HF 1444

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying public employees 
  1.3             retirement association provisions; amending Minnesota 
  1.4             Statutes 1998, sections 353.01, subdivisions 2, 2a, 
  1.5             2b, 7, 10, 11a, 11b, 12, 32, and by adding 
  1.6             subdivisions; 353.27, subdivisions 4, 10, 11, and 12; 
  1.7             and 353.64, subdivisions 1 and 2; repealing Minnesota 
  1.8             Statutes 1998, section 353.64, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 353.01, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [PUBLIC EMPLOYEE.] "Public employee" means an 
  1.13  employee performing personal services for a governmental 
  1.14  subdivision under subdivision 6, whose salary is paid, in whole 
  1.15  or in part, from revenue derived from taxation, fees, 
  1.16  assessments, or from other sources.  The term also includes 
  1.17  special classes of persons listed in subdivision 2a, but 
  1.18  excludes special classes of persons listed in subdivision 2b, 
  1.19  and may include classes of persons listed in subdivision 2d for 
  1.20  purposes of membership in the association.  Public employee does 
  1.21  not include independent contractors and their employees.  
  1.22     Sec. 2.  Minnesota Statutes 1998, section 353.01, 
  1.23  subdivision 2a, is amended to read: 
  1.24     Subd. 2a.  [INCLUDED EMPLOYEES.] Public employees whose 
  1.25  salary from filling positions with one governmental subdivision 
  1.26  exceeds $425 in any month shall that are reasonably expected to 
  1.27  receive or have received compensation for hours at the minimum 
  2.1   levels as defined in this subdivision must participate as 
  2.2   members of the association unless the provisions of paragraph (5)
  2.3   apply.  If the salary of an employee is less than $425 in a 
  2.4   subsequent month, the employee retains membership eligibility.  
  2.5   The following Employees who are members retain their membership 
  2.6   even if during their employment with a governmental subdivision 
  2.7   their total number of compensated hours in a business year as 
  2.8   defined under subdivision 39, fall below the minimum thresholds 
  2.9   defined in this subdivision.  Paragraphs (1) to (9) shall apply 
  2.10  when determining the membership eligibility of persons who are 
  2.11  considered public employees:. 
  2.12     (1) employees whose annual salary from one governmental 
  2.13  subdivision exceeds a stipulation prepared in advance, in 
  2.14  writing, to be not more than $5,100 per calendar year or per 
  2.15  school year for school employees for employment expected to be 
  2.16  of a full year's duration or more than the prorated portion of 
  2.17  $5,100 per employment period expected to be of less than a full 
  2.18  year's duration.  If compensation from one governmental 
  2.19  subdivision to an employee under this clause exceeds $5,100 per 
  2.20  calendar year or school year after being stipulated in advance 
  2.21  not to exceed that amount, the stipulation is no longer valid 
  2.22  and contributions must be made on behalf of the employee under 
  2.23  section 353.27, subdivision 12, from the month in which the 
  2.24  employee's salary first exceeded $425; A governmental 
  2.25  subdivision that is not a school district must, when 
  2.26  establishing or filling an employment position, determine if the 
  2.27  position is likely to receive compensation for 975 hours or more 
  2.28  in a business year.  If expected to do so, the employee in the 
  2.29  position must begin participation as a member of the association 
  2.30  immediately upon appointment. 
  2.31     (2) employees whose total salary from concurrent 
  2.32  nontemporary positions in one governmental subdivision exceeds 
  2.33  $425 in any month; A governmental subdivision that is a school 
  2.34  district must, when establishing or filling an employment 
  2.35  position, determine if the position is likely to receive 
  2.36  compensation for 720 hours or more in a business year.  If 
  3.1   expected to do so, the employee in the position must begin 
  3.2   participation as a member of the association immediately upon 
  3.3   appointment. 
  3.4      (3) elected officers for service to which they were elected 
  3.5   by the public-at-large, or persons appointed to fill a vacancy 
  3.6   in an elective office, who elect to participate by filing an 
  3.7   application for membership, but not for service on a joint or 
  3.8   regional board that is a governmental subdivision under 
  3.9   subdivision 6, paragraph (a), unless the salary earned for that 
  3.10  service exceeds $425 in any month.  The option to become a 
  3.11  member, once exercised, may not be withdrawn during the 
  3.12  incumbency of the person in office; A governmental subdivision 
  3.13  that has determined that an employment position is not expected 
  3.14  to meet the eligibility thresholds in this subdivision must 
  3.15  monitor the number of hours that have been compensated for the 
  3.16  position.  In monitoring the number of hours compensated for the 
  3.17  position, the governmental subdivision must maintain records 
  3.18  documenting the number of compensated hours from the point the 
  3.19  position was filled through the end of each business year.  When 
  3.20  the number of compensated hours meets or exceeds the applicable 
  3.21  threshold defined in this subdivision, the governmental 
  3.22  subdivision must enroll the employee holding the position as a 
  3.23  member of the association beginning with the first full pay 
  3.24  period following the period in which the threshold was met. 
  3.25     (4) members who are appointed by the governor to be a state 
  3.26  department head and elect not to be covered by the Minnesota 
  3.27  state retirement system under section 352.021; When a public 
  3.28  employee is hired for, or holds, more than one position for a 
  3.29  single governmental subdivision, that governmental subdivision 
  3.30  must determine the employee's eligibility for membership in the 
  3.31  association by combining the total number of hours the employee 
  3.32  has been or is reasonably expected to be compensated for in 
  3.33  eligible positions the employee holds with the employing 
  3.34  governmental subdivision.  The employee shall be enrolled as a 
  3.35  member of the association immediately upon appointment as 
  3.36  specified in paragraphs (1) and (2), unless paragraph (3) 
  4.1   applies. 
  4.2      (5) employees of elected officers; Any employee who is or 
  4.3   becomes a member of the association after July 1, 1999, shall 
  4.4   continue to participate in the association when the employee 
  4.5   receives compensation in the same position with the same 
  4.6   governmental subdivision unless: 
  4.7      (i) the employment relationship ceases for 12 or more 
  4.8   consecutive calendar months due to termination or layoff; or 
  4.9      (ii) the employee is receiving an annuity under section 
  4.10  353.30 or disability benefit under section 353.33. 
  4.11     (6) Persons who elect elected to remain members under 
  4.12  section 480.181, subdivision 2;, are considered public employees.
  4.13     (7) employees of a school district who receive separate 
  4.14  salaries for driving their own buses; Notwithstanding the 
  4.15  requirements for participation as a member of the public 
  4.16  employees retirement association as outlined in this 
  4.17  subdivision, a public employee who qualified for membership and 
  4.18  was a member of one of the association's defined benefit plans 
  4.19  as of June 30, 1999, retains that membership until the 
  4.20  individual terminates public employment or membership as 
  4.21  specified in subdivisions 11a and 11b. 
  4.22     (8) employees of the Minnesota association of townships 
  4.23  when the board of the association, at its option, certifies to 
  4.24  the executive director that its employees are to be included for 
  4.25  purposes of retirement coverage, in which case coverage of all 
  4.26  employees of the association is permanent; 
  4.27     (9) employees of a county historical society who are county 
  4.28  employees; 
  4.29     (10) employees of a county historical society located in 
  4.30  the county whom the county, at its option, certifies to the 
  4.31  executive director to be county employees for purposes of 
  4.32  retirement coverage under this chapter, which status must be 
  4.33  accorded to all similarly situated county historical society 
  4.34  employees and, once established, must continue as long as a 
  4.35  person is an employee of the county historical society and is 
  4.36  not excluded under subdivision 2b; and 
  5.1      (11) Employees who became members before July 1, 1988, 
  5.2   based on the total salary of positions held in more than one 
  5.3   governmental subdivision. retain membership if they were members 
  5.4   on June 30, 1999. 
  5.5      (9) Elected officials who serve on a joint or regional 
  5.6   board that is a governmental subdivision under subdivision 6, 
  5.7   paragraph (a), and who are not directly elected to their 
  5.8   positions on the regional or joint board by voters in the 
  5.9   political subdivisions covered by the region, are deemed public 
  5.10  employees as defined under subdivision 2 and must become members 
  5.11  of the association when they meet the qualifications in this 
  5.12  subdivision. 
  5.13     Sec. 3.  Minnesota Statutes 1998, section 353.01, 
  5.14  subdivision 2b, is amended to read: 
  5.15     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
  5.16  employees shall not participate as members of the association 
  5.17  with retirement coverage by the public employees retirement plan 
  5.18  or the public employees police and fire retirement 
  5.19  plan regardless of the number of hours for which they are 
  5.20  compensated in a business year: 
  5.21     (1) elected public officers, or persons appointed to fill a 
  5.22  vacancy in an elective office, who do not elect to participate 
  5.23  in the association by filing an application for membership; 
  5.24     (2) election officers or election judges; 
  5.25     (3) (2) patient and inmate personnel who perform services 
  5.26  in charitable, penal, or correctional institutions of a 
  5.27  governmental subdivision; 
  5.28     (4) employees who are hired for a temporary position under 
  5.29  subdivision 12a, and employees who resign from a nontemporary 
  5.30  position and accept a temporary position within 30 days in the 
  5.31  same governmental subdivision, but not those employees who are 
  5.32  hired for an unlimited period but are serving a probationary 
  5.33  period.  If the period of employment extends beyond six 
  5.34  consecutive months and the employee earns more than $425 from 
  5.35  one governmental subdivision in any one calendar month, the 
  5.36  department head shall report the employee for membership and 
  6.1   require employee deductions be made on behalf of the employee 
  6.2   under section 353.27, subdivision 4. 
  6.3      Membership eligibility of an employee who resigns or is 
  6.4   dismissed from a temporary position and within 30 days accepts 
  6.5   another temporary position in the same governmental subdivision 
  6.6   is determined on the total length of employment rather than on 
  6.7   each separate position.  Membership eligibility of an employee 
  6.8   who holds concurrent temporary and nontemporary positions in one 
  6.9   governmental subdivision is determined by the length of 
  6.10  employment and salary of each separate position; 
  6.11     (5) employees whose actual salary from one governmental 
  6.12  subdivision does not exceed $425 per month, or whose annual 
  6.13  salary from one governmental subdivision does not exceed a 
  6.14  stipulation prepared in advance, in writing, that the salary 
  6.15  must not exceed $5,100 per calendar year or per school year for 
  6.16  school employees for employment expected to be of a full year's 
  6.17  duration or more than the prorated portion of $5,100 per 
  6.18  employment period for employment expected to be of less than a 
  6.19  full year's duration; 
  6.20     (6) (3) employees who are employed by reason of work 
  6.21  emergency caused by fire, flood, storm, or similar disaster; 
  6.22     (7) (4) employees who by virtue of their employment in one 
  6.23  governmental subdivision are required by law to be a member of 
  6.24  and to contribute to any of the plans or funds administered by 
  6.25  the Minnesota state retirement system, the teachers retirement 
  6.26  association, the Duluth teachers retirement fund association, 
  6.27  the Minneapolis teachers retirement association, the St. Paul 
  6.28  teachers retirement fund association, the Minneapolis employees 
  6.29  retirement fund, or any police or firefighters relief 
  6.30  association governed by section 69.77 that has not consolidated 
  6.31  with the public employees retirement association, or any police 
  6.32  or firefighters relief association that has consolidated with 
  6.33  the public employees retirement association but whose members 
  6.34  have not elected the type of benefit coverage provided by the 
  6.35  public employees police and fire fund under sections 353A.01 to 
  6.36  353A.10.  This clause must not be construed to prevent a person 
  7.1   from being a member of and contributing to the public employees 
  7.2   retirement association and also belonging to and contributing to 
  7.3   another public pension fund for other service occurring during 
  7.4   the same period of time.  A person who meets the definition of 
  7.5   "public employee" in subdivision 2 by virtue of other service 
  7.6   occurring during the same period of time becomes a member of the 
  7.7   association unless contributions are made to another public 
  7.8   retirement fund on the salary based on the other service or to 
  7.9   the teachers retirement association by a teacher as defined in 
  7.10  section 354.05, subdivision 2; 
  7.11     (8) (5) persons who are excluded from coverage under the 
  7.12  federal Old Age, Survivors, Disability, and Health Insurance 
  7.13  Program for the performance of service as specified in United 
  7.14  States Code, title 42, section 410(a)(8)(A), as amended through 
  7.15  January 1, 1987, if no irrevocable election of coverage has been 
  7.16  made under section 3121(r) of the Internal Revenue Code of 1954, 
  7.17  as amended; 
  7.18     (9) full-time students who are enrolled and are regularly 
  7.19  attending classes at an accredited school, college, or 
  7.20  university and who are part-time employees as defined by a 
  7.21  governmental subdivision; 
  7.22     (10) (6) resident physicians, medical interns, and 
  7.23  pharmacist residents and pharmacist interns who are serving in a 
  7.24  degree or residency program in public hospitals; 
  7.25     (11) (7) students who are serving in an internship or 
  7.26  residency program sponsored by an accredited educational 
  7.27  institution; 
  7.28     (12) (8) persons who hold a part-time adult supplementary 
  7.29  technical college license who render part-time teaching service 
  7.30  in a technical college; 
  7.31     (13) (9) foreign citizens working for a governmental 
  7.32  subdivision with a work permit of less than three years, or an 
  7.33  H-1b visa valid for less than three years of employment.  Upon 
  7.34  notice to the association that the work permit or visa extends 
  7.35  beyond the three-year period, the foreign citizens are eligible 
  7.36  for membership from the date of the extension; 
  8.1      (14) (10) public hospital employees who elected not to 
  8.2   participate as members of the association before 1972 and who 
  8.3   did not elect to participate from July 1, 1988, to October 1, 
  8.4   1988; 
  8.5      (15) (11) except as provided in section 353.86, volunteer 
  8.6   ambulance service personnel, as defined in subdivision 35, but 
  8.7   persons who serve as volunteer ambulance service personnel may 
  8.8   still qualify as public employees under subdivision 2 and may be 
  8.9   members of the public employees retirement association and 
  8.10  participants in the public employees retirement fund or the 
  8.11  public employees police and fire fund on the basis of 
  8.12  compensation received from public employment service other than 
  8.13  service as volunteer ambulance service personnel; 
  8.14     (16) (12) except as provided in section 353.87, volunteer 
  8.15  firefighters, as defined in subdivision 36, engaging in 
  8.16  activities undertaken as part of volunteer firefighter duties; 
  8.17  provided that a person who is a volunteer firefighter may still 
  8.18  qualify as a public employee under subdivision 2 and may be a 
  8.19  member of the public employees retirement association and a 
  8.20  participant in the public employees retirement fund or the 
  8.21  public employees police and fire fund on the basis of 
  8.22  compensation received from public employment activities other 
  8.23  than those as a volunteer firefighter; and 
  8.24     (17) (13) pipefitters and associated trades personnel 
  8.25  employed by independent school district No. 625, St. Paul, with 
  8.26  coverage by the pipefitters local 455 pension plan under a 
  8.27  collective bargaining agreement who were either first employed 
  8.28  after May 1, 1997, or, if first employed before May 2, 1997, 
  8.29  elected to be excluded under Laws 1997, chapter 241, article 2, 
  8.30  section 12. 
  8.31     Sec. 4.  Minnesota Statutes 1998, section 353.01, is 
  8.32  amended by adding a subdivision to read: 
  8.33     Subd. 2d.  [OPTIONAL MEMBERSHIP.] The classes of public 
  8.34  employees in this section may become members of the association 
  8.35  under the conditions specified: 
  8.36     (1) elected officers for service to which they were elected 
  9.1   by the public-at-large, or persons appointed to fill a vacancy 
  9.2   in an elective office, who elect to participate by filing a 
  9.3   written election for membership.  To be eligible to participate 
  9.4   as members of the association, elected officers must meet the 
  9.5   conditions in subdivision 2a.  The option to become a member, 
  9.6   once exercised, may not be withdrawn during the incumbency of 
  9.7   the person in office; 
  9.8      (2) employees of a county historical society located in the 
  9.9   county whom the county, at its option, certifies to the 
  9.10  executive director to be county employees for purposes of 
  9.11  retirement coverage under this chapter, which status must be 
  9.12  accorded to all similarly situated county historical society 
  9.13  employees and, once established, must continue as long as a 
  9.14  person is an employee of the county historical society and is 
  9.15  not excluded under subdivision 2b; 
  9.16     (3) city managers as defined in section 353.028, 
  9.17  subdivision 1, who do not elect to be excluded from membership 
  9.18  in the association under section 353.028, subdivision 2; 
  9.19     (4) employees of labor organizations as defined in section 
  9.20  353.017, subdivision 1, who elect to participate under section 
  9.21  353.017, subdivision 2; 
  9.22     (5) employees of the Minnesota association of townships 
  9.23  when the board of the association, at its option, certifies to 
  9.24  the executive director that its employees are to be included for 
  9.25  purposes of retirement coverage, in which case coverage of all 
  9.26  employees of the association is permanent; and 
  9.27     (6) members who are appointed by the governor to be a state 
  9.28  department head and elect not to be covered by the Minnesota 
  9.29  state retirement system under section 352.021. 
  9.30     Sec. 5.  Minnesota Statutes 1998, section 353.01, 
  9.31  subdivision 7, is amended to read: 
  9.32     Subd. 7.  [MEMBER.] "Member" means a person who accepts 
  9.33  employment as a "public employee" under subdivision 2, is an 
  9.34  employee who works in one or more positions that require or 
  9.35  allow membership in the association under subdivision 2a or 
  9.36  2d, for whom contributions have been withheld, and who is not 
 10.1   covered by the plan established in chapter 353D.  A person who 
 10.2   is a member remains a member while performing services as a 
 10.3   public employee and while on an authorized leave of absence or 
 10.4   an authorized temporary layoff. 
 10.5      Sec. 6.  Minnesota Statutes 1998, section 353.01, 
 10.6   subdivision 10, is amended to read: 
 10.7      Subd. 10.  [SALARY.] (a) For the purposes of determining 
 10.8   the amount of employee deductions and employer contributions, 
 10.9   and computing retirement, disability, and survivor benefits, and 
 10.10  refunds available to members under this chapter, "salary" means: 
 10.11     (1) periodic compensation of a public employee, before 
 10.12  deductions for deferred compensation, supplemental retirement 
 10.13  plans, or other voluntary salary reduction programs, and also 
 10.14  means "wages" and includes net income from fees; and 
 10.15     (2) for a public employee who has prior service covered by 
 10.16  a local police or firefighters' relief association that has 
 10.17  consolidated with the public employees retirement association 
 10.18  and who has elected coverage under the public employees police 
 10.19  and fire fund benefit plan under section 353A.08 following the 
 10.20  consolidation, "salary" means the rate of salary upon which 
 10.21  member contributions to the special fund of the relief 
 10.22  association were made prior to the effective date of the 
 10.23  consolidation as specified by law and by bylaw provisions 
 10.24  governing the relief association on the date of the initiation 
 10.25  of the consolidation procedure and the actual periodic 
 10.26  compensation of the public employee after the effective date of 
 10.27  consolidation. 
 10.28     (b) Salary does not mean: 
 10.29     (1) fees paid to district court reporters, unused annual or 
 10.30  sick leave payments, in lump-sum or periodic payments, severance 
 10.31  payments, reimbursement of expenses, lump-sum settlements not 
 10.32  attached to a specific earnings period, or workers' compensation 
 10.33  payments; 
 10.34     (2) employer-paid amounts used by an employee toward the 
 10.35  cost of insurance coverage, employer-paid fringe benefits, 
 10.36  flexible spending accounts, cafeteria plans, health care expense 
 11.1   accounts, day care expenses, or any payments in lieu of any 
 11.2   employer-paid group insurance coverage, including the difference 
 11.3   between single and family rates that may be paid to a member 
 11.4   with single coverage and certain amounts determined by the 
 11.5   executive director to be ineligible; 
 11.6      (3) the amount equal to that which the employing 
 11.7   governmental subdivision would otherwise pay toward single or 
 11.8   family insurance coverage for a covered employee when, through a 
 11.9   contract or agreement with some but not all employees, the 
 11.10  employer: 
 11.11     (i) discontinues, or for new hires does not provide, 
 11.12  payment toward the cost of the employee's selected insurance 
 11.13  coverages under a group plan offered by the employer; 
 11.14     (ii) makes the employee solely responsible for all 
 11.15  contributions toward the cost of the employee's selected 
 11.16  insurance coverages under a group plan offered by the employer, 
 11.17  including any amount the employer makes toward other employees' 
 11.18  selected insurance coverages under a group plan offered by the 
 11.19  employer; and 
 11.20     (iii) provides increased salary rates for employees who do 
 11.21  not have any employer-paid group insurance coverages; and 
 11.22     (4) except as provided in section 353.86 or 353.87, 
 11.23  compensation of any kind paid to volunteer ambulance service 
 11.24  personnel or volunteer firefighters, as defined in subdivisions 
 11.25  35 and 36.  
 11.26     Sec. 7.  Minnesota Statutes 1998, section 353.01, 
 11.27  subdivision 11a, is amended to read: 
 11.28     Subd. 11a.  [TERMINATION OF PUBLIC SERVICE.] "Termination 
 11.29  of public service" means the withdrawal of a member from public 
 11.30  service that had provided membership and occurs when a member 
 11.31  resigns or is dismissed from public service or when a position 
 11.32  or positions held by a member are abolished by the employing 
 11.33  governmental subdivision, as evidenced by appropriate written 
 11.34  record transmitted to the association, and does not within 30 
 11.35  days of resignation or dismissal return to a nontemporary 
 11.36  employment position in the same governmental subdivision. 
 12.1      Sec. 8.  Minnesota Statutes 1998, section 353.01, 
 12.2   subdivision 11b, is amended to read: 
 12.3      Subd. 11b.  [TERMINATION OF MEMBERSHIP.] (a) "Termination 
 12.4   of membership" means the conclusion of membership in the 
 12.5   association and occurs: 
 12.6      (1) upon termination of public service under subdivision 
 12.7   11a; 
 12.8      (2) when a member who is a part-time employee is excluded 
 12.9   from membership as a full-time student under subdivision 2b, 
 12.10  clause (9); 
 12.11     (3) when a member does not return to work within 30 days of 
 12.12  the expiration of an authorized temporary layoff governmental 
 12.13  subdivision no longer authorizes: 
 12.14     (i) layoff under subdivision 12; or 
 12.15     (ii) an authorized leave of absence under subdivision 31. 
 12.16  If the employee subsequently returns to a position in the same 
 12.17  governmental subdivision, the employee shall not again be 
 12.18  required to earn a salary in excess of $425 per month, unless 
 12.19  the employee has taken a refund of accumulated employee 
 12.20  deductions plus interest under section 353.34, subdivision 1; or 
 12.21     (3) when a member applies for and accepts a refund of 
 12.22  member contributions as allowed under section 353.34, 
 12.23  subdivision 7; or 
 12.24     (4) when a person files a written election to discontinue 
 12.25  employee deductions under section 353.27, subdivision 7, 
 12.26  paragraph (a), clause (1). 
 12.27     (b) The termination of membership shall be recorded in the 
 12.28  association records upon receipt of an appropriate notice from 
 12.29  the governmental subdivision.  If within 12 months the employee 
 12.30  subsequently receives compensation in the position previously 
 12.31  held in the same governmental subdivision, the employee shall 
 12.32  not again be required to requalify for membership coverage and 
 12.33  meet the thresholds in subdivision 2a. 
 12.34     Sec. 9.  Minnesota Statutes 1998, section 353.01, 
 12.35  subdivision 12, is amended to read: 
 12.36     Subd. 12.  [AUTHORIZED TEMPORARY LAYOFF.] "Authorized 
 13.1   temporary layoff," including seasonal leave of absence, means a 
 13.2   limited suspension of public service for a period authorized by 
 13.3   the employing governmental subdivision for a period not 
 13.4   exceeding three months in any calendar year, as evidenced by 
 13.5   appropriate record of the employer and promptly transmitted to 
 13.6   the association provided the employer upon expiration of the 
 13.7   layoff period can recall the employee to the position previously 
 13.8   held.  The association shall credit the member with allowable 
 13.9   service for an authorized temporary layoff as provided in 
 13.10  subdivision 16, paragraph (f). 
 13.11     Sec. 10.  Minnesota Statutes 1998, section 353.01, 
 13.12  subdivision 32, is amended to read: 
 13.13     Subd. 32.  [COORDINATED MEMBER.] "Coordinated member" means 
 13.14  any public employee, including any public hospital employee, 
 13.15  covered by any agreement or modification made between the state 
 13.16  and the Secretary of Health, Education and Welfare, making the 
 13.17  provisions of the federal Old Age, Survivors and Disability 
 13.18  Insurance Act applicable to the member if membership eligibility 
 13.19  criteria are met under this chapter.  Coordinated member also 
 13.20  means a basic member who terminates public service under 
 13.21  subdivision 11a, reenters public service in a nontemporary 
 13.22  position, after having been out of public employment for 30 or 
 13.23  more days, and meets the membership eligibility criteria under 
 13.24  this chapter. 
 13.25     Sec. 11.  Minnesota Statutes 1998, section 353.01, is 
 13.26  amended by adding a subdivision to read: 
 13.27     Subd. 38.  [COMPENSATED HOURS.] "Compensated hours" means 
 13.28  the number of hours worked in the position or positions held by 
 13.29  a public employee.  Compensated hours also includes but is not 
 13.30  limited to compensation the employee receives for:  overtime or 
 13.31  compensatory hours worked; paid holidays; and paid leaves of 
 13.32  absence including used sick, personal, and vacation leave. 
 13.33     Sec. 12.  Minnesota Statutes 1998, section 353.01, is 
 13.34  amended by adding a subdivision to read: 
 13.35     Subd. 39.  [BUSINESS YEAR.] "Business year" means the first 
 13.36  full pay period through the last full pay period of a 
 14.1   governmental subdivision's 12-month calendar or fiscal year. 
 14.2      Sec. 13.  Minnesota Statutes 1998, section 353.27, 
 14.3   subdivision 4, is amended to read: 
 14.4      Subd. 4.  [EMPLOYERS REPORTING REQUIREMENTS; CONTRIBUTIONS; 
 14.5   MEMBER STATUS.] (a) A representative authorized by the head of 
 14.6   each department shall deduct employee contributions from the 
 14.7   salary of each member employee who qualifies for membership 
 14.8   under this chapter and issue or approve one warrant or payment 
 14.9   through electronic funds transfer for the aggregate amount of 
 14.10  the employee contributions, the employer contributions and the 
 14.11  additional employer contributions to be received within 20 
 14.12  calendar days in the office of the association, except that if 
 14.13  the 20th calendar day falls on a weekend or holiday, the 
 14.14  contribution payment must be received by the first business day 
 14.15  following the 20th calendar day.  The head of each department or 
 14.16  a designee shall, for each pay period in which employee 
 14.17  contributions are deducted, submit to the association a salary 
 14.18  deduction report, in the form format prescribed by the executive 
 14.19  director, showing.  Data to be submitted as part of salary 
 14.20  deduction reporting may include but are not limited to: 
 14.21     (a) (1) the legal names and the association membership 
 14.22  numbers, listed in alphabetical order, social security numbers 
 14.23  of employees who are members; (b) the legal names of all new 
 14.24  public employees and the effective dates of appointment; (c)  
 14.25     (2) the amount of each employee's salary deduction; (d)  
 14.26     (3) the amount of salary from which each deduction was 
 14.27  made; (e) effective dates of member terminations of public 
 14.28  service accompanied by the applicable status code as set by the 
 14.29  association for those terminations caused by death or 
 14.30  retirement; (f) effective dates of all temporary layoffs and 
 14.31  leaves of absence accompanied by the applicable status code as 
 14.32  set by the association; and (g)  
 14.33     (4) the beginning and ending dates of the payroll period 
 14.34  covered and the date of actual payment; and 
 14.35     (5) adjustments or corrections covering past pay periods. 
 14.36  Reports of contributions must be accompanied by a membership 
 15.1   enrollment form Employers must furnish the data required for 
 15.2   enrollment for each new employee who qualifies for membership in 
 15.3   the form format prescribed by the executive director.  
 15.4   The required enrollment forms from data on new employees must be 
 15.5   collected by the employer and submitted to the 
 15.6   association within 30 days following the date of 
 15.7   employment. prior to or concurrent with the submission of the 
 15.8   initial employee salary deduction.  The employer shall also 
 15.9   report to the association all member employment status changes, 
 15.10  such as leaves of absence, terminations, and death, and the 
 15.11  effective dates of those changes, on an ongoing basis for the 
 15.12  payroll cycle in which they occur.  The employer shall furnish 
 15.13  such additional data, forms, and reports on magnetic media on 
 15.14  other forms as may be requested required by the executive 
 15.15  director for proper operation of the retirement system.  Before 
 15.16  modifying or adding new computerized reporting requirements, the 
 15.17  executive director shall give advance written notice to 
 15.18  governmental subdivisions to allow time for system modifications.
 15.19     (b) Notwithstanding paragraph (a), the association may 
 15.20  provide for less frequent reporting and payments for small 
 15.21  employers. 
 15.22     Sec. 14.  Minnesota Statutes 1998, section 353.27, 
 15.23  subdivision 10, is amended to read: 
 15.24     Subd. 10.  [EMPLOYER EXCLUSION REPORTS.] When requested, 
 15.25  the head of a department or a designee shall annually furnish 
 15.26  the executive director with an accurate and complete data on the 
 15.27  exclusion of report listing only those employees in potentially 
 15.28  PERA-eligible positions who were not reported as members of the 
 15.29  association and who worked received compensation during the 
 15.30  school year for school employees and calendar year for nonschool 
 15.31  employees.  The department head must certify the accuracy and 
 15.32  completeness of the exclusion report to the association business 
 15.33  year of a governmental employer.  The executive director shall 
 15.34  prescribe the manner and forms format, including standardized 
 15.35  exclusion codes, to be used by a governmental subdivision in 
 15.36  preparing and filing exclusion reports data or records.  The 
 16.1   executive director shall also check the exclusion report 
 16.2   information to ascertain whether any omissions have been made by 
 16.3   a department head in the reporting of new public employees for 
 16.4   membership.  For the purpose of evaluating membership exclusions 
 16.5   made by governmental subdivisions, the executive director 
 16.6   may authorize the collection of data, such as a public 
 16.7   employee's name, social security number, and total number of 
 16.8   compensated hours that have been awarded to the employee.  To 
 16.9   collect this information, the executive director may delegate an 
 16.10  association employee under section 353.03, subdivision 3a, 
 16.11  paragraph (b), clause (5), to conduct a field audit to review 
 16.12  the payroll records of a governmental subdivision and may 
 16.13  collect information from other sources that may have the 
 16.14  information including, but not limited to, the Minnesota 
 16.15  department of economic security. 
 16.16     Sec. 15.  Minnesota Statutes 1998, section 353.27, 
 16.17  subdivision 11, is amended to read: 
 16.18     Subd. 11.  [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 
 16.19  INFORMATION.] All governmental subdivisions shall furnish 
 16.20  promptly such other information relative to the employment 
 16.21  status of all employees or former employees, including but not 
 16.22  limited to payroll abstracts pertaining to all past and present 
 16.23  employees, as may be requested by the association or its 
 16.24  executive director, including schedules of salaries and 
 16.25  compensated hours applicable to various categories of 
 16.26  employment.  In the event payroll abstract records have been 
 16.27  lost or destroyed or are unavailable, for whatever reason or in 
 16.28  whatever manner, so that such schedules of salaries or 
 16.29  compensated hours cannot be furnished therefrom, the employing 
 16.30  governmental subdivision, in lieu thereof, shall instead furnish 
 16.31  to the association an estimate of the earnings and compensated 
 16.32  hours of any employee or former employee for any period as may 
 16.33  be requested by the association or its executive director. 
 16.34  Should the association receive such schedules of estimated 
 16.35  earnings and compensated hours, the executive director is hereby 
 16.36  authorized to use the same as a basis for making whatever 
 17.1   computations might be necessary for determining obligations of 
 17.2   the employee and employer to the retirement fund.  If estimates 
 17.3   are not furnished by the employer pursuant to the request of the 
 17.4   association or its executive director, the association may 
 17.5   estimate the obligations of the employee and employer to the 
 17.6   retirement fund based upon such records as are in its 
 17.7   possession.  Where payroll abstracts have been lost or 
 17.8   destroyed, the governmental agency need not furnish any 
 17.9   information pertaining to employment prior to July 1, 1963. The 
 17.10  association shall make no estimate of any obligation of any 
 17.11  employee, former employee, or employer covering employment prior 
 17.12  to July 1, 1963. 
 17.13     Sec. 16.  Minnesota Statutes 1998, section 353.27, 
 17.14  subdivision 12, is amended to read: 
 17.15     Subd. 12.  [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In 
 17.16  the case of omission of required deductions from the salary of 
 17.17  an employee, the department head or a designee shall 
 17.18  immediately, upon discovery, report the employee for membership 
 17.19  and deduct the employee deductions under subdivision 4.  Upon 
 17.20  receipt of billing from the association, in the current pay 
 17.21  period or the pay period immediately following the discovery of 
 17.22  the omission.  Payment for the omitted obligations shall be made 
 17.23  according to reporting procedures and methods established by the 
 17.24  executive director. 
 17.25     (b) When the entire omission period does not exceed 60 
 17.26  days, the governmental subdivision may report and submit payment 
 17.27  of the omitted employee deductions and omitted employer 
 17.28  contributions through the reporting processes under subdivision 
 17.29  4. 
 17.30     (c) When the omission period exceeds 60 days, the 
 17.31  governmental subdivision shall furnish to the association 
 17.32  sufficient data and documentation upon which obligations for 
 17.33  omitted employee and employer contributions can be calculated.  
 17.34  The omitted employee deductions must be deducted from the 
 17.35  employee's next subsequent salary payment or payments and 
 17.36  remitted to the association.  The employee shall pay omitted 
 18.1   employee deductions due for the 60 days prior to the end of the 
 18.2   last pay period in the omission period during which salary was 
 18.3   earned.  The employer shall pay any remaining omitted employee 
 18.4   deductions and any omitted employer contributions, plus 
 18.5   cumulative interest at an annual rate of 8.5 percent compounded 
 18.6   annually, from the date or dates each omitted employee 
 18.7   contribution was first payable.  
 18.8      (b) (d) An employer shall not hold an employee liable for 
 18.9   omitted employee deductions beyond the pay period dates under 
 18.10  paragraph (a) (c), nor attempt to recover from the employee 
 18.11  those employee deductions paid by the employer on behalf of the 
 18.12  employee.  Omitted deductions due under paragraph (a) which are 
 18.13  not paid by the employee constitute a liability of the employer 
 18.14  that failed to deduct the omitted deductions from the employee's 
 18.15  salary.  The employer shall make payment with interest at an 
 18.16  annual rate of 8.5 percent compounded annually.  Omitted 
 18.17  employee deductions are no longer due if an employee terminates 
 18.18  public service before making payment of omitted employee 
 18.19  deductions to the association, but the employer remains liable 
 18.20  to pay omitted employer contributions plus interest at an annual 
 18.21  rate of 8.5 percent compounded annually from the date the 
 18.22  contributions were first payable.  
 18.23     (c) (e) The association may not commence action for the 
 18.24  recovery, or accept payment except as provided under subdivision 
 18.25  12a, of omitted employee deductions and employer contributions 
 18.26  after the expiration of three calendar years after the calendar 
 18.27  year in which the contributions and deductions were omitted.  No 
 18.28  payment may be made or accepted unless the association has 
 18.29  already commenced action for recovery of omitted deductions.  An 
 18.30  action for recovery commences on the date of the mailing of any 
 18.31  written correspondence from the association requesting 
 18.32  information from the governmental subdivision upon which to 
 18.33  determine whether or not omitted deductions occurred. 
 18.34     Sec. 17.  Minnesota Statutes 1998, section 353.64, 
 18.35  subdivision 1, is amended to read: 
 18.36     Subdivision 1.  [POLICE AND FIRE FUND MEMBERSHIP; INCLUDED 
 19.1   POSITIONS; GENERAL.] A governmental subdivision under section 
 19.2   353.01, subdivision 6, may enroll an employee as a member of the 
 19.3   police and fire fund who is hired to or holds a position as: 
 19.4      (a) (1) a full-time police officer or a person in charge of 
 19.5   a designated police department or sheriff's office who by virtue 
 19.6   of that employment is required by the employing governmental 
 19.7   subdivision to be and is licensed by the Minnesota peace officer 
 19.8   standards and training board under sections 626.84 to 626.863, 
 19.9   who is charged with the prevention and detection of crime, who 
 19.10  has the full power of arrest, who is assigned to be a designated 
 19.11  police or sheriff's department, and whose primary job is the 
 19.12  enforcement of the general criminal laws of the state.  
 19.13  Full-time police officers who as part of their positions are 
 19.14  periodically assigned to employment duties not within the scope 
 19.15  of this subdivision may contribute as members of the police and 
 19.16  fire fund for both the primary and secondary services that are 
 19.17  provided to the employing governmental subdivision; 
 19.18     (2) a full-time firefighter or a person in charge of a 
 19.19  designated fire company or companies who is engaged in the 
 19.20  hazards of firefighting.  Full-time firefighters who as part of 
 19.21  their positions are periodically assigned to employment duties 
 19.22  not within the scope of this subdivision may contribute as 
 19.23  members of the police and fire fund for both the primary and 
 19.24  secondary services that are provided to the employing 
 19.25  governmental subdivision; 
 19.26     (3) a police officer serving on less than a full-time basis 
 19.27  who by virtue of that employment is required by the employing 
 19.28  governmental subdivision to be and is licensed by the Minnesota 
 19.29  peace officers standards and training board under sections 
 19.30  626.84 to 626.863, who is charged with the prevention and 
 19.31  detection of crime, who has the full power of arrest, who is 
 19.32  assigned to a designated police or sheriff's department, and 
 19.33  whose primary job is the enforcement of the general criminal 
 19.34  laws of the state, if the governing body of the department or 
 19.35  its designee adopts and submits to the executive director a 
 19.36  resolution declaring that the primary position held by the 
 20.1   person is that of a police officer as defined under this 
 20.2   paragraph; 
 20.3      (4) a firefighter serving on less than a full-time basis 
 20.4   who is engaged in the hazards of firefighting and who is 
 20.5   assigned to a designated fire company or companies if the 
 20.6   governing body of the department or its designee adopts and 
 20.7   submits to the executive director a resolution declaring that 
 20.8   the primary position held by the person is that of a firefighter 
 20.9   as defined under this paragraph; 
 20.10     (5) a person who prior to July 1, 1961, was a member of the 
 20.11  police and fire fund, by virtue of being a police officer or 
 20.12  firefighter, shall, as long as the person remains in either 
 20.13  position, continue membership in the fund.; 
 20.14     (b) (6) a person who was employed by a governmental 
 20.15  subdivision as a police officer and was a member of the police 
 20.16  and fire fund on July 1, 1978, by virtue of being a police 
 20.17  officer as defined by this section on that date, and if employed 
 20.18  by the same governmental subdivision in a position in the same 
 20.19  department in which the person was employed on that date, shall 
 20.20  continue membership in the fund whether or not that person has 
 20.21  the power of arrest by warrant after that date.; 
 20.22     (c) (7) a person who was employed by a governmental 
 20.23  subdivision as a police officer or a firefighter, whichever 
 20.24  applies, was an active member of the local police or salaried 
 20.25  firefighters relief association located in that governmental 
 20.26  subdivision by virtue of that employment as of the effective 
 20.27  date of the consolidation as authorized by sections 353A.01 to 
 20.28  353A.10, and has elected coverage by the public employees police 
 20.29  and fire fund benefit plan, shall become a member of the police 
 20.30  and fire fund after that date if employed by the same 
 20.31  governmental subdivision in a position in the same department in 
 20.32  which the person was employed on that date.; or 
 20.33     (d) (8) any other employee serving on a full-time basis as 
 20.34  a police officer or firefighter on or after July 1, 1961, shall 
 20.35  become a member of the public employees police and fire fund.  
 20.36     (e) An employee serving on less than a full-time basis as a 
 21.1   police officer shall become a member of the public employees 
 21.2   police and fire fund only after a resolution stating that the 
 21.3   employee should be covered by the police and fire fund is 
 21.4   adopted by the governing body of the governmental subdivision 
 21.5   employing the person declaring that the position which the 
 21.6   person holds is that of a police officer. 
 21.7      (f) An employee serving on less than a full-time basis as a 
 21.8   firefighter shall become a member of the public employees police 
 21.9   and fire fund only after a resolution stating that the employee 
 21.10  should be covered by the police and fire fund is adopted by the 
 21.11  governing body of the governmental subdivision employing the 
 21.12  person declaring that the position which the person holds is 
 21.13  that of a firefighter. 
 21.14     (g) A police officer or firefighter employed by a 
 21.15  governmental subdivision who by virtue of that employment is 
 21.16  required by law to be a member of and to contribute to any 
 21.17  police or firefighter relief association governed by section 
 21.18  69.77 which has not consolidated with the public employees 
 21.19  police and fire fund and any police officer or firefighter of a 
 21.20  relief association that has consolidated with the association 
 21.21  for which the employee has not elected coverage by the public 
 21.22  employees police and fire fund benefit plan as provided in 
 21.23  sections 353A.01 to 353A.10 shall not become a member of the 
 21.24  public employees police and fire fund. 
 21.25     Sec. 18.  Minnesota Statutes 1998, section 353.64, 
 21.26  subdivision 2, is amended to read: 
 21.27     Subd. 2.  [POLICE AND FIRE MEMBERSHIP; EXCLUDED POSITIONS.] 
 21.28  Before a governing body may declare a position to be that of a 
 21.29  police officer, the duties of the person so employed must, as a 
 21.30  minimum, include employment as an officer of a designated police 
 21.31  department or sheriff's office or person in charge of a 
 21.32  designated police department or sheriff's office whose primary 
 21.33  job it is to enforce the law, who is licensed by the Minnesota 
 21.34  board of peace officer standards and training under sections 
 21.35  626.84 to 626.863, who is engaged in the hazards of protecting 
 21.36  the safety and property of others, and who has the power to 
 22.1   arrest by warrant.  A police officer who is periodically 
 22.2   assigned to employment duties not within the scope of this 
 22.3   subdivision may contribute to the public employees police and 
 22.4   fire fund for all service, if a resolution declaring that the 
 22.5   primary position held by the person is that of a police officer, 
 22.6   is adopted by the governing body of the department, and is 
 22.7   promptly submitted to the executive director. A police officer 
 22.8   or firefighter employed by a governmental subdivision who by 
 22.9   virtue of that employment is required by law to be a member of 
 22.10  and to contribute to any police or firefighter relief 
 22.11  association governed by section 69.77 which has not consolidated 
 22.12  with the public employees police and fire fund and any police 
 22.13  officer or firefighter of a relief association that has 
 22.14  consolidated with the association for which the employee has not 
 22.15  elected coverage by the public employees police and fire fund 
 22.16  benefit plan as provided in sections 353A.01 to 353A.10 shall 
 22.17  not become a member of the public employees police and fire fund.
 22.18     Sec. 19.  [REPEALER.] 
 22.19     Minnesota Statutes 1998, section 353.64, subdivision 3, is 
 22.20  repealed. 
 22.21     Sec. 20.  [EFFECTIVE DATE.] 
 22.22     Sections 1 to 19 are effective July 1, 1999.