2006 Minnesota Statutes

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 under section 356.214
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.
History: 1Sp2001 c 10 art 15 s 1; 2002 c 231 s 1,2; 1Sp2005 c 8 art 1 s 29; 2006 c 271
art 3 s 47