1.1                          A bill for an act 
  1.2             relating to retirement; recodifying laws applicable to 
  1.3             the Minneapolis fire department relief association; 
  1.4             clarifying laws for the administration of the 
  1.5             association; proposing coding for new law as Minnesota 
  1.6             Statutes, chapter 423C; repealing Laws 1907, chapter 
  1.7             24; Laws 1913, chapters 318; and 419; Laws 1917, 
  1.8             chapter 196; Laws 1919, chapters 515; and 523; Laws 
  1.9             1921, chapter 404; Laws 1923, chapter 61; Laws 1945, 
  1.10            chapter 322; Laws 1959, chapters 213; 491; and 568; 
  1.11            Laws 1961, chapter 109; Extra Session Laws 1961, 
  1.12            chapter 3; Laws 1963, chapter 318; Laws 1965, chapters 
  1.13            519; and 578; Laws 1967, chapters 819; and 824; Laws 
  1.14            1969, chapters 123; and 287; Laws 1971, chapter 542; 
  1.15            Laws 1975, chapter 57; Laws 1977, chapter 164, section 
  1.16            2; Laws 1980, chapter 607, article XV, sections 8, 9, 
  1.17            and 10; Laws 1988, chapters 572, sections 4, 5, and 6; 
  1.18            and 574, sections 3, 4, and 5; Laws 1989, chapter 319, 
  1.19            article 19, sections 6 and 7; Laws 1990, chapter 589, 
  1.20            article 1, sections 5 and 6; Laws 1992, chapters 429; 
  1.21            454, section 2; and 471, article 2; Laws 1993, 
  1.22            chapters 125; and 192, section 32; and Laws 1994, 
  1.23            chapters 591; and 632, article 3, section 14.  
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  [423C.01] [MINNEAPOLIS FIRE DEPARTMENT RELIEF 
  1.26  ASSOCIATION; DEFINITIONS.] 
  1.27     Subdivision 1.  [TERMS.] For purposes of this chapter, 
  1.28  unless the context clearly indicates otherwise, each of the 
  1.29  terms defined in this section has the indicated meaning.  
  1.30     Subd. 2.  [ACTIVE MEMBER.] "Active member" means a person 
  1.31  who was hired and duly appointed by the city of Minneapolis 
  1.32  before June 15, 1980, as a firefighter who is regularly entered 
  1.33  on the payroll of the fire department and who serves on active 
  1.34  duty.  
  2.1      Subd. 3.  [AGE.] "Age" means a person's age at the person's 
  2.2   latest birthday.  
  2.3      Subd. 4.  [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 
  2.4   postretirement payment" means the payment of a lump sum 
  2.5   postretirement benefit to an eligible member on June 1 following 
  2.6   the determination date in any year.  
  2.7      Subd. 5.  [DEPENDENT.] "Dependent" means a biological or 
  2.8   adopted child of a deceased active or retired member who is 
  2.9   unmarried and under the age of 18, or age 18 to 22, while the 
  2.10  child is enrolled as a full-time student at an accredited 
  2.11  educational institution approved by the board of trustees.  
  2.12  Dependent also includes a child of an active or retired member 
  2.13  conceived during the active or retired member's lifetime and 
  2.14  born after the active or retired member's death.  
  2.15     Subd. 6.  [DETERMINATION DATE.] "Determination date" means 
  2.16  December 31 of each year.  
  2.17     Subd. 7.  [DISABILITY.] "Disability" means a sickness or 
  2.18  accident causing a member to be disabled from performing 
  2.19  firefighting duties on the fire department. 
  2.20     Subd. 8.  [DISCHARGE.] "Discharge" means a complete 
  2.21  separation from and termination of active service as a member of 
  2.22  the fire department.  
  2.23     Subd. 9.  [ELIGIBLE MEMBER.] "Eligible member" means a 
  2.24  person, including a service pensioner, a disability pensioner, a 
  2.25  survivor, or dependent of a deceased active member, service 
  2.26  pensioner, deferred pensioner, or disability pensioner, who 
  2.27  received a pension or benefit from the relief association during 
  2.28  the 12 months before the determination date.  
  2.29     Subd. 10.  [EXCESS INVESTMENT INCOME.] "Excess investment 
  2.30  income" means the amount, if any, by which the time weighted 
  2.31  total rate of return earned by the fund in the most recent 
  2.32  fiscal year has exceeded the actual percentage increase in the 
  2.33  current monthly salary of a first grade firefighter in the most 
  2.34  recent fiscal year plus two percent.  The amount must be 
  2.35  expressed as a dollar amount and may not exceed one percent of 
  2.36  the total assets of the fund and does not exist unless the 
  3.1   yearly average percentage increase of the time weighted total 
  3.2   rate of return of the fund for the previous five years exceeds 
  3.3   by two percent the yearly average percentage increase in the 
  3.4   monthly salary of a first grade firefighter during the previous 
  3.5   five calendar years.  
  3.6      Subd. 11.  [FIRE DEPARTMENT.] "Fire department" means the 
  3.7   fire department of the city of Minneapolis.  
  3.8      Subd. 12.  [FUND.] "Fund" means the special fund of the 
  3.9   relief association.  
  3.10     Subd. 13.  [RETIRED MEMBER.] "Retired member" means a 
  3.11  former active member who has terminated active service in the 
  3.12  fire department and who is entitled to receive a pension or 
  3.13  benefit under this chapter, as amended, or any previous law.  
  3.14     Subd. 14.  SURVIVING SPOUSE.  "Surviving spouse" means the 
  3.15  person who was the legally married spouse of the member, who was 
  3.16  residing with the decedent, who was married while or before the 
  3.17  time the decedent was an active member and was on the payroll of 
  3.18  the fire department, and who, if the deceased member was a 
  3.19  pensioner or deferred pensioner, was legally married to the 
  3.20  member at least one year before the decedent's termination of 
  3.21  active service with the fire department.  The term does not 
  3.22  include the surviving spouse who has deserted a member or who 
  3.23  has not been dependent upon the member for support, nor does it 
  3.24  include the surviving common law spouse of a member.  
  3.25     Subd. 15.  [SURVIVING SPOUSE MEMBER.] "Surviving spouse 
  3.26  member" means the person who was the legally married spouse of 
  3.27  the member, who was residing with the decedent, who was married 
  3.28  while or before the time the decedent was an active member and 
  3.29  was on the payroll of the fire department, and who, if the 
  3.30  deceased member was a pensioner or deferred pensioner, was 
  3.31  legally married to the member at least one year before the 
  3.32  decedent's termination of active service with the fire 
  3.33  department.  The term does not include the surviving spouse who 
  3.34  has deserted a member or who has not been dependent upon the 
  3.35  member for support, nor does it include the surviving common law 
  3.36  spouse of a member.  
  4.1      Subd. 16.  [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time 
  4.2   weighted total rate of return" means the percentage amount 
  4.3   determined by using the formula or formulas established by the 
  4.4   state board of investment under section 11A.04, clause (11), and 
  4.5   in effect on January 1, 1987.  
  4.6      Subd. 17.  [UNIT.] "Unit" means 1/80 of the maximum monthly 
  4.7   salary of a first grade firefighter on the first day of the 
  4.8   month in which the pension benefits provided by this chapter are 
  4.9   paid. 
  4.10     Sec. 2.  [423C.02] [FIREFIGHTERS RELIEF ASSOCIATION IN 
  4.11  MINNEAPOLIS.] 
  4.12     Subdivision 1.  [CREATION.] The Minneapolis fire department 
  4.13  shall maintain a firefighters relief association, which shall be 
  4.14  duly incorporated under chapter 317A.  The association now 
  4.15  existing as a corporation shall have perpetual corporate 
  4.16  existence.  
  4.17     Subd. 2.  [RELIEF ASSOCIATION SELF-GOVERNING.] The relief 
  4.18  association shall be organized, operated, and maintained in 
  4.19  accordance with its articles of incorporation and bylaws by 
  4.20  those individuals, as defined in section 423C.01, who are 
  4.21  members, retired members, or surviving spouses of deceased 
  4.22  members of the fire department.  The association shall have 
  4.23  power to regulate its own management and its own affairs, and 
  4.24  all additional corporate powers which may be necessary or 
  4.25  useful; subject to chapter 317A, not inconsistent with the 
  4.26  provisions of this chapter.  
  4.27     Sec. 3.  [423C.03] [BOARD OF TRUSTEES OFFICERS; DUTIES; 
  4.28  BONDS; COMPENSATION.] 
  4.29     Subdivision 1.  [OFFICERS OF RELIEF ASSOCIATION.] The 
  4.30  officers of the relief association shall consist of a president, 
  4.31  one or more vice-presidents, a secretary, a treasurer, an 
  4.32  assistant secretary, and an assistant treasurer.  The affairs of 
  4.33  the association shall be managed by a board of trustees elected 
  4.34  in the manner prescribed by subdivision 4.  
  4.35     Subd. 2.  [BOND FOR SECRETARY AND TREASURER.] The secretary 
  4.36  of the relief association shall furnish a corporate bond to the 
  5.1   association for the faithful performance of duties in an amount 
  5.2   that as the association from time to time may determine.  The 
  5.3   treasurer of the relief association shall furnish a corporate 
  5.4   bond to the association for the faithful performance of duties 
  5.5   in an amount acceptable to the city of Minneapolis.  The relief 
  5.6   association shall, and it is hereby authorized to, pay the 
  5.7   premiums on these bonds from its special fund.  
  5.8      Subd. 3.  [COMPENSATION OF OFFICERS.] Notwithstanding 
  5.9   section 69.80, the relief association may provide for the 
  5.10  payment of salary of the secretary of the association in an 
  5.11  amount not to exceed 29 percent of the maximum salary of a top 
  5.12  grade firefighter and the salaries of the other elected members 
  5.13  of the board of trustees in an amount not to exceed 2-1/2 
  5.14  percent of the maximum salary of a top grade firefighter.  
  5.15     Subd. 4.  [ELECTION OF OFFICERS.] No person except an 
  5.16  active or retired member or a surviving spouse member of the 
  5.17  association shall be an officer of the association.  Officers 
  5.18  shall have those duties and responsibilities as set forth in the 
  5.19  bylaws as delegated by the board and shall be compensated as 
  5.20  provided in the bylaws. 
  5.21     The business and affairs of the association shall be 
  5.22  managed by or under the direction of the board.  The board shall 
  5.23  consist of two persons appointed by the city of Minneapolis as 
  5.24  required by Minnesota Statutes and up to 12 other trustees which 
  5.25  shall include six active members and up to six retired members 
  5.26  or surviving spouse members of the association and elected as 
  5.27  provided in this subdivision.  All officers shall hold office 
  5.28  for the term of one year and until their successors are elected 
  5.29  and qualified, and shall be elected each year by the board at 
  5.30  the annual meeting of the association.  Newly created retired 
  5.31  member and surviving spouse member positions will be filled at 
  5.32  the next annual elections, with one retired member or surviving 
  5.33  spouse member elected in each year.  The association may have a 
  5.34  medical advisor who may be elected from the honorary members. 
  5.35     Trustees shall be elected at the annual elections to be 
  5.36  held as provided in the bylaws and shall serve for a term of 
  6.1   three years.  Two active member trustees shall be elected each 
  6.2   year by vote of the active membership.  Two retired/survivor 
  6.3   spouse trustees shall be elected each year by vote of the 
  6.4   retired/survivor spouse membership. 
  6.5      Sec. 4.  [423C.04] [ELIGIBILITY.] 
  6.6      All personnel who meet the definition of active member, 
  6.7   retired member, or surviving spouse member, and who were treated 
  6.8   as meeting those definitions as of January 1, 1995, are deemed 
  6.9   to be members of the association.  
  6.10     Sec. 5.  [423C.05] [PAYROLL DEDUCTION.] 
  6.11     Subdivision 1.  [SPECIAL FUND PAYROLL DEDUCTION; DUTIES OF 
  6.12  CITY FINANCE OFFICER.] The city finance officer shall deduct 
  6.13  from each active member's biweekly payroll check a sum 
  6.14  equivalent to eight percent of the maximum monthly salary of a 
  6.15  first grade firefighter and pay the amount deducted to the 
  6.16  treasurer of the relief association for credit to the special 
  6.17  fund of the association.  
  6.18     Subd. 2.  [GENERAL FUND DEDUCTION; DUTIES OF CITY FINANCE 
  6.19  OFFICER.] The city finance officer shall deduct from each active 
  6.20  member's biweekly payroll check a sum equal to one-half of one 
  6.21  percent of the maximum biweekly salary of a first grade 
  6.22  firefighter and pay the amount deducted to the treasurer of the 
  6.23  relief association for credit in the general fund of the 
  6.24  association.  
  6.25     Sec. 6.  [423C.06] [ASSOCIATION TO MANAGE FUNDS.] 
  6.26     The relief association shall have full and permanent charge 
  6.27  of, and the responsibility for the proper management and control 
  6.28  of, all funds that may come into its possession, and 
  6.29  particularly funds derived from the following sources:  
  6.30     (1) receipts from the state and interest from the 
  6.31  investment thereof; 
  6.32     (2) receipts from tax levies by the city in which the 
  6.33  relief association is located and interest from the investment 
  6.34  thereof; and 
  6.35     (3) receipts from private sources, such as gifts, charges, 
  6.36  rents, fundraising project dues paid by members, and all other 
  7.1   sources.  
  7.2      Sec. 7.  [423C.07] [SEPARATE FUNDS.] 
  7.3      The money received from the various sources shall be kept 
  7.4   in two separate and distinct funds, one to be designated as the 
  7.5   association special fund, and the other as its general fund.  
  7.6   All money received from the state and from the city of 
  7.7   Minneapolis, including members' dues, shall be deposited in the 
  7.8   special fund and expended only for purposes authorized in this 
  7.9   chapter or other law.  All money received from other sources 
  7.10  shall be deposited in the general fund and may be expended for 
  7.11  any purpose deemed proper by the association.  
  7.12     Sec. 8.  [423C.08] [PAYMENTS.] 
  7.13     The amount so paid to the relief association by the state 
  7.14  and the city of Minneapolis under the provisions of law and 
  7.15  deposited as a special fund, is appropriated and shall be 
  7.16  disbursed by the association for the following purposes:  
  7.17     (1) the relief of sick, injured, and disabled members of 
  7.18  the relief association and their surviving spouses and 
  7.19  dependents; 
  7.20     (2) the payment of disability and service pensions to 
  7.21  members of the relief association; and 
  7.22     (3) the payment of the administrative expenses of the 
  7.23  association as authorized pursuant to section 69.80 or this 
  7.24  chapter.  
  7.25     Sec. 9.  [423C.09] [SICKNESS AND DISABILITY DEFINED.] 
  7.26     The relief association shall in its bylaws define the 
  7.27  sickness and disability entitling its members to relief, specify 
  7.28  the amounts to be paid to disability and service pensioners and 
  7.29  to surviving spouses and children of deceased members.  
  7.30     Sec. 10.  [423C.10] [PENSIONS; RIGHT TO REDUCE.] 
  7.31     The firefighters relief association shall at all times have 
  7.32  the right to reduce the amount of pensions and benefits paid out 
  7.33  of its funds, and to reduce and otherwise adjust the amounts of 
  7.34  the pensions and benefits to be thereafter paid out of its 
  7.35  fund.  Within the limits prescribed in this chapter, state law, 
  7.36  and the federal and state constitutions, the association shall 
  8.1   have and retain the right to increase or otherwise adjust these 
  8.2   pensions and benefits after the same have been so reduced.  
  8.3      Sec. 11.  [423C.11] [PERSONS ENTITLED TO RELIEF.] 
  8.4      A member of the association who, by reason of sickness or 
  8.5   accident, becomes disabled from performing firefighter duties on 
  8.6   the fire department shall be entitled to the relief that the 
  8.7   bylaws of the association provide.  
  8.8      No allowance for disabilities shall be made unless notice 
  8.9   of the disability and application for benefits is made by, or on 
  8.10  behalf of, the disabled member to the association within 90 days 
  8.11  after the beginning of the disability.  
  8.12     Sec. 12.  [423C.12] [DISABILITY BENEFITS; AMOUNT.] 
  8.13     A member of the relief association entitled to disability 
  8.14  benefits shall receive benefits from the association for that 
  8.15  period of time, at such times, and in amounts, not to exceed 41 
  8.16  units per month, as provided by the bylaws of the association.  
  8.17     Sec. 13.  [423C.13] [RETIREMENT PENSION.] 
  8.18     A member of the association who has completed a period, or 
  8.19  periods of service on the fire department equal to 20 years or 
  8.20  more prior to April 1, 1987, shall, after attaining the age of 
  8.21  50 years or more and having retired from the payroll of the fire 
  8.22  department, be entitled to a basic pension of not less than 20 
  8.23  units and not more than 32 units per month for life in 
  8.24  conformity to the bylaws of the association.  
  8.25     A member of the association who retired between April 1, 
  8.26  1988, and May 31, 1993, shall be entitled to a service pension 
  8.27  under the terms of the bylaws of the association as they existed 
  8.28  at the time of the member's separation from service from the 
  8.29  fire department. 
  8.30     The service pensions payable by the Minneapolis fire 
  8.31  department relief association for members terminating active 
  8.32  service as a Minneapolis firefighter after June 1, 1993, must be 
  8.33  computed as follows:  
  8.34           Years of             Units of Service 
  8.35           Credited Service     Pension Payable 
  8.36                  5                   8.0 
  9.1                   6                   9.6 
  9.2                   7                  11.2 
  9.3                   8                  12.8 
  9.4                   9                  14.4 
  9.5                  10                  16.0 
  9.6                  11                  17.6 
  9.7                  12                  19.2 
  9.8                  13                  20.8 
  9.9                  14                  22.4 
  9.10                 15                  24.0 
  9.11                 16                  25.6 
  9.12                 17                  27.2 
  9.13                 18                  28.8 
  9.14                 19                  30.4 
  9.15                 20                  33.0 
  9.16                 21                  34.6 
  9.17                 22                  36.2 
  9.18                 23                  37.8 
  9.19                 24                  39.4 
  9.20                 25                  41.0 
  9.21     Any and all leaves of absence of more than 90 days, except 
  9.22  as are granted to a member because of disability due to sickness 
  9.23  or accident, shall be excluded in computing a period of service; 
  9.24  and all periods of time during which a member received a 
  9.25  disability pension shall be excluded in the computation.  No 
  9.26  deductions shall be made for a leave of absence granted to a 
  9.27  member to enable the member to accept an appointive position in 
  9.28  the fire department.  No member shall be entitled to draw both a 
  9.29  disability and a service pension. 
  9.30     The bylaws of the association may provide for these 
  9.31  increases, or any portion thereof; provided that in no event the 
  9.32  total pension exceeds the sum of 41 units per month. 
  9.33     Sec. 14.  [423C.14] [WAR SERVICE INCLUDED IN PERIOD OF 
  9.34  SERVICE.] 
  9.35     Any applicant for a service pension who subsequent to entry 
  9.36  into the service of the fire department leaves the active 
 10.1   service of the fire department to serve in the military forces 
 10.2   of the United States in time of war or national emergency, or 
 10.3   having left the active service of the fire department to enter 
 10.4   the employment of the government of the United States during a 
 10.5   war or emergency and in that service rendered fire prevention 
 10.6   services during the war or emergency and has returned after 
 10.7   honorable discharge from service, and, within six months after 
 10.8   discharge, either applied for reinstatement in or resumed active 
 10.9   duty in the fire department, the period of absence in the 
 10.10  service of the United States shall be counted in computing the 
 10.11  period of service, but during the period of military or fire 
 10.12  prevention service, the applicant shall not be considered as an 
 10.13  active member of the association; provided, however:  
 10.14     (1) credit shall be granted for service rendered subsequent 
 10.15  to July 1, 1961, but the credit shall not exceed six calendar 
 10.16  years; 
 10.17     (2) no credit shall be granted for service rendered 
 10.18  subsequent to July 1, 1961, if the service credit for service 
 10.19  rendered prior to July 1, 1961, equals or exceeds six calendar 
 10.20  years; and 
 10.21     (3) if the service credit for service prior to July 1, 
 10.22  1961, is less than six calendar years, credit for service 
 10.23  subsequent to July 1, 1961, shall be added to the prior service, 
 10.24  but in no case shall total service credit exceed six calendar 
 10.25  years.  
 10.26     Sec. 15.  [423C.15] [MEMBER MAY BE ON DEFERRED PENSION 
 10.27  LIST.] 
 10.28     A member of the association who has performed service on 
 10.29  the fire department for five years or more but has not reached 
 10.30  the age of 50 years shall have the right to retire from the 
 10.31  department after April 1, 1988, without forfeiting the right to 
 10.32  a service pension.  The member shall, upon application, be 
 10.33  placed on the deferred pension roll of the association and, 
 10.34  after the member has reached the age of 50 years, the 
 10.35  association shall, upon application, pay the member's pension 
 10.36  from the date the application is approved by the association.  
 11.1   Any person making this application thereby waives all other 
 11.2   rights, claims, or demands against the association for any cause 
 11.3   that may have arisen from, or that may be attributable to, the 
 11.4   person's service in the fire department. 
 11.5      Sec. 16.  [423C.16] [RECIPIENT BENEFICIARIES.] 
 11.6      Subdivision 1.  [SURVIVING SPOUSE.] When a service 
 11.7   pensioner, disability pensioner, deferred pensioner, or an 
 11.8   active member of a relief association dies, leaving a surviving 
 11.9   spouse, the surviving spouse is entitled to a pension of not 
 11.10  less than five units, and not to exceed the total of 22 units 
 11.11  per month for life, as the bylaws of the association provide.  
 11.12     Subd. 2.  [DEPENDENTS.] When a service pensioner, 
 11.13  disability pensioner, deferred pensioner, or an active member of 
 11.14  the relief association dies, leaving a child or children who 
 11.15  were living while the deceased was on the payroll of the fire 
 11.16  department, or born within nine months after the decedent was 
 11.17  withdrawn from the payroll of the fire department, the child or 
 11.18  children shall be entitled to a pension or pensions, if the 
 11.19  other parent is living, a pension of not to exceed eight units 
 11.20  per month for each child up to the time each child reaches the 
 11.21  age of 18 years.  
 11.22     Subd. 3.  [EXTENSION OF BENEFITS FOR FULL STUDENTS.] Upon 
 11.23  approval by the board of trustees, a child who is a full-time 
 11.24  student, upon proof of compliance with the provisions of this 
 11.25  act, may be entitled to a pension so long as the child is a 
 11.26  full-time student and has not reached 22 years of age, all in 
 11.27  conformity with the bylaws of the association.  For the purposes 
 11.28  of this act, a full-time student is defined as an individual who 
 11.29  is in full-time attendance as a student at an educational 
 11.30  institution.  Whether or not the student is in full-time 
 11.31  attendance will be determined by the board of trustees of the 
 11.32  association in the light of the standards and practices of the 
 11.33  school involved.  Specifically excluded is a person who is paid 
 11.34  by the person's employer while attending school at the request 
 11.35  of the person's employer. 
 11.36     Benefits may continue during any period of four calendar 
 12.1   months or less in any 12-month period in which a person does not 
 12.2   attend school if the person shows to the satisfaction of the 
 12.3   board of trustees that the person intends to continue in 
 12.4   full-time school attendance immediately after the end of the 
 12.5   period.  An educational institution is defined so as to permit 
 12.6   the payment of benefits to students taking vocational or 
 12.7   academic courses in all approved, accredited, or licensed 
 12.8   schools, colleges, and universities. 
 12.9      The board of trustees shall make the final determination of 
 12.10  eligibility for benefits if any question arises concerning the 
 12.11  approved status of the educational institution which the student 
 12.12  attends or proposes to attend.  
 12.13     Subd. 4.  [EXTENSION OF BENEFITS IN THE EVENT OF DEATH OF 
 12.14  BOTH PARENTS.] A child or children of a deceased member after 
 12.15  the death of the other parent, or in the event the other parent 
 12.16  predeceases the member, is entitled to receive a pension or 
 12.17  pensions in an amount as the board of trustees of the 
 12.18  association shall deem necessary to properly support the child 
 12.19  or children until they reach the age of 16 and not more than 18 
 12.20  years; provided, however, upon approval by the board of 
 12.21  trustees, a child who is a full-time student, upon proof of 
 12.22  compliance with the provisions of this act, may be entitled to a 
 12.23  pension while the child is a full-time student and has not 
 12.24  reached 22 years of age, as the bylaws of the association may 
 12.25  provide; but the total amount of the pension or pensions 
 12.26  hereunder for any child or children shall not exceed the sum of 
 12.27  41 units per month.  
 12.28     Subd. 5.  [LIMIT ON TOTAL UNITS.] The total pension payable 
 12.29  to the surviving spouse and children of the deceased member 
 12.30  shall not exceed the sum of 41 units per month.  
 12.31     Subd. 6.  [LIMITATION OF DEPENDENT'S REVIEW.] In the event 
 12.32  that a child receiving a pension under this chapter shall marry 
 12.33  before the age of 22 years, the pension shall cease as of the 
 12.34  date of the marriage.  
 12.35     Sec. 17.  [423C.17] [INVESTMENT RELATED POSTRETIREMENT 
 12.36  ADJUSTMENTS.] 
 13.1      Subdivision 1.  [ANNUAL POSTRETIREMENT PAYMENT AUTHORIZED.] 
 13.2   Notwithstanding the provisions of chapter 69, or any other law 
 13.3   to the contrary, the relief association may provide annual 
 13.4   postretirement payments to eligible members under this section. 
 13.5      Subd. 2.  [DETERMINATION OF EXCESS INVESTMENT INCOME.] The 
 13.6   board of trustees of the relief association shall determine by 
 13.7   May 1 of each year whether or not the relief association has 
 13.8   excess investment income.  The amount of excess investment 
 13.9   income, if any, must be stated as a dollar amount and reported 
 13.10  by the chief administrative officer of the relief association to 
 13.11  the mayor and governing body of the city, the state auditor, the 
 13.12  commissioner of finance, and the executive director of the 
 13.13  legislative commission on pensions and retirement.  The dollar 
 13.14  amount of excess investment income up to one percent of the 
 13.15  assets of the fund must be applied for the purpose specified in 
 13.16  subdivision 4. 
 13.17     Excess investment income must not be considered as income 
 13.18  to, or assets of, the fund for actuarial valuations of the fund 
 13.19  for that year under sections 69.77, 356.215, 356.216, and the 
 13.20  provisions of this section except to offset the annual 
 13.21  postretirement payment.  Additional investment income is any 
 13.22  realized or unrealized investment income other than the excess 
 13.23  investment income and must be included in the actuarial 
 13.24  valuations performed under sections 69.77, 356.215, 356.216, and 
 13.25  the provisions of this section.  
 13.26     Subd. 3.  [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 
 13.27  amount determined under subdivision 2 must be applied in 
 13.28  accordance with this subdivision.  The relief association shall 
 13.29  apply the first one-half of one percent of assets which 
 13.30  constitute excess investment income to the payment of an annual 
 13.31  postretirement payment as specified in this subdivision.  The 
 13.32  second one-half of one percent of assets which constitute excess 
 13.33  investment income shall be applied to reduce the state 
 13.34  amortization state aid or supplementary amortization state aid 
 13.35  payments otherwise due to the relief association under section 
 13.36  423A.02 for the current calendar year.  
 14.1      The relief association shall pay an annual postretirement 
 14.2   payment to all eligible members in an amount not to exceed 
 14.3   one-half of one percent of the assets of the fund.  Payment of 
 14.4   the annual postretirement payment must be in a lump sum amount 
 14.5   on June 1 following the determination date in any year. 
 14.6      Payment of the annual postretirement payment may be made 
 14.7   only if the time weighted total rate of return exceeds by two 
 14.8   percent the actual percentage increase in the maximum monthly 
 14.9   salary of a top grade firefighter in the most recent fiscal year 
 14.10  and the yearly average percentage increase of the time weighted 
 14.11  total rate of return of the fund for the previous five years 
 14.12  exceeds by two percent the yearly average percentage increase in 
 14.13  monthly salary of a top grade firefighter of the previous five 
 14.14  years.  The total amount of all payments to members may not 
 14.15  exceed the amount determined under subdivision 2. 
 14.16     Payment to each eligible member must be calculated by 
 14.17  dividing the total number of pension units to which eligible 
 14.18  members are entitled into the excess investment income available 
 14.19  for distribution to members, and then multiplying that result by 
 14.20  the number of units to which each eligible member is entitled to 
 14.21  determine each eligible member's annual postretirement payment. 
 14.22     Payment to each eligible member may not exceed an amount 
 14.23  equal to the total monthly benefit that the eligible member was 
 14.24  entitled to in the prior year under the terms of the benefit 
 14.25  plan of the relief association or each eligible member's 
 14.26  proportionate share of the excess investment income, whichever 
 14.27  is less.  
 14.28     Subd. 4.  [ANNUAL POSTRETIREMENT PAYMENT IN THE EVENT OF 
 14.29  DEATH.] In the event an eligible member dies prior to the 
 14.30  payment of the annual postretirement payment, the chief 
 14.31  administrative officer of the relief association shall pay that 
 14.32  eligible member's estate the amount to which the eligible member 
 14.33  was entitled. 
 14.34     Subd. 5.  [REPORT ON ANNUAL POSTRETIREMENT PAYMENT.] The 
 14.35  chief administrative officer of the relief association shall 
 14.36  submit a report on the amount of all postretirement payments 
 15.1   made under this section and the manner in which those payments 
 15.2   were determined to the state auditor, the executive director of 
 15.3   the legislative commission on pensions and retirement, and the 
 15.4   city clerk of the city of Minneapolis. 
 15.5      Subd. 6.  [NO GUARANTEE OF ANNUAL POSTRETIREMENT PAYMENT.] 
 15.6   No provision of or payment made under this section may be 
 15.7   interpreted or relied upon by any member of the relief 
 15.8   association to guarantee or entitle a member to annual 
 15.9   postretirement payments for a period when no excess investment 
 15.10  income is earned by the fund. 
 15.11     Sec. 18.  [423C.18] [HEALTH INSURANCE ACCOUNT.] 
 15.12     (a) Notwithstanding any law to the contrary, contributions 
 15.13  of active members of the relief association with at least 25 
 15.14  years of service made after the 25th year of service must be 
 15.15  deposited in a separate account and used to pay the future 
 15.16  health insurance costs of the individual member upon that 
 15.17  member's retirement. 
 15.18     (b) A member who retires with at least 25 years of service 
 15.19  is entitled to receive periodic distributions from the remaining 
 15.20  balance in the member's health insurance account, in the amount 
 15.21  and with the frequency specified by the retiring member in 
 15.22  conformance with rules adopted by the board of trustees for this 
 15.23  purpose. 
 15.24     Sec. 19.  [423C.19] [MEMBER CONTRIBUTION REFUND TO 
 15.25  BENEFICIARY UPON DEATH.] 
 15.26     If an active, deferred, or retired member of the 
 15.27  association dies and no survivor benefit is payable, the 
 15.28  designated beneficiary of the decedent or, if none, the legal 
 15.29  representative of the estate of the decedent is entitled, upon 
 15.30  application, to a refund.  The refund shall be an amount equal 
 15.31  to the member contributions to the credit of the decedent, plus 
 15.32  interest on those contributions at an annual compound rate of 
 15.33  five percent from the first day of the month following the date 
 15.34  of death of the decedent, reduced by the sum of any service 
 15.35  pension or disability benefit previously paid by the fund to the 
 15.36  decedent. 
 16.1      Sec. 20.  [423C.20] [BOARD OF EXAMINERS.] 
 16.2      The relief association shall establish a board of examiners 
 16.3   who shall, as and when requested by the association's board of 
 16.4   trustees, investigate and make report on all applications for 
 16.5   disability pensions and make recommendations as to the amount to 
 16.6   be paid to each applicant, investigate and make report on all 
 16.7   disability pensioners and make recommendations as to amount of 
 16.8   pension to be paid to them from year to year, and investigate 
 16.9   and report on all applications for service pensions and claims 
 16.10  for relief.  This board shall consist of a competent physician 
 16.11  selected by the association and at least three members of the 
 16.12  relief association on active duty with the fire department. 
 16.13     Sec. 21.  [423C.21] [STATE AUDITOR TO EXAMINE BOOKS.] 
 16.14     The state auditor of this state shall, each year, examine 
 16.15  the books and accounts of the secretary and the treasurer of the 
 16.16  relief association.  If an examination discloses that any money 
 16.17  has been expended for purposes not authorized by this chapter, 
 16.18  the state auditor shall report the same to the governor, who 
 16.19  shall then direct the commissioner of finance not to issue any 
 16.20  further warrants to the association until the state auditor 
 16.21  reports that money unlawfully expended has been replaced.  The 
 16.22  governor may also take any further action as the emergency may 
 16.23  demand. 
 16.24     Sec 22.  [423C.22] [PAYMENTS EXEMPT FROM PROCESS.] 
 16.25     All payments made, or to be made, by the relief association 
 16.26  under any of the provisions of this chapter shall be totally 
 16.27  exempt from garnishment, execution, or other legal process, 
 16.28  except as provided in section 518.58, 518.581, or 518.611.  No 
 16.29  person entitled to a payment shall have the right to assign the 
 16.30  name, nor shall the association have authority to recognize any 
 16.31  assignment or to pay any sum on account thereof.  Any attempt to 
 16.32  transfer any right or claim, or any part thereof, shall be void. 
 16.33     Sec. 23.  [423C.23] [WORKERS' COMPENSATION ACT NOT 
 16.34  AFFECTED.] 
 16.35     This chapter shall not be construed as abridging, 
 16.36  repealing, or amending the laws of this state relating to the 
 17.1   provisions of the law commonly known as the workers' 
 17.2   compensation act. 
 17.3      Sec. 24.  [423C.24] [DISPOSITION OF ASSETS UPON CONCLUSION 
 17.4   OF BENEFIT PAYMENTS.] 
 17.5      Upon the death of the last benefit recipient and the 
 17.6   certification by the chief administrative officer of the city of 
 17.7   Minneapolis to the state auditor of the absence of any remaining 
 17.8   person with a benefit entitlement, the assets of the Minneapolis 
 17.9   fire department relief association or trust fund, whichever 
 17.10  applies, must revert to the city and may be used by the city 
 17.11  only for firefighting expenditure purposes. 
 17.12     Sec. 25.  [EFFECT ON ACCRUED BENEFITS AND BENEFITS 
 17.13  PAYABLE.] 
 17.14     (a) The legislature intends by this chapter to recodify the 
 17.15  prior local laws applicable to the Minneapolis fire department 
 17.16  relief association.  
 17.17     (b) This chapter is not intended to increase or reduce the 
 17.18  pensions or benefits currently payable to pension and benefit 
 17.19  recipients of the Minneapolis fire department relief 
 17.20  association.  All pensions and benefits payable from the 
 17.21  Minneapolis fire department relief association in force on the 
 17.22  effective date of this section as reflected in the records of 
 17.23  the relief association as of that date continue. 
 17.24     (c) This chapter is not intended to modify, impair, or 
 17.25  diminish the pension or benefit entitlements accrued or service 
 17.26  credited to active or deferred members of the Minneapolis fire 
 17.27  department relief association on the effective date of this 
 17.28  chapter as reflected in the records of the relief association as 
 17.29  of that date.  If the secretary of the relief association 
 17.30  determines that any provision of this chapter has the effect of 
 17.31  modifying, impairing, or diminishing the pension or benefit 
 17.32  entitlements that had been accrued or service had been credited 
 17.33  to an active or deferred relief association member, the 
 17.34  secretary shall certify that determination and a recommendation 
 17.35  as to the required legislative correction, if any, to the chairs 
 17.36  of the legislative commission on pensions and retirement, the 
 18.1   house governmental operations committee, the senate governmental 
 18.2   operations committee, and to the executive director of the 
 18.3   legislative commission on pensions and retirement. 
 18.4      Sec. 26.  [REPEALER.] 
 18.5      Laws 1907, chapter 24; Laws 1913, chapters 318; and 419; 
 18.6   Laws 1917, chapter 196; Laws 1919, chapters 515; and 523; Laws 
 18.7   1921, chapter 404; Laws 1923, chapter 61; Laws 1945, chapter 
 18.8   322; Laws 1959, chapters 213; 491; and 568; Laws 1961, chapter 
 18.9   109; Extra Session Laws 1961, chapter 3; Laws 1963, chapter 318; 
 18.10  Laws 1965, chapters 519; and 578; Laws 1967, chapters 819; and 
 18.11  824; Laws 1969, chapters 123; and 287; Laws 1971, chapter 542; 
 18.12  Laws 1975, chapter 57; Laws 1977, chapter 164, section 2; Laws 
 18.13  1980, chapter 607, article XV, sections 8, 9, and 10; Laws 1988, 
 18.14  chapters 572, sections 4, 5, and 6; and 574, sections 3, 4, and 
 18.15  5; Laws 1989, chapter 319, article 19, sections 6 and 7; Laws 
 18.16  1990, chapter 589, article 1, sections 5 and 6; Laws 1992, 
 18.17  chapters 429; 454, section 2; and 471, article 2; Laws 1993, 
 18.18  chapters 125; and 192, section 32; and Laws 1994, chapters 591; 
 18.19  and 632, article 3, section 14, are repealed.