Payment of Fines and Penalties

Special fund assets may be disbursed for purposes expressly authorized under Minnesota law. Authorized special fund disbursements include service pension, disability, and survivor benefit payments, and certain authorized administrative expenses. Administrative expenses that may be paid from the special fund include office expenses, officer salaries, training fees, and professional expenses.

The OSA occasionally sees special fund assets used to pay for fines or penalties, such as late filing penalties with the Internal Revenue Service (IRS).

Relief associations have authority to pay filing and application fees (like IRS fees) from a relief association’s special fund if the fees are payable to federal or other governmental entities. Fines and penalties are not allowable expenses from a relief association’s special fund. Any fines or penalties incurred by a relief association, including late filing penalties with the IRS, must be paid from the relief association’s general fund.

Last Updated August 2025