2007 Minnesota Statutes

CHAPTER 423A. POLICE AND SALARIED FIREFIGHTERS' RELIEF ASSOCIATION

423A.01 POLICE AND SALARIED FIREFIGHTERS' RELIEF ASSOCIATIONS.
    Subdivision 1. Membership of new police and salaried firefighters in the public
employees police and fire fund. Notwithstanding any law to the contrary, all persons first
employed by any municipality as police officers or police officer trainees, salaried firefighters or
firefighter trainees or public safety officers or public safety officer trainees after June 15, 1980
shall be members of the public employees police and fire fund established by sections 353.63
to 353.68, and shall not be members of any local police or paid firefighters' relief association
established or maintained by the municipality, unless the municipality elects to retain the local
relief association by the adoption of a municipal resolution approved by a majority of the
governing body of the municipality following the holding of a public meeting at which the views
of the public are considered and a copy of the municipal resolution is filed with the secretary of
state, the commissioner of finance, the commissioner of commerce and the executive director of
the Legislative Commission on Pensions and Retirement on or before August 15, 1980.
    Subd. 2. Operation of local relief association upon modification of retirement coverage
for newly hired police officers and firefighters. The following provisions shall govern the
operation of a local relief association upon the modification of retirement coverage for newly
hired police officers or firefighters:
(1) The minimum obligation of a municipality in which the retirement coverage for newly
hired police officers or salaried firefighters has been modified pursuant to subdivision 1 with
respect to the local relief association shall be determined and governed in accordance with the
provisions of sections 69.77, 356.215, and 356.216, except that the normal cost calculation for
the relief association shall be computed as a percentage of the compensation paid to the active
members of the relief association. The compensation paid to persons with retirement coverage
modified pursuant to subdivision 1 shall not be included in any of the computations made in
determining the obligation of the municipality with respect to the local relief association.
(2) The contribution rate of members of the local relief association shall be governed by
section 69.77, unless a special law establishing a greater member contribution rate is applicable
whereupon it shall continue to govern. The member contribution rate of persons with retirement
coverage modified pursuant to subdivision 1 shall be governed by section 353.65.
(3) Unless otherwise provided for by law, when every active member of the local relief
association retires or terminates from active duty, the local relief association shall cease to exist as
a legal entity and the assets of the special fund of the relief association shall be transferred to a trust
fund to be established by the appropriate municipality for the purpose of paying service pensions
and retirement benefits to recipient beneficiaries. Recipient beneficiaries who are competent to act
on their own behalf shall be entitled to select the prescribed number of trustees of the trust fund
as provided in this clause, subject to the approval of the governing body of the municipality. If
there are at least five recipient beneficiaries, the trust fund shall be managed by a board of trustees
composed of five persons selected by the recipient beneficiaries of the fund. When there are fewer
than five recipient beneficiaries, the number of trustees selected by the recipient beneficiaries
shall be equal to the number of the remaining recipient beneficiaries. The governing body of the
municipality shall select the additional trustees. The term of the elected members of the board of
trustees shall be indefinite and shall continue until a vacancy occurs in one of the board of trustee
member positions. Board of trustee members shall not be compensated for their services, but shall
be reimbursed for any expenses actually and necessarily incurred as a result of the performance
of their duties in their capacity as board of trustee members. The municipality shall perform
whatever services are necessary to administer the trust fund. When all obligations of the trust fund
are paid, the balance of the assets remaining in the trust fund shall revert to the municipality for
expenditure for law enforcement or firefighting purposes, whichever is applicable.
(4) The financial requirements of the trust fund and the minimum obligation of the
municipality with respect to the trust fund shall be determined in accordance with sections 69.77,
356.215, and 356.216 until the unfunded accrued liability of the trust fund is fully amortized in
accordance with section 69.77, subdivision 4. The municipality shall provide in its annual budget
for at least the aggregate amount of service pensions, disability benefits, survivorship benefits,
and refunds which are projected as payable for the following calendar year, as determined by the
board of trustees of the trust fund, less the amount of assets in the trust fund as of the end of the
most current calendar year for which figures are available, valued pursuant to section 356.20,
subdivision 4, clause (1)(a) , if the difference between those two figures is a positive number.
(5) In calculating the amount of service pensions and other retirement benefits payable
from the local relief association and in calculating the amount of any automatic postretirement
increases in those service pensions and retirement benefits based on the salary paid or payable
to active members or escalated in any fashion, the salary for use as the base for the service
pension or retirement benefit calculation and the postretirement increase calculation for the local
relief association shall be the salary for the applicable position as specified in the articles of
incorporation or bylaws of the relief association as of the date immediately prior to the effective
date of the modification of retirement coverage for newly hired personnel pursuant to subdivision
1, as the applicable salary is reset by the municipality periodically, irrespective of whether
retirement coverage for persons holding the applicable position used in calculations is provided
by the relief association or by the public employees police and fire fund. If for a local salaried
firefighters relief association, the specified position no longer exists because of a reorganization of
the fire department as a volunteer fire department, the percentage increase in the salary of the
position of a top grade patrol officer in the police department of the municipality must be the basis
for service pension and retirement benefit postretirement increase calculations.
(6) If the modification of retirement coverage implemented pursuant to subdivision 1 is
applicable to a local police relief association, the police state aid received by the municipality
shall be disbursed pursuant to section 69.031, subdivision 5, clause (2)(c). If the modification of
retirement coverage implemented pursuant to subdivision 1 is applicable to a local firefighters'
relief association, the fire state aid received by the applicable municipality other than a city of the
first class with a population of more than 300,000 shall be disbursed as the municipality at its
option may elect. The municipality may elect: (a) to transmit the total fire state aid to the treasurer
of the local relief association for immediate deposit in the special fund of the relief association; or
(b) to apply the total fire state aid toward the employer contribution of the municipality to the
public employees police and fire fund pursuant to section 353.65, subdivision 3; or (c) to allocate
the total fire state aid proportionately between the special fund of the local relief association
and employer contribution of the municipality to the public employees police and fire fund on
the basis of the respective number of active full-time salaried firefighters receiving retirement
coverage from each.
For a city of the first class with a population of more than 300,000, in addition, the city
may elect to allot the appropriate portion of the total fire state aid to apply toward the employer
contribution of the city to the public employees police and fire fund based on the covered
salary of firefighters covered by the fund each payroll period and to transmit the balance to the
firefighters relief association.
    Subd. 3. Benefit increase for certain relief association members. Notwithstanding any
law to the contrary, any member of a local police or salaried firefighters' relief association
located in a municipality which has not adopted a municipal resolution retaining the local relief
association pursuant to subdivision 1, except the city of Minneapolis, shall be entitled to receive,
after the effective date for the modification of pension coverage for newly employed personnel, a
retirement annuity in addition to the service pension to which the member may be eligible upon
retirement. The additional retirement annuity shall be payable for the life of the retired member.
The additional retirement annuity shall be equal to one-half of one percent of the salary upon
which the service pension is calculated payable on the date of termination of active service per
year of service credit acquired in excess of 25 years of service credit. The retirement annuity
under this subdivision shall not be subject to any postretirement increases granted pursuant to
increases in the salary payable to a certain employment category or in the salaries payable to
active members or be in any other manner escalated or increased after retirement.
    Subd. 4. Automatic postretirement adjustments for certain newly employed, active
and retired members. (1) Notwithstanding any provision of law, municipal charter, municipal
ordinance or resolution, or relief association articles of incorporation or bylaws to the contrary,
any person who meets one of the following requirements for entitlement shall be entitled to an
annual automatic postretirement adjustment in the amount of the service pension calculated
pursuant to clause (2). A person meets the requirements for entitlement if:
(a) the person is a member of a covered local police or salaried firefighters' relief association
enumerated in clause (3), commences receiving a service pension at an age no earlier than
attaining the age of 55 years, and has met all applicable requirements for entitlement to a service
pension specified in the applicable laws and relief association articles of incorporation or bylaws
governing the local relief association;
(b) the person is a retired member of a covered local police or salaried firefighters' relief
association enumerated in clause (3), retired on a service pension after June 15, 1980 after
attaining the age of at least 50 years but prior to attaining the age of 55 years, and attains the
age of 55 years subsequent to retirement; or
(c) the person was a retired member on June 15, 1980 of a covered local police or salaried
firefighters' relief association or retirement trust fund enumerated in clause (3), is receiving a
service pension, and has attained the age of at least 55 years.
(2) Any person who meets the requirements specified in clause (1)(a) or (1)(b) shall
be entitled to receive the annual automatic postretirement adjustment on the January 1 next
following the date upon which the requirements for entitlement are met but in no event prior
to the date upon which the person attains the age of 55 years. Any person who meets the
requirements specified in clause (1)(c) shall be entitled to receive the adjustment on the January 1
next following the date upon which the person attains the age of 55 years. The amount of the
adjustment shall be determined by the board of trustees of the local relief association on or before
December 1 annually and the adjustment shall accrue each year as of January 1 next following
the determination date. The adjustment shall be first payable with the service pension payment
made for January. Each adjustment in the amount of the service pension shall be based on the
percentage increase in the salary upon which retirement coverage is credited during the prior year
subject to the limitation provided for in this clause.
The percentage increase in the salary shall be applied to the amount of service pension
payable to the person for the month immediately prior to the month in which the determination
is made. The maximum percentage increase shall not exceed 3-1/2 percent in any year and
any increase in the salary level of the applicable position used to govern the determination of
adjustments in excess of 3-1/2 percent in any year shall not carry over to or be used to calculate
the rate of salary increase for any succeeding year in which the increase in the salary of the
applicable position does not exceed 3-1/2 percent.
(3) The provisions of this subdivision shall apply to the active members and retired members
of a local police or salaried firefighters' relief association or to the retired members of a retirement
trust fund contained in the following enumeration of covered relief associations:
(a) Buhl Police Relief Association;
(b) Eveleth joint retired police and firefighters' retirement trust fund;
(c) Moorhead Firefighters' Relief Association;
(d) Moorhead Police Relief Association;
(e) Thief River Falls police retirement trust fund;
(f) Virginia Firefighters' Relief Association;
(g) West St. Paul Police Relief Association.
History: 1980 c 607 art 15 s 4; 1982 c 578 art 3 s 16; 1983 c 289 s 114 subd 1; 1983 c 291 s
6,7; 1984 c 655 art 1 s 92; 1986 c 359 s 26; 1989 c 319 art 10 s 1; art 19 s 5; 2002 c 392 art 1 s 8

423A.02 LOCAL POLICE AND FIREFIGHTERS RELIEF ASSOCIATION
AMORTIZATION STATE AID.
    Subdivision 1. Amortization state aid. (a) A municipality in which is located a local police
or salaried firefighters' relief association to which the provisions of section 69.77, apply, that had
an unfunded actuarial accrued liability in the most recent relief association actuarial valuation, is
entitled, upon application as required by the commissioner of revenue, to receive local police and
salaried firefighters' relief association amortization state aid if the municipality and the appropriate
relief association both comply with the applicable provisions of sections 69.031, subdivision 5,
69.051, subdivisions 1 and 3, and 69.77. If a municipality loses entitlement for amortization state
aid in any year because its local relief association no longer has an unfunded actuarial accrued
liability, the municipality is not entitled to amortization state aid in any subsequent year.
(b) The total amount of amortization state aid to all entitled municipalities must not exceed
$5,055,000.
(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph, the
amount of amortization state aid to which a municipality is entitled annually is an amount equal
to the level annual dollar amount required to amortize, by December 31, 2010, the unfunded
actuarial accrued liability of the special fund of the appropriate relief association as reported in the
December 31, 1978, actuarial valuation of the relief association prepared under sections 356.215
and 356.216, reduced by the dollar amount required to pay the interest on the unfunded actuarial
accrued liability of the special fund of the relief association for calendar year 1981 set at the rate
specified in Minnesota Statutes 1978, section 356.215, subdivision 8. For the city of Minneapolis,
the amortization state aid amount thus determined must be reduced by $747,232 on account of
the Minneapolis Police Relief Association and by $772,768 on account of the Minneapolis Fire
Department Relief Association. If the amortization state aid amounts determined under this
paragraph exceed the amount appropriated for this purpose, the amortization state aid for actual
allocation must be reduced pro rata.
(d) Payment of amortization state aid to municipalities must be made directly to the
municipalities involved in three equal installments on July 15, September 15, and November 15
annually. Upon receipt of amortization state aid, the municipal treasurer shall transmit the aid
amount to the treasurer of the local relief association for immediate deposit in the special fund of
the relief association.
(e) The commissioner of revenue shall prescribe and periodically revise the form for and
content of the application for the amortization state aid.
    Subd. 1a. Supplementary amortization state aid. In addition to the amortization state
aid under subdivision 1, there is a distribution of supplementary amortization state aid among
those municipalities that receive amortization state aid under subdivision 1. The amount of the
distribution is that proportion of the appropriation that the unfunded actuarial accrued liability
of each relief association bears to the total unfunded actuarial accrued liabilities of all relief
associations as reported in the December 31, 1983, actuarial valuations of the relief associations
receiving amortization state aid under subdivision 1. Money under this subdivision must be
distributed at the same time that fire and police state aid is distributed under section 69.021.
    Subd. 1b. Additional amortization state aid. (a) Annually, on October 1, the commissioner
of revenue shall allocate the additional amortization state aid transferred under section 69.021,
subdivision 11 , to:
(1) all police or salaried firefighters relief associations governed by and in full compliance
with the requirements of section 69.77, that had an unfunded actuarial accrued liability in the
actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding December 31;
(2) all local police or salaried firefighter consolidation accounts governed by chapter 353A
that are certified by the executive director of the public employees retirement association as having
for the current fiscal year an additional municipal contribution amount under section 353A.09,
subdivision 5 , paragraph (b), and that have implemented section 353A.083, subdivision 1, if the
effective date of the consolidation preceded May 24, 1993, and that have implemented section
353A.083, subdivision 2, if the effective date of the consolidation preceded June 1, 1995; and
(3) the municipalities that are required to make an additional municipal contribution under
section 353.665, subdivision 8, for the duration of the required additional contribution.
(b) The commissioner shall allocate the state aid on the basis of the proportional share of
the relief association or consolidation account of the total unfunded actuarial accrued liability of
all recipient relief associations and consolidation accounts as of December 31, 1993, for relief
associations, and as of June 30, 1994, for consolidation accounts.
(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall allocate the
state aid, including any state aid in excess of the limitation in subdivision 4, on the following basis:
(1) 64.5 percent to the municipalities to which section 353.665, subdivision 8, paragraph (b),
or 353A.09, subdivision 5, paragraph (b), apply for distribution in accordance with paragraph (b)
and subject to the limitation in subdivision 4;
(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued liability
in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding
December 31 for the Minneapolis Police Relief Association or the Minneapolis Fire Department
Relief Association; and
(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability in the
actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding December 31
for the Virginia Fire Department Relief Association.
If there is no unfunded actuarial accrued liability in both the Minneapolis Police Relief
Association and the Minneapolis Fire Department Relief Association as disclosed in the most
recent actuarial valuations for the relief associations prepared under sections 356.215 and 356.216,
the commissioner shall allocate that 34.2 percent of the aid as follows: 49 percent to the Teachers
Retirement Association, 21 percent to the St. Paul Teachers Retirement Fund Association, and 30
percent as additional funding to support minimum fire state aid for volunteer firefighters relief
associations. If there is no unfunded actuarial accrued liability in the Virginia Fire Department
Relief Association as disclosed in the most recent actuarial valuation for the relief association
prepared under sections 356.215 and 356.216, the commissioner shall allocate that 1.3 percent
of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent to the St.
Paul Teachers Retirement Fund Association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighters relief associations. The allocation must be made
by the commissioner at the same time and under the same procedures as specified in subdivision
3. With respect to the St. Paul Teachers Retirement Fund Association, annually, beginning on July
1, 2005, if the applicable teacher's association five-year average time-weighted rate of investment
return does not equal or exceed the performance of a composite portfolio assumed passively
managed (indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt
securities, and 30 percent in domestic stock calculated using the formula under section 11A.04,
clause (11), the aid allocation to that retirement fund under this section ceases until the five-year
annual rate of investment return equals or exceeds the performance of that composite portfolio.
(d) The amounts required under this subdivision are annually appropriated to the
commissioner of revenue.
    Subd. 2. Continued eligibility. A municipality that has qualified for amortization state
aid under subdivision 1 on December 31, 1984, and has an additional municipal contribution
payable under section 353A.09, subdivision 5, paragraph (b), as of the most recent December 31,
continues upon application to be entitled to receive amortization state aid under subdivision 1
and supplementary amortization state aid under subdivision 1a, after the local police or salaried
firefighters' relief association has been consolidated into the public employees police and fire fund.
If a municipality loses entitlement for amortization state aid and supplementary amortization
state aid in any year because of not having an additional municipal contribution under section
353A.09, subdivision 5, paragraph (b), the municipality is not entitled to the aid amounts in any
subsequent year. A municipality that received amortization aid in 1999 and is required to make an
additional municipal contribution under section 353.665, subdivision 8, continues to qualify for
the amortization state aid and the supplemental amortization aid until December 31, 2009.
    Subd. 3. Reallocation of amortization or supplementary amortization state aid. (a)
Seventy percent of the difference between $5,720,000 and the current year amortization aid or
supplemental amortization aid distributed under subdivisions 1 and 1a that is not distributed for
any reason to a municipality for use by a local police or salaried fire relief association must be
distributed by the commissioner of revenue according to this paragraph. The commissioner shall
distribute 70 percent of the amounts derived under this paragraph to the Teachers Retirement
Association and 30 percent to the St. Paul Teachers Retirement Fund Association to fund the
unfunded actuarial accrued liabilities of the respective funds. These payments shall be made on
or before June 30 each fiscal year. The amount required under this paragraph is appropriated
annually from the general fund to the commissioner of revenue. If the St. Paul Teachers
Retirement Fund Association becomes fully funded, its eligibility for this aid ceases. Amounts
remaining in the undistributed balance account at the end of the biennium if aid eligibility ceases
cancel to the general fund.
    (b) In order to receive amortization and supplementary amortization aid under paragraph (a),
Independent School District No. 625, St. Paul, must make contributions to the St. Paul Teachers
Retirement Fund Association in accordance with the following schedule:

	Fiscal Year		Amount
	1996	$	0
	1997	$	0
	1998	$	200,000
	1999	$	400,000
	2000	$	600,000
	2001 and thereafter	$	800,000

    (c) Special School District No. 1, Minneapolis, and the city of Minneapolis must each make
contributions to the Teachers Retirement Association in accordance with the following schedule:

	Fiscal Year	City amount			School district amount
	1996	$	0		$	0
	1997	$	0		$	0
	1998	$	250,000		$	250,000
	1999	$	400,000		$	400,000
	2000	$	550,000		$	550,000
	2001	$	700,000		$	700,000
	2002	$	850,000		$	850,000
	2003 and thereafter	$	1,000,000		$	1,000,000

    (d) Money contributed under paragraph (a) and either paragraph (b) or (c), as applicable,
must be credited to a separate account in the applicable teachers retirement fund and may not be
used in determining any benefit increases. The separate account terminates for a fund when the
aid payments to the fund under paragraph (a) cease.
    (e) Thirty percent of the difference between $5,720,000 and the current year amortization
aid or supplemental amortization aid under subdivisions 1 and 1a that is not distributed for any
reason to a municipality for use by a local police or salaried firefighter relief association must be
distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to support a
minimum fire state aid amount for volunteer firefighter relief associations. The amount required
under this paragraph is appropriated annually to the commissioner of revenue.
    Subd. 4. Limit on certain total aid amounts. (a) The total of amortization aid, supplemental
amortization aid, and additional amortization aid under this section payable to a municipality to
which section 353.665, subdivision 8, paragraph (b), applies, may not exceed the amount of the
additional municipal contribution payable by an individual municipality under section 353.665,
subdivision 8 , paragraph (b).
(b) Any aid amount in excess of the limit under this subdivision for an individual municipality
must be redistributed to the other municipalities to which section 353.665, subdivision 8,
paragraph (b), applies. The excess aid must be distributed in proportion to each municipality's
additional municipal contribution under section 353.665, subdivision 8, paragraph (b).
(c) When the total aid for each municipality under this section equals the limit under
paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.
    Subd. 5. Termination of state aid programs. The amortization state aid, supplemental
amortization state aid, and additional amortization state aid programs terminate as of the
December 31, next following the date of the actuarial valuation when the assets of the St. Paul
Teachers Retirement Fund Association equal the actuarial accrued liability of that plan or
December 31, 2009, whichever is later.
History: 1980 c 607 art 15 s 5; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1985 c 261 s
5; 1986 c 359 s 17; 1991 c 345 art 1 s 92; 1992 c 437 s 1; 1992 c 511 art 4 s 23; 1994 c 465 art 3
s 58; 1996 c 390 s 35; 1996 c 438 art 4 s 8,9; 1997 c 241 art 9 s 1; 1999 c 222 art 4 s 15-18; 2000
c 461 art 9 s 1-3; 2002 c 392 art 11 s 52; 2006 c 277 art 3 s 42; 2007 c 134 art 1 s 12,13

423A.03 [Repealed, 2002 c 392 art 1 s 9]

423A.04 ALTERNATIVE BENEFIT INCREASE.
Notwithstanding any provision of law to the contrary, and in lieu of the benefit increase
provided for in section 423A.01, subdivision 3, the governing body of a participating municipality,
except the city of Minneapolis, is authorized by resolution approved by a majority of the
members of the governing body, following consideration of an actuarial analysis of the effect
of any change, to increase the service pension or retirement benefits provided by or modify any
provision of the benefit plan of either a police relief association or a salaried firefighters' relief
association unless the municipality elects to retain the local relief association by the adoption
of a municipal resolution pursuant to section 423A.01, subdivision 1. The total cost of any
increase or modification, including amortization by December 31, 2010, shall not exceed 1.26
percent of covered payroll.
History: 1980 c 607 art 15 s 7; 1981 c 224 s 207

423A.05 CLARIFICATION OF INTERPRETATION ON AUTHORITY TO APPROVE
ALTERNATIVE BENEFIT INCREASE.
No provision of section 645.021, or Laws 1980, chapter 607, article XV, section 7 or 25,
shall be construed as authorizing any municipality which approved an alternative benefit increase
for a local police or salaried firefighters' relief association located in the municipality and which
complied with section 645.021, subdivision 3, to amend, modify, or revoke that approval or
substitute a different alternative benefit increase for the alternative benefit increase which was
previously approved.
History: 1982 c 574 s 7

423A.06 MINIMUM DISABILITY BENEFIT COVERAGE FOR CERTAIN POLICE
OFFICERS AND FIREFIGHTERS.
    Subdivision 1. Disability benefit coverage. Notwithstanding any provision of law, municipal
charter, municipal ordinance, municipal resolution, relief association articles of incorporation
or relief association bylaws to the contrary, any person who is a member of a covered local
police or salaried firefighters' relief association enumerated in subdivision 3 where the governing
body of the appropriate municipality has approved the modification in the benefit plan of the
relief association and who becomes disabled in the line of duty, or not in the line of duty, if the
benefit is subject to the provisions of this section as specified in subdivision 3, as that disability
is defined in and as that disability is determined pursuant to the statute, special law, articles of
incorporation or bylaws governing the relief association, shall be entitled to a disability benefit
calculated pursuant to subdivision 2.
    Subd. 2. Disability benefit amount. The amount of the monthly disability benefit shall be
equal to 40 percent of the salary payable by the municipality on the date of disability to a top
grade patrol officer or a top grade firefighter, whichever is applicable. If the service pension
payable to retiring members by the relief association is subject to annual automatic postretirement
adjustments or is in any fashion escalated, the disability benefit shall also be adjusted or escalated
in the same manner, at the same times, and in the same amounts as service pensions are adjusted
or escalated.
    Subd. 3. Covered relief associations and covered type of disability benefit. The provisions
of this section shall apply to the active members of a local police or salaried firefighters' relief
association contained in the following enumeration of covered relief associations if the governing
body of the applicable municipality approves the modification in the benefit plan of the relief
association specified in this section following consideration of an actuarial valuation which is,
or an actuarial estimate based on the most recent actuarial valuation which was, prepared in
accordance with sections 356.215 and 356.216, based on the benefit plan of the appropriate
local relief association including the modification provided for in this subdivision and files a
resolution indicating approval of the modification in the benefit plan with the secretary of state,
the commissioner of commerce, and the executive director of the legislative commission on
pensions and retirement on or before the first day of the tenth full month following March 24,
1982, and shall apply to the type or types of disability benefit coverage indicated:
(a) Chisholm Firefighters' Relief Association, disability not in the line of duty benefit;
(b) Crookston Firefighters' Relief Association, disability not in the line of duty benefit;
(c) Fairmont Police Relief Association, disability in the line of duty benefit and disability not
in the line of duty benefit;
(d) Hibbing Firefighters' Relief Association, disability in the line of duty benefit and
disability not in the line of duty benefit;
(e) Hibbing Police Relief Association, disability in the line of duty benefit and disability not
in the line of duty benefit;
(f) Virginia Police Relief Association, disability in the line of duty benefit and disability
not in the line of duty benefit; and
(g) West St. Paul Police Relief Association, disability in the line of duty benefit and disability
not in the line of duty benefit.
History: 1982 c 610 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 359 s 26

423A.07 ADDITIONS TO BOARD.
Notwithstanding any other law, each local police and salaried firefighters' relief association
may amend its bylaws and its articles of incorporation, as necessary, to provide for the inclusion
of retirees on its board.
Upon adoption of the amendments, the relief association must file a copy of the amended
bylaws with the executive director of the Legislative Commission on Pensions and Retirement.
A relief association amending its articles of incorporation must comply with any statutory
requirements pertaining to the filing of amended articles of incorporation.
History: 1985 c 261 s 6; 1986 c 359 s 26

423A.10 POWERS OF CITY OFFICIALS LIMITED.
When the governing board of a firefighters or police relief association in any city shall
determine what is necessary to adequately protect, maintain and administer the firefighters or
police relief association, neither the governing body of the city nor any official of the city may
thereafter deny adequate representation therefor. Any duties performed by any member of the
association pursuant to the determination under this section are deemed to be fire or police duties.
History: 1982 c 578 art 1 s 11

423A.11 RECOMPUTATION OF A DISABILITY BENEFIT AS A SERVICE PENSION.
    Subdivision 1. Termination of disability benefit. The disability benefit of any disabled
member of a local police or salaried firefighters relief association, whichever is applicable, shall
terminate when the disabled member attains:
(a) the minimum age for the receipt of a service pension specified in the articles of
incorporation or the bylaws of the relief association, if the disabled member has credit for at least
the number of years of service for active duty which would entitle the disabled member to a
service pension in an amount equal to the amount of the disability benefit; or
(b) the age attained by the disabled member when the total number of years of service
credited for active duty and of years of receipt of a disability benefit equals the number of years of
service credit which would entitle the disabled member to a service pension in an amount equal to
the amount of the disability benefit, if the disabled member has credit for less than the number of
years of service for active duty which would entitle the disabled member to a service pension in
an amount equal to the amount of the disability benefit when the disabled member attains the
minimum age for the receipt of a service pension specified in the articles of incorporation or
the bylaws of the relief association.
    Subd. 2. Amount of disability benefit recomputed as a service pension. After the disability
benefit terminates, the disabled member shall be deemed to be a service pensioner and shall be
entitled to receive a service pension in an amount equal to the disability benefit without any benefit
offset required pursuant to any applicable provision of law, articles of incorporation or bylaws
which was payable by the relief association immediately prior to the date when the disability
benefit terminated pursuant to this section or the service pension otherwise payable based on
the service credit for active duty of the person, whichever amount is greater. The disability
benefit recomputed as a service pension shall be subject to any annual automatic postretirement
adjustments or escalation applicable to any other service pension payable by the relief association.
    Subd. 3. Limitation on disability benefit coverage. No relief association member who has
attained the age and acquired the service credit for termination of a disability benefit specified
in subdivision 1 shall be eligible for a disability benefit after that date. If a relief association
member who is ineligible for a disability benefit solely pursuant to the limitation set forth in this
subdivision becomes permanently unable to perform the duties of a police officer or a firefighter,
whichever is applicable, by virtue of a medically determinable illness or injury, the member shall
be eligible to a service pension in an amount equal to the amount of the disability benefit which
would have been paid had the person been entitled to a disability benefit, or the amount of the
service pension otherwise payable based on the service credit for active duty of the person,
whichever is greater.
History: 1982 c 610 s 3

423A.12 SERVICE CREDIT FOR PERIODS OF DISABILITY.
If the articles of incorporation or bylaws of a local police or salaried firefighters' relief
association, whichever is applicable, so provide, any relief association member who received a
disability benefit from the relief association on account of a medically determinable illness or
injury which was at the time of the determination of the disability expected to be of permanent
duration and who returned to active employment as a police officer or firefighter, whichever is
applicable, shall be entitled to receive service credit toward the calculation of a service pension
for the period or periods of the receipt of a disability benefit.
The maximum service credit which a relief association member may obtain pursuant to this
subdivision shall be that amount of service credit which, when added to the service credit of the
member for active duty, equals the amount of service credit which would entitle the member to
a service pension in an amount equal to the amount of the disability benefit provided by the
relief association.
History: 1982 c 610 s 4

423A.13 LESS HAZARDOUS DUTY EMPLOYMENT FOR MARGINALLY DISABLED
POLICE OFFICERS OR FIREFIGHTERS.
Every city in which a local police or salaried firefighters' relief association is located
shall make every reasonable attempt to provide less hazardous duty employment positions for
marginally or less severely disabled police officers or firefighters, which is applicable, in the
police department or in the fire department, whichever is applicable, with the same compensation,
fringe benefits and other terms and conditions of employment as the person would have otherwise
received currently as a regularly employed police officer or firefighter, which is applicable, of the
same rank and experience.
History: 1982 c 610 s 5

423A.14 OFFSETS FROM DISABILITY BENEFITS.
    Subdivision 1. Occurrence of offsets. If a police officer or firefighter, whichever is
applicable, who is a member of a local police or salaried firefighters' relief association becomes
disabled and is entitled to receive a disability benefit from the relief association and the disabled
person is also entitled to receive benefits pursuant to the workers' compensation law by virtue
of that disability, and the total of the disability benefit and the workers' compensation benefits
exceeds the salary which the disabled person received as of the date of the disability or the
salary currently payable to the same employment position or an employment position which is
substantially similar to the employment position which the person held as of the date of the
disability, whichever is greater, then the disability benefit of that person which is otherwise
payable shall be reduced to that amount which, when added to the workers' compensation
benefits, after deducting any amounts payable as attorney fees, medical benefits or rehabilitation
benefits, does not exceed the salary which the person received as of the date of the disability or
the salary currently payable to the same employment position or an employment position which
is substantially similar to the employment position which the person held as of the date of the
disability, whichever is greater.
    Subd. 2. Limitation. In no event shall the reduced disability benefit payable pursuant to the
requirements of subdivision 1 exceed the amount of the disability benefit otherwise payable
by the relief association without reference to subdivision 1 pursuant to the applicable statutes,
special laws, articles of incorporation and bylaws.
    Subd. 3. No offset for recomputed disability benefit. No offset pursuant to this section
shall be required after a disability benefit is recomputed as a service pension pursuant to section
423A.11.
    Subd. 4. Reporting requirement. Monthly, each city in which a local police or salaried
firefighters' relief association is located shall notify the secretary of the relief association of the
amounts payable to disabled police officers or firefighters, whichever is applicable, during the
month pursuant to the workers' compensation law.
    Subd. 5. Offset inapplicable in certain instances. If any reduction of benefits payable
pursuant to the workers' compensation law by virtue of the receipt of a disability benefit from a
local police or salaried firefighters' relief association is required pursuant to legislation enacted
by the 1982 regular session or by a subsequent regular or special session, the provisions of this
section shall not be applicable to any disability benefit recipient or any local police or salaried
firefighters' relief association.
History: 1982 c 610 s 6

423A.15 EFFECT OF PROVISIONS FOR EXISTING DISABILITY BENEFIT
RECIPIENTS.
The provisions of section 423A.06 shall apply to any member of any applicable local relief
association in active service on or after March 24, 1982. The provisions of section 423A.11
shall apply to any person receiving a disability benefit from a local relief association on or after
March 24, 1982. The provisions of section 423A.12 shall apply to any person who returns to
active employment as a police officer or firefighter, whichever is applicable, after receipt of a
permanent disability benefit. The provisions of section 423A.14 shall apply to any person who
first commences receipt of a disability benefit after March 24, 1982.
History: 1982 c 610 s 7; 1985 c 261 s 7

423A.16 EXEMPTION FROM ASSIGNMENTS; PROCESS.
Notwithstanding any law to the contrary, none of the money, annuities, or other benefits
provided by any police or salaried firefighters' relief association shall be assignable in law or in
equity, nor be subject to execution, levy, attachment, garnishment, or other legal process, except
as provided in section 518.58, 518.581, or 518A.53.
History: 1984 c 547 s 13; 1988 c 668 s 8; 1997 c 203 art 6 s 92; 2005 c 164 s 29; 1Sp2005 c
7 s 28

423A.17 CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON REMARRIAGE.
(a) Notwithstanding a provision of law, article of incorporation, or bylaw governing a
local police or salaried firefighters relief association to the contrary, the governing body of a
municipality may mandate the applicable local police or salaried firefighters relief association to
provide that a surviving spouse benefit is payable for the life of the surviving spouse and remains
payable even in the event of the remarriage of the surviving spouse.
(b) If the surviving spouse benefit change described in paragraph (a) is made, the change
applies to a surviving spouse benefit payable on the effective date of the change and to the
potential surviving spouses of all active, deferred, or retired members of the relief association
who have that status on the effective date of the change.
(c) In addition, if the surviving spouse benefit change described in paragraph (a) is made
a person who formerly was receiving surviving spouse benefits from the relief association and
who had those benefits discontinued by virtue of the remarriage is entitled, upon application, to a
resumption of the surviving spouse benefit, beginning with the last day of the month following
receipt of the application by the secretary of the relief association. Nothing in this section
authorizes the payment of a benefit amount to an estate.
(d) The change must be made by a municipal resolution adopted by a majority vote of the
municipality. The resolution must be filed by the secretary of the relief association with the
executive director of the Legislative Commission on Pensions and Retirement, the state auditor,
and the secretary of state.
History: 1991 c 269 art 1 s 2; 1994 c 491 art 1 s 1; 2002 c 392 art 1 s 4

423A.171 BYLAW AMENDMENTS.
(a) Notwithstanding a provision of law governing a local police or salaried firefighters'
relief association to the contrary, the board of trustees of a local relief association governed by
section 69.77 or its successor board under chapter 353A or 353B, with municipal approval as
provided in section 69.77, subdivision 11, may amend the bylaws of the relief association to
provide that a surviving spouse benefit is payable to a surviving spouse who married a deferred
or retired member after the member's retirement, provided the marriage occurred at least five
years before the death of the member.
(b) If the surviving spouse benefit change described in paragraph (a) is made, the change
applies to a surviving spouse benefit payable on the effective date of the change and to the
potential surviving spouses of all deferred or retired members of the relief association who have
that status on the effective date of the change.
(c) The bylaw amendment is not effective until a certified copy of the amendment and
the municipal approval has been filed by the municipal clerk with the executive director of the
legislative commission on pensions and retirement, the state auditor, and the secretary of state.
(d) Notwithstanding the provisions of section 353B.11, a surviving spouse benefit change
made under this section for a relief association that has consolidated with the Public Employees
Retirement Association is effective upon approval by the Public Employees Retirement
Association and the municipality under paragraph (c).
History: 1994 c 528 art 6 s 1; 2002 c 392 art 1 s 5

423A.18 MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON DEATH;
AUTHORITY TO IMPLEMENT BENEFIT.
(a) Notwithstanding any law to the contrary, for a local police or salaried firefighters relief
association that implements the provision with municipal approval as provided in paragraph (c),
if an active, deferred, or retired member of the relief 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.
(b) The refund under paragraph (a) is an amount equal to the member contributions to the
credit of the decedent, plus interest on those contributions at an annual compound 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.
(c) The benefit under this section must be implemented by an amendment to the bylaws of
the relief association, with municipal approval as provided in section 69.77, subdivision 11. The
bylaw amendment is not effective until a certified copy of the amendment and the municipal
approval has been filed by the municipal clerk with the executive director of the Legislative
Commission on Pensions and Retirement, the state auditor, and the secretary of state.
History: 1991 c 290 s 1; 2002 c 392 art 1 s 8

423A.19 REDUCED VESTING REQUIREMENT.
    Subdivision 1. Reduced vesting. Notwithstanding any law to the contrary, for a police or
salaried firefighters relief association that implements the provision with municipal approval
as provided in subdivision 4, a person with at least five years of service credited by the relief
association is entitled, upon termination of active service and reaching at least the required
normal retirement age, to receive a pro rata monthly service pension. The pro rata monthly service
pension must be calculated in the amount and manner specified by the board of trustees, but not to
exceed that portion of the service pension payable upon meeting the minimum age and years of
service requirements that bears the same relationship that the person's actual years and portions
of years of service bear to the minimum service requirement.
    Subd. 2. Survivor benefit coverage. A person entitled to or receiving a reduced vesting
service pension as provided in subdivision 1 is entitled to surviving spouse benefit coverage,
surviving child benefit coverage, or both, if all other qualification requirements are met. The
survivor benefit must be calculated in the amount and manner specified by the board of trustees,
but not to exceed that portion of survivor benefit payable to a survivor of a deceased retired
member who had met the minimum years of service requirement that bears the same relationship
that the actual years and portions of years of service of the person bear to the minimum service
requirement for a service pension.
    Subd. 3. Postretirement adjustments. A reduced vesting service pension as provided in
subdivision 1 or a survivor benefit payable on behalf of a deceased person entitled to or receiving
a reduced vesting service pension as provided in subdivision 2 is entitled to postretirement
adjustments if the comparable pension or benefit payable when the full minimum service
requirement has been met is subject to postretirement adjustments. The postretirement adjustment
must be the same percentage increase as the postretirement adjustment for the comparable pension
or benefit payable when the full minimum service requirement has been met.
    Subd. 4. Implementation. The reduced vesting requirement must be implemented by a local
relief association through an amendment to the bylaws of the relief association with approval
by the governing body of the municipality as required by section 69.77, subdivision 11. The
bylaw amendment may not be effective until a certified copy of it and the municipal approval has
been filed by the municipal clerk with the executive director of the Legislative Commission on
Pensions and Retirement, the state auditor, and the secretary of state.
History: 1987 c 372 art 9 s 36; 2002 c 392 art 1 s 8

423A.20 VESTING UPON LAYOFF.
Notwithstanding any general or special law to the contrary, if a member of a salaried
firefighters' relief association with ten or more years of service is laid off and replaced with a
volunteer firefighter, the member shall be entitled to receive a pro rata monthly benefit. For
purposes of this section, "laid off" means terminated from employment with the fire department
because of a shortage of funds or curtailment of service or for any other reason not reflecting
discredit on the member beyond the member's control.
The retirement benefit is to commence at the later of either the minimum age for retirement
or the date at which the member would have accumulated the minimum number of years of
service for retirement if the member had remained on duty.
The pro rata benefit shall be calculated by multiplying the amount of the benefit payable to a
member who met the minimum age and years of service requirements for a normal pension by the
ratio of the laid off member's actual years of service to the minimum years of service required for
retirement. The initial benefit payable shall be subject to the same postretirement adjustments as
other benefits payable from the relief association.
History: 1984 c 574 s 14

423A.21 RECORDS; BOARD REPRESENTATION; FIDUCIARY RESPONSIBILITY.
    Subdivision 1. Records. A local relief association is subject to the provisions of chapter 6
relating to audits by the state auditor, the provisions of chapter 13, and the provisions of sections
15.17, 138.163, and 138.17 relating to the creation and retention of official and public records.
The records of the special fund and the bylaws of the relief association shall be public and shall be
open for inspection by any member of the relief association, any officer or employee of the state
or the municipality, or any member of the public, at reasonable times and places.
    Subd. 2. Municipal representation. Notwithstanding any other law, the membership of the
board of trustees shall include at least two members appointed by the municipality. The members
appointed by the municipality shall have all the rights and privileges of board membership
including full voting powers. No relief association shall reduce the number of municipal
representatives on its board by reason of this subdivision.
Notwithstanding any law which designates certain officials as ex officio members of a
board of trustees, the municipality may appoint the same number of members as it is authorized
to have on the board in the laws governing the relief association as of March 20, 1986, but the
municipality may appoint to those positions any individuals it so chooses.
Whenever the board of trustees appoints an investment subcommittee at least one of the
municipal representatives must be a member of that investment subcommittee.
    Subd. 3. Public officers. The officers and trustees of a local relief association are public
officers for purposes of sections 471.87 and 609.43.
    Subd. 4. Fiduciary responsibility. In the discharge of their respective duties, the officers
and trustees shall be held to the standard of care enumerated in section 11A.09. In addition, the
trustees must act in accordance with chapter 356A.
Each member of the board is a fiduciary and shall undertake all fiduciary activities in
accordance with the standard of care of section 11A.09, and in a manner consistent with chapter
356A. No fiduciary of a relief association shall cause a relief association to engage in a transaction
if the fiduciary knows or should know that a transaction constitutes one of the following direct or
indirect transactions:
(1) sale or exchange or leasing of any real property between the relief association and a
board member;
(2) lending of money or other extension of credit between the relief association and a board
member or member of the relief association;
(3) furnishing of goods, services, or facilities between the relief association and a board
member; or
(4) transfer to a board member, or use by or for the benefit of a board member, of any assets
of the relief association. Transfer of assets does not mean the payment of relief association
benefits or administrative expenses permitted by law.
History: 1986 c 359 s 15; 1989 c 319 art 8 s 24

423A.22 REPORTS; FINANCIAL TRANSACTIONS.
    Subdivision 1. Reports. The board shall report to the municipality at least annually regarding
each of the following:
(1) the required municipal support for the relief association required pursuant to section
69.77;
(2) the financial condition of the relief association according to the audited financial
statements required pursuant to section 69.051;
(3) investment objectives and performance;
(4) surety bond amounts for its secretary and treasurer required pursuant to section 69.051,
subdivision 4 ; and
(5) the annual administrative budget for relief associations.
    Subd. 2. Relief association receipts and disbursements. An official designated by the
municipality shall receive and deposit all money received for the special fund of the relief
association and may countersign all disbursements from the accounts of the special fund of the
relief association, but must countersign all disbursements of at least $5,000. If an institution with
trustee powers is hired to administer the financial affairs of the relief association, an official
designated by the municipality must approve the trustee agreement and shall countersign
authorizations for disbursements of at least $5,000.
History: 1986 c 359 s 16