2005 Minnesota Statutes

     423B.01 Minneapolis Police Relief Association; 
  definitions. 

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

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

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

    Subd. 4.    Age.  "Age" means a person's age at the 
 person's latest birthday. 

    Subd. 4a.  MS 2002 Expired 

    Subd. 5.    Annual postretirement payment.  "Annual 
 postretirement payment" means the payment of a lump sum 
 postretirement benefit under section 423B.15 to an eligible 
 member on June 1 following the determination date in any year. 

    Subd. 6.    Association.  "Association" means the 
 Minneapolis Police Relief Association. 

    Subd. 7.    City.  "City" means the city of Minneapolis. 

    Subd. 8.    Determination date.  "Determination date" 
 means December 31 of each year. 

    Subd. 9.    Disability.  "Disability" means a physical 
 or mental incapacity of an active member to perform the duties 
 of the person's position in the service of the police department.

    Subd. 10.    Discharge.  "Discharge" means a complete 
 separation from service in the police department. 

    Subd. 11.    Eligible member.  "Eligible member" means a 
 person, including a service pensioner, a disability pensioner, a 
 survivor, or dependent of a deceased active member, service 
 pensioner, or disability pensioner, who received a pension or 
 benefit from the relief association during the 12 months before 
 the determination date. 

    Subd. 12.    Excess investment income.  "Excess 
 investment income" means the amount, if any, by which the 
 average time weighted total rate of return earned by the fund in 
 the most recent prior five fiscal years has exceeded the actual 
 average percentage increase in the current monthly salary of a 
 first grade patrol officer in the most recent prior five fiscal 
 years plus two percent, and must be expressed as a dollar 
 amount.  The amount may not exceed one percent of the total 
 assets of the fund, except when the actuarial value of assets of 
 the fund according to the most recent annual actuarial valuation 
 prepared in accordance with sections 356.215 and 356.216 is 
 greater than 102 percent of its actuarial accrued liabilities, 
 in which case the amount must not exceed 1-1/2 percent of the 
 total assets of the fund, and does not exist unless the yearly 
 average percentage increase of the time weighted total rate of 
 return of the fund for the previous five years exceeds by two 
 percent the yearly average percentage increase in monthly salary 
 of a first grade patrol officer during the previous five 
 calendar years. 

    Subd. 13.    Fund.  "Fund" means the special fund of the 
 relief association. 

    Subd. 14.    Net excess asset amount payment.  "Net 
 excess asset amount payment" means the payment of an additional 
 postretirement payment under section 423B.151 to an eligible 
 member on June 1 following the determination date in the given 
 year. 

    Subd. 15.    Net total excess asset amount.  "Net total 
 excess asset amount" is the total excess asset amount stated in 
 dollars and multiplied by the quantity one minus the active 
 member percentage. 

    Subd. 16.    Retired member.  "Retired member" means a 
 former active member who has terminated active service in the 
 police department and who is entitled to receive a pension or 
 benefit under sections 423B.01 to 423B.18, as amended, or any 
 predecessor law. 

    Subd. 17.    Surviving spouse member.  "Surviving spouse 
 member" means the person who was the legally married spouse of 
 the member, who was residing with the decedent, and who was 
 married while or before the time the decedent was an active 
 member and was on the payroll of the police department, and who, 
 in case the deceased member was a pensioner or deferred 
 pensioner, was legally married to the member at least one year 
 before the decedent's termination of active service with the 
 police department.  The term does not include the surviving 
 spouse who has deserted a member or who has not been dependent 
 upon the member for support, nor does it include the surviving 
 common law spouse of a member. 

    Subd. 18.    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. 19.    Total excess asset amount.  (a) "Total 
 excess asset amount" means the difference, if positive, 
 expressed in dollars, between the fund's market value of assets 
 after any deductions required by section 423B.15, subdivision 2, 
 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 for the fund prepared in 
 accordance with sections 69.77, 356.215, and 356.216, with 
 adjustments required by section 423B.15, subdivision 2, equals 
 or exceeds 110 percent. 

    Subd. 20.    Unit.  "Unit" means one-eightieth of the 
 current monthly salary of a first grade patrol officer. 

    Subd. 21.    Actuarial equivalent.  "Actuarial 
 equivalent" or "actuarially equivalent" means the condition of 
 one annuity or benefit having an equal actuarial present value 
 as another annuity or benefit, determined as of a given date at 
 a specified age with each actuarial present value based on the 
 appropriate mortality table adopted by the board of directors 
 based on the experience of the fund and approved by the actuary 
 retained by the Legislative Commission on Pensions and 
 Retirement and using the applicable preretirement or 
 postretirement interest rate assumptions specified in section 
 356.216. 

    Subd. 22.    Covered salary.  "Salary" is subject to the 
 limitations of section 356.611. 

    HIST: 1992 c 471 art 1 s 1; 1996 c 438 art 4 s 10; 1997 c 233 
 art 4 s 1,2; 2000 c 461 art 17 s 1; 1Sp2001 c 10 art 6 s 19,21; 
 2002 c 392 art 7 s 3; 1Sp2003 c 12 art 6 s 5; 1Sp2005 c 8 art 1 
 s 28 

*   NOTE:  As of September 3, 2004, the Minneapolis City 
*Council had not filed with the secretary of state a certificate 
*of approval of an amendment to subdivision 12 made by Laws 2004, 
*chapter 267, article 18, section 3.  Accordingly, the amendment 
*is not included in the text here.  If a certificate is filed 
*before January 4, 2005, the amendment is effective the day after 
*its filing.  If the filing with the secretary of state does not 
*occur before January 4, 2005, the amendment is disapproved.  
*Minnesota Statutes, section 645.021, subdivision 3.  The current 
*filing status may be confirmed by the secretary of state's 
*office.