2005 Minnesota Statutes

CHAPTER 423C. Minneapolis firefighters relief association

     423C.01 Minneapolis Firefighters Relief Association; 
  definitions. 

    Subdivision 1.    Terms.  For purposes of this chapter, 
 unless the context clearly indicates otherwise, the terms 
 defined in this section have the meanings given them. 

    Subd. 2.    Active member.  "Active member" means a 
 person who was hired and duly appointed by the city of 
 Minneapolis before June 15, 1980, as a firefighter who is 
 regularly entered on the fire department payroll and who serves 
 on active duty. 

    Subd. 3.    Active member percentage.  "Active member 
 percentage" means the total number of units accrued by active 
 members divided by the sum of the total number of units to which 
 eligible members are entitled and active members have accrued. 

    Subd. 4.    Actuarial equivalent or actuarially 
 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 based on the experience of the special 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. 

    Subd. 5.    Age.  "Age" means a person's age at the 
 person's latest birthday. 

    Subd. 6.    Annual postretirement adjustment.  "Annual 
 postretirement adjustment" means the payment of a lump-sum, 
 postretirement benefit pursuant to section 423C.06, subdivision 
 1, to an eligible member on June 1 following the determination 
 date in any year. 

    Subd. 7.    Association.  "Association" means the 
 Minneapolis Firefighters Relief Association.  

    Subd. 8.    Board.  "Board" means the board established 
 in section 423C.03 to govern the association. 

    Subd. 9.    City.  "City" means the city of Minneapolis. 

    Subd. 10.    Deferred member.  "Deferred member" means a 
 person who served on active duty and was regularly entered on 
 the fire department payroll and separated from active service 
 prior to attaining 50 years of age and is entitled to receive a 
 service pension upon reaching age 50 under the law existing at 
 the time the member separated from active service for at least 
 five years. 

    Subd. 11.    Dependent.  "Dependent" means: 

    (1) a biological or adopted child of a deceased, active, or 
 retired member who is unmarried and under the age of 18; 

    (2) a biological or adopted child of a deceased, active, or 
 retired member who is between the ages of 18 and 22 and is 
 enrolled full time at an accredited educational institution 
 approved by the board; or 

    (3) a biological child of an active or retired member 
 conceived during the active or retired member's lifetime and 
 born after the active or retired member's death. 

    Subd. 12.    Determination date.  "Determination date" 
 means December 31 of each year. 

    Subd. 13.    Disability.  "Disability" has the meaning 
 specified in the bylaws of the relief association on April 1, 
 2001. 

    Subd. 14.    Discharge.  "Discharge" means a complete 
 separation from and termination of active service as a member of 
 the fire department. 

    Subd. 15.    Eligible member.  "Eligible member" means: 

    (1) for purposes of section 423C.06, subdivision 1, 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.  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; and 

    (2) for purposes of section 423C.06, subdivision 4, a 
 person who receives a service, survivor, or disability pension 
 payable from the special fund of the association. 

    Subd. 16.    Enrolled full time.  "Enrolled full time" 
 means the situation of an individual who is in full-time 
 attendance as a student at an educational institution, as 
 determined by the board of trustees of the relief association in 
 light of the standards and practices of the school involved.  A 
 person who is paid by the person's employer while attending 
 school at the request of that employer may not be considered to 
 be a full-time student.  A person may be considered a full-time 
 student during a period of up to four months of nonattendance 
 during any 12-month period if the person shows to the 
 satisfaction of the board of trustees that the person intends to 
 continue in full-time school attendance immediately upon the 
 conclusion of the nonattendance period. 

    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 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.  

    Subd. 18.    Fire department.  "Fire department" means 
 the Minneapolis Fire Department. 

    Subd. 19.    Fund.  "Fund" means the special fund of the 
 relief association. 

    Subd. 20.    Net excess asset amount payment.  "Net 
 excess asset amount payment" means the payment of an additional 
 postretirement payment under section 423C.06, subdivision 4, to 
 an eligible member on June 1 following the determination date in 
 the given year. 

    Subd. 21.    Net total excess asset amount.  "Net total 
 excess asset amount" means the total excess asset amount stated 
 in dollars and multiplied by one minus the active member 
 percentage. 

    Subd. 22.    Period of service.  "Period of service" 
 means: 

    (1) any service rendered by a firefighter for any calendar 
 month when the member receives salary from which deductions are 
 made, deposited, and credited to the special fund.  Leaves of 
 absence of more than 90 days, except those granted because of 
 disability due to sickness or accident or to enable a member to 
 accept an appointive position in the fire department, shall be 
 excluded in computing a member's period of service; 

    (2) any period in which the member, after entering the fire 
 department, leaves to enter the military forces of the United 
 States in a time of war or national emergency and subsequently 
 receives an honorable discharge from the military or leaves to 
 render fire prevention services to the United States government 
 in a time of war or national emergency, provided the member who 
 serves either applies for reinstatement in or resumes active 
 duty in the fire department within six months.  During any 
 period of military or fire prevention service, the individual 
 shall not be considered an active member.  Any period of service 
 a member qualifies for under this clause is limited as follows: 

    (i) credit shall be granted for service rendered subsequent 
 to July 1, 1961, but the credit shall not exceed six calendar 
 years; 

    (ii) no credit shall be granted for service rendered 
 subsequent to July 1, 1961, if the period of service rendered 
 prior to July 1, 1961, equals or exceeds six calendar years; and 

    (iii) if the period of service prior to July 1, 1961, is 
 less than six calendar years, credit for service subsequent to 
 July 1, 1961, shall be added to the prior service, but in no 
 case shall total service credit exceed six calendar years. 

    Subd. 23.    Retired member.  "Retired member" means a 
 former active member who has terminated active service with the 
 fire department and is entitled to receive a pension or benefit 
 under this chapter or any predecessor law. 

    Subd. 24.    Relief association.  "Relief association" 
 means the Minneapolis Firefighters Relief Association. 

    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; and 

    (2) in the event the person was married to a retired or 
 deferred member, married to that retired or deferred member for 
 at least one year prior to the member's discharge from the fire 
 department. 

    Subd. 26.    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. 27.    Total excess asset amount.  (a) "Total 
 excess asset amount" means the difference, if positive, 
 expressed in dollars, between the special fund's market value of 
 assets after any deductions required by section 423C.06, 
 subdivision 3, and 110 percent of the actuarial accrued 
 liabilities based on the actuarial valuation indicated in 
 paragraph (b). 

    (b) The total excess asset amount in paragraph (a) exists 
 if the actuarial liability funding ratio, according to the most 
 recent annual actuarial valuation of the special fund prepared 
 in accordance with sections 69.77, 356.215, and 356.216, with 
 adjustments required by section 423C.06, subdivision 3, equals 
 or exceeds 110 percent. 

    Subd. 28.    Unit.  "Unit" means 1/80 of the maximum 
 monthly salary of a first grade firefighter on the first day of 
 the month in which the pension benefits provided by this chapter 
 are paid. 

    Subd. 29.    Covered salary.  "Salary" is subject to the 
 limitations of section 356.611. 

    HIST: 1Sp2001 c 10 art 15 s 1; 2002 c 231 s 1,2; 1Sp2005 c 8 
 art 1 s 29 

     423C.02 Minneapolis Firefighters Relief Association. 

    Subdivision 1.    Creation.  The active and retired 
 members of the fire department and their surviving spouses shall 
 maintain the association.  The association shall be duly 
 incorporated under chapter 317A.  The corporation shall have 
 perpetual corporate existence.  The association shall create, 
 maintain, and administer those funds and accounts as set forth 
 in section 423C.04 for the benefit of its members, surviving 
 spouses, and dependents.  The sources of revenue for each fund 
 and account are governed by section 423C.04.  The authorized 
 disbursements from each fund and account are governed by 
 sections 423C.04, 423C.05, and 423C.06. 

    Subd. 2.    Membership.  Active members, deferred 
 members, retired members, and surviving spouse members as 
 defined in section 423C.01 are members of the association. 

    Subd. 3.    Management of association.  The board 
 created in section 423C.03 shall manage, control, and operate 
 the association, including the funds and accounts set forth in 
 section 423C.04, according to this chapter, other applicable 
 law, and the association's articles of incorporation and its 
 bylaws.  Notwithstanding section 423A.01, subdivision 2, or any 
 other law to the contrary, the board shall continue to govern 
 the association until there are fewer than 100 members receiving 
 benefits under this chapter.  Thereafter, the special fund shall 
 become a trust fund according to section 423A.01, subdivision 2. 

    Subd. 4.    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 to the state auditor of the absence of any 
 remaining person entitled to a benefit under this chapter, all 
 assets of the association or trust fund, whichever applies, 
 shall revert to the city.  The city shall only use these assets 
 for firefighting expenditure purposes. 

    HIST: 1Sp2001 c 10 art 15 s 2 

     423C.03 Board membership; elections; duties; 
  compensation; bond; meetings; powers. 

    Subdivision 1.    Board composition and elections.  The 
 board shall consist of two persons appointed by the city and ten 
 other members selected by the members.  Elections for active and 
 retired positions on the board shall be conducted pursuant to 
 the association's bylaws.  

    Subd. 2.    Board officers.  The officers of the 
 association shall consist of a president, one or more 
 vice-presidents, an executive secretary, a treasurer, an 
 assistant executive secretary, and an assistant treasurer.  Only 
 elected members of the board are eligible to be officers.  
 Officers shall have those duties and responsibilities as set 
 forth in this chapter, other applicable law, and the 
 association's bylaws.  Officers shall be compensated as provided 
 in subdivision 3.  All officers shall be elected in even years 
 at the association's annual meeting.  Officers shall hold their 
 office for a term of two years unless they are removed from the 
 board before their two-year term expires. 

    Subd. 3.    Compensation of officers and board members.  
 (a) Notwithstanding any other law to the contrary, the 
 association may provide for salaries to its officers and board 
 members as specified in this subdivision. 

    (b) If the executive secretary is not an active member, the 
 executive secretary may receive a salary to be set by the board, 
 subject to the limitations stated in paragraph (d).  If the 
 executive secretary is an active member, the executive secretary 
 may receive a salary not exceeding 50 percent of the maximum 
 salary of a first grade firefighter. 

    (c) The president may receive a salary not exceeding ten 
 percent of the maximum salary of a first grade firefighter, and 
 all other elected members of the board, other than the executive 
 secretary, may receive a salary not exceeding 2.5 percent of the 
 maximum salary of a first grade firefighter. 

    (d) If the executive secretary is not an active member, the 
 executive secretary's salary may not exceed the highest salary 
 currently received by the executive director of the Minnesota 
 State Retirement System, the Public Employees Retirement 
 Association, or the Teachers Retirement Association. 

    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 special fund of the relief association. 

    Subd. 5.    Meetings.  Each December, the board shall 
 hold an annual meeting.  All other meetings of the board shall 
 be held as provided in the association's articles or bylaws.  
 Board members may participate in a board meeting by any means of 
 communication through which the trustee, other board members 
 participating, and all other board members physically present at 
 the meeting may simultaneously hear each other during the 
 meeting.  Participating in a meeting by these means is the same 
 thing as being physically present at the meeting.  

    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 at least three members of the board of 
 the relief association. 

    HIST: 1Sp2001 c 10 art 15 s 3; 2002 c 231 s 3,4; 1Sp2003 c 12 
 art 11 s 1; 2004 c 267 art 13 s 1 

     423C.04 Association funds and accounts. 

    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. 

    Subd. 2.    Special fund; purpose and sources of revenue. 
  (a) The special fund may only be used to pay for defined and 
 contingent benefits as set forth in sections 423C.05 and 
 423C.06; compensation for officers and board members as set 
 forth in section 423C.03, subdivision 3; expenses of officers 
 and employees of the association in connection with the 
 protection of the special fund; and expenses of operating, 
 administering, and maintaining the association as authorized by 
 this chapter, section 69.80, or other applicable law.  

    (b) The special fund is derived from the following sources: 

    (1) receipts from the state, including, but not limited to, 
 any fire state aid, any fire insurance premium surcharge amount, 
 or any additional amortization state aid; 

    (2) all money derived from taxation by the city under 
 section 69.77 for the support of the association and for the 
 payment of benefits set forth in sections 423C.05 and 423C.06; 

    (3) an amount equal to the minimum percentage specified in 
 section 69.77, subdivision 3, of the salary of a first grade 
 firefighter deducted from the monthly salary of each active 
 member; and 

    (4) the proceeds of the investment of special fund assets. 

    Subd. 3.    General fund.  The general fund is separate 
 and distinct from the special fund.  The general fund may, 
 consistent with applicable law, be expended for those purposes 
 deemed appropriate by the relief association.  The city finance 
 officer shall deduct from each active member's biweekly payroll 
 check a sum equal to one-half of one percent of the maximum 
 biweekly salary of a first grade firefighter.  This sum shall be 
 forwarded to the association's treasurer and deposited in the 
 general fund.  The general fund shall also consist of receipts 
 from private sources, such as gifts, charges, fund-raising 
 projects, and dues paid by members; investment of, earnings on, 
 and interest of the general fund; and all other sources.  Money 
 received from other sources may also be deposited in the general 
 fund. 

    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 member consistent with the 
 board's rules. 

    HIST: 1Sp2001 c 10 art 15 s 4; 2002 c 231 s 5,6; 2002 c 392 
 art 1 s 8 

     423C.05 Defined benefits. 

    Subdivision 1.    Duties.  The association is authorized 
 to and shall pay the benefits in this section to its members in 
 accordance with this section.  All benefits authorized in this 
 section shall be paid from the association's special fund. 

    Subd. 2.    Service pension.  (a) A member who has 
 performed duty for the fire department 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 under paragraph (b). 

    (b) The amount of the service pension is as follows: 

      Length of                           Number of  
      allowable                               units  
      service                                        
      credit                                    

       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 
       or more                           42.0 units

    (c) A member entitled to a benefit under this subdivision 
 may elect to have it paid as an optional retirement annuity 
 pursuant to the conditions set forth in subdivision 8.  A member 
 receiving a benefit pursuant to subdivision 5 or 6 shall not 
 simultaneously be entitled to a benefit under this subdivision. 

    Subd. 3.    Calculation of service pension for deferred 
 members.  An association member who has performed services for 
 the fire department for five years or more but has not reached 
 the age of 50 years shall be eligible to retire from the 
 department, without forfeiting service pension rights.  The 
 member shall, upon application, be placed on the association's 
 deferred pension roll.  The association shall, upon board 
 approval, pay the pension of any member on the deferred pension 
 roll who has attained 50 years of age from the date the 
 application is approved.  The pension shall be paid in 
 accordance with the schedule in subdivision 2.  Any person 
 making this application waives all other rights, claims, or 
 demands against the association for any cause that may have 
 arisen from or that may be attributable to the person's service 
 in the fire department.  A member entitled to a benefit under 
 this subdivision may elect to have the benefit paid as an 
 optional retirement annuity pursuant to the conditions set forth 
 in subdivision 7.  

    Subd. 4.    Temporary disability pension.  (a) An active 
 member who, by sickness or accident, becomes temporarily 
 disabled from performing firefighter duties for the fire 
 department is entitled to a temporary disability pension.  

    (b) No allowance for disability may 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 must include a 
 certificate from a qualified expert setting forth the cause, 
 nature, and extent of the disability.  This certificate must 
 also conclude that the disability was incurred or sustained 
 while the member was in the service of the fire department.  

    (c) The board shall utilize the board of examiners 
 established under section 423C.03, subdivision 6, to investigate 
 and report on an application for benefits under this section and 
 to make recommendations as to eligibility and the benefit amount 
 to be paid.  

    (d) A member entitled to a disability pension must receive 
 benefits in the amount and manner determined by the board. 

    Subd. 5.    Service-related permanent disability pension. 
  An active member who becomes permanently disabled as the 
 result of a service-related disease or injury is, upon 
 application and approval of the board, entitled to a pension of 
 41 units or in the amount determined under subdivision 8.  The 
 application for service-related permanent disability must 
 include a certificate from a qualified expert setting forth the 
 permanent nature of the disability or disease and that it was 
 service related.  

    Subd. 6.    Non-service-related permanent disability 
 pension.  An active member who, by reason of sickness or 
 accident, becomes permanently disabled and unable to perform 
 firefighter duties for the fire department due to 
 non-service-related disease or injury is entitled to a permanent 
 disability pension.  No allowance for disability may 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 must 
 include a certificate from a qualified medical professional 
 setting forth the cause, nature, and extent of the disability.  
 A member who is entitled to a disability pension under this 
 subdivision must receive benefits in the amount and manner 
 determined by the board, not to exceed 41 units. 

    Subd. 6a.    Qualified expert.  A qualified expert 
 includes a licensed physician or chiropractor, or in the case of 
 mental impairment, includes a licensed psychologist. 

    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 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 42 
 units per month. 

    Subd. 8.    Optional retirement annuity election.  A 
 member of the association who retires under subdivision 2 or 
 becomes disabled under subdivision 6 may elect an optional 
 retirement annuity prior to the receipt of any benefits.  The 
 optional retirement annuity may be a 50 percent, 75 percent, or 
 100 percent joint survivor annuity without reinstatement in the 
 event the designated beneficiary predeceases the member or a 
 joint and survivor annuity with reinstatement in the event the 
 member predeceases the designated beneficiary.  An optional 
 retirement annuity must be actuarially equivalent to the service 
 pension and automatic survivor coverage otherwise payable to the 
 retired member and the member's beneficiaries.  Once selected, 
 the optional annuity is irrevocable. 

    Subd. 9.    Alternative service pension for unmarried 
 member.  A retired member submitting an application for a 
 service pension who was not legally married on September 1, 
 1997, and remained unmarried on 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.  

    HIST: 1Sp2001 c 10 art 15 s 5; 2002 c 231 s 7-10; 2004 c 267 
 art 8 s 37-40; 1Sp2005 c 8 art 11 s 13 

     423C.06 Investment-related postretirement adjustments. 

    Subdivision 1.    Annual adjustments.  Notwithstanding 
 the provisions of chapter 69, or any other law to the contrary, 
 the association may provide annual postretirement payments to 
 eligible members under this section.  No provision of or payment 
 made under this section may be interpreted or relied upon by any 
 member of the association to guarantee or entitle a member to 
 annual postretirement adjustments for any period when the 
 requirements in this section have not been met. 

    Subd. 2.    Actuarial assets of special fund less than 102 
 percent.  (a) When the actuarial assets of the special fund in 
 any year are less than 102 percent of its accrued liabilities 
 according to the most recent annual actuarial valuation of the 
 special fund prepared in accordance with sections 356.215 and 
 356.216, investment-related postretirement adjustments shall be 
 determined and paid pursuant to this subdivision.  Payment of 
 the annual postretirement adjustment may be made only if there 
 is excess investment income. 

    (b) The board shall determine by May 1 of each year whether 
 or not the special fund has excess investment income.  The 
 amount of excess investment income, if any, must be stated as a 
 dollar amount and reported by the executive secretary 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 special fund must be applied for the purpose 
 specified in paragraph (c).  Excess investment income must not 
 be considered as income to or assets of the special fund for 
 actuarial valuations of the special fund for that year under 
 this section and sections 69.77, 356.215, and 356.216, except to 
 offset the annual postretirement adjustment.  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 this 
 section and sections 69.77, 356.215, and 356.216. 

    (c) The amount determined under paragraph (b) must be 
 applied as follows:  the association shall apply the first 
 one-half of one percent of assets that constitute excess 
 investment income to the payment of an annual postretirement 
 adjustment to eligible members and the second one-half of one 
 percent of assets which constitute excess investment income 
 shall be applied to reduce the state amortization state aid or 
 supplementary amortization state aid payments otherwise due the 
 association under section 423A.02 for the current calendar 
 year.  The amounts of all payments to eligible members shall not 
 exceed one-half of one percent of the assets of the fund.  The 
 amount of each eligible member's postretirement adjustment shall 
 be calculated by dividing the total number of units to which 
 eligible members are entitled into the excess investment income 
 available for distribution to eligible members, and then 
 multiplying that result by the number of units to which each 
 eligible member is entitled.  If this amount exceeds the total 
 monthly benefit that the eligible member was entitled to in the 
 prior year under the terms of this chapter, the association 
 shall pay the eligible member the lesser amount.  Payment of the 
 annual postretirement adjustment must be in a lump-sum amount on 
 June 1 following the determination date in any year.  In the 
 event an eligible member dies prior to the payment of the annual 
 postretirement adjustment, the executive secretary shall pay the 
 eligible member's estate the amount to which the member was 
 entitled. 

    Subd. 3.    Actuarial assets of special fund 102 percent 
 or more.  (a) When the actuarial assets of the special fund in 
 any year are 102 percent or more of its accrued liabilities 
 according to the most recent annual actuarial valuation of the 
 special fund prepared in accordance with sections 356.215 and 
 356.216, an investment-related postretirement adjustment shall 
 be determined and paid pursuant to this subdivision.  Payment of 
 the annual postretirement adjustment may only be made if there 
 is excess investment income. 

    (b) The board shall determine by May 1 of each year whether 
 or not the special fund has excess investment income.  The 
 amount of excess investment income, if any, must be stated as a 
 dollar amount and reported by the executive secretary 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 1-1/2 percent of the 
 assets of the fund must be applied for the purpose specified in 
 paragraph (c).  Excess investment income must not be considered 
 as income to or assets of the special fund for actuarial 
 valuations of the special fund for that year under this section 
 and sections 69.77, 356.215, and 356.216, except to offset the 
 annual postretirement adjustment.  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 this section and sections 69.77, 
 356.215, and 356.216. 

    (c) The amount determined under paragraph (b) must be 
 applied as follows:  the association shall apply the 1-1/2 
 percent of assets that constitute excess investment income to 
 the payment of an annual postretirement adjustment to eligible 
 members.  The amount of each eligible member's postretirement 
 adjustment shall be calculated by dividing the total number of 
 units to which eligible members are entitled into the excess 
 investment income available for distribution to eligible 
 members, and then multiplying that result by the number of units 
 to which each eligible member is entitled.  Payment of the 
 annual postretirement adjustment must be in a lump-sum amount on 
 June 1 following the determination date in any year.  In the 
 event an eligible member dies prior to the payment of the annual 
 postretirement adjustment, the executive secretary shall pay the 
 eligible member's estate the amount to which the member was 
 entitled. 

    Subd. 4.    Actuarial assets of special fund 110 percent 
 or more.  (a) When the actuarial assets of the special fund in 
 any year are 110 percent or more of its accrued liabilities 
 according to the most recent annual actuarial valuation of the 
 special fund prepared in accordance with sections 356.215 and 
 356.216, an investment-related postretirement adjustment shall 
 be determined and paid pursuant to this subdivision.  Payment of 
 the annual postretirement adjustment may be made only if a total 
 excess asset amount exists. 

    (b) The board shall determine by May 1 of each year whether 
 the special fund has a total excess asset amount for that year.  
 If a total excess asset amount exists for the given year, the 
 net total asset amount shall be determined.  The executive 
 secretary shall report the total excess asset amount and net 
 total excess asset amount 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 portion of the net excess asset amount which is 
 distributed under this subdivision shall not be considered 
 income to or assets of the special fund for actuarial valuations 
 of the special fund for that year under sections 69.77, 356.215, 
 and 356.216, and Laws 2000, chapter 461, except to offset the 
 amount distributed. 

    (c) Twenty percent of the net total excess asset amount 
 determined under paragraph (b) is available for excess asset 
 amount payments under paragraph (d). 

    (d) Except as limited under paragraph (e), the net excess 
 asset amount payment to an eligible member is equal to the 
 amount determined under paragraph (c) multiplied by the units 
 applicable to the eligible member and divided by the total units 
 of all eligible members. 

    (e) A member who is an eligible member for the entire 12 
 months before the determination date is eligible for a full 
 excess asset amount payment pursuant to paragraph (d).  A member 
 who is an eligible member for less than 12 months before the 
 determination date is eligible for a prorated excess asset 
 amount payment.  If an eligible member dies before the 
 determination date and before the excess asset amount payment 
 commences, the association shall pay the eligible member's 
 excess asset amount payment to the eligible member's surviving 
 spouse or, if no surviving spouse, to the eligible member's 
 estate. 

    (f) The excess asset amount payments determined under this 
 subdivision commence on June 1 following the determination 
 date.  The board may disburse payments to eligible members in a 
 lump sum, 12 monthly installments, or any other manner that the 
 board determines. 

    Subd. 5.    Report on annual postretirement adjustments. 
  The executive secretary shall submit a report on the amount 
 of all postretirement adjustments made under this section and 
 the manner in which those payments were determined to the state 
 auditor, the executive director of the Legislative Commission on 
 Pensions and Retirement, and the city clerk. 

    Subd. 6.    City tax levy.  If in any year after the 
 actuarial value of special fund assets, 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 special fund and 
 subsequently the actuarial value of assets is less than 100 
 percent of the actuarial accrued liabilities according to the 
 most recent annual actuarial valuation prepared according to 
 sections 356.215 and 356.216, the city of Minneapolis is not 
 required to levy a property tax to fund any deficit unless the 
 fund has two successive years when the actuarial value of assets 
 is less than 100 percent of the actuarial accrued liabilities 
 according to the most recent annual actuarial valuation prepared 
 according to sections 356.215 and 356.216. 

    HIST: 1Sp2001 c 10 art 15 s 6 

     423C.07 Actuarial valuation date. 

    Notwithstanding section 69.77, subdivision 10, 356.215, or 
 356.216, the annual actuarial valuation of the association must 
 be completed by May 1 of each year. 

    HIST: 1Sp2001 c 10 art 15 s 7; 2002 c 392 art 1 s 8 

     423C.08 Member contribution refund to beneficiary upon 
  death. 

    If an active, deferred, or retired member of the 
 association dies and no survivor benefit is payable, the 
 designated beneficiary of the decedent or, if none, the legal 
 representative of the estate of the decedent is entitled, upon 
 application, to a refund.  The refund shall be an amount equal 
 to the member contributions to the credit of the decedent, plus 
 interest on those contributions at an annual compounded rate of 
 five percent from the first day of the month following the date 
 of the contribution to the first day of the month following the 
 date of death of the decedent, reduced by the sum of any service 
 pension or disability benefit previously paid by the fund to the 
 decedent. 

    HIST: 1Sp2001 c 10 art 15 s 8; 1Sp2003 c 12 art 11 s 2 

     423C.09 Payments exempt from process. 

    The provisions of section 356.401 apply to the Minneapolis 
 Firefighters Relief Association.  

    HIST: 1Sp2001 c 10 art 15 s 9; 1Sp2005 c 8 art 10 s 78 

     423C.10 Law governing pensions and benefits. 

    A service pension or other retirement benefit for or on 
 behalf of a member of the Minneapolis Firefighters Relief 
 Association must be calculated under the laws, articles of 
 incorporation, or relief association bylaws in effect on the day 
 that the active member terminated active employment in the 
 Minneapolis Fire Department as a firefighter. 

    HIST: 1Sp2001 c 10 art 15 s 10 

     423C.11 Workers' Compensation Act not affected. 

    This chapter shall not be construed as abridging, 
 repealing, or amending the laws of this state relating to the 
 provisions of the law commonly known as the Workers' 
 Compensation Act. 

    HIST: 1Sp2001 c 10 art 15 s 11 

     423C.12 Right to reduce pensions. 

    The relief association has the right and retains the right 
 to reduce the amount of pensions and benefits paid from its 
 special fund and to reduce and otherwise adjust those pensions 
 and benefits.  For any pension or benefit that was reduced, the 
 relief association has the right and retains the right to 
 increase or otherwise adjust these pensions or benefits within 
 the limits of this chapter.  

    HIST: 1Sp2001 c 10 art 15 s 12 

     423C.13 Finance director to file report with the revenue 
  commissioner. 

    (a) On or before March 1 each year, the Minneapolis finance 
 director shall file with the county auditor and the commissioner 
 of revenue a certificate stating that the Minneapolis 
 Firefighters Relief Association exists and including any other 
 information that the commissioner or auditor may require. 

    (b) The commissioner of revenue shall provide the 
 Minneapolis finance director with the necessary documents for 
 the city of Minneapolis and the Minneapolis Firefighters Relief 
 Association to carry out its duties and to receive the benefits 
 of sections 69.011 to 69.051, 297I.05, and 297I.10. 

    HIST: 1Sp2001 c 10 art 15 s 13 

     423C.14 State auditor to examine books. 

    (a) The state auditor, annually, shall examine the books 
 and accounts of the secretary and of the treasurer of the 
 Minneapolis Firefighters Relief Association. 

    (b) If the state auditor finds that any money in the 
 special fund of the relief association was expended for purposes 
 that were not authorized by this chapter, the state auditor 
 shall report that to the governor, who shall then direct the 
 commissioner of finance not to issue any further warrants to the 
 relief association until the state auditor reports that the 
 money which was unlawfully expended has been replaced.  The 
 governor additionally may take such further action as the 
 emergency may demand. 

    HIST: 1Sp2001 c 10 art 15 s 14 

     423C.15 Actuarial provisions. 

    Subdivision 1.    City normal cost contribution 
 adjustment.  Notwithstanding sections 69.77, 356.215, and 
 356.216, or other law to the contrary, the required city 
 contributions toward the association's normal cost, as 
 determined by the actuary, are reduced below that otherwise 
 payable by the full amount of active member contributions 
 required by law to be directed to the association's health 
 insurance escrow account rather than to the special fund. 

    Subd. 2.    Suspension of normal cost contributions.  
 Notwithstanding the provisions of section 69.77, or any other 
 law to the contrary, if a total excess asset amount exists, as 
 defined in section 423C.01, subdivision 27, paragraph (a), the 
 city is not required to make a contribution to the fund for the 
 normal cost of active members. 

    Subd. 3.    Amortization treatment.  Notwithstanding 
 section 69.77, subdivision 4, 356.215, 356.216, or any other law 
 to the contrary, if the actuarial report for the Minneapolis 
 Firefighters Relief Association indicates an unfunded actuarial 
 accrued liability, the unfunded obligation is to be amortized on 
 a level dollar basis by December 31 of the year occurring 15 
 years later.  If subsequent actuarial valuations determine a net 
 actuarial experience loss incurred during the year which ended 
 as of the day before the most recent actuarial valuation date, 
 any unfunded liability due to that loss is to be amortized on a 
 level dollar basis by December 31 of the year occurring 15 years 
 later. 

    Subd. 4.    Limitation.  Notwithstanding subdivision 3, 
 the amortization period may not exceed the average life 
 expectancy of the remaining members. 

    HIST: 1Sp2001 c 10 art 15 s 15; 2002 c 392 art 1 s 8 

     423C.16 Recomputation of disabled benefit prohibited. 

    Notwithstanding section 423A.11, the Board of Trustees of 
 the Minneapolis Firefighters Relief Association shall not 
 recompute the disability benefit of a member who became 
 permanently disabled as the result of a service-related disease 
 or injury.  Any prior recomputation of a disabled member's 
 service-related disability pension shall be revoked upon the 
 member's request and upon the member's signed and sworn 
 agreement to waive any right to a recomputation of the benefit 
 in the future.  Non-service-related disability pension benefits 
 that were recomputed at full 25-year service pensions shall 
 remain in effect.  

    HIST: 1Sp2005 c 8 art 11 s 14