Minnesota Legislature
HF 343
as introduced - 88th Legislature (2013 - 2014) Posted on 02/04/2013 03:04pm
Current Version - as introduced
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A bill for an act
relating to retirement; Public Employees Retirement Association; revising
the definition of salary; amending Minnesota Statutes 2012, section 353.01,
subdivision 10.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
Subd. 10.
Salary.
(a) Subject to the limitations of section 356.611, "salary" means:
(1) the new text begin wages or new text end periodic compensation deleted text begin ofdeleted text end new text begin paid to new text end a public employeedeleted text begin ,deleted text end new text begin by the
employing governmental subdivision new text end beforenew text begin :
new text end
new text begin
(i) employee retirement deductions that are designated as picked-up contributions
under section 356.62; and
new text end
new text begin (ii) any employee-elected tax-sheltered new text end deductions for deferred compensation,
supplemental retirement plans, or other voluntary salary reduction programsdeleted text begin , and also
means "wages" and includes net income from feesdeleted text end new text begin that would have otherwise been
available as a cash payment to the employeenew text end ;
(2) for a public employee who is covered by a supplemental retirement plan
under section 356.24, subdivision 1, clause new text begin (7), new text end (8), (9), or (10), deleted text begin which require all plan
contributions be made bydeleted text end the employerdeleted text begin , the contributiondeleted text end new text begin contributions new text end to the applicable
supplemental retirement plan when an agreement between the parties establishes that the
deleted text begin contributiondeleted text end new text begin contributions new text end will either result in a mandatory reduction of employees' wages
through payroll withholdings, or be made in lieu of an amount that would otherwise be
paid as wages; deleted text begin and
deleted text end
(3) for a public employee who has prior service covered by a local police or
firefighters relief association that has consolidated with the Public Employees Retirement
Association or to which section 353.665 applies and who has elected coverage either
under the public employees police and fire fund benefit plan under section 353A.08
following the consolidation or under section 353.665, subdivision 4, the rate of salary
upon which member contributions to the special fund of the relief association were made
prior to the effective date of the consolidation as specified by law and by bylaw provisions
governing the relief association on the date of the initiation of the consolidation procedure
and the actual periodic compensation of the public employee after the effective date of
consolidationdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(4) for a public employee who receives payment through a grievance, settlement,
or court order that is attached to a specific period in which the employee's regular salary
was not earned or paid to the member due to suspension, leave of absence, or period of
involuntary termination that is not a wrongful discharge under section 356.50, the amount
that is equivalent to the earnings the member would have otherwise earned during the
applicable period;
new text end
new text begin
(5) for a member who is absent from employment by reason of an authorized
personal, parental, medical, or military leave of absence, the amount paid to the employee
during the leave period that is equivalent to the earnings the member would have otherwise
earned during the applicable period; and
new text end
new text begin
(6) for a public employee who receives performance or merit bonus payment under a
written compensation plan, policy, or bargaining agreement, the compensation paid to the
employee for attaining performance goals, duties, or measures during a specified period
of employment. Performance or merit pay may be in addition to regular salary or may
replace regular salary increases.
new text end
(b) Salary does not mean:
(1) the fees paid to district court reportersdeleted text begin ,deleted text end new text begin ;
new text end
new text begin (2)new text end unused annualnew text begin ,new text end vacationnew text begin , personal,new text end or sick leave payments, in new text begin the form of
new text end lump-sum or periodic payments, new text begin or the value of hours donated under a benevolent vacation
and sick leave donation program;
new text end
new text begin
(3) payments for accrued compensatory or overtime hours that are made at the time
of separation from service and that include pay for work performed in a calendar or school
year prior to the year in which the payment is issued;
new text end
new text begin (4) any form of new text end severance paymentsdeleted text begin ,deleted text end new text begin or retirement incentive payments;
new text end
new text begin (5) an allowance payment or per diem for or new text end reimbursement of expensesdeleted text begin ,deleted text end new text begin ;
new text end
new text begin (6)new text end lump-sum settlements not attached to a specific earnings perioddeleted text begin , ordeleted text end new text begin ;
new text end
new text begin (7) new text end workers' compensation paymentsnew text begin or disability insurance payments, including
payments from self-insured employersnew text end ;
deleted text begin (2)deleted text end new text begin (8) new text end employer-paid amounts used by an employee toward the cost of insurance
coverage, deleted text begin employer-paid fringe benefits,deleted text end flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or any payments in lieu of any employer-paid
group insurance coverage, including the difference between single and family rates that
may be paid to a member with single coverage and certain amounts determined by the
executive director to be ineligible;
new text begin
(9) employer-paid fringe benefits including, but not limited to:
new text end
new text begin
(i) employer-paid premiums for all types of insurance;
new text end
new text begin
(ii) membership dues or fees for use of fitness or recreational facilities;
new text end
new text begin
(iii) incentive payments or cash awards relating to wellness programs;
new text end
new text begin
(iv) the value of any nonmonetary benefits;
new text end
new text begin
(v) any form of payment made in lieu of an employer-paid fringe benefit;
new text end
new text begin
(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
annuity program; and
new text end
new text begin
(vii) any amount paid by the employer as a supplement to salary, either as a
lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
available to the employee as cash;
new text end
deleted text begin (3)deleted text end new text begin (10) new text end the amount equal to that which the employing governmental subdivision
would otherwise pay toward single or family insurance coverage for a covered employee
when, through a contract or agreement with some but not all employees, the employer:
(i) discontinues, or for new hires does not provide, payment toward the cost of the
employee's selected insurance coverages under a group plan offered by the employer;
(ii) makes the employee solely responsible for all contributions toward the cost of
the employee's selected insurance coverages under a group plan offered by the employer,
including any amount the employer makes toward other employees' selected insurance
coverages under a group plan offered by the employer; and
(iii) provides increased salary rates for employees who do not have any
employer-paid group insurance coverages;
deleted text begin (4)deleted text end new text begin (11) new text end except as provided in section 353.86 or 353.87, compensation of any
kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
in subdivision 35 or 36;
deleted text begin (5)deleted text end new text begin (12) new text end the amount of compensation that exceeds the limitation provided in section
356.611; deleted text begin and
deleted text end
deleted text begin (6)deleted text end new text begin (13) new text end amounts paid by a federal or state grant for which the grant specifically
prohibits grant proceeds from being used to make pension plan contributions, unless the
contributions to the plan are made from sources other than the federal or state grantdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
new text end
(c) Amountsnew text begin , other than those provided under paragraph (a), clause (4),new text end provided to
an employee by the employer through a grievance proceedingnew text begin , a court order,new text end or a legal
settlement are salary only if the settlement new text begin or court order new text end is reviewed by the executive
director and the amounts are determined by the executive director to be consistent with
paragraph (a) and prior determinations.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment,
except that paragraph (b), clause (9), item (vii), is effective retroactively from August
1, 2007.
new text end