENT ADJUSTMENT.] "Postretirement 
adjustment" means any periodic or regular procedure for 
modifying the amount of a retirement annuity, service pension, 
disability benefit, or survivor benefit after the start of that 
annuity, pension, or benefit, including but not limited to 
modifications of amounts from the Minnesota postretirement 
investment fund under section 11A.18, subdivision 9, or any 
benefit escalation or benefit amount modification based on 
changes in the salaries payable to active police officers or 
salaried firefighters or changes in a cost-of-living index as 
provided for in the existing relief association benefit plan.  
    Subd. 24.  [PUBLIC EMPLOYEES POLICE AND FIRE FUND BENEFIT 
PLAN.] "Public employees police and fire fund benefit plan" 
means the provisions of sections 353.63 to 353.68, any general 
provisions of chapter 353 which may be applicable, any 
applicable provisions of chapter 11A or 356, any applicable 
provisions of any rules issued by the board of the public 
employees retirement association and any applicable amendments 
in those statutes or rules.  
    Subd. 25.  [PUBLIC HEARING.] "Public hearing" means a 
meeting held by the board of trustees of the relief association 
or the governing body of the municipality in which the relief 
association is located, whichever applies, in a place and at a 
time accessible to members of the general public, which is 
reasonably calculated to allow for participation by all affected 
interests, for which proper notice has been given and at which 
the views of the general public may be heard.  
    Subd. 26.  [REFERENDUM.] "Referendum" means a vote of the 
total membership of a relief association on the question of the 
consolidation of the relief association with the fund as 
provided in section 11 which shall occur upon the initiation of 
the consolidation and shall be conducted through the use of a 
mailed secret, written ballot and in accordance with procedures 
established by the board of trustees of the relief association 
for the issuance and collection of ballots.  
    Subd. 27.  [RELIEF ASSOCIATION.] "Relief association" means 
the police or firefighters relief association for which 
consolidation procedures have been initiated.  
    Subd. 28.  [SPECIAL BENEFIT COVERAGE.] "Special benefit 
coverage" means any benefit provided for in the articles of 
incorporation or bylaws of the local relief association which, 
in the judgment of the executive director of the public 
employees retirement association, is not of the type regularly 
provided by the public employees police and fire fund because it 
involves one or a combination of the following factors:  
    (a) the benefit is other than a service pension, a 
disability or superannuation benefit, or a survivor benefit;  
    (b) the payment of the benefit does not occur monthly and 
does not continue beyond one or a small number of payments; or 
    (c) the payment of amounts from the pension fund is not 
made to individual benefit recipients or former members.  
    Subd. 29.  [STATE BOARD.] "State board" means the state 
board of investment operating under chapter 11A.  
    Subd. 30.  [SURVIVOR.] "Survivor" means the person who has 
or the persons who have, as of the death of the active, 
deferred, or retired member of the relief association, the 
relationship to the member of the legally married spouse or the 
dependent minor child as defined or specified by the benefit 
plan of the relief association. 
    Sec. 10.  [353A.03] [VOLUNTARY CONSOLIDATION OPTION.] 
Notwithstanding any provision of law to the contrary, any local 
police or firefighters relief association, as defined in section 
9, subdivision 15, may consolidate with the public employees 
police and fire fund as provided in sections 8 to 17.  
    Sec. 11.  [353A.04] [CONSOLIDATION PROCEDURE.] 
    Subdivision 1.  [SOURCE OF CONSOLIDATION INITIATION.] The 
consolidation of a relief association may be initiated by the 
minimum required proportion of the relief association membership.
    Subd. 2.  [INITIATION PROCEDURE.] To initiate the 
consolidation procedure, the minimum required proportion of the 
relief association membership shall submit a signed petition to 
the board of trustees recommending to the board, the balance of 
the membership of the relief association and to the municipality 
that the relief association be consolidated into the fund.  Upon 
receipt of the petition and authentication of the signatures 
contained in it, the board of trustees shall hold a public 
hearing on the issue and shall adopt a resolution setting forth 
its recommendation to the membership and to the municipality on 
the issue and setting forth the procedure for a membership 
referendum as provided in subdivision 4. 
    Subd. 3.  [BOARD OF TRUSTEES RESPONSE.] In responding to a 
petition of the minimum required proportion of the relief 
association membership, the board of trustees shall hold a 
special meeting within one month of the receipt and 
authentication of the petition at which the public hearing shall 
be conducted.  The resolution of the board of trustees setting 
forth its recommendation and the membership referendum procedure 
shall be adopted either at that special meeting or at the 
regular scheduled meeting of the board of trustees next 
following the special meeting. 
    Subd. 4.  [MEMBERSHIP REFERENDUM PROCEDURE.] The resolution 
of the board of trustees setting forth the membership referendum 
procedure shall provide for a referendum by the membership of 
the relief association.  The referendum must be conducted by a 
secret ballot in a manner agreeable to the chief administrative 
officer of the relief association and the representative of the 
municipality on the relief association board who is most senior 
in rank.  The resolution must specify the language of the 
referendum question, the time and place for the referendum, the 
procedure for referendum balloting as provided in section 9, 
subdivision 26, and the form and content of any informational or 
explanatory materials that may be distributed with the 
referendum ballot.  Approval or disapproval of consolidation 
shall be determined by majority vote.  A ballot must be provided 
to each active, deferred, or retired member and to the survivors 
of active, deferred, or retired members.  A relief association 
shall distribute ballots by mail to the last known addresses of 
members or survivors at least 30 days before the deadline for 
their return to the association.  An active, deferred, disabled, 
or retired member is entitled to one vote.  The survivor or 
survivors of an active, deferred, disabled, or retired member is 
entitled to one vote.  If there is more than one survivor, the 
vote must be cast by the eldest survivor if that person is of 
the age of majority or, if not, by the guardian of the eldest 
survivor. 
    Subd. 5.  [APPROVAL TIME LIMITS.] When the consolidation 
process is approved by the relief association membership, the 
governing body of the municipality shall approve or disapprove 
the consolidation action by a resolution of the governing body 
of the municipality within two months.  
    Subd. 6.  [IMPACT OF DISAPPROVAL.] If a consolidation 
action is disapproved by action of the governing body of the 
municipality or by majority referendum vote of the membership of 
the relief association, no consolidation action may be initiated 
until after January 1 of the year next following the date of 
disapproval. 
    Subd. 7.  [CERTIFICATION OF APPROVAL.] If a consolidation 
action is approved, the chief administrative officer of the 
municipality shall notify the executive director of the public 
employees retirement association, the executive director of the 
state board, the executive director of the commission, the 
commissioner of finance, the secretary of state, and the state 
auditor of the approval.  The notification to the state auditor 
shall also contain a certification by the chief administrative 
officer of the municipality and by the secretary of the relief 
association that there was compliance with the procedures set 
forth in this section in approving that consolidation action and 
shall include a copy of any relevant documentation.  
    Subd. 8.  [FINAL MUNICIPAL APPROVAL.] If a consolidation 
action is approved, the remaining actions preliminary to the 
finalization of the consolidation provided for in section 12 
shall take place and consolidation shall occur pending final 
approval of the consolidation by the governing body of the 
municipality.  Final action on the question of the approval of 
the consolidation by the governing body of the municipality 
shall occur at a public hearing held for that purpose and shall 
occur within one month of the conclusion of the remaining 
actions preliminary to the finalization of the consolidation.  
If the governing body of the municipality upon its final action 
on the consolidation disapproves the consolidation, or the 
deadline for the municipality to take final action upon the 
question of consolidation expires, the approvals by the relief 
association and the municipality to initiate the consolidation 
shall no longer be effective.  
    Subd. 9.  [DIVISION OF SALARIED AND VOLUNTEER FIREFIGHTER 
RELIEF ASSOCIATION.] If the relief association includes in its 
membership both volunteer firefighters and salaried 
firefighters, the board of trustees of the relief association 
shall, before the effective date of the consolidation, undertake 
the necessary steps to separate the volunteer firefighters 
portion of the relief association from the salaried firefighters 
portion of the relief association and to establish the volunteer 
firefighters portion of the relief association as a distinct 
relief association governed by chapter 424A.  Any special fund 
assets of the original relief association shall be valued at 
their fair market value and divided between the new volunteer 
firefighters relief association and the existing relief 
association on the basis of their relative actuarial accrued 
liabilities as determined by an approved actuary as provided in 
section 356.215.  The municipality shall adopt a resolution 
specifying how any fire state aid received by the municipality 
under sections 69.011 to 69.051 shall be allocated between the 
newly established volunteer firefighters relief association and 
the existing relief association or the fund, whichever applies, 
as of the date of allocation.  
    Sec. 12.  [353A.05] [ACTIONS PRELIMINARY TO CONSOLIDATION 
FINALIZATION.] 
    Subdivision 1.  [COMMISSION ACTIONS.] Upon initiation of 
consolidation as provided in section 11, the executive director 
of the commission shall direct the actuary retained by the 
commission to undertake the preparation of the actuarial 
calculations necessary to complete the consolidation.  
    These actuarial calculations shall include for each active 
member, each deferred former member, each retired member, and 
each current beneficiary the computation of the present value of 
future benefits, the future normal costs, if any, and the 
actuarial accrued liability on the basis of the existing relief 
association benefit plan and on the basis of the public 
employees police and fire fund benefit plan.  These actuarial 
calculations shall also include for the total active, deferred, 
retired, and benefit recipient membership the sum of the present 
value of future benefits, the future normal costs, if any, and 
the actuarial accrued liability on the basis of the existing 
relief association benefit plan, on the basis of the public 
employees police and fire fund benefit plan and on the basis of 
the benefit plan which produced the largest present value of 
future benefits for each person.  The actuarial calculations 
shall be prepared using the entry age actuarial cost method for 
all components of the benefit plan and using the actuarial 
assumptions applicable to the fund for the most recent actuarial 
valuation prepared under section 356.215, except that the 
actuarial calculations on the basis of the existing relief 
association benefit plan shall be prepared using an interest 
rate actuarial assumption during the postretirement period which 
is in the same amount as the interest rate actuarial assumption 
applicable to the preretirement period.  The actuarial 
calculations shall include the computation of the present value 
of the initial postretirement adjustment anticipated by the 
executive director of the state board as payable after the 
effective date of the consolidation from the Minnesota 
postretirement investment fund under section 11A.18.  
    The chief administrative officer of the relief association 
shall, upon request, provide in a timely manner to the executive 
director of the commission and to the actuary retained by the 
commission the most current available information or documents, 
whichever applies, regarding the demographics of the active, 
deferred, retired, and benefit recipient membership of the 
relief association, the financial condition of the relief 
association and the existing benefit plan of the relief 
association.  
     Upon completion of the actuarial calculations required by 
this subdivision, the actuary retained by the commission shall 
issue a report in the form of an appropriate summary of the 
actuarial calculations and shall provide a copy of that report 
to the executive director of the commission, the executive 
director of the public employees retirement association, the 
chief administrative officer of the relief association, the 
chief administrative officer of the municipality in which the 
relief association is located, the state auditor, and the 
legislative auditor. 
    Subd. 2.  [STATE BOARD ACTIONS.] Upon approval of 
consolidation by the membership as provided in section 11, the 
executive director of the state board shall review the existing 
investment portfolio of the relief association for compliance 
with the requirements and limitations set forth in sections 
11A.09, 11A.14, 11A.18, 11A.23, and 11A.24 and for 
appropriateness for retention in the light of the established 
investment objectives of the state board.  The executive 
director of the state board, using any reporting service 
retained by the state board, shall determine the approximate 
market value of the existing assets of the relief association 
upon the effective date of consolidation and the transfer of 
assets from the relief association to the individual relief 
association consolidation accounts at market value.  
     The state board may require that the relief association 
liquidate any investment security or other item of value which 
is determined to be ineligible or inappropriate for retention by 
the state board.  The liquidation shall occur before the 
effective date of consolidation and transfer of assets.  
    If requested to do so by the chief administrative officer 
of the relief association or of the municipality, the state 
board shall provide advice on the means and procedures available 
to liquidate investment securities and other assets determined 
to be ineligible or inappropriate.  
    Subd. 3.  [FUND ACTIONS.] Upon approval of consolidation by 
the membership as provided in section 11, the executive director 
of the public employees retirement association shall request 
from the relief association and the municipality the information 
necessary to allow the fund to complete the consolidation, which 
at a minimum shall include the information required to be 
provided to the executive director of the commission and to the 
actuary retained by the commission by subdivision 1.  The chief 
administrative officer of the relief association and the chief 
administrative officer of the municipality shall provide the 
requested information in a timely manner.  The data shall be 
reported on forms or in a manner prescribed by the executive 
director of the public employees retirement association.  The 
data shall be current as of the date of the approval of the 
consolidation by the membership and shall thereafter include 
updated data on a monthly basis following the initial collection 
of data, also in the manner or on forms prescribed by the 
executive director of the public employees retirement 
association.  The chief administrative officer of the 
municipality and the chief administrative officer of the relief 
association shall certify as to the accuracy of the data 
reported to the public employees retirement association, and the 
public employees retirement association may rely on that data 
without undertaking any affirmative duty to verify the data. 
    Sec. 13.  [353A.06] [FINALIZATION OF CONSOLIDATION.] 
    Upon the completion of the applicable actions preliminary 
to consolidation finalization under section 12, each entity 
shall report the result of those actions to the relief 
association and to the municipality.  Upon final approval by the 
municipality as provided in section 11, subdivision 8, the 
consolidation of the relief association with the public employee 
police and fire fund shall be scheduled to occur.  The 
consolidation shall be effective as of the date established for 
consolidation by the board of the public employees retirement 
association.  The effect of the consolidation shall be as 
provided in sections 14 to 16.  
     Sec. 14.  [353A.07] [EFFECT ON ADMINISTRATION.] 
     Subdivision 1.  [TRANSFER OF ADMINISTRATION.] On the 
effective date of consolidation, the administration of the 
special fund and the benefit plan of the relief association is 
transferred to the executive director and the board of trustees 
of the public employees retirement association.  
     Subd. 2.  [TRANSFER OF RECORDS.] On the effective date of 
consolidation, the chief administrative officer of the relief 
association shall transfer all records and documents relating to 
the special fund of the relief association to the fund.  To the 
extent possible, original copies of all records and documents 
shall be transferred.  For any records and documents which apply 
to both the general fund and the special fund of the relief 
association, the chief administrative officer may transfer a 
photostatic copy of the applicable original record or document 
if the copy is accompanied by a certification by the chief 
administrative officer that the copy is a true and exact copy of 
the original.  Any photostatic copy of any document so certified 
may be treated by the fund for all purposes as an original copy. 
     Subd. 3.  [TRANSFER OF ASSETS.] On the effective date of 
consolidation, the chief administrative officer of the relief 
association shall effect the transfer of the entire assets of 
the special fund of the relief association to the fund.  The 
transfer may include any investment securities of the special 
fund which are not determined to be ineligible or inappropriate 
by the executive director of the state board under section 12, 
subdivision 2, at the market value of the investment security as 
of the effective date of the consolidation.  The transfer shall 
include any accounts receivable determined by the executive 
director of the state board as capable of being collected.  The 
transfer shall also include an amount, in cash, representing any 
remaining investment security or other asset of the special fund 
which was liquidated, after defraying any accounts payable.  
     As of the effective date of consolidation, subject to the 
authority of the state board, the board of trustees of the 
public employee retirement association shall have legal title to 
and management responsibility for any transferred assets as 
trustees for any person having a beneficial interest arising out 
of benefit coverage provided by the relief association.  The 
fund shall be the successor in interest for all claims for and 
against the special fund of the relief association or the 
municipality with respect to the special fund of the relief 
association, except any claim against the relief association or 
the municipality or any person connected with the relief 
association or the municipality in a fiduciary capacity, based 
on any act or acts by that person which were not done in good 
faith and which constituted a breach of the obligation of the 
person as a fiduciary.  As a successor in interest, the fund may 
assert any applicable defense in any judicial proceeding which 
the board of the relief association or the municipality would 
have otherwise been entitled to assert.  
     Subd. 4.  [TERMINATION OF SPECIAL FUND.] As of the 
effective date of consolidation and the transfer of 
administration, records, assets, and liabilities from the relief 
association to the separate consolidation fund, the special fund 
of the relief association shall cease to exist as a legal 
entity.  If the relief association has a general fund as of the 
effective date of consolidation, the general fund may continue 
to exist as a legal entity at the discretion of the board of the 
relief association.  If the relief association does not have a 
general fund as of the effective date of consolidation, the 
board of the relief association may establish a general fund, 
which may conduct business on behalf of the relief association 
as the board of the relief association may direct.  Following 
consolidation, the general fund may retain the name of the 
relief association, shall be the only fund of the relief 
association and shall continue to be governed by any applicable 
general or special law provision other than any provisions 
governing the benefits previously payable from the special fund 
of the relief association.  Any relief association continuing in 
the form of the general fund shall function as a fraternal 
organization. 
    The municipality shall maintain the service previously 
provided to assist the relief association through making the 
appropriate payroll deduction of relief association membership 
dues from relief association members.  
    Subd. 5.  [COSTS OF CONSOLIDATION.] The reasonable and 
necessary costs arising from the actions of the commission, the 
state board, and the fund preliminary to consolidation as 
provided in section 12 shall be paid by the relief association 
from the special fund as those costs are incurred before the 
effective date of the consolidation and shall be considered to 
be authorized administrative expenses of the relief association 
for section 69.80. 
    Subd. 6.  [POSTCONSOLIDATION BYLAW AMENDMENTS.] Following 
the effective date of consolidation, if the relief association 
continues in the form of the general fund, the board of the 
relief association shall adopt the appropriate amendments to its 
bylaws and articles of incorporation to reflect its change in 
status and operation.  The amendments shall be effective upon 
filing the applicable amendments with the executive director of 
the commission and with the state auditor and shall not require 
municipal ratification as provided in section 69.77, subdivision 
2a.  
    Sec. 15.  [353A.08] [EFFECT ON BENEFIT COVERAGE.] 
    Subdivision 1.  [ELECTION OF COVERAGE BY CURRENT RETIREES.] 
Any person who is receiving a service pension, disability 
benefit, or survivorship benefit shall have the option to elect 
to have benefit coverage provided under the relevant provisions 
of the public employees police and fire fund benefit plan or to 
retain benefit coverage provided under the relief association 
benefit plan in effect on the effective date of the 
consolidation.  The relevant provisions of the public employees 
police and fire fund benefit plan for the person electing that 
benefit coverage shall be limited to participation in the 
Minnesota postretirement investment fund for any future 
postretirement adjustments in the amount of the benefit or 
pension payable as of the effective date of the consolidation, 
the date as of which pension or benefit payments are to be paid 
and the termination of a survivor or disability benefit or 
suspension of a retirement annuity before the death of the 
person.  The survivorship benefit payable on behalf of any 
service pension or disability benefit recipient who elects 
benefit coverage provided under the relevant provisions of the 
public employees police and fire fund benefit plan shall be 
calculated under the relief association benefit plan in effect 
on the effective date of the consolidation and shall be subject 
to participation in the Minnesota postretirement investment fund 
for any future postretirement adjustments in the amount of the 
survivorship benefit payable. 
    By electing the public employees police and fire fund 
benefit plan, any current service pension or disability benefit 
recipient who, as of the first January 1 occurring after the 
effective date of consolidation, has been receiving the pension 
or benefit for at least 18 months or any survivor benefit 
recipient who, as of the first January 1 occurring after the 
effective date of consolidation, has been receiving the benefit 
on the person's own behalf or in combination with a prior 
applicable service pension or disability benefit for at least 18 
months shall be entitled to receive any adjustment payable from 
the Minnesota postretirement investment fund under section 
11A.18 as of the first January 1 occurring after the effective 
date of consolidation. 
    The election by any pension or benefit recipient shall be 
made on or before the deadline established by the board of the 
public employees retirement association, which shall be 
established in a manner which recognizes the number of persons 
eligible to make the election and the anticipated time required 
to conduct any required benefit counseling.  
    Subd. 2.  [ELECTION OF COVERAGE BY CURRENT DEFERRED 
RETIREES.] Any person who has terminated active employment as a 
police officer or firefighter, whichever applies, with the 
municipality, has sufficient credit for service to entitle the 
person to an eventual service pension and has not taken a refund 
of accumulated member contributions, if applicable, shall have 
the option to elect to have benefit coverage provided under the 
relevant provisions of the public employees police and fire fund 
benefit plan or to retain benefit coverage provided by the 
relief association benefit plan in effect on the effective date 
of consolidation.  The relevant provisions of the public 
employees police and fire fund benefit plan for the person 
electing that benefit coverage shall be the provisions specified 
in subdivision 1.  
    The election shall be made when the person files an 
application for receipt of the deferred service pension and 
shall accompany that application.  
    Subd. 3.  [ELECTION OF COVERAGE BY ACTIVE MEMBERS.] Any 
person who is employed as a police officer or as a firefighter 
other than a volunteer firefighter, whichever applies, by the 
municipality and is an active member of the relief association 
shall have the option to elect to have benefit coverage provided 
under the relevant provisions of the public employees police and 
fire fund benefit plan or to retain benefit coverage provided by 
the relief association benefit plan in effect on the effective 
date of consolidation.  The relevant provisions of the public 
employee police and fire fund benefit plan for the person 
electing that benefit coverage shall be the relevant provisions 
of the public employee police and fire fund benefit plan 
applicable to retirement annuities, disability benefits, and 
survivor benefits, including participation in the Minnesota 
postretirement investment fund, but excluding any provisions 
governing the purchase of credit for prior service or making 
payments in lieu of member contribution deductions applicable to 
any period which occurred before the effective date of 
consolidation. 
    An active member shall be eligible to make an election at 
one of the following times:  
    (a) on or before the date occurring 180 days after the 
effective date of consolidation;  
    (b) after the date on which the active member attains the 
age of 49 years and six months and before the date on which the 
active member attains the age of 50 years; or 
    (c) on the date on which the active member terminates 
active employment as a police officer or firefighter, whichever 
applies, with the municipality in which the local relief 
association subject to consolidation was located. 
    Subd. 4.  [IRREVOCABLE ELECTION.] Any election made under 
this section shall be irrevocable once it has been filed.  Each 
election shall be made on a form prescribed by the executive 
director of the public employees retirement association and 
shall be filed with the executive director.  If the current 
retiree, current benefit recipient, current deferred retiree, or 
current active member has, as of the effective date of 
consolidation or the election of benefit coverage, whichever 
applies, a spouse or other person who has reached the age of 
majority who under the benefit plan of the relief association 
would be entitled to receive a survivor benefit upon the death 
of the person making the election, the election made as provided 
in this section shall not be considered valid without a 
statement signed by the potential survivor and accompanying the 
election form which indicates that the potential survivor has 
been informed of the election and understands the consequences 
of the election.  
     The election form, if validly executed and accompanied by 
any required statement or statements, shall be effective on the 
first day of the month next following its filing with the 
executive director of the public employees retirement 
association or the date of retirement, whichever is earlier.  If 
the person making the election becomes disabled or dies before 
the effective date of the election, any disability or survivor 
benefits which are payable shall be governed by the existing 
benefit plan of the relief association.  
    If the person entitled to make the election elects to 
retain coverage by the benefit plan of the relief association or 
fails to make the election in a timely fashion, the person shall 
have future pension or benefit payments governed by the 
provisions of the existing benefit plan of the relief 
association in effect on the effective date of consolidation.  
    Subd. 5.  [RETURNING DISABILITANTS; REEMPLOYED ANNUITANTS.] 
Any person who is receiving a disability benefit from a 
consolidating local relief association as of the effective date 
of the consolidation and who recovers sufficiently from that 
disability following the effective date of the consolidation to 
allow for a return to active employment as a police officer or 
firefighter, whichever applies, with the municipality in which 
the consolidating relief association was located shall retain 
eligibility to the local relief association benefit plan only 
and shall not be entitled to elect the public employees police 
and fire fund benefit plan as an active member, even if the 
public employees police and fire fund benefit plan was elected 
as a benefit recipient.  
     Any person who becomes disabled following the effective 
date of the consolidation shall be entitled to make a benefit 
plan coverage election as an active member upon the termination 
of active employment and commencement of the disability benefit 
and, upon any return to active service, shall retain benefit 
plan coverage by the previously selected benefit plan coverage 
election.  
    Any person who retired from a consolidating local relief 
association before the effective date of the consolidation or 
retires after the effective date of the consolidation, who has 
elected coverage by the public employees police and fire fund 
benefit plan and who returns to active employment with an 
employing unit covered by the public employees retirement 
association following the effective date of consolidation shall 
be subject to the provisions of section 353.37, subdivision 1.  
     Subd. 6.  [SPECIAL BENEFIT PROVISIONS.] If the benefit plan 
of the relief association as of the date on which consolidation 
is initiated provides for special benefit coverage as specified 
in section 9, subdivision 28, any person who would have 
otherwise been entitled to that special benefit coverage shall 
retain entitlement upon consolidation to that special benefit 
coverage notwithstanding the election which the person makes 
regarding other aspects of the benefit coverage as provided in 
subdivision 1, 2, or 3.  The special benefit coverage shall 
continue to be provided by the municipality and, if not provided 
through a contract with an insurance carrier which is authorized 
to do business in this state, shall be funded on an actuarial 
basis using the relevant provisions of section 69.77, with the 
establishment by the municipality of a special account within 
the general fund of the municipality for this special benefit 
coverage, to be managed by the chief administrative officer of 
the municipality, with disbursements limited to payments of the 
special benefit or benefits based on the relevant portion of the 
benefit plan of the relief association which existed as of the 
date on which consolidation is initiated. 
    No special account in the general fund of a municipality 
established to provide special preexisting benefit plan coverage 
as provided in this subdivision shall be deemed to be a 
supplemental pension plan under section 356.24 or a local 
governmental pension plan or fund under section 356.25.  
     Subd. 7.  [EFFECT OF COVERAGE BY LOCAL PLAN.] A person who, 
under this section, elects benefit coverage under the relief 
association benefit plan, or who fails to make a timely election 
of coverage under the public employees retirement association 
police and fire fund benefit plan, is a member of the relief 
association as administered by the public employees retirement 
association and has a right to benefits under the relief 
association benefit plan in effect on the effective date of the 
consolidation. 
    Subd. 8.  [COUNSELING.] The executive director of the 
public employees retirement association shall undertake all 
reasonable efforts to provide any necessary benefit counseling 
to persons who are entitled to make or who are affected by an 
election, if benefit counseling is requested by the person.  
     Sec. 16.  [353A.09] [EFFECT ON CONTRIBUTIONS AND FUNDING.] 
     Subdivision 1.  [ESTABLISHMENT OF SPECIAL LOCAL RELIEF 
ASSOCIATION ACCOUNTS.] The board of the public employees 
retirement association shall establish separate special accounts 
to be known as the local relief association consolidation 
account of each municipality that consolidates with the fund.  
In that account shall be credited the assets of the individual 
consolidating local relief association upon transfer, member 
contributions received after consolidation under subdivision 4, 
municipal contributions received after consolidation under 
subdivision 5, and a proportionate share of any investment 
income earned after consolidation by the public employees police 
and fire fund.  From that individual account the transfer of any 
required reserves to the Minnesota postretirement investment 
fund on account of persons electing coverage by the public 
employees police and fire benefit plan under subdivisions 2 and 
3 and section 353.271, subdivision 2 shall be made, the pension 
and benefit amounts on account of persons electing coverage by 
the relief association benefit plan under section 15 shall be 
paid, the benefit amounts not payable from the Minnesota 
postretirement investment fund on account of persons electing 
coverage by the public employees police and fire benefit plan 
under section 15 shall be paid and any direct administrative 
expenses related to the special account and the proportional 
share of the general administrative expenses of the fund shall 
be paid. 
    Except as otherwise provided for in this section the 
liabilities and the assets of each local relief association 
consolidation account must be considered for all purposes to be 
separate from the balance of the public employees police and 
fire fund and shall be subject to separate accounting and 
separate actuarial valuation, reported as a separate exhibit in 
any annual financial report or actuarial valuation report of the 
fund, whichever applies.  The executive director of the public 
employees retirement association shall maintain separate 
accounting records for each consolidating local relief 
association and the balance in its account. 
    Subd. 2.  [INITIAL ALLOCATION OF ASSETS UPON 
CONSOLIDATION.] As soon as is practicable following the 
effective date of consolidation, the executive director of the 
public employees retirement association shall transfer from the 
individual local relief association consolidation accounts to 
the Minnesota postretirement investment fund assets of that 
account equal to the required reserves for service pensions 
payable to persons electing coverage by the public employees 
police and fire fund benefit plan under section 15 and any 
potential survivor benefit payable on account of those persons 
as determined in accordance with the appropriate mortality table 
adopted by the board of the public employees retirement 
association based on the experience of the consolidating relief 
association or consolidating relief associations as recommended 
by the actuary retained by the legislative commission on 
pensions and retirement and using the applicable interest 
assumption specified in section 356.215, subdivision 4d.  A 
transfer may be made only from the individual account for an 
electing person's municipality.  The executive director may not 
transfer assets between individual local consolidation accounts, 
nor may the executive director transfer assets from the public 
employees retirement association to the Minnesota postretirement 
fund or to a local consolidation account to cover liabilities of 
an individual local consolidation account.  If there are 
insufficient assets in a local consolidation account to provide 
for the transfer of assets to the Minnesota postretirement 
investment fund or to provide for benefit payments, the 
municipality shall immediately provide the local consolidation 
account with the assets necessary to make the transfer or 
benefit payments. 
    Subd. 3.  [SUBSEQUENT POSTRETIREMENT FUND TRANSFERS.] Upon 
the retirement of any person who was entitled to a deferred 
service pension as of the effective date of consolidation or who 
was a current active member of the relief association as of the 
effective date of consolidation and who elects coverage by the 
public employees police and fire fund benefit plan under section 
15, the executive director of the public employees retirement 
association shall transfer from that local relief association 
consolidation account to the Minnesota postretirement investment 
fund assets equal to the required reserves for that retirement 
annuity and any potential survivor benefit payable under section 
353.271.  The transfer for any person who was a current active 
member of the relief association as of the effective date of 
consolidation and elected coverage by the public employees 
police and fire fund benefit plan and who also has service 
credit as an employee of another governmental subdivision in the 
public employees police and fire fund shall be that amount of 
the total required reserves which bears the same relationship 
that the service as an active member of the consolidating relief 
association bears to the total public employees police and fire 
fund membership.  A transfer may be made only from the 
individual account for an electing person's municipality.  The 
executive director may not transfer assets between individual 
municipal accounts, nor may the executive director transfer 
assets from the public employees retirement association to the 
Minnesota postretirement fund or to a local consolidation 
account to cover liabilities of an individual local 
consolidation account.  If there are insufficient assets in a 
local consolidation account to provide for the transfer of 
assets to the Minnesota postretirement investment fund or to 
provide for benefit payments, the municipality shall immediately 
provide the local consolidation account with the assets 
necessary to make the transfer or benefit payments. 
    Subd. 4.  [MEMBER CONTRIBUTIONS.] Following the effective 
date of consolidation, the applicable member contribution rate 
and applicable salary rate to which the member contribution rate 
applies for persons who were formerly members of the relief 
association shall be determined as follows:  
    (1) if the person has elected coverage by the public 
employees police and fire fund benefit plan under section 15, 
the applicable member contribution rate shall be that rate 
specified in section 353.65, subdivision 2, and the applicable 
salary rate to which the member contribution rate applies shall 
be the actual salary of the person, as defined in section 
353.01, subdivision 10; and 
    (2) if the person has not elected coverage by the public 
employees police and fire fund benefit plan under section 15, 
the applicable member contribution rate shall be the rate 
specified in section 69.77, subdivision 2a, or the rate 
specified in the applicable general law, special law or bylaw 
provision governing the relief association as of the date of the 
initiation of consolidation, whichever is greater, and the 
applicable salary rate to which the member contribution rate 
applies shall be the salary rate specified in the applicable 
general law, special law or bylaw provision governing the relief 
association as of the date of the initiation of consolidation or 
the actual salary of the person, including overtime pay and any 
regularly occurring special payments but excluding lump sum 
annual leave payments, worker's compensation payments and 
severance payments, whichever salary rate is greater.  
    The member contribution rate and applicable salary rate to 
which the member contribution rate applies shall be effective as 
of the first day of the first pay period occurring after the 
effective date of consolidation.  
    The chief administrative officer of the municipal police 
department or municipal fire department, whichever applies, 
shall cause the member contributions required under this 
subdivision to be deducted in the manner and subject to the 
terms provided in section 353.27, subdivision 4.  
    Subd. 5.  [REGULAR AND ADDITIONAL MUNICIPAL CONTRIBUTIONS.] 
(a) Following the effective date of consolidation, the 
applicable regular municipal contribution rate and applicable 
salary rate to which the regular municipal contribution rate 
applies on behalf of persons who were formerly members of the 
relief association shall be as follows:  
    (1) on behalf of persons who have elected coverage by the 
public employees police and fire fund benefit plan under section 
15, the applicable regular municipal contribution rate shall be 
that specified in section 353.65, subdivision 3, and the 
applicable salary rate to which the regular municipal 
contribution rate applies shall be that specified in subdivision 
4, clause (1); and 
    (2) on behalf of persons who have not elected coverage by 
the public employees police and fire fund benefit plan under 
section 15, the applicable regular municipal contribution rate 
shall be 12 percent and the applicable salary rate to which the 
regular municipal contribution rate applies shall be that 
specified in subdivision 4, clause (2).  
    (b) Following the effective date of consolidation, the 
applicable additional municipal contribution amount shall be the 
sum of the following:  
    (1) the annual level dollar contribution as calculated by 
the actuary retained by the commission as of the effective date 
of consolidation which is required to amortize by December 31, 
2010 that portion of the present value of future benefits 
computed on the basis of the benefit plan producing the largest 
present value of future benefits for each individual which 
remains after subtracting the present value of future member 
contributions as provided in subdivision 4, the present value of 
future regular municipal contributions as provided in clause (a) 
and the market value of the assets of the relief association 
transferred to the fund; and 
    (2) the amount of the annual contribution as calculated by 
the actuary retained by the commission as of the most recent 
actuarial valuation date which is required to amortize on a 
level annual dollar basis the amount of any net actuarial 
experience loss incurred during the year which ended as of the 
day immediately before the most recent actuarial valuation date 
by December 31 of the year occurring 15 years later. 
    (c) Regular municipal contributions shall be made in the 
manner provided in section 353.28.  Additional municipal 
contributions shall be paid during the calendar year following 
the annual certification of the amount of the annual additional 
municipal contribution by the executive director of the public 
employees retirement association and, if made during the month 
of January, shall be payable without any interest, or if made 
after January 31, but before the next following December 31, 
shall be payable with interest for the period since January 1 at 
a rate which is equal to the preretirement interest rate 
assumption specified in section 356.215, subdivision 4d, 
applicable to the fund expressed as a monthly rate and 
compounded on a monthly basis or if made after December 31 of 
the year in which the additional municipal contribution is due 
shall be payable with interest at a rate which is four percent 
greater than the highest interest rate assumption specified in 
section 356.215, subdivision 4d, expressed as a monthly rate and 
compounded monthly from January 1 of the year in which the 
additional municipal contribution is due until the date on which 
payment is made.  
    Subd. 6.  [CERTIFICATION OF MUNICIPAL CONTRIBUTIONS.] The 
governing body of the municipality shall include the amount of 
any regular municipal contribution and additional municipal 
contribution in the budget approved for the municipality and to 
the extent not paid from other revenue sources of the 
municipality, in the tax levy certified by the municipality to 
the county auditor.  
    Subd. 7.  [ACTUARIAL REPORTING.] In any actuarial valuation 
of the fund prepared by the actuary retained by the commission 
or any supplemental actuarial valuation of the fund prepared by 
an approved actuary retained by the executive director of the 
public employees retirement association, there shall be included 
an exhibit setting forth the actuarial accrued liability, 
current assets, unfunded actuarial accrued liability, normal 
cost, amortization requirement, and net actuarial experience 
gain or loss for the individual local relief association 
consolidation account and any other relevant items prepared in 
accordance with the applicable provisions of section 356.215. 
    Sec. 17.  [353A.10] [MISCELLANEOUS PROVISIONS.] 
    Subdivision 1.  [PROHIBITION ON SERVICE CREDIT PURCHASES 
AND REPAYMENT OF REFUNDS.] No member of the public employees 
retirement association or of the fund who has credit for service 
rendered before the consolidation as a member of a local police 
or firefighters relief association which has consolidated with 
the fund shall be entitled to purchase credit for that prior 
local relief association service, make payments in lieu of 
member contribution deductions for that prior local relief 
association service, or repay any refund of member contributions 
previously taken.  
    A person who has credit for service in more than one local 
police or firefighters relief association which have 
consolidated with the fund for service before the consolidation 
shall not be entitled to purchase credit for any of that local 
relief association service, but shall be entitled to receive 
allowable service credit for service previously credited by the 
most recent local relief association under section 353.01, 
subdivisions 11, 16, and 18 if the person elects coverage by the 
public employee police and fire fund benefit plan.  
    No person who was a member of a local police or 
firefighters relief association which has consolidated with the 
fund shall be entitled to purchase credit in the fund for any 
prior service which at the time it was rendered was covered by 
the public employees retirement association, although a refund 
under section 353.34 may be repaid in accordance with section 
353.35, 353.71, or 356.30.  
    No person who was a member of a local police or 
firefighters relief association which has consolidated with the 
fund shall be entitled to make any payments in lieu of salary 
deductions, voluntary assessments or purchases of credit for 
prior service to the fund in connection with any service for 
which the person has already received credit by the local relief 
association or by any other Minnesota public pension plan or for 
establishing a higher average salary rate than otherwise to the 
credit of the person.  
    Subd. 2.  [COLLECTION OF LATE CONTRIBUTIONS.] In the event 
of a refusal by a municipality in which was located a local 
police or firefighters relief association which has consolidated 
with the fund to pay to the fund any amount or amounts due under 
section 16, subdivisions 2 to 6, the executive director of the 
public employees retirement association may notify the 
department of revenue, the department of finance, and the state 
auditor of the refusal and commence the necessary procedure to 
collect the amount or amounts due from the amount of any state 
aid under sections 69.011 to 69.051, amortization state aid 
under section 423A.02, or supplemental amortization state aid 
under Laws 1984, chapter 564, section 48, as amended by Laws 
1986, chapter 359, section 20, which is payable to the 
municipality or to certify the amount or amounts due to the 
county auditor for inclusion in the next tax levy of the 
municipality or for collection from other revenue available to 
the municipality, or both.  
    Subd. 3.  [LEVY AND BONDING AUTHORITY.] A municipality in 
which was located a local police or firefighters relief 
association which has consolidated with the fund may issue 
special obligation bonds of the municipality to defray all or a 
portion of the principal amounts specified in section 16, 
subdivisions 2 to 6, or certify to the county auditor an 
additional special levy in the amount necessary to defray all or 
a portion of the principal amount specified in section 16, 
subdivisions 2 to 6, or the annual amount specified in section 
16, subdivisions 2 to 6.  Notwithstanding any law to the 
contrary, any additional special levy shall not be included in 
any limitation concerning rate or amount established by charter 
or law and shall be a special levy for the purposes of section 
275.50, subdivision 5, clause (o) and any municipal bond issued 
shall not be included in the net debt of the municipality for 
purposes of any charter or statutory debt limitation nor shall 
any tax levy for the payment of bond principal or interest be 
subject to any limitation concerning rate or amount established 
by charter or law.  
    Subd. 4.  [REFUND OF CERTAIN MEMBER CONTRIBUTION 
AMOUNTS.] (a) The following persons shall be entitled to receive 
a refund of certain member contribution amounts under paragraph 
(b):  
    (1) Any person who was an active member of a local police 
or firefighters relief association upon its consolidation with 
the fund, who does not elect coverage by the public employees 
police and fire benefit plan and who commences receipt of a 
service pension or a disability benefit from the local relief 
association consolidation account; or 
    (2) Any person who is the surviving spouse, or if none, the 
surviving minor child, or if none, the designated beneficiary of 
a person who was an active member of a local police or 
firefighters relief association upon its consolidation with the 
fund, who did not elect coverage by the public employees police 
and fire benefit plan and who dies prior to receiving a service 
pension or a disability benefit from the local relief 
association consolidation account.  
    (b) The refund of certain member contribution amounts shall 
be the amount by which any member contributions made to the 
local relief association consolidation account under section 16, 
subdivision 4, exceeds the amount of employee or member 
contributions which would have been payable to the local relief 
association as provided in the benefit plan in effect on the 
effective date of consolidation, plus interest at the rate of 
six percent, compounded quarterly, from the date on which the 
contribution was made until the date on which the refund is paid.
    (c) Any refund of certain contribution amounts shall occur 
as soon as practicable following receipt of a valid application 
from the appropriate person and the commencement of receipt of 
the service pension or disability benefit or official 
notification of death, whichever applies. 
    Subd. 5.  [SAVINGS CLAUSE.] Notwithstanding any law to the 
contrary, any person who has commenced receipt of a service 
pension, disability benefit, or survivor benefit, or who has 
become entitled to a deferred service pension from a local 
police or firefighters relief association before the effective 
date of consolidation with the fund, and who is or becomes a 
state employee as defined in section 352.01, subdivisions 2 and 
2a or a public employee as defined in section 353.01, 
subdivisions 2 and 2a, on or after the effective date of the 
consolidation shall be entitled to retain any amounts previously 
received and to receive that pension or benefit provided by the 
applicable local relief association benefit plan as of the 
effective date of the consolidation despite that status as an 
active state or public employee.  
    Subd. 6.  [ALLOCATION OF STATE AID.] Any municipality in 
which was located a local police or firefighters relief 
association which has consolidated with the fund shall allocate 
to meet the municipal contribution and additional municipal 
contribution requirements as provided in section 16, subdivision 
6, an appropriate portion of any fire or police state aid under 
sections 69.011 to 69.051, any fire insurance premium tax 
surcharge, any amortization state aid under section 423A.02 or 
any supplemental amortization state aid under Laws 1984, chapter 
564, section 48, as amended by Laws 1986, chapter 359, section 
20.  State aids for pension purposes referred to in this 
subdivision that were exclusively for payment to pension funds 
must continue to be dedicated to that purpose. 
    Subd. 7.  [APPLICABILITY OF CHAPTER 353.] The provisions of 
chapter 353 shall govern in all instances where not inconsistent 
with the provisions of sections 8 to 17 for the administration 
of each local relief association consolidation account.  
    Sec. 18.  [353B.01] [LOCAL RELIEF ASSOCIATION BENEFIT PLANS;
APPLICATION.] 
    The provisions of this chapter shall govern the benefit 
coverage and payment of benefits of any person who was a member 
of a local relief association consolidating with the public 
employees police and fire fund as provided in sections 8 to 17 
and who elects to retain benefit coverage in the local relief 
association benefit plan as provided in section 15.  
    Sec. 19.  [353B.02] [DEFINITIONS.] 
    Subdivision 1.  [TERMS.] Unless the language or content 
clearly indicates otherwise, each of the following terms shall 
have the meaning ascribed to it in this section.  
     Subd. 2.  [ACCUMULATED CONTRIBUTIONS.] "Accumulated 
contributions" means the amount of member contributions to the 
credit of a covered employee made before the effective date of 
the consolidation as indicated in the records of the 
consolidating local relief association transferred to the public 
employees police and fire fund and the amount of member 
contributions made by the covered employee after the effective 
date of the consolidation.  
    Subd. 3.  [ALLOWABLE SERVICE.] "Allowable service" means 
any service rendered by a covered employee before the effective 
date of the consolidation as indicated in the records of the 
consolidating local relief association transferred to the public 
employees police and fire fund and any service rendered by a 
covered employee as a police officer or a firefighter, whichever 
applies, in the municipality in which the local relief 
association is located.  
    Subd. 4.  [COVERED EMPLOYEE.] "Covered employee" means a 
person who elects to retain benefit coverage in the local relief 
association benefit plan under section 15 and who remains 
employed in the position of a police officer or firefighter, 
whichever applies, after the effective date of the consolidation.
     Subd. 5.  [DISABILITY.] "Disability" means the inability by 
virtue of any medically determinable injury or illness to 
perform the employment duties of a police officer or 
firefighter, whichever applies, in the municipality in which the 
consolidating relief association was located.  
    Subd. 6.  [FUND.] "Fund" means the public employees police 
and fire fund established by and operating under chapter 353. 
    Subd. 7.  [PRIOR SERVICE.] "Prior service" means any period 
of military service rendered in between periods of service as a 
police officer or firefighter, whichever applies, in the 
municipality in which the consolidating relief association was 
located.  
     Subd. 8.  [RETIRED MEMBER.] "Retired member" means any 
person who is receiving a service pension or disability benefit 
following termination of active employment as a police officer 
or firefighter, whichever applies, in the municipality in which 
the consolidating relief association was located.  
    Subd. 9.  [RETIREMENT.] "Retirement" means the period 
following the termination of active employment as a police 
officer or firefighter, whichever applies, in the municipality 
in which the consolidating relief association was located and 
commencement of the payment of a service pension or disability 
benefit to the person. 
    Subd. 10.  [SALARY.] (a) "Salary" for benefit computation 
and contribution purposes means the salary of a first class or 
first grade firefighter or patrol officer, whichever applies, 
for the former members of the following consolidating relief 
associations:  
     (1) Anoka police relief association;  
     (2) Austin firefighters relief association;  
     (3) Austin police relief association;  
     (4) Columbia Heights fire department relief association, 
paid division;  
     (5) Columbia Heights police relief association;  
     (6) Fairmont police benefit association;  
     (7) Faribault fire department relief association;  
     (8) Mankato fire department relief association;  
     (9) Minneapolis fire department relief association;  
     (10) Minneapolis police relief association;  
     (11) Richfield fire department relief association;  
     (12) Rochester fire department relief association;  
     (13) Rochester police relief association;  
     (14) St. Cloud fire department relief association;  
     (15) St. Cloud police relief association;  
     (16) St. Paul fire department relief association;  
     (17) South St. Paul firefighters relief association;  
     (18) West St. Paul firefighters relief association;  
     (19) West St. Paul police relief association; and 
     (20) Winona fire department relief association. 
     (b) "Salary" for benefit computation purposes means the 
salary of a first grade patrol officer for the second month of 
the previous fiscal year and for contribution purposes means the 
current salary of a first grade patrol officer, for the former 
members of the following consolidating relief associations:  
     (1) Bloomington police relief association;  
     (2) Crystal police relief association;  
     (3) Fridley police pension association;  
     (4) Richfield police relief association;  
     (5) St. Louis Park police relief association; and 
     (6) Winona police relief association.  
     (c) "Salary" for benefit computation purposes means the 
final salary and for contribution purposes means the current 
salary for the former members of the following consolidating 
relief associations:  
     (1) Albert Lea firefighters relief association;  
     (2) Albert Lea police relief association;  
     (3) Buhl police relief association;  
     (4) Chisholm firefighters relief association;  
     (5) Crookston fire department relief association;  
     (6) Crookston police relief association;  
     (7) Faribault police benefit association;  
     (8) Red Wing police relief association; and 
     (9) Virginia fire department relief association.  
     (d) "Salary" for benefit computation purposes means the 
average earnings or salary for the final six months of 
employment before retirement and for contribution purposes means 
the current salary for the former members of the following 
consolidating relief associations:  
     (1) Chisholm police relief association;  
     (2) Hibbing firefighters relief association; and 
     (3) Hibbing police relief association.  
     (e) "Salary" for benefit computation purposes means the 
greater of the final salary at retirement or the highest salary 
of a patrol officer and for contribution purposes means the 
greater of the current salary or the current highest salary of a 
patrol officer for the former members of the following 
consolidating relief associations:  
     (1) Brainerd police benefit association; and 
     (2) New Ulm police relief association.  
     (f) "Salary" for benefit computation and contribution 
purposes means the following for the former members of the 
consolidating relief associations as indicated:  
    (1) maximum pay of a firefighter, Duluth firefighters 
relief association;  
    (2) salary of a first class patrol officer with 16 years of 
service, Duluth police pension association; 
    (3) base salary for the rank currently held, plus longevity 
pay, pay for eligibility for next higher rank and pay for first 
aid care, Mankato police benefit association;  
    (4) average annual salary for highest three paid years for 
benefit computation purposes and current salary for contribution 
purposes, Red Wing fire department relief association; 
    (5) pay of the highest grade full time firefighter, St. 
Louis Park fire department relief association; 
    (6) maximum monthly pay of a patrol officer, St. Paul 
police relief association; 
    (7) prevailing base pay of rank held at retirement for 
benefit computation purposes and current salary for contribution 
purposes, South St. Paul police relief association; and 
    (8) prevailing pay for rank held for at least six months 
before retirement for benefit computation purposes and current 
salary for contribution purposes, Virginia police relief 
association.  
    Subd. 11.  [SALARY BASE.] "Salary base" means the salary 
amount as defined in subdivision 10 to which a specified 
percentage rate or rates shall be applied in determining a 
service pension, disability benefit, or survivor benefit.  
    Subd. 12.  [YEAR OF ALLOWABLE SERVICE.] "Year of allowable 
service" means any 12 calendar months, not necessarily 
consecutive, in which a member of a consolidating relief 
association received compensation for being a police officer or 
firefighter, whichever applies, from the municipality in which 
the consolidating relief association was located and was 
eligible to credit for service. 
    Sec. 20.  [353B.03] [COVERAGE AND TERMINATION OF COVERAGE.] 
    Any person who was a member of a consolidating relief 
association and who is a police officer or firefighter, 
whichever applies, in the municipality in which the 
consolidating relief association was located on or after the 
effective date of consolidation shall be eligible for the 
applicable benefit coverage provided for in this chapter.  
     Upon termination of active employment in the position which 
gave rise to the eligibility of the person for coverage by this 
chapter, that eligibility for benefit coverage shall terminate.  
    Sec. 21.  [353B.04] [ADMINISTRATION.] 
    The benefit coverage under this chapter shall be 
administered by the public employees retirement association.  
Unless otherwise specified and where not inconsistent with a 
provision of this chapter, the provisions of chapter 353 shall 
govern in the administration of this chapter.  
    Sec. 22.  [353B.05] [LOCAL RELIEF ASSOCIATION ACCOUNTS 
WITHIN FUND.] 
    Subdivision 1.  [ACCOUNTS.] The local relief association 
consolidation accounts are governed by section 16.  
    Subd. 2.  [MEMBER CONTRIBUTION RATES.] (a) Except as 
provided in paragraph (b), the member contribution rate for all 
consolidating local relief association members shall be eight 
percent of salary.  
     (b) The member contribution rate shall be the following for 
the former members of the consolidating relief associations as 
indicated: 
    (1) The federal insurance contribution act percentage 
amount plus four percent applied to salary equal to or less than 
the Federal Social Security Act taxable wage base and four 
percent applied to salary in excess of the Federal Social 
Security Act taxable wage base, Mankato fire department relief 
association, and Mankato police benefit associations; 
    (2) 8.75 percent of salary, New Ulm police relief 
association; and 
    (3) 8.25 percent of salary, St. Cloud police relief 
association.  
    Subd. 3.  [ACCOUNT DISBURSEMENT RESTRICTED.] A local relief 
association consolidation account shall be disbursed only for 
the purposes provided in sections 8 to 17 and this chapter.  The 
amounts necessary to make authorized disbursements from a local 
relief association consolidation account are annually 
appropriated.  
    Sec. 23.  [353B.06] [TREASURER OF ACCOUNTS; INVESTMENT.] 
    Subdivision 1.  [TREASURER.] The state treasurer is the ex 
officio treasurer of the accounts as provided in section 353.05. 
    Subd. 2.  [INVESTMENT.] The assets of the account shall be 
invested by the state board of investment as provided in section 
353.06. 
    Sec. 24.  [353B.07] [SERVICE PENSIONS.] 
    Subdivision 1.  [AGE AND SERVICE ELIGIBILITY 
REQUIREMENTS.] (a) Except as provided in paragraph (b), upon 
termination of active employment as a police officer or 
firefighter, whichever applies, in the city in which the 
consolidating local relief association was located, a person 
who was a member of a consolidating local relief association who 
has attained the age of at least 50 years and who has credit for 
at least 20 years of allowable service shall be entitled upon 
application to receive a service pension. 
     (b) The age and service eligibility requirements upon 
termination of active employment as a police officer or 
firefighter, whichever applies, in the city in which the 
consolidating local relief association was located for 
entitlement upon application for the receipt of a service 
pension shall be the following for the former members of the 
consolidating relief associations as indicated: 
    (1) attainment of the age of 55 years and the acquisition 
of credit for at least 20 years of allowable service, Chisholm 
firefighters relief association and Chisholm police relief 
association; 
    (2) attainment of the age of 60 years and the acquisition 
of credit for at least 20 years of allowable service, Crookston 
fire department relief association; 
    (3) attainment of the age of 50 years and the acquisition 
of credit for at least ten years of allowable service, Crookston 
police relief association; 
    (4) attainment of the age of 50 years and the acquisition 
of credit for at least ten years of allowable service, Fridley 
police pension association; 
    (5) attainment of the age of 55 years and the acquisition 
of credit for at least 20 years of allowable service, Hibbing 
firefighters relief association and Hibbing police relief 
association; 
    (6) attainment of the age of 50 years if first employed 
before January 1, 1968, or of the age of 55 years if first 
employed after December 31, 1967, and the acquisition of credit 
for at least 20 years of allowable service, Richfield fire 
department relief association; 
    (7) attainment of the age of 55 years and the acquisition 
of credit for at least 20 years of allowable service credit, 
Richfield police relief association; 
    (8) attainment of the age of 50 years if first employed 
prior to July 1, 1969, or of the age of 55 years if first 
employed after June 30, 1969, and the acquisition of credit for 
at least 20 years of allowable service, Rochester fire 
department relief association and Rochester police relief 
association; and 
    (9) attainment of the age of 55 years and the acquisition 
of credit for at least 20 years of allowable service, West St. 
Paul firefighters relief association.  
    Subd. 2.  [SERVICE PENSION.] The service pension shall be 
the formula percentage rate or rates specified in subdivision 4 
applied to the salary base cited in section 19, subdivision 11.  
    Subd. 3.  [FORMULA PERCENTAGE RATE.] (a) The formula 
percentage rate shall be 2.333 percent per year of allowable 
service for each of the first 20 years of allowable service, 
1.333 percent per year of allowable service for each year of 
allowable service in excess of 20 years but not in excess of 27 
years, and .5 percent for each year of allowable service in 
excess of 25 years for the former members of the following 
consolidating relief associations: 
    (1) Rochester fire department relief association; 
    (2) Rochester police relief association; 
    (3) St. Cloud fire department relief association; 
    (4) St. Cloud police relief association; 
    (5) St. Louis Park police relief association; and 
    (6) Winona police relief association. 
    (b) The formula percentage rate shall be 2.5 percent per 
year of allowable service for each of the first 20 years of 
allowable service for the former members of the following 
consolidating relief associations: 
    (1) Albert Lea police relief association; 
    (2) Anoka police relief association; 
    (3) Faribault fire department relief association; 
    (4) Faribault police benefit association; 
    (5) Mankato police benefit association; 
     (6) Red Wing police relief association; and 
    (7) West St. Paul police relief association.  
    (c) The formula percentage rate shall be 2.5 percent per 
year of allowable service for each of the the first 20 years of 
allowable service and .5 percent per year of allowable service 
for each year of service in excess of 25 years of allowable 
service for the former members of the following consolidating 
relief associations:  
    (1) Austin firefighters relief association; 
    (2) Austin police relief association; 
    (3) South St. Paul firefighters relief association; 
    (4) South St. Paul police relief association; and 
    (5) Virginia police relief association. 
    (d) The formula percentage rate shall be 2.1875 percent per 
year of allowable service for each of the first 20 years of 
allowable service and 1.25 percent per year of allowable service 
for each year of allowable service in excess of 20 years of 
allowable service but not in excess of 27 years of allowable 
service for the former members of the following consolidating 
relief associations: 
    (1) Bloomington police relief associations; and 
    (2) Columbia Heights police relief association.  
    (e) The formula percentage rate shall be 2.65 percent per 
year of allowable service for each of the first 20 years of 
allowable service and an additional annual benefit of $120 per 
year of allowable service in excess of 20 years of allowable 
service but not in excess of 25 years of allowable service for 
the former members of the following consolidating relief 
associations:  
    (1) Hibbing firefighters relief association; and 
    (2) Hibbing police relief association. 
    (f) The formula percentage rate or rates shall be the 
following for the former members of the consolidating relief 
associations as indicated: 
    (1) 2.5 percent per year of allowable service for each of 
the first 20 years of allowable service, one percent per year of 
allowable service in excess of 20 years of allowable service but 
not more than 25 years of allowable service, and 1.5 percent per 
year of allowable service in excess of 25 years of allowable 
service, Albert Lea firefighters relief association; 
    (2) the greater of 2.5 percent per year of allowable 
service for each of the first 20 years of allowable service 
applied to the final salary base, or two percent per year of 
allowable service for each of the first 20 years of allowable 
service applied to top grade patrol officer's salary base, 
Brainerd police relief association; 
    (3) 4.25 percent per year of allowable service for each of 
the first 20 years of allowable service and an additional 
benefit of $10 per month per year of allowable service in excess 
of 20 years of allowable service but not more than 25 years of 
allowable service, Buhl police relief association; 
    (4) 2.5 percent per year of allowable service for each of 
the first 20 years of allowable service and an additional 
benefit of $5 per month per year of allowable service in excess 
of 20 years of allowable service but not more than 25 years of 
allowable service, Chisholm firefighters relief association; 
    (5) 2.5 percent per year of allowable service for each of 
the first 20 years of allowable service and an additional 
benefit of $5 per month per year of allowable service in excess 
of 20 years of allowable service but not more than 25 years of 
allowable service and .5 percent per year of allowable service 
in excess of 25 years of allowable service, Chisholm police 
relief association; 
    (6) 2.1875 percent per year of allowable service for each 
year of the first 20 years of allowable service, 1.25 percent 
per year of allowable service in excess of 20 years of allowable 
service but not more than 25 years of allowable service and 1.75 
percent per year of allowable service in excess of 25 years of 
allowable service, Columbia Heights fire department relief 
association, paid division; 
    (7) 2.5 percent per year of allowable service for each year 
of the first 20 years of allowable service and 1.5 percent per 
year of allowable service rendered after attaining the age of 60 
years, Crookston fire department relief association; 
    (8) 2.5 percent per year of allowable service for each year 
of the first 30 years of allowable service, Crookston police 
relief association; 
    (9) 2.25 percent per year of allowable service for each 
year of the first 20 years of allowable service and 1.25 percent 
per year of allowable service in excess of 20 years of allowable 
service, but not more than 27 years of service, Crystal police 
relief association; 
    (10) 1.99063 percent per year of allowable service for each 
year of the first 20 years of allowable service, 1.25 percent 
for the 21st year of allowable service, and 2.5 percent per year 
of allowable service in excess of 21 years of allowable service 
but not more than 25 years of allowable service, Duluth 
firefighters relief association; 
    (11) 1.9875 percent per year of allowable service for each 
year of the first 20 years of allowable service, 1.25 percent 
for the 21st year of allowable service, and 2.5 percent per year 
of allowable service in excess of 21 years of allowable service 
but not more than 25 years of allowable service, Duluth police 
relief association; 
    (12) 2.5 percent per year of allowable service for each 
year of the first 20 years of allowable service, and two percent 
per year of allowable service in excess of 20 years but not more 
than 25 years of allowable service and not to include any year 
of allowable service rendered after attaining the age of 55 
years, Fairmont police benefit association; 
    (13) two percent per year of allowable service for each 
year of the first ten years of allowable service, 2.67 percent 
per year of allowable service in excess of ten years of 
allowable service but not more than 20 years of allowable 
service and 1.3333 percent per year of allowable service in 
excess of 20 years of service but not more than 27 years of 
allowable service, Fridley police pension association; 
    (14) 2.5 percent per year of allowable service for each 
year of the first 20 years of allowable service and an 
additional annual amount of $30 per year of allowable service in 
excess of 20 years of allowable service but not more than 30 
years of allowable service, Mankato fire department relief 
association; 
    (15) 2.0625 percent per year of allowable service for each 
year of the first 20 years of allowable service, 1.25 percent 
per year of allowable service in excess of 20 years of allowable 
service but not more than 24 years of allowable service and five 
percent for the 25th year of allowable service, Minneapolis fire 
department relief association; 
    (16) 2.125 percent per year of allowable service for each 
year of the first 20 years of allowable service, 1.25 percent 
per year of allowable service in excess of 20 years of allowable 
service but not more than 24 years of allowable service, and 
five percent for the 25th year of allowable service, Minneapolis 
police relief association; 
    (17) the greater of 2.5 percent per year of allowable 
service for each of the first 20 years of allowable service 
applied to the final salary base, or two percent per year of 
allowable service for each of the first 20 years of allowable 
service applied to highest patrol officer's salary base plus .5 
percent of the final salary base per year of allowable service 
for each of the first three years of allowable service in excess 
of 20 years of allowable service, New Ulm police relief 
association; 
    (18) two percent per year of allowable service for each of 
the first 25 years of allowable service and 1.5 percent per year 
of allowable service in excess of 25 years of allowable service, 
Red Wing fire department relief association; 
    (19) 2.55 percent per year of allowable service for each of 
the first 20 years of allowable service, Richfield fire 
department relief association; 
    (20) 2.4 percent per year of allowable service for each of 
the first 20 years of allowable service and 1.3333 percent per 
year of allowable service in excess of 20 years of allowable 
service but not more than 27 years of allowable service, 
Richfield police relief association; 
     (21) for a former member with less than 20 years of 
allowable service on June 16, 1985, 2.6 percent, and for a 
former member with 20 or more years of allowable service on June 
16, 1985, 2.6175 percent for each of the first 20 years of 
allowable service and, for each former member, one percent for 
each year of allowable service in excess of 20 years, but no 
more than 30 years, St. Louis Park fire department relief 
association; 
    (22) 1.9375 percent per year of allowable service for each 
of the first 20 years of allowable service, 2.25 percent per 
year of allowable service in excess of 20 years of allowable 
service but not more than 25 years of allowable service, and .5 
percent per year of allowable service in excess of 25 years of 
allowable service, St. Paul fire department relief association; 
    (23) two percent per year of allowable service for each of 
the first 25 years of allowable service and .5 percent per year 
of allowable service in excess of 25 years of allowable service, 
St. Paul police relief association; 
    (24) 2.25 percent per year of allowable service for each of 
the first 20 years of allowable service and one percent per year 
of allowable service in excess of 20 years but not more than 25 
years of allowable service and .5 percent per year of allowable 
service in excess of 25 years, Virginia fire department relief 
association; 
    (25) two percent per year of allowable service for each of 
the first 20 years of allowable service, one percent per year of 
allowable service in excess of 20 years but not more than 24 
years of allowable service, three percent for the 25th year of 
allowable service and one percent per year of allowable service 
in excess of 25 years of allowable service but not more than 30 
years of allowable service, West St. Paul firefighters relief 
association; and 
    (26) 2.333 percent for each of the first 20 years of 
allowable service, 1.333 percent for each year of allowable 
service in excess of 20 years but no more than 28 years, and .5 
percent for each year of allowable service in excess of 25 
years, Winona fire department relief association. 
    Subd. 4.  [APPLICATION.] The application for a service 
pension shall be made in writing on a form prescribed by the 
executive director of the public employees retirement 
association by the person entitled to the service pension, or by 
a person authorized to act on the behalf of that person, and 
shall be accompanied by appropriate substantiation in writing of 
the age of the person entitled to the service pension.  
    Subd. 5.  [ACCRUAL.] A service pension governed by this 
section shall accrue as provided in section 353.29, subdivision 
7.  
    Subd. 6.  [PAYMENT.] Payment of a service pension governed 
by this section shall be made in accordance with section 353.29, 
subdivision 8.  
    Subd. 7.  [REEMPLOYMENT OF SERVICE PENSIONER.] The 
reemployment of a person receiving a service pension governed by 
this section by the municipality in which the consolidating 
local relief association was located or any governmental 
subdivision as that term is defined in section 353.01, 
subdivision 6, shall not effect the amount of the service 
pension.  
    Sec. 25.  [353B.08] [DISABILITY BENEFITS.] 
    Subdivision 1.  [DUTY DISABILITY ELIGIBILITY REQUIREMENTS.] 
(a) For any former member of a consolidating relief association, 
upon termination of active employment as a police officer or 
firefighter, whichever applies, in the municipality in which the 
consolidating local relief association was located, any person 
who was a member of a consolidating local relief association who 
is not entitled to a service pension, who becomes disabled from 
an injury or illness arising out of or in the course of the line 
of duty shall be entitled upon application to receive a duty 
disability benefit. 
    (b) The additional requirement of the acquisition of credit 
for at least one month of allowable service credit shall apply 
for former members of the Winona fire department relief 
association. 
    Subd. 2.  [NONDUTY DISABILITY ELIGIBILITY REQUIREMENTS.] (a)
For any former member of a consolidating relief association, 
upon termination of active employment as a police officer or 
firefighter, whichever applies, in the municipality in which the 
consolidating local relief association was located, any person 
who was a member of a consolidating local relief association, 
who is not entitled to a service pension, who becomes disabled 
from an injury or illness which does not arise out of or does 
not occur in the course of the line of duty shall be entitled 
upon application to receive a nonduty disability benefit. 
    (b) The following additional requirement shall apply for 
the former members of the consolidating relief associations as 
indicated: 
    (1) the acquisition of credit for at least ten years of 
allowable service credit, Chisholm firefighters relief 
association; and 
    (2) the acquisition of credit for at least one month of 
allowable service credit, Winona fire department relief 
association.  
    Subd. 2a.  [CLASSES OF DISABILITIES IN CERTAIN INSTANCES.] 
(a) Except as specified in paragraph (b), there shall be no 
classes of disabilities or disability benefits for former 
members of consolidating relief associations.  
    (b) The classes for disabilities and disability benefits 
shall be the following for the former members of the 
consolidating relief associations as indicated: 
    (1) A first class disability shall be a total inability to 
engage in any gainful employment resulting from any medically 
determinable injury or illness, a second class disability shall 
be an inability to engage in any gainful employment resulting 
from any medically determinable injury or illness which is 
greater than a 50 percent inability and less than a total 
inability, and a third class disability shall be an inability to 
engage in any gainful employment resulting from any medically 
determinable injury or illness which is less than a 50 percent 
inability but is an inability to perform the duties of a 
firefighter in the municipality, Hibbing firefighters relief 
association; and 
    (2) A disability shall be an inability to perform the 
duties of a firefighter in the municipality resulting from any 
medically determinable injury or illness, with a first class 
disability additionally requiring an inability to perform any 
manual labor, a second class disability additionally 
encompassing a disability less severe than a first class 
disability allowing for the performance of light manual labor or 
office work and a third class disability additionally 
encompassing a disability less severe than a second class 
disability allowing for the performance of manual labor which is 
less strenuous or demanding than light manual labor, Minneapolis 
fire department relief association.  
    Subd. 3.  [APPLICATION.] Every claim or demand for a 
disability benefit shall be initiated by a written application 
on a form prescribed by the executive director of the public 
employees retirement association which shall be accompanied by 
medical evidence to support the claimed disability. 
    Subd. 4.  [MEDICAL EVIDENCE; BENEFIT ELIGIBILITY; 
DETERMINATION.] The medical basis for the claimed disability and 
the eligibility for a disability benefit shall be evaluated by 
the medical advisor for the public employees retirement 
association.  If the submitted medical evidence is not 
conclusive to establish the claimed disability and eligibility 
for a disability benefit, the medical advisor shall notify the 
executive director of the public employees retirement 
association of that situation and the executive director shall 
undertake referral of the applicant to the applicable medical 
consultants for examination and medical recommendation.  The 
recommendation of the medical advisor and that of any medical 
consultants shall be reviewed by the executive director.  If 
there is sufficient evidence of the claimed disability and 
eligibility for a disability benefit, the executive director of 
the public employees retirement association shall grant the 
person the disability benefit.  An appeal of any adverse 
determination may be made to the board of the public employees 
retirement association.  
    Subd. 5.  [BENEFIT ACCRUAL.] The benefit shall accrue from 
the first day of the month next following the commencement of 
the disability or the first day of the month next following the 
date on which any sick leave, annual leave or salary 
continuation payments cease. 
    Subd. 6.  [DUTY DISABILITY BENEFIT AMOUNT.] (a) The duty 
disability benefit shall be an amount equal to the service 
pension amount to which the person would have been entitled if 
the person had credit for the greater of actual years of 
allowable service or 20 years of allowable service, had attained 
the minimum age for the receipt of a service pension and had 
applied for a service pension rather than a disability benefit 
for the former members of the following consolidating relief 
associations: 
    (1) Albert Lea firefighters relief association; 
    (2) Albert Lea police relief association; 
    (3) Anoka police relief association; 
    (4) Austin police relief association; 
    (5) Buhl police relief association; 
    (6) Chisholm police relief association; 
    (7) Duluth police relief association; 
    (8) Faribault fire department relief association; 
    (9) Mankato police benefit association; 
    (10) Minneapolis police relief association; 
    (11) New Ulm police relief association; 
    (12) Red Wing police relief association; 
    (13) St. Paul police relief association; 
    (14) South St. Paul police relief association; and 
    (15) Virginia police relief association. 
    (b) The duty disability benefit shall be an amount equal to 
48 percent of the salary base for the former members of the 
following consolidating relief associations: 
    (1) Fridley police pension association; 
    (2) Richfield police relief association; 
    (3) Rochester fire department relief association; 
    (4) Rochester police relief association; 
    (5) St. Cloud fire department relief association; 
    (6) St. Cloud police relief association; 
    (7) St. Louis Park police relief association; and 
    (8) Winona police relief association. 
    (c) The duty disability benefit shall be an amount equal to 
50 percent of the salary base for the former members of the 
following consolidating relief associations: 
    (1) Austin firefighters relief association; 
    (2) Crookston fire department relief association; 
    (3) Fairmont police benefit association; 
    (4) Mankato fire department relief association; 
    (5) Richfield fire department relief association; 
    (6) South St. Paul firefighters relief association; and 
    (7) Virginia fire department relief association.  
    (d) The duty disability benefit shall be an amount equal to 
45 percent of the salary base for the former members of the 
following consolidating relief associations:  
    (1) Bloomington police relief association; and 
    (2) Crystal police relief association. 
    (e) The duty disability benefit shall be an amount equal to 
40 percent of the salary base for the former members of the 
following consolidating relief associations: 
    (1) West St. Paul firefighters relief association; and 
    (2) West St. Paul police relief association.  
    (f) The duty disability benefit shall be the following for 
the former members of the consolidating relief associations as 
indicated: 
    (1) 40 percent of the top salary for a patrol officer, 
Brainerd police relief association; 
    (2) $100 per month, Chisholm firefighters relief 
association; 
    (3) 37.5 percent of the salary base if the person has 
credit for less than ten years of allowable service, 43.75 
percent of the salary base if the person has credit for more 
than nine years but less than 15 years of allowable service and 
50 percent of the salary base if the person has credit for more 
than 14 years of allowable service credit, Columbia Heights fire 
department relief association, paid division; 
    (4) 43.75 percent of the salary base, Columbia Heights 
police relief association; 
    (5) 25 percent of the salary base if the person has credit 
for less than 12 years of allowable service and an additional 
amount equal to 2.5 percent of the salary base per year if 
allowable service for each year of allowable service in excess 
of 11 years of allowable service, not more than 50 percent, 
Crookston police relief association; 
    (6) 51.0625 percent of the salary base, Duluth firefighters 
relief association; 
    (7) 12.5 percent of the salary base if the person has 
credit for less than six years of allowable service, 2.5 percent 
of the salary base per year of allowable service if the person 
has more than five years of allowable service, but not more than 
50 percent of the salary base, Faribault police benefit 
association; 
    (8) the dollar amount which equals the benefit which would 
be payable under chapter 176 for a comparable benefit which 
qualifies for a worker's compensation benefit for a first class 
disability, 75 percent of the amount payable in the event of a 
first class disability for a second class disability and 50 
percent of the amount payable in the event of a first class 
disability for a third class disability, Hibbing firefighters 
relief association; 
    (9) $120 per month, Hibbing police relief association; 
    (10) 51.25 percent of the salary base for a first class 
disability, 41.25 percent of the salary base for a second class 
disability, and 31.25 percent of the salary base for a third 
class disability, Minneapolis fire department relief association;
    (11) 40 percent of the salary base if the person has credit 
for less than 20 years of allowable service and two percent of 
the salary base per year of allowable service if the person has 
more than 19 years of allowable service, but not more than 50 
percent, Red Wing fire department relief association; 
    (12) 50 percent of the salary base if the person has credit 
for less than 20 years of allowable service and an amount equal 
to the service pension amount to which the person would have 
been entitled based on the applicable amount of allowable 
service if the person had attained the minimum age for the 
receipt of a service pension and had applied for a service 
pension rather than a disability benefit and if the person has 
credit for at least 20 years of allowable service, St. Louis 
Park fire department relief association; 
    (13) 50 percent of the salary base if the person is not 
able to perform the duties of any other gainful employment, 
39.375 percent of the salary base if the person is only able to 
perform the duties of light manual labor or office employment 
and 33.75 percent of the salary base if the person is able to 
perform the duties of other manual labor, St. Paul fire 
department relief association; and 
    (14) 42.667 percent of the salary base, Winona fire 
department relief association. 
    Subd. 7.  [NONDUTY DISABILITY BENEFIT AMOUNT.] (a) Except 
as specified in paragraph (b) or (c), the nonduty disability 
benefit shall be an amount equal to the amount of the duty 
disability benefit. 
    (b) The nonduty disability benefit shall be the following 
for the former members of the consolidating relief associations 
as indicated: 
    (1) of the salary of a top patrol officer, 30 percent if 
the person has credit for less than ten years of allowable 
service and 40 percent if the person has credit for ten or more 
years of allowable service, Brainerd police benefit association; 
    (2) a percentage of the salary base ranging from 39.8125 
percent to 51.0625 percent as determined by the executive 
director of the public employees retirement association based on 
the severity of the circumstances and the extent of disability 
of the person, applied in a uniform manner and reflective to the 
extent practicable or determinable to the past administrative 
practices of the board of the consolidating relief association 
before the effective date of the consolidation, Duluth 
firefighters relief association; 
    (3) two percent of the salary base per year of allowable 
service but in total not less than ten percent of the salary 
base and not more than 40 percent of the salary base, Red Wing 
fire department relief association; 
    (4) two percent of the salary base per year of allowable 
service but in total not more than 40 percent of the salary 
base, St. Paul police relief association; and 
    (5) 35 percent of the salary base, Virginia fire department 
relief association. 
    (c) No nonduty benefit shall be payable from the Crookston 
fire department relief association. 
    Subd. 8.  [WORKERS' COMPENSATION OFFSET.] (a) Except as 
specified in paragraph (b) and except to the extent that section 
423A.14 applies, there shall be no reduction in the amount of 
any disability benefit by virtue of the receipt of any workers' 
compensation benefit or amount under chapter 176. 
    (b) The amount of any disability benefit payable shall be 
reduced by the amount of any workers' compensation benefit or 
amount received or receivable under chapter 176 for the former 
members of the following consolidating relief associations: 
    (1) Crookston fire department relief association; 
    (2) Red Wing police relief association; and 
    (3) West St. Paul police relief association.  
    Subd. 9.  [OTHER BENEFIT OFFSETS.] (a) Except as specified 
in paragraph (b) and except to the extent that section 423A.14 
applies, there shall be no reduction in the amount of any 
disability benefit by virtue of any gainful compensation engaged 
in following the commencement of the disability benefit. 
    (b) The amount of any disability benefit payable shall be 
reduced by the amount by which the benefit and income from any 
gainful employment exceeds 120 percent of the salary base for 
the former members of the West St. Paul firefighters relief 
association. 
    Subd. 10.  [OTHER DISABILITY BENEFIT COVERAGE.] (a) For 
former members of the Buhl police relief association, a disabled 
member shall be entitled to a short term disability benefit of 
$8 per day for a maximum of 26 weeks, during which period no 
duty or nonduty disability benefit shall be payable. 
    (b) For former members of the Crookston police relief 
association, an additional benefit of $25 per month for each 
child of the disabled person who has not attained the age of 18 
years and who is actually dependent on the disabled person shall 
be payable, but in combination with the disability benefit 
payable as provided in subdivision 6 or 7, the total benefit 
shall not exceed 50 percent of the salary base.  
    Subd. 11.  [SUBSEQUENT MEDICAL REEXAMINATIONS.] 
Periodically, upon the recommendation of the medical adviser 
appointed as provided in section 353.33, subdivision 6a, based 
on the medical nature of the initial qualifying disability and 
its potential for improvement or recovery, the executive 
director of the public employees retirement association shall 
have a former member of a consolidating relief association who 
is receiving a disability benefit reexamined and reevaluated for 
continued entitlement to a disability benefit.  If, upon the 
recommendation of the medical adviser, the executive director 
determines that the person is no longer entitled to receive a 
disability benefit, the disability benefit shall be discontinued 
effective as of the first day of the second month following that 
determination and the person shall be considered for 
reemployment as a police officer or a firefighter, whichever 
applies, by the municipality in which the consolidating relief 
association was located. 
    Subd. 12.  [RETURN TO SERVICE.] If a former member of a 
consolidating relief association who was receiving a disability 
benefit returns to active employment by a governmental 
subdivision, the disability benefit shall terminate, the person 
shall return to the appropriate active member status and shall 
retain any service credit rendered before the receipt of the 
disability benefit. 
    Subd. 13.  [RECOMPUTATION OF DISABILITY BENEFIT.] (a) 
Except as additionally provided in paragraph (b), a disability 
benefit shall be recomputed as a service pension as provided in 
section 423A.11.  
    (b) A disability benefit shall be subject to the following 
recomputation as a service pension for the former members of the 
consolidating relief associations as indicated: 
    (1) for a person with 15 or more years of allowable 
service, the disability benefit shall be recomputed as a service 
pension upon the person attaining the age of 50 years based on 
credited allowable service, assuming a minimum of 20 years of 
service, Columbia Heights fire department relief association, 
paid division; 
    (2) for a person with more than 21 years of allowable 
service, the disability benefit shall be recomputed as a service 
pension upon the person attaining the age of 50 years based on 
credited allowable service, Crystal police relief association; 
and 
    (3) for a person with sufficient allowable service to 
result in a service pension amount greater than 40 percent of 
the salary base, the disability benefit shall be recomputed as a 
service pension upon the person attaining the age of 50 years 
based on credited allowable service, St. Paul police relief 
association. 
     Sec. 26.  [353B.09] [REFUND.] 
     Subdivision 1.  [ENTITLEMENT.] A former member of a 
consolidating relief association who terminates active 
employment as a police officer or firefighter, whichever 
applies, by the municipality in which the consolidating relief 
association is located, to whom no other benefit is payable and 
who is not reemployed by that or another governmental 
subdivision within a period of 30 days following the termination 
of employment shall be entitled to receive a refund. 
    Subd. 2.  [REFUND AMOUNT.] (a) Except as provided in 
paragraph (b), (c), or (d), the refund payable to a person 
entitled as provided in subdivision 1 shall be the total amount 
of accumulated member contributions, without interest. 
    (b) The refund payable to a person entitled as provided in 
subdivision 1 shall be 75 percent of the total amount of 
accumulated member contributions, without interest, for the 
former members of the following consolidating relief 
associations: 
    (1) Bloomington police relief association; 
    (2) Fridley police pension association; 
    (3) Richfield police relief association; 
    (4) Rochester fire department relief association; 
    (5) Rochester police relief association; 
    (6) St. Cloud police relief association; 
    (7) St. Louis Park police relief association; 
    (8) Winona fire department relief association; and 
    (9) Winona police relief association. 
    (c) The refund payable to a person entitled as provided in 
subdivision 1 shall be $500 plus $100 per full year of allowable 
service in excess of five years of allowable service if the 
member terminates with at least five years of allowable service 
but less than 20 years of allowable service, for the former 
members of the Minneapolis police relief association. 
    (d) No refund shall be payable for the former members of 
the following consolidating relief associations: 
    (1) Duluth firefighters relief association; 
    (2) Duluth police pension association; 
    (3) Minneapolis fire department relief association; 
    (4) St. Paul fire department relief association; and 
    (5) St. Paul police relief association. 
    Sec. 27.  [353B.10] [DEFERRED SERVICE PENSION.] 
    Subdivision 1.  [ENTITLEMENT.] (a) Except as specified in 
paragraph (b), any former member of a consolidating relief 
association who has terminated active employment, who has 
acquired sufficient allowable service credit but who has not 
attained the age applicable to that former member specified in 
section 24, subdivision 1, may, in lieu of any refund to which 
the person may be entitled, leave the amount of any accumulated 
member contributions in the local relief association 
consolidation account and thereby be entitled to a deferred 
service pension upon or after attaining the specified age. 
    (b) Any former member who has terminated active employment, 
may, in lieu of any refund to which the person may be entitled, 
leave the amount of any accumulated member contributions in the 
local relief association consolidation account and thereby be 
entitled to a deferred service pension upon or after attaining 
the applicable specified age if the person has acquired the 
amount of allowable service credit as indicated for the former 
members of the following consolidating relief associations: 
    (1) at least 20 years of allowable service if the member 
terminated active employment before attaining the age of 50 
years, deferred until the attainment of the age of 50 years, or 
at least ten years of allowable service but less than 20 years 
of allowable service if the member terminated active employment 
before attaining the age of 57 years, deferred until the 
attainment of the age of 57 years, Albert Lea police relief 
association; 
    (2) any period of allowable service, deferred until the 
attainment of the age of 50 years if first employed before 
January 1, 1968, or until the attainment of the age of 55 years 
if first employed after December 31, 1967, Richfield fire 
department relief association; 
    (3) any period of allowable service, deferred to the age of 
55 years, Richfield police relief association; 
    (4) at least ten years of allowable service, deferred until 
the latter of the attainment of the age of 50 years or the first 
day of the month following the date on which the person would 
have acquired 20 years of allowable service credit assuming 
continuous future service, St. Louis Park fire department relief 
association and St. Louis Park police relief association; and 
    (5) at least ten years of allowable service, deferred until 
the attainment of the age of 50 years, West St. Paul police 
relief association. 
    Subd. 2.  [DEFERRED SERVICE PENSION AMOUNT.] (a) Except as 
specified in paragraph (b), the deferred service pension shall 
be in the amount calculated as provided in section 24. 
    (b) The deferred service pension shall be the following for 
the former members of the consolidating relief associations as 
indicated: 
    (1) for a deferred service pension based on at least ten 
years of allowable service but less than 20 years of allowable 
service, 2.5 percent of the salary base per year of allowable 
service, Albert Lea police relief association; 
    (2) the amount calculated as provided in section 24, but 
not more than 50 percent of the salary base, Crystal police 
relief association; 
    (3) 2.5 percent per year of allowable service of the salary 
base, but not to exceed 50 percent of the salary base, Richfield 
fire department relief association; 
    (4) the amount calculated as provided in section 24, but 
not more than 54.6667 percent of the salary base, if the person 
had at least 20 years of allowable service credit, or 2.3333 
percent of the salary base per year of allowable service, but 
not more than 46.6667 percent of the salary base, if the person 
had less than 20 years of allowable service credit, and if the 
person dies before attaining the age of 55 years with less than 
20 years of allowable service credit, no survivor benefits shall 
be payable but a refund as provided in section 26 shall be 
payable, Richfield police relief association; 
    (5) the amount calculated as provided in section 24, but 
not more than 53.3333 percent of the salary base, St. Cloud fire 
department relief association and St. Cloud police relief 
association; 
    (6) the amount calculated as provided in section 24, but 
not more than 56 percent of the salary base, if the person had 
at least 20 years of allowable service credit or 2.3333 percent 
of the salary base per year of allowable service, but not more 
than 46.6667 percent of the salary base, if the person has less 
than 20 years of allowable service credit, St. Louis Park police 
relief association; 
    (7) for each of the first 20 years of allowable service 
credit, .5 percent of the salary base per year of allowable 
service for each year of allowable service rendered before 
October 1, 1965, and two percent of the salary base per year of 
allowable service for each year of allowable service rendered 
after September 30, 1965, and for each year of allowable service 
in excess of 20 years, one percent of the salary base per year 
of allowable service, but not more than 52 percent of the salary 
base, West St. Paul firefighters relief associations; 
    (8) the amount calculated as provided in section 24, but 
not more than 50.6667 percent of the salary base, Winona fire 
department relief association; and 
    (9) the amount calculated as provided in section 24, but 
not more than 53.3333 percent of the salary base, Winona police 
relief association.  
    Subd. 3.  [AUGMENTATION.] The deferred service pension 
shall not be augmented as provided in section 353.34, 
subdivision 3.  
     Sec. 28.  [353B.11] [SURVIVOR BENEFITS.] 
     Subdivision 1.  [ELIGIBILITY; SURVIVING SPOUSE BENEFIT.] (a)
Except as specified in paragraph (b), (c), (d), (e), or (f), the 
person who survives a deceased active, deferred, or retired 
member, who was legally married to the member at the time of the 
death of the deceased member, who was legally married to the 
member for at least one year before the separation from active 
service if the deceased member was a deceased, deferred, or 
retired member and who was residing with the member at the time 
of the death of the deceased member shall be entitled to receive 
a surviving spouse benefit.  
    (b) The person who survives a deceased active, deferred, or 
retired member, who was legally married to the member at the 
time of the death of the deceased member, who was legally 
married to the member at the time of separation from active 
service if the deceased member was a deceased deferred or 
retired member and who was residing with the member at the time 
of the death of the member shall be entitled to receive a 
surviving spouse benefit in the case of former members of the 
following consolidating relief associations:  
    (1) Albert Lea police relief association; 
    (2) Anoka police relief association;  
    (3) Austin firefighters relief association;  
    (4) Austin police relief association;  
    (5) Brainerd police benefit association;  
    (6) Columbia Heights police relief association;  
    (7) Crookston fire department relief association;  
    (8) Crookston police relief association;  
    (9) Fairmont police benefit association;  
    (10) Faribault police benefit association;  
    (11) Mankato fire department relief association;  
    (12) Red Wing police relief association;  
    (13) South St. Paul police relief association;  
    (14) Virginia fire department relief association;  
    (15) Virginia police relief association; and 
    (16) West St. Paul police relief association. 
     (c) The person who survives a deceased active, deferred, or 
retired member, who was legally married to the member at the 
time of the death of the deceased member, and who was legally 
married to the member at the time of separation from active 
service if the deceased member was a deceased deferred or 
retired member shall be entitled to receive a surviving spouse 
benefit in the case of former members of the following 
consolidating relief associations:  
     (1) Chisholm police relief association;  
     (2) Hibbing police relief association;  
    (3) Mankato police benefit association; and 
    (4) New Ulm police relief association.  
    (d) The person who survives a deceased active, deferred, or 
retired member, who was legally married to the member at the 
time of the death of the deceased member, who was legally 
married to the member for at least one year before the 
separation from active service if the deceased member was the 
recipient of a service pension or was entitled to a deferred 
service pension and who was residing with the member at the time 
of the death of the deceased member in the case of former 
members of the Minneapolis fire department relief association.  
    (e) The person who survives a deceased active, deferred, or 
retired member, who was legally married to the member at the 
time of the death of the deceased member, who was legally 
married to the member for at least three years before the 
separation from active service if the deceased member was a 
deceased, retired, or deferred member and who was residing with 
the member at the time of the death of the member shall be 
entitled to receive a surviving spouse benefit in the case of 
former members of the South St. Paul firefighters relief 
association.  
    (f) The person who survives a deceased active, deferred, or 
retired member who was legally married to the member at the time 
of the death of the deceased member, who was legally married to 
the member for at least one year before the separation from 
active service if the deceased member was a deceased, deferred, 
or retired member and who had not deserted the member at the 
time of the death of the deceased member shall be entitled to 
receive a surviving spouse benefit in the case of former members 
of the St. Paul police relief association. 
     Subd. 2.  [ELIGIBILITY; SURVIVING CHILD BENEFIT.] (a) 
Except as specified in paragraph (b), (c), (d), (e), (f), or 
(g), the person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member and who 
is younger than age 18 at the time of the death of the deceased 
member shall be entitled to receive a surviving child benefit.  
    (b) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member, and who 
is younger than age 18 if the person is not a full-time student 
or age 22 if the person is a full-time student shall be entitled 
to receive a surviving child benefit in the case of former 
members of the following consolidating relief associations:  
    (1) Buhl police relief association;  
    (2) Columbia Heights fire department relief association, 
paid division;  
    (3) Duluth firefighters relief association;  
    (4) Duluth police pension association;  
    (5) Minneapolis fire department relief association; 
    (6) Minneapolis police relief association; and 
    (7) St. Paul fire department relief association.  
    (c) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member and who 
is younger than age 16 shall be entitled to receive a surviving 
child benefit in the case of former members of the following 
consolidating relief associations:  
     (1) Chisholm police relief association; and 
     (2) Hibbing police relief association.  
     (d) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member and who 
is younger than age 19 shall be entitled to receive a surviving 
child benefit in the case of former members of the Albert Lea 
firefighters relief association.  
    (e) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member and who 
is younger than age 18 if the person is not a full-time student 
or age 21 if the person is a full-time student shall be entitled 
to receive a surviving child benefit in the case of former 
members of the Crookston police relief association.  
    (f) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member, who was 
dependent on the deceased member and who is younger than age 18 
shall be entitled to receive a surviving child benefit in the 
case of former members of the Red Wing police relief association.
     (g) The person who survives a deceased active, deferred, or 
retired member, who is the child of the deceased member and who 
is younger than age 18 if the person is not a full time student 
or age 23 if the person is a full-time student shall be entitled 
to receive a surviving child benefit in the case of former 
members of the St. Paul police relief association.  
    Subd. 3.  [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 
surviving spouse benefit shall be 30 percent of the salary base 
for the former members of the following consolidating relief 
associations:  
     (1) Albert Lea firefighters relief association;  
     (2) Albert Lea police relief association;  
    (3) Anoka police relief association;  
    (4) Austin firefighters relief association;  
    (5) Austin police relief association;  
    (6) Brainerd police benefit association;  
    (7) Crookston police relief association;  
    (8) Faribault fire department relief association; and 
    (9) West St. Paul firefighters relief association.  
    (b) The surviving spouse benefit shall be 25 percent of the 
salary base for the former members of the following 
consolidating relief associations:  
    (1) Chisholm police relief association;  
    (2) Duluth firefighters relief association;  
    (3) Duluth police pension association;  
    (4) Fairmont police benefit association;  
    (5) Red Wing fire department relief association; 
    (6) South St. Paul police relief association; and 
    (7) West St. Paul police relief association. 
    (c) The surviving spouse benefit shall be 24 percent of the 
salary base for the former members of the following 
consolidating relief associations: 
    (1) Fridley police pension association; 
    (2) Richfield police relief association; 
    (3) Rochester fire department relief association; 
    (4) Rochester police relief association; 
    (5) Winona fire department relief association; and 
    (6) Winona police relief association. 
    (d) The surviving spouse benefit shall be 40 percent of the 
salary base for the former members of the following 
consolidating relief associations: 
    (1) Columbia Heights fire department relief association, 
paid division; 
    (2) New Ulm police relief association; and 
    (3) Richfield fire department relief association.  
    (e) The surviving spouse benefit shall be $250 per month 
for the former members of the following consolidating relief 
associations: 
    (1) Hibbing firefighters relief association; and 
    (2) Hibbing police relief association. 
    (f) The surviving spouse benefit shall be 23.75 percent of 
the salary base for the former members of the following 
consolidating relief associations: 
    (1) Crystal police relief associations; and 
    (2) Minneapolis police relief association.  
    (g) The surviving spouse benefit shall be 32 percent of the 
salary base for the former members of the following 
consolidating relief associations: 
    (1) St. Cloud fire department relief association; and 
    (2) St. Cloud police relief association. 
    (h) The surviving spouse benefit shall be one-half of the 
service pension or disability benefit which the deceased member 
was receiving as of the date of death, or of the service pension 
which the deferred member would have been receiving if the 
service pension had commenced as of the date of death or of the 
service pension which the active member would have received 
based on the greater of the allowable service credit of the 
person as of the date of death or 20 years of allowable service 
credit if the person would have been eligible as of the date of 
death, for the former members of the following consolidating 
relief associations: 
    (1) Virginia fire department relief association; and 
    (2) Virginia police relief association. 
    (i) The surviving spouse benefit shall be the following for 
the former members of the consolidating relief associations as 
indicated: 
    (1) 25.625 percent of the salary base, Bloomington police 
relief association; 
    (2) 72.25 percent of the salary base, Buhl police relief 
association; 
    (3) 50 percent of the service pension which the active 
member would have received based on allowable service credit to 
the date of death and prospective service from the date of death 
until the date on which the person would have attained the 
normal retirement age, 50 percent of the service pension which 
the deferred member would have been receiving if the service 
pension had commenced as of the date of death or $175 per month 
if the deceased member was receiving a service pension or 
disability benefit as of the date of death, Chisholm 
firefighters relief association; 
    (4) two-thirds of the service pension or disability benefit 
which the deceased member was receiving as of the date of death, 
or of the service pension which the deferred member would have 
been receiving if the service pension had commenced as of the 
date of death or of the service pension which the active member 
would have received based on the greater of the allowable 
service credit of the person as of the date of death or 20 years 
of allowable service credit if the person would have been 
eligible as of the date of death, Columbia Heights police relief 
association; 
    (5) the greater of $300 per month or one-half of the 
service pension or disability benefit which the deceased member 
was receiving as of the date of death, or of the service pension 
which the deferred member would have been receiving if the 
service pension had commenced as of the date of death or of the 
service pension which the active member would have received 
based on the allowable service credit of the person as of the 
date of death if the person would have been eligible as of the 
date of death, Crookston fire department relief association;  
    (6) $100 per month, Faribault police benefit association;  
    (7) 60 percent of the service pension or disability benefit 
which the deceased member was receiving as of the date of death, 
or of the service pension which the deferred member would have 
been receiving if the service pension had commenced as of the 
date of death or of the service pension which the active member 
would have received based on the allowable service credit of the 
person as of the date of death if the person would have been 
eligible as of the date of death, Mankato fire department relief 
association; 
    (8) $175 per month, Mankato police benefit association;  
    (9) 26.25 percent of the salary base, Minneapolis fire 
department relief association;  
    (10) equal to the service pension or disability benefit 
which the deceased member was receiving as of the date of death, 
or of the service pension which the deferred member would have 
been receiving if the service pension had commenced as of the 
date of death or of the service pension which the active member 
would have received based on the allowable service credit of the 
person as of the date of death if the person would have been 
eligible as of the date of death, Red Wing police relief 
association; 
    (11) 40 percent of the salary base for a surviving spouse 
of a deceased active member, disabled member, or retired or 
deferred member with at least 20 years of allowable service, or 
the prorated portion of 40 percent of the salary base that bears 
the same relationship to 40 percent that the deceased member's 
years of allowable service bear to 20 years of allowable service 
for the surviving spouse of a deceased retired or deferred 
member with at least ten but less than 20 years of allowable 
service, St. Louis Park fire department relief association; 
    (12) 26.6667 percent of the salary base, St. Louis Park 
police relief association;  
    (13) 27.5 percent of the salary base, St. Paul fire 
department relief association;  
    (14) 20 percent of the salary base, St. Paul police relief 
association; and 
    (15) 27 percent of the salary base, South St. Paul 
firefighters relief association. 
    Subd. 4.  [AMOUNT; SURVIVING CHILD BENEFIT.] (a) The 
surviving child benefit shall be eight percent of the salary 
base for the former members of the following consolidating 
relief associations:  
    (1) Fridley police pension association;  
    (2) Red Wing fire department relief association;  
    (3) Richfield police relief association;  
    (4) Rochester fire department relief association;  
    (5) Rochester police relief association;  
    (6) St. Cloud police relief association;  
    (7) St. Louis Park police relief association;  
    (8) South St. Paul firefighters relief association; 
    (9) Winona fire department relief association; and 
    (10) Winona police relief association. 
    (b) The surviving child benefit shall be $25 per month for 
the former members of the following consolidating relief 
associations:  
    (1) Anoka police relief association;  
    (2) Austin firefighters relief association;  
    (3) Austin police relief association;  
    (4) Faribault police benefit association;  
    (5) Hibbing firefighters relief association;  
    (6) Mankato police benefit association;  
    (7) South St. Paul police relief association; and 
    (8) Virginia fire department relief association. 
    (c) The surviving child benefit shall be ten percent of the 
salary base for the former members of the following 
consolidating relief associations:  
    (1) Albert Lea police relief association;  
    (2) Crookston police relief association;  
    (3) Duluth firefighters relief association;  
    (4) Duluth police pension association;  
    (5) Faribault fire department relief association; and 
    (6) Minneapolis fire department relief association.  
    (d) The surviving child benefit shall be five percent of 
the salary base for the former members of the following 
consolidating relief associations:  
    (1) Columbia Heights fire department relief association, 
paid division;  
    (2) St. Paul police relief association; and 
    (3) West St. Paul firefighters relief associations.  
    (e) The surviving child benefit shall be $15 per month for 
the former members of the following consolidating relief 
associations:  
    (1) Crookston fire department relief association;  
    (2) Hibbing police relief association; and 
    (3) West St. Paul police relief association. 
    (f) The surviving child benefit shall be 7.5 percent of the 
salary base for the former members of the following 
consolidating relief associations:  
    (1) Bloomington police relief association;  
    (2) Crystal police relief association; and 
    (3) Minneapolis police relief association.  
    (g) The surviving child benefit shall be the following for 
the former members of the consolidating relief associations as 
indicated:  
    (1) ten percent of the salary base if a surviving spouse 
benefit is also payable, that amount between ten percent of the 
salary base and 50 percent of the salary base as determined by 
the executive director of the public employees retirement 
association, based on the financial circumstances and need of 
the surviving child or surviving children, applied in a uniform 
manner, reflective to the extent practicable or determinable to 
the past administrative practices of the board of the 
consolidating relief association before the effective date of 
the consolidation if there is a surviving spouse but no 
surviving spouse benefit is also payable on account of the 
remarriage of the surviving spouse, or 50 percent of the salary 
base, payable in equal shares for more than one surviving child, 
if there is no surviving spouse, Albert Lea firefighters relief 
association;  
    (2) four percent of the salary base, Brainerd police 
benefit association;  
    (3) $125 per month if a surviving spouse benefit is also 
payable or an amount equal to the surviving spouse benefit, 
payable in equal shares if there is more than one surviving 
child, if no surviving spouse benefit is payable, Buhl police 
relief association;  
    (4) $15 per month, Chisholm firefighters relief association;
    (5) $125 per month, Chisholm police relief association;  
    (6) $50 per month, Columbia Heights police relief 
association; 
    (7) 6.25 percent of the salary base, Fairmont police 
benefit association;  
    (8) 12.5 percent of the service pension or disability 
benefit which the deceased member was receiving as of the date 
of death, or of the service pension which the deferred member 
would have been receiving if the service pension had commenced 
as of the date of death or of the service pension which the 
active member would have received based on the allowable service 
credit of the person as of the date of death if the person would 
have been eligible as of the date of death, Mankato fire 
department relief association; 
    (9) $25 per month if a surviving spouse benefit is also 
payable or an amount equal to the surviving spouse benefit, 
payable in equal shares if there is more than one surviving 
child, New Ulm police relief association;  
    (10) in an amount determined by the executive director of 
the public employees retirement association based on the 
financial circumstances and need of the surviving child or 
surviving children, applied in a uniform manner, reflective to 
the extent practicable or determinable to the past 
administrative practices of the board of the consolidating 
relief association before the effective date of the 
consolidation and not more than the largest surviving child 
benefit amount prescribed for any other actual or potential 
consolidating relief association as provided in this section, 
Red Wing police relief association;  
    (11) five percent of the salary base if a surviving spouse 
benefit is also payable or 15 percent of the salary base if no 
surviving spouse benefit is payable, Richfield fire department 
relief association;  
    (12) 5.3334 percent of the salary base, St. Cloud fire 
department relief association; 
    (13) five percent of the salary base if a surviving spouse 
benefit is also payable or 15 percent of the salary base if no 
surviving spouse benefit is also payable for the surviving child 
or children of a deceased active member, disabled member, or 
retired or deferred member with at least 20 years of active 
service, or the prorated portion of five percent of the salary 
base if a surviving spouse benefit is also payable or 15 percent 
of the salary base if no surviving spouse benefit is also 
payable that bears the same relationship to five or 15 percent 
that the deceased member's years of allowable service bear to 20 
years of allowable service for the surviving child or children 
of a deceased retired or deferred member with at least ten but 
less than 20 years of allowable service, St. Louis Park fire 
department relief association; 
    (14) ten percent of the salary base, St. Paul fire 
department relief association; and 
    (15) $50 per month, Virginia police relief association. 
    Subd. 5.  [SURVIVOR BENEFIT MAXIMUM.] (a) No surviving 
children or surviving family maximum shall be applicable to 
former members of the following consolidating relief 
associations:  
    (1) Buhl police relief association;  
    (2) Chisholm firefighters relief association;  
    (3) Chisholm police relief association;  
    (4) Hibbing firefighters relief association;  
    (5) Mankato police benefit association;  
    (6) New Ulm police relief association;  
    (7) Red Wing fire department relief association;  
    (8) Red Wing police relief association;  
    (9) St. Paul police relief association; and 
    (10) South St. Paul police relief association.  
    (b) The surviving children maximum shall be 24 percent of 
the salary base, if a surviving spouse benefit is also payable 
or 48 percent of the salary base, if no surviving spouse benefit 
is also payable, for the former members of the following 
consolidating relief associations:  
     (1) Fridley police pension association;  
    (2) Richfield police relief association;  
    (3) Rochester fire department relief association;  
    (4) Rochester police relief association;  
    (5) Winona fire department relief association; and 
    (6) Winona police relief association.  
    (c) The surviving family maximum shall be 50 percent of the 
salary base for the former members of the following 
consolidating relief associations:  
    (1) Anoka police relief association;  
    (2) Austin firefighters relief association;  
    (3) Austin police relief association;  
    (4) Duluth firefighters relief association; 
    (5) Richfield fire department relief association; and 
    (6) St. Louis Park fire department relief association. 
    (d) The surviving family maximum shall be an amount equal 
to the service pension which a retiring member would have 
received based on 20 years of allowable service credit if the 
member had attained the age of at least 50 years in the case of 
an active member, or of the service pension which the deferred 
member would have been receiving if the service pension had 
commenced as of the date of death in the case of a deferred 
member, or of the service pension or disability benefit which 
the deceased member was receiving as of the date of death, for 
the former members of the following consolidating relief 
associations:  
    (1) Columbia Heights police relief association;  
    (2) Virginia fire department relief association; and 
    (3) Virginia police relief association. 
    (e) The surviving children maximum shall be 25 percent of 
the salary base, if a surviving spouse benefit is also payable 
or 50 percent of the salary base, if no surviving spouse benefit 
is also payable, for the former members of the following 
consolidating relief associations:  
    (1) Duluth police pension association; and 
    (2) Fairmont police benefit association.  
    (f) The surviving children maximum shall be 22.5 percent of 
the salary base, if a surviving spouse benefit is also payable 
or 45 percent of the salary base, if no surviving spouse benefit 
is also payable, for the former members of the following 
consolidating relief associations:  
     (1) Bloomington police relief association; and 
     (2) Crystal police relief association.  
     (g) The surviving children maximum shall be 16 percent of 
the salary base, if a surviving spouse benefit is also payable 
or 48 percent of the salary base, if no surviving spouse benefit 
is also payable, for the former members of the following 
consolidating relief associations:  
    (1) St. Cloud fire department relief association; and 
    (2) St. Cloud police relief association.  
    (h) The surviving children maximum shall be 20 percent of 
the salary base, if a surviving spouse benefit is also payable 
or 50 percent of the salary base, if no surviving spouse benefit 
is also payable, for the former members of the following 
consolidating relief associations:  
    (1) Albert Lea firefighters relief association;  
    (2) Albert Lea police relief association; and 
    (3) Faribault fire department relief association.  
    (i) The surviving family maximum shall be the following for 
the former members of the consolidating relief associations:  
    (1) $450 per month, Crookston police relief association;  
    (2) 80 percent of the service pension or disability benefit 
which the deceased member was receiving as of the date of death, 
or of the service pension which the deferred member would have 
been receiving if the service pension had commenced as of the 
date of death or of the service pension which the active member 
would have received based on the greater of the allowable 
service credit of the person as of the date of death or 20 years 
of allowable service credit if the person would have been 
eligible as of the date of death, Mankato fire department relief 
association; and 
    (3) 57.5 percent of the salary base, St. Paul fire 
department relief association.  
    (j) The surviving child maximum shall be the following for 
the former members of the consolidating relief associations:  
    (1) 20 percent of the top salary payable to a patrol 
officer, Brainerd police benefit association;  
    (2) ten percent of the salary base, if a surviving spouse 
benefit is also payable or 15 percent of the salary base, if no 
surviving spouse benefit is also payable, Columbia Heights fire 
department relief association, paid division;  
    (3) $105 per month if a surviving spouse benefit is also 
payable or $90 per month if no surviving spouse benefit is also 
payable, Crookston fire department relief association; 
    (4) $125 per month, Faribault police benefit association;  
    (5) $30 per month if a surviving spouse benefit is also 
payable or $180 per month if no surviving spouse benefit is also 
payable, Hibbing police relief association;  
    (6) 25 percent of the salary base, if a surviving spouse 
benefit is also payable or 51.25 percent of the salary base, if 
no surviving spouse benefit is also payable, Minneapolis fire 
department relief association;  
    (7) 17.5 percent of the salary base, if a surviving spouse 
benefit is also payable or 40 percent of the salary base, if no 
surviving spouse benefit is also payable, Minneapolis police 
relief association;  
    (8) 24 percent of the salary base, St. Louis Park police 
relief association;  
    (9) 23 percent of the salary base, if a surviving spouse 
benefit is also payable or 50 percent of the salary base, if no 
surviving spouse benefit is also payable, South St. Paul 
firefighters relief association;  
    (10) ten percent of the salary base, West St. Paul 
firefighters relief association; and 
    (11) $30 per month if a surviving spouse benefit is also 
payable or $75 per month if no surviving spouse benefit is also 
payable, West St. Paul police relief association. 
    Subd. 6.  [DISCONTINUATION; SURVIVING SPOUSE BENEFIT.] (a) 
Except as specified in paragraph (b) or (c), a surviving spouse 
benefit shall terminate upon the death or the subsequent 
marriage of the person entitled to receive or receiving a 
surviving spouse benefit.  
     (b) A surviving spouse benefit shall terminate upon the 
subsequent marriage of the person entitled to receive or 
receiving a surviving spouse benefit but shall recommence at the 
appropriate amount without any retroactive payments in the event 
of the termination of the subsequent marriage for any reason for 
the former members of the following consolidating relief 
associations:  
    (1) Albert Lea firefighters relief association;  
    (2) Albert Lea police relief association;  
    (3) Duluth firefighters relief association;  
    (4) Duluth police pension association; 
    (5) Minneapolis fire department relief association;  
    (6) St. Paul fire department relief association; and 
    (7) St. Paul police relief association.  
    (c) A surviving spouse benefit shall terminate only upon 
the death of the person entitled to receive or receiving a 
surviving spouse benefit for the former members of the following 
consolidating relief associations:  
    (1) Mankato fire department relief association;  
    (2) South St. Paul firefighters relief association;  
    (3) South St. Paul police relief association;  
    (4) West St. Paul firefighters relief association; and 
    (5) Winona fire department relief association.  
    Subd. 7.  [DISCONTINUATION; SURVIVING CHILD BENEFIT.] A 
surviving child benefit shall terminate upon the loss of 
eligible surviving child status by the person previously 
entitled to receive or receiving a surviving child benefit.  
    Subd. 8.  [OTHER DEATH BENEFIT COVERAGE.] Any lump sum 
death benefit or funeral benefit provided for in the governing 
benefit plan documents shall be considered to be special benefit 
coverage governed by section 15, subdivision 6, for the former 
members of the following consolidating relief associations:  
    (1) Crookston fire department relief association;  
    (2) Hibbing firefighters relief association;  
    (3) Mankato fire department relief association;  
    (4) Red Wing fire department relief association; and 
    (5) Richfield fire department relief association.  
    Sec. 29.  [353B.12] [POSTRETIREMENT BENEFIT ADJUSTMENTS.] 
    Subdivision 1.  [SERVICE PENSION.] (a) Except as specified 
in paragraph (b), (c), (d), or (e), any service pension payable 
to a former member of a consolidating relief association shall 
be increased annually by the same percentage that the salary 
base has increased.  
    (b) The amount of any service pension other than any 
additional benefit on one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of service shall be increased annually by the same 
percentage that the salary base has increased for former members 
of the following consolidating relief associations:  
    (1) Austin firefighters relief association;  
    (2) Austin police relief association;  
    (3) Columbia Heights fire department relief association, 
paid division; 
    (4) Columbia Heights police relief association;  
    (5) St. Paul fire department relief association;  
    (6) St. Paul police relief association;  
    (7) South St. Paul firefighters relief association;  
    (8) South St. Paul police relief association;  
    (9) Virginia police relief association;  
    (10) Winona fire department relief association; and 
    (11) Winona police relief association.  
    (c) The amount of any service pension other than any 
additional benefit on one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of service shall be increased annually by the same 
percentage that the salary base has increased for former members 
employed before July 1, 1969, and by one-half of the dollar 
amount of the increase payable to former members employed before 
July 1, 1969, for former members employed after June 30, 1969, 
of the following consolidating relief associations:  
    (1) Rochester fire department relief association; and 
    (2) Rochester police relief association.  
    (d) The amount of any service pension shall not be subject 
to any annual postretirement adjustment for former members of 
the following consolidating relief associations:  
    (1) Crookston fire department relief association; and 
    (2) Crookston police relief association.  
    (e) The amount of the annual postretirement adjustment 
shall be the following for the former members of the 
consolidating relief associations as indicated:  
    (1) the amount of any service pension other than any 
additional benefit of one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of service shall be increased annually by the same 
percentage that the salary of a top grade firefighter has 
increased, Albert Lea firefighters relief association;  
    (2) the amount of any service pension shall be increased by 
the amount of any positive difference between the service 
pension payable for the month before the effective date of a 
postretirement increase and the amount equal to 50 percent of 
the salary of a first class patrol officer on the effective date 
of a postretirement increase, Albert Lea police relief 
association;  
    (3) for a service pension calculated using the top salary 
of a patrol officer, the service pension shall be increased by 
an amount equal to the percentage that the top salary of a 
patrol officer has increased, Brainerd police benefit 
association;  
    (4) the amount of any service pension shall be increased by 
3.5 percent annually if there is any increase in the salary 
base, Buhl police relief association;  
    (5) the amount of any service pension shall be increased by 
three percent annually if there is any increase in the salary 
base, Chisholm firefighters relief association;  
    (6) the amount of any service pension other than any 
additional benefit of one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of service shall be increased by three percent 
annually, Chisholm police relief association;  
    (7) the amount of any service pension shall be increased by 
an amount equal to one-half of the percentage that the salary 
base has increased, Faribault police benefit association;  
    (8) the amount of any service pension based on at least 20 
years of allowable service shall be increased by the same 
percentage that the salary base has increased and the amount of 
any service pension based on less than 20 years of allowable 
service shall be increased by the percentage that the salary 
base has increased or by three percent, whichever is less, 
annually, Fridley police pension association; 
    (9) the amount of any service pension shall be increased by 
one-half of the dollar amount of any increase in the salary 
base, Hibbing police relief association;  
    (10) for a service pension calculated using the salary of 
the highest salaried patrol officer, the service pension other 
than any additional benefit of one-half of one percent of final 
salary for the first three years of allowable service in excess 
of 20 years of allowable service shall be increased by the same 
percentage that the salary of the highest salaried patrol 
officer has increased, New Ulm police relief association;  
    (11) the amount of any service pension other than any 
additional benefit of one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of allowable service shall be increased by the same 
percentage that the consumer price index for all items for urban 
wage earners published by the federal Department of Labor, 
Bureau of Labor Statistics, has increased over the previous 
12-month period, Red Wing fire department relief association;  
    (12) the amount of any service pension shall be increased 
by the same percentage that the consumer price index for all 
items for urban wage earners published by the federal Department 
of Labor, Bureau of Labor Statistics, has increased over the 
previous 12-month period, Red Wing police relief association;  
    (13) the amount of any service pension other than any 
additional benefit of one-half of one percent of the salary base 
per year of allowable service for allowable service in excess of 
25 years of allowable service shall be increased by the same 
percentage that the salary base has increased or by 3.5 percent, 
whichever is less, annually, Virginia fire department relief 
association; and 
    (14) the amount of any service pension payable to a person 
who has attained the age of at least 55 years shall be increased 
by the same percentage that the salary base has increased or by 
3.5 percent, whichever is less, annually, West St. Paul police 
relief association.  
    Subd. 2.  [DEFERRED SERVICE PENSION.] (a) Except as 
specified in paragraph (b), any deferred service pension payable 
to a former member of a consolidating relief association shall 
be credited annually with an increase of the same percentage or 
amount that a service pension is to be increased as provided in 
subdivision 1.  The amount of any postretirement increases 
credited during the period of deferral shall be added to the 
amount of the service pension payable as of the date of the 
termination of employment as a police officer or firefighter, 
whichever applies, and payable as of the date of the initial 
service pension payment as provided in section 27.  
    (b) Any deferred service pension shall not be subject to 
any postretirement adjustment for former members of the 
following consolidating relief associations:  
    (1) Crookston fire department relief association; and 
    (2) Crookston police relief association.  
    Subd. 3.  [DISABILITY BENEFIT.] (a) Except as specified in 
paragraph (b), (c), and (d), any disability benefit payable to a 
former member of a consolidating relief association shall be 
increased annually by the same percentage or amount that a 
service pension is to be increased as provided in subdivision 1. 
    (b) The amount of any disability benefit shall not be 
subject to any annual postretirement adjustment for former 
members of the following consolidating relief associations:  
    (1) Crookston fire department relief association;  
    (2) Crookston police relief association; and 
    (3) Hibbing firefighters relief association.  
    (c) The amount of any disability benefit shall be increased 
annually by the same percentage that the salary of the position 
which the disabled person held at the time of the disability has 
increased over the previous 12-month period for former members 
of the Columbia Heights police relief association.  
    (d) The amount of any disability benefit shall be increased 
annually by the amount of any positive difference between the 
disability benefit payable for the month before the effective 
date of a postretirement increase and the amount equal to 50 
percent of the salary of a first class patrol officer on the 
effective date of a postretirement increase for former members 
of the Albert Lea police relief association.  
    Subd. 4.  [SURVIVING SPOUSE BENEFIT.] (a) Except as 
specified in paragraph (b), (c), and (d), any surviving spouse 
benefit payable on behalf of a deceased former member of a 
consolidating relief association shall be increased annually by 
the same percentage or amount that a service pension is to be 
increased as provided in subdivision 1.  
    (b) The amount of any surviving spouse benefit shall not be 
subject to any annual postretirement adjustment for former 
members of the following consolidating relief associations:  
    (1) Buhl police relief association;  
    (2) Chisholm firefighters relief association;  
    (3) Chisholm police relief association;  
    (4) Crookston fire department relief association;  
    (5) Crookston police relief association;  
    (6) Faribault police benefit association;  
    (7) Hibbing firefighters relief association;  
    (8) Hibbing police relief association; and 
    (9) Mankato police benefit association.  
    (c) The amount of any surviving spouse benefit shall be 
increased annually by the percentage that the salary base has 
increased over the previous 12-month period for former members 
of the West St. Paul police relief association. 
    (d) The amount of any surviving spouse benefit shall be 
increased annually by the amount of any positive difference 
between the surviving spouse benefit payable for the month 
before the effective date of a postretirement increase and the 
amount equal to 30 percent of the salary of a first class patrol 
officer on the effective date of a postretirement increase for 
former members of the Albert Lea police relief association.  
    Subd. 5.  [SURVIVING CHILD BENEFIT.] (a) Except as 
specified in paragraph (b), (c), and (d), any surviving child 
benefit payable on behalf of a former member of a consolidating 
relief association shall be increased annually by the same 
percentage or amount that a service pension is to be increased 
as provided in subdivision 1.  
    (b) The amount of any surviving child benefit shall not be 
subject to any annual postretirement adjustment for former 
members of the following consolidating relief associations:  
    (1) Anoka police relief association;  
    (2) Austin firefighters relief association;  
    (3) Austin police relief association;  
    (4) Buhl police relief association;  
    (5) Chisholm firefighters relief association;  
    (6) Chisholm police relief association;  
    (7) Columbia Heights police relief association;  
    (8) Crookston fire department relief association;  
    (9) Crookston police relief association;  
    (10) Faribault police benefit association;  
    (11) Hibbing firefighters relief association;  
    (12) Hibbing police relief association;  
    (13) Mankato police benefit association;  
    (14) Red Wing police relief association;  
    (15) South St. Paul police relief association;  
    (16) Virginia fire department relief association;  
    (17) Virginia police relief association; and 
    (18) West St. Paul police relief association.  
    (c) The amount of any surviving child benefit shall be 
subject to an annual postretirement adjustment only if no 
surviving spouse benefit is also payable and the annual 
adjustment shall be the same percentage or amount that a service 
pension is to be increased as provided in subdivision 1 for 
former members of the New Ulm police relief association.  
    (d) The amount of any surviving child benefit shall be 
increased annually by the amount of any positive difference 
between the surviving child benefit payable for the month before 
the effective date of a postretirement increase and the amount 
equal to ten percent of the salary of a first class patrol 
officer on the effective date of a postretirement increase for 
former members of the Albert Lea police relief association.  
    Subd. 6.  [FAMILY MAXIMUM BENEFIT.] (a) Except as specified 
in paragraph (b), any family maximum benefit payable on behalf 
of a former member of a consolidating relief association shall 
be increased as provided for its component surviving spouse or 
surviving child benefits.  
    (b) The amount of any family maximum benefit shall be 
increased annually by the amount of any positive difference 
between the family maximum benefit payable for the month before 
the effective date of a postretirement increase and the amount 
equal to 50 percent of the salary of a first class patrol 
officer on the effective date of a postretirement increase for 
former members of the Albert Lea police relief association.  
    Subd. 7.  [EFFECTIVE DATE FOR POSTRETIREMENT INCREASES.] 
Any postretirement increases as provided in this section shall 
occur once per calendar year.  If the postretirement increase is 
based on the increase in a base salary amount, the 
postretirement increase shall be payable as of the first of the 
month next following the effective date of the triggering salary 
increase.  If more than one salary increase occurs in a calendar 
year, only one postretirement increase shall take effect in that 
calendar year and the next succeeding postretirement increase 
shall take into account any additional salary increases which 
occurred since the immediately previous postretirement increase 
and shall occur on the date occurring 12 months after the date 
of the immediately previous postretirement increase or the first 
of the month next following the effective date of any triggering 
salary increase in that calendar year, whichever occurs first.  
If the increase in the base salary amount upon which the 
postretirement increase is based includes retroactive payments 
to an earlier date, the applicable postretirement increase may 
also be payable retroactive to that date.  If the postretirement 
increase is based on the consumer price index or is a set annual 
percentage amount, the postretirement increase shall be payable 
as of the first day of February.  
    Sec. 30.  [353B.13] [OTHER BENEFIT COVERAGE.] 
    (a) A person who is a former member of the New Ulm police 
relief association, who retired from the New Ulm police 
department after October 15, 1985, and who is receiving a 
service pension after the effective date of consolidation as 
provided in section 13, shall be entitled to receive a 
supplemental benefit of $80 per month for each month following 
the date of retirement until the last day of the month in which 
the person attains the age of 65 years. 
    (b) The payment of the premiums for medical and dental 
insurance coverage and the payment of a lump sum amount at 
retirement for former members of the St. Cloud fire department 
relief association and the payment of the premiums for medical 
insurance coverage and the payment of a lump sum amount at 
retirement for former members of the St. Cloud police relief 
association as provided for in the governing benefit plan 
documents shall be considered to be special benefit coverage 
governed by section 15, subdivision 6.  
    (c) A person who is a former member of the St. Paul fire 
department relief association who is unable to perform normally 
assigned fire department service due to a medically determinable 
physical or mental illness or injury and who is removed from the 
fire department payroll, upon application, until recovery, or 
for a period of 90 days or for a period of 150 days upon a 
showing of need and a medical report indicating a reasonable 
prognosis for recovery due to the extended period, whichever 
occurs first, shall be entitled to a sick relief benefit for 
each day of that inability, payable monthly, in an amount of 
1.5625 percent of the salary base per day.  
    Sec. 31.  [353B.14] [DISPUTE OVER BENEFIT AMOUNTS OR PLAN 
PROVISIONS.] 
    In the event of any dispute by or on behalf of any former 
member of a consolidating relief association after the effective 
date of consolidation over the amount of a benefit to which the 
person may be entitled, the proper interpretation of a provision 
of sections 18 to 31, or the conformity of the provisions of 
sections 18 to 31 to the provisions of the benefit plan of the 
consolidating relief association in effect immediately before 
the date on which the consolidation process was initiated, the 
dispute shall be submitted in writing to the legislative 
commission on pensions and retirement by the person who is a 
party to the dispute or by the executive director of the public 
employees retirement association.  The legislative commission on 
pensions and retirement shall review the dispute as part of its 
deliberations on proposed or pending retirement legislation and 
shall make its recommendation on the resolution of the dispute, 
if any, to the appropriate committees of the senate and house of 
representatives with jurisdiction over public employee pension 
matters in the form of the necessary legislation amending the 
provisions of sections 18 to 31, which legislation shall include 
retroactivity of any increase in a benefit amount or any omitted 
benefit amount to the date on which the benefit subject to 
dispute accrued or would have accrued. 
    Sec. 32.  [356.615] [LIMITATION ON USE OF PUBLIC PENSION 
PLAN ASSETS.] 
    (a) Money held by or credited to a public pension plan as 
assets, including employer and employee contributions, state 
aid, appropriations from the state or a governmental 
subdivision, and accrued earnings on investments, constitutes a 
dedicated fund.  The dedicated fund may be used exclusively to 
pay retirement annuities, service pensions, disability benefits, 
survivor benefits, refunds of contributions, or other benefits 
provided under the benefit plan document or documents governing 
the public pension plan and to pay reasonable administrative 
expenses approved by the governing board of the public pension 
plan or by another appropriate authority.  No assets of a public 
pension plan may be loaned or transferred to the state or a 
governmental subdivision or be used to fund an unfunded 
actuarial accrued liability in another public pension plan or 
fund, whether or not the plan providing the assets consolidates 
or has consolidated with the plan receiving the assets.  Nothing 
in this section prohibits a public pension plan or the state 
board of investment from investing assets of a plan as 
authorized by law, including the investment of the assets of 
public pension plans by the state board of investment in a 
commingled investment fund. 
    (b) A public pension plan for purposes of this section 
means a pension plan or fund specified in section 356.20, 
subdivision 2, or 356.30, subdivision 3, or a retirement or 
pension plan or fund, including a supplemental retirement plan 
or fund, established, maintained, or supported by a governmental 
subdivision or public body whose revenues are derived from 
taxation, fees, assessments, or other public sources. 
    Sec. 33.  [TRANSITIONAL PROVISION.] 
    Before the August 1 which occurs immediately after the 
effective date of sections 8 to 17, the commission shall 
consider and adopt any necessary amendments and additions to the 
standards for actuarial work required under section 3.85, 
subdivision 11, to appropriately provide for the preparation of 
any actuarial calculations or valuations required as provided in 
sections 12, subdivision 1; 15, subdivision 6; and 16, 
subdivision 8.  
    Sec. 34.  [EFFECTIVE DATE.] 
    Sections 1 to 33 are effective the day following final 
enactment. 
    Approved May 28, 1987