HomeMy WebLinkAbout5L PLFRA Bylaws Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 19, 2018
AGENDA #: 5L
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING REVISIONS TO
THE BYLAWS OF THE PRIOR LAKE FIRE RELIEF ASSOCIATION
DISCUSSION: Introduction
The purpose of this agenda item is to ask that the city council confirm a proposed
amendment to the Bylaws of the Prior Lake Relief Association. The amendment
was proposed by the Board of Trustees, approved by the membership and ratified
by the Board of Trustees.
Mayor Briggs, myself and the fire chief are ex officio members of the Board. The
finance director and assistant city manager often attend the Board meetings as
well. Pursuant to statute the remaining seven members of the Board are
firefighters. The Board is responsible for day to day administration of the pension
program in accordance with statute and their adopted bylaws.
History
Minnesota Statutes 424A provide for the creation of firefighter relief associations
for the purpose of managing and administering the general and special funds of
the association.
The general fund of the association is created to hold and account for funds
collected through various sources. The Annual Chicken Fry is the most notable
example of a general fund contribution. Periodic contributions made to the
department are also deposited in this fund. Expenditures from this fund are
comparatively minor and may include meals after fire calls, flowers, or the
purchase of department equipment which is not budgeted.
The special fund is reserved exclusively for the administration of the firefighter
pension program which is authorized by the state statute. Revenues for this fund
include the 2% Homeowner’s Insurance Premiums, interest generated by the
pension funds themselves and annual municipal contributions.
Minnesota Statutes 424A set forth the specific rules for the creation, maintenance
and ongoing administration of the special fund. Each association is to adopt
bylaws (attached) which set forth the rules for administration of the pension
program among other things.
The bylaws provide that where an amendment to the bylaws, “change the amount
of benefits or pensions, approval of the city council of Prior Lake must be obtained
before such change may take effect.”
Current Circumstances
Last year the city council increased the annual benefit amount to $8000 for
firefighters who meet the retirement criteria set forth in the bylaws. This benefit
amount became effective for retirements occurring on and after January1, 2018.
At that time the Board discussed the possibility of a second bylaw amendment but
elected to defer any action on it to minimize confusion.
The amendment to the bylaws which is presently proposed is set forth in the
underscored language below:
SECTION 5: During the time that a member who was hired prior to March 1, 2018
is on the deferred pension roll or early vested pension roll, the association shall
add to the amount payable to such member interest of 5% on December 31 of
each full year that the member was on the deferred pension roll. Any member who
was hired after March 1, 2018 and is on the deferred pension roll or early vested
pension roll, shall receive no interest added to the deferred pension roll.”
ISSUES:
The original language was adopted to assure a return on investment for those who
were long tenured firefighters after they had vested with ten years service or more
and thereby create a larger pool to invest as well as keep the firefighter active on
the department to reduce turn over.
At 5% the Board has concluded that the incentive may not be sufficient. So they
have suggested that rather than change the pension terms for existing firefighters
that they would retain the existing provisions for current firefighters and make the
modification for those coming on the department who would not be affected until
they have ten or more years of service in the future.
The membership election took place, some concerns expressed by fire
department members but in the vote to approve the bylaw amendment was in
excess of 2/3rds of those voting as required by the bylaws.
FINANCIAL
IMPACT:
This provision has the potential to provide for greater pension benefits for non-
vested firefighters in the future by discontinuing this provision. This could help the
department in recruiting and retaining future members which has become an
increasing challenge.
ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve the attached
resolution amending Article VIII, SECTION 5 of the Bylaws of the Prior Lake
Fire Relief Association as set forth above.
2. Motion and second to remove this item from the consent agenda for additional
discussion.
RECOMMENDED
MOTION:
ATTACHED:
Alternative #1
Proposed amendment and existing Bylaws for the Prior Lake Fire Relief
Association.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
A RESOLUTION AUTHORIZING REVISIONS TO ARTICLE VIII SECTION 5 OF THE
BYLAWS OF THE PRIOR LAKE RELIEF ASSOCIATION
Motion By: Second By:
WHEREAS,
WHEREAS,
The bylaws of the Prior Lake Volunteer Firefighters Relief Association provide for a
defined contribution benefit; and
Existing Article VIII Section 5 provides that a member on deferred pension or on
early vested pension roll shall receive an annual payment of 5% interest on his/her
pension amount annually on December 31 of each year; and,
WHEREAS, The Board of Trustees have proposed, approved and the membership has
approved by 2/3rds vote the following language to replace all existing language of
Article VIII, Section 5 as follows:
“During the time that a member who was hired prior to March 1, 2018 is on the
deferred pension roll or early vested pension roll, the association shall add to the
amount payable to such member interest of 5% on December 31st of each full year
that the member was on the deferred pension roll. Any member who was hired
after March 1, 2018 and is on the deferred pension roll or early vested pension roll,
shall receive no interest added to the deferred pension roll.”
WHEREAS, It is in the best interest of the City of Prior Lake and the Prior Lake Fire Relief
Association to adopt this amendment in order for the City to continue to recruit,
retain and reward volunteer fire service.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Prior Lake Volunteer Firefighter Relief Association Bylaw amendment set forth above is
hereby approved for immediate incorporation and publication in the bylaws.
PASSED AND ADOPTED THIS 19TH DAY OF MARCH 2018
VOTE Briggs McGuire Thompson Burkart Braid
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
BYLAWS OF TTM PRIOR LAKE FIRE RELIEF
ASSOCIATION
ARTICLE I
MEMBERSHIP
SECTION I : Any paid on call member of the Prior Lake Fire Department C'Fire Departmenf') shall be eligible to
apply for membership in the Prior Lake Fire ReliefAssociation ('Association").
SECTION 2 : Written application accompanied by an application fee of $5.00 may be made at any regular or special
meeting ofthe Board of Trustees ("Board"). The Board shall conduct an investigation ofthe_applicant to determine if
the applicant, due to some medically determined physical or mental impairment or condition, would constitute for the
Association a predictable and unvarranted risk of liability for benefits or if the applicant is otherwise ineligible
pursuant to Federal or State laws, rules or regulations. If no such impairment, condition or ineligibility exists, the
Board shall appoint the applicant to membership in the Association. If the applicant is not approved, the application
fee shall be rettrmed to the applicant.
SECTION 3 : Aly member who ceases to be a_paid on call member ofthe FAe Department shall cease to be a member
of the Association. However a member who has served for at least the minimum number of years required by
ARTICLE VIII of these bylaws for vesting pension rights as an active member of the Fire Departsnent shall retain
membership in this Association, regardless ofresignation, expulsion, or removal from the Firc Department, subject to
payment ofdues and such other regulations which may be imposed from time to time.
SECTION 4 : Any member who shall, in the opinion ofa majority ofthe Board: (f Aaudulently claim benefits from,
or defi:aud or attempt to defraud the Association in any way; (ii) fail to comply with these bylaws or the rules and
regulations ofthe Association; or (iii) otherwise act in any manner that constitutes good cause for removal, shall be
suspended from membenhip by the Boar4 and shall forfeit all firther rights to benefits from this Association.
SECTION 6 : Each member shall be entitled to one vote on any matter voted upon by the Association. Voting by
proxy is not permitted. All votes, unless specified prior to the vote, shall be conducted by voice vote. Ifa majority
cannot be determined by voice vote, the President shall ask for a show ofhands.
ARTICLE II
BOARD OF TRUSTEES
SECTION I : The Board shall be composed ofthe following
- President
- Vice President
- SecretaD/
- Treasurer
- Two (2) General Trustees
SECTION 5 : Any suspended member can only be reinstated upon his/her application therefore in r:rriting, presented
at a regular or special meeting ofthe Association, plus a reinstatement fee ofSl0.00, upon the favorable vote of2l3
members present and voting at such meeting. Ifthe application for reinstatement is rejected, the money accompanying
the same shall be returned to the applicanl
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each ofwhom shall be elected and qualified, at the Annual Meeting ofthe Association from its members. The Board
shall also include three statutory ex officio trustees: the Chiefofthe Fte Deparnnent, the Mayor ofPrior Lake, and the
City Malager ofPrior Lake.
SECTION 2 : At the first election following the adoption ofthese bylaws, the two (2) general trustees shall be elected
for terms of one (l) year; the President and Treasurer shall be elected for terms of two (2) years; and the Vice
President and Secretary shall be elected for terms of three (3) years. Thereafter, as thet respective terms of offtce
expire, two (2) officers or general trustees shall be elected for three (3) year terms at each Annual Meeting. If a
vacancy occurs during the term ofoffice ofany officer or general trustee, the memben ofthe Association shall elect a
member to serve for the unexpAed rcrm ofthe vacated position.
SECTION 3 : A general fiustee or officer may be removed for cause. Causes for removal shall include, but shall not be
limited to, the breach of duties as set forth in ARTICLE II and III of these bylaws. One or more of t]Ie trustees or
officers may be removed by a 2/3 vote ofthose present and voting at a meeting ofthe membership which is called fol
that purpose. Notice of the meeting at which removal is to be considered shall be given to each member and shall
include the purpose ofthe meeting. The general trustee or officer shall be firrnished with a statement ofthe particular
charges at least five (5) days before the meeting is to be held. At the meeting, the general trustee or officer shall be
given an opportunity to be fully heard on each charge. Ifa general tn:stee or officer is removed, hiVher replacement
shall be elected at the same meeting, and such replacement shall serve out the unexpied tErm ofthe removed general
trustee or officer.
SECTION 4 : I! shall be the duty ofthe Board to prepaxe modes and plans for the safe and profitable investment ofthe
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 ofthe necessary papers. The Board shall order an audit ofthe books
and accounts of the Secretaxy and Treasurer annually, according to law, and shall submit a written report of the
condition ofthe Association to the members at the Annual Meeting.
SECTION 5 : The investment of the fi:nds of the Association shall be in the exclusive control of the Boar4 in
conformance with State Statutes.
SECTION 6 : The memben of the Board shall act as trustees with a fiduciary obligation to the members of the
Association, to the City ofPrior Lake, and to the State ofMinnesota.
ARTICLE III
DUTIES OF OFFICERS
SECTION 1 : It shall be the duty ofthe President to attend and to preside at all meetings ofthe Association and ofthe
Board. He/she shall enforce the due observance of the Articles of lncorporation and the bylaws, and see that the
officers properly perform the duties assigned to them, The President shall be a member of all committees and shall
exercise careful supervision over the affairs ofthe Association. He/she shall receive such salary as may be fixed from
time to time by the Board, subject to approval of the Association, and payable &om the Special Fund of the
Association.
SECTION 2 : It shall be the duty ofthe Vice President to perform the duties ofthe President in his/her absence. ln the
event of the absences of both the President and the Vice Presiden! it shall be the duty of the Association to elect a
President pro tem, who shall perform the duties incident to the ofEce. The Vice President shall receive such salary as
may be fixed by the Board fiom time to time, subject to approval ofthe Association, and payable from the Special
Fund of the Association.
SECTION 3 : It shall be the duty ofthe Secretary to keep a true and accurate record ofthe proceedings ofall meetings
ofthe Association and the Board. He/she shall keep corect record ofall amendments, alterations, and additions to the
Articles oflncorporation or the bylaws in a separate book from the minute books ofthe Association. He/she shall sign
all checks issued by tle Treasurer and all other papers which require his/her signature. The Seoetary shall cause due
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notice ofall special meetings ofthe Association and ofthe Board to be given. He/she shall receive all moneys due the
Association and pay the same oyer to tlte Treasurer, and in failing to do so, he/she may be impeached and expelled
from the association. The Secretary shall keep a roll of membership, with the date ofjoining, resignation, discharge,
leaves ofabsence, suspension, dues and assessments paid, and reliefor pensions firnished. His/her books shall at al1
times be open to inspection by the Board. Prior to entering upon the duties oftlis office, he/she shall be given a bond
in such amount and with such sureties as may be required and approved by the Board, conditioned upon the faithful
discharge ofhis/trer trusts and full performance ofthe duties ofthis ofEce. Such bond will be paid for from the Special
Fund of the Association. He/she shall sign all orders for payrnents 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, subject to approval of the Associatiotr, and payable from the Speciat Fund ofthe
Association.
SECTION 4 : It shall be the duty ofthe Treasurer to receive from the Secretary all funds belonging to the Association
and hold them subject to the order of the President countersigned by the Secretary. He/she shall keep separate and
distinct accounts of the Special and General funds, and shall prepare and present to the Board a fulI and detailed
statement ofthe assets and liabilities ofeach frmd at each meeting ofthe Board, and prior to the Armual Meeting ofthe
Association. Failing in his/her obligations, he/she 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 to receive tle same, all moneys,
books, papers, and other items pertaining to the office immediately upon the expintion of his,fter term ofofftce. Prior
to entedng upon the duties ofthis office, he/she shall give a bond in such an amount and with such sureties as may be
required and approved by the Board, conditioned upon the faithful discharge of his,4rer office, to be paid for from the
Speciat Fund of the Association. Jointly with the Secretary, the Treasurer shall prepare and file all reports and
statements requted by law. He/she shall receive such salary as may be fixed by the Board from time to time, subject to
approval ofthe Association, and payable from the Special Fund ofthe Association.
ARTICLE IV
MEETINGS
SECTION I : The Armual Meeting ofthe Association, for the election of officers and trustees and for other business,
shall be held on the last Thursday ofJanuary ofeach year. Ifsuch a day falls on a holiday, the Annual Meeting shall be
held on the following Thursday.
SECTION 2 : The Board shall meet at least quarterly during each year
SECTION 3 : Special meetings of the Association, or of the Board may be called by the hesident or by two (2)
members ofthe Board, and shall also be called upon written request of six (6) or more members ofthe Association.
Members ofthe Association shall be notified by the Secretary ofsuch special meetings, and the object ofthe meeting
shall be contained in such notice.
SECTION 4 : A majority ofthe Board then in office, and 40 7o of ttre members ofthe Association shall constitute
quorums for the transaction ofbusiness at thet respective meetings. Less than a quorum may adjoum a meeting to a
future time, which the Secretary shall make kmown to the affected members.
SECTION 5 : All reports and resolutions shall 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 view in
writing.
SECTION 6 : All meetings shall be conducted according to Robert's Rules oforder, as revised from time to time.
SECTION 7 : The order ofbusiness shall be :
I . Call to order
2. Roll call
3. Reading of minutes ofprevious meeting
4. Reading ofreports and minutes ofBoard meetings
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5. Reports ofofficers
6. hopositions for membership
7. Reports of special committees
8. Unfinished business
9. Election of officers or trustees (annual meeting)
10. New business
11. Adjoumment
ARTICLEV
FLINDS
SECTION l: The funds received by the Association from dues, fines, application fees, entertainment, and other
miscellaneous sources shall be recorded in the books ofthe Secretary and the Treasurer and placed in the General
Fund of the Association- These funds may be disbursed for any purpose reasonably related to the welfare of the
Association or its members, as autlorized by a majority ofthe members present and voting at any meeting.
SECTION 2 : All firnds received by the Association: (i) from any tax souces; (ii) as state aid; (iii) from the City; (iv)
all funds or property donated or granted to the Association for the benefit ofthe Special Fund; and (v) any interest or
invesment retum upon the assets ofthe Special Fund shall be kept in the Special Fund and recorded in the books of
the Association by the Secretary and the Treasurer- Monies in t}le Special Fund shall not be disbursed for any purpose
except those specifically authorized by Minn. Stat- $ 4244.05, subd.2.
SECTION 3 : No disbursements of funds ofthe Association shall be made except by checks drawn by the Treasurer
and countersigned by the Secretary. Except when issued for salaries, pemions, and other fixed charges, the exact
amount of which has previously been determined and authorized by the Board (or members, in tle case of
disbursements from the General Fund), no check shall be issued until the claim to which it relates has been approved
by the Board.
SECTION 4 : All money belonging to the Association shall be deposited to the credit of this Association in such
banks, trust companies, savings and loan associations, or other depositories as the Board may designate.
SECTION 5 : The Board shall comply with Minnesota Statutes 356,4..06, Subd. 8b that requires the Association to
provide annually to any brokers, a written statement of investment restrictions pwsuant to State Statute or the
Investment Policy that apply to the Special Fund. Upon receipt ofthe written statement ofinvestment restrictions, each
broker handling investments ofthe Association shall aclmowledge, in writing annually, the receipt ofthe investment
restricfions. The aclcrowledgrnent shall contain a statement of the brokers' agreement to handle the Association's
investments pursuant to the written restrictions.
ARTICLE VI
APPLICATION FOR BENEFITS
SECTION 1 : All applications for reliefor pension benefits shall be made on forms fumished by the Secretary.
SECTION 2 : All applications for disability benefia shall be submitted to the Board at a regular or special meeting of
the Board. The application shall be accompanied by a certificate fiom the attending physician or sugeon setting forth
the natue ofthe illness or injury, the cause and duration thereof, the length of time the applicant has been unable to
perfom any ofthe duties coDnected with his,fter regular occupation and those ofa firefighter, and an estimate ofthe
time at which the applicant will be able to retum to his/her regular occupation and to perform the duties ofa firefighter.
SECTION 3 : All applications for pensions shall be submitted to the Board at a regular or special meeting of the
Board. Applications shall be verified by an oath ofthe applicant and shall state the age ofthe applicant, the period (or
periods) ofservice in and the date ofretirement from active duty in the Fire Deparment, the length oftime he/she has
been a member ofthe Association, and such other information as the Board may require.
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SECTION 4 : All applications for death benefits shall be submitted to the Board at a regular or special meeting ofthe
Board. Applications shall be verified by an oath ofthe applicant and shall stats the date and cause ofdeath, a certified
marriage certificate for a surviving spouse and a certified birth certificate for a surviving child, and such other
information as the Board may require.
SECTION 5 : No benefits or pensions shall be paid until the application therefore has been approved by a majority
vote ofthe entire Board. Decisions ofthe Board shall be final as to the payment of such benefit or pensions. No other
benefits shall be paid to or on behalfofany member who has received a service pension.
SECTION 6 : For purposes ofcomputing benefits or pensions under ARTICLES VII and VtrI, a "year of service" shall
be defined as the number of full months ofactive duty in the Fire Department, beginning on the date when the member
became a paid on-call member ofthe Fire Department, divided by_twelve, rounded to the nearest tenth.
Section 7 : RETURN TO SER!'ICE. Any member who has ceased to perform or supervise fire suppression and fre
prevention duties for at least 60 days, including former members who have received payment ofa service pension or
disability benefit, will be eligible to resume active membership in the Association should the firefighter resume active
firefighting duties with the FAe Departrnent.
Ifthe member has previously received payment ofa service pension or disability benefit, the member may be eligible
for a second pension or benefit for the resumption period of service if the member meets the vesting requirements
defined in these bylaws based on the resumption years ofservice. No member may be paid a service pension twice for
the same period ofservice.
Ifthe member has not received payment ofa service pension or disability benefq the member must complete at least
five years ofactive service with the Fire Department upon a resumption ofactive service. Ifthe member completes the
minimum period ofresumption service specified in tJris Section prior to a subsequent cessation of fuefighting duties,
the member will receive a service pensiorg if vested, for all years of active service calculated at the benefit level in
eflect on the date ofthe member's final cessation ofduties. Ifthe member does not complete the minimum period of
resumption service specified in this Section pdor to a subsequent cessation ofduties, the member will recgive a service
pension, if veste4 for all years of active service calculated at the beneflt level in effect at the time of the member's
original cessation ofduties. A member who has been granted an approved leave ofabsence not exceeding one year by
the Fire Department or by the Association is exempt from the minimum period of resrmrytion service requirement
under this Article. A member who has a break in service not exceeding ooe year but who has not been granted an
approved leave of absence and who has not received a service pension or disability benefit from the Association is
subject to the minimum period ofresumption seryice requirement under this Article.
Section 8 : IIIIIFORMED SERVICES.T A volunteer fireflghter who is absent &om firefighting service because of
service in the uniformed services may obtain service credil for the period ofthe unifomred service, not to exceed five
years, unless a longer period is required by Federal law, if the volunteer fuefighter returns within the time frame
required by Federal law to firefighting service with coverage by this same Association or its successor upon discharge
Aom service in the uniformed service. Service credit will not be giyen if the firefighter sepaxates from uniformed
service with a dishonorable or bad conduct discharge or under other than honorable conditions.
ARTICLEVII
DISABILITY BENEFITS
SECTION l: Ifan active member ofthe Association shall become totally and permanently disabled, to the extent that
a physician or surgeon acceptable to the Board shall certiry that such disability will permanently prevent said member
from performing his/her duties in the Fire Department, the Association shall pay to such member a sum equal to the
pension benefit in Article VIII Section 3 ofthese bylaws for each year that he/she has served as an active member of
the Fire Department. Ifa member who has received such a disability pension should subsequently recover and rehrn
as a paid on-call member ofthe Fire Department, any amormt paid to him^er as a disability pension shall be repaid to
t Minn. Stat. S 424A-021. In some instances service other than service with the Armed Forces may qualify. ,See 38
U.S.C. $ 4303(13) ("service in the uniformed services").
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the Association before he/she can become an active member ofthe Association
SECTION 2 : In addition to any disability benefit payable by the Association &e member shall also receive a
supplemental bensht from the State of Minnesota equal to I 0% of the benefit, up to a maximum of $ I ,000.
This benefit shall be paid by the Association. The Association will appty to be reimbursed by the State for ttre payment
ofthe supplement benefit in accordance with Minn. Stat.g 4244.10.
ARTICLE VIII
DEATH BENEFITS AND PENSION
SECTION 1 : Upon the death of any-active member ofthe Association who is in good standing at the time of his&er
death, the Association shall pay to the surviving spouse, ifany and ifthere is no survivitrg spouse, to surviving child or
children, if any, and ifno child or children survive, to the designated beneficiary, if-any, and if none to the_estate of
such deceased member a sum equal to the pension benefit in Adicle VIII Section 3 ofthese bylaws for each year that
he/she served as an active member ofthe Prior Lake Fire Department. For a member who is on the deferred pension
roll at the time of their death the death benefit shall be an arnount equal to thet deferred pension as of their date of
death.
SECTION 2 : Any member of the Association who becomes a full time employee of the Fire Department shall be
eligible to receive their service pension ifthey have met all eligibility requtements as stated in Article VIII, Section 3.
SECTION 3 : The Association shall pay to each member who has served as a paid on-call member of the Fire
Deparfinent for a period of twenty (20) years or more prior to his/her separation of service fiom the Fire Departm€at,
and who has reached the age offifty (50) years or more, and who has been a member ofthe Association in good
standing for at least ten (10) years, the sum of$8,000.00 for each year that he/she served as an active member of the
Prior Lake Fire Deparfinent-
SECTION 4 : A member ofthe Association who has served as a paid on-call member ofthe Fire Department for at
least twenty (20) years, but has not reached the age of fifty (50) years may retire from the Fire Depar&rent and be
placed on the deferred pension roll. When he/she reaches the age of50 years, and provided that at that time he/she has
been a member ofthe Association in good standing for at least ten (10) years, upon application therefore he/she shall
be paid a sum equal to the pension benefit in Article VtrI Section 3 ofthese bylaws for each year that he/she served as
aa paid on call member ofthe Fire Department. During the time that a member is on the deferred pension roll he/she
will not be eligible to receive aly ofthe benefits provided for in ARTICLE VIL
SECTION 5: During the time that a member is on the deferred pension roll or early vested pension roll, the
Association shall add to the amount payable to such member interest of 5olo on December 3 I
st of-each full year that the
member was on the deferred pension roll.
SECTION 6: No less than thirty (30) days before becoming eligible to receive a lump sum pension, a member ofthe
Association may make an inevocable election that such pension shall be rolled over to a named IRA. Ifthe member
who has made such an election dies before all of his/her pension has been paid to him./her, any amount thereof
remaining unpaid at the time ofhis/her death shall be paid to his/her named beneficiary, and ifno beneficiary has been
oamed, to his/her surviving spouse, child or children, or estate, in that order.
SECTION f: Ifa member shall have served for more than ten (10) y€ars, but less than twenty (20) years, as a paid
on-call member ofthe Fire Departrnent, he/she may rette from the Fire Deparfinent and be placed on the early vested
pension roll. When he/she reaches the age offifty (50) years, and provided that at that time he/she has been a member
ofthe Association in good standing for at least ten (10) years, he/she shall upon application therefore, be paid in the
following manner as designated by Minnesoa Statute:
(a) For active duty ofmore than ten (10) years, but less than eleven (11) years, 60Yo ofthe
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pension arnount per year of service as stated in Article VIII Section 3 of these bylaws.
(b) For active duty of more than eleven (11) years, but less than twenty (20) years, an
additional 4o/o ofthe amount per year ofservice shall be added for each additional year of
service between I I and 20 years.
(c) During the time that any member is on the early vested pension roll, he/she will not be
eligible to receive any of the benefits provided for in ARTICLE V[. Pensions payable to
members on the early vested pension roll shall be based on the amount payable per year
of service in effect at the time of such early retirement.
SECTION 8 : In addition to any death or pension benefit payable by the Association the member shall also receive a
Supplemental Benefit from the State of Minnesota equal to 10% of the benefit up to a maximum of $1,000. This
benefit shall be paid by the Association which will be reimbursed by the State in accordance with Minn. Stat.S
4244.1002. subd 10. Any death benefit paid due to the death of an active member of the Association shall include an
additional amount of $1,000 for a total of $2,000 to be paid by the Association and reimbursed by the State in
accordance with Minn. Stat. S 424A.10
ARTICLE IX
AMENDMENTS
SECTION I : The bylaws of the Association may be amended at any regular or special meeting of the Association by
a favorable vote of 213 ofthe members present and voting, provided that a quorum is presen! 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 less than thirty one (3 1) days preceding that date upon which such amenrlment or amendments are to be acted
upon, and provided further that if such amendment or amendments change the amount of benefits or pensions,
approval of the City Council of Prior Lake must be obtained before such change may take effect.
ARTICLE X
STATE LAW
In the case of a conflict between these bylaws and Minn. Stat. Chap. 424A, as may be amended from time to time,
Minn. Stat. Chap.424A shall govern.
t2/4/17
Here is the current Article Vltl, section 5
sEcrloN 5: During the time that a member is on the deferred pension roll or early vested
pension roll, the Association shall add to the amount payable to such member interest of s% on
December 31st of each full year that the member was on the deferred pension roll.
new Article Vlll, section 5 as voted on:
SECTION 5: During the time that a member who was hired prior to March .1, 201g is on the
defened pension roll or early vested pension roll, the Association shall add to the amount
payable to such member interest of 5olo on December 31st of each full year that the member
was on the defened pension roll. Any member who was hired after March 1, 2018 and is on the
defened pension roll or early vested pension roll, shall receive no interest added to the defened
pension roll.