HF 726

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:41am

A bill for an act
relating to retirement; defining terms; amending disability benefits provisions;
making technical changes; amending Minnesota Statutes 2008, sections 43A.34,
subdivision 4; 299A.465, subdivision 1; 352.01, subdivision 2b; 352B.02,
subdivision 1; 352B.10, subdivisions 1, 2; 352B.11, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapter 352B; repealing Minnesota
Statutes 2008, section 352B.01, subdivisions 1, 2, 3, 3b, 4, 6, 7, 9, 10, 11.

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

Section 1.

Minnesota Statutes 2008, section 43A.34, subdivision 4, is amended to read:

Subd. 4.

Officers exempted.

Notwithstanding any provision to the contrary, (a)
conservation officers and crime bureau officers who were first employed on or after July
1, 1973, and who are members of the State Patrol retirement fund by reason of their
employment, and members of the Minnesota State Patrol Division and Alcohol and
Gambling Enforcement Division of the Department of Public Safety who are members
of the State Patrol Retirement Association by reason of their employment, shall not
continue employment after attaining the age of 60 years, except for a fractional portion
of one year that will enable the employee to complete the employee's next full year of
allowable service as defined pursuant to section deleted text begin 352B.01 deleted text end new text begin 352B.001 new text end , subdivision 3; and (b)
conservation officers and crime bureau officers who were first employed and are members
of the State Patrol retirement fund by reason of their employment before July 1, 1973,
shall not continue employment after attaining the age of 70 years.

Sec. 2.

Minnesota Statutes 2008, section 299A.465, subdivision 1, is amended to read:

Subdivision 1.

Officer or firefighter disabled in line of duty.

(a) This subdivision
applies to any peace officer or firefighter:

(1) who the Public Employees Retirement Association new text begin or the Minnesota State
Retirement System new text end determines is eligible to receive a duty disability benefit pursuant to
section 353.656 new text begin or 352B.10, subdivision 1, respectively new text end ; or

(2) who (i) does not qualify to receive disability benefits by operation of the
eligibility requirements set forth in section 353.656, subdivision 1, paragraph (b), (ii)
retires pursuant to section 353.651, subdivision 4, or (iii) is a member of a local police or
salaried firefighters relief association and qualifies for a duty disability benefit under the
terms of plans of the relief associations, and the peace officer or firefighter described in
item (i), (ii), or (iii) has discontinued public service as a peace officer or firefighter as a
result of a disabling injury and has been determined, by the Public Employees Retirement
Association, to have otherwise met the duty disability criteria set forth in section 353.01,
subdivision 41.

(b) A determination made on behalf of a peace officer or firefighter described in
paragraph (a), clause (2), must be at the request of the peace officer or firefighter made for
the purposes of this section. Determinations made in accordance with paragraph (a) are
binding on the peace officer or firefighter, employer, and state. The determination must be
made by the executive director of the Public Employees Retirement Association and is
not subject to section 356.96, subdivision 2. Upon making a determination, the executive
director shall provide written notice to the peace officer or firefighter and the employer.
This notice must include:

(1) a written statement of the reasons for the determination;

(2) a notice that the person may petition for a review of the determination by
requesting that a contested case be initiated before the Office of Administrative Hearings,
the cost of which must be borne by the peace officer or firefighter and the employer; and

(3) a statement that any person who does not petition for a review within 60 days
is precluded from contesting issues determined by the executive director in any other
administrative review or court procedure.

If, prior to the contested case hearing, additional information is provided to support the
claim for duty disability as defined in section 353.01, subdivision 41, the executive
director may reverse the determination without the requested hearing. If a hearing is held
before the Office of Administrative Hearings, the determination rendered by the judge
conducting the fact-finding hearing is a final decision and order under section 14.62,
subdivision 2a, and is binding on the executive director, the peace officer or firefighter,
employer, and state. Review of a final determination made by the Office of Administrative
Hearings under this section may only be obtained by writ of certiorari to the Minnesota
Court of Appeals under sections 14.63 to 14.68. Only the peace officer or firefighter,
employer, and state have standing to participate in a judicial review of the decision of the
Office of Administrative Hearings.

(c) The officer's or firefighter's employer shall continue to provide health coverage
for:

(1) the officer or firefighter; and

(2) the officer's or firefighter's dependents if the officer or firefighter was receiving
dependent coverage at the time of the injury under the employer's group health plan.

(d) The employer is responsible for the continued payment of the employer's
contribution for coverage of the officer or firefighter and, if applicable, the officer's
or firefighter's dependents. Coverage must continue for the officer or firefighter and, if
applicable, the officer's or firefighter's dependents until the officer or firefighter reaches or,
if deceased, would have reached the age of 65. However, coverage for dependents does
not have to be continued after the person is no longer a dependent.

Sec. 3.

Minnesota Statutes 2008, section 352.01, subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

"State employee" does not include:

(1) students employed by the University of Minnesota, or the state colleges and
universities, unless approved for coverage by the Board of Regents of the University of
Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities,
whichever is applicable;

(2) employees who are eligible for membership in the state Teachers Retirement
Association, except employees of the Department of Education who have chosen or may
choose to be covered by the general state employees retirement plan of the Minnesota
State Retirement System instead of the Teachers Retirement Association;

(3) employees of the University of Minnesota who are excluded from coverage by
action of the Board of Regents;

(4) officers and enlisted personnel in the National Guard and the naval militia who
are assigned to permanent peacetime duty and who under federal law are or are required to
be members of a federal retirement system;

(5) election officers;

(6) persons who are engaged in public work for the state but who are employed
by contractors when the performance of the contract is authorized by the legislature or
other competent authority;

(7) officers and employees of the senate, or of the house of representatives, or of a
legislative committee or commission who are temporarily employed;

(8) receivers, jurors, notaries public, and court employees who are not in the judicial
branch as defined in section 43A.02, subdivision 25, except referees and adjusters
employed by the Department of Labor and Industry;

(9) patient and inmate help in state charitable, penal, and correctional institutions
including the Minnesota Veterans Home;

(10) persons who are employed for professional services where the service is
incidental to their regular professional duties and whose compensation is paid on a per
diem basis;

(11) employees of the Sibley House Association;

(12) the members of any state board or commission who serve the state intermittently
and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those
boards if their compensation is $5,000 or less per year, or, if they are legally prohibited
from serving more than three years; and the board of managers of the State Agricultural
Society and its treasurer unless the treasurer is also its full-time secretary;

(13) state troopers and persons who are described in section deleted text begin 352B.01, subdivision 2 deleted text end new text begin
352B.001, subdivision 10 new text end , clauses (2) to (6);

(14) temporary employees of the Minnesota State Fair who are employed on or
after July 1 for a period not to extend beyond October 15 of that year; and persons who
are employed at any time by the state fair administration for special events held on the
fairgrounds;

(15) emergency employees who are in the classified service; except that if an
emergency employee, within the same pay period, becomes a provisional or probationary
employee on other than a temporary basis, the employee shall be considered a "state
employee" retroactively to the beginning of the pay period;

(16) temporary employees in the classified service, and temporary employees in the
unclassified service who are appointed for a definite period of not more than six months
and who are employed less than six months in any one-year period;

(17) interns hired for six months or less and trainee employees, except those listed in
subdivision 2a, clause (8);

(18) persons whose compensation is paid on a fee basis or as an independent
contractor;

(19) state employees who are employed by the Board of Trustees of the Minnesota
State Colleges and Universities in unclassified positions enumerated in section 43A.08,
subdivision 1, clause (9);

(20) state employees who in any year have credit for 12 months service as teachers
in the public schools of the state and as teachers are members of the Teachers Retirement
Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for
incidental employment as a state employee that is not covered by one of the teacher
retirement associations or systems;

(21) employees of the adjutant general who are employed on an unlimited
intermittent or temporary basis in the classified or unclassified service for the support of
Army and Air National Guard training facilities;

(22) chaplains and nuns who are excluded from coverage under the federal Old
Age, Survivors, Disability, and Health Insurance Program for the performance of service
as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no
irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1986, as amended through December 31, 1992;

(23) examination monitors who are employed by departments, agencies,
commissions, and boards to conduct examinations required by law;

(24) persons who are appointed to serve as members of fact-finding commissions or
adjustment panels, arbitrators, or labor referees under chapter 179;

(25) temporary employees who are employed for limited periods under any state or
federal program for training or rehabilitation, including persons who are employed for
limited periods from areas of economic distress, but not including skilled and supervisory
personnel and persons having civil service status covered by the system;

(26) full-time students who are employed by the Minnesota Historical Society
intermittently during part of the year and full-time during the summer months;

(27) temporary employees who are appointed for not more than six months, of
the Metropolitan Council and of any of its statutory boards, if the board members are
appointed by the Metropolitan Council;

(28) persons who are employed in positions designated by the Department of
Finance as student workers;

(29) members of trades who are employed by the successor to the Metropolitan
Waste Control Commission, who have trade union pension plan coverage under a
collective bargaining agreement, and who are first employed after June 1, 1977;

(30) off-duty peace officers while employed by the Metropolitan Council;

(31) persons who are employed as full-time police officers by the Metropolitan
Council and as police officers are members of the public employees police and fire fund;

(32) persons who are employed as full-time firefighters by the Department of Military
Affairs and as firefighters are members of the public employees police and fire fund;

(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa
valid for less than three years of employment, unless notice of extension is supplied which
allows them to work for three or more years as of the date the extension is granted, in
which case they are eligible for coverage from the date extended; and

(34) persons who are employed by the Board of Trustees of the Minnesota State
Colleges and Universities and who elected to remain members of the Public Employees
Retirement Association or the Minneapolis Employees Retirement Fund, whichever
applies, under Minnesota Statutes 1994, section 136C.75.

Sec. 4.

new text begin [352B.011] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Accumulated deductions. new text end

new text begin "Accumulated deductions" means the total
sums deducted from the salary of a member and the total amount of assessments paid
by a member in place of deductions, and credited to the member's individual account,
without interest.
new text end

new text begin Subd. 3. new text end

new text begin Allowable service. new text end

new text begin (a) "Allowable service" means:
new text end

new text begin (1) service in a month during which a member is paid a salary from which a member
contribution is deducted, deposited, and credited in the State Patrol retirement plan;
new text end

new text begin (2) for members defined in subdivision 10, clause (1), service in any month for
which payments have been made to the State Patrol retirement fund; and
new text end

new text begin (3) for members defined in subdivision 10, clauses (2) and (3), service for which
payments have been made to the State Patrol retirement fund, service for which payments
were made to the State Police officers retirement fund after June 30, 1961, and all prior
service which was credited to a member for service on or before June 30, 1961.
new text end

new text begin (b) Allowable service also includes any period of absence from duty by a member
who, by reason of injury incurred in the performance of duty, is temporarily disabled and
for which disability the state is liable under the workers' compensation law, until the
date authorized by the executive director for commencement of payment of a disability
benefit or return to employment.
new text end

new text begin Subd. 4. new text end

new text begin Average monthly salary. new text end

new text begin (a) Subject to the limitations of section 356.611,
"average monthly salary" means the average of the highest monthly salaries for five
years of service as a member upon which contributions were deducted from pay under
section 352B.02, or upon which appropriate contributions or payments were made to
the fund to receive allowable service and salary credit as specified under the applicable
law. Average monthly salary must be based upon all allowable service if this service is
less than five years.
new text end

new text begin (b) "Average monthly salary" means the salary of the member as defined in section
352.01, subdivision 13. "Average monthly salary" does not include any lump-sum annual
leave payments and overtime payments made at the time of separation from state service,
any amounts of severance pay, or any reduced salary paid during the period the person is
entitled to workers' compensation benefit payments for temporary disability.
new text end

new text begin Subd. 5. new text end

new text begin Department head. new text end

new text begin "Department head" means the head of any department,
institution, or branch of the state service that directly pays salaries from state funds
to a member who prepares, approves, and submits salary abstracts of employees to the
commissioner of finance.
new text end

new text begin Subd. 6. new text end

new text begin Dependent child. new text end

new text begin "Dependent child" means a natural or adopted unmarried
child of a deceased member under the age of 18 years, including any child of the member
conceived during the lifetime of the member and born after the death of the member.
new text end

new text begin Subd. 7. new text end

new text begin Duty disability. new text end

new text begin "Duty disability" means a physical or psychological
condition that is expected to prevent a member, for a period of not less than 12 months,
from performing the normal duties of the position held by the person as a member of the
state patrol retirement fund, and that is the direct result of any injury incurred during, or a
disease arising out of, the performance of normal duties or the actual performance of less
frequent duties, either of which are specific to protecting the property and personal safety
of others and that present inherent dangers that are specific to the positions covered by
the state patrol retirement fund.
new text end

new text begin Subd. 8 new text end

new text begin Fund. new text end

new text begin "Fund" means the State Patrol retirement fund.
new text end

new text begin Subd. 9. new text end

new text begin Less frequent duties. new text end

new text begin "Less frequent duties" means tasks which are
designated in the member's job description as either required from time to time or as
assigned, but which are not carried out as part of the normal routine of the member's
position.
new text end

new text begin Subd. 10. new text end

new text begin Member. new text end

new text begin "Member" means:
new text end

new text begin (1) a State Patrol member currently employed under section 299D.03 by the state,
who is a peace officer under section 626.84, and whose salary or compensation is paid
out of state funds;
new text end

new text begin (2) a conservation officer employed under section 97A.201, currently employed by
the state, whose salary or compensation is paid out of state funds;
new text end

new text begin (3) a crime bureau officer who was employed by the crime bureau and was a member
of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person
has the power of arrest by warrant after that date, or who is employed as police personnel,
with powers of arrest by warrant under section 299C.04, and who is currently employed
by the state, and whose salary or compensation is paid out of state funds;
new text end

new text begin (4) a person who is employed by the state in the Department of Public Safety in a
data processing management position with salary or compensation paid from state funds,
who was a crime bureau officer covered by the State Patrol retirement plan on August
15, 1987, and who was initially hired in the data processing management position within
the department during September 1987, or January 1988, with membership continuing
for the duration of the person's employment in that position, whether or not the person
has the power of arrest by warrant after August 15, 1987;
new text end

new text begin (5) a public safety employee who is a peace officer under section 626.84, subdivision
1, paragraph (c), and who is employed by the Division of Alcohol and Gambling
Enforcement under section 299L.01;
new text end

new text begin (6) a Fugitive Apprehension Unit officer after October 31, 2000, who is employed
by the Office of Special Investigations of the Department of Corrections and who is a
peace officer under section 626.84;
new text end

new text begin (7) an employee of the Department of Commerce defined as a peace officer in section
626.84, subdivision 1, paragraph (c), who is employed by the Division of Insurance Fraud
Prevention under section 45.0135 after January 1, 2005, and who has not attained the
mandatory retirement age specified in section 43A.34, subdivision 4; and
new text end

new text begin (8) an employee of the Department of Public Safety, who is a licensed peace officer
under section 626.84, subdivision 1, paragraph (c), and is employed as the statewide
coordinator of the Gang and Drug Oversight Council.
new text end

new text begin Subd. 11. new text end

new text begin Normal duties. new text end

new text begin "Normal duties" means specific tasks which are
designated in the member's job description and which the applicant performs on a
day-to-day basis, but do not include less frequent duties which may be requested to be
done by the employer from time to time.
new text end

new text begin Subd. 12. new text end

new text begin Regular disability. new text end

new text begin "Regular disability" means a physical or
psychological condition that is expected to prevent a member, for a period of not less than
12 months, from performing the normal duties of the position held by a person who is a
member of the State Patrol retirement plan, and which results from a disease or an injury
that arises from any activities while not at work, or while at work and performing those
normal or less frequent duties that do not present inherent dangers that are specific to the
occupations covered by the State Patrol retirement plan.
new text end

new text begin Subd. 13. new text end

new text begin Surviving spouse. new text end

new text begin "Surviving spouse" means a member's or former
member's legally married spouse who resided with the member or former member at the
time of death and was married to the member or former member, for a period of at least
one year, during or before the time of membership.
new text end

Sec. 5.

Minnesota Statutes 2008, section 352B.02, subdivision 1, is amended to read:

Subdivision 1.

Fund created; membership.

A State Patrol retirement fund is
established. Its membership consists of all persons defined in section deleted text begin 352B.01, subdivision
2 deleted text end new text begin 352B.001, subdivision 10 new text end .

Sec. 6.

new text begin [352B.085] SERVICE CREDIT.
new text end

new text begin A member on leave of absence receiving temporary workers' compensation
payments and a reduced salary or no salary from the employer who is entitled to allowable
service credit for the period of absence may make payment to the fund for the difference
between salary received, if any, and the salary the member would normally receive if not
on leave of absence during the period. The member shall pay an amount equal to the
member and employer contribution rate under section 352B.02, subdivisions 1b and 1c,
on the differential salary amount for the period of the leave of absence. The employing
department, at its option, may pay the employer amount on behalf of the member. Payment
made under this subdivision must include interest at the rate of 8.5 percent per year, and
must be completed within one year of the return from the leave of absence.
new text end

Sec. 7.

new text begin [352B.086] SERVICE CREDIT FOR UNIFORMED SERVICE.
new text end

new text begin (a) A member who is absent from employment by reason of service in the uniformed
services, as defined in United States Code, title 38, section 4303(13), and who returns to
state employment in a position covered by the plan upon discharge from service in the
uniformed service within the time frame required in United States Code, title 38, section
4312(e), may obtain service credit for the period of the uniformed service, provided that
the member did not separate from uniformed service with a dishonorable or bad conduct
discharge or under other than honorable conditions.
new text end

new text begin (b) The member may obtain credit by paying into the fund an equivalent member
contribution based on the contribution rate or rates in effect at the time that the uniformed
service was performed multiplied by the full and fractional years being purchased and
applied to the annual salary rate. The annual salary rate is the average annual salary
during the purchase period that the member would have received if the member had
continued to provide employment services to the state rather than to provide uniformed
service, or if the determination of that rate is not reasonably certain, the annual salary rate
is the member's average salary rate during the 12-month period of covered employment
rendered immediately preceding the purchase period.
new text end

new text begin (c) The equivalent employer contribution and, if applicable, the equivalent employer
additional contribution, must be paid by the employing unit, using the employer and
employer additional contribution rate or rates in effect at the time that the uniformed
service was performed, applied to the same annual salary rate or rates used to compute the
equivalent member contribution.
new text end

new text begin (d) If the member equivalent contributions provided for in this subdivision are not
paid in full, the member's allowable service credit must be prorated by multiplying the
full and fractional number of years of uniformed service eligible for purchase by the
ratio obtained by dividing the total member contributions received by the total member
contributions otherwise required under this subdivision.
new text end

new text begin (e) To receive allowable service credit under this subdivision, the contributions
specified in this section must be transmitted to the fund during the period which begins
with the date on which the individual returns to state employment covered by the plan and
which has a duration of three times the length of the uniformed service period, but not
to exceed five years. If the determined payment period is calculated to be less than one
year, the contributions required under this subdivision to receive service credit may be
within one year from the discharge date.
new text end

new text begin (f) The amount of allowable service credit obtainable under this section may not
exceed five years, unless a longer purchase period is required under United States Code,
title 38, section 4312.
new text end

new text begin (g) The employing unit shall pay interest on all equivalent member and employer
contribution amounts payable under this subdivision. Interest must be computed at a rate
of 8.5 percent compounded annually from the end of each fiscal year of the leave or break
in service to the end of the month in which payment is received.
new text end

Sec. 8.

Minnesota Statutes 2008, section 352B.10, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Injuries; payment amounts deleted text end new text begin Duty disability new text end .

A member new text begin of the state
patrol retirement fund new text end who deleted text begin becomes disabled and who is expected to be physically or
mentally unfit to perform duties for at least one year as a direct result of an injury, sickness,
or other disability that incurred in or arose out of any act of duty deleted text end new text begin is determined to qualify
for duty disability as defined in section 352B.001, subdivision 7 new text end , is entitled to receive
disability benefits while disabled. The benefits must be paid in monthly installments. The
benefit is an amount equal to the member's average monthly salary multiplied by 60
percent, plus an additional percent equal to that specified in section 356.315, subdivision
6, for each year and pro rata for completed months of service in excess of 20 years, if any.

Sec. 9.

Minnesota Statutes 2008, section 352B.10, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Disabled while not on duty deleted text end new text begin Regular disability benefit new text end .

If a member deleted text begin with
at least one year of service becomes disabled and is expected to be physically or mentally
unfit to perform the duties of the position for at least one year because of sickness or injury
that occurred while not engaged in covered employment, the individual deleted text end new text begin who qualifies for
a regular disability benefit as defined in section 352B.001, subdivision 12, new text end is entitled to
new text begin regular new text end disability benefits. The benefit must be computed as if the individual were 55
years old at the date of disability and the annuity was payable under section 352B.08. If a
disability under this subdivision occurs after one year of service but before 15 years of
service, the disability benefit must be computed as though the individual had credit for
15 years of service.

Sec. 10.

Minnesota Statutes 2008, section 352B.11, subdivision 2, is amended to read:

Subd. 2.

Death; payment to dependent children; family maximums.

Each
dependent child, as defined in section deleted text begin 352B.01, subdivision 10 deleted text end new text begin 352B.001, subdivision 6 new text end , is
entitled to receive a monthly annuity equal to ten percent of the average monthly salary
of the deceased member. A dependent child over 18 and under 23 years of age also may
receive the monthly benefit provided in this section if the child is continuously attending
an accredited school as a full-time student during the normal school year as determined by
the director. If the child does not continuously attend school, but separates from full-time
attendance during any part of a school year, the annuity must cease at the end of the month
of separation. In addition, a payment of $20 per month must be prorated equally to the
surviving dependent children when the former member is survived by more than one
dependent child. Payments for the benefit of any dependent child must be made to the
surviving spouse, or if there is none, to the legal guardian of the child. The monthly benefit
for any one family, including a surviving spouse benefit, if applicable, must not be less than
50 percent nor exceed 70 percent of the average monthly salary of the deceased member.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 352B.01, subdivisions 1, 2, 3, 3b, 4, 6, 7, 9, 10,
and 11, new text end new text begin are repealed.
new text end