Office of the Revisor of Statutes
Minnesota Session Laws - 1992, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1992
CHAPTER 471-S.F.No. 2547
An act relating to retirement; Minneapolis police
relief association; recodifying the local laws
applicable to the local relief association; amending
Laws 1980, chapter 607, article XV, sections 8, 9, as
amended, and 10; Laws 1989, chapter 319, article 19,
sections 6 and 7, subdivisions 1 and 4, as amended;
and Laws 1990, chapter 589, article 1, section 6;
repealing Minnesota Statutes 1957, sections 423.71;
423.715; 423.72; 423.725; 423.73; 423.735; 423.74;
423.745; 423.75; 423.755; 423.76; 423.765; 423.77;
423.775; Special Laws 1891, chapter 143; Laws 1943,
chapter 280; Laws 1949, chapter 406; Laws 1953,
chapter 127; Laws 1957, chapters 721 and 939; Laws
1959, chapters 428 and 662; Laws 1961, chapter 532;
Laws 1963, chapter 315; Laws 1965, chapters 493, 520,
and 534; Laws 1967, chapters 820 and 825; Laws 1969,
chapters 258 and 560; Laws 1973, chapters 272 and 309;
Laws 1975, chapter 428; Laws 1980, chapter 607,
article XV, section 21; Laws 1983, chapter 88; Laws
1987, chapters 322, sections 2, 3, 4, 5, 6, 7, and 8;
and 372, article 2, sections 2, 3, 4, 6, and 15; Laws
1988, chapters 572, sections 3, 5, and 6; and 574,
sections 2, 4, and 5; Laws 1990, chapter 589, article
1, section 4; and Laws 1991, chapter 90.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNEAPOLIS POLICE RELIEF ASSOCIATION
SPECIAL LAW RECODIFICATION
Section 1. [MINNEAPOLIS POLICE RELIEF ASSOCIATION;
DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of this article,
unless the context clearly indicates otherwise, each of the
terms defined in this section has the indicated meaning.
Subd. 2. [ACTIVE MEMBER.] "Active member" means a person
who was hired and duly appointed by the city of Minneapolis
before May 1, 1959, as a police stenographer, police clerk,
police telephone operator, police radio operator, or police
mechanic or before June 15, 1980, as a police officer, police
matron, or assistant police matron, who is regularly entered on
the payroll of the police department, and who serves on active
duty.
Subd. 3. [AGE.] "Age" means a person's age at the person's
latest birthday.
Subd. 4. [ANNUAL POSTRETIREMENT PAYMENT.] "Annual
postretirement payment" means the payment of a lump sum
postretirement benefit under section 15 to an eligible member on
June 1 following the determination date in any year.
Subd. 5. [DETERMINATION DATE.] "Determination date" means
December 31 of each year.
Subd. 6. [DISABILITY.] "Disability" means a physical or
mental incapacity of an active member to perform the duties of
the person's position in the service of the police department.
Subd. 7. [DISCHARGE.] "Discharge" means a complete
separation from service in the police department.
Subd. 8. [ELIGIBLE MEMBER.] "Eligible member" means a
person, including a service pensioner, a disability pensioner, a
survivor, or dependent of a deceased active member, service
pensioner, or disability pensioner, who received a pension or
benefit from the relief association during the 12 months before
the determination date.
Subd. 9. [EXCESS INVESTMENT INCOME.] "Excess investment
income" means the amount, if any, by which the time weighted
total rate of return earned by the fund in the most recent
fiscal year has exceeded the actual percentage increase in the
current monthly salary of a first grade patrol officer in the
most recent fiscal year plus two percent, and must be expressed
as a dollar amount and may not exceed one percent of the total
assets of the fund and does not exist unless the yearly average
percentage increase of the time weighted total rate of return of
the fund for the previous five years exceeds by two percent the
yearly average percentage increase in monthly salary of a first
grade patrol officer during the previous five calendar years.
Subd. 10. [FUND.] "Fund" means the special fund of the
relief association.
Subd. 11. [RETIRED MEMBER.] "Retired member" means a
former active member who has terminated active service in the
police department and who is entitled to receive a pension or
benefit under this article, as amended, or any predecessor law.
Subd. 12. [SURVIVING SPOUSE MEMBER.] "Surviving spouse
member" means the person who was the legally married spouse of
the member, who was residing with the decedent, and who was
married while or before the time the decedent was an active
member and was on the payroll of the police department, and who,
in case the deceased member was a pensioner or deferred
pensioner, was legally married to the member at least one year
before the decedent's termination of active service with the
police department. The term does not include the surviving
spouse who has deserted a member or who has not been dependent
upon the member for support, nor does it include the surviving
common law spouse of a member.
Subd. 13. [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time
weighted total rate of return" means the percentage amount
determined by using the formula or formulas established by the
state board of investment under Minnesota Statutes, section
11A.04, clause (11), and in effect on January 1, 1987.
Subd. 14. [UNIT.] "Unit" means one-eightieth of the
current monthly salary of a first grade patrol officer.
Sec. 2. [EXCLUSION FROM MEMBERSHIP; POLICE CHIEF.]
(a) Notwithstanding any provision of law to the contrary,
the chief of the police department of the city of Minneapolis is
excluded from membership in the Minneapolis police relief
association and the public employees police and fire fund,
unless the person at the time of appointment is either a member
of the Minneapolis police relief association or of the public
employees police and fire fund, whichever applies. In that
case, the person may elect by irrevocable written application
within 30 days of the person's appointment as chief of police to
continue membership in the applicable pension fund.
(b) If the person is excluded from membership in the
Minneapolis police relief association and the public employees
police and fire fund by operation of this section, the city of
Minneapolis may pay to the person compensation in addition to
the salary allowed under any limitations imposed by law on the
salaries of public employees, on the condition that the person
agrees that the additional compensation must be deposited by the
city in a deferred compensation program. The additional
compensation is the dollar amount equal to the employer
contribution to meet the normal cost obligation of the
Minneapolis police relief association as specified in the most
recent actuarial valuation of the relief association prepared
and reported under Minnesota Statutes, sections 69.77, 356.215,
and 356.216, applied to the salary currently payable to a first
grade patrol officer.
Sec. 3. [LEAVE OF ABSENCE; CONTINUATION OF MEMBERSHIP.]
Subdivision 1. [LEAVE OF ABSENCE.] A member of the police
department who is an active member of the police relief
association of the city of Minneapolis and who after January 1,
1969, is elected to a public office of the city may apply for
and must be granted a leave of absence from the police
department during the time the person is an incumbent of the
elective public office of the city.
Subd. 2. [CONTINUATION OF MEMBERSHIP.] Upon obtaining a
leave of absence provided in subdivision 1, a member with ten or
more years of service in the police department and the police
relief association has the option to continue active membership
in the police relief association of the city of Minneapolis.
This option applies to future service as well as past service.
The member desiring to exercise this option must make
application to the governing body of the association, must
designate the period of service for which the person desires
coverage, and must pay the employee contribution to the police
relief association to the same extent that the member would have
paid had the person been on active duty with the police
department during that period.
Subd. 3. [NO SIMULTANEOUS COVERAGE.] A payment into the
pension fund as provided in subdivision 2 may not be made or
accepted and pension credit may not be allowed for any period of
time for which the member pays into or earns pension credit from
any other Minnesota pension plan for public employees.
Subd. 4. [WAIVER OF OTHER RIGHTS.] A qualified member who
exercises the option provided in subdivision 2 and is at that
time a contributing member of another retirement fund or relief
association by whatever name known, organized under any other
law, and supported in whole or in part by the taxes on the same
city, shall waive all benefits from the other retirement fund or
relief association, for concurrent time, and shall be entitled
to receive a refund of the net accumulated contributions made by
the member to the other retirement fund or relief association,
with interest, regardless of the provision of any law, rule,
bylaw, or other action permitting or requiring membership in the
other retirement fund or relief association, however organized.
Sec. 4. [RELIEF ASSOCIATION AND RETIREMENT FUND.]
Subdivision 1. [RELIEF ASSOCIATION.] The active and
retired members of the police department of the city of
Minneapolis and their surviving spouses shall maintain the
Minneapolis police relief association.
Subd. 2. [PENSION FUND.] This association shall create,
maintain, and administer a police officer's pension fund for the
benefit of its members, and their survivors and beneficiaries.
The sources of revenue of the fund are governed by section 6.
The authorized disbursements from the fund are governed by
section 7.
Subd. 3. [MEMBERSHIP.] All members as defined in section 1
are members of the Minneapolis police relief association.
Subd. 4. [MANAGEMENT OF RELIEF ASSOCIATION AND FUND.] The
board created in section 5 shall manage and control the fund.
Sec. 5. [INCORPORATION, GOVERNMENT BY BOARD.]
Subdivision 1. [MEMBERS, TERMS, ELECTIONS.] The
association must be incorporated. It must be governed by a
board of nine members. The Minneapolis city council shall
appoint two persons to serve as members. Those members must be
appointed for a term of two years. All city appointments are
effective from January 1 in the odd-numbered years through
December 31 in the even-numbered years. The other members of
the board must be elected by the members of the association.
Board members elected from the active membership have a term of
five years. Board members elected from the retired or surviving
spouse membership must have a term of three years. An elective
member of the board holds office until the person's successor is
elected and has qualified. A vacancy in the office of an
elective member of the board must be filled by a special
election called for that purpose. There are three classes of
board members, consisting of a class comprised of active board
members, a class comprised of retired board members, and a class
comprised of surviving spouse board members. Active members of
the relief association may only vote for active board member
positions. Retired members of the relief association may only
vote for retired board member positions. Surviving spouse
members of the relief association may only vote for the
surviving spouse board member positions. Once established, a
retired board member position and a surviving spouse board
member position must remain as such.
In 1994, for the election for board member seat G, the
board member position must be filled by a surviving spouse
member. In 1995, for the regular election for board member seat
C, previously held by an active member, the board member
position must be filled by a retired member. In 1999, for the
regular election for board member seat B, previously held by an
active member, the board member position must be filled by a
retired member.
The following sets forth the schedule for the election of
the seven elected board member positions on the Minneapolis
police relief association board:
Active board Retired board Surviving spouse
member position member position board member position
year five-year term three-year term three-year term
1992 seat C
1993 seat A seat E
1994 seat B seat F seat G
1995 seats C and D
1996 seat E
1997 seat F seat G
1998 seat A seats C and D
1999 seats B and E
2000 seat F seat G
2001 seats C and D
2002 seats B and E
2003 seat A seat F seat G
2004 seats C and D
2005 seats B and E
2006 seat F seat G
2007 seats C and D
2008 seat A seats B and E
2009 seat F seat G
2010 seats C and D
As long as there remains at least one active member on
active duty with the Minneapolis police department, there must
be a member of the board of directors from the active ranks in
accordance with the election procedures outlined in this section.
Subd. 2. [ARTICLES OF INCORPORATION.] The affairs of the
association must be regulated by its articles of incorporation
and bylaws.
Subd. 3. [CONTINUATION OF BOARD.] Notwithstanding the
provisions of Minnesota Statutes, section 423A.01, subdivision
2, or any other law, the board of trustees and its successors
established under subdivision 1 shall continue to govern the
association until there are no more than 100 members of the
police pension fund. The fund thereafter must become a trust
fund in accordance with Minnesota Statutes, section 423A.01,
subdivision 2.
Sec. 6. [SOURCE OF FUNDS.]
Subdivision 1. [SOURCES.] The fund is derived from the
following sources:
(1) gifts provided to the fund;
(2) rewards received by active members;
(3) money coming into the hands of active members in their
official capacity and remaining unclaimed for six months;
(4) proceeds from sales of property coming into the hands
of active members in their official capacity and remaining
unclaimed for six months, upon sale by the chief of police of
the city;
(5) an amount equal to the minimum percentage specified in
Minnesota Statutes, section 69.77, subdivision 2a, of the salary
of a first grade patrol officer deducted from the monthly salary
of each active member;
(6) all money derived from taxation as provided by
Minnesota Statutes, sections 69.77, subdivisions 2b, 2c, 2d, 2e,
and 2f; and 423A.01, subdivision 2;
(7) all money received from the state amortization aid
programs under Minnesota Statutes, section 423A.02, to fund the
unfunded actuarial accrued liability of the association;
(8) all money received from the state under Minnesota
Statutes, chapter 69, as state police aid;
(9) all money provided by the state for the association in
addition to clauses (7) and (8);
(10) all money derived from taxation by the municipality
for the support of the association and the payment of pensions;
and
(11) money from the investment of, earnings on, and
interest on the assets of the fund.
Subd. 1a. [SALES OF UNCLAIMED PROPERTY.] The chief of
police of the city shall sell property coming into the hands of
active members in their official capacity and remaining
unclaimed for six months.
Subd. 2. [CONTINUATION OF ASSETS.] Assets remaining in the
fund at the close of a fiscal year continue.
Subd. 3. [TAX LEVY LIMITS INAPPLICABLE.] (a) The amount of
tax levies required under Minnesota Statutes, sections 69.77,
and 423A.01, subdivision 2, must not be included as a part of
the general tax levy for city purposes or in the calculation of
any limitation of any percent of the assessed valuation upon
which taxes are required to be extended.
(b) Any appropriation made to the fund from a city tax levy
must not be considered a part of the cost of government as
defined in the charter of the city.
Subd. 4. [IMPACT ON OTHER LAWS.] No provision of this act
may be construed as reducing the amount or rate of contribution
to the association by the municipality or a member of the
association from the minimum contributions prescribed by
Minnesota Statutes, section 69.77.
Sec. 7. [AUTHORIZED FUND DISBURSEMENTS.]
The police pension fund may be used only for the payment of:
(1) service, disability, or dependency pensions;
(2) notwithstanding a contrary provision of Minnesota
Statutes, section 69.80, the salary of the secretary of the
association in an amount not to exceed 30 percent of the base
salary of a first grade patrol officer, the salary of the
president of the association in an amount not to exceed ten
percent of the base salary of a first grade patrol officer, and
the salaries of the other elected members of the board of
trustees in an amount not to exceed three units;
(3) expenses of officers and employees of the association
in connection with the protection of the fund;
(4) expenses of operating and maintaining the association;
(5) support for hospital and medical insurance for
pensioners who have completed 20 years or more of service or
permanent disabilitants and surviving spouses of deceased active
members, disabilitants, or service pensioners who have completed
20 years or more of service in an amount equal to one unit per
month, to be added to the pension otherwise provided;
(6) health and welfare benefits of one unit per month in
addition to other benefits for members who retired after July 1,
1980, and have completed 20 years or more of service or for
members who are permanent disabilitants; and
(7) other expenses authorized by Minnesota Statutes,
section 69.80, or other applicable law.
Sec. 8. [INSURANCE PLAN.]
The board of the association may adopt a hospital and
medical insurance plan for pension and benefit recipients, to be
funded by the participating pension and benefit recipients. A
pensioner or surviving spouse may authorize, in writing, a
deduction from the person's pension or benefit for the insurance
plan adopted by the association board.
Sec. 9. [RELIEF ASSOCIATION SERVICE PENSIONS AND
DISABILITY PENSIONS.]
Subdivision 1. [MINNEAPOLIS POLICE; PERSONS ENTITLED TO
RECEIVE.] The association shall grant pensions payable from the
police pension fund in monthly installments to persons entitled
to pensions in the manner and for the following purposes.
(a) An active member or a deferred pensioner who has
performed duty as a member of the police department of the city
for five years or more, upon written application after retiring
from duty and reaching at least age 50, is entitled to be paid
monthly for life a service pension equal to eight units. For
full years of service beyond five years, the service pension
increases to a maximum of 40 units, as follows:
Sixth through 20th years 1.6 units per year of service
21st through 24th years 1.0 units per year of service
25th year 4.0 units
Fractional years of service may not be used in computing
pensions.
(b) An active member who after five years' service but less
than 20 years' service with the police department of the city,
becomes superannuated so as to be permanently unable to perform
the person's assigned duties, is entitled to be paid monthly for
life a superannuation pension equal to two units for five years
of service and an additional two units for each full year of
service over five years and less than 20 years.
(c) An active member who is not eligible for a service
pension and who, while a member of the police department of the
city, becomes diseased or sustains an injury while in the
service that permanently unfits the member for the performance
of police duties is entitled to be paid monthly for life a
pension equal to 32 units while so disabled.
Subd. 2. [DEATH REFUND.] No refund of member contributions
is payable upon separation from service. If an active member
dies leaving no surviving spouse or children entitled to
survivor benefits, the member's heirs, executors, or
administrators are entitled to a refund of $100 for each
completed year of service.
Subd. 3. [SERVICE IN MILITARY FORCES, EFFECT.] (a) An
applicant for a pension under subdivision 1, paragraph (a) or
(b), who, after becoming an active member has served in the
military forces of the United States in a war or national
defense emergency after January 1, 1940, and thereafter returned
honorably discharged from military service and resumed active
membership in the association, is entitled to have the period
that the applicant spent in military service counted in
computing periods of service required for benefits under this
section, but the total credit for military service involving
service rendered after June 1, 1963, may not exceed six years.
(b) During the period of military service or defense
emergency service, the person is not considered to be an active
member of the association and is not entitled to any pension
provided by subdivision 1, paragraphs (b) and (c).
(c) If the member does not return to employment in the
police department of the city within one year from the time
peace is declared or within one year from the termination of the
period of emergency, whichever is later, the provisions of this
subdivision do not apply.
(d) The provisions of this subdivision apply
notwithstanding the provisions of the veteran's preference law
or any other law, rule, or bylaw providing for credit for
military service in computing the pensions for members of the
Minneapolis police relief association.
Subd. 4. [CERTIFICATE OF PHYSICIANS REQUIRED.] No member
is entitled to a pension under subdivision 1, paragraph (b) or
(c), except upon the certificate of two or more physicians or
surgeons chosen by the governing board. This certificate must
set forth the cause, nature, and extent of the disability,
disease, or injury of the member. No active member may be
awarded, granted, or paid a disability pension under subdivision
1, paragraph (c), unless the certificate states that the
disability, disease, or injury was incurred or sustained by the
member while in the service of the police department of the
city. The certificate must be filed with the secretary of the
association.
Subd. 5. [MEMBER CONVICTED OF FELONY.] A member who has
been convicted of a felony is not entitled to any pension during
the period of incarceration in a penal institution as a
punishment for the commission of a felony.
Sec. 10. [SURVIVOR BENEFITS.]
Subdivision 1. [ENTITLEMENT; BENEFIT AMOUNT.] (a) The
surviving spouse of a deceased service pensioner, disability
pensioner, deferred pensioner, superannuation pensioner, or
active member, who was the legally married spouse of the
decedent, residing with the decedent, and who was married while
or before the time the decedent was on the payroll of the police
department, and who, if the deceased member was a service or
deferred pensioner, was legally married to the member for a
period of at least one year before retirement from the police
department, is entitled to a surviving spouse benefit. The
surviving spouse benefit is equal to 18 units per month if the
person is the surviving spouse of a deceased active member or
disabilitant. The surviving spouse benefit is equal to 4.5
units per month, plus an additional nine-tenths of one unit for
each year of service to the credit of the decedent in excess of
five years, to a maximum of 18 units per month, if the person is
the surviving spouse of a deceased service pensioner, deferred
pensioner, or superannuation pensioner. The surviving spouse
benefit is payable for the life of the surviving spouse.
(b) A surviving child of a deceased service pensioner,
disability pensioner, deferred pensioner, superannuation
pensioner, or active member, who was living while the decedent
was an active member of the police department or was born within
nine months after the decedent terminated active service in the
police department, is entitled to a surviving child benefit.
The surviving child benefit is equal to six units per month if
the person is the surviving child of a deceased active member or
disabilitant. The surviving child benefit is equal to 1.5 units
per month, plus an additional three-tenths of one unit per month
for each year of service to the credit of the decedent in excess
of five years, to a maximum of six units, if the person is the
surviving child of a deceased service pensioner, deferred
pensioner, or superannuation pensioner. The surviving child
benefit is payable until the person attains age 18, or, if in
full-time attendance during the normal school year, in a school
approved by the board of directors, until the person receives a
bachelor's degree or attains the age of 22 years, whichever
occurs first.
(c) The surviving spouse and surviving child benefits are
subject to a family maximum benefit. The family maximum benefit
is 32 units per month.
Subd. 2. [SURVIVOR BENEFIT COVERAGE FOR A MEMBER CONVICTED
OF A FELONY.] The surviving spouse or a surviving child of a
deceased member who was convicted of a felony may not be
deprived of a survivor benefit by reason of the conviction
unless the person was a party to the commission of the felony.
For a member who is receiving a pension at the time of
conviction, a survivor who was not a party to the commission of
the felony remains entitled to receive the survivor benefit
provided for in subdivision 1, in the event of the member's
death.
Sec. 11. [TEMPORARY DISABILITY BENEFITS.]
An active member who becomes disabled from performing
duties as an active member of the police department of the city
by reason of sickness or accident, who is off the payroll of the
police department, and who has exhausted all accumulated
vacation, overtime, and sick leave credits due to the member, is
entitled to receive from the association temporary disability
benefits in an amount as the bylaws of the association provide
during the disability period. The temporary disability benefits
may not extend beyond a six-month period except when an active
member is disabled because of an injury sustained while on duty
and then benefits may extend for an indefinite time during the
existence of the disability. The bylaws may provide that an
active member must have completed a minimum number of years of
service in order to be entitled to temporary disability
benefits. Before temporary disability benefits may be paid or
allowed, notice of the disability and application for benefits
on account of the disability must be made to the secretary of
the association within 90 days after the sickness or disability.
The bylaws may provide that an active member's periods of
disability up to one year may be included in computing the
member's total years of service for pension entitlement and
benefit calculation purposes.
Sec. 12. [MANDATORY RETIREMENT; CONSEQUENCE OF CONTINUED
ACTIVE MEMBERSHIP.]
Notwithstanding the provisions of Minnesota Statutes,
section 197.45, subdivision 2, and subject only to the
provisions of Minnesota Statutes, section 423.075, an active
member must retire upon attaining age 65, and upon attaining age
65 must cease to be an active member of the association. An
active member who knowingly fails or refuses to comply with this
section thereby renders the person and the person's survivors
ineligible for any pension or benefits provided under this
article, as amended. A person who has ceased to be an active
member of the association or has knowingly failed or refused to
retire, is entitled only for the refund in an amount equal to
$100 per year of service credit, payable in a lump sum.
Sec. 13. [HEALTH AND WELFARE BENEFIT.]
Notwithstanding any law to the contrary, a person who,
after July 1, 1980, retires on a service pension with at least
20 years of service or a permanent disability benefit from the
relief association is entitled on January 1, 1981, or upon the
date of retirement, whichever occurs later, to receive a monthly
health and welfare benefit. The monthly health and welfare
benefit is an amount equal to one unit. The monthly health and
welfare benefit is payable to the retired member unless the
retired member designates in writing that the amount be paid to
an insurance carrier to defray the cost of any health or welfare
related insurance coverage.
Sec. 14. [HEALTH INSURANCE ACCOUNT.]
(a) Notwithstanding any law to the contrary, contributions
of active members of the relief association with at least 25
years of service made after the 25th year of service must be
deposited in a separate account and used to pay the future
health insurance costs of the individual member upon that
member's retirement.
(b) A member who retires with at least 25 years of service
is entitled to receive periodic distributions from the remaining
balance in the member's health insurance account, in the amount
and with the frequency specified by the retiring member in
conformance with rules adopted by the board of trustees for this
purpose.
Sec. 15. [INVESTMENT RELATED POSTRETIREMENT ADJUSTMENTS.]
Subdivision 1. [ANNUAL POSTRETIREMENT PAYMENT AUTHORIZED.]
Notwithstanding the provisions of Minnesota Statutes, chapter
69, or any other law to the contrary, the relief association may
provide annual postretirement payments to eligible members under
this section.
Subd. 2. [DETERMINATION OF EXCESS INVESTMENT INCOME.] The
board of trustees of the relief association shall determine by
May 1 of each year whether or not the fund has excess investment
income. The amount of excess investment income, if any, must be
stated as a dollar amount and reported by the chief
administrative officer of the relief association to the mayor
and governing body of the city, the state auditor, the
commissioner of finance, and the executive director of the
legislative commission on pensions and retirement. The dollar
amount of excess investment income up to one percent of the
assets of the fund must be applied for the purpose specified in
subdivision 3. Excess investment income must not be considered
as income to or assets of the fund for actuarial valuations of
the fund for that year under Minnesota Statutes, sections 69.77,
356.215, and 356.216 and the provisions of this section except
to offset the annual postretirement payment. Additional
investment income is any realized or unrealized investment
income other than the excess investment income and must be
included in the actuarial valuations performed under Minnesota
Statutes, sections 69.77, 356.215, and 356.216 and the
provisions of this section.
Subd. 3. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The
amount determined under subdivision 2 must be applied in
accordance with this subdivision. The relief association shall
apply the first one-half of excess investment income to the
payment of an annual postretirement payment as specified in this
subdivision. The second one-half of excess investment income
must be applied to reduce the state amortization state aid or
supplementary amortization state aid payments otherwise due to
the relief association under Minnesota Statutes, section 423A.02
for the current calendar year. The relief association shall pay
an annual postretirement payment to all eligible members in an
amount not to exceed one-half of one percent of the assets of
the fund. Payment of the annual postretirement payment must be
in a lump sum amount on June 1 following the determination date
in any year. Payment of the annual postretirement payment may
be made only if the time weighted total rate of return exceeds
by two percent the actual percentage increase in the current
monthly salary of a top grade patrol officer in the most recent
fiscal year and the yearly average percentage increase of the
time weighted total rate of return of the fund for the previous
five years exceeds by two percent the yearly average percentage
increase in monthly salary of a top grade patrol officer of the
previous five years. The total amount of all payments to
members may not exceed the amount determined under this
subdivision. Payment to each eligible member must be calculated
by dividing the total number of pension units to which eligible
members are entitled into the excess investment income available
for distribution to members, and then multiplying that result by
the number of units to which each eligible member is entitled to
determine each eligible member's annual postretirement payment.
Payment to each eligible member may not exceed an amount equal
to the total monthly benefit that the eligible member was
entitled to in the prior year under the terms of the benefit
plan of the relief association or each eligible member's
proportionate share of the excess investment income, whichever
is less.
A person who received a pension or benefit for the entire
12 months before the determination date is eligible for a full
annual postretirement payment. A person who received a pension
or benefit for less than 12 months before the determination date
is eligible for a prorated annual postretirement payment.
Subd. 4. [ANNUAL POSTRETIREMENT PAYMENT IN THE EVENT OF
DEATH.] In the event an eligible member dies after the
determination date and before the payment of the annual
postretirement payment, the chief administrative officer of the
relief association shall pay that eligible member's estate the
amount of the postretirement payment to which the eligible
member was entitled.
Subd. 5. [REPORT ON ANNUAL POSTRETIREMENT PAYMENT.] The
chief administrative officer of the relief association shall
prepare a report on the amount of all postretirement payments
made under this section and the manner in which those payments
were determined. That report must be submitted to the state
auditor, the executive director of the legislative commission on
pensions and retirement, and the city clerk of the city.
Subd. 6. [NO GUARANTEE OF ANNUAL POSTRETIREMENT
PAYMENT.] No provision of or payment made under this section may
be interpreted or relied upon by any member of the relief
association to guarantee or entitle a member to annual
postretirement payments for a period when no excess investment
income is earned by the fund.
Sec. 16. [SUIT FOR BENEFITS; BONDS.]
No person may sue for any pensions or benefits provided
from the special fund of the relief association under this
article, as amended, unless the person applying for a pension or
benefit first posts a bond from a surety company competent to
undertake the business in a sufficient amount to defray the
expense of the governing board of defending the action. In the
event that the governing board is sustained, the portion of the
bond necessary to defray these expenses is forfeited to the
relief association.
Sec. 17. [PAYMENTS EXEMPT FROM PROCESS.]
A payment made by the association under a provision of this
article, as amended, is exempt from legal process except as
provided in Minnesota Statutes, section 518.58, 518.581, or
518.611. No person entitled to a payment may assign the same.
The association may not recognize an assignment or pay a sum on
account of an assignment.
Sec. 18. [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT
PAYMENTS.]
Upon the death of the last benefit recipient and the
certification by the chief administrative officer of the city of
Minneapolis to the state auditor of the absence of any remaining
person with a benefit entitlement, the assets of the relief
association or trust fund, whichever applies, reverts to the
city and may be used by the city only for law enforcement
expenditure purposes.
Sec. 19. [EFFECT ON ACCRUED BENEFITS AND BENEFITS
PAYABLE.]
(a) The legislature intends by this article to recodify the
prior local laws applicable to the Minneapolis police relief
association.
(b) This article is not intended to increase or reduce the
pensions or benefits currently payable to pension and benefit
recipients of the Minneapolis police relief association. All
pensions and benefits payable from the Minneapolis police relief
association in force on the effective date of this section as
reflected in the records of the relief association as of that
date continue.
(c) This article is not intended to modify, impair, or
diminish the pension or benefit entitlements accrued or service
credited to active or deferred members of the Minneapolis police
relief association on the effective date of this article as
reflected in the records of the relief association as of that
date. If the secretary of the relief association determines
that any provision of this article does function to modify,
impair, or diminish the pension or benefit entitlements that had
been accrued or service that had been credited to an active or
deferred relief association member, the secretary shall certify
that determination and a recommendation as to the required
legislative correction, if any, to the chairs of the legislative
commission on pensions and retirement, the house governmental
operations committee, the senate governmental operations
committee, and to the executive director of the legislative
commission on pensions and retirement.
Sec. 20. [REPEALER.]
(a) Minnesota Statutes 1957, sections 423.71; 423.715;
423.72; 423.725; 423.73; 423.735; 423.74; 423.745; 423.75;
423.755; 423.76; 423.765; 423.77; and 423.775, are repealed.
(b) Special Laws 1891, chapter 143; Laws 1943, chapter 280;
Laws 1949, chapter 406; Laws 1953, chapter 127; Laws 1957,
chapters 721 and 939; Laws 1959, chapters 428 and 662; Laws
1961, chapter 532; Laws 1963, chapter 315; Laws 1965, chapters
493, 520, and 534; Laws 1967, chapters 820 and 825; Laws 1969,
chapters 258 and 560; Laws 1973, chapters 272 and 309; Laws
1975, chapter 428; Laws 1980, chapter 607, article XV, section
21; Laws 1983, chapter 88; Laws 1987, chapters 322, sections 2,
3, 4, 5, 6, 7, and 8; and 372, article 2, sections 2, 3, 4, 6,
and 15; Laws 1988, chapters 572, sections 3, 5, and 6; and 574,
sections 2, 4, and 5; Laws 1990, chapter 589, article 1, section
4; and Laws 1991, chapter 90, are repealed.
Sec. 21. [EFFECTIVE DATE.]
Sections 1 to 20 are effective upon approval by a majority
of the city council of the city of Minneapolis and compliance
with Minnesota Statutes, section 645.021, subdivision 3.
ARTICLE 2
CONFORMING AMENDMENTS
Section 1. Laws 1980, chapter 607, article XV, section 8,
is amended to read:
Sec. 8. [MINNEAPOLIS POLICE AND FIREFIGHTERS RELIEF
ASSOCIATIONS: MINIMUM MEMBER CONTRIBUTION.] Notwithstanding any
provision of Minnesota Statutes, Section 69.77, or any other law
to the contrary, the minimum employee contribution to the
special fund of the relief association for retirement and
survivorship benefits by each member of the Minneapolis police
relief association or the Minneapolis firefighters relief
association, during the remaining term of covered employment by
the member shall be seven percent of the maximum salary from
which retirement and survivorship credits and amounts of
benefits are determined, effective July 1, 1980, and eight
percent effective January 1, 1981.
Sec. 2. Laws 1980, chapter 607, article XV, section 9, as
amended by Laws 1987, chapter 322, section 6, and chapter 372,
article 2, section 5, is amended to read:
Sec. 9. [MINNEAPOLIS POLICE AND FIRE; HEALTH AND WELFARE
BENEFIT.] Notwithstanding any law to the contrary, any person
who, after July 1, 1980, retires on a service pension with at
least 20 years of service or a permanent disability benefit from
the Minneapolis police relief association or the Minneapolis
firefighters relief association shall be entitled on January 1,
1981, or upon the date of retirement, whichever occurs later, to
receive a monthly health and welfare benefit unless the city of
Minneapolis elects to retain the local relief association by the
adoption of a municipal resolution pursuant to section 4,
subdivision 1. The monthly health and welfare benefit shall be
an amount equal to one unit as defined pursuant to Laws 1963,
Chapter 315, Section 1, Subdivision 3, for the Minneapolis
police relief association, or Minnesota Statutes, Section 69.45,
for the Minneapolis firefighters relief association, whichever
is applicable. The monthly health and welfare benefit shall be
paid to the retired member unless the retired member designates
in writing that the amount be paid to an insurance carrier to
defray the cost of any health or welfare related insurance
coverage.
Sec. 3. Laws 1980, chapter 607, article XV, section 10, is
amended to read:
Sec. 10. [DETERMINATION OF FINANCIAL REQUIREMENTS OF
RELIEF ASSOCIATION AND MINIMUM MUNICIPAL OBLIGATION.] The
officers of the Minneapolis police relief association and the
Minneapolis firefighters relief association shall include in
their determinations of the financial requirements of the relief
association and the minimum obligation of the governmental
subdivision submitted to the city of Minneapolis on or before
September 1, 1980, pursuant to Minnesota Statutes, Section
69.77, Subdivision 2, Clauses (2) and (3), the cost of the
health and welfare benefit as estimated by the actuary of the
respective relief association based on the most recent actuarial
valuation of the relief association prepared pursuant to
Minnesota Statutes, Sections 69.77, 356.215 and 356.216. The
city of Minneapolis shall provide sufficient financial support
to each the relief association to meet the minimum obligation of
the governmental subdivision including the cost of the health
and welfare benefit, effective January 1, 1981.
Sec. 4. Laws 1989, chapter 319, article 19, section 6, is
amended to read:
Sec. 6. [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT
PAYMENTS.]
Upon the death of the last benefit recipient and the
certification by the chief administrative officer of a the city
of the first class with a population of more than
300,000 Minneapolis to the state auditor of the absence of any
remaining person with a benefit entitlement, the assets of
the Minneapolis fire department relief association or trust
fund, whichever applies, must revert to the city and may be used
by the city only for law enforcement or firefighting expenditure
purposes, whichever applies.
Sec. 5. Laws 1989, chapter 319, article 19, section 7,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For the purposes of this
section, each of the terms in this subdivision have the meanings
given them in paragraphs (a) to (h).
(a) "Annual postretirement payment" means the payment of a
lump sum postretirement benefit to an eligible member on June 1
following the determination date in any year.
(b) "City" means a the city of the first class with a
population of more than 300,000 Minneapolis.
(c) "Determination date" means December 31 of each year.
(d) "Eligible member" means a person, including a service
pensioner, a disability pensioner, a survivor, or dependent of a
deceased active member, service pensioner, or disability
pensioner, who received a pension or benefit from the relief
association during the 12 months before the determination date.
A person who received a pension or benefit for the entire 12
months before the determination date are is eligible for a full
annual postretirement payment. A person who received a pension
or benefit for less than 12 months before the determination date
is eligible for a prorated annual postretirement payment.
(e) "Excess investment income" means the amount by which
the time weighted total rate of return earned by the fund in the
most recent fiscal year has exceeded the actual percentage
increase in the current monthly salary of a top grade patrol
officer or top grade firefighter, whichever applies, in the most
recent fiscal year plus two percent. The excess investment
income must be expressed as a dollar amount and may not exceed
one percent of the total assets of the fund and does not exist
unless the yearly average percentage increase of the time
weighted total rate of return of the fund for the previous five
years exceeds by two percent the yearly average percentage
increase in monthly salary of a top grade patrol officer or top
grade firefighter, whichever applies, during the previous five
calendar years.
(f) "Fund" means a police relief association or
firefighters the Minneapolis fire department relief association,
whichever applies, located in the city and governed by Minnesota
Statutes, section 69.77.
(g) "Relief association" means the police relief
association or the firefighters Minneapolis fire department
relief association, whichever applies, located in the city.
(h) "Time weighted total rate of return" means the
percentage amount determined by using the formula or formulas
established by the state board of investment under Minnesota
Statutes, section 11A.04, clause (11), and in effect on January
1, 1987.
Sec. 6. Laws 1989, chapter 319, article 19, section 7,
subdivision 4, as amended by Laws 1990, chapter 570, article 12,
section 63, is amended to read:
Subd. 4. [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The
amount determined under subdivision 3 must be applied in
accordance with this subdivision. The relief association shall
apply the first one-half of one percent of assets which
constitute excess investment income to the payment of an annual
postretirement payment as specified in this subdivision. The
second one-half of one percent of assets which constitute excess
investment income shall be applied to reduce the state
amortization state aid or supplementary amortization state aid
payments otherwise due to the relief association under section
423A.02 for the current calendar year. The relief association
shall pay an annual postretirement payment to all eligible
members in an amount not to exceed one-half of one percent of
the assets of the fund. Payment of the annual postretirement
payment must be in a lump sum amount on June 1 following the
determination date in any year. Payment of the annual
postretirement payment may be made only if the time weighted
total rate of return exceeds by two percent the actual
percentage increase in the current monthly salary of a top grade
patrol officer or a top grade firefighter,whichever applies, in
the most recent fiscal year and the yearly average percentage
increase of the time weighted total rate of return of the fund
for the previous five years exceeds by two percent the yearly
average percentage increase in monthly salary of a top grade
patrol officer or a top grade firefighter, whichever applies, of
the previous five years. The total amount of all payments to
members may not exceed the amount determined under subdivision
3. Payment to each eligible member must be calculated by
dividing the total number of pension units to which eligible
members are entitled into the excess investment income available
for distribution to members, and then multiplying that result by
the number of units to which each eligible member is entitled to
determine each eligible member's annual postretirement payment.
Payment to each eligible member may not exceed an amount equal
to the total monthly benefit that the eligible member was
entitled to in the prior year under the terms of the benefit
plan of the relief association or each eligible member's
proportionate share of the excess investment income, whichever
is less.
Sec. 7. Laws 1990, chapter 589, article 1, section 6, is
amended to read:
Sec. 6. [HEALTH INSURANCE ACCOUNT.]
Notwithstanding any law to the contrary, contributions of
members of the Minneapolis police relief association and the
Minneapolis fire department relief association with 25 or more
years of service shall be deposited in a separate account and
used to pay the future health insurance costs of the individual
member upon that member's retirement.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective upon the effective date of
article 1, section 21.
Presented to the governor April 14, 1992
Signed by the governor April 15, 1992, 1:22 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes