Loading...
9.1. SR 11-16-2015 EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 9.1 Agenda Section Meeting Date Prepared by Work Session November 16, 2015 Tim Simon, Finance Director Item Description Reviewed by Elk River Fire Relief Association By-law Update John Cunningham, Fire Chief Reviewed by Cal Portner, City Administrator Action Requested Review Elk River Fire Relief Association by-law updates. Background/Discussion City firefighters are members of the Elk River Fire Relief Association (ERFRA), the administrator of a single-employer, defined benefit pension plan. ERFRA is governed by a Board of Trustees made up of six members elected by the membership, the Mayor,finance director, and fire chief,who serve as Ex- officio voting members of the Board of Trustees. ERFRA has by-laws that act as operating procedures to ensure compliance with Minnesota Statute 424A. It has been several years since a complete by-law update has been completed. The Board of Trustees hired David Ganfield,Apple Valley Fire Relief Administrator and retired firefighter Bob Pearson to review our by-laws and provide recommendations on updates. Over the past year, the Board of Trustees reviewed the updates and they were approved on August 3. The Elk River firefighters approved them on October 29. Members of the Board of Trustees will be at the meeting to review the by-law updates with the City Council. Upon Council feedback the by-laws will go to a regular meeting for approval. Financial Impact N/A Attachments ■ Summary of changes ■ Elk River Relief Association by-laws (Updated) ■ Elk River Relief Association by-laws (Previous version) POWERED 6T Template Updoted 4/14 INAMIRE1 City of ElIk Memorandum T- ,1 r To: Mayor and City Council From: Bob Pearson, Secretary (ret.),Elk River Fire Department Relief Association Date: November 16, 2015 Subject: Bylaw Changes Summary Below is a summary of the proposed changes to the Elk River Fire Department Relief Association ("Association") bylaws: ■ The Association is adopting a Records Retention Schedule that is filed with the Minnesota Historical Society. Without an approved Records Retention Schedule, the Association is required to retain all records indefinitely. ■ Membership in the Association is automatic and concurrent with membership in the Fire Department. ■ Strengthened the sections on Leave of Absence and Military Leave. ■ Provides the option for the Association to create an Aid Committee. ■ Allows for meeting notices to be sent electronically. ■ The new bylaws are intended to dove-tail with new set of policies for the operation of the relief. An example of this would be Section 5.3, "Disbursements". The by- law state that disbursement of funds won't be issued until approved by the Board of Trustees. ■ Per the state auditor's office, changes were made to the payment of interest on a deferred service pension. Interest is paid based on the following criteria: ■ Anyone retiring with less than twenty years of service: No change you will not gain any interest. ■ Anyone retiring under 50 with twenty or more years of service: gain 3% interest for up to five years. ■ Anyone over 50 with twenty or more years of service: gain 3% interest for up to five years. ■ Our current bylaws state that if a firefighter over 50 retires and leaves their funds with the Association, they will collect no interest. This practice has been challenged in the courts and is now viewed as age discrimination. POWERED 6T N:APublic Bodies\Agenda Packets\11-16-2015\Final\x9.1 ot1 bylaw updote.docx INAMERE] Needless to say we are encouraged to replace it. The change provides the retiring firefighter time to wait for a more favorable market for investing. ■ Added language to outline the process for handling disbursements involving a divorce of a firefighter,including required forms and recovering costs for additional workload. ■ Added state/federal law references. N:APublic Bodies\Agenda Packets\11-16-2015\Final\x9.1 ot1 bylaw updote.docx BYLAWS Elk River Fire Department Relief Association BYLAWS OF THE ELK RIVER FIRE DEPARTMENT RELIEF ASSOCIATION This instrument constitutes the Bylaws of the Elk River Fire Department Relief Association in conformance with Minn. Stat. Chapter 424A and adopted for the purpose of regulating and managing the internal affairs of the corporation and shall serve as the written defined benefit pension pian for the relief association. PURPOSE The Purpose of the Elk River Fire Department Relief Association (Association)is to provide retirement relief and other benefits to its members and dependents. The Association is a governmental entity that receives and manages public money to provide retirement benefits for individuals providing the governmental services of firefighting and emergency first response. All benefits issued by this association shall be governed by these bylaws and federal and state laws. RECORDS The Association shall keep, at minimum, correct and complete copies of its articles of incorporation and bylaws, accounting records, records documenting Special Fund transactions, records necessary to determine benefits payable and paid to individual members and their beneficiaries, and minutes of each of its meetings that record the votes of actions taken. The Association's records shall be retained in accordance with the Records Retention Schedule filed with the Minnesota Historical Society. ARTICLE I MEMBERSHIP 1.1 Any regular or probationary active member of the Elk River Fire Department shall be eligible for membership in this Association. 1.2* Active members of the Elk River Fire Department shall automatically become members of the Association as of the date of hire with the Elk River Fire Department. 1.3 Classes of members. There shall be the following classes of members in the Association: 1.3.1 Active members. Active members are the members who are serving on active service in the performance of fire suppression duties or the supervision of fire suppression duties of the Elk River Fire Department. (a) Active Service Time shall be time served on active service as a member of the Elk River Fire Department other than while on suspension or on Leave of Absence. (b) Members are considered to be in good standing other than while on suspension or on Leave of Absence from the Association or the Elk River Fire Department. (c) Annually, the Board of Trustees shall request from the chief of the Elk River Fire Department a written certification indicating the number of months of active service for each member for the prior year. 1.3.2 Deferred members. Deferred members are those members who have served at least five (5) years of active duty as firefighters in the Elk River Fire Department, have separated from such service as firefighters and have been members in good standing of the Association at least five (5) consecutive years prior to separation from service, other than time on suspension and approved Leaves of Absence. 1.3.3 Retired members. Retired members are those members who have received service pensions from the Association. 1.3.4 Inactive members. Inactive members are those members who have separated from service as Fire Department but have not met the minimum years of service to be vested in the plan. 1.4 Dues. Active, Deferred and Retired members shall pay no dues. 1.5 Fraud. Any member who shall, in the opinion of a majority of the members of the Board of Trustees, fraudulently claim benefits from, or defraud or attempt to defraud the Association in any way, shall be suspended *Refer to Policies of the Board Page 1 BYLAWS Elk River Fire Department Relief Association from membership by the Board, and shall forfeit all further rights to benefits from the Association. 1.6 Leave of Absence. 1.6.1* Any member who is granted a leave of absence by the Elk River Fire Department shall during such leave not be entitled to receive any benefit whatever. If, after expiration of such leave, the member again becomes active in the Elk River Fire Department, the member will automatically be reinstated. 1.6.2 Leave of absence time is not considered active service time and shall be taken into account by the Chief in the annual certification to the Board of Trustees. 1.7* Military Leave. Any member who enlists or is drafted to enter the Armed Services of the United States of America shall retain all rights and benefits in the Association during the time of active military service. 1.7.1 Subject to restrictions stated in Minn. Stat. §424A.021, a volunteer firefighter who is absent from firefighting service due to service in the uniformed services, as defined in United States Code, title 38, section 4303(13), may obtain service credit not to exceed five years, unless a longer period is required under United States Code, title 38, section 4312. (1) To be eligible for service credit under this section, the volunteer firefighter must return to firefighting service with coverage by the Association upon discharge from service in the uniformed service within the time frame required in United States Code, title 38, section 4312(e). (2) Service credit is not authorized if the firefighter separates from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions. (3) Service credit is not authorized if the firefighter fails to provide notice to the fire department that the individual is leaving to provide service in the uniformed service, unless it is not feasible to provide that notice due to the emergency nature of the situation. 1.8 Termination of membership. Cause for termination shall include, but not be limited to, resignation or discharge from the Elk River Fire Department, failure to account for money belonging to the Association, feigning illness or injury. Terminated or expelled members cease accruing benefits as of the date of termination. 1.8.1 Active or suspended members may be terminated from the Association for cause by a two-thirds (2/3) vote of all the members present at a regular or special board meeting provided a quorum is present. Notice of the meeting and a written statement of the particular charges shall be given to the member at least 15 days, excluding the date of the meeting, in advance of the meeting. The member shall be given an opportunity to be heard at the meeting. ARTICLE II BOARD OF TRUSTEES 2.1 Board Composition. The Board of Trustees as specified under Minn. Stat. §424A.04, shall be composed of the following nine (9) persons: a President, a Vice President, a Secretary, a Treasurer, and two (2) general Trustees, each of whom shall be elected for a three-year term as specified in this Article, or until their successor has been elected and qualified, at the annual meeting of the Association from its members, and the statutory members: the Chief of the Elk River Fire Department, and one elected municipal official and one elected or appointed municipal official who are designated annually as municipal representatives by the City Council of the City of Elk River. 2.2 Terms of Office. The terms of office of the general Trustees and the officers shall be grouped as follows: (President and Trustee), (Vice President and Treasurer), (Secretary and Trustee). The terms shall be arranged so that one group shall be elected at each annual meeting. 2.2.1 Vacancy. If a vacancy, other than a vacancy caused by removal for cause of an officer or trustee, occurs during the term of office of any officer or elected trustee, the remaining members of the Board of Trustees shall elect a member of the Association to serve for the unexpired term of the vacated position. 2.3* Removal. An elected trustee or officer may be removed for cause. Cause for removal shall include, but shall not be limited to, the breach of the duties as set forth in Articles II and III of these Bylaws. One or more of the Trustees or officers may be removed at a meeting of the membership which has been called for that purpose by two- thirds (2/3) vote of those present and voting at such meeting, provided a quorum is present.Notice of the meeting and a written statement of the particular charges shall be given to each board member and shall include the purpose of the meeting. The general trustee or officer shall be furnished with a statement of the particular charges at least fifteen (15) days, excluding the date of the meeting, in advance of the meeting. At the meeting, the general trustee or officer shall be given an opportunity to be fully heard as to each charge. If a general trustee or officer is removed, a *Refer to Policies of the Board Page 2 BYLAWS Elk River Fire Department Relief Association replacement shall be elected at the same meeting, and such replacement shall serve out the unexpired term of the removed general trustee or officer. 2.4* It shall be the duty of the Board of Trustees to; I. Prepare modes and plans for the safe and profitable investment of the unappropriated funds of the Association, and whenever investments are made, to investigate and pass upon the securities offered and to attend to the drawing up and execution of the necessary papers. 2. Order an audit of the books and accounts of the Secretary and the Treasurer annually, according to law, 3. Complete required state reports and file with the Office of the State Auditor annually, And 4. Submit a written report of the condition of the Association to the members at the annual meeting. 2.5 The investment of the funds of the Association shall be in the exclusive control of the Board of Trustees, in conformance with Minn. Stat. §§69.775 and 356A.06. 2.5.1 The Board shall have on file a copy of the investment policy of the Association and file a copy of the investment policy, and all changes to the policy, with the Office of the State Auditor. 2.5.2 The Association shall provide annually to its broker a written statement of investment restrictions from the applicable state laws and the Association's investment policy. The broker must annually submit the Broker Certification form to the Association before the Association enters or continues business with said broker. 2.6* The members of the Board of Trustees shall act as Trustees with a fiduciary obligation to the members of the Association, to the City of Elk River and to the State of Minnesota. In the discharge of their respective duties, each Trustee of the Board of Trustees is a fiduciary and shall be held to the standard of care enumerated in Minn. Stat. §11A.09. In addition, the Trustees must act in accordance with Minn. Stat. Chapter 356A. No Trustee of the Association shall cause the relief association to engage in a transaction if the fiduciary knows or should know that a transaction constitutes one of the following direct or indirect transactions: (1) sale, exchange, or leasing of any real property between the relief association and a board member; (2) lending of money or other extension of credit between the relief association and a board member or member of the relief association; (3) furnishing of goods, services, or facilities between the relief association and a board member; or (4) transfer to a board member, or use by or for the benefit of a board member, of any assets of the relief association. Transfer of assets does not mean the payment of relief association benefits or administrative expenses permitted by law. 2.6.1 Prudent Person Standard. A fiduciary with this Association shall act in good faith and shall exercise that degree of judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence would exercise in the management of their own affairs, not for speculation, considering the probable safety of the plan capital as well as the probable investment return to be derived from the assets. 2.6.2 Continuing Fiduciary Education. A fiduciary of a covered pension plan shall make reasonable effort to obtain knowledge and skills sufficient to enable the fiduciary to perform fiduciary activities adequately. At a minimum, in accordance with Minn. Stat. §356A .13 the Board of Trustees shall develop and periodically revise a program for the continuing education of any of the board members and any of the chief administrative officers who are not reasonably considered to be experts with respect to their activities as fiduciaries. 2.7 Board Meetings The Board of Trustees shall hold at least four regular meetings during each year. 2.7.1 Place. A meeting of the Board of Trustees may be held at any place within this state designated by the Board. 2.7.2* Notice. Subject to waiver, notice of every meeting shall be sent by electronic communication by the Secretary to each Trustee entitled to vote at the meeting at least 5 but not more than 30 days before the meeting, excluding the date of the meeting, which sets forth the time,place, and in the case of a special meeting,purpose. A notice of meetings, including the date, time and location, shall be posted at city hall in accordance with the MN Open Meeting Law(§§ 13D.01, 13D.015, and 13D.04 through 13D.06). 2.7.3 Quorum. The presence of a majority of the members of the Board then serving shall constitute a quorum of the Board. (1) Subject to 2.7.3 (3), a quorum is necessary for the transaction of business at a meeting. (2) When a quorum is not present, any meeting may be adjourned from time to time for that reason. (3) When a quorum has been present at a meeting and members have withdrawn from the meeting so that less than a quorum remains, the members still present may continue to transact business until *Refer to Policies of the Board Page 3 BYLAWS Elk River Fire Department Relief Association adjournment. 2.7.4 Act by majority. An act of the majority of the Trustees present at a meeting and entitled to vote on the matter shall be required for an action. 2.7.5 Special meetings of the Board of Trustees may be called by the President, or by 2 members of the Board of Trustees. Trustees shall be notified by the Secretary of such special meetings, and the object of the meeting shall be contained in such notice and no other business shall be conducted. Special meetings must be held within 30 days of the request. ARTICLE III DUTIES OF THE OFFICERS 3.1* It shall be the duty of the President to: (1) Attend and preside at all meetings of the Association and the Board of Trustees. (2) Enforce the due observance of the Articles of Incorporation and Bylaws and see that the other officers properly perform the duties assigned to them. (3) Sign all documents requiring the signature of the President. (4) Be a member of all committees except the Aid Committee. (5) Exercise careful supervision over the affairs of the Association. 3.1.1 The President shall receive such salary as may be fixed from time to time by the Board of Trustees, subject to approval of the Association, and payable from the Special Fund of the Association. 3.2 It shall be the duty of the Vice President to: (1) Perform the duties of the President in the absence of the President. In the absence of both the President and the Vice President, it shall be the duty of the Board to elect a President Pro Tem, who shall perform the duties incident to the office. (2) Assist the President. (3) Be a member of the Aid Committee. 3.3* It shall be the duty of the Secretary to: (1) Keep a true and accurate record of the proceedings of all meetings of the Association and of the Board of Trustees. (2) Keep a correct record of all amendments, alterations, and additions to the Articles of Incorporation or the Bylaws in a separate book from the minute books of the Association. (3) Act as custodian of the records of the Association, sign its official papers, and perform such other duties as may be imposed by the Board of Trustees. (4) Cause due notice of all meetings of the Association and of the Board of Trustees to be given. (5) Submit a report in writing at each regular meeting of the Board of Trustees showing the names of all persons who have applied for membership or ceased to be members since the last report, the names of all persons to whom money has been paid, the amount, and the reason therefore. (6) Keep a roll of membership, with the date of joining, resignation, discharge, leaves of absence, dues or assessments paid, and relief or pensions furnished. (7) The Secretary's books shall be at all times open to inspection by the Board of Trustees and jointly with the Treasurer prepare and file all reports and statements required by law. 3.3.1 The Secretary shall receive such salary as may be fixed from time to time by the Board of Trustees, subject to approval of the Association, and payable from the Special Fund of the Association. 3.4* It shall be the duty of the Treasurer to: (1) Receive all funds belonging to the Association and hold them subject to the order of the President and the Board of Trustees. (2) Keep separate and distinct accounts of the Special and General Funds, and shall prepare and present to the Board of Trustees, a full and detailed statement of the assets and liabilities of each fund at each meeting of the Board of Trustees, and prior to the annual meeting of the Association. (3) Deliver to their successor in office, or to any committee appointed by the Board of Trustees to receive the same, all moneys, books, papers and other items pertaining to the office immediately upon expiration of the term of office. (4) Prior to entering upon the duties of the office, give a bond in such amount as required by law, Minn. Stat. *Refer to Policies of the Board Page 4 BYLAWS Elk River Fire Department Relief Association §69.051 subd. 2, and with such sureties as may be required and approved by the Board of Trustees, conditioned upon the faithful discharge of trust and the faithful performance of the duties of the office. Such bond shall be paid for from the Special Fund of the Association. (5) Jointly with the Secretary, the Treasurer shall prepare and file all reports and statements as required by law. 3.4.1 The Treasurer shall receive such salary as may be fixed by the Board of Trustees from time to time, subject to approval of the Association, and payable from the Special Fund of the Association. 3.5 It shall be the duty of the elected Trustees to assist the members of the Board of Trustees with their duties. 3.6* There may be an Aid Committee composed of the Vice President and two other members of the Association, who may or may not be members of the Board of Trustees, appointed by the Board of Trustees. The Vice President shall be the chair of this committee. The duty of the committee shall be to make provisions for the assistance to be rendered to each sick or disabled member, and to the survivors of any deceased member in accordance with the provisions of these Bylaws. 1. The Aid Committee shall establish the guidelines by which assistance shall be given and keep a copy of such guidelines filed with the Secretary. Any changes to this guideline must be approved by the membership at the Annual Meeting. 2. The Aid Committee members, other than the Chair, shall serve two year terms. They shall be elected from their members at the annual meeting during even years. 3. Other duties of the Aid Committee members shall be to inform members how to obtain AID. 4. Funding shall come from the General Fund. ARTICLE IV MEETINGS OF THE ASSOCIATION 4.1* Membership Meetings The annual meeting of the Association, for the election of officers and trustees for the upcoming calendar year, and other business, shall be held on the last Thursday of March of each year. 4.2 Special meetings of the Association may be called by the President, or by 2 members of the Board of Trustees, and shall also be called upon written request of 6 or more active members of the Association. Members shall be notified by the Secretary of such special meetings, and the object of the meeting shall be contained in such notice and no other business shall be conducted. Special meetings must be held within 30 days of the request. 4.3* Notice of the Association meetings and elections shall be given to all members entitled to vote at the meeting or election. Such notice shall be by electronic communication and state the time,place, and in case of a special meeting, the purpose, and be posted at each fire station not less than 5 nor more than 30 days before the meeting, excluding the date of the meeting. 4.4 Meeting quorum. (1) A quorum for meetings of members is forty(40%)percent of the active members of the Association. (2) Subject to 4.4.3, a quorum is necessary for the transaction of business at a meeting. (3) When a quorum has been present at a meeting and members have withdrawn from the meeting so that less than a quorum remains, the members still present may continue to transact business until adjournment. (4) When a quorum is not present, any meeting may be adjourned from time to time for that reason. 4.5 All reports and resolutions shall be submitted in writing, and no report shall be accepted unless it is the report of the majority of a committee,provided however, that the minority shall be permitted to present its view in writing. 4.6* All meetings shall be conducted according to Robert's Rules of Order, as revised. 4.7 Order of business. At the annual and any other Association meetings the order of business shall be as follows: 1. Call to order 2. Roll call 3. Reading of minutes of previous board meeting 4. Reading of Reports 5. Reports of Officers 6. Reports of Special Committees *Refer to Policies of the Board Page 5 BYLAWS Elk River Fire Department Relief Association 7. Unfinished business 8. Election of Officers or Trustees (annual meeting) 9. New business 10. Adjournment 4.8 Voting. Each active member in good standing shall be entitled to vote on any matter which the members vote upon. Neither cumulative voting nor voting by proxy shall be allowed. All votes, unless specified prior to the vote, shall be by voice vote. If a majority cannot be determined by voice vote, the chair shall call for a show of hands or conduct a vote by ballot. ARTICLE V FUNDS 5.1 Funds required. The Association shall maintain in its treasury a General Fund and a Special Fund. 5.1.1 General Fund. The General Fund shall be credited all moneys received from fines, entertainment revenues and any moneys or property donated, given, granted or devised by any person for unspecified uses. The General Fund may be used for any purpose including but not limited to the following: expenses of entertainment, dinners, dances, games, flowers for the sick or deceased members, expenses of administering the fund and for any and all purposes reasonably related to the welfare of the Association or its members as authorized by action of the Board of Trustees or by a majority of the members present and voting at any annual or special meeting of the members. 5.1.2 Special Fund. The Special Fund shall be credited with all fire state-aid moneys received pursuant to law, all taxes levied by or other revenue received from the City pursuant to law providing for municipal support for the Association, any moneys or property donated, given, granted or devised by any person which is specified for use for the support of the Special Fund, and any interest earned upon assets of the Special Fund. No disbursement shall be made from the Special Fund for any purpose except a purpose for which such Special Fund is held in trust consistent with provisions in the Articles of Incorporation or Bylaws, and administrative expenses as limited by Minn. Stat. §69.80. All other expenses of the Association shall be paid out of the General Fund. 5.2 Deposits. All money belonging to this Association shall be deposited to the credit of the association in such banks, trust companies or other depositories as the Board of Trustees may designate. The Board of Trustees shall make deposits in conformance with state statutes, the Bylaws and the investment policy. 5.3* Disbursements. No disbursement of the funds of this Association shall be issued until the claim to which it relates has been approved by the Board of Trustees. (1) All Special Fund checks or expenditures drawn by the Treasurer must be countersigned by the President or Secretary. ARTICLE VI BENEFITS 6.1 Service Pensions. 6.1.1* Eligibility requirements. To be eligible to receive a service pension, a member must meet all of the following requirements: (1) Be at least 50 years of age; (2) Have separated from active service with the Elk River Fire Department of the municipality of Elk River and ceased to perform or supervise fire suppression duties; (3) Have at least five (5)years of active service with such department before retirement; and (4) Have been a member of the Association in good standing at least five (5) consecutive years prior to separation from service, other than time on suspension and approved Leaves of Absence. 6.1.2 Service pension. Because of varying circumstances in each member's retirement planning, optional benefit payment methods are offered. Selection should occur after consultation with a tax consultant, financial planner, or an attorney. Each member meeting the requirements of 6.1.1 shall be entitled to a lump sum service pension. 20 years of service shall be the base service pension. At the time of application for retirement, a qualified member shall be entitled to payments from the Special Fund according to the following tables attached *Refer to Policies of the Board Page 6 BYLAWS Elk River Fire Department Relief Association as Addendum A: Table LS-15 Table LS-16 6.1.3* Application. Applications for service pensions or ancillary benefits shall be made in writing on forms supplied by the Secretary. The application shall be submitted to the Board of Trustees at a regular or special meeting of the Board. Applications shall be verified by an oath of the applicant and shall state the applicant meets each of the eligibility requirements set forth in 6.1.1. 6.1.4* Approval, amount of pension. It shall be the duty of the Board to approve applications for service pensions or ancillary benefits if the applicant meets all of the eligibility requirements set forth in 6.1.1. The service pension shall be payable at the rates set forth in 6.1.2. Payment shall be made from the Special Fund. (1) It shall also be the duty of the Board not to approve the application if any of the eligibility requirements are not met. If an application is not approved, the Board shall return the application to the applicant within 30 days, noting thereon, with particularity, which requirements the applicant does not meet. (2) Thereafter, the applicant shall be furnished the opportunity to be heard by the full Board, by filing a written intent to appeal with the Secretary within 30 days of receiving an adverse determination. (3) Upon receipt of the written intent to appeal, the Board of Trustees shall hold a special meeting within 60 days of receipt of the written intent to appeal. Timely notice of the meeting shall be given to the member at least 15 days prior to the special meeting. The member shall have the reasonable opportunity to be heard by the Board of Trustees at the special meeting with regard to the adverse determination. (4) The Board of Trustees reserve the right to engage the services of a mediator or arbitrator, acceptable to both parties, at any time during the appeal. The mediator or arbitrator shall be selected from the Rule 114 Supreme Court Roster. The cost of the mediator or arbitrator shall be split in half among both parties. (5) Determination of the Board shall be final after 6.1.4 (3) of such appeal. 6.1.5* Deferred service pension. A member of the Association who has completed at least five (5) years of active service with the Elk River Fire Department and at least five (5) years of active membership in the Association and who separates from active service and membership shall be entitled to a deferred service pension to commence upon reaching at least the age of 50 years and upon making a valid written application to the Association. The deferred service pension shall be payable as set forth in 6.1.2 except that: (1)Deferred members receiving the lump sum service pension as set forth in 6.1.8 shall have the lump sum payment based on the Lump Sum table in effect at the time of separation. (2) Members who have served the Elk River Fire Department 20 years or more shall receive interest on a deferred service pension for up to 5 years from the date of separation. As specified in MS 424A.02 subd. 7(c)(3), interest will be paid on the deferred lump sum service pension during the period of deferral at an interest rate of 3% compounded annually. (a) Interest is payable as specified in MS 424A.02 subd. 7(d), from the first day of the month next following the date on which the member separated from active service to the last day of the month immediately before the month in which the deferred member commences receipt of the deferred service pension. (3) Members who have served the Elk River Fire Department less than 20 years shall receive no interest on a deferred service pension. 6.1.6* Year of service. For the purpose of computing benefits, a"Year of Service" shall be defined as a period of 12 full months of active service in the Elk River Fire Department, beginning on the anniversary date when the member became an active member of said Fire Department. If a member's period of active service is not continuous,parts of years may be added together to complete full years. (1) Service credit for incomplete years of service, after the member's anniversary date, shall be prorated at the rate of 1/12 (8.333%)per complete month of active service,pursuant to Minn. Stat. §424A.02, Subd. 1. A "month"is a completed calendar month of active service measured from the member's date of entry to the same date in the subsequent month. 6.1.7 Surviving Spouse. "Surviving Spouse" means any person who was the dependent spouse of a deceased *Refer to Policies of the Board Page 7 BYLAWS Elk River Fire Department Relief Association member who was legally married to the member at the time of death. 6.1.8 Lump Sum Payment Options. Each member meeting the requirements of 6.1.1 shall be entitled to receive a lump sum service pension. The Board of Trustees may allow up to 90 days from the date of approval to make the payment. Alternate payment methods shall include: (1) A single lump sum check payment payable to the eligible retiree. (2) Lump Sum payment by the Association directly to a recognized insurance carrier licensed to do business in this state and approved for this product by the Commerce Commissioner under Minn. Stat. §60A.40. (3) Upon written request, the Association shall directly transfer the eligible member's lump sum pension to the member's individual retirement account under Section 408(a) of the Internal Revenue Code, as amended. 6.1.9 Supplemental Benefit. As described in Minn. Stat. §424A.10, the Association must pay a supplemental benefit to individuals who receive a lump sum distribution of pension or ancillary benefits for service performed as a volunteer firefighter at the time that the lump sum benefit is paid. The supplemental benefit is calculated as ten percent of the regular lump sum distribution, but not to exceed 51,000. (1) Upon the payment of a lump sum survivor benefit to the survivor of a deceased active or deferred member, a supplemental survivor benefit will be paid to the legally married surviving spouse or, if none, to the surviving child or children. The survivor supplemental benefit is calculated as twenty percent of the survivor benefit distribution, but not to exceed $2,000. 6.2 Ancillary Benefits. "Ancillary Benefit" means a benefit other than the service pension. Pursuant to Minn. Stat. §424.A02, subd. 9, (b), the sum of the ancillary benefit shall be calculated as of the date the active or deferred member became disabled or deceased. 6.2.1 Active Member Survivor or Death Benefit. Pursuant to Minn. Stat. §424A.05, Subd. 3. (3), a survivor benefit may be paid to a surviving spouse of an active member, or if none, to a child or children regardless of age at time of death, or if none, to designated beneficiaries described in 6.2.3, or if no designated beneficiary, a death benefit to the estate of the deceased member. The sum shall be calculated using the Lump Sum Service Pension benefit in effect at the time of death as listed in 6.1.2, using years of service as determined in 6.1.6, without regard to minimum or partial vesting requirements but in no case shall be less than three (3) years of service. 6.2.2 Deferred Member Survivor or Death Benefit. Pursuant to Minn. Stat. §424A.05, Subd. 3. (3), a survivor benefit may be paid to a surviving spouse of a deferred member, or if none, to designated child or children regardless of age at time of death, or if none, to designated beneficiaries described in 6.2.3, or if no designated beneficiary, a death benefit to the estate of the deceased member. The sum shall be calculated using the Lump Sum Service Pension table in effect at the time of separation, using years of service as determined in 6.1.6 and partial vesting requirements that may apply. The total benefits paid herein, cannot exceed the benefit earned by the member. 6.2.3 Designated Beneficiary. The member's designated beneficiary must be a natural person as identified in writing, on a form provided by and filed with the Secretary. 6.3 Limits on Benefits. 6.3.1* Domestic Relations Order. A qualified domestic relations order (QDRO) or domestic relations order that complies with the provisions of Minn. Stat. §§518.58, 518.581, or 518.611, shall be a distribution made pursuant to a domestic relations order, shall be treated as made pursuant to qualified domestic relations order as specified by Internal Revenue Code 414 (p) (11), as amended. No benefits shall be paid under a domestic relations order which requires the plan to provide any type or form of benefit, or any option, not otherwise provided under the plan or under state law. The only benefit available to a former spouse of a member pursuant to a qualified domestic relations order is that of a lump sum service pension, which is distributable pursuant to the terms and conditions of Article VI herein. When a qualified domestic relations order is submitted to the Association for review, an administrative fee may be required as determined by the Board of Trustees. 6.3.2 Garnishment, Judgment or Legal Process. No service pension benefits paid or payable from the Special Fund of the relief association to any person receiving or entitled to receive a service pension shall be subject to garnishment,judgment, execution, or other legal process, except as provided in Minn. Stat. §§518.58, 518.581, or 518.611. 6.3.3 No person entitled to a service pension from the Special Fund of a relief association may assign any service pension benefit payments, nor shall the association have the authority to recognize any assignment or pay *Refer to Policies of the Board Page 8 BYLAWS Elk River Fire Department Relief Association over any sum which has been assigned. 6.3.4 No provision which places limits on benefits as contained within Section 415 of the Internal Revenue Code shall be exceeded. Plan participants cannot receive an annual benefit greater than the amount specified in Section 415 of the code as may be subsequently amended. 6.3.5 No ancillary benefit or combination of benefits payable may exceed in amount the total earned service pension of the member or former member. ARTICLE VII AMENDMENTS 7.1 The Bylaws of this Association may be amended at any regular or special meeting of the Association by a favorable vote of two-thirds (2/3) of the members present and voting, providing a quorum is present; and provided further that notice of any proposed amendment or amendments has been given, electronically mailed to each member or mailed to each member at their last known address not more than 31 days preceding the date upon which such amendment or amendments are to be acted upon, and not less than 10 days prior to the scheduled date of such meeting; and provided further, that if such amendment or amendments shall change the amount of benefits or pensions, approval of the City Council of the City of Elk River must be obtained, as required by Minn. Stat. §69.772, subd. 4. ARTICLE VIII MUNICIPAL RATIFICATION 8.1 The adoption of, or any amendment to the Articles or Bylaws of this Association which increases or otherwise affects the retirement coverage provided by, or the service pensions or retirement benefits payable from the Special Fund of this Association, shall not be effective until it is ratified by the City Council of the City of Elk River. A. At a duly called regular meeting thereof, the Elk River Fire Department Relief Association did amend on the 29th day of October 2015, the BYLAWS. Which amendments were approved by the Elk River City Council on the XXth day of XXXXX, 2015. Relief Association President Relief Association Secretary Mayor City Clerk *Refer to Policies of the Board Page 9 Addendum A Elk River Fire Department Relief Association Table L -11 5 Approved by City Council, July 7, 2014 LUMP SUM'' SERVICE PENSION EFFECTIVE $5,360 BENEFIT LEVEL Formula (Years X Level X Percentage) Years sof Level Percentage Amount Service 5 $5,360 40% $10,720.00 6 $5,360 44% $14,150.41 7 $5,360 48% $18,009.60 8 $5,360 52% $22,297.60 9 $5,360 56% $27,014,40 10 $5,360 60% $32,160.00 11 $5,360 64'% $37,734.40 12 $5,360 68% $43,737.60 13 $5,360 72% $50,169.60 14 $5,360 76% $57,030.40 15 $5,360 80% $64,320.00 1'6 $5,360 84% $72,038.40 17 $5,360 88% $80,185.60 18 $5,360 92'°r"a $88,761.60 19 $5,360 96% $97,766.40 20 $5,360 100% $107,200.00 BASE 21 BASE + $5,360 $112,560.00 22 BASE + $10,720 $117,920.00 23 BASE + $16,080 $123,280.00 24 BASE + $21,440 $128,640.00 25 BASE + $26,800 $1134,000.00 26 BASE + $32,160 $139,360.00 27 BASE + $37,520 $144,720.00 28 BASE + $42,880 $150,080.00 29 BASE + $48,240 $155,440.00 30 BASE + $53,600 $160,800.00 31 BASE + $58,960 $1166,160.00 32 BASE + $64,320 $171520.00 33 BASE + $69,680 $176,880.00 34 BASE + $75,040 $182,240.00 35 BASE + $80,400 $187,600..00 No maximum years of service ADDENDUM A -XXXX XX, 2015 Addendum A Elk River Fire Department Relief Association Table LS-1 6 Approved by City Council, July 6, 20,15 LUMP SUM SERVICE PENSION EFFECTIVE $5,510 BENEFIT LEVEL Formula (Years X Level X Percentage) Years of $ Level Percentage Amount Service 5 $5,510 40% $14020.00 6 $5,510 44% $14,546.40 7 $5,510 48% $18,513.60 ,8, $5,510 52% $22,921.60 9 $5,510 56% $27,770.40 10 $5,5,10 60% $33,066.00 11 $5,510 64% $38,,790.40 12 $5,510 68% $44,961 .60 13 $5,510 72% $51,573.60 14 $5,510 76% $58,626.40 15 $5,510 80% $66,120.00 16 $5,510 8,4% $74,054.40 17 $5,510 88% $82,429.60 18 $5,51'6 92% $91,245.60 19 $5,510 96% $100,502.40 20 $5,510 100% $110,200.00 BASE 21 BASE + $5,510 $1 15,716.66 22 BASE + $11,020 $121,220.00 23, BASE + $16,536 $126,730.00 24 BASE + $22,040 $132,240.00 25 BASE + $27,550 $137,75,0.00 26 BASE + $33,060 $143,266.66 27 BASE + $3,8,570 $148,770.00 28 BASE + $44,080 $154,286.66 29 BASE + $49,590 $15,9,790.00 36 BASE + $55,16'6 $165,300.,00 31 BASE + $60,610 $170,810.00 32 BASE + $66,,120 $176,326.66 AD�DENDUM A - XXXX XX, 2615 Addendum A Elk River Fire Department Relief Association 33 BASE + $71,,630 $181 ,830.00 34 BASE + $77,140 $18 34ƒQO 35 BASE + $82,650 $192,850.00 No maximum years of service ADDENDUM A -XXXX X«, 2015 ELK RIVER RELIEF ASSOCIATION BY-LAWS 1/1/2014 RELIEF ASSOCIATION BOARD MEMBERS President...........................Scott Schmitt Vice President.....................Dave King Secretary...........................Bob Pearson Treasurer...........................Joe Libor Trustee..............................Keith Thorson Trustee..............................Rich Czech Mayor...............................John Dietz Finance Director..................Tim Simon Fire Chief...........................John Cunningham BY-LAWS OF THE ELK RIVER FIREMAN' RELIEF ASSOCIATION PREAMBLE The Elle River Fire Department Relief Association is a defined benefit plan and is subject to sections 69.771 through 69.774 and 424A.015, and 424A.02 of Minnesota State statutes. ARTICLE 1 MEMBERSHIP SECTION 1. Any regular member of the Elk River Fire Department shall be eligible for membership in this association. SECTION 2. Resignation from the Elk River Fire Department or moving from (the vicinity of) Elk River to take up residence elsewhere, shall terminate the membership of the member so resigning, expelled or removing;provided, however, that any member who has served for at least the minimum number of years required by Article VIII of these bylaws for vesting of pension rights as an active member of the Elk River Fire Department shall retain membership in this association, regardless of resignation, expulsion or removal, subject to regulations which may be from time to time imposed. SECTION 3. Any member who shall, in the opinion of a majority of the board of trustees, fraudulently claim benefits from, or defraud or attempt to defraud the association in any way, shall be suspended from membership by the board, and shall forfeit all further rights to benefits from the association. SECTION 4. Any suspended member can only be reinstated upon his application, therefore, in writing, presented at a regular or special meeting of the association. Reinstatement requires a favorable vote of 2/3 for the members present and voting at such a meeting. SECTION 5. Active Service: The active performance of fire suppression duties or the supervision of fire suppression duties. The performance of suppression or supervision of fire suppression duties includes meeting the requirements spelled out in the Elk River Fire Department Standard Operating Guidelines as approved by the fire chief. Annually, three weeks prior to the Department Annual Meeting, the fire chief shall submit a certified roster to the Board of Trustees certifying each member's active service credit for the prior year. SECTION 6. Regular Work Hours: Scheduled hours for fulltime employees of the City of Elk River. Regular work hours are typically Monday thru Friday, 8:00 AM to 4:30 PM but may vary by position. Regular work hours are typically 40 hours per week and include any scheduled, mandatory overtime. SECTION 7. Volunteer Time: Service performed as a paid on-call firefighter of the Elle River Fire Department as required by the Standard Operating Guidelines. Volunteer time is nonscheduled, non- mandatory service. SECTION 8. Active Members: Paid On-Call Firefighters that serve on the Fire Department and have been offered and have accepted membership in the association and have not been suspended or expelled from this association. SECTION 9. Active Service Credit: Active members shall receive service credit for volunteer time served. Regular work hours of a full-time employee of the fire department who is required to perform firefighting duties on a primary basis will not be considered active service for the relief association. Active service credit must not be granted under the Relief Association for any full-time employee of the fire department who is covered by and earning service credits in another pension plan, statewide or otherwise, based on the full-time employee's regular work hour duties. ARTICLE II BOARD OF TRUSTEES SECTION 1. The board of trustees shall be composed of the following: a President, a Vice President, a Secretary, A Treasurer and two general trustees, each of whom shall be elected for a term as specified in this article, or until a successor has been elected and qualified at he annual meeting of the association from its members, and the statutory ex officio trustees; the Chief of the Elk River Fire Department, the Mayor and the Financial Director of the City of Elk River. SECTION 2. At the first election following the adoption of these bylaws, the President and one trustee shall be elected for terms of one year; the Treasure and Vice President shall be elected for terms of two years; the Secretary and the other trustee shall be elected for terms of three years. Thereafter, as their respective terms of office expire, two officers or general trustees shall be elected for three year terms at each annual meeting. If a vacancy (other than vacancy caused by removal for cause of an officer or trustee) occurs during the term of office or any officer or general trustee, the remaining members of the board of trustees shall elect a member of the association to serve for the unexpired term of the vacated position. SECTION 3. A general trustee or officer may be removed for cause. Cause for removal shall include, but not limited to; the breach of the duties as set forth in Articles II and III of these bylaws. One or more of the trustees or officers may be removed at a meeting of the membership which was called for that purpose by a 2/3 vote of those present and voting at such meeting. Notice of the meeting at which removal is to be considered shall be given to each member and shall include the purpose of the meeting. The general trustee or officer shall be furnished with a statement of the particular charges at least five (5) days before the meeting is held. At the meeting, the general trustee or officer shall be given an opportunity to be fully heard as to each charge. If a general trustee or officer is removed, a replacement shall be elected at the same meting, and such replacement shall serve out the unexpired term of the removed general trustee or officer. SECTION 4. It shall be the duty of the board of trustees to prepare modes and plans for the safe and profitable investment of the appropriated funds of the association, and whenever loans or investments are made, to investigate and pass upon the securities offered and to attend to the drawing and execution of the necessary papers. The board shall order an audit of the books and accounts of the secretary and the treasurer annually, according to the law, and shall submit a written report of the condition of the association to the members at the annual, meeting. SECTION 5. The investment of the funds of the association shall be in the exclusive control of the board of trustees, in accordance with the state statutes. SECTION 6. The members of the board shall act as trustees with a fiduciary obligation to the members of the association, to the City of Elk River and the State of Minnesota. ARTICLE III DUTIES OF OFFICERS SECTION 1. It shall be the duty of the President to attend and to preside at all meeting of the association and the board of trustees. The president shall enforce the observance of all the Articles of Incorporation and the bylaws and see that the officers properly perform the duties assigned to them. The president shall sign all checks issued by the treasurer and all other papers, which require his signature. The president shall be a member of all committees except the aid committee and he shall exercise careful supervision over the affairs of the association. The shall receive a salary as may be fixed from time to time by the board of trustees, subject to approval of the association, and payable from the special fund of the association. SECTION 2. It shall be the duty of the Vice President to perform the duties of the President in his absence. In absences of both President and Vice President, it shall be the duty of the association to elect a President Pro Tem, who shall perform the duties incident of the office. SECTION 3. It shall be the duty of the secretary to keep true and accurate record of the proceedings of all meetings of the association and of the board of trustees. The Secretary shall keep a correct record of all the amendments, alterations and additions to the Article of Incorporation of the bylaws in a separate book from the minute books of the association. The Secretary shall cause due notice of all special meetings of the association and of the board of trustees to be given. The Secretary shall receive all moneys due the association and pay the same over to the Treasurer, taking a receipt for the same, and failing to do so, he/she, may be impeached and expelled from the association, he/she shall keep a roll of membership, with dates of joining, resignation, discharge, leaves of absence, dues and assessments paid and relief or pensions furnished. These books shall at all times be open to inspection by the board of trustees. Prior to entering upon duties of this office, the secretary shall give bond in such amount and with such sureties as may be required and approved by the board of trustees, condition upon the faithful discharge of his/her trusts and the full performance of the duties of his/her office. Such bond will be paid for from the special fund of the association. The secretary shall sign all orders for payment issued to the treasurer, and jointly with the treasurer, prepare and file all reports and statements required by law. He/she shall receive such salary as may be fixed from time to time by the board of trustees, subject to approval of the association, and payable from the special fund of the association. SECTION 4. It shall be the duty of the Treasurer to receive from the Secretary all funds belonging to the association and hold them subjects to the order of the president and countersigned by the secretary. The Treasurer shall keep separate and distinct accounts of the Special and General Funds, and shall prepare and present to the board of trustees a full and detailed statement of the assets and liabilities of each fund at each meeting of the board of trustees, and prior to the annual meeting of the association. Failing in this obligation, the secretary may be impeached and expelled from the association. He/she shall deliver to his/her successor in office, or to any committee appointed by the board of trustees to receive the same, all books, moneys, papers and other items pertaining to his/her office immediately upon the expiration of his/her term of office. Prior to entering upon the duties of this office, he/she shall give bond in such amount and with such sureties as may be required and approved by the board of trustees, conditioned upon the faithful discharge of the trust and the faithful performance of the duties of this office, to be paid for from the Special Fund of this association. Jointly with the Secretary, he/she shall prepare and fill all reports and statements required by law. He/she shall receive such salary as may be fixed by the board of trustees from time to time, subject to approval of the association, and payable from the special Fund of the association. SECTION 5. There shall be an Aid Committee, composed of the Vice President and two other members of the association, who may or may not be members of the board of trustees, appointed by the President. The Vice President shall be the chairman of this committee. The duty of the committee shall be to make provisions for the assistance to be rendered to each sick or disabled member, and to survivors of any deceased member. ARTICLE IV MEETINGS SECTION 1. The annual meeting for the association, for the election of officers and trustees, and other business, shall be the same date as the annual meeting for the Fire Department. SECTION 2. The board of trustees shall meet at least four(4) times a year. SECTION 3. Special meeting of the association or of the board of trustees may be called by the President, or two (2) members of the board of trustees, and shall also be called upon written request of six (6) or more members of the association. Members or trustees shall be notified by the Secretary of such special meeting, and the object of the meeting shall be contained in such notice. SECTION 4. A majority of the board of trustees then in office, and 40% of the members of the association shall constitute quorum for the transaction of business at their respective meetings. Less than a quorum may adjourn a meting to a future time, which the Secretary shall make known to the affected members. SECTION 5. All reports resolutions should be submitted in writing and no report shall be accepted unless it is the report of a majority of a committee, provided, however, that a minority shall be permitted to present its views in writing. SECTION 6. All meetings shall be conducted to Roberts Rules of Order, as revised. SECTION 7. The order of business shall be: 1. Call to order 2. Roll call 3. Reading of minutes of previous meeting 4. Reading of reports and minutes of board of trustees meetings 5. Reports of officers 6. Propositions for membership 7. Reports of special committees 8. Unfinished business 9. Election of officers or trustees (annual meeting) 10. New business 11. Adjournment ARTICLE V FUNDS SECTION 1. —Funds. All money received by the Association shall be kept in two separate funds. Disbursements from the funds shall be in accordance with Minnesota Statutes and the bylaws for the Association. SECTION 2. —General Fund. One fund shall be called the General Fund to which shall be credited all monies received by this Association from fines, entertainment revenues, and other miscellaneous sources not mandated by law or these bylaws. Funds may be disbursed by the Board of Trustees for any purpose reasonably suited to the welfare of the Association and its members. SECTION 3. —Special Fund. The Special Fund shall be credited with all fire state aid money received pursuant to state law, all revenues received from the city pursuant to state law, and money or property donated which is specified for use for the support of the Special Fund, and any interest earned upon the assets of the Special Fund. Disbursements from the Special Fund shall not be made for any purpose other than one of the following: a) Payment of members service pensions in accordance with state law and these bylaws; b) Payment of ancillary benefits in accordance with state law and these bylaws; c) Administrative expenses as authorized pursuant to Minn. Stat. 69.80, i.e. office expenses, salaries of the President, Secretary or Treasurer, educational expenses of the trustees, audit and legal expenses, insurance expenses, expenses of officers related to the responsibilities as administrators of the Special Fund. All other expenses of the Association shall be paid out of the General Fund. SECTION 4. Deposits. All money belonging to this association shall be deposited to the credit of this association in such banks, trust companies, or other depositories as the trustees may designate. The Board of Trustees shall make deposits in conformance with State Statutes and the bylaws. SECTION 5. Dispursements. No disbursement of the funds of this Association shall be made except by checks drawn by the Treasurer and countersigned by either the President or the Secretary. Except when issued for pensions and other fixed charges, the exact amount of which has been determined by the Board of Trustees or the members, no check shall be issued until the claim to which it relates has been approved by the Board of Trustees. SECTION 6. Nonassignability of Benefits. No member entitled to a service pension or ancillary benefit from the Association may assign any service pension or ancillary benefit payments, nor shall the Association have the authority to recognize any assignment or pay over any sum which have been assigned. ARTICLE VI APPLICATION FOR BENEFITS SECTION 1.All applications for relief or pension benefits shall be made in writing on forms furnished by the secretary. SECTION 2. All applications for pension shall be submitted to the board of trustees at a regular or special meeting of the board. Application shall state the age of the applicant, period, or periods of service in, and the date of retirement from active duty in the Elk River Fire Department, the length of time he/she has been a member of the association, and such other information as the board of trustees may require. The board reserves the right to take up to 90 days to make the pension payout. SECTION 3. No benefits or pensions shall be paid until the application therefore has been approved by a majority vote of the board of trustees. Decisions of the board shall be final as to the payment of such benefits or pensions. No other benefits shall be paid to or on behalf of any member who has received a service pension. SECTION 4. For purposes of computing benefits or pensions payable under ARTICLE VII and VIII, the length of service shall be calculated in full years and fractions of a year, measured from the date when a member became an active firefighter to the last month of service. If a member's service has not been continuous, the period of inactivity shall be subtracted from the time of service before the actual number of years and months are calculated. SECTION 5. Lump sum service pensions may be paid in two (2)installments at the option of the retiring member, A written application requesting payment of benefits in two (2)installments shall be submitted to the board of trustees at least thirty (30) days before the members retirement date. The member shall designate the date of the initial and final payments. The payment of the final portion of the benefit shall be made within one (1) tax year of the date of the first payment. Interest may be paid on deferred portion of the benefit at the same rate as earned on the Special Fund, but in no case shall the interest be greater than 5 %. SECTION 6. Because the Special Fund contains many long-term investments, retiring members are requested to voluntarily submit their intentions to retire at least 12 months before their retirement date. Prior announcement of retirement is strictly voluntary and failure to do so will not affect pensions. ARTICLE VII LONG-TERM DISABILITY SECTION 1. If a member of this association shall became totally and permanently disabled in the line of duty to the extent that a physician or surgeon acceptable to the Board of Trustees shall certify that such disability will permanently prevent that member from performing the member's duties in the Fire Department, the Association shall pay the sum of$5167.00 for each year and fractions of a year that the member has served as an active member of said Fire Department, without regard to minimum or partial vesting requirements. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. ARTICLE VIII DEATH BENEFITS AND PENSIONS SECTION 1. Upon the death of any member of the association who is in good standing at the time of his/her death, the association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to surviving children, if any, and if no child or children survive to the estate of such deceased member, the sum of$5167.00 for each year and fractions of year that the member served as an active member of Elk River Fire Department, or a minimum equivalent to three times the yearly rate of the retirement benefits. SECTION 2. The association shall pay to each member who shall have served as an active firefighter in the Elk River Fire Department for a period of twenty (20) years or more prior to his/her resignation from said Fire Department, and who has reached the age of fifty (50) years or more, and who has been a member in the association for at least five (5) years, the sum of$5167.00 for each year and fractions of a year that the member has served as an active member of said Fire Department. SECTION 3. A member of the association who shall have served in the Elk River Fire Department for as least twenty (20) years, but has not reached the age of fifty (50) years, and provided that, at that time, he/she has been a member of the of the association for at least five (5) years, upon application therefore he/she shall be paid the sum of$5167.00 for each year and fractions of year that the member served as an active firefighter in the Elk River Fire Department. During the time that a member is on the deferred pension roll, he/she shall continue to pay his/her dues, and he/she will not be eligible to receive any benefits provided for in ARTICLE VII. SECTION 4. During the time that a member is under age 50 and on the deferred pension roll, the Association shall add interest to the deferred benefit amount, compounded annually, at a rate equal to five percent. When a member reaches age 50 interest will no longer be added to the deferred benefit amount. SECTION 5. If a member shall have served for more than five (5) years, but less than twenty (20) years as an active firefighter in the Elk River Fire Department, he/she may retire from said fire department and be placed on the early vested pension roll. When he/she reaches the age of fifty (50) years, and provided that at that time, he has been a member of the association for at least five (5) years, he/she shall upon application therefore, be paid in the following manner: a) For active duty of more than five (5) years, but less than six (6) years, 40% of the amount per year of service which would have been earned had a member served 20 years or more. b) For active duty of more than six (6) years, but less than twenty (20)Years, 4% of the amount per year of service which would have been earned, had the member served for 20 years or more, shall Be added to all the years of service for each additional year of service between 6 and 20 years. c) During the time that any member is on early vested pension roll, he/she shall continue to pay his/her dues and he/she will not be eligible to receive any of the benefits provided for in ARTICLE VII. Pensions payable to members on early vested pension roll shall be based on the amount payable per year of service in effect at the time of such early retirement. ARTICLE IX AMENDMENTS SECTION 1. The bylaws of this association may be amended at any regular or special meeting of the association by a favorable vote of 2/3 of the members present and voting, provided that a quorum is present, and provided further that notice of any proposed amendment or amendments shall be given by reading the same at a regular or special meeting not more than 31 days next preceding the date upon which such amendment or amendments are to acted upon, and that a notice be mailed or emailed to each member at his last known address not less than ten (10) days prior to such meeting, and provided further, that such amendment or amendments shall change the amount of benefits or pensions, approval of the City Council of Elk River must be obtained before such change may take effect.