E-7. Resolution 2017-73 Approve Ratifying Changes to Chanhassen Fire Relief Association BylawsCI'TY" OF C,H''A -IASS El�l I" NII"
QmNassein �s a Coirniinunty foair Ufi,�- Piiml6ng fcr'Todayancl �Nanini°ing lbr'romoirrow
TO: Mayor & City Council
FROM: Greg Sticha, Finance Director
DATE: December 11, 2017
SUBJ: Ratification of Amendments to the Chanhassen Fire Relief Association By -Laws
41TASIMMIJIU!
"The City Council approves the attached resolution and amended By -Laws of the Chanhassen Fire
Relief Association effective January 1, 2018."
Approval requires a simple -majority vote of the City Council.
Im"Im"MME
During the past year city council has had multiple meetings discussing an adjustment to the
Chanhassen Fire Relief Association lump sum retirement benefit. The current lump sum benefit is
$6,000 per year of service, assuming all criteria have been met according to the eligibility rules stated
in the by-laws of the relief association.
Staff is recommending increasing the lump sum benefit from the current level of $6,000 per year of
service to $6,800 per year of service. The relief association has met and voted to amend the by-laws,
with the most significant language change being increasing the lump sum benefit mentioned above.
In addition, the relief association included some administrative corrections for officer positions. The
city council has to ratify the changes for it to become effective. The changes are highlighted in red in
the attached amended by-laws.
RE(COhIMENDAT ION
Staff recommends that city council approve the attached resolution authorizing the increase in the
lump sum pension benefit for the Chanhassen Fire Relief Association and the amended By -Laws
effective January 1, 2018. Approval requires a simple majority vote of the City Council.
ATTACHMENTS
1. Chanhassen Fire Relief Association amended by-laws (red -lined version).
2. Resolution amending by-laws by increasing the lump sum benefit for the Chanhassen Fire Relief
Association.
fAgregs\fire pensionVatification memo for pension increase 12-11-17.docx
PH 952.227,1100 - www. dchanhassen. inn. us,. l:X952.227.1.110
— _ .... . ..... . ..... . ... . . ..........
7"700 MARKET BOULEVARD - F10 BOX 147 - CHANHASSEN - WNNESOTA 55317
CITY OF CHANHASSEN
CARVER AND HENN P � '1111TXV_111"TXI flxk
DATE: - December 11, 2017 RESOLUTION NO: 2017 -XX
MOTION BY: SECONDED BY:
W*2 N 31 a 101 WA;j;LC4j 714 N us]V.
WHEREAS, the Chanhassen Firefighter's Relief Association has requested the City to
approve amendments to Article X, Section 10. 1, of the Association's By-laws; and
WHEREAS, it is in the best interest of the City and of the Relief Association that the
By-law amendments be approved.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, that Article X., Section 10. 1, be modified and approved as follows:
Section 10.1. Pension. Effective January 1, 2015, the Association shall
pay a defined benefit lump sum service pension in accordance with Minn.
Stat, 424A02. The Association shall pay to each member who shall have
served as an active firefighter in the Department for a period of 20 years or
more prior to the member's resignation from the Department and who has
reached the age of 50 years or more, the sum of $6,000.00 for each year
that the member served as an active member of the Department. The
pension shall start on the first day of the month following retirement from
the Association and shall not exceed the amount authorized under 424A.02,
subd. 3.
Passed and adopted by the Chanhassen City Council this I lb day of December, 2017.
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
YES NO ABSENT
123034 v4
I IN ]VIALM I
Section 1. 1. Name. The name of the relief association shall be "The Chanhassen
Firefighter's Relief Association."
Section 1.2. PgMos . The Purpose of the Chanhassen Firefighter's Relief
Association is to provide retirement relief and other benefits to its members and
dependents. The Chanhassen Firefighter's Relief Association is a governmental entity
that receives and manages public money to provide retirement benefits for individuals
providing the governmental services of firefighting. If the individual is a member of
the fire department, probationary or not, then the individual must be offered
membership in the Association.
Section 1.3. Association Type. The Chanhassen Firefighter's Relief Association is a
defined benefit relief association subject to Minnesota Statutes Sections 69.771 to
69.774,424A.015, and 424A.02.
Section 2.1. Fiduciary Responsibilit . In the discharge of their respective duties, the
officers and trustees 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. §356A.
Each member of the board is a fiduciary and shall undertake all fiduciary activities in
accordance with the standard of care of section I IA. 09, and in a manner consistent
with Minn. Stat. §356A. No trustee of the Chanhassen Firefighter's Relief Association
shall cause the 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:
i) Sale or exchange or leasing of any real property between the
Association and a board member;
ii) lending of money or other extension of credit between the Association
and a board member or member of the Association;
iii) furnishing goods, services, or facilities between the Association and a
board member; or
iv) transfer to a board member, or use by or for the benefit of a board
member, of any assets of the Association. Transfer of assets does not
mean the payment of Association benefits or administrative expenses
permitted by law.
Section 2.2 Board of Trustees: The Board of Trustees of the Relief Association
shall be as specified under Minn. Stat. §424A.04. There shall be three ex -officio
members. The three ex -officio trustees shall be the mayor, the chief of the fire
department, and the clerk, clerk treasurer or finance director.
145847v9
Section 2.3 Break in Service: A minimum of three months, occurring consecutively
(computation period) during which the participant does not complete the fire
departments Call, Training, Meeting and Performance requirements . At the option of
the Board of Trusties, members may not be given active service credit during a year in
which they have a break in service. A break in service does not include an approved
leave of absence pursuant to the bylaws.
Section 2.4 Year of Active Service: For the purpose of computing benefits or
service pensions payable, a year of service shall be defined as a period of 12 full
months of active service in the Chanhassen Fire Department. Service pensions will be
prorated monthly for fractional years of service pursuant to Minn. Stat. §424A.02,
subd. 1.
Section 2.5 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 service includes meeting the Fire Department's call, training
meetings and performance requirements. For purpose of computing benefits or service
pensions payable, a year of service shall be defined as a period of 12 full months of
active service in the Chanhassen Fire Department.
Section 2.6 Leave of Absence: If the board has approved a leave of absence for the
member, the treasurer shall prorate monthly, that year of service and pay the member
accordingly. All leaves of absence of more than 6 months occurring during a year,
except such as are granted to a member because of the member's disability due to
sickness or accident, shall be excluded in computing the period of service. Any
member returning from a leave of absence beyond six months must remain in active
service equal in time to the leave of absence in order to qualify for any pension
increases having occurred during the leave time. If this requirement is not met prior to
the individual's resignation, the retirement benefits will refer to those in effect at such
time the leave of absence began.
Section 2.7 Trustees: The individuals designated as such by Minn. Stat. §424A.04
and by virtue of elected office, those that qualify as an ex -officio trustee.
Section 2.8 Surviving Spouse: The spouse of a deceased member who was legally
married to the member at the time of the member's death.
Section 2.9 Designated Beneficiary: Means a natural person.
2
145847v9
".11:14040allwUl
Section 3.1. AMlicants. All members of the Chanhassen Volunteer Fire Department
shall be eligible to join this Association. All applicants for membership shall be sent to
the Board of Trustees. Each application shall be in writing on a form supplied by the
Secretary of the Association, signed by the applicant, stating name, residence and the
date that the applicant joined the department.
Section 3.2 Categories of Members. Members of this Association shall be classified
into four categories: active, deferred, disabled, and retired. (a) Active members are
those that have not been suspended or expelled from this Association; (b) Deferred
members shall be those former members who have retired from the Chanhassen Fire
Department and who have had an active period or periods of service in the Chanhassen
Fire Department for 5 years, but who have not reached the age of 50 years (c) Disabled
members are those former members that have been permanently disabled due to injury
or sickness while an active member and are no longer in active service with the
Chanhassen Fire Department (d) Retired members shall be those drawing a pension
under the applicable statutes and bylaws of this Association.
1. The definition of active member includes a paid -on call part-time
firefighter employed by the City of Chanhassen who receives pay
for each call to which they respond.
2. An active member includes a firefighter that is employed full time
by the City of Chanhassen who receives pay for each non-scheduled,
non -mandatory fire suppression call, to which they respond.
Section 3.3 Voting. Each member shall be entitled to one vote on any matter voted
upon by the membership, except for members who are not in good standing, such as
members on disciplinary probation or suspension. Voting by proxy is not permitted.
All votes, unless specified prior to the vote, shall be conducted by voice vote. If a
majority cannot be determined by voice vote, the Officer in Charge of the vote shall
ask for a show of hands. Except as otherwise provided in these Bylaws, all items
requiring a vote must pass by a majority vote of all members present at a regular or
special meeting of the general membership.
Section 3.4. Riis and Privileges Forfeited. Any member may be expelled from the
Association for cause by a 2/3 vote of all members present at a regular or special
meeting of the general membership. The member shall have the right to a hearing
before the general membership and written notice via registered mail will be sent to the
individual at least 15 days prior to the hearing. Cause for expulsion includes but is not
limited to, failure to account for money belonging to the Association or feigning illness
or injury for the purpose of defrauding the Association.
145847v9
Section 3.5. Membership After Retirement. Any member who retires from said fire
department after being vested shall remain a member of this Association. Once retiring
from said fire department, however, a member shall not be eligible for disability relief
from this Association.
Section 4.1. Annual Meejin&L The regular annual meeting of the Association shall
be the first month after completion of the Annual Audit or� .
each year,
4"—" I,
whichever is the latter and shall not start until after 6:00 PM. The place of the meeting
shall be designated and may be changed from time to time by the Board of Trustees.
Written notice of the annual meeting shall be given to all members and the General
Public at least ten (10) days in advance.
Section 4.2. Quorum of Association Members. A majority of all the eligible voting
members of the Association shall constitute a quorum for the transaction of business at
annual, regular and special meetings.
Section 4.3. Quorum of Board of Trustees. A majority of members of the Board of
Trustees shall constitute a quorum for the transaction of business at meetings.
Section 4.4. OrderofBusiness. At the annual and regular meetings, the order of
business shall be as follows:
a) Call to Order
b) Roll Call
C) Reading of minutes of previous meeting
d) Secretary's report
e) Treasurer's report
f) Committee report
g) Unfinished Business
h) New Business
i) Adjournment
Section 4.5. Special Meetings. Special meetings of the members may be called at
any time upon the written order of the President and one other member of the Board of
Trustees or 10% of the members of the Association. The Secretary shall give written
notice to each member of the Board of Trustees and each member of the Association
entitled to vote, of the time, place, and purpose of such meeting at least ten (10) days in
advance.
4
145847v9
Section 4.6. Meeting Location. A meeting of the Board of Trustees shall be held at
the registered office of the Association in the City of Chanhassen, unless noticed for
another place within the state as designated by the Board.
Section 4.7. Notice of Meetings. Subject to waiver, a notice of every meeting shall
be sent or delivered by the Secretary to each trustee including ex -officio trustees, at
least 5, but not more than 30 days before the meeting, excluding the date of the
meeting. Such notice shall set forth the date, time, place, and in the case of a special
meeting, the purpose.
Section 5.1. Officers. The officers of this Association shall be a President, a Vice -
President, a Secretary, and a Treasurer.
Section 5.. Flection and Tenn of Office. Said officers shall be elected annually by
the membership at the annual meeting in June of each year.
Section 5.3. Board of Trustees. The Board of Trustees shall be composed of six
members elected by the membership and three ex -officio members consisting of the
Mayor, the Fire Department Chief, and the City Clerk, Clerk Treasurer or Finance
Director. One of the six trustees elected from the Association may be a retired member
receiving a monthly pension, who is elected by the membership of the Association.
Two Board members shall be elected at each annual meeting of the Association for
three year terms or until their successors have been elected and duly qualify. The terms
of the elected trustees shall be staggered.
Section 5.4. Board of Trustees Flections. At any annual meeting of the Board of
Trustees, the Board shall elect from their number, excluding ex Officio Trustees, a
President, Vice President, Secretary, and Treasurer. These officers shall hold office
until the next annual meeting.
Section 5.5. Vacancies. A vacancy on the Board of Trustees may be filled by the
remaining Board members at any regular, or special Board meeting but the Board
members so elected shall hold office only until the next special or annual meeting or
the Association membership when the successor shall be elected by the membership.
Section 5.6. Responsibilities. The Board of Trustees shall discharge their respective
duties using the standard of care specified in Minn. Stat. Section 11A.09 and shall act
in accordance with Minn. Stat. Ch. 356. Members of the Board are fiduciaries and
shall undertake all fiduciary activities in accordance with the standard of care un Minn.
Stat. Section 11A.09 and in a manner consistent with Minn. Stat. Ch. 356.
145847v9
Section 6. 1. President's Duty. It shall be the duty of the President to preside at all
meetings of this Association and the Board of Trustees. The President shall enforce the
due observance of Minnesota State Statutes, 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 requiring the
President's signature. The President shall be a member of all committees and shall
exercise careful supervision over the affairs of the Association. The President shall
have other duties as assigned from time to time by the Board of Trustees. 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.
Section 6.2. Vice -President's PILtL. The Vice -President shall perform the duties of
the President in his/her absence or disability and in the case a vacancy in the office of
President, until a successor has been elected. In the absence of both the President and
the Vice President it shall be the duty of the Association to elect a President pro tem.,
who shall perform the duties incident to the office. The Vice President shall have other
duties as assigned from time to time by the Board of Trustees.. Tbc\5i,,,e Pres[dcio
re(,,eivesi,,ic11 biil� fl�Ked ftoni timc, W kg:�,eJ1y,,J1ie Board
. . . . ......................................
of0ic fr(-)m Uie Srreckfl 1"und ot'lli(
.............. I ........ ......................... . .................
Section 6.3. Secretary's Duty. It shall be the duty of the Secretary to keep and post a
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 amendments,
alterations and additions to the Articles of Incorporation or the Bylaws in a separate
book from the minute books of the Association. The Secretary shall properly notice all
meetings of the Association and of the Board of Trustees. The Secretary shall prepare
all paperwork and obtain required signatures for relief benefits due to membership and
insure benefits are distributed to appropriate parties. The Secretary shall receive all
monies due the Association and pay the same over to the Treasurer, taking a receipt for
the same, and failing to do so the Secretary may be impeached and expelled from the
Association. The Secretary shall keep individual files and a roll of membership, with
the date of joining, resignation, discharge, leaves of absence, dues and assessments
paid and relief or pensions furnished. The books of the Secretary shall at all times be
open to inspection by the Board of Trustees. The Secretary shall have other duties as
assigned from time to time by the Board of Trustees. He/she 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 Association's Special Fund.
Section 6.4. Treasurer's Duty. It shall be the duty of the Treasurer to receive from
the Secretary all funds belonging to the Association and hold them subject to the order
6
145847v9
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 separately at each meeting of the Board of Trustees, and prior to the annual
meeting of the Association. Failing in the Treasurer's obligations, the Treasurer may be
impeached and expelled from the Association. The Treasurer shall deliver to the
Treasurer's successor in office, or to any committee appointed by the Board of Trustees
to receive the same, all monies, books, papers, and other items pertaining to the
Treasurer's office immediately upon the expiration of the Treasurer's office. Prior to
entering upon the duties of the Treasurer's office, the Treasurer shall give a bond in
such amount and with such sureties as may be required and approved by the Board of
Trustees and the City of Chanhassen, conditioned upon the faithful discharge of the
Treasurer's trust and the faithful performance of the duties of the Treasurer's office,
payable from the Association's Special Fund. The amount of the bond will be equal to
at least 10% of the assets of the Association, however, the amount of the bond need not
exceed $500,000. Jointly with the Secretary, the Treasurer shall prepare and file all
reports and statements required by law. The Treasurer shall have other duties as
assigned from time to time by the Board of Trustees. 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 Association's Special Fund.
Section 6.5. Removals. Any officer or general trustee may be removed for just cause
at a special meeting of the members by a 2/3 vote of those elected to vote at an election
of officers and trustees. No officer or general trustee shall be removed unless notice of
the meeting at which removal is to be considered states such purpose. When an officer
or trustee has been removed, new officers or general trustees may be elected at the
same meeting to serve until the next annual meeting of the members and until their
successors have been elected and have qualified.
Section 6.6. Debts Prohibited. No officer or member of this Association shall
contract any debt for the same unless authorized by the Board of Trustees.
Fill
Section 7.1. Establishment. The Board of Trustees may establish committees to aid
the Board in performing the business of the Association.
Section 7.2. Aide Committee. The Aide Committee shall consist of three members
of the Relief Association, as appointed by the Board of Trustees. The duty of the Aide
Committee shall include, but not be limited to, ensuring that members submit all forms
necessary for any claim for benefits and ensuring that those forms be filed with the
proper agencies. The committee shall perform other duties assigned to it by the Board
of Trustees from time to time.
7
145847v9
Section 7.3. Reports. All reports and resolutions shall be submitted in writing and
no report from a committee shall be received unless it is approved by a majority of
such committee, but a minority report may always be presented.
Section 8.1. Discharge of Duties. Trustees shall discharge their duties in good faith
and with that diligence and care which an ordinarily prudent person would exercise
under similar circumstances.
Section 8.2. Investments. The Board of Trustees shall investigate and prepare for
the safe and profitable investment of Association funds in conformance with State
Statutes, the bylaws and any investment policy adopted by the Association.
Section 8.3. Investment Committee. The Board of Trustees may designate two or
more Association members to sit on an investment committee. The treasurer, the
president and an ex -officio member shall also sit on the committee. The investment
committee shall investigate and make recommendations to the board of suitable
investments for Association funds among those permitted by Statute, the bylaws and
any investment policy adopted by the Association.
ARTICLE IX. FUNDS
Section 9.1. Funds. The property and monies of this Association shall be kept in two
separate and distinct funds known as the "General Fund" and the "Special Fund."
Disbursements from the funds shall be in accordance with Minnesota Statutes and
Rules and the bylaws of the Chanhassen Firefighter's Relief Association.
Section 9.2. General Fund. The funds received by this Association from dues,
donations, fines, initiation fees, entertainments, and other miscellaneous sources shall
be kept in the General Fund and may be disbursed upon a majority vote of the Board of
Trustees for any purpose reasonably suited to the welfare of the Association and its
members. However, upon a vote of two-thirds of the members present and voting at a
regular meeting or special meeting any such monies may be placed in the Special Fund.
Section 9.3. Special Fund. All funds received by this Association which qualify as
state aid received pursuant to law, all taxes levied by or other revenues received from
the City pursuant to law providing for municipal support for the Association, any
moneys or property donated, given, granted or devised excluding fundraiser proceeds,
by any person which is specified for the use for the support of the special fund and any
interest earned on the assets of the special fund shall be kept in a fund known as the
Special Fund. Any tax sources and other money which may be directly donated or
transferred to said fund, shall be kept in a separate account on the books of the
Treasurer known as the Special Fund and shall be disbursed only for the following
purposes:
8
145847v9
i) Payment of service pensions to retired members in accordance with
these bylaws;
ii) Payment of temporary or permanent disability benefits to disabled
members;
lll) Payment of survivor and death benefits;
iv) Administrative expenses as limited by Minn. Stat. §69.80; and
v) Payment of fees, dues and assessments to the Minnesota association,
State Fire Department Association, to the Minnesota Area Relief
Association Coalition, and to the State Volunteer Firefighters Benefit
Association.
All other expenses shall be paid out of the General Fund.
Section 9.4. 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.
Section 9.5. Disbursements. No disbursement of funds of this Association shall be
made except by checks drawn by the treasurer and countersigned by the President or
Vice -President. Except when issued for salaries, pensions and other fixed charges, the
exact amount of which has previously 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 10.1. Pension. Effective January 1, 2015, the Association shall pay a
defined benefit lump sum service pension in accordance with Minn. Stat. 424A02. The
Association shall pay to each member who shall have served as an active firefighter in
the Department for a period of 20 years or more prior to the member's resignation from
the Department and who has reached the age of 50 years or more, the sum of
$6,13500.00 for each year that the member served as an active member of the
Department. The pension shall start on the first day of the month following retirement
from the Association and shall not exceed the amount authorized under 424A.02, subd.
3.
Section 10.2. Eli-ibilitX. To be eligible to receive a full service pension a member
must meet all of the following requirements:
i) Be at least 50 years of age;
ii) Have retired from the Fire Department of the municipality;
iii) Have completed at least 20 years of active service with such department
before retirement;
iv) Have been a member of the Association in good standing at least 5 years
prior to such retirement.
145847v9
Section 10.3. Applications. All applications for pensions or deferred pension status
shall be submitted in writing to the Board of Trustees at a regular or special meeting of
the Board. An application form will be provided by the Secretary of the Association
containing the following information:
i) Age of the applicant;
ii) Length of service the applicant has been a member of the Association;
iii) Such other information s the Board of Trustees may require by
including lawful requests for information or questions on an application
form for benefits which has been adopted by the Board of Trustees.
Application for benefits shall be made by or on behalf of the applicant within 90 days
prior to the date that the pension commences, and no pension benefits shall be paid for
a period covering more than 90 days before the application is made.
Section 10.4. Board Approval. It shall be the duty of the Board to approve
applications for service pensions if the applicant meets all of the eligibility
requirements set forth in these bylaws. 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. Thereafter, the applicant shall be furnished with the opportunity to be
heard by the full Board, within the next 30 days, on the question of whether the
applicant meets all of the eligibility requirements. When the application is approved,
the service pension shall be paid as a service pension to such applicant.
Section 11.1. Payment Options. ions. Because of the varying circumstances in each
member's retirement planning, optional benefit payment methods are offered.
Selection should occur after consultation with a tax consultant, insurance and/or estate
planner, or an attorney. Alternate payment methods on the Application Form shall
include:
i) A single lump sum check payment payable to the eligible retiree.
ii) Lump sum payment by the Association 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.
Section 11.2. Transfer to IRA Account. Upon written request from the retiring
member who has given proper notice of retirement, the Secretary or Treasurer shall
directly transfer the service pension amount into an Individual Retirement Account
under Section 408(a) of the Internal Revenue Code, as amended.
10
145847v9
Section 11.3. Assignment. No service pension or ancillary benefits paid or payable
form the special fund of a Association to any person receiving or entitled to receive a
service pension or ancillary benefits shall be subject to garnishment, judgment,
execution, or other legal process, except as provided Minn. Stat. Sections 518.58,
518.581 or 518A.53. No service pension or ancillary benefit paid or payable from the
pension fund shall be assignable by any member nor shall any assignment be
recognized by the board.
Is1►711M[11�.7 ' ►� ►
Section 12.1. Members. The Association shall pay a supplemental benefit to an active
or deferred member who receive a lump sum distribution of pension or retirement
benefits for service performed as a volunteer firefighter at the time the lump sum
benefit is paid. The supplemental benefit is calculated as ten percent (10%) of the
regular lump sum distribution, but not to exceed $1,000.00.
Section 12.2. Survivor Benefit. Upon the payment of a lump sum survivor benefit to
the survivor of a deceased active member or deceased deferred member, a
supplemental survivor benefit will be paid to the married surviving spouse or, if none,
to the surviving minor child or minor children. The survivor supplemental benefit is
calculated as 20% of the survivor benefit distribution, but not to exceed $2,000.00.
Section 12.3. Not both. An individual may receive a supplemental benefit under
Section 12.1 or under Section 12.2, but not under both Sections with respect to one
lump sum benefit.
y
Section 13.1. Survivor Benefits.
A. A lump sum survivor benefit shall be paid to the surviving spouse or surviving
child or children, or if none, to a designated beneficiary, or if none, a lump sum death
benefit shall be paid to the estate of the deceased active or deferred member in an
amount equal to the member's total earned service pension, which is defined as the
member's years of service multiplied by the benefit level at the time of death, without
regard to minimum or partial vesting requirements.A designated beneficiary may be a
trust created under Chanter 501B if the survivor benefit will be distributed as a one-
time lump sum payment. The years of services shall be determined as of (i) the date
the member or former member became entitled to the ancillary benefit; or (ii) the date
the member or former member died entitling a survivor or the estate of the member or
former member to the benefit. In no case shall the survivor benefit exceed five times
the yearly service pension amount specified in the bylaws in the case of a member who
dies before having performed five years of active service in the fire department.
11
145847v9
B. Following the receipt of a death benefit provided under this Article, neither a
member's beneficiary, nor estate is entitled to any other or further financial relief or
benefits from the Association.
Section 13.2. Permanent Disability Relief. A member who is permanently disabled
from being an active member in the Chanhassen Fire Department shall be eligible for a
disability benefit in lieu of retirement. Upon approval of the Board of Trustees
pursuant to this section the disability benefits will apply: A member who is totally and
permanently disabled with a service related disability shall be eligible to collect a
disability benefit in an amount equal to the benefit level in effect on the date of
disability per year of active service. The member shall be eligible to receive the
disability benefit immediately upon approval of the Board of Trustees.
i) Any such disability benefit paid in accordance with this section shall be
in lieu of all rights to further service pension and survivor's benefit.
ii) A total and permanent disability is defined as the inability of an active
member to engage in performance of his/her duties as a firefighter by
reason of a medically determinable physical or psychological
impairment arising out of an act of duty which can be expected to last
for a continuous period of not less than twelve months or can be
expected to result in death, that was incurred in the line of duty.
iii) Reports required. No member shall be paid disability benefits except
upon the written report of a physician or chiropractor of the member's
choice. This report shall set for the diagnosis and prognosis of the
disability, disease or injury of the member. Each such report shall be
filed with the Association.
iv) Procedure. All applications for disability benefits shall be made within
six months after such applicant has ceased to be an active member of the
fire department. Written application shall be made to the Board setting
out the nature and cause of such disability. This application shall be
under oath by the member or his or her immediate family. The
application shall be tabled until the next meeting so that the applicant
may be examined by a physician or chiropractor of the member's choice.
The physician or chiropractor will submit a written opinion concerning
the diagnosis and prognosis of the applicant's permanent disability and
its probable duration. The Board of Trustees has the discretion to
request that another doctor, selected by the Board, examine the patient.
Final determination of disability will be based on the reports of at least
one doctor and by a 2/3 majority of a quorum of the Board of Trustees
present at the subsequent Association meeting.
v) An applicant shall not be considered under a disability unless he/she
furnishes adequate proof of the existence thereof. An applicant's
12
145&47v9
statement as to pain or other symptoms will not alone be conclusive
evidence of disability as defined in this section.
vi) Grievance Procedure. If the applicant for disability benefits feels he/she
has been aggrieved by any action of the Board, he/she shall, within sixty
(60) days from notice of such action of the Board, file written objections
and the reasons thereof with the Board and shall be allowed to appeal
the determination pursuant to the review procedure in these bylaws.
Section 13.3 Temporary Disability Benefits. Upon the approval of the application
therefore, any member of this Association who becomes temporarily physically
incapacitated for active duty in the Chanhassen Fire Department because of illness or
injury sustained in the performance of such duty and who is unable to work for one
week or longer shall be paid a benefit of $5.00 per day for a period no longer than 120
days in any one fiscal year, providing he/she is under the care of a physician or doctor
during this period and the physician or doctor submits a written opinion concerning the
diagnosis and prognosis of the applicant's temporary disability and inability to work, its
probable duration, and the cause of the injury or illness.
Section 13.4. Military Leave.
A. Authorization. Subject to restrictions stated in Minn. Stat. § 424A.021,
a volunteer firefighter who is absent from firefighting service due to service in the
uniformed serices, as defined in United States Code, Title 38, section 4303(13), may
obtain an allocation by the relief association as though the person was an active
member for the period of the uniformed service, not to exceed five (5) years, unless a
longer period is required under United States Code, title 38, section 4312.
B. Limitations.
(a) To be eligible for an allocation as though an active member under this
section, the volunteer firefighter must return to firefighting service with coverage by
this Association upon discharge from service in the uniformed service within the time
frame required in United States Code, title 38, section 4312(e).
(b) An allocation as though an active member is not authorized if the
firefighter separates from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions. An allocation as though an active
member is also 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.
Section 13.5. Approval of Claims. The Board of Trustees, upon being satisfied of the
merit of any claim for benefits shall endorse its approval by a 2/3 majority of a quorum
of the Board of Trustees present at the Association meeting.
13
145847v9
Section 14.1. Vesting. In the event a member with 5 years or more but less than 20
years of active service on the Chanhassen Fire Department resigns or otherwise
becomes a nonmember, that person shall be entitled to the following benefits that
represents the nonforfeitable portion of:
Completed Years of Service
5
6
7
8
9
1.0
11
12
13
14
15
16
17
18
19
20 and thereafter
Nonforfeitable Percentage
of Pension Amount
40%
44%
48%
52%
56%
60%
64%
68%
72%
76%
80%
84%
88%
92%
96%
100%
0101 W 04• • 1 ! `fl.`7
Section 15.1. Deferred Pension. Effective January 1, 2001, a member of the
Association who is otherwise qualified for a service pension but who has not reached
the age of fifty years may retire from the Chanhassen Fire Department without
forfeiting his/her right to such pension. Upon the application of such member, he/she
shall be placed on a deferred pension roil and shall be entitled to receive the pension
upon reaching the age of fifty years and making application therefore. At that time, the
Association shall pay the member amount payable per year of service in effect at the
time of retirement. Deferred pensions prior to January 1, 2001 will be calculated as of
January 1, 2001. During the time a member is on the deferred pension roll he/she will
not be eligible for any disability benefits as provided in Section 1 of this article.
14
145847v9
Section 16. 1. Active Service. Active service shall be defined as provided under
Article Il. Annually, the Board of Trustees shall obtain certification from the Fire
Chief of each member's active service.
Section 16.2. Break in Service. A member unable to perform the duties of a firefighter
because of a temporary disability incurred in the line of duty as a firefighter shall be
considered to be on active duty. If the member is unable to perform the duties of a
firefighter for any other reason, including approved leaves of absence, the member
shall be considered to have a break in service and shall not receive service credit in the
Association for that period of time. Parts of years may be added together to compute
full years. A member, upon the resumption of active service with the Fire Department,
shall recommence membership in the Association if the member's break in service was
less than 60 days. Breaks in service due to Uniform Service Leave, Minn. Stat. §
424.021, Family and Medical Leave Act (FMLA), 29 U.S.C. § 2601 et al., or any other
periods of inactive service protected by Federal or State law shall be handled in
accordance with the relevant law.
Section 16.3. Return to Service. Any member who has ceased to perform or supervise
fire suppression and fire prevention duties for at least 60 days, including former
members that have received payment for an accrued pension or benefit, shall be
eligible to resume active membership in the Association should the member resume
active firefighting duties with the Chanhassen Fire Department. Upon a resumption of
active service, the member must remain in active service with the Chanhassen Fire
Department equal in time to the leave of absence to accrue any additional service
credit with the Association. If the member completes the minimum period of
resumption service specified in this Section prior to a subsequent cessation of
firefighting duties, the member shall receive a service pension for all years of active
service (and months, if applicable) calculated at the benefit level in effect on the date of
the member's final cessation of duties, however, no member may be paid a service
pension twice for the same period of service.
If the member does not complete the minimum period of resumption service specified
in this Section prior to a subsequent cessation of duties, the member shall receive a
service pension for the member's original years of service calculated at the benefit
level in effect upon the member's original cessation of duties, with no credit for the
subsequent period of active service.
F41 1114 ,: OV 1 No 1 _
Section 17.1. Amending By -Laws. The By-laws of this Association may be amended
at any regular or special meeting thereof by a favorable vote of two-thirds of the
members present and voting, provided that a quorum of 50% of voting members are
present and provided further that a notice be mailed to each member at his/her last
known address not less than ten (10) days prior to such meeting. If such amendment or
amendments shall change the amount of, manner of payment of, or the conditions for
qualification for services pensions or ancillary benefits or disbursements other than
15
145847v9
administrative expenses payable from the special fund of the Association, then the
amendments shall be submitted to the Chanhassen City Council for approval.
Approved by the Chanhassen City Council September 10, 1984
Approved by Amendment by the Chanhassen City Council March 3, 1986
Approved by Amendment by the Chanhassen City Council October 24, 1988
Approved by Amendment by the Chanhassen City Council January 28, 1991
Approved by Amendment by the Chanhassen City Council November 25, 1991
Approved by Amendment by the Chanhassen City Council October 25, 1993
Approved by Amendment by the Chanhassen City Council April 9, 2001
Approved by Amendment by the Chanhassen City Council February 13, 2006
Approved by Amendment by the Chanhassen City Council December 8, 2014
Adopted by the Chanhassen Relief Association October 29, 1984
Amended by the Chanhassen Fire Relief Association March 17, 1986
Amended by the Chanhassen Fire Relief Association December 14, 1988
Amended by the Chanhassen Fire Relief Association October 15, 1990
Amended by the Chanhassen Fire Relief Association December 16, 1991
Amended by the Chanhassen Fire Relief Association August 311, 1993
Amended by the Chanhassen Fire Relief Association May 8, 2006
Amended by the Chanhassen Fire Relief Asosciation December 8, 2014
16
14ss47v9