Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 471-S.F.No. 2547 
           An act relating to retirement; Minneapolis police 
          relief association; recodifying the local laws 
          applicable to the local relief association; amending 
          Laws 1980, chapter 607, article XV, sections 8, 9, as 
          amended, and 10; Laws 1989, chapter 319, article 19, 
          sections 6 and 7, subdivisions 1 and 4, as amended; 
          and Laws 1990, chapter 589, article 1, section 6; 
          repealing Minnesota Statutes 1957, sections 423.71; 
          423.715; 423.72; 423.725; 423.73; 423.735; 423.74; 
          423.745; 423.75; 423.755; 423.76; 423.765; 423.77; 
          423.775; Special Laws 1891, chapter 143; Laws 1943, 
          chapter 280; Laws 1949, chapter 406; Laws 1953, 
          chapter 127; Laws 1957, chapters 721 and 939; Laws 
          1959, chapters 428 and 662; Laws 1961, chapter 532; 
          Laws 1963, chapter 315; Laws 1965, chapters 493, 520, 
          and 534; Laws 1967, chapters 820 and 825; Laws 1969, 
          chapters 258 and 560; Laws 1973, chapters 272 and 309; 
          Laws 1975, chapter 428; Laws 1980, chapter 607, 
          article XV, section 21; Laws 1983, chapter 88; Laws 
          1987, chapters 322, sections 2, 3, 4, 5, 6, 7, and 8; 
          and 372, article 2, sections 2, 3, 4, 6, and 15; Laws 
          1988, chapters 572, sections 3, 5, and 6; and 574, 
          sections 2, 4, and 5; Laws 1990, chapter 589, article 
          1, section 4; and Laws 1991, chapter 90.  
              BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                 MINNEAPOLIS POLICE RELIEF ASSOCIATION 

                       SPECIAL LAW RECODIFICATION 
    Section 1.  [MINNEAPOLIS POLICE RELIEF ASSOCIATION; 
DEFINITIONS.] 
    Subdivision 1.  [TERMS.] For purposes of this article, 
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.  [AGE.] "Age" means a person's age at the person's 
latest birthday. 
    Subd. 4.  [ANNUAL POSTRETIREMENT PAYMENT.] "Annual 
postretirement payment" means the payment of a lump sum 
postretirement benefit under section 15 to an eligible member on 
June 1 following the determination date in any year. 
    Subd. 5.  [DETERMINATION DATE.] "Determination date" means 
December 31 of each year. 
    Subd. 6.  [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. 7.  [DISCHARGE.] "Discharge" means a complete 
separation from service in the police department. 
    Subd. 8.  [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. 9.  [EXCESS INVESTMENT INCOME.] "Excess investment 
income" means the amount, if any, by which the time weighted 
total rate of return earned by the fund in the most recent 
fiscal year has exceeded the actual percentage increase in the 
current monthly salary of a first grade patrol officer in the 
most recent fiscal year plus two percent, and must be expressed 
as a dollar amount and may not exceed one 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. 10.  [FUND.] "Fund" means the special fund of the 
relief association. 
    Subd. 11.  [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 this article, as amended, or any predecessor law. 
    Subd. 12.  [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. 13.  [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 Minnesota Statutes, section 
11A.04, clause (11), and in effect on January 1, 1987. 
    Subd. 14.  [UNIT.] "Unit" means one-eightieth of the 
current monthly salary of a first grade patrol officer. 
    Sec. 2.  [EXCLUSION FROM MEMBERSHIP; POLICE CHIEF.] 
    (a) Notwithstanding any provision of law to the contrary, 
the chief of the police department of the city of Minneapolis is 
excluded from membership in the Minneapolis police relief 
association and the public employees police and fire fund, 
unless the person at the time of appointment is either a member 
of the Minneapolis police relief association or of the public 
employees police and fire fund, whichever applies.  In that 
case, the person may elect by irrevocable written application 
within 30 days of the person's appointment as chief of police to 
continue membership in the applicable pension fund.  
    (b) If the person is excluded from membership in the 
Minneapolis police relief association and the public employees 
police and fire fund by operation of this section, the city of 
Minneapolis may pay to the person compensation in addition to 
the salary allowed under any limitations imposed by law on the 
salaries of public employees, on the condition that the person 
agrees that the additional compensation must be deposited by the 
city in a deferred compensation program.  The additional 
compensation is the dollar amount equal to the employer 
contribution to meet the normal cost obligation of the 
Minneapolis police relief association as specified in the most 
recent actuarial valuation of the relief association prepared 
and reported under Minnesota Statutes, sections 69.77, 356.215, 
and 356.216, applied to the salary currently payable to a first 
grade patrol officer. 
    Sec. 3.  [LEAVE OF ABSENCE; CONTINUATION OF MEMBERSHIP.] 
    Subdivision 1.  [LEAVE OF ABSENCE.] A member of the police 
department who is an active member of the police relief 
association of the city of Minneapolis and who after January 1, 
1969, is elected to a public office of the city may apply for 
and must be granted a leave of absence from the police 
department during the time the person is an incumbent of the 
elective public office of the city. 
    Subd. 2.  [CONTINUATION OF MEMBERSHIP.] Upon obtaining a 
leave of absence provided in subdivision 1, a member with ten or 
more years of service in the police department and the police 
relief association has the option to continue active membership 
in the police relief association of the city of Minneapolis.  
This option applies to future service as well as past service.  
The member desiring to exercise this option must make 
application to the governing body of the association, must 
designate the period of service for which the person desires 
coverage, and must pay the employee contribution to the police 
relief association to the same extent that the member would have 
paid had the person been on active duty with the police 
department during that period. 
    Subd. 3.  [NO SIMULTANEOUS COVERAGE.] A payment into the 
pension fund as provided in subdivision 2 may not be made or 
accepted and pension credit may not be allowed for any period of 
time for which the member pays into or earns pension credit from 
any other Minnesota pension plan for public employees. 
    Subd. 4.  [WAIVER OF OTHER RIGHTS.] A qualified member who 
exercises the option provided in subdivision 2 and is at that 
time a contributing member of another retirement fund or relief 
association by whatever name known, organized under any other 
law, and supported in whole or in part by the taxes on the same 
city, shall waive all benefits from the other retirement fund or 
relief association, for concurrent time, and shall be entitled 
to receive a refund of the net accumulated contributions made by 
the member to the other retirement fund or relief association, 
with interest, regardless of the provision of any law, rule, 
bylaw, or other action permitting or requiring membership in the 
other retirement fund or relief association, however organized. 
    Sec. 4.  [RELIEF ASSOCIATION AND RETIREMENT FUND.] 
    Subdivision 1.  [RELIEF ASSOCIATION.] The active and 
retired members of the police department of the city of 
Minneapolis and their surviving spouses shall maintain the 
Minneapolis police relief association. 
    Subd. 2.  [PENSION FUND.] This association shall create, 
maintain, and administer a police officer's pension fund for the 
benefit of its members, and their survivors and beneficiaries.  
The sources of revenue of the fund are governed by section 6.  
The authorized disbursements from the fund are governed by 
section 7. 
    Subd. 3.  [MEMBERSHIP.] All members as defined in section 1 
are members of the Minneapolis police relief association. 
    Subd. 4.  [MANAGEMENT OF RELIEF ASSOCIATION AND FUND.] The 
board created in section 5 shall manage and control the fund. 
    Sec. 5.  [INCORPORATION, GOVERNMENT BY BOARD.] 
    Subdivision 1.  [MEMBERS, TERMS, ELECTIONS.] The 
association must be incorporated.  It must be governed by a 
board of nine members.  The Minneapolis city council shall 
appoint two persons to serve as members.  Those members must be 
appointed for a term of two years.  All city appointments are 
effective from January 1 in the odd-numbered years through 
December 31 in the even-numbered years.  The other members of 
the board must be elected by the members of the association.  
Board members elected from the active membership have a term of 
five years.  Board members elected from the retired or surviving 
spouse membership must have a term of three years.  An elective 
member of the board holds office until the person's successor is 
elected and has qualified.  A vacancy in the office of an 
elective member of the board must be filled by a special 
election called for that purpose.  There are three classes of 
board members, consisting of a class comprised of active board 
members, a class comprised of retired board members, and a class 
comprised of surviving spouse board members.  Active members of 
the relief association may only vote for active board member 
positions.  Retired members of the relief association may only 
vote for retired board member positions.  Surviving spouse 
members of the relief association may only vote for the 
surviving spouse board member positions.  Once established, a 
retired board member position and a surviving spouse board 
member position must remain as such. 
    In 1994, for the election for board member seat G, the 
board member position must be filled by a surviving spouse 
member.  In 1995, for the regular election for board member seat 
C, previously held by an active member, the board member 
position must be filled by a retired member.  In 1999, for the 
regular election for board member seat B, previously held by an 
active member, the board member position must be filled by a 
retired member.  
    The following sets forth the schedule for the election of 
the seven elected board member positions on the Minneapolis 
police relief association board: 
       Active board     Retired board     Surviving spouse 
       member position  member position   board member position
 year  five-year term   three-year term   three-year term
 1992                   seat C                  
 1993    seat A         seat E                        
 1994    seat B         seat F               seat G   
 1995                   seats C and D           
 1996                   seat E 
 1997                   seat F               seat G 
 1998    seat A         seats C and D  
 1999                   seats B and E  
 2000                   seat F               seat G 
 2001                   seats C and D  
 2002                   seats B and E  
 2003    seat A         seat F               seat G  
 2004                   seats C and D  
 2005                   seats B and E  
 2006                   seat F               seat G  
 2007                   seats C and D  
 2008    seat A         seats B and E  
 2009                   seat F               seat G  
 2010                   seats C and D  
    As long as there remains at least one active member on 
active duty with the Minneapolis police department, there must 
be a member of the board of directors from the active ranks in 
accordance with the election procedures outlined in this section.
    Subd. 2.  [ARTICLES OF INCORPORATION.] The affairs of the 
association must be regulated by its articles of incorporation 
and bylaws. 
    Subd. 3.  [CONTINUATION OF BOARD.] Notwithstanding the 
provisions of Minnesota Statutes, section 423A.01, subdivision 
2, or any other law, the board of trustees and its successors 
established under subdivision 1 shall continue to govern the 
association until there are no more than 100 members of the 
police pension fund.  The fund thereafter must become a trust 
fund in accordance with Minnesota Statutes, section 423A.01, 
subdivision 2. 
    Sec. 6.  [SOURCE OF FUNDS.] 
    Subdivision 1.  [SOURCES.] The fund is derived from the 
following sources: 
    (1) gifts provided to the fund; 
    (2) rewards received by active members; 
    (3) money coming into the hands of active members in their 
official capacity and remaining unclaimed for six months; 
    (4) proceeds from sales of property coming into the hands 
of active members in their official capacity and remaining 
unclaimed for six months, upon sale by the chief of police of 
the city; 
    (5) an amount equal to the minimum percentage specified in 
Minnesota Statutes, section 69.77, subdivision 2a, of the salary 
of a first grade patrol officer deducted from the monthly salary 
of each active member; 
    (6) all money derived from taxation as provided by 
Minnesota Statutes, sections 69.77, subdivisions 2b, 2c, 2d, 2e, 
and 2f; and 423A.01, subdivision 2; 
    (7) all money received from the state amortization aid 
programs under Minnesota Statutes, section 423A.02, to fund the 
unfunded actuarial accrued liability of the association; 
    (8) all money received from the state under Minnesota 
Statutes, chapter 69, as state police aid; 
    (9) all money provided by the state for the association in 
addition to clauses (7) and (8); 
    (10) all money derived from taxation by the municipality 
for the support of the association and the payment of pensions; 
and 
    (11) money from the investment of, earnings on, and 
interest on the assets of the fund. 
    Subd. 1a.  [SALES OF UNCLAIMED PROPERTY.] The chief of 
police of the city shall sell property coming into the hands of 
active members in their official capacity and remaining 
unclaimed for six months. 
    Subd. 2.  [CONTINUATION OF ASSETS.] Assets remaining in the 
fund at the close of a fiscal year continue. 
    Subd. 3.  [TAX LEVY LIMITS INAPPLICABLE.] (a) The amount of 
tax levies required under Minnesota Statutes, sections 69.77, 
and 423A.01, subdivision 2, must not be included as a part of 
the general tax levy for city purposes or in the calculation of 
any limitation of any percent of the assessed valuation upon 
which taxes are required to be extended. 
    (b) Any appropriation made to the fund from a city tax levy 
must not be considered a part of the cost of government as 
defined in the charter of the city. 
    Subd. 4.  [IMPACT ON OTHER LAWS.] No provision of this act 
may be construed as reducing the amount or rate of contribution 
to the association by the municipality or a member of the 
association from the minimum contributions prescribed by 
Minnesota Statutes, section 69.77. 
    Sec. 7.  [AUTHORIZED FUND DISBURSEMENTS.] 
    The police pension fund may be used only for the payment of:
    (1) service, disability, or dependency pensions; 
    (2) notwithstanding a contrary provision of Minnesota 
Statutes, section 69.80, the salary of the secretary of the 
association in an amount not to exceed 30 percent of the base 
salary of a first grade patrol officer, the salary of the 
president of the association in an amount not to exceed ten 
percent of the base salary of a first grade patrol officer, and 
the salaries of the other elected members of the board of 
trustees in an amount not to exceed three units; 
    (3) expenses of officers and employees of the association 
in connection with the protection of the fund; 
    (4) expenses of operating and maintaining the association; 
    (5) support for hospital and medical insurance for 
pensioners who have completed 20 years or more of service or 
permanent disabilitants and surviving spouses of deceased active 
members, disabilitants, or service pensioners who have completed 
20 years or more of service in an amount equal to one unit per 
month, to be added to the pension otherwise provided; 
    (6) health and welfare benefits of one unit per month in 
addition to other benefits for members who retired after July 1, 
1980, and have completed 20 years or more of service or for 
members who are permanent disabilitants; and 
    (7) other expenses authorized by Minnesota Statutes, 
section 69.80, or other applicable law. 
    Sec. 8.  [INSURANCE PLAN.] 
    The board of the association may adopt a hospital and 
medical insurance plan for pension and benefit recipients, to be 
funded by the participating pension and benefit recipients.  A 
pensioner or surviving spouse may authorize, in writing, a 
deduction from the person's pension or benefit for the insurance 
plan adopted by the association board. 
    Sec. 9.  [RELIEF ASSOCIATION SERVICE PENSIONS AND 
DISABILITY PENSIONS.] 
    Subdivision 1.  [MINNEAPOLIS POLICE; PERSONS ENTITLED TO 
RECEIVE.] The association shall grant pensions payable from the 
police pension fund in monthly installments to persons entitled 
to pensions in the manner and for the following purposes. 
    (a) An active member or a deferred pensioner who has 
performed duty as a member of the police department of the city 
for five years or more, upon written application after retiring 
from duty and reaching at least age 50, is entitled to be paid 
monthly for life a service pension equal to eight units.  For 
full years of service beyond five years, the service pension 
increases to a maximum of 40 units, as follows: 
  Sixth through 20th years       1.6 units per year of service 
  21st through 24th years        1.0 units per year of service 
  25th year                      4.0 units 
    Fractional years of service may not be used in computing 
pensions. 
    (b) An active member who after five years' service but less 
than 20 years' service with the police department of the city, 
becomes superannuated so as to be permanently unable to perform 
the person's assigned duties, is entitled to be paid monthly for 
life a superannuation pension equal to two units for five years 
of service and an additional two units for each full year of 
service over five years and less than 20 years. 
    (c) An active member who is not eligible for a service 
pension and who, while a member of the police department of the 
city, becomes diseased or sustains an injury while in the 
service that permanently unfits the member for the performance 
of police duties is entitled to be paid monthly for life a 
pension equal to 32 units while so disabled. 
    Subd. 2.  [DEATH REFUND.] No refund of member contributions 
is payable upon separation from service.  If an active member 
dies leaving no surviving spouse or children entitled to 
survivor benefits, the member's heirs, executors, or 
administrators are entitled to a refund of $100 for each 
completed year of service. 
    Subd. 3.  [SERVICE IN MILITARY FORCES, EFFECT.] (a) An 
applicant for a pension under subdivision 1, paragraph (a) or 
(b), who, after becoming an active member has served in the 
military forces of the United States in a war or national 
defense emergency after January 1, 1940, and thereafter returned 
honorably discharged from military service and resumed active 
membership in the association, is entitled to have the period 
that the applicant spent in military service counted in 
computing periods of service required for benefits under this 
section, but the total credit for military service involving 
service rendered after June 1, 1963, may not exceed six years. 
    (b) During the period of military service or defense 
emergency service, the person is not considered to be an active 
member of the association and is not entitled to any pension 
provided by subdivision 1, paragraphs (b) and (c). 
    (c) If the member does not return to employment in the 
police department of the city within one year from the time 
peace is declared or within one year from the termination of the 
period of emergency, whichever is later, the provisions of this 
subdivision do not apply. 
    (d) The provisions of this subdivision apply 
notwithstanding the provisions of the veteran's preference law 
or any other law, rule, or bylaw providing for credit for 
military service in computing the pensions for members of the 
Minneapolis police relief association. 
    Subd. 4.  [CERTIFICATE OF PHYSICIANS REQUIRED.] No member 
is entitled to a pension under subdivision 1, paragraph (b) or 
(c), except upon the certificate of two or more physicians or 
surgeons chosen by the governing board.  This certificate must 
set forth the cause, nature, and extent of the disability, 
disease, or injury of the member.  No active member may be 
awarded, granted, or paid a disability pension under subdivision 
1, paragraph (c), unless the certificate states that the 
disability, disease, or injury was incurred or sustained by the 
member while in the service of the police department of the 
city.  The certificate must be filed with the secretary of the 
association. 
    Subd. 5.  [MEMBER CONVICTED OF FELONY.] A member who has 
been convicted of a felony is not entitled to any pension during 
the period of incarceration in a penal institution as a 
punishment for the commission of a felony. 
    Sec. 10.  [SURVIVOR BENEFITS.] 
    Subdivision 1.  [ENTITLEMENT; BENEFIT AMOUNT.] (a) The 
surviving spouse of a deceased service pensioner, disability 
pensioner, deferred pensioner, superannuation pensioner, or 
active member, who was the legally married spouse of the 
decedent, residing with the decedent, and who was married while 
or before the time the decedent was on the payroll of the police 
department, and who, if the deceased member was a service or 
deferred pensioner, was legally married to the member for a 
period of at least one year before retirement from the police 
department, is entitled to a surviving spouse benefit.  The 
surviving spouse benefit is equal to 18 units per month if the 
person is the surviving spouse of a deceased active member or 
disabilitant.  The surviving spouse benefit is equal to 4.5 
units per month, plus an additional nine-tenths of one unit for 
each year of service to the credit of the decedent in excess of 
five years, to a maximum of 18 units per month, if the person is 
the surviving spouse of a deceased service pensioner, deferred 
pensioner, or superannuation pensioner.  The surviving spouse 
benefit is payable for the life of the surviving spouse. 
    (b) A surviving child of a deceased service pensioner, 
disability pensioner, deferred pensioner, superannuation 
pensioner, or active member, who was living while the decedent 
was an active member of the police department or was born within 
nine months after the decedent terminated active service in the 
police department, is entitled to a surviving child benefit.  
The surviving child benefit is equal to six units per month if 
the person is the surviving child of a deceased active member or 
disabilitant.  The surviving child benefit is equal to 1.5 units 
per month, plus an additional three-tenths of one unit per month 
for each year of service to the credit of the decedent in excess 
of five years, to a maximum of six units, if the person is the 
surviving child of a deceased service pensioner, deferred 
pensioner, or superannuation pensioner.  The surviving child 
benefit is payable until the person attains age 18, or, if in 
full-time attendance during the normal school year, in a school 
approved by the board of directors, until the person receives a 
bachelor's degree or attains the age of 22 years, whichever 
occurs first. 
    (c) The surviving spouse and surviving child benefits are 
subject to a family maximum benefit.  The family maximum benefit 
is 32 units per month. 
    Subd. 2.  [SURVIVOR BENEFIT COVERAGE FOR A MEMBER CONVICTED 
OF A FELONY.] The surviving spouse or a surviving child of a 
deceased member who was convicted of a felony may not be 
deprived of a survivor benefit by reason of the conviction 
unless the person was a party to the commission of the felony.  
For a member who is receiving a pension at the time of 
conviction, a survivor who was not a party to the commission of 
the felony remains entitled to receive the survivor benefit 
provided for in subdivision 1, in the event of the member's 
death. 
    Sec. 11.  [TEMPORARY DISABILITY BENEFITS.] 
    An active member who becomes disabled from performing 
duties as an active member of the police department of the city 
by reason of sickness or accident, who is off the payroll of the 
police department, and who has exhausted all accumulated 
vacation, overtime, and sick leave credits due to the member, is 
entitled to receive from the association temporary disability 
benefits in an amount as the bylaws of the association provide 
during the disability period.  The temporary disability benefits 
may not extend beyond a six-month period except when an active 
member is disabled because of an injury sustained while on duty 
and then benefits may extend for an indefinite time during the 
existence of the disability.  The bylaws may provide that an 
active member must have completed a minimum number of years of 
service in order to be entitled to temporary disability 
benefits.  Before temporary disability benefits may be paid or 
allowed, notice of the disability and application for benefits 
on account of the disability must be made to the secretary of 
the association within 90 days after the sickness or disability. 
    The bylaws may provide that an active member's periods of 
disability up to one year may be included in computing the 
member's total years of service for pension entitlement and 
benefit calculation purposes. 
    Sec. 12.  [MANDATORY RETIREMENT; CONSEQUENCE OF CONTINUED 
ACTIVE MEMBERSHIP.] 
    Notwithstanding the provisions of Minnesota Statutes, 
section 197.45, subdivision 2, and subject only to the 
provisions of Minnesota Statutes, section 423.075, an active 
member must retire upon attaining age 65, and upon attaining age 
65 must cease to be an active member of the association.  An 
active member who knowingly fails or refuses to comply with this 
section thereby renders the person and the person's survivors 
ineligible for any pension or benefits provided under this 
article, as amended.  A person who has ceased to be an active 
member of the association or has knowingly failed or refused to 
retire, is entitled only for the refund in an amount equal to 
$100 per year of service credit, payable in a lump sum. 
    Sec. 13.  [HEALTH AND WELFARE BENEFIT.] 
    Notwithstanding any law to the contrary, a person who, 
after July 1, 1980, retires on a service pension with at least 
20 years of service or a permanent disability benefit from the 
relief association is entitled on January 1, 1981, or upon the 
date of retirement, whichever occurs later, to receive a monthly 
health and welfare benefit.  The monthly health and welfare 
benefit is an amount equal to one unit.  The monthly health and 
welfare benefit is payable to the retired member unless the 
retired member designates in writing that the amount be paid to 
an insurance carrier to defray the cost of any health or welfare 
related insurance coverage. 
    Sec. 14.  [HEALTH INSURANCE ACCOUNT.] 
    (a) Notwithstanding any law to the contrary, contributions 
of active members of the relief association with at least 25 
years of service made after the 25th year of service must be 
deposited in a separate account and used to pay the future 
health insurance costs of the individual member upon that 
member's retirement. 
    (b) A member who retires with at least 25 years of service 
is entitled to receive periodic distributions from the remaining 
balance in the member's health insurance account, in the amount 
and with the frequency specified by the retiring member in 
conformance with rules adopted by the board of trustees for this 
purpose. 
    Sec. 15.  [INVESTMENT RELATED POSTRETIREMENT ADJUSTMENTS.] 
    Subdivision 1.  [ANNUAL POSTRETIREMENT PAYMENT AUTHORIZED.] 
Notwithstanding the provisions of Minnesota Statutes, chapter 
69, or any other law to the contrary, the relief association may 
provide annual postretirement payments to eligible members under 
this section. 
    Subd. 2.  [DETERMINATION OF EXCESS INVESTMENT INCOME.] The 
board of trustees of the relief association shall determine by 
May 1 of each year whether or not the fund has excess investment 
income.  The amount of excess investment income, if any, must be 
stated as a dollar amount and reported by the chief 
administrative officer of the relief association to 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 dollar 
amount of excess investment income up to one percent of the 
assets of the fund must be applied for the purpose specified in 
subdivision 3.  Excess investment income must not be considered 
as income to or assets of the fund for actuarial valuations of 
the fund for that year under Minnesota Statutes, sections 69.77, 
356.215, and 356.216 and the provisions of this section except 
to offset the annual postretirement payment.  Additional 
investment income is any realized or unrealized investment 
income other than the excess investment income and must be 
included in the actuarial valuations performed under Minnesota 
Statutes, sections 69.77, 356.215, and 356.216 and the 
provisions of this section. 
    Subd. 3.  [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 
amount determined under subdivision 2 must be applied in 
accordance with this subdivision.  The relief association shall 
apply the first one-half of excess investment income to the 
payment of an annual postretirement payment as specified in this 
subdivision.  The second one-half of excess investment income 
must be applied to reduce the state amortization state aid or 
supplementary amortization state aid payments otherwise due to 
the relief association under Minnesota Statutes, section 423A.02 
for the current calendar year.  The relief association shall pay 
an annual postretirement payment to all eligible members in an 
amount not to exceed one-half of one percent of the assets of 
the fund.  Payment of the annual postretirement payment must be 
in a lump sum amount on June 1 following the determination date 
in any year.  Payment of the annual postretirement payment may 
be made only if the time weighted total rate of return exceeds 
by two percent the actual percentage increase in the current 
monthly salary of a top grade patrol officer in the most recent 
fiscal year and 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 top grade patrol officer of the 
previous five years.  The total amount of all payments to 
members may not exceed the amount determined under this 
subdivision.  Payment to each eligible member must be calculated 
by dividing the total number of pension units to which eligible 
members are entitled into the excess investment income available 
for distribution to members, and then multiplying that result by 
the number of units to which each eligible member is entitled to 
determine each eligible member's annual postretirement payment.  
Payment to each eligible member may not exceed an amount equal 
to the total monthly benefit that the eligible member was 
entitled to in the prior year under the terms of the benefit 
plan of the relief association or each eligible member's 
proportionate share of the excess investment income, whichever 
is less. 
     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. 
    Subd. 4.  [ANNUAL POSTRETIREMENT PAYMENT IN THE EVENT OF 
DEATH.] In the event an eligible member dies after the 
determination date and before the payment of the annual 
postretirement payment, the chief administrative officer of the 
relief association shall pay that eligible member's estate the 
amount of the postretirement payment to which the eligible 
member was entitled. 
    Subd. 5.  [REPORT ON ANNUAL POSTRETIREMENT PAYMENT.] The 
chief administrative officer of the relief association shall 
prepare a report on the amount of all postretirement payments 
made under this section and the manner in which those payments 
were determined.  That report must be submitted to the state 
auditor, the executive director of the legislative commission on 
pensions and retirement, and the city clerk of the city. 
    Subd. 6.  [NO GUARANTEE OF ANNUAL POSTRETIREMENT 
PAYMENT.] No provision of or payment made under this section may 
be interpreted or relied upon by any member of the relief 
association to guarantee or entitle a member to annual 
postretirement payments for a period when no excess investment 
income is earned by the fund. 
    Sec. 16.  [SUIT FOR BENEFITS; BONDS.] 
    No person may sue for any pensions or benefits provided 
from the special fund of the relief association under this 
article, as amended, unless the person applying for a pension or 
benefit first posts a bond from a surety company competent to 
undertake the business in a sufficient amount to defray the 
expense of the governing board of defending the action.  In the 
event that the governing board is sustained, the portion of the 
bond necessary to defray these expenses is forfeited to the 
relief association. 
    Sec. 17.  [PAYMENTS EXEMPT FROM PROCESS.] 
    A payment made by the association under a provision of this 
article, as amended, is exempt from legal process except as 
provided in Minnesota Statutes, section 518.58, 518.581, or 
518.611.  No person entitled to a payment may assign the same.  
The association may not recognize an assignment or pay a sum on 
account of an assignment. 
    Sec. 18.  [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT 
PAYMENTS.] 
    Upon the death of the last benefit recipient and the 
certification by the chief administrative officer of the city of 
Minneapolis to the state auditor of the absence of any remaining 
person with a benefit entitlement, the assets of the relief 
association or trust fund, whichever applies, reverts to the 
city and may be used by the city only for law enforcement 
expenditure purposes. 
    Sec. 19.  [EFFECT ON ACCRUED BENEFITS AND BENEFITS 
PAYABLE.] 
    (a) The legislature intends by this article to recodify the 
prior local laws applicable to the Minneapolis police relief 
association. 
    (b) This article is not intended to increase or reduce the 
pensions or benefits currently payable to pension and benefit 
recipients of the Minneapolis police relief association.  All 
pensions and benefits payable from the Minneapolis police relief 
association in force on the effective date of this section as 
reflected in the records of the relief association as of that 
date continue. 
    (c) This article is not intended to modify, impair, or 
diminish the pension or benefit entitlements accrued or service 
credited to active or deferred members of the Minneapolis police 
relief association on the effective date of this article as 
reflected in the records of the relief association as of that 
date.  If the secretary of the relief association determines 
that any provision of this article does function to modify, 
impair, or diminish the pension or benefit entitlements that had 
been accrued or service that had been credited to an active or 
deferred relief association member, the secretary shall certify 
that determination and a recommendation as to the required 
legislative correction, if any, to the chairs of the legislative 
commission on pensions and retirement, the house governmental 
operations committee, the senate governmental operations 
committee, and to the executive director of the legislative 
commission on pensions and retirement. 
    Sec. 20.  [REPEALER.] 
    (a) Minnesota Statutes 1957, sections 423.71; 423.715; 
423.72; 423.725; 423.73; 423.735; 423.74; 423.745; 423.75; 
423.755; 423.76; 423.765; 423.77; and 423.775, are repealed. 
    (b) Special Laws 1891, chapter 143; Laws 1943, chapter 280; 
Laws 1949, chapter 406; Laws 1953, chapter 127; Laws 1957, 
chapters 721 and 939; Laws 1959, chapters 428 and 662; Laws 
1961, chapter 532; Laws 1963, chapter 315; Laws 1965, chapters 
493, 520, and 534; Laws 1967, chapters 820 and 825; Laws 1969, 
chapters 258 and 560; Laws 1973, chapters 272 and 309; Laws 
1975, chapter 428; Laws 1980, chapter 607, article XV, section 
21; Laws 1983, chapter 88; Laws 1987, chapters 322, sections 2, 
3, 4, 5, 6, 7, and 8; and 372, article 2, sections 2, 3, 4, 6, 
and 15; Laws 1988, chapters 572, sections 3, 5, and 6; and 574, 
sections 2, 4, and 5; Laws 1990, chapter 589, article 1, section 
4; and Laws 1991, chapter 90, are repealed. 
    Sec. 21.  [EFFECTIVE DATE.] 
    Sections 1 to 20 are effective upon approval by a majority 
of the city council of the city of Minneapolis and compliance 
with Minnesota Statutes, section 645.021, subdivision 3. 

                            ARTICLE 2       

                         CONFORMING AMENDMENTS 
    Section 1.  Laws 1980, chapter 607, article XV, section 8, 
is amended to read: 
    Sec. 8.  [MINNEAPOLIS POLICE AND FIREFIGHTERS RELIEF 
ASSOCIATIONS:  MINIMUM MEMBER CONTRIBUTION.] Notwithstanding any 
provision of Minnesota Statutes, Section 69.77, or any other law 
to the contrary, the minimum employee contribution to the 
special fund of the relief association for retirement and 
survivorship benefits by each member of the Minneapolis police 
relief association or the Minneapolis firefighters relief 
association, during the remaining term of covered employment by 
the member shall be seven percent of the maximum salary from 
which retirement and survivorship credits and amounts of 
benefits are determined, effective July 1, 1980, and eight 
percent effective January 1, 1981. 
    Sec. 2.  Laws 1980, chapter 607, article XV, section 9, as 
amended by Laws 1987, chapter 322, section 6, and chapter 372, 
article 2, section 5, is amended to read: 
     Sec. 9.  [MINNEAPOLIS POLICE AND FIRE; HEALTH AND WELFARE 
BENEFIT.] Notwithstanding any law to the contrary, any person 
who, after July 1, 1980, retires on a service pension with at 
least 20 years of service or a permanent disability benefit from 
the Minneapolis police relief association or the Minneapolis 
firefighters relief association shall be entitled on January 1, 
1981, or upon the date of retirement, whichever occurs later, to 
receive a monthly health and welfare benefit unless the city of 
Minneapolis elects to retain the local relief association by the 
adoption of a municipal resolution pursuant to section 4, 
subdivision 1.  The monthly health and welfare benefit shall be 
an amount equal to one unit as defined pursuant to Laws 1963, 
Chapter 315, Section 1, Subdivision 3, for the Minneapolis 
police relief association, or Minnesota Statutes, Section 69.45, 
for the Minneapolis firefighters relief association, whichever 
is applicable.  The monthly health and welfare benefit shall be 
paid to the retired member unless the retired member designates 
in writing that the amount be paid to an insurance carrier to 
defray the cost of any health or welfare related insurance 
coverage. 
    Sec. 3.  Laws 1980, chapter 607, article XV, section 10, is 
amended to read: 
    Sec. 10.  [DETERMINATION OF FINANCIAL REQUIREMENTS OF 
RELIEF ASSOCIATION AND MINIMUM MUNICIPAL OBLIGATION.] The 
officers of the Minneapolis police relief association and the 
Minneapolis firefighters relief association shall include in 
their determinations of the financial requirements of the relief 
association and the minimum obligation of the governmental 
subdivision submitted to the city of Minneapolis on or before 
September 1, 1980, pursuant to Minnesota Statutes, Section 
69.77, Subdivision 2, Clauses (2) and (3), the cost of the 
health and welfare benefit as estimated by the actuary of the 
respective relief association based on the most recent actuarial 
valuation of the relief association prepared pursuant to 
Minnesota Statutes, Sections 69.77, 356.215 and 356.216.  The 
city of Minneapolis shall provide sufficient financial support 
to each the relief association to meet the minimum obligation of 
the governmental subdivision including the cost of the health 
and welfare benefit, effective January 1, 1981. 
    Sec. 4.  Laws 1989, chapter 319, article 19, section 6, is 
amended to read: 
    Sec. 6.  [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT 
PAYMENTS.] 
    Upon the death of the last benefit recipient and the 
certification by the chief administrative officer of a the city 
of the first class with a population of more than 
300,000 Minneapolis to the state auditor of the absence of any 
remaining person with a benefit entitlement, the assets of 
the Minneapolis fire department relief association or trust 
fund, whichever applies, must revert to the city and may be used 
by the city only for law enforcement or firefighting expenditure 
purposes, whichever applies. 
    Sec. 5.  Laws 1989, chapter 319, article 19, section 7, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, each of the terms in this subdivision have the meanings 
given them in paragraphs (a) to (h). 
    (a) "Annual postretirement payment" means the payment of a 
lump sum postretirement benefit to an eligible member on June 1 
following the determination date in any year. 
    (b) "City" means a the city of the first class with a 
population of more than 300,000 Minneapolis. 
    (c) "Determination date" means December 31 of each year. 
    (d) "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.  
A person who received a pension or benefit for the entire 12 
months before the determination date are 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. 
    (e) "Excess investment income" means the amount by which 
the time weighted total rate of return earned by the fund in the 
most recent fiscal year has exceeded the actual percentage 
increase in the current monthly salary of a top grade patrol 
officer or top grade firefighter, whichever applies, in the most 
recent fiscal year 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 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 top grade patrol officer or top 
grade firefighter, whichever applies, during the previous five 
calendar years. 
    (f) "Fund" means a police relief association or 
firefighters the Minneapolis fire department relief association, 
whichever applies, located in the city and governed by Minnesota 
Statutes, section 69.77. 
    (g) "Relief association" means the police relief 
association or the firefighters Minneapolis fire department 
relief association, whichever applies, located in the city.  
    (h) "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 Minnesota 
Statutes, section 11A.04, clause (11), and in effect on January 
1, 1987. 
    Sec. 6.  Laws 1989, chapter 319, article 19, section 7, 
subdivision 4, as amended by Laws 1990, chapter 570, article 12, 
section 63, is amended to read: 
    Subd. 4.  [AMOUNT OF ANNUAL POSTRETIREMENT PAYMENT.] The 
amount determined under subdivision 3 must be applied in 
accordance with this subdivision.  The relief association shall 
apply the first one-half of one percent of assets which 
constitute excess investment income to the payment of an annual 
postretirement payment as specified in this subdivision.  The 
second one-half of one percent of assets which constitute excess 
investment income shall be applied to reduce the state 
amortization state aid or supplementary amortization state aid 
payments otherwise due to the relief association under section 
423A.02 for the current calendar year.  The relief association 
shall pay an annual postretirement payment to all eligible 
members in an amount not to exceed one-half of one percent of 
the assets of the fund.  Payment of the annual postretirement 
payment must be in a lump sum amount on June 1 following the 
determination date in any year.  Payment of the annual 
postretirement payment may be made only if the time weighted 
total rate of return exceeds by two percent the actual 
percentage increase in the current monthly salary of a top grade 
patrol officer or a top grade firefighter,whichever applies, in 
the most recent fiscal year and 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 top grade 
patrol officer or a top grade firefighter, whichever applies, of 
the previous five years.  The total amount of all payments to 
members may not exceed the amount determined under subdivision 
3.  Payment to each eligible member must be calculated by 
dividing the total number of pension units to which eligible 
members are entitled into the excess investment income available 
for distribution to members, and then multiplying that result by 
the number of units to which each eligible member is entitled to 
determine each eligible member's annual postretirement payment.  
Payment to each eligible member may not exceed an amount equal 
to the total monthly benefit that the eligible member was 
entitled to in the prior year under the terms of the benefit 
plan of the relief association or each eligible member's 
proportionate share of the excess investment income, whichever 
is less. 
    Sec. 7.  Laws 1990, chapter 589, article 1, section 6, is 
amended to read: 
    Sec. 6.  [HEALTH INSURANCE ACCOUNT.] 
    Notwithstanding any law to the contrary, contributions of 
members of the Minneapolis police relief association and the 
Minneapolis fire department relief association with 25 or more 
years of service shall be deposited in a separate account and 
used to pay the future health insurance costs of the individual 
member upon that member's retirement. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 1 to 7 are effective upon the effective date of 
article 1, section 21. 
    Presented to the governor April 14, 1992 
    Signed by the governor April 15, 1992, 1:22 p.m.