1999 Minnesota Statutes

CHAPTER 423B. Minneapolis police pensions

     423B.01 Minneapolis police relief association; 
  definitions. 

    Subdivision 1.    Terms.  For purposes of sections 
 423B.01 to 423B.18, unless the context clearly indicates 
 otherwise, each of the terms defined in this section has the 
 indicated meaning. 

    Subd. 2.    Active member.  "Active member" means a 
 person who was hired and duly appointed by the city of 
 Minneapolis before May 1, 1959, as a police stenographer, police 
 clerk, police telephone operator, police radio operator, or 
 police mechanic or before June 15, 1980, as a police officer, 
 police matron, or assistant police matron, who is regularly 
 entered on the payroll of the police department, and who serves 
 on active duty. 

    Subd. 3.    Age.  "Age" means a person's age at the 
 person's latest birthday. 

    Subd. 4.    Annual postretirement payment.  "Annual 
 postretirement payment" means the payment of a lump sum 
 postretirement benefit under section 423B.15 to an eligible 
 member on June 1 following the determination date in any year. 

    Subd. 5.    Determination date.  "Determination date" 
 means December 31 of each year. 

    Subd. 6.    Disability.  "Disability" means a physical 
 or mental incapacity of an active member to perform the duties 
 of the person's position in the service of the police department.

    Subd. 7.    Discharge.  "Discharge" means a complete 
 separation from service in the police department. 

    Subd. 8.    Eligible member.  "Eligible member" means a 
 person, including a service pensioner, a disability pensioner, a 
 survivor, or dependent of a deceased active member, service 
 pensioner, or disability pensioner, who received a pension or 
 benefit from the relief association during the 12 months before 
 the determination date. 

    Subd. 9.    Excess investment income.  "Excess 
 investment income" means the amount, if any, by which the 
 average time weighted total rate of return earned by the 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 patrol officer in the most recent prior five fiscal 
 years plus two percent, and must be expressed as a dollar 
 amount.  The amount may not exceed one percent of the total 
 assets of the fund, except when the actuarial value of assets of 
 the 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 1-1/2 percent of the 
 total assets of the fund, and does not exist unless the yearly 
 average percentage increase of the time weighted total rate of 
 return of the fund for the previous five years exceeds by two 
 percent the yearly average percentage increase in monthly salary 
 of a first grade patrol officer during the previous five 
 calendar years. 

    Subd. 10.    Fund.  "Fund" means the special fund of the 
 relief association. 

    Subd. 11.    Retired member.  "Retired member" means a 
 former active member who has terminated active service in the 
 police department and who is entitled to receive a pension or 
 benefit under sections 423B.01 to 423B.18, as amended, or any 
 predecessor law. 

    Subd. 12.    Surviving spouse member.  "Surviving spouse 
 member" means the person who was the legally married spouse of 
 the member, who was residing with the decedent, and who was 
 married while or before the time the decedent was an active 
 member and was on the payroll of the police department, and who, 
 in case the deceased member was a pensioner or deferred 
 pensioner, was legally married to the member at least one year 
 before the decedent's termination of active service with the 
 police department.  The term does not include the surviving 
 spouse who has deserted a member or who has not been dependent 
 upon the member for support, nor does it include the surviving 
 common law spouse of a member. 

    Subd. 13.    Time weighted total rate of return.  "Time 
 weighted total rate of return" means the percentage amount 
 determined by using the formula or formulas established by the 
 state board of investment under section 11A.04, clause (11), and 
 in effect on January 1, 1987. 

    Subd. 14.    Unit.  "Unit" means one-eightieth of the 
 current monthly salary of a first grade patrol officer. 

    Subd. 15.    Actuarial equivalent.  "Actuarial 
 equivalent" or "actuarially equivalent" means the condition of 
 one annuity or benefit having an equal actuarial present value 
 as another annuity or benefit, determined as of a given date at 
 a specified age with each actuarial present value based on the 
 appropriate mortality table adopted by the board of directors 
 based on the experience of the fund and approved by the actuary 
 retained by the legislative commission on pensions and 
 retirement and using the applicable preretirement or 
 postretirement interest rate assumptions specified in section 
 356.216. 

    HIST: 1992 c 471 art 1 s 1; 1996 c 438 art 4 s 10; 1997 c 233 
 art 4 s 1,2 

  423B.02 Repealed, 1995 c 262 art 10 s 7 

     423B.03 Leave of absence; continuation of membership. 

    Subdivision 1.    Leave of absence.  A member of the 
 police department who is an active member of the police relief 
 association of the city of Minneapolis and who after January 1, 
 1969, is elected to a public office of the city may apply for 
 and must be granted a leave of absence from the police 
 department during the time the person is an incumbent of the 
 elective public office of the city. 

    Subd. 2.    Continuation of membership.  Upon obtaining 
 a leave of absence provided in subdivision 1, a member with ten 
 or more years of service in the police department and the police 
 relief association has the option to continue active membership 
 in the police relief association of the city of Minneapolis.  
 This option applies to future service as well as past service.  
 The member desiring to exercise this option must make 
 application to the governing body of the association, must 
 designate the period of service for which the person desires 
 coverage, and must pay the employee contribution to the police 
 relief association to the same extent that the member would have 
 paid had the person been on active duty with the police 
 department during that period. 

    Subd. 3.    No simultaneous coverage.  A payment into 
 the pension fund as provided in subdivision 2 may not be made or 
 accepted and pension credit may not be allowed for any period of 
 time for which the member pays into or earns pension credit from 
 any other Minnesota pension plan for public employees. 

    Subd. 4.    Waiver of other rights.  A qualified member 
 who exercises the option provided in subdivision 2 and is at 
 that time a contributing member of another retirement fund or 
 relief association by whatever name known, organized under any 
 other law, and supported in whole or in part by the taxes on the 
 same city, shall waive all benefits from the other retirement 
 fund or relief association, for concurrent time, and shall be 
 entitled to receive a refund of the net accumulated 
 contributions made by the member to the other retirement fund or 
 relief association, with interest, regardless of the provision 
 of any law, rule, bylaw, or other action permitting or requiring 
 membership in the other retirement fund or relief association, 
 however organized. 

    HIST: 1992 c 471 art 1 s 3 

     423B.04 Relief association and retirement fund. 

    Subdivision 1.    Relief association.  The active and 
 retired members of the police department of the city of 
 Minneapolis and their surviving spouses shall maintain the 
 Minneapolis police relief association. 

    Subd. 2.    Pension fund.  This association shall 
 create, maintain, and administer a police officer's pension fund 
 for the benefit of its members, and their survivors and 
 beneficiaries.  The sources of revenue of the fund are governed 
 by section 423B.06.  The authorized disbursements from the fund 
 are governed by section 423B.07. 

    Subd. 3.    Membership.  All members as defined in 
 section 423B.01 are members of the Minneapolis police relief 
 association. 

    Subd. 4.    Management of relief association and fund.  
 The board created in section 423B.05 shall manage and control 
 the fund. 

    HIST: 1992 c 471 art 1 s 4 

     423B.05 Incorporation, government by board. 

    Subdivision 1.    Members, terms, elections.  The 
 association must be incorporated.  It must be governed by a 
 board of nine members.  The Minneapolis city council shall 
 appoint two persons to serve as members.  Those members must be 
 appointed for a term of two years.  All city appointments are 
 effective from January 1 in the odd-numbered years through 
 December 31 in the even-numbered years.  The other members of 
 the board must be elected by the members of the association.  
 Board members elected from the active membership have a term of 
 five years.  Board members elected from the retired or surviving 
 spouse membership must have a term of three years.  An elective 
 member of the board holds office until the person's successor is 
 elected and has qualified.  A vacancy in the office of an 
 elective member of the board must be filled by a special 
 election called for that purpose.  There are three classes of 
 board members, consisting of a class comprised of active board 
 members, a class comprised of retired board members, and a class 
 comprised of surviving spouse board members.  Active members of 
 the relief association may only vote for active board member 
 positions.  Retired members of the relief association may only 
 vote for retired board member positions.  Surviving spouse 
 members of the relief association may only vote for the 
 surviving spouse board member positions.  Once established, a 
 retired board member position and a surviving spouse board 
 member position must remain as such. 

    In 1994, for the election for board member seat G, the 
 board member position must be filled by a surviving spouse 
 member.  In 1995, for the regular election for board member seat 
 C, previously held by an active member, the board member 
 position must be filled by a retired member.  In 1999, for the 
 regular election for board member seat B, previously held by an 
 active member, the board member position must be filled by a 
 retired member.  

    The following sets forth the schedule for the election of 
 the seven elected board member positions on the Minneapolis 
 police relief association board: 

         Active board     Retired board      Surviving spouse 

        member position  member position   board member position

  Year   five-year term   three-year term     three-year term

  1992                    seat C                  

  1993    seat A          seat E                        

  1994    seat B          seat F              seat G   

  1995                    seats C and D           

  1996                    seat E 

  1997                    seat F              seat G 

  1998    seat A          seats C and D  

  1999                    seats B and E  

  2000                    seat F              seat G 

  2001                    seats C and D  

  2002                    seats B and E  

  2003    seat A          seat F              seat G  

  2004                    seats C and D  

  2005                    seats B and E  

  2006                    seat F              seat G  

  2007                    seats C and D  

  2008    seat A          seats B and E  

  2009                    seat F              seat G  

  2010                    seats C and D  

    As long as there remains at least one active member on 
 active duty with the Minneapolis police department, there must 
 be a member of the board of directors from the active ranks in 
 accordance with the election procedures outlined in this section.

    Subd. 2.    Articles of incorporation.  The affairs of 
 the association must be regulated by its articles of 
 incorporation and bylaws. 

    Subd. 3.    Continuation of board.  Notwithstanding the 
 provisions of section 423A.01, subdivision 2, or any other law, 
 the board of trustees and its successors established under 
 subdivision 1 shall continue to govern the association until 
 there are no more than 100 members of the police pension fund.  
 The fund thereafter must become a trust fund in accordance with 
 section 423A.01, subdivision 2. 

    HIST: 1992 c 471 art 1 s 5 

     423B.06 Source of funds. 

    Subdivision 1.    Sources.  The fund is derived from the 
 following sources: 

    (1) gifts provided to the fund; 

    (2) rewards received by members of the Minneapolis police 
 department; 

    (3) money coming into the hands of members of the 
 Minneapolis police department in their official capacity and 
 remaining unclaimed for six months; 

    (4) proceeds from sales of property coming into the hands 
 of members of the Minneapolis police department in their 
 official capacity and remaining unclaimed for six months, upon 
 sale by the chief of police of the city; 

    (5) an amount equal to the minimum percentage specified in 
 section 69.77, subdivision 2a, of the salary of a first grade 
 patrol officer deducted from the monthly salary of each active 
 member; 

    (6) all money derived from taxation as provided by sections 
 69.77, subdivisions 2b, 2c, 2d, 2e, and 2f; and 423A.01, 
 subdivision 2; 

    (7) all money received from the state amortization aid 
 programs under section 423A.02, to fund the unfunded actuarial 
 accrued liability of the association; 

    (8) all money received from the state under chapter 69, as 
 state police aid; 

    (9) all money provided by the state for the association in 
 addition to clauses (7) and (8); 

    (10) all money derived from taxation by the municipality 
 for the support of the association and the payment of pensions; 
 and 

    (11) money from the investment of, earnings on, and 
 interest on the assets of the fund. 

    Subd. 1a.    Sales of unclaimed property.  The chief of 
 police of the city shall sell property coming into the hands of 
 members of the Minneapolis police department in their official 
 capacity and remaining unclaimed for six months.  

    Subd. 2.    Continuation of assets.  Assets remaining in 
 the fund at the close of a fiscal year continue. 

    Subd. 3.    Tax levy limits inapplicable.  (a) The 
 amount of tax levies required under sections 69.77, and 423A.01, 
 subdivision 2, must not be included as a part of the general tax 
 levy for city purposes or in the calculation of any limitation 
 of any percent of the assessed valuation upon which taxes are 
 required to be extended. 

    (b) Any appropriation made to the fund from a city tax levy 
 must not be considered a part of the cost of government as 
 defined in the charter of the city. 

    Subd. 4.    Impact on other laws.  No provision of Laws 
 1992, chapter 471, may be construed as reducing the amount or 
 rate of contribution to the association by the municipality or a 
 member of the association from the minimum contributions 
 prescribed by section 69.77. 

    Subd. 5.    Tax levy.  Notwithstanding any provision of 
 section 69.77 to the contrary, if in any year after the 
 actuarial value of assets of the 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 the 
 actuarial accrued liabilities of the fund and subsequently the 
 actuarial value of assets are less than 100 percent of the 
 actuarial accrued liabilities, the city of Minneapolis is not 
 required to levy a property tax to amortize any unfunded 
 actuarial accrued liability unless the fund experiences two 
 successive years when the actuarial value of assets are less 
 than 100 percent of the actuarial accrued liabilities according 
 to the most recent annual actuarial valuation prepared in 
 accordance with sections 356.215 and 356.216. 

    HIST: 1992 c 471 art 1 s 6; 1997 c 233 art 4 s 3; 1997 c 241 
 art 9 s 2,3 

     423B.07 Authorized fund disbursements. 

    The police pension fund may be used only for the payment of:

    (1) service, disability, or dependency pensions; 

    (2) notwithstanding a contrary provision of section 69.80, 
 the salaries of the elected members of the board of trustees in 
 an amount not to exceed three units; 

    (3) expenses of officers and employees of the association 
 in connection with the protection of the fund; 

    (4) expenses of operating and maintaining the association, 
 including the administrative expenses related to the 
 administration of the insurance plan authorized in section 
 423B.08; and 

    (5) other expenses authorized by section 69.80, or other 
 applicable law. 

    HIST: 1992 c 471 art 1 s 7; 1997 c 233 art 4 s 4; 1999 c 222 
 art 6 s 1 

     423B.08 Insurance plan. 

    The board of the association may adopt a hospital and 
 medical insurance plan for pension and benefit recipients, to be 
 funded by the participating pension and benefit recipients.  A 
 pensioner or surviving spouse may authorize, in writing, a 
 deduction from the person's pension or benefit for the insurance 
 plan adopted by the association board. 

    HIST: 1992 c 471 art 1 s 8 

     423B.09 Relief association service pensions and 
  disability pensions. 

    Subdivision 1.    Minneapolis police; persons entitled to 
 receive pensions.  The association shall grant pensions 
 payable from the police pension fund in monthly installments to 
 persons entitled to pensions in the manner and for the following 
 purposes. 

    (a) When the actuarial value of assets of the fund 
 according to the most recent annual actuarial valuation 
 performed in accordance with sections 356.215 and 356.216 is 
 less than 90 percent of the actuarial accrued liabilities, an 
 active member or a deferred pensioner who has performed duty as 
 a member of the police department of the city for five years or 
 more, upon written application after retiring from duty and 
 reaching at least age 50, is entitled to be paid monthly for 
 life a service pension equal to eight units.  For full years of 
 service beyond five years, the service pension increases by 1.6 
 units for each full year, to a maximum of 40 units.  When the 
 actuarial value of assets of the fund according to the most 
 recent annual actuarial valuation prepared in accordance with 
 sections 356.215 and 356.216 is greater than 90 percent of 
 actuarial accrued liabilities, active members, deferred members, 
 and service pensioners are entitled to a service pension 
 according to the following schedule: 

                5 years           8.0 units
                6 years           9.6 units
                7 years          11.2 units
                8 years          12.8 units
                9 years          14.4 units
               10 years          16.0 units
               11 years          17.6 units
               12 years          19.2 units
               13 years          20.8 units
               14 years          22.4 units
               15 years          24.0 units
               16 years          25.6 units
               17 years          27.2 units
               18 years          28.8 units
               19 years          30.4 units
               20 years          34.0 units
               21 years          35.6 units
               22 years          37.2 units
               23 years          38.8 units
               24 years          40.4 units
               25 years          42.0 units

    Fractional years of service may not be used in computing 
 pensions. 

    (b) An active member who after five years' service but less 
 than 20 years' service with the police department of the city, 
 becomes superannuated so as to be permanently unable to perform 
 the person's assigned duties, is entitled to be paid monthly for 
 life a superannuation pension equal to four units for five years 
 of service and an additional two units for each full year of 
 service over five years and less than 20 years. 

    (c) An active member who is not eligible for a service 
 pension and who, while a member of the police department of the 
 city, becomes diseased or sustains an injury while in the 
 service that permanently unfits the member for the performance 
 of police duties is entitled to be paid monthly for life a 
 pension equal to 34 units while so disabled. 

    Subd. 2.    Death refund.  No refund of member 
 contributions is payable upon separation from service.  If an 
 active member dies leaving no surviving spouse or children 
 entitled to survivor benefits, the member's heirs, executors, or 
 administrators are entitled to a refund of $100 for each 
 completed year of service. 

    Subd. 3.    Service in military forces, effect.  (a) An 
 applicant for a pension under subdivision 1, paragraph (a) or 
 (b), who, after becoming an active member has served in the 
 military forces of the United States in a war or national 
 defense emergency after January 1, 1940, and thereafter returned 
 honorably discharged from military service and resumed active 
 membership in the association, is entitled to have the period 
 that the applicant spent in military service counted in 
 computing periods of service required for benefits under this 
 section, but the total credit for military service involving 
 service rendered after June 1, 1963, may not exceed six years. 

    (b) During the period of military service or defense 
 emergency service, the person is not considered to be an active 
 member of the association and is not entitled to any pension 
 provided by subdivision 1, paragraphs (b) and (c). 

    (c) If the member does not return to employment in the 
 police department of the city within one year from the time 
 peace is declared or within one year from the termination of the 
 period of emergency, whichever is later, the provisions of this 
 subdivision do not apply. 

    (d) The provisions of this subdivision apply 
 notwithstanding the provisions of the veteran's preference law 
 or any other law, rule, or bylaw providing for credit for 
 military service in computing the pensions for members of the 
 Minneapolis police relief association. 

    Subd. 4.    Certificate of physicians required.  No 
 member is entitled to a pension under subdivision 1, paragraph 
 (b) or (c), except upon the certificate of two or more 
 physicians or surgeons chosen by the governing board.  This 
 certificate must set forth the cause, nature, and extent of the 
 disability, disease, or injury of the member.  No active member 
 may be awarded, granted, or paid a disability pension under 
 subdivision 1, paragraph (c), unless the certificate states that 
 the disability, disease, or injury was incurred or sustained by 
 the member while in the service of the police department of the 
 city.  The certificate must be filed with the secretary of the 
 association. 

    Subd. 5.    Member convicted of felony.  A member who 
 has been convicted of a felony is not entitled to any pension 
 during the period of incarceration in a penal institution as a 
 punishment for the commission of a felony. 

    Subd. 6.    Optional annuities.  A member who is retired 
 or disabled on the effective date of Laws 1997, chapter 233, 
 article 4, section 6, may elect an optional retirement annuity 
 within 60 days of the effective date of Laws 1997, chapter 233, 
 article 4, section 6, instead of the normal retirement annuity.  
 A member who retires or becomes disabled after the effective 
 date of Laws 1997, chapter 233, article 4, section 6, may elect 
 an optional retirement annuity prior to the receipt of any 
 benefits.  The optional retirement annuity may be a 50 percent, 
 a 75 percent, or a 100 percent joint and survivor annuity 
 without reinstatement in the event of the designated beneficiary 
 predeceasing the member or a 50 percent, a 75 percent, or a 100 
 percent joint and survivor annuity with reinstatement in the 
 event of the designated beneficiary predeceasing the member.  
 Optional retirement annuity forms must be actuarially equivalent 
 to the service pension and automatic survivor coverage otherwise 
 payable to the retiring member and the member's beneficiaries.  
 Once selected, the optional annuity is irrevocable. 

    HIST: 1992 c 471 art 1 s 9; 1994 c 590 art 1 s 1; 1997 c 233 
 art 4 s 5,6 

     423B.10 Survivor benefits. 

    Subdivision 1.    Entitlement; benefit amount.  (a) The 
 surviving spouse of a deceased service pensioner, disability 
 pensioner, deferred pensioner, superannuation pensioner, or 
 active member, who was the legally married spouse of the 
 decedent, residing with the decedent, and who was married while 
 or before the time the decedent was on the payroll of the police 
 department, and who, if the deceased member was a service or 
 deferred pensioner, was legally married to the member for a 
 period of at least one year before retirement from the police 
 department, is entitled to a surviving spouse benefit.  The 
 surviving spouse benefit is equal to 22 units per month if the 
 person is the surviving spouse of a deceased active member or 
 disabilitant.  The surviving spouse benefit is equal to six 
 units per month, plus an additional one unit for each year of 
 service to the credit of the decedent in excess of five years, 
 to a maximum of 22 units per month, if the person is the 
 surviving spouse of a deceased service pensioner, deferred 
 pensioner, or superannuation pensioner.  The surviving spouse 
 benefit is payable for the life of the surviving spouse. 

    (b) A surviving child of a deceased service pensioner, 
 disability pensioner, deferred pensioner, superannuation 
 pensioner, or active member, who was living while the decedent 
 was an active member of the police department or was born within 
 nine months after the decedent terminated active service in the 
 police department, is entitled to a surviving child benefit.  
 The surviving child benefit is equal to eight units per month if 
 the person is the surviving child of a deceased active member or 
 disabilitant.  The surviving child benefit is equal to two units 
 per month, plus an additional four-tenths of one unit per month 
 for each year of service to the credit of the decedent in excess 
 of five years, to a maximum of eight units, if the person is the 
 surviving child of a deceased service pensioner, deferred 
 pensioner, or superannuation pensioner.  The surviving child 
 benefit is payable until the person attains age 18, or, if in 
 full-time attendance during the normal school year, in a school 
 approved by the board of directors, until the person receives a 
 bachelor's degree or attains the age of 22 years, whichever 
 occurs first.  In the event of the death of both parents leaving 
 a surviving child or children entitled to a surviving child 
 benefit as determined in this paragraph, the surviving child is, 
 or the surviving children are, entitled to a surviving child 
 benefit in such sums as determined by the board of directors to 
 be necessary for the care and education of such surviving child 
 or children, but not to exceed the family maximum benefit per 
 month, to the children of any one family.  

    (c) The surviving spouse and surviving child benefits are 
 subject to a family maximum benefit.  The family maximum benefit 
 is 41 units per month. 

    (d) A surviving spouse who is otherwise not qualified may 
 receive a benefit if the surviving spouse was married to the 
 decedent for a period of five years and was residing with the 
 decedent at the time of death.  The surviving spouse benefit is 
 the same as that provided in paragraph (a), 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 age or a 
 greater age than the member's age before retirement. 

    Subd. 2.    Survivor benefit coverage for a member 
 convicted of a felony.  The surviving spouse or a surviving 
 child of a deceased member who was convicted of a felony may not 
 be deprived of a survivor benefit by reason of the conviction 
 unless the person was a party to the commission of the felony.  
 For a member who is receiving a pension at the time of 
 conviction, a survivor who was not a party to the commission of 
 the felony remains entitled to receive the survivor benefit 
 provided for in subdivision 1, in the event of the member's 
 death. 

    HIST: 1992 c 471 art 1 s 10; 1993 c 124 art 1 s 2; 1997 c 233 
 art 4 s 7 

     423B.11 Temporary disability benefits. 

    An active member who becomes disabled from performing 
 duties as an active member of the police department of the city 
 by reason of sickness or accident, who is off the payroll of the 
 police department, and who has exhausted all accumulated 
 vacation, overtime, and sick leave credits due to the member, is 
 entitled to receive from the association temporary disability 
 benefits in an amount as the bylaws of the association provide 
 during the disability period.  The temporary disability benefits 
 may not extend beyond a six-month period except when an active 
 member is disabled because of an injury sustained while on duty 
 and then benefits may extend for an indefinite time during the 
 existence of the disability.  The bylaws may provide that an 
 active member must have completed a minimum number of years of 
 service in order to be entitled to temporary disability 
 benefits.  Before temporary disability benefits may be paid or 
 allowed, notice of the disability and application for benefits 
 on account of the disability must be made to the secretary of 
 the association within 90 days after the sickness or disability. 

    The bylaws may provide that an active member's periods of 
 disability up to one year may be included in computing the 
 member's total years of service for pension entitlement and 
 benefit calculation purposes. 

    HIST: 1992 c 471 art 1 s 11 

     423B.12 Mandatory retirement; consequence of continued 
  active membership. 

    Subject only to the provisions of section 423.075, an 
 active member must retire upon attaining age 65, and upon 
 attaining age 65 must cease to be an active member of the 
 association.  An active member who knowingly fails or refuses to 
 comply with this section thereby renders the person and the 
 person's survivors ineligible for any pension or benefits 
 provided under sections 423B.01 to 423B.18, as amended.  A 
 person who has ceased to be an active member of the association 
 or has knowingly failed or refused to retire, is entitled only 
 for the refund in an amount equal to $100 per year of service 
 credit, payable in a lump sum. 

    HIST: 1992 c 471 art 1 s 12; 1994 c 465 art 2 s 20 

     423B.13 Health and welfare benefit. 

    Notwithstanding any law to the contrary, a person who, 
 after July 1, 1980, retires on a service pension with at least 
 20 years of service or a permanent disability benefit from the 
 relief association is entitled on January 1, 1981, or upon the 
 date of retirement, whichever occurs later, to receive a monthly 
 health and welfare benefit.  The monthly health and welfare 
 benefit is an amount equal to one unit.  The monthly health and 
 welfare benefit is payable to the retired member unless the 
 retired member designates in writing that the amount be paid to 
 an insurance carrier to defray the cost of any health or welfare 
 related insurance coverage. 

    HIST: 1992 c 471 art 1 s 13 

     423B.14 Health insurance account. 

    (a) Notwithstanding any law to the contrary, contributions 
 of active members of the relief association with at least 25 
 years of service made after the 25th year of service must be 
 deposited in a separate account and used to pay the future 
 health insurance costs of the individual member upon that 
 member's retirement. 

    (b) A member who retires with at least 25 years of service 
 is entitled to receive periodic distributions from the remaining 
 balance in the member's health insurance account, in the amount 
 and with the frequency specified by the retiring member in 
 conformance with rules adopted by the board of trustees for this 
 purpose. 

    HIST: 1992 c 471 art 1 s 14 

     423B.15 Investment related postretirement adjustments. 

    Subdivision 1.    Annual postretirement payment 
 authorized.  Notwithstanding the provisions of chapter 69, or 
 any other law to the contrary, the relief association may 
 provide annual postretirement payments to eligible members under 
 this section. 

    Subd. 2.    Determination of excess investment income.  
 The board of trustees of the relief association shall determine 
 by May 1 of each year whether or not the fund has excess 
 investment income.  The amount of excess investment income, if 
 any, must be stated as a dollar amount and reported by the chief 
 administrative officer of the relief association to the mayor 
 and governing body of the city, the state auditor, the 
 commissioner of finance, and the executive director of the 
 legislative commission on pensions and retirement.  The dollar 
 amount of excess investment income up to one percent of the 
 assets of the fund, except when the actuarial value of assets of 
 the 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 may not exceed 1-1/2 percent of the assets 
 of the fund, must be applied for the purpose specified in 
 subdivision 3.  Excess investment income must not be considered 
 as income to or assets of the fund for actuarial valuations of 
 the fund for that year under sections 69.77, 356.215, and 
 356.216 and the provisions of this section except to offset the 
 annual postretirement payment.  Additional investment income is 
 any realized or unrealized investment income other than the 
 excess investment income and must be included in the actuarial 
 valuations performed under sections 69.77, 356.215, and 356.216 
 and the provisions of this section. 

    Subd. 3.    Amount of annual postretirement payment.  
 The amount determined under subdivision 2 must be applied in 
 accordance with this subdivision.  When the actuarial value of 
 assets of the fund according to the most recent annual actuarial 
 valuation prepared in accordance with sections 356.215 and 
 356.216 is less than 102 percent of its total actuarial 
 liabilities, the relief association shall apply the first 
 one-half of excess investment income to the payment of an annual 
 postretirement payment as specified in this subdivision and the 
 second one-half of excess investment income up to one-half of 
 one percent of the assets of the fund must be applied to reduce 
 the state amortization state aid or supplementary amortization 
 state aid payments otherwise due to the relief association under 
 section 423A.02 for the current calendar year.  When the 
 actuarial value of assets of the fund according to the most 
 recent annual actuarial valuation prepared in accordance with 
 sections 356.215 and 356.216 is less than 102 percent funded and 
 other conditions are met, the relief association shall pay an 
 annual postretirement payment to all eligible members in an 
 amount not to exceed one-half of one percent of the assets of 
 the fund.  When the actuarial value of assets of the 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, the relief 
 association shall pay an annual postretirement payment to all 
 eligible members in an amount not to exceed 1-1/2 percent of the 
 assets of the fund.  Payment of the annual postretirement 
 payment must be in a lump sum amount on June 1 following the 
 determination date in any year.  Payment of the annual 
 postretirement payment may be made only if the average time 
 weighted total rate of return for the most recent prior five 
 years exceeds by two percent the actual average percentage 
 increase in the current monthly salary of a top grade patrol 
 officer in the most recent prior five fiscal years.  The total 
 amount of all payments to members may not exceed the amount 
 determined under this subdivision.  Payment to each eligible 
 member must be calculated by dividing the total number of 
 pension units to which eligible members are entitled into the 
 excess investment income available for distribution to members, 
 and then multiplying that result by the number of units to which 
 each eligible member is entitled to determine each eligible 
 member's annual postretirement payment.  When the actuarial 
 value of assets of the fund according to the most recent annual 
 actuarial valuation prepared in accordance with sections 356.215 
 and 356.216 is less than 102 percent of its actuarial accrued 
 liabilities, payment to each eligible member may not exceed an 
 amount equal to the total monthly benefit that the eligible 
 member was entitled to in the prior year under the terms of the 
 benefit plan of the relief association or each eligible member's 
 proportionate share of the excess investment income, whichever 
 is less.  When the actuarial value of assets of the 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, payment to 
 each eligible member must not exceed the member's proportionate 
 share of 1-1/2 percent of the assets of the fund. 

    A person who received a pension or benefit for the entire 
 12 months before the determination date is eligible for a full 
 annual postretirement payment.  A person who received a pension 
 or benefit for less than 12 months before the determination date 
 is eligible for a prorated annual postretirement payment. 

    Subd. 4.    Annual postretirement payment in the event of 
 death.  In the event an eligible member dies after the 
 determination date and before the payment of the annual 
 postretirement payment, the chief administrative officer of the 
 relief association shall pay that eligible member's estate the 
 amount of the postretirement payment to which the eligible 
 member was entitled. 

    Subd. 5.    Report on annual postretirement payment.  
 The chief administrative officer of the relief association shall 
 prepare a report on the amount of all postretirement payments 
 made under this section and the manner in which those payments 
 were determined.  That report must be submitted to the state 
 auditor, the executive director of the legislative commission on 
 pensions and retirement, and the city clerk of the city. 

    Subd. 6.    No guarantee of annual postretirement payment. 
  No provision of or payment made under this section may be 
 interpreted or relied upon by any member of the relief 
 association to guarantee or entitle a member to annual 
 postretirement payments for a period when no excess investment 
 income is earned by the fund.  If the actuarial value of assets 
 of the fund according to the most recent annual actuarial 
 valuation prepared in accordance with sections 356.215 and 
 356.216 is less than 102 percent of its actuarial accrued 
 liabilities, the distribution of assets under this section must 
 not exceed one-half of one percent. 

    Subd. 7.    Annual actuarial valuation date.  
 Notwithstanding any provision of section 69.77, subdivision 2h, 
 356.215, or 356.216 to the contrary, the annual actuarial 
 valuation of the fund must be completed by May 1 of each year. 

    HIST: 1992 c 471 art 1 s 15; 1996 c 438 art 4 s 11; 1997 c 233 
 art 4 s 8-11 

     423B.16 Suit for benefits; bonds. 

    No person may sue for any pensions or benefits provided 
 from the special fund of the relief association under sections 
 423B.01 to 423B.18, as amended, unless the person applying for a 
 pension or benefit first posts a bond from a surety company 
 competent to undertake the business in a sufficient amount to 
 defray the expense of the governing board of defending the 
 action.  In the event that the governing board is sustained, the 
 portion of the bond necessary to defray these expenses is 
 forfeited to the relief association. 

    HIST: 1992 c 471 art 1 s 16 

     423B.17 Payments exempt from process. 

    A payment made by the association under a provision of 
 sections 423B.01 to 423B.18, as amended, is exempt from legal 
 process except as provided in section 518.58, 518.581, or 
 518.6111.  No person entitled to a payment may assign the same.  
 The association may not recognize an assignment or pay a sum on 
 account of an assignment. 

    HIST: 1992 c 471 art 1 s 17; 1997 c 203 art 6 s 92 

     423B.18 Disposition of assets upon conclusion of benefit 
  payments. 

    Upon the death of the last benefit recipient and the 
 certification by the chief administrative officer of the city of 
 Minneapolis to the state auditor of the absence of any remaining 
 person with a benefit entitlement, the assets of the relief 
 association or trust fund, whichever applies, reverts to the 
 city and may be used by the city only for law enforcement 
 expenditure purposes. 

    HIST: 1992 c 471 art 1 s 18