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RESO 24-064 - Updated Fire Relief Association BylawsRESOLUTION NO. 24-064 RESOLUTION APPROVING GOLDEN VALLEY FIRE DEPARTMENT RELIEF ASSOCIATION BY-LAWS WHEREAS, the Golden Valley Fire Department Relief Association has by-laws governing their process for active duty; and WHEREAS, an active member of the Golden Valley Fire Department Relief Association is eligible to collect a lump sum service pension subject to Article XI of the by- laws; and WHEREAS, the City of Golden Valley may be required to approve changes to the Relief Association by-laws; and WHEREAS, the has City Council as reviewed the revised by-laws as shown in Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota that this Council approves the revised Bylaws of the Golden Valley Fire Department Relief Association attached hereto as Exhibit A. This resolution replaces and supersedes Resolution No. 22-122. Adopted by the City Council of Golden Valley, Minnesota this 15th day of October 2024. _____________________________ Roslyn Harmon, Mayor ATTEST: _____________________________ Theresa Schyma, City Clerk Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D i By-Laws of the Golden Valley Fire Department Relief Association TABLE OF CONTENTS ARTICLE I. ASSOCIATION NAME ............................................................................................. Page 1 ARTICLE II. ASSOCIATION PURPOSE ........................................................................................ Page 1 ARTICLE III. DEFINITIONS ARTICLE III. DEFINITIONS Section I: Membership ....................................................................................................................... Page 1 Section II: Deferred Member .............................................................................................................. Page 1 Section III: Former Member ................................................................................................................ Page 1 Section IV: Fire Department ................................................................................................................. Page 1 Section V: Fiduciary Responsibility .................................................................................................... Page 1 Section VI: Beneficiary ......................................................................................................................... Page 1 Section VII: Disability ............................................................................................................................ Page 2 Section VIII: Board of Trustees ............................................................................................................... Page 2 Section IX: Year of Active Service ........................................................................................................ Page 2 Section X: Active Service .................................................................................................................... Page 2 Section XI: Leave of Absence ............................................................................................................... Page 2 Section XII: Trustees .............................................................................................................................. Page 2 Section XIII: Domestic Relations Order .................................................................................................. Page 2 ARTICLE IV. ASSOCIATION MEMBERSHIP Section I: Application for Membership ............................................................................................... Page 2 Section II: Expulsion From Membership ............................................................................................ Page 2 ARTICLE V. ASSOCIATION MEETINGS Section I: Meetings of the Board of Trustees ...................................................................................... Page 2 Section II: Association Meetings ........................................................................................................ Page 2 Section III: Order at Meetings .............................................................................................................. Page 2 ARTICLE VI. ASSOCIATION MANAGEMENT Section I: Board of Trustees .............................................................................................................. Page 3 Section II: External Examiner ............................................................................................................. Page 3 Section III: Committees ....................................................................................................................... Page 3 ARTICLE VII. POWERS AND DUTIES OF THE BOARD OF TRUSTEES AND ITS OFFICERS Section I: Powers and Duties of the Board of Trustees ..................................................................... Page 4 Section II: Trustees Diligence .............................................................................................................. Page 4 Section III: Continuing Education ....................................................................................................... Page 4 Section IV: Duties ................................................................................................................................. Page 4 Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D ii ARTICLE VIII. FUNDS AND ACCOUNTS Section I: General Fund .................................................................................................................... Page 4 Section II: Special Fund ..................................................................................................................... Page 4 Section III: Lines of Credit .................................................................................................................. Page 4 Section IV: Disbursement of Funds .................................................................................................... Page 5 Section V: Deposits ............................................................................................................................ Page 5 ARTICLE IX. INVESTMENTS Section I: Investments ...................................................................................................................... Page 5 Section II: Investment Policy ............................................................................................................ Page 5 Section III: State Statute Compliance .................................................................................................. Page 5 ARTICLE X. APPLICATION FOR BENEFITS Section I: Application For Benefits ................................................................................................. Page 5 Section II: Approval of Benefits ........................................................................................................ Page 5 Section III: Right to Appeal the Decision ........................................................................................... Page 5 ARTICLE XI. RETIREMENT BENEFIT Section I: Service Pension ................................................................................................................ Page 6 Section II: Association Recommendation .......................................................................................... Page 7 ARTICLE XII. ANCILLARY BENEFITS Section I: Death Benefit ................................................................................................................... Page 7 Section II: Permanent Disability Benefit .......................................................................................... Page 7 ARTICLE XIII. LIMITS ON BENEFITS Section I: Domestic Relations Order ............................................................................................... Page 8 Section II: Garnishment, Judgment or Legal Process ....................................................................... Page 9 Section III: Assignment of Payments .................................................................................................. Page 9 Section IV: Limitations on Ancillary Benefits ................................................................................... Page 9 Section V: Internal Revenue Code Limitations ................................................................................. Page 9 ARTICLE XIV. BY-LAW AMENDMENTS Section I: Method of Amendment ................................................................................................... Page 9 Section II: Council Approval ............................................................................................................ Page 9 Section III: Legislative Action .......................................................................................................... Page 9 Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 1 ARTICLE I. ASSOCIATION NAME Section 1: The name of the relief association is the Golden Valley Fire Department Relief Association. ARTICLE II. ASSOCIATION PURPOSE Section 1: This instrument constitutes the by-laws of the Golden Valley Fire Department Relief Association, hereinafter referred to as the "Association," adopted for the purpose of regulating and managing the internal affairs of the corporation and shall serve as the written pension plan for the relief association. The Association is a defined benefit plan association. The Association is a governmental entity that receives and manages public money to provide retirement benefits for individuals who provide or have provided the governmental services of firefighting for the City of Golden Valley. The objectives of the plan shall be to provide service pensions and ancillary benefits to the members of the Golden Valley Fire Department, their spouses and dependents. All benefits issued by this association shall be governed by these by-laws as well as federal and state laws. ARTICLE III. DEFINITIONS Section I: Membership – All active paid-on-call firefighters hired by the Golden Valley Fire Department for the purposes of fire suppression or the supervision of fire suppression activities. Section II: Deferred Member - Individuals who have resigned from the Golden Valley Fire Department and are eligible for a service pension. Section III: Former Member - Individuals who have left active service from the Golden Valley Fire Department prior to eligibility for a service pension. Section IV: Retired Member: Individuals who have resigned from the Golden Valley Fire Department and have collected a service pension. Section V: Fire Department - Wherever used in these by-laws, it shall mean Fire Department of the City of Golden Valley, Minnesota. Section VI: Fiduciary Responsibility - 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. No trustee of the Association shall cause the relief association to engage in transactions if the fiduciary knows or should know that the transaction constitutes one of the following direct or indirect transactions: a. sale, exchange or leasing of any real property between the relief association and a board member; b. lending of money or other extension of credit between the relief association and a board member of the relief association; c. furnishing of goods, services or facilities between the relief association and a board member; d. transfer to a board member, 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 of administrative expenses permitted by law. Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 2 Section VII: Beneficiary - Any person or estate entitled under this plan to receive a benefit upon the death of a participant. Section VIII: Disability - A physical or psychological condition which precludes an active member of the Association from performing the normal duties of a Firefighter with the Golden Valley Fire Department. Section IX: Board of Trustees - The Board of Trustees shall be composed of nine members as specified under Minn. Stat. § 424A.04. The six elected trustees are: President, Vice-President, Secretary, Treasurer and two trustees. The Mayor, the Finance Director and the Fire Chief of the City of Golden Valley shall be the ex-officio members of the Board of Trustees. Section X: Year of Active Service - For purposes 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 Golden Valley Fire Department. Section XI: Active Service - The active performance of fire suppression duties or the supervision of fire suppression duties. Section XII: Leave of Absence - If a member has an approved leave of absence from the Fire Department, they shall also be considered on leave of absence from the relief association. Leaves of absences include but are not limited to medical, personal or military. Section XIII: Trustees - The individuals designated as such by Minn. Stat. § 424A.04 and by virtue of elected office, those that qualify as the ex-officio trustee. Section XIV: Domestic Relations Order - Any judgment, decree (including approval of a property settlement agreement) that complies with the provisions of Minn. Stat. §§ 518.58, 518.581, or 518.611. ARTICLE IV. MEMBERSHIP Section I: Application for Membership - All persons hired by the City of Golden Valley for fire suppression activities for the Golden Valley Fire Department are automatically included in membership in the association. Membership date shall be the date the person was placed on active duty with the fire department. Section II: Expulsion from Membership - Any member may be expelled from the Association for cause by a two -thirds (2/3) vote of all members present at a regular or special meeting of the Association. Cause for expulsion may include, but shall not be limited to, failure to account for money belonging to the Association or feigning illness or injury for the purpose of defrauding the Association. An expulsion hearing before the Board of Trustees will be conducted prior to above stated Association meeting in order to allow the person involved the ability to challenge any witnesses that the Board of Trustees may call. Written notice via registered mail will be sent to the individual at least 15 days prior to the hearing. ARTICLE V. MEETINGS Section I: Meetings of the Board of Trustees - Meetings of the Board of Trustees shall be conducted in accordance with the Association Management Policy. Section II: Association Meetings - Meetings of the Association will be conducted in accordance with the Association Management Policy. Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 3 Section III: Order at Meetings - Robert's Rules of Order shall govern all deliberations of the Association. ARTICLE VI. BOARD OF TRUSTEES Section I: Board of Trustees - shall be composed of the nine members as defined in Minn. Stat. § 424A. The six elected trustees of the Association are: President, Vice-President, Secretary, Treasurer and two Trustees. The Mayor, Finance Director and Fire Chief of the City of Golden Valley shall be ex-officio members of the Board of Trustees with the same rights, privileges, duties and liabilities as other members of the Board of Trustees. The elected offices shall be governed by the following: a. Term – Each elected member of the Board of Trustees shall hold office following their election for a period of two years until that person’s successor has been elected. The President, Secretary, and one Trustee shall be up for election at the annual meeting held in odd numbered years and the Vice-President, Treasurer and the other Trustee shall be elected at the annual meeting held in even numbered years. The term will begin on January 1st, following the annual meeting at which the person is elected. b. Eligibility - Each elected member of the board must be an active member of the association. The member shall be an active member of the association for a minimum of 2 years prior to being elected. This requirement may be waived by a 2/3 vote of the members present at the election. An elected member may be allowed to serve while out on injury/illness leave, from the Golden Valley Fire Department, not to exceed 6 months without review by the Board of Trustees. c. Vacancies - Vacancies due to resignation, removal or termination in any elected office of the Board of Trustees shall be filled by an election held at either a regular or special meeting of the Association. The individual elected to fill the vacancy shall serve only the remaining term of the position vacated and their term begins immediately upon election. d. Removals - An elected member of the Board of Trustees is automatically removed from the elected position upon resignation, termination or leave of absence from the Fire Department (medical leaves of absence are not included). Any elected member may be removed for cause at a hearing to take place at a regular or special meeting of the Board of Trustees. No elected member shall be removed unless written notice of the meeting has been posted listing the reason for removal and a copy of the notice has been sent by certified mail to the member to be removed. A simple majority of members present at the removal hearing must vote in favor of removal in order for the elected member to be removed. When a member has been removed, and election will be held at the next regularly scheduled general membership meeting to fill the vacant position for the remaining term. Cause for removal shall include, but not be limited to, fraud, dishonesty, incompetence or failure to perform duties as they relate to the position, or failure to attend a minimum of nine (9) Board of Trustees regular meetings. e. Compensation of Elected Members - Compensation for the elected members of the Board of Trustees is detailed in the Board Member and Trustee Policy. f. Board Member Position Descriptions – Position descriptions and responsibilities are detailed in the Board Member and Trustee Policy. Section II: External Examiner – At the discretion of the Board of Trustee’s the Association may seek outside professionals including but not limited to legal, medical or financial professionals as necessary to validate claims or provide opinions for the Association. Section III: Committees - The President may appoint any committees necessary for the successful Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 4 operation of this association. ARTICLE VII. POWERS AND DUTIES OF THE BOARD OF TRUSTEES AND ITS OFFICERS Section I: Powers and Duties of the Board of Trustees - The Board of Trustees shall have exclusive control and management of all property and funds of the Association, from whatever source derived, and shall constitute the governing body of the Association with full power and authority to carry out the objectives and purpose of the Association as set forth in the Articles of Incorporation, these by-laws and the laws of the State of Minnesota. Section II: Trustees Diligence - 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 III: Continuing Education - The Board of Trustees shall develop and periodically revise a plan for continuing education for all members and officers of the Board of Trustees in order to ensure those trustees keep abreast of their fiduciary responsibilities. The annual level for this requirement will be assigned in the Board Member and Trustee Policy. Section IV: Duties – The duties of the President, Vice-President, Secretary, Treasurer and Trustees shall be defined in the Board Member and Trustee Policy. ARTICLE VIII. FUNDS AND ACCOUNTS Section I: General Fund - The funds received by the Association from dues, fines, fund raisers and other miscellaneous sources shall be kept in a general fund on the books of the Treasurer and may be distributed by the Association for any purpose reasonably suited to the welfare of the Association or its members as governed by the laws of the State of Minnesota. Moneys in the General Fund shall be disbursed upon the approval of a simple majority of members present at either a General Membership meeting or a Board of Trustees meeting. All disbursements from the General fund will be for activities and/or expenses approved by the General membership. Section II: Special Fund - All funds received by this Association qualifying 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 relief association, any moneys or property donated, given, granted or devised excluding fund raiser 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. 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: a. Payment of members' service pension benefits in accordance with these by-laws; b. Payment of ancillary benefits in accordance with these by-laws; c. Administrative expenses as limited by Minn. Stat. § 69.80. All other expenses of the Association shall be paid out of the General Fund. Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 5 Section III: Lines of Credit - The Board of Trustees may as deemed necessary, open lines of credit for the purchase of various items as approved by the General Membership. Section IV: Disbursement of Funds - No disbursements from the funds of the Association shall be made except on signed authorization of any two of the following elected members of the Board of Trustees: President, Vice-President, Secretary, Treasurer. The exact amount of any disbursement must be authorized by a simple majority of members present at either a General Membership meeting or a Board of Trustees meeting. Section V: Deposits - All moneys belonging to the Association shall be deposited to the credit of the association into accounts set up at the depository of record. The depository of record shall be determined at the annual meeting of the Board of Trustees and record of the depository shall be documented in the Association Management Policy. The Board of Trustees shall make deposits in conformance with State Statutes, these by-laws the Association Management Policy and the Investment policy. ARTICLE IX. INVESTMENTS Section I: Investments - It shall be the duty of the Board of Trustees to prepare modes and plans for the safe and profitable investment of the funds of the Association. The investments of the funds of the Association shall be in the exclusive control of the Board of Trustees, in conformance with state statutes, the by-laws and the investment policy. Section II: Investment Policy - The Board of Trustees shall adopt a written Investment policy each year. Section III: State Statute Compliance - The Board of Trustees shall comply with Minn. Stat. § 356A.06, Subdivision 8b that requires the relief association to provide annually to any brokers a written statement of investment restrictions pursuant to statute of the investment policy that applies to the special fund. Upon receipt of the written statement of investment restrictions, each broker handling investments of the Association shall acknowledge, in writing annually the receipt of the investment restrictions. The acknowledgment shall contain a statement of the broker's agreement to handle the Association's investments pursuant to the written restrictions. ARTICLE X. APPLICATION FOR BENEFITS Section I: Application For Benefits - All applications for Association benefits must be made in writing on forms provided by the Secretary. All applications shall be submitted to a member of the Board of Trustees for action. Section II: Approval of Benefits - No application shall be acted upon until all the necessary forms and information have been provided to the Board of Trustees. It shall be the duty of the Board of Trustees to approve applications for service pensions if the applicant meets all of the eligibility requirements set forth in these by-laws. It shall also be the duty of the Board of Trustees not to approve the application if any of the eligibility requirements are not met. Section III: Right to Appeal Decision - In the event that the Board of Trustees denies an application for a service or ancillary pension the applicant has the right to appeal the board decision. Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 6 ARTICLE XI. RETIREMENT BENEFIT Section I: Service Pension - An active member of the Association who leaves active duty with the Fire Department is eligible to collect a lump sum service pension subject to the following: a. Eligibility requirements: 1. Have left active service with the Golden Valley Fire Department; 2. Have completed at least 5 years of active service with the Fire Department before leaving; and 3. Have been a member of the Association in good standing at least 5 years prior to leaving the Fire Department. b. Amount of Benefit - Each applicant shall be eligible for a service pension of $13,000 per full year of active service as a firefighter with the fire department. c. Early Vesting Provision - In the event a member with five years or more, but less than ten years of active service on the City of Golden Valley Fire Department resigns, that person shall be entitled to the following benefits that represent the early vested portion of their total pension amount, reduced by twelve (12) percent per year for each year less than 10. The following table shall be used to determine the pension amount, less any accrued interest: Completed Years of Service Early Vesting Reduction Pension Amount 5 60 percent $ 26,000 6 48 percent $ 40,560 7 36 percent $ 58,240 8 24 percent $79,040 9 12 percent $102,960 10 0 percent $130,000 More than 10 none add $13,000 per year d. Minimum Age Requirement - No service pension shall be paid to any member until they reach 50 years of age. e. Deferred Retirement Benefit - Any active member of the Association who leaves active duty with the Fire Department and is eligible for a service pension, but has not reached the age of 50, will be placed on a deferred pension list until the time that the member submits an application for the pension. f. Return to Service – (i) If a Deferred Member, should return to active service, (they are deemed qualified and subsequently hired by the fire department) they shall serve three (3) years before qualifying for the current benefit level. The three (3) year period must be completed prior to their subsequent retirement. If the deferred member fails to complete the three (3) years, any time they serve will be added to their previous active service time and their pension amount will be calculated based on the pension amount in effect when they originally left active service. Any additional service, will be credited if it is consistent with the rules for accruing time in the by-laws. The Deferred Member shall be informed of their specific requirement prior to their re-hiring on the fire department. (ii) If a Former Member should return to active service, they shall serve three (3) years before qualifying for the current benefit level and vesting schedule. The three (3) year period must Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 7 be completed prior to their subsequent retirement. If the Former Member fails to complete the three (3) years, any time they serve will be added to their previous active service time and their pension amount and vesting schedule will be calculated based on the pension amount and vesting schedule in effect when they originally left active service. Any additional service, will be credited if it is consistent with the rules for accruing time in the by-laws. The Former Member shall be informed of their specific requirement prior to their re-hiring on the fire department. (iii). If a Retired Member should return to service, they will be treated as a new member and will begin accruing time anew. In no event will a member receive duplicate benefits for the same time period of service. g. Interest on the Deferred Retirement Benefit – Interest shall be added to the deferred benefit amount, compounded annually, at a rate equal to the actual time weighted total rate of return of the fund as set by the board of trustees under Minn. Stat. § 356.219, up to 5%, and applied consistently for all deferred service pensioners. Minn. Stat. § 424A.02, subd. 10(b), requires municipal ratification of the rate set by the board of trustees in years in which the relief association does not have a surplus over full funding under Minn. Stat. § 69.772, subd 3, paragraph (c), clause (5), or 69.773, subd 4, and if the municipality is required to provide financial support to the special fund of the relief association under Minn. Stat. § 69.772 or 69.773. As of the date of this amendment, the following rates have been set by the board: 2006 = 5%, 2007 = 5%, 2008 = 0%, 2009 = 0%, 2010 = 5%, 2011 = 0%, 2012 = 5%, 2016 = 0%. The deferred interest rate as set by the board of trustees under Minn. Stat. § 356.219, is 0% unless and until otherwise changed by amending these bylaws. Interest will not accrue for any year in which the member reaches the eligible to be paid out. h. Supplemental Retirement Benefit - Pursuant to Minn. Stat. § 424A.10, all retirees shall be paid a supplemental benefit in the amount of 10% of his or her service pension amount, not to exceed $1,000.00. This benefit shall be paid at the same time as the retirement benefit. In the event that Minn. Stat. § 424A.10 is amended or repealed, this benefit shall be amended or discontinue as per state statute. i. Deferred Interest Payment Method – Interest on a deferred service pension is creditable beginning on the first date of the calendar year next following the date on which the member separated from active Fire Department service and active Association membership and ending on the last date of the calendar year immediately before the year in which the deferred member commences receipt of the deferred service pension. Members must be deferred for an entire calendar year to receive interest for that year. Section II: Association Recommendation - Because of the varying circumstances in each member's retirement planning, the Association strongly recommends consultation with a tax consultant, insurance and/or estate planner or an attorney before requesting payment of their service pension. ARTICLE XII. ANCILLARY BENEFITS Section I: Death Benefit - Upon the death of an active member, the association shall pay to the surviving spouse and surviving children. If there is no surviving spouse or surviving children the benefit is paid to the designated beneficiary. If there is no designated beneficiary, the death benefit shall be paid to the estate of the deceased active or deferred firefighter. They shall be paid equal to the current yearly lump sum service pension rate multiplied by the number of Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 8 years of active service. The minimum benefit shall be equal to five (5) times the current yearly lump sum service pension rate and without regard to the vesting schedule. Deferred members shall be paid an amount equal to their current deferred pension amount. Section II: Permanent Disability Benefits - A member who is permanently disabled shall be eligible to collect a disability benefit. The member shall be eligible to receive the disability benefit immediately upon approval of the Board of Trustees. a. 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. b. Disability defined: see Article III - Definitions. c. Documentation Required - No member shall be paid disability benefits except upon the written report of a physician, surgeon or chiropractor of the member's choice. This report shall set forth the diagnosis and prognosis of the disability, disease or injury of the member. Each such document shall be filed with the Association. d. Procedure - All applications for disability benefits shall be made within 30 days after such applicant has ceased to be an Active Member of the Golden Valley Fire Department. Written application shall be made to the Board setting out the nature and cause of such disability as described above. It is recommended that the applicant may be examined by a physician, surgeon or chiropractor of the member's choice. The physician or chiropractor shall submit a written opinion concerning the diagnosis and prognosis of the applicant's disability and its probable date of onset and the probable duration of permanence. The Board of Trustees has the discretion to request that another doctor, selected by the Board, examine the applicant. Final determination of disability will be based on the reports of at least one doctor and by a 2/3 majority vote of a quorum of the Board of Trustees present at the subsequent association meeting. e. An applicant shall not be considered under a disability unless the member furnishes adequate proof of the existence thereof. An applicant's statement as to pain or other symptoms will not alone be conclusive evidence of disability as defined in this section. f. Disability Amount – Permanent disability benefits may be paid to permanently disabled members of the Association out of the Special Fund following the submission and approval of an Application for Distribution. g. For Active Members, a permanent disability benefit equal to the benefit level for each year that the member served as an active firefighter in the Fire Department, without regard to minimum or partial vesting requirements, will be paid if, upon the date of permanent disability, the member has not yet separated from active service. The years of service must be determined as of the date of disability. The member is eligible to receive the disability benefit immediately upon approval by the Board. h. For Deferred Members, a permanent disability benefit equal to a disabled deferred member’s deferred service pension will be paid to the disabled deferred member. The permanent disability benefit amount may not exceed the total earned service pension of the disabled member. i. For Active and Deferred Members, temporary disability benefits are not provided by this Association. ARTICLE XIII. LIMITS ON BENEFITS Section I: Domestic Relations Order - A qualified domestic relations or domestic relations order shall be accepted by the plan administrator if in compliance with state and federal law. A distribution made pursuant to a domestic relations order shall be treated as made pursuant to qualified Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D 9 domestic relations order as specified by I.R.C. 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. Section II: Garnishment, Judgment or Legal Process - No service pension or ancillary benefits paid or payable from the special fund of a relief 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 in section 518.58, 518.581 or 518.611. Section III: Assignments of Payments - No person entitled to a service pension or ancillary benefit from the special fund of a relief association may assign any service pension or ancillary benefit payments, nor shall the association have the authority to recognize any assignment or pay over any sum which has been assigned. Section IV: Limitations on Ancillary Benefits - Following the receipt of a lump sum service pension benefit or being placed on the deferred pension list, neither a member's surviving spouse, children, designated beneficiary or estate is entitled to any other or further financial relief or benefits from the Association. Section V: Internal Revenue Code Limitations - 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 subsequently be amended. ARTICLE XIV. BY-LAW AMENDMENTS Section I: Method of Amendment - All amendments to these by-laws shall be proposed by a resolution adopted by the Board of Trustees setting forth the proposed amendments and direction that they should be submitted for adoption at a meeting of the Association. Notice of the meeting shall state the purpose and be given to each member eligible to vote on the amendments. All amendments must be approved by a two-thirds (2/3) vote of all members present at a regular or special meeting of the Association. Section II: Council Approval - When required by Minnesota State Statutes or the Board of Trustees, no by-laws or amendments of the by-laws shall be effective until approved by the governing body of the City of Golden Valley. Section III: Legislative Action - In the event that an amendment exceeds the authority granted this Association by Minnesota Statutes, such amendments will not be effective until approved by legislative action. Docusign Envelope ID: 06FAD29C-CA38-471C-A773-CDA030EFAE0D