Office of the Revisor of Statutes
Minnesota Session Laws - 1996, Regular Session
Key: (1) language to be deleted (2) new language
KEY: stricken = old language to be removed
underscored = new language to be added
CHAPTER 448-H.F.No. 2493
An act relating to retirement; modifying provisions of
various local pension plans; making miscellaneous
benefit and administrative changes; including
nonprofit firefighting corporations as municipalities
in certain circumstances; amending Minnesota Statutes
1994, sections 353B.11, subdivisions 1 and 3; 353B.13;
and 466.01, subdivisions 1 and 6; Laws 1965, chapter
519, section 1, as amended; Laws 1992, chapter 563,
section 5; Laws 1994, chapter 490, section 2; and Laws
1995, chapter 262, article 7, section 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
ITASCA COUNTY MEDICAL CENTER; RETIREMENT
Section 1. Laws 1995, chapter 262, article 7, section 1,
is amended to read:
Section 1. [TRANSFERRED EMPLOYEES.]
This section applies if the Itasca county medical center is
sold, leased, or transferred to a private entity or public
corporation. Notwithstanding any provision of Minnesota
Statutes, sections 356.24 and 356.25 to the contrary, to
facilitate the orderly transition of employees affected by the
sale, lease, or transfer, the county may, in its discretion,
make, from assets to be transferred to the private entity or
public corporation, payments to a qualified pension plan
established for the transferred employees by the private
entity or public corporation, to provide benefits substantially
similar to those the employees would have been entitled to under
the provisions of the public employees retirement association,
Minnesota Statutes 1994, sections 353.01 to 353.46.
Sec. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.]
Subdivision 1. [ELIGIBILITY.] (a) An eligible individual
is an individual who:
(1) is an employee of the Itasca county medical center
immediately prior to the sale, lease, or transfer of that
facility to a private entity or public corporation;
(2) is terminated at the time of the sale, lease, or
transfer; and
(3) had less than three years of service credit in the
public employees retirement association plan at the date of
termination.
(b) For an eligible individual under paragraph (a), the
county may make a member contribution equivalent payment under
subdivision 2.
Subd. 2. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The
member contribution equivalent payment is an amount equal to the
total refund provided by Minnesota Statutes, section 353.34,
subdivisions 1 and 2. To be eligible for the member
contribution equivalent payment, the individual in subdivision
1, paragraph (a), must apply for a refund under Minnesota
Statutes, section 353.34, subdivisions 1 and 2, within one year
of termination. A member contribution equivalent amount
exceeding $200 must be made directly to an individual retirement
account under section 408(a) of the federal Internal Revenue
Code, as amended, or to another qualified plan. A member
contribution equivalent amount of $200 or less may, at the
preference of the individual, be made to the individual or to an
individual retirement account under section 408(a) of the
federal Internal Revenue Code, as amended, or to another
qualified plan.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective on the day following
approval by the Itasca county board and compliance with
Minnesota Statutes, section 645.021.
ARTICLE 2
PUBLIC SAFETY EMPLOYEE RETIREMENT PROVISIONS
Section 1. Laws 1992, chapter 563, section 5, is amended
to read:
Sec. 5. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS;
LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.]
(a) A monthly service pension or retirement benefit payment
from the St. Paul fire department relief association
consolidation account or the St. Paul police relief association
consolidation account may not be reduced in amount to an amount
that is less than that received by the person for the
immediately previous month.
(b) The service pension or retirement benefit payable from
the St. Paul fire department consolidation account or from the
St. Paul police consolidation account to a person who becomes
newly entitled to that service pension or retirement benefit may
not be an amount that is less than the service pension or
retirement benefit then payable to a comparably situated
pensioner or benefit recipient of that consolidation account.
This (c) The limitation in paragraph (a) or (b) may not be
construed to limit the power of the board of trustees of the
relief executive director of the public employees retirement
association to require proof of continuing eligibility for
receipt of a disability benefit or a survivor benefit, or to
require the reduction in amount or elimination of a disability
benefit in the event of changed medical circumstances, or to
require the reduction in amount or elimination of a survivor
benefit in the event of changes in eligibility.
Sec. 2. Laws 1994, chapter 490, section 2, is amended to
read:
Sec. 2. [AUSTIN FIRE DEPARTMENT RELIEF ASSOCIATION;
SURVIVOR COVERAGE FOR CERTAIN SPOUSES OF CERTAIN RETIRED
FIREFIGHTERS.]
(a) Notwithstanding any provision to the contrary of the
general or special laws governing the Austin fire department
relief association, the articles of incorporation of the relief
association, or the bylaws of the relief association, a person
described in paragraph (b) is entitled to a surviving spouse
benefit as provided in paragraph (c).
(b) A person entitled under paragraph (a) is a person who:
(1) was the legally married spouse of a deceased retired or
disabled member of the Austin fire department relief association
at the time of the deceased member's death;
(2) married the retired or disabled member after the date
on which the member terminated active employment as a
firefighter by the Austin fire department; and
(3) was married for at least three years before the date of
the death of the retired or disabled member; and
(3) was married to a retired or disabled member whose prior
spouse, if any, predeceased the member.
(c) The surviving spouse benefit is an amount equal to the
amount of a surviving spouse benefit payable by the Austin fire
department relief association to the surviving spouse of a
deceased active member of the relief association under Laws
1949, chapter 87, section 26, subdivision 4, as amended by Laws
1965, chapter 418, section 5, reduced by any amount awarded or
payable from the service pension or disability benefit of the
deceased former firefighter to a former spouse of the deceased
active member by virtue of the legal dissolution of the member's
marriage to the former spouse.
Sec. 3. [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION;
AUTHORIZATION OF VARIOUS ADMINISTRATIVE CHANGES.]
Notwithstanding any provision of any law to the contrary,
the Minneapolis fire department relief association is authorized
to implement the following administrative and other
modifications:
(1) five-year vesting under Minnesota Statutes, section
423A.19, retroactive to the April 1, 1987, date when the change
was approved by the Minneapolis city council, despite the
failure to meet the filing requirement of Minnesota Statutes,
section 423A.19, subdivision 4;
(2) the period for applying for a disability benefit by or
on behalf of a disabled member increased from 30 days after the
beginning of the disability to 90 days after the beginning of
the disability;
(3) a salary for services for the members of the board of
trustees of the relief association who are elected members and
who are not officers in an amount equal to 2.5 percent of the
maximum salary of a first grade firefighter;
(4) a salary for the president of the relief association
increased to an amount equal to ten percent of the maximum
salary of a first grade firefighter;
(5) a salary for the executive secretary of the relief
association increased to an amount equal to 30 percent of the
maximum salary of a first grade firefighter; and
(6) eligibility for the surviving spouse of a deceased
deferred member, the dependent surviving child or children of a
deceased deferred member, or a combination, to receive annual
postretirement payments under Laws 1989, chapter 319, article
19, section 7, as amended by Laws 1992, chapter 471, article 2,
section 5, with confirmation and ratification of any past
payments of annual postretirement payments to survivors of
deceased deferred members since June 1, 1989.
Sec. 4. [ST. LOUIS PARK; EXCLUSIONS FROM FIREFIGHTERS
CIVIL SERVICE.]
Notwithstanding Minnesota Statutes, chapter 420, in the
city of St. Louis Park, volunteer and paid-on-call firefighters,
who are employees of the fire department, are excluded from
civil service.
Sec. 5. [EFFECTIVE DATE.]
Subdivision. 1. [ST. PAUL POLICE AND FIRE.] Section 1 is
effective retroactively to December 31, 1993, upon approval by
the city council of the city of St. Paul and compliance with
Minnesota Statutes, section 645.021.
Subd. 2. [AUSTIN FIRE.] Section 2 is effective upon
approval by the Austin city council and compliance with
Minnesota Statutes, section 645.021.
Subd. 3. [MINNEAPOLIS FIRE.] (a) Section 3 is effective on
the day following final approval by the Minneapolis city council
and compliance with Minnesota Statutes, section 645.021.
(b) The city council resolution must specify the provisions
contained in section 3 that it is approving. The city council
may approve some or all of the provisions contained in section 3.
Subd. 4. [ST. LOUIS PARK POLICE AND FIRE.] Section 4 takes
effect the day after the chief clerical officer of the city of
St. Louis Park complies with Minnesota Statutes, section
645.021, subdivision 3.
ARTICLE 3
MINNEAPOLIS FIRE; SURVIVING SPOUSE BENEFIT CHANGE
Section 1. Laws 1965, chapter 519, section 1, as amended
by Laws 1967, chapter 819, section 1; Laws 1969, chapter 123,
section 1; Laws 1975, chapter 57, section 1; Laws 1977, chapter
164, section 2; Laws 1990, chapter 589, section 5; and Laws
1992, chapter 454, section 2, is amended to read:
Section 1. [MINNEAPOLIS, CITY OF; FIREFIGHTER'S RELIEF
ASSOCIATION; SURVIVING SPOUSE'S ENTITLEMENT.] Notwithstanding
the provisions of Minnesota Statutes 1965, Section 69.48, to the
contrary, when a service pensioner, disability pensioner, or
deferred pensioner, or an active member of a relief association
dies, leaving:
(1) A surviving spouse who was a legally married spouse,
residing with the decedent, and who was married while or prior
to the time the decedent was on the payroll of the fire
department in the case of a deceased active member; and or who,
in case the deceased member was a service, disability or
deferred pensioner, was legally married to the member at least
one year before the member's retirement from the fire department
or for at least five years before the member's death if the
marriage occurred after retirement; or
(2) A child or children who were living while the deceased
was on the payroll of the fire department, or born within nine
months after the decedent was withdrawn from the payroll of the
fire department, the surviving spouse and the child or children
shall be entitled to a pension or pensions, as follows:
(a) To the surviving spouse, a pension of not less than 17
units, and not to exceed the total of 22 units per month, as the
bylaws of the association provide, for life; provided, that if
the spouse shall remarry then the pension shall cease and
terminate as of the date of remarriage; provided, further, if
the remarriage terminates for any reason, the surviving spouse
shall again be entitled to a pension as the bylaws of the
association provide;
(b) To the child or children, if their other parent is
living, a pension of not to exceed eight units per month for
each child up to the time each child reaches the age of not less
than 16 years and not to exceed an age of 18 years; provided,
however, upon approval by the board of trustees, such a child
who is a full-time student, upon proof of compliance with the
provisions of this act, may be entitled to such pension so long
as the child is a full-time student and has not reached 22 years
of age, all in conformity with the bylaws of the association;
provided, further, the total pensions hereunder for the
surviving spouse and children of the deceased member shall not
exceed the sum of 41 units per month;
(c) A child or children of a deceased member after the
death of their other parent, or in the event their other parent
predeceases the member, be entitled to receive a pension or
pensions in such amount as the board of trustees of the
association shall deem necessary to properly support the child
or children until they reach the age of not less than 16 and not
more than 18 years; provided, however, upon approval by the
board of trustees, such a child who is a full-time student, upon
proof of compliance with the provisions of this act, may be
entitled to such pension so long as the child is a full-time
student and has not reached 22 years of age, as the bylaws of
the association may provide; but the total amount of the pension
or pensions hereunder for any child or children shall not exceed
the sum of 41 units per month;
(d) For the purposes of this act, a full-time student is
defined as an individual who is in full-time attendance as a
student at an educational institution. Whether or not the
student was in full-time attendance would be determined by the
board of trustees of the association in the light of the
standards and practices of the school involved. Specifically
excluded is a person who is paid by the person's employer while
attending school at the request of the person's employer.
Benefits may continue during any period of four calendar months
or less in any 12 month period in which a person does not attend
school if the person shows to the satisfaction of the board of
trustees that the person intends to continue in full-time school
attendance immediately after the end of the period. An
educational institution is defined so as to permit the payment
of benefits to students taking vocational or academic courses in
all approved, accredited or licensed schools, colleges, and
universities. The board of trustees shall make the final
determination of eligibility for benefits if any question arises
concerning the approved status of the educational institution
which the student attends or proposes to attend;
(e) In the event that a child who is receiving a pension as
provided above shall marry before the age of 22 years, the
pension shall cease as of the date of the marriage.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the day following approval by the
Minneapolis city council and compliance with Minnesota Statutes,
section 645.021.
ARTICLE 4
CONFORMING CHANGES
Section 1. Minnesota Statutes 1994, section 353B.11,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; SURVIVING SPOUSE BENEFIT.]
(a) Except as specified in paragraph (b), (c), (d), (e), (f),
(g), or (f) (h), 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) (4) Brainerd police benefit association;
(6) (5) Columbia Heights police relief association;
(7) (6) Crookston fire department relief association;
(8) (7) Crookston police relief association;
(9) (8) Fairmont police benefit association;
(10) (9) Faribault police benefit association;
(11) (10) Mankato fire department relief association;
(12) (11) Red Wing police relief association;
(13) (12) South St. Paul police relief association;
(14) (13) Virginia fire department relief association;
(15) (14) Virginia police relief association; and
(16) (15) 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 either legally
married to the member at the time of separation from active
service or legally married the member after the time of
separation from active service and was married for at least
three years before the date of death of the member 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 is entitled to receive a surviving spouse benefit in the
case of former members of the Austin firefighters 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 five years before the
separation from active service death 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) (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
residing with the member at the time of the death of the
decedent, and, if the deceased member was the recipient of a
service pension or was entitled to a deferred service pension at
the time of death, who was legally married to the member for at
least five years before the member's death, in the case of
former members of the Minneapolis police relief association.
(f) (g) 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.
(g) (h) 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.
Sec. 2. Minnesota Statutes 1994, section 353B.11,
subdivision 3, is amended to read:
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) (5) Brainerd police benefit association;
(7) (6) Crookston police relief association;
(8) (7) Faribault fire department relief association; and
(9) (8) 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) 30 percent of the salary base, reduced by any amount
awarded or payable from the service pension or disability
benefit of the deceased former firefighter to a former spouse of
the member by virtue of the legal dissolution of the member's
marriage to the former spouse if the surviving spouse married
the member after the time of separation from active service,
Austin firefighters relief association;
(2) 27.333 percent of the salary base, or one-half of the
service pension payable to or accrued by the deceased former
member, whichever is greater, Bloomington police relief
association;
(2) (3) 72.25 percent of the salary base, Buhl police
relief association;
(3) (4) 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) (5) 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) (6) 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) (7) $100 per month, Faribault police benefit
association;
(7) (8) 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) (9) $175 per month, Mankato police benefit association;
(9) (10) 26.25 percent of the salary base, Minneapolis fire
department relief association;
(10) (11) 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) (12) 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) (13) 26.6667 percent of the salary base, St. Louis
Park police relief association;
(13) (14) 27.5 percent of the salary base, St. Paul fire
department relief association;
(14) (15) 20 percent of the salary base, St. Paul police
relief association; and
(15) (16) 27 percent of the salary base, South St. Paul
firefighters relief association.
Sec. 3. Minnesota Statutes 1994, section 353B.13, is
amended to read:
353B.13 [OTHER BENEFIT COVERAGE.]
(a) A person who is a former member of the Austin
firefighters relief association who receives a service pension
or a disability pension from the relief association and who is
under age 65 or who is not yet eligible for the receipt of
federal Medicare benefits, whichever occurs first, and the
person's spouse, if the spouse would be eligible for a surviving
spouse benefit upon the death of the pension recipient, is
entitled to receive a health or medical insurance premium
benefit in an amount equal to the amount that the city of Austin
would pay under the applicable collective bargaining agreement
for medical or health insurance coverage for a firefighter who
is employed by the city, who has a spouse and who has no other
dependents, payable monthly, in addition to any other pension
amount received by the eligible pension recipient, and not
subject to any postretirement adjustments applicable to service
pensions or disability pensions.
(b) 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 353A.06, 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) (c) 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 353A.08, subdivision 6.
(c) (d) 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. 4. [EFFECTIVE DATE.]
Subdivision 1. [AUSTIN FIRE.] Sections 1 and 2 with
respect to the Austin fire department relief association and
section 3 are effective on the effective date of article 2,
section 2.
Subd. 2. [MINNEAPOLIS FIRE.] Section 1 with respect to the
Minneapolis fire department relief association is effective on
the effective date of article 3, section 1.
ARTICLE 5
NORWOOD-YOUNG AMERICA
CONSOLIDATED VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
Section 1. [CONSOLIDATED NORWOOD-YOUNG AMERICA VOLUNTEER
FIREFIGHTERS RELIEF ASSOCIATION.]
Subdivision 1. [COMBINATION.] The cities of Norwood and
Young America in Carver county have conducted the necessary
proceedings to combine as one municipality to be known as
Norwood-Young America effective January 1, 1997, pursuant to
Minnesota Statutes, sections 465.81 to 465.87.
Subd. 2. [CREATION.] The Norwood volunteer firefighters
relief association and the Young America volunteer firefighters
relief association are consolidated into a single volunteer
firefighters relief association in the manner provided by this
chapter. The consolidated volunteer firefighters relief
association is to be governed by this chapter and the applicable
provisions of Minnesota Statutes, chapters 69, 317A, 356, 356A,
and 424A.
Subd. 3. [CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF
ASSOCIATION.] The consolidated volunteer firefighters relief
association must be incorporated under Minnesota Statutes,
chapter 317A. The incorporators of the consolidated relief
association must include at least one board member of the former
Norwood volunteer firefighters relief association and at least
one board member of the former Young America volunteer
firefighters relief association. The consolidated relief
association must be incorporated no later than February 1, 1997.
Sec. 2. [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS
RELIEF ASSOCIATION.]
Subdivision 1. [BOARD OF TRUSTEES.] The consolidated
volunteer firefighters relief association is governed by a board
of trustees as provided in Minnesota Statutes, section 424A.04,
subdivision 1.
Subd. 2. [COMPOSITION OF BOARD.] The board must have three
officers, including a president, a secretary, and a treasurer.
The membership of the consolidated volunteer firefighters relief
association must elect the three officers from the board
members. A board of trustees member may not hold more than one
officer position at the same time.
Subd. 3. [BOARD ADMINISTRATION.] The board of trustees
must administer the affairs of the relief association consistent
with this chapter and the applicable provisions of Minnesota
Statutes, chapters 69, 356A, and 424A.
Sec. 3. [SPECIAL AND GENERAL FUNDS.]
The consolidated volunteer firefighters relief association
must establish and maintain a special fund and a general fund.
The special fund must be established and maintained as provided
in Minnesota Statutes, section 424A.05. The general fund must
be established and maintained as provided in Minnesota Statutes,
section 424A.06.
Sec. 4. [EFFECTIVE DATE OF CONSOLIDATION; TRANSFERS.]
The first business day occurring 30 days after the
incorporation of the consolidated volunteer firefighters relief
association under section 1 is the effective date of
consolidation. On the effective date of consolidation, the
administration, records, assets, and liabilities of the prior
Norwood volunteer firefighters relief association and the prior
Young America volunteer firefighters relief association are
transferred to the consolidated volunteer firefighters relief
association. On the effective date of consolidation, the
Norwood volunteer firefighters relief association and the Young
America volunteer firefighters relief association cease to exist
as legal entities, except for the purposes of winding up
association affairs as provided by this chapter.
Sec. 5. [TRANSFER OF ADMINISTRATION.]
On the effective date of consolidation, the administration
of the prior relief associations is transferred to the board of
trustees of the consolidated volunteer firefighters relief
association.
Sec. 6. [TRANSFER OF RECORDS.]
On the effective date of consolidation, the secretary and
the treasurer of the Norwood volunteer firefighters relief
association and the secretary and treasurer of the Young America
volunteer firefighters relief association shall transfer all
records and documents relating to the prior relief associations
to the secretary and treasurer of the consolidated volunteer
firefighters relief association.
Sec. 7. [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.]
(a) On the effective date of consolidation, the secretary
and the treasurer of the Norwood volunteer firefighters relief
association and the secretary and treasurer of the Young America
volunteer firefighters relief association shall transfer the
assets of the special fund of the applicable relief association
to the special fund of the consolidated relief association.
Unless the appropriate secretary and treasurer decide otherwise,
the assets may be transferred as investment securities rather
than cash. The transfer must include any accounts receivable.
The appropriate secretary must settle any accounts payable from
the special fund of the relief association before the effective
date of consolidation.
(b) Upon the transfer of the assets of the special fund of
a prior relief association, the pension liabilities of that
special fund become the obligation of the special fund of the
consolidated volunteer firefighters relief association.
(c) Upon the transfer of the prior relief association
special fund assets, the board of trustees of the consolidated
volunteer firefighters relief association has legal title to and
management responsibility for the transferred assets as trustees
for persons having a beneficial interest in those assets arising
out of the benefit coverage provided by the prior relief
association.
(d) The consolidated volunteer firefighters relief
association is the successor in interest in all claims for and
against the special funds of the prior Norwood volunteer
firefighters relief association and the prior Young America
volunteer firefighters relief association, or the cities of
Norwood and Young America, with respect to the special funds of
the prior relief associations. The status of successor in
interest does not apply to any claim against a prior relief
association, the city in which that relief association is
located, or any person connected with the prior relief
association or the city, based on any act or acts that were not
done in good faith and that constituted a breach of fiduciary
responsibility under common law or Minnesota Statutes, chapter
356A.
Sec. 8. [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.]
Prior to the effective date of consolidation, the secretary
of the Norwood volunteer firefighters relief association and the
secretary of the Young America volunteer firefighters relief
association shall settle any accounts payable from the
respective general fund or any other relief association fund in
addition to the relief association special fund. Investments
held by a fund of the prior relief associations in addition to
the special fund must be liquidated before the effective date of
consolidation as the bylaws of the relief association provide.
Prior to the effective date of consolidation, the respective
relief associations must pay all applicable general fund
expenses from their respective general funds. Any balance
remaining in the general fund or in a fund other than the relief
association special fund as of the effective date of
consolidation must be paid to the new general fund of the
consolidated volunteer relief association.
Sec. 9. [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.]
Following the transfer of administration, records, special
fund assets, and special fund liabilities from the prior relief
associations to the consolidated volunteer firefighters relief
association, the Norwood volunteer firefighters relief
association and the Young America volunteer firefighters relief
association cease to exist as legal entities for any purpose.
The city clerk of the city of Norwood-Young America shall notify
the following governmental officials of the termination of the
respective volunteer firefighters relief associations and of the
establishment of the consolidated volunteer firefighters relief
association:
(1) Minnesota secretary of state;
(2) Minnesota state auditor;
(3) Minnesota commissioner of revenue; and
(4) commissioner of the federal Internal Revenue Service.
Sec. 10. [ADMINISTRATIVE EXPENSES.]
The payment of authorized administrative expenses of the
consolidated volunteer firefighters relief association must be
from the special fund of the consolidated volunteer firefighters
relief association in accordance with Minnesota Statutes,
section 69.80, and as provided for in the bylaws of the
consolidated volunteer firefighters relief association and
approved by the board of trustees or the consolidated volunteer
firefighters relief association. The payment of any other
expenses of the consolidated volunteer firefighters relief
association must be from the general fund of the consolidated
volunteer firefighters relief association in accordance with
Minnesota Statutes, section 69.80, and as provided for in the
bylaws of the consolidated volunteer firefighters relief
association and approved by the board of trustees of the
consolidated volunteer firefighters relief association.
Sec. 11. [VALIDATION OF CURRENT BENEFIT PLANS AND PRIOR
ACTIONS.]
Notwithstanding any other law, the benefit plans of the
Norwood volunteer firefighters relief association and the Young
America volunteer firefighters relief association, as reflected
in each association's articles of incorporation and bylaws as of
December 31, 1995, are ratified and validated. Acts previously
taken by the Norwood volunteer firefighters relief association
and the Young America volunteer firefighters relief association
in association with those ratified by articles of incorporation
are also ratified and validated.
Sec. 12. [BENEFITS; FUNDING.]
After the effective date of consolidation, the service
pension for a member of the consolidated firefighters relief
association is $550 for each year of past service credited by
either the Norwood volunteer firefighters relief association or
the Young America volunteer firefighters relief association.
Future service credited by the consolidated firefighters relief
association is payable in a lump sum and is to be so provided in
the bylaws of the consolidated volunteer firefighters relief
association. The service pension may be subsequently changed by
appropriate amendment to the bylaws approved by the board of
trustees and the city council of the city of Norwood-Young
America under Minnesota Statutes, sections 69.772, subdivision
6, and 424A.02, subdivisions 1 and 2. In its budget and tax
levy for the year 1997, the city of Norwood-Young America must
provide that funds will be transferred to the special fund of
the consolidated volunteer firefighters relief association to
fully fund the actuarial accrued liability of the special fund
as determined under Minnesota Statutes, section 69.772,
subdivisions 2 and 2a. Subsequent budgets and tax levies must
comply with Minnesota Statutes, section 69.772, subdivisions 3
and 4.
Sec. 13. [EFFECTIVE DATE.]
Sections 1 to 12 are effective the day following approval
by the city council of the city of Norwood and approval by the
city council of the city of Young America and compliance with
Minnesota Statutes, section 645.021.
ARTICLE 6
NONPROFIT FIREFIGHTING CORPORATIONS
Section 1. Minnesota Statutes 1994, section 466.01,
subdivision 1, is amended to read:
Subdivision 1. [MUNICIPALITY.] For the purposes of
sections 466.01 to 466.15, "municipality" means any city,
whether organized under home rule charter or otherwise, any
county, town, public authority, public corporation, nonprofit
firefighting corporation that has associated with it a relief
association as defined in section 424A.001, subdivision 4,
special district, school district, however organized, county
agricultural society organized pursuant to chapter 38, joint
powers board or organization created under section 471.59 or
other statute, public library, regional public library system,
multicounty multitype library system, family services
collaborative established under section 121.8355, other
political subdivision, or community action agency.
Sec. 2. Minnesota Statutes 1994, section 466.01,
subdivision 6, is amended to read:
Subd. 6. [EMPLOYEE, OFFICER, OR AGENT.] For the purposes
of sections 466.01 to 466.15, "employee," "officer," or "agent"
means a present or former employee, officer, or agent of a
municipality, or other person acting on behalf of the
municipality in an official capacity, temporarily or
permanently, with or without compensation, but does not include
an independent contractor other than a nonprofit firefighting
corporation that has associated with it a relief association as
defined in section 424A.001, subdivision 4. "Employee" includes
court administrators and their staff under chapter 485, district
administration staff in the second and fourth judicial
districts, guardians ad litem, and other employees within the
court system whose salaries are paid by the county, other than
employees who remain on the county payroll under section
480.181, subdivision 2.
Presented to the governor April 4, 1996
Signed by the governor April 11, 1996, 11:35 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes