HF 542

as introduced - 87th Legislature (2011 - 2012) Posted on 02/17/2011 09:52am

A bill for an act
relating to retirement; ending defined benefit public pension plan coverage;
proposing coding for new law in Minnesota Statutes, chapter 356A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [356A.99] TERMINATION OF PUBLIC PENSION PLAN
COVERAGE.
new text end

new text begin (a) For employment on and after July 1, 2011, no public employee or elected
official earns service credit in any Minnesota defined benefit public pension plan, and no
employee or official is required to contribute to a Minnesota defined benefit public pension
plan. A public employee who is not vested in a public pension plan on June 30, 2011,
may apply for and receive a refund of the employee contributions made to the plan, with
interest, as specified in the laws governing refunds from that plan.
new text end

new text begin (b) Each public employer shall continue to contribute to each defined benefit public
pension plan the same percentage of employee or official salary paid to the plan before
July 1, 2011, on behalf of any current and future employee or official who would have
earned service credit under laws in effect on June 30, 2011. The employer contribution to
a pension plan shall continue until the most recent actuarial valuation for the plan indicates
that the plan is projected to have enough assets to pay estimated liabilities without future
employer contributions.
new text end

new text begin (c) This section supersedes any conflicting law. This section does not apply to a
volunteer firefighter relief association or plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end