4.4. SR 12-07-2015City of
Elk —
River
Request for Action
To
Item Number
Mayor and City Council
4.4
Agenda Section
Meeting Date
Prepared by
Consent
December 7, 2015
Tim Simon, Finance Director
Item Description
Reviewed by
Elk River Fire Relief Association By -Law Update
ohn Cunningham, Fire Chief
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve, by motion, updates to Elk River Fire Relief Association by-laws.
Background/Discussion
The City Council reviewed the by-law updates during their work session on November 16.
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 total 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 update recommendations.
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.
Financial Impact
N/A
Attachments
■ Elk River Relief Association By -Laws
P a w E A E U a r
NaA f RE]
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 plan 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
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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 defrled 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
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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;
1. 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 Q§ 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
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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) Perforin 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.
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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
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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.
AUTrr1.F. 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 perforin 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
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as Addendum A:
Table LS -15
Table LS -16
Elk River Fire Department Relief Association
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
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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 $1,000.
(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
over any sum which has been assigned.
Elk River Fire Department Relief Association
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 7th day of December, 2015.
Relief Association President Relief Association Secretary
Mayor
* Refer to Policies of the Board Page 9
City Clerk
Table L-1 5
Approved by City Council, July 7, 2014
LUMP SUM'' SERVICE PENSION
EFFECTIVE
r
1'
Formula (Years X Level X Percentage)
Elk River Fire Department Relief Association
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
16
$5,3'60 8'4%
$72,038.40
17
$5,360 88%
$80,185'x60
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
$1134,000.0'0
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 + $5'8,960
$1166,160.00
32
BASE + $'64,320
$171 „520.00
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
10 7,
*r
Elk River Fire Department Relief Association
TaEble LS -16
Approved by City Council, July 6, 20,15
I
EFFECTIVE
$5,510 BENEFIT LEVEL
Formula (Years X Level X Percentage)
Years of
$ Level Percentage
Amount
Service
5
$5,510 40%
$11,020.00
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%
$33,060.00
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%
$74,654.40
17
$5,510 88%
$82,429.60
18
$5,516 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 + $16,53'6
$126,730.00
24
BASE + $22,040
$132,240.00
25
BASE + $27550
$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 + $55,166
$1 65,300.00
31
BASE + $60,610
$170,810.00
32
BASE + $66,,120
$176,326.66
33 BASE + $71,,630
34 BASE + $77,140
35 BASE + $82,650
No maximum years of service
Elk River Fire Department Relief Association