1.1                          A bill for an act 
  1.2             relating to retirement; Fairmont police relief 
  1.3             association; providing for an additional annual 
  1.4             postretirement adjustment mechanism; providing 
  1.5             benefits to all surviving spouses. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [FAIRMONT POLICE RELIEF ASSOCIATION.] 
  1.8      (a) Every recipient of a pension or benefit from the 
  1.9   Fairmont police relief association on June 30, annually, is 
  1.10  entitled to receive a postretirement adjustment as provided in 
  1.11  this section in addition to any pension or benefit increase by 
  1.12  virtue of an increase in the salary of active patrol officers in 
  1.13  the city of Fairmont on the following July 1. 
  1.14     (b) If the value of current assets of the relief 
  1.15  association is equal to at least 102 percent of the actuarial 
  1.16  accrued liability of the Fairmont police relief association as 
  1.17  of December 31 in the prior calendar year as calculated under 
  1.18  Minnesota Statutes, sections 356.215 and 356.216, two percent of 
  1.19  the value of current assets of the relief association is 
  1.20  available for the payment of the postretirement adjustment. 
  1.21     (c) The amount of the postretirement adjustment must be 
  1.22  calculated by the board of trustees of the relief association.  
  1.23  The postretirement adjustment amount is payable monthly.  The 
  1.24  total amount of all service pensions, disability pensions, and 
  1.25  survivor benefits, without inclusion of any postretirement 
  2.1   adjustment paid previously under this section must be calculated 
  2.2   and the percentage amount of each recipient's annual pension or 
  2.3   benefit of the total amount, expressed as four digits beyond the 
  2.4   decimal point, must be determined.  The monthly postretirement 
  2.5   adjustment payable to each pension or benefit recipient is 1/12 
  2.6   of the dollar amount determined by applying each recipient's 
  2.7   determined percentage of the total amount of pensions and 
  2.8   benefits to the total dollar amount available for payment as a 
  2.9   postretirement adjustment. 
  2.10     (d) The postretirement adjustment amount paid in any year 
  2.11  under this section does not compound and must not be added to 
  2.12  the pension base for the calculation of a subsequent 
  2.13  postretirement adjustment.  If a pension or benefit recipient 
  2.14  dies before the 12 monthly postretirement adjustments under this 
  2.15  section have been paid, the remaining monthly postretirement 
  2.16  adjustment payments cancel and nothing in this section 
  2.17  authorizes the payment of the postretirement adjustment to an 
  2.18  estate or to a person who did not qualify for a postretirement 
  2.19  adjustment in the person's own right. 
  2.20     (e) The secretary of the relief association will report the 
  2.21  total amount of benefits paid under this section to the 
  2.22  executive director of the legislative commission on pensions and 
  2.23  retirement, the city clerk, and the state auditor. 
  2.24     Sec. 2.  [FAIRMONT POLICE RELIEF ASSOCIATION; RETROACTIVITY 
  2.25  OF SURVIVING SPOUSE BENEFIT INCREASE.] 
  2.26     The surviving spouse benefit amount under Laws 1963, 
  2.27  chapter 423, is payable to all surviving spouses receiving 
  2.28  benefits as of the date of the approval of this act. 
  2.29     Sec. 3.  [FAIRMONT POLICE RELIEF ASSOCIATION; BYLAWS 
  2.30  AMENDMENTS REQUIRED.] 
  2.31     Sections 1 and 2 must be implemented by the appropriate 
  2.32  amendments to the bylaws of the Fairmont police relief 
  2.33  association. 
  2.34     Sec. 4.  [EFFECTIVE DATE.] 
  2.35     Sections 1 and 2 are effective on the day following 
  2.36  approval by the Fairmont city council and compliance with 
  3.1   Minnesota Statutes, section 645.021.