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422A.06 RETIREMENT FUND.
    Subdivision 1. Creation; divisions of fund. For the purposes of this chapter, there is
established the Minneapolis Employees Retirement Fund. That retirement fund is subdivided into
(1) a deposit accumulation fund, (2) a survivor benefit fund, (3) a disability benefit fund, and (4) a
retirement benefit fund. The expense of the administration of the retirement fund must be paid
from the deposit accumulation fund, less the amount as the retirement board may charge against
income of the retirement benefit fund from investments as the cost of handling the investments of
the retirement benefit fund.
    Subd. 2. Actuarial valuation required. As of July 1 of each year, an actuarial valuation
of the retirement fund shall be prepared by the actuary retained by the joint retirement systems
under section 356.214 and filed in conformance with the provisions and requirements of sections
356.215 to 356.23. Experience studies shall be prepared at those times required by statute,
required by the standards for actuarial work adopted by the Legislative Commission on Pensions
and Retirement or ordered by the board.
The board may contract for the services of an approved actuary and fix the reasonable
compensation for those services. Any approved actuary retained by the board shall function as
the actuarial advisor to the board and may perform actuarial valuations and experience studies to
supplement those performed by the actuary retained by the joint retirement systems under section
356.214. Any supplemental actuarial valuations or experience studies must be filed with the
executive director of the Legislative Commission on Pensions and Retirement.
    Subd. 3. Deposit accumulation fund. The deposit accumulation fund consists of the assets
held in the fund, including amounts contributed by or for employees, amounts contributed by the
city, amounts contributed by municipal activities supported in whole or in part by revenues other
than taxes and amounts contributed by any public corporation, amounts paid by the state, and by
income from investments. There must be paid from the fund the amounts required to be transferred
to the retirement benefit fund, or the disability benefit fund, refunds of contributions, including the
death-while-active refund specified in section 422A.22, subdivision 4, postretirement increases in
retirement allowances granted under Laws 1965, chapter 688, or Laws 1969, chapter 859, and
expenses of the administration of the retirement fund which were not charged by the retirement
board against the income of the retirement benefit fund from investments as the cost of handling
the investments of the retirement benefit fund.
    Subd. 4. No participation in the Minnesota postretirement investment fund. The
Minneapolis Employees Retirement Fund shall not participate in the Minnesota postretirement
investment fund.
    Subd. 5. Transfer of reserves to retirement benefit fund; adjustments of annuities
and benefits. (a) Assets equal to the required reserves for retirement annuities as determined
in accordance with the appropriate mortality table adopted by the board of trustees based on
the experience of the fund as recommended by the actuary retained under section 356.214 and
using the postretirement interest assumption specified in section 356.215, subdivision 8, shall be
transferred to the disability benefit fund as provided in subdivision 7, or the retirement benefit
fund, except for any amounts payable from the survivor benefit fund, as of date of retirement.
(b) Annuity payments shall be adjusted in accordance with this chapter, except that no
minimum retirement payments described in this chapter shall include any amounts payable from
the survivors' benefit fund or disability benefit fund and supplemented benefits specifically
financed by statute.
(c) Increases in annuity payments pursuant to this section shall be made automatically unless
written notice on a form prescribed by the board is filed with the retirement board requesting that
the increase not be made.
(d) Any additional annuity which began to accrue on July 1, 1973, or which began to accrue
on January 1, 1974, pursuant to Laws 1973, chapter 770, section 1, shall be considered as part
of the base amount to be used in determining any postretirement adjustments payable pursuant
to the provisions of subdivision 8.
    Subd. 6. Survivor's benefit fund. The survivor's benefit fund consists of the amount held for
survivor benefits, increased by contributions for survivor benefits made by and for employees,
including contributions made by the employer, by any municipal activity supported in whole or in
part by revenue other than taxes or by any public corporation. A proportionate share of income
from investments must be allocated to this fund. Survivor benefits specified in section 422A.23
must be paid from this fund.
    Subd. 7. Disability benefit fund. (a) A disability benefit fund is established, containing the
required reserves for disability allowances under this chapter. A proportionate share of income
from investments must be allocated to this fund. There must be paid from this fund the disability
allowances payable under this chapter.
(b) In the event of the termination of any disability allowance for any reason other than the
death of the recipient, the balance of the required reserves for the disability allowance as of
the date of the termination must be transferred from the disability benefit fund to the deposit
accumulation fund.
(c) At the end of each fiscal year, as part of the annual actuarial valuation, a determination
must be made of the required reserves for all disability allowances being paid from the disability
benefit fund. Any excess of assets over actuarial required reserves in the disability benefit fund
must be transferred to the deposit accumulation fund. Any excess of actuarial reserves over
assets in the disability benefit fund must be funded by a transfer of the appropriate amount of
assets from the deposit accumulation fund.
    Subd. 8. Retirement benefit fund. (a) The retirement benefit fund shall consist of amounts
held for payment of retirement allowances for members retired pursuant to this chapter.
(b) Assets equal to the required reserves for retirement allowances pursuant to this chapter
determined in accordance with the appropriate mortality table adopted by the board of trustees
based on the experience of the fund as recommended by the actuary retained under section
356.214 shall be transferred from the deposit accumulation fund to the retirement benefit fund as
of the last business day of the month in which the retirement allowance begins. The income from
investments of these assets shall be allocated to this fund. There shall be paid from this fund the
retirement annuities authorized by law. A required reserve calculation for the retirement benefit
fund must be made by the actuary retained under section 356.214 and must be certified to the
retirement board by the actuary retained under section 356.214.
(c) The retirement benefit fund shall be governed by the applicable laws governing the
accounting and audit procedures, investment, actuarial requirements, calculation and payment of
postretirement benefit adjustments, discharge of any deficiency in the assets of the fund when
compared to the actuarially determined required reserves, and other applicable operations and
procedures regarding the Minnesota postretirement investment fund in effect on June 30, 1997,
established under Minnesota Statutes 1996, section 11A.18, and any legal or administrative
interpretations of those laws of the State Board of Investment, the legal advisor to the Board of
Investment and the executive director of the State Board of Investment in effect on June 30, 1997.
If a deferred yield adjustment account is established for the Minnesota postretirement investment
fund before June 30, 1997, under Minnesota Statutes 1996, section 11A.18, subdivision 5, the
retirement board shall also establish and maintain a deferred yield adjustment account within
this fund.
(d) Annually, following the calculation of any postretirement adjustment payable from the
retirement benefit fund, the board of trustees shall submit a report to the executive director of
the Legislative Commission on Pensions and Retirement and to the commissioner of finance
indicating the amount of any postretirement adjustment and the underlying calculations on which
that postretirement adjustment amount is based, including the amount of dividends, the amount of
interest, and the amount of net realized capital gains or losses utilized in the calculations.
(e) With respect to a former contributing member who began receiving a retirement annuity
or disability benefit under section 422A.151, paragraph (a), clause (2), after June 30, 1997, or with
respect to a survivor of a former contributing member who began receiving a survivor benefit
under section 422A.151, paragraph (a), clause (2), after June 30, 1997, the reserves attributable
to the one percent lower amount of the cost-of-living adjustment payable to those annuity or
benefit recipients annually must be transferred back to the deposit accumulation fund to the credit
of the Metropolitan Airports Commission. The calculation of this annual reduced cost-of-living
adjustment reserve transfer must be reviewed by the actuary retained under section 356.214.
History: 1973 c 133 s 6; 1973 c 770 s 1; 1974 c 76 s 1-5; 1977 c 399 s 12; 1980 c 509 s 161;
1980 c 607 art 16 s 12-14; 1981 c 224 s 180-182; 1981 c 298 s 5-9; 1982 c 578 art 3 s 12-15;
1Sp1985 c 7 s 35; 1986 c 444; 1987 c 259 s 66-69; 1991 c 345 art 4 s 8,9; 1996 c 305 art 1 s
98; 1997 c 233 art 1 s 64; 1999 c 222 art 17 s 1,2; 2002 c 392 art 11 s 52; 2004 c 223 s 9;
1Sp2005 c 8 art 10 s 68; 2006 c 271 art 3 s 47