Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 231-H.F.No. 2695 
                  An act relating to retirement; correcting Minneapolis 
                  firefighters relief association provisions; amending 
                  certain administrative procedures; amending Minnesota 
                  Statutes 2001 Supplement, sections 423C.01, 
                  subdivisions 17, 25; 423C.03, subdivisions 4, 6; 
                  423C.04, subdivisions 1, 4; 423C.05, subdivisions 5, 
                  6, 7, 9.  
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        423C.01, subdivision 17, is amended to read: 
           Subd. 17.  [EXCESS INVESTMENT INCOME.] "Excess investment 
        income" means the amount, if any, by which the average 
        time-weighted total rate of return earned by the special fund in 
        the most recent prior five fiscal years has exceeded the actual 
        average percentage increase in the current monthly salary of a 
        first grade firefighter in the most recent prior five fiscal 
        year years 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 special fund, except when the 
        actuarial value of assets of the special fund, according to the 
        most recent annual actuarial valuation prepared in accordance 
        with sections 356.215 and 356.216, is greater than 102 percent 
        of its actuarial accrued liabilities, in which case the amount 
        must not exceed 1.5 percent of the assets of the special fund.  
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        423C.01, subdivision 25, is amended to read: 
           Subd. 25.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
        member" means a person who was: 
           (1) legally married to, and residing with, an active, 
        deferred, or retired member both during the time the member was 
        regularly entered on the payroll and serving on active duty in 
        the fire department and at the time of the member's death; 
           (2) not in a common law marriage; and 
           (3) (2) in the event the person was married to a retired or 
        deferred member, married to that retired or deferred member for 
        at least two years one year prior to the member's discharge from 
        the fire department. 
           Sec. 3.  Minnesota Statutes 2001 Supplement, section 
        423C.03, subdivision 4, is amended to read: 
           Subd. 4.  [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a) 
        The executive secretary and the treasurer must furnish to the 
        relief association a corporate bond for the faithful performance 
        of the duties of that office in an amount as the board of 
        trustees from time to time may determine, subject to the minimum 
        amount specified in section 69.051, subdivision 2. 
           (b) The relief association must pay the premiums on these 
        bonds from the general special fund of the relief association. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        423C.03, subdivision 6, is amended to read: 
           Subd. 6.  [ADDITIONAL BOARD POWERS.] (a) In addition to the 
        powers granted the board by this chapter, chapter 317A, other 
        applicable state and federal law, and its articles and bylaws, 
        the board shall authorize and create a board of examiners.  
           (b) The board of examiners shall investigate and report on 
        all applications for disability pensions and make 
        recommendations as to the amount to be paid to each applicant; 
        investigate and report on all disability pensioners and make 
        recommendations as to the amount of pension to be paid to them, 
        from year to year; and investigate and report on all 
        applications for service pensions and claims for relief.  This 
        board shall consist of a competent physician selected by the 
        association and at least three members of the board of the 
        relief association on active duty with the fire department. 
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        423C.04, subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES.] The association shall create, 
        maintain, and administer the funds and accounts in this 
        section.  The association shall have full and permanent charge 
        and the responsibility for the proper management and control of 
        all funds that may come into its possession under this section.  
        The sources of revenue and authorized disbursements of each fund 
        and account are governed by this section. 
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        423C.04, subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any 
        law to the contrary, special fund contributions of active 
        members of the 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 health care costs of the 
        individual member upon retirement.  The board shall adopt rules 
        regarding the frequency and amounts of distributions from these 
        accounts.  A member with an account established pursuant to this 
        section is entitled, upon retirement or disability, to receive 
        periodic distributions from the account, in the amount and with 
        the frequency specified by the retiring member consistent with 
        the board's rules. 
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        423C.05, subdivision 5, is amended to read: 
           Subd. 5.  [SERVICE-RELATED PERMANENT DISABILITY PENSION.] 
        An active member who becomes permanently disabled as the result 
        of a service-related disease or injury shall, upon application 
        and approval of the board, be entitled to a pension of 42 41 
        units or in the amount determined under subdivision 8.  The 
        application for service-related permanent disability shall 
        include a certificate from a qualified medical professional 
        setting forth the permanent nature of the disability or disease 
        and that it was service related.  The board shall utilize the 
        board of examiners established pursuant to section 423C.03, 
        subdivision 6, to investigate and make recommendations on an 
        application for a pension pursuant to this subdivision. 
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        423C.05, subdivision 6, is amended to read: 
           Subd. 6.  [NON-SERVICE-RELATED PERMANENT DISABILITY 
        PENSION.] An active member who, by sickness or accident, becomes 
        permanently disabled from performing and unable to perform 
        firefighter duties for the fire department due to 
        non-service-related disease or injury shall be entitled to a 
        permanent disability pension.  No allowance for disability shall 
        be made unless notice of the disability and an application for 
        benefits is made by or on behalf of the disabled member within 
        90 days after the beginning of the disability.  This application 
        shall include a certificate from a qualified medical 
        professional setting forth the cause, nature, and extent of the 
        disability.  The board shall utilize the board of examiners 
        established pursuant to section 423C.03, subdivision 6, to 
        investigate and report on an application for benefits pursuant 
        to this section and make recommendations as to eligibility and 
        the benefit amount to be paid.  A member entitled to a 
        disability pension under this subdivision shall receive benefits 
        in the amount and manner determined by the board, not to exceed 
        41 units. 
           Sec. 9.  Minnesota Statutes 2001 Supplement, section 
        423C.05, subdivision 7, is amended to read: 
           Subd. 7.  [SURVIVING SPOUSE AND DEPENDENT PENSIONS.] 
        Notwithstanding any other law to the contrary, when a service 
        pensioner, disability pensioner, deferred pensioner, or active 
        member of the association dies, recipient beneficiaries are 
        entitled to a pension or pensions, as follows: 
           (1) to a surviving spouse, a pension of 22 units per month; 
           (2) a surviving spouse of a deceased service pensioner, 
        disability pensioner, or deferred pensioner who is otherwise not 
        qualified for a pension may receive a benefit if the surviving 
        spouse was legally married to the decedent for a period of two 
        years and was residing with the decedent at the time of death.  
        The surviving spouse benefit provided in this clause is the same 
        as that provided to those who meet the definition of surviving 
        spouse under section 423C.01, subdivision 25, except that if the 
        surviving spouse is younger than the decedent, the surviving 
        spouse benefit must be actuarially equivalent to a surviving 
        spouse benefit that would have been paid to the member's spouse 
        had the member been married to a person of the same or greater 
        age than the member's age prior to retirement.  A benefit paid 
        in this circumstance may be less than 17 units notwithstanding 
        the minimum set out in this clause subdivision; 
           (3) to each dependent, if the dependent's other parent is 
        living, a pension not to exceed eight units per month.  
        Dependents between the ages of 18 and 22 may continue to receive 
        a pension upon board determination that the dependent complies 
        with the requirements of section 423C.01, subdivision 11, and 
        applicable association bylaws, except that if the dependent 
        marries before the age of 22 years the pension shall cease as of 
        the date of the marriage.  The board shall make the final 
        determination with respect to eligibility for benefits and 
        compliance with section 423C.01, subdivision 11; 
           (4) each dependent of a deceased member after the death of 
        the dependent's other parent, or in the event the other parent 
        predeceases the member, is entitled to receive a pension in the 
        amount the board deems necessary to properly support each 
        dependent until the dependent reaches the age of not less than 
        16 and not more than 18 years.  Dependents between the ages of 
        18 and 22 may be entitled to continue receiving a pension upon 
        board determination that the dependent complies with the 
        requirements of section 423C.01, subdivision 11, and applicable 
        association bylaws, except that if the dependent marries before 
        the age of 22 years the pension shall cease as of the date of 
        the marriage.  The board shall make the final determination with 
        respect to eligibility for benefits and compliance; and 
           (5) the total pension payable to a surviving spouse and all 
        dependents of a deceased member shall in no event exceed 41 42 
        units per month. 
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        423C.05, subdivision 9, is amended to read: 
           Subd. 9.  [ALTERNATIVE SERVICE PENSION FOR UNMARRIED 
        MEMBER.] A retired member submitting an application for a 
        service pension who is was not legally married on September 1, 
        1997, and remains remained unmarried on the effective date of 
        Laws 2001, First Special Session chapter 10, article 15 October 
        25, 2001, may, if the member had obtained 25 years of service 
        credit on or before October 25, 2001, select a service pension 
        of 42.3 units in lieu of a service pension under subdivision 2.  
           Sec. 11.  [INTENT.] 
           Laws 2001, First Special Session chapter 10, article 15, 
        other than section 5, subdivision 9, of that article, was 
        intended to recodify the prior local laws applicable to the 
        Minneapolis firefighters relief association as they then 
        existed.  The provisions in sections 1, 2, 7, 9, and 10 are 
        intended to clarify eligibility for various benefits and to 
        correct provisions of Laws 2001, First Special Session chapter 
        10, article 15.  If any provision of this act or Laws 2001, 
        First Special Session chapter 10, article 15, other than section 
        5, subdivision 9, of that article, result in a member receiving 
        a benefit that the member would not have otherwise been entitled 
        to receive prior to the effective date of Laws 2001, First 
        Special Session chapter 10, article 15, the secretary of the 
        Minneapolis firefighters relief association shall notify the 
        executive director of the legislative commission on pensions and 
        retirement and the mayor of the city of Minneapolis. 
           Sec. 12.  [EFFECTIVE DATE.] 
           The provisions of sections 1, 2, 7, 9, and 10 are effective 
        retroactive to October 25, 2001.  The provisions of sections 3 
        to 6 and 8 are effective the day following final enactment. 
           Presented to the governor March 11, 2002 
           Signed by the governor March 13, 2002, 4:56 p.m.