1.1 	A bill for an act
1.2 	relating to pensions; defining the terms of the successor trust fund for the 
1.3 	Minneapolis Police Relief Association; increasing salary limits of elected 
1.4 	members of the board of trustees; readjusting the compensation of officers of 
1.5 	the Minneapolis Police Relief Association; providing for additional investment 
1.6 	authority;amending Minnesota Statutes 2004, section 423B.07; Minnesota 
1.7 	Statutes 2005 Supplement, sections 423B.05, subdivision 3; 423B.09, subdivision 
1.8 	1; proposing coding for new law in Minnesota Statutes, chapter 423B.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2005 Supplement, section 423B.05, subdivision 3, is 
1.11 	amended to read:
1.12 		Subd. 3.Continuation of board. Notwithstanding the provisions of section 
1.13 	423A.01, subdivision 2, or any other law, the board of trustees and its successors 
1.14 	established under subdivision 1 shall continue to govern the association until there are no 
1.15 	more than 225 members of the police pension fund. The fund thereafter must become a 
1.16 	trust fund in accordance with section 423A.01, subdivision 2, provided that the successor 
1.17 	trustees of the trust fund shall continue to exercise the same authority as provided for in 
1.18 	this chapter. To the extent there is any conflict between the provisions of section 423A.01, 
1.19 	subdivision 2, or applicable trust law provisions in the administration of the successor 
1.20 	trust fund, the provisions of this chapter shall prevail. The trustees of the trust shall be 
1.21 	elected by the members of the trust in a manner determined by the members.

1.22 	Sec. 2. Minnesota Statutes 2004, section 423B.07, is amended to read:
1.23 	423B.07 AUTHORIZED FUND DISBURSEMENTS.
1.24 	The police pension fund may be used only for the payment of:
1.25 	(1) service, disability, or dependency pensions;
2.1 	(2) notwithstanding a contrary provision of section  69.80, the salaries of the elected 
2.2 	members of the board of trustees in an amount not to exceed ~~three~~seven units for the 
2.3 	president and five units for other elected board members; 
2.4 	(3) expenses of officers and employees of the association in connection with the 
2.5 	protection of the fund;
2.6 	(4) expenses of operating and maintaining the association, including the 
2.7 	administrative expenses related to the administration of the insurance plan authorized 
2.8 	in section  423B.08; and 
2.9 	(5) other expenses authorized by section  69.80, or other applicable law. 

2.10 	Sec. 3. Minnesota Statutes 2005 Supplement, section 423B.09, subdivision 1, is 
2.11 	amended to read:
2.12 		Subdivision 1.Minneapolis police; persons entitled to receive pensions. The 
2.13 	association shall grant pensions payable from the police pension fund in monthly 
2.14 	installments to persons entitled to pensions in the manner and for the following purposes.
2.15 	(a) An active member or a deferred pensioner who has performed duty as a member 
2.16 	of the police department of the city for five years or more, upon written application after 
2.17 	retiring from duty and reaching at least age 50, is entitled to be paid monthly for life a 
2.18 	service pension. Active members, deferred members, and service pensioners are entitled 
2.19 	to a service pension according to the following schedule:

2.20 | | | A | B
2.21 | | 5 years | ~~8.0~~8.5 units | 9.0 units
2.22 | | 6 years | ~~9.6~~10.1 units | 10.6 units
2.23 | | 7 years | ~~11.2~~11.7 units | 12.2 units
2.24 | | 8 years | ~~12.8~~13.3 units | 13.8 units
2.25 | | 9 years | ~~14.4~~14.9 units | 15.4 units
2.26 | | 10 years | ~~16.0~~16.5 units | 17.0 units
2.27 | | 11 years | ~~17.6~~18.1 units | 18.6 units
2.28 | | 12 years | ~~19.2~~19.7 units | 20.2 units
2.29 | | 13 years | ~~20.8~~21.3 units | 21.8 units
2.30 | | 14 years | ~~22.4~~22.9 units | 23.4 units
2.31 | | 15 years | ~~24.0~~24.5 units | 25.0 units
2.32 | | 16 years | ~~25.6~~26.1 units | 26.6 units
3.1 | | 17 years | ~~27.2~~27.7 units | 28.2 units
3.2 | | 18 years | ~~28.8~~29.3 units | 29.8 units
3.3 | | 19 years | ~~30.4~~30.9 units | 31.4 units
3.4 | | | ~~A~~ | ~~B~~
3.5 | | 20 years | 34.5 units | 35.0 units
3.6 | | 21 years | 36.1 units | 36.6 units
3.7 | | 22 years | 37.7 units | 38.2 units
3.8 | | 23 years | 39.3 units | 39.8 units
3.9 | | 24 years | 40.9 units | 41.4 units
3.10 | | 25 years | 42.5 units | 43.0 units
3.11 	Column A is applicable until December 31, 2005, and applies retroactively to 
3.12 	January 1, 2005, for a service pensioner who retired before January 1, 2005. Column B 
3.13 	applies on and after January 1, 2006.
3.14 	Fractional years of service may not be used in computing pensions.
3.15 	(b) An active member who after five years' service but less than 20 years' service 
3.16 	with the police department of the city, becomes superannuated so as to be permanently 
3.17 	unable to perform the person's assigned duties, is entitled to be paid monthly for life a 
3.18 	superannuation pension equal to four units for five years of service and an additional two 
3.19 	units for each full year of service over five years and less than 20 years.
3.20 	(c) An active member who is not eligible for a service pension and who, while a 
3.21 	member of the police department of the city, becomes diseased or sustains an injury while 
3.22 	in the service that permanently unfits the member for the performance of police duties is 
3.23 	entitled to be paid monthly for life a pension equal to 34 units while so disabled.

3.24 	Sec. 4. [423B.23] INVESTMENT AUTHORITY.
3.25 	Notwithstanding the provisions of section 356A.06, subdivision 7, the association 
3.26 	may invest up to five percent of the assets of the fund in below investment grade 
3.27 	government or corporate bonds, debt, or other fixed investment instruments.

3.28 	Sec. 5. EFFECTIVE DATE.
 3.29 	Sections 1 to 4 are effective the day after approval by the Minneapolis City Council 
3.30 	under Minnesota Statutes, section 645.021.