2007 Minnesota Statutes

423B.151 EXCESS ASSET AMOUNT PAYMENT.
    Subdivision 1. Determination of net total excess amount. The board of the association
shall determine by May 1 of each year whether the fund has a total excess asset amount for that
year. If a total excess asset amount exists for the given year, the net total excess asset amount
shall be determined. The total excess asset amount and net total excess asset amount shall be
reported to the chief administrative officer of the association, 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 section must not be considered as income to or assets of the fund for
actuarial valuations of the fund for that year under sections 69.77, 356.215, 356.216, and Laws
2000, chapter 461, except to offset the amount distributed.
    Subd. 2. Total available for payment. Twenty percent of the net total excess asset amount
determined under subdivision 1 is available for excess asset amount payments under subdivision 3.
    Subd. 3. Net excess asset amount payments. Except as limited under subdivision 4, the
net excess asset amount payment to an eligible member is equal to the amount determined under
subdivision 2 multiplied by the units applicable to the eligible member and divided by the total
units of all eligible members.
    Subd. 4. Entitlement; priority. A person who is an eligible member for the entire 12 months
before the determination date is eligible for a full excess asset amount payment under subdivision
2. A person 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 after the
determination date and before the excess asset amount payment commences, the association must
pay the eligible member's excess asset amount payment to the eligible member's surviving spouse
or, if no surviving spouse, to the member's estate.
    Subd. 5. Payment method. The excess asset amount payments determined under this section
commence on June 1 following the determination date. These amounts may be paid as a lump
sum, disbursed to the eligible members in 12 equal monthly installments, or any other manner
which the board shall determine.
    Subd. 6. No guarantee of annual residual investment payment. No provision of Laws
2000, chapter 461, may be interpreted or relied upon by any member of the association to
guarantee or entitle a member to a net excess asset amount payment relating to any year in which
there is no net total excess asset amount.
History: 2000 c 461 art 17 s 2