as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; modifying definitions; 1.3 modifying disability benefit provisions; changing 1.4 early retirement requirements; modifying eligibility 1.5 provisions; modifying refund provisions; changing 1.6 survivor benefit provisions; making technical changes; 1.7 extending a pilot project; amending Minnesota Statutes 1.8 2000, sections 3A.03, subdivision 2; 11A.18, 1.9 subdivision 7; 352.01, subdivisions 2a, 2b, 13, 26; 1.10 352.04, subdivision 8; 352.113, subdivisions 4, 6, 7; 1.11 352.12, subdivisions 2, 2a, 2b; 352.22, subdivisions 1.12 2, 3, 8; 352.87, subdivisions 4, 5; 352.931, 1.13 subdivisions 1, 3; 352.95, subdivisions 4, 5, 7; 1.14 352B.01, subdivisions 10, 11; 352B.10, subdivision 3; 1.15 352B.101; 352B.11, subdivisions 1, 2; 352C.021, 1.16 subdivision 5; 352C.031, subdivision 2; 352D.02, 1.17 subdivisions 1, 3; 353.01, subdivision 15a; 353.32, 1.18 subdivision 1c; 353.34, subdivision 2; 354.05, 1.19 subdivisions 2, 8, 8a; 354.46, subdivisions 1, 2, 2b; 1.20 354.48, subdivision 7; 354.49, subdivision 3; 354.52, 1.21 subdivision 4; 354.66, subdivision 2; 356.55, 1.22 subdivision 7; 490.121, subdivisions 4, 10, 17; 1.23 490.124, subdivisions 3, 12. 1.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.25 ARTICLE 1 1.26 DEFINITIONS 1.27 Section 1. Minnesota Statutes 2000, section 352.01, 1.28 subdivision 13, is amended to read: 1.29 Subd. 13. [SALARY.] "Salary" means wages, or other 1.30 periodic compensation, paid to an employee before deductions for 1.31 deferred compensation, supplemental retirement plans, or other 1.32 voluntary salary reduction programs. Lump sum sick leave 1.33 payments, severance payments, lump sum annual leave payments and 1.34 overtime payments made at the time of separation from state 2.1 service, payments in lieu of any employer-paid group insurance 2.2 coverage, including the difference between single and family 2.3 rates that may be paid to an employee with single coverage, and 2.4 payments made as an employer-paid fringe benefit, workers' 2.5 compensation payments, employer contributions to a deferred 2.6 compensation or tax sheltered annuity program,andamounts 2.7 contributed under a benevolent vacation and sick leave donation 2.8 program are not salary. Grievance or legal settlements are not 2.9 considered salary unless the language of the settlement states 2.10 that retirement contributions are applicable. 2.11 Sec. 2. Minnesota Statutes 2000, section 352.01, 2.12 subdivision 26, is amended to read: 2.13 Subd. 26. [DEPENDENTCHILD.] "DependentChild" means a 2.14 biological or adopted child of a deceased employee who has not 2.15 reached the age of20 and is dependent upon the employee for2.16more than one-half of the child's support22 at the time of the 2.17 employee's death. It also means a child of thememberemployee 2.18 conceived during themember'semployee's lifetime and born after 2.19 themember'semployee's death. 2.20 Sec. 3. Minnesota Statutes 2000, section 352B.01, 2.21 subdivision 10, is amended to read: 2.22 Subd. 10. [DEPENDENTCHILD.] "DependentChild" means a 2.23naturalbiological or adoptedunmarriedchild of a deceased 2.24 member under the age of1822 years, including any child of the 2.25 member conceived during the lifetime of the member and born 2.26 after the death of the member. 2.27 Sec. 4. Minnesota Statutes 2000, section 352B.01, 2.28 subdivision 11, is amended to read: 2.29 Subd. 11. [AVERAGE MONTHLY SALARY.] "Average monthly 2.30 salary" means the average of the highest monthly salaries for 2.31 five years of service as a member. Average monthly salary must 2.32 be based upon all allowable service if this service is less than 2.33 five years. It does not include any lump sum annual leave 2.34 payments and overtime payments made at the time of separation 2.35 from state service, any amounts of severance pay or any reduced 2.36 salary paid during the period the person is entitled to workers' 3.1 compensation benefit payments for temporary disability. A 3.2 member on leave of absence receiving temporary workers' 3.3 compensation payments and a reduced salary or no salary from the 3.4 employer who is entitled to allowable service credit for the 3.5 period of absence may make payment to the fund for the 3.6 difference between salary received, if any, and the salary the 3.7 member would normally receive if not on leave of absence during 3.8 the period. The member shall pay an amount equal to the member 3.9 and employer contribution rate under section 352B.02, 3.10 subdivisions 1b and 1c, on the differential salary amount for 3.11 the period of the leave of absence. The employing department, 3.12 at its option, may pay the employer amount on behalf of the 3.13 member. Payment made under this subdivision must include 3.14 interest at the rate of 8.5 percent per year, and must be 3.15 completed within one year of the return from the leave of 3.16 absence. 3.17 Sec. 5. Minnesota Statutes 2000, section 352C.021, 3.18 subdivision 5, is amended to read: 3.19 Subd. 5. [DEPENDENTCHILD.] "DependentChild" meansany3.20naturala biological or adopted child of a deceased 3.21 constitutional officer or a deceased former constitutional 3.22 officerwho is under the age of 18, orwho is under the age of 3.23 22and is a full-time student, and who in either case is3.24unmarried and was actually dependent for more than one-half of3.25the child's support upon the constitutional officer or the3.26former constitutional officer for a period of at least 90 days3.27immediately prior to the death of the constitutional officer or3.28the former constitutional officer. The term shall also include 3.29 a posthumous child of the constitutional officer or the former 3.30 constitutional officer. 3.31 Sec. 6. Minnesota Statutes 2000, section 353.01, 3.32 subdivision 15a, is amended to read: 3.33 Subd. 15a. [DEPENDENTCHILD.] For the purpose of survivor 3.34 benefit eligibility under section 353.32, subdivision 1c, 3.35 "dependentchild" means any biological or adopted child of a 3.36 deceased member who has not reached the age of20 and is4.1dependent for more than one-half of support upon the member22. 4.2 It also includes any child of the member conceived during the 4.3 member's lifetime and born after the member's death. 4.4 Sec. 7. Minnesota Statutes 2000, section 354.05, 4.5 subdivision 8, is amended to read: 4.6 Subd. 8. [DEPENDENTCHILD.] "DependentChild" means a 4.7 biological or adopted child of a deceased memberwho has not4.8reached the age of 18, or who is under age 22 and is a full-time4.9student throughout the normal school year, unmarried and4.10dependent for more than one-half of support upon the member. It 4.11 also means a child of the member conceived during the member's 4.12 lifetime and born after the member's death. 4.13 Sec. 8. Minnesota Statutes 2000, section 354.05, 4.14 subdivision 8a, is amended to read: 4.15 Subd. 8a. [DEPENDENTCHILD.] For the purpose of survivor 4.16 benefit eligibility under section 354.46,subdivision4.17 subdivisions 1 and 2b, "dependentchild" means any biological or 4.18 adopted child of a deceased member who has not reached the age 4.19 of20 and is dependent for more than one-half of support upon4.20the member22. It also includes any child of the member 4.21 conceived while living and born after death. 4.22 Sec. 9. Minnesota Statutes 2000, section 490.121, 4.23 subdivision 4, is amended to read: 4.24 Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" meansa4.25whole year, or any fraction thereofany calendar month, subject 4.26 to the service credit limit in subdivision 22, served as a judge 4.27 at any time, or served as a referee in probate for all referees 4.28 in probate who were in office prior to January 1, 1974. 4.29 Sec. 10. Minnesota Statutes 2000, section 490.121, 4.30 subdivision 17, is amended to read: 4.31 Subd. 17. [DEPENDENTCHILD.] "DependentChild" meansany4.32naturala biological or adopted child of a deceased judge who 4.33has not reached the age of 18 years, or having reached the age4.34of 18,is under age 22and is a full time student throughout the4.35normal school year, unmarried and actually dependent for more4.36than one-half of the child's support upon such judge for a5.1period of at least 90 days prior to the judge's death. It also 5.2 includesany naturala biological child of the judge born after 5.3 the judge's death. 5.4 Sec. 11. [EFFECTIVE DATE.] 5.5 Sections 1 to 10 are effective July 1, 2001. 5.6 ARTICLE 2 5.7 DISABILITY 5.8 Section 1. Minnesota Statutes 2000, section 352.113, 5.9 subdivision 4, is amended to read: 5.10 Subd. 4. [MEDICAL OR PSYCHOLOGICAL EXAMINATIONS; 5.11 AUTHORIZATION FOR PAYMENT OF BENEFIT.] An applicant shall 5.12 provide medical or psychological evidence to support an 5.13 application for total and permanent disability. The director 5.14 shall have the employee examined by at least one additional 5.15 licensed physician or psychologist designated by the medical 5.16 adviser. The physicians or psychologists shall make written 5.17 reports to the director concerning the employee's disability 5.18 including medical opinions as to whether the employee is 5.19 permanently and totally disabled within the meaning of section 5.20 352.01, subdivision 17. The director shall also obtain written 5.21 certification from the employer stating whether the employment 5.22 has ceased or whether the employee is on sick leave of absence 5.23 because of a disability that will prevent further service to the 5.24 employer and as a consequence the employee is not entitled to 5.25 compensation from the employer. The medical adviser shall 5.26 consider the reports of the physicians, psychologists, and 5.27 chiropractors and any other evidence supplied by the employee or 5.28 other interested parties. If the medical adviser finds the 5.29 employee totally and permanently disabled, the adviser shall 5.30 make appropriate recommendation to the director in writing 5.31 together with the date from which the employee has been totally 5.32 disabled. The director shall then determine if the disability 5.33 occurred within 180 days of filing the application, while still 5.34 in the employment of the state, and the propriety of authorizing 5.35 payment of a disability benefit as provided in this section. A 5.36 terminated employee may apply for a disability benefit within 6.1 180 days of termination as long as the disability occurred while 6.2 in the employment of the state. The fact that an employee is 6.3 placed on leave of absence without compensation because of 6.4 disability does not bar that employee from receiving a 6.5 disability benefit. Unless payment of a disability benefit has 6.6 terminated because the employee is no longer totally disabled, 6.7 or because the employee has reached normal retirement age as 6.8 provided in this section, the disability benefit shall cease 6.9 with the last payment received by the disabled employee or which 6.10 had accrued during the lifetime of the employee unless there is 6.11 a spouse surviving; in that event the surviving spouse is 6.12 entitled to the disability benefit for the calendar month in 6.13 which the disabled employee died. 6.14 Sec. 2. Minnesota Statutes 2000, section 352.113, 6.15 subdivision 6, is amended to read: 6.16 Subd. 6. [REGULAR MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.] 6.17 At least once each year during the first five years following 6.18 the allowance of a disability benefit to any employee, and at 6.19 least once in every three-year period thereafter, the director 6.20 may require any disabled employee to undergo a medical or 6.21 psychological examination. The examination must be made at the 6.22 place of residence of the employee, or at any place mutually 6.23 agreed upon, by a physician or physicians designated by the 6.24 medical adviser and engaged by the director. If any examination 6.25 indicates to the medical adviser that the employee is no longer 6.26 permanently and totally disabled, or is engaged in or can engage 6.27 in a gainful occupation, payments of the disability benefit by 6.28 the fund must be discontinued. The payments shall discontinue 6.29 as soon as the employee is reinstated to the payroll following 6.30 sick leave, but in no case shall payment be made for more than 6.31 60 days after the medical adviser finds that the employee is no 6.32 longer permanently and totally disabled. 6.33 Sec. 3. Minnesota Statutes 2000, section 352.113, 6.34 subdivision 7, is amended to read: 6.35 Subd. 7. [PARTIAL REEMPLOYMENT.] If the disabled employee 6.36 resumes a gainful occupation from which earnings are less than 7.1 the employee's salary at the date of disability or the salary 7.2 currently paid for similar positions, the director shall, after 7.3 a six-month trial period, continue the disability benefit in an 7.4 amount which when added to earnings does not exceed the salary 7.5 at the date of disability, provided the disability benefit in 7.6 this case does not exceed the disability benefit originally 7.7 allowed. Deductions for the retirement fund must not be taken 7.8 from the salary of a disabled employee who is receiving a 7.9 disability benefit as provided in this subdivision. 7.10 Sec. 4. Minnesota Statutes 2000, section 352.87, 7.11 subdivision 4, is amended to read: 7.12 Subd. 4. [NON-JOB-RELATED DISABILITY BENEFITS.] An 7.13 eligible member described in subdivision 1,who is less than 557.14years of age andwho becomes disabled and physically or mentally 7.15 unfit to perform the duties of the position because of sickness 7.16 or injury while not engaged in covered employment, is entitled 7.17 to a disability benefit amount equivalent to an annuity computed 7.18 under subdivision 3 assuming the member has 15 years of service 7.19 qualifying under this section and waiving the minimum age 7.20 requirement. If the eligible member becomes disabled under this 7.21 subdivision with more than 15 years of service covered under 7.22 this section, the eligible member is entitled to a disability 7.23 benefit amount equivalent to an annuity computed under 7.24 subdivision 3 based on all years of service credited under this 7.25 section and waiving the minimum age requirement. 7.26 Sec. 5. Minnesota Statutes 2000, section 352.87, 7.27 subdivision 5, is amended to read: 7.28 Subd. 5. [JOB-RELATED DISABILITY BENEFITS.] An eligible 7.29 member defined in subdivision 1,who is less than 55 years of7.30age andwho becomes disabled and physically or mentally unfit to 7.31 perform the duties of the position because of sickness or injury 7.32 while engaged in covered employment, is entitled to a disability 7.33 benefit amount equivalent to an annuity computed under 7.34 subdivision 3 assuming the member has 20 years of service 7.35 qualifying under this section and waiving the minimum age 7.36 requirement. An eligible member who becomes disabled under this 8.1 subdivision with more than 20 years of service credited under 8.2 this section is entitled to a disability benefit amount 8.3 equivalent to an annuity computed under subdivision 3 based on 8.4 all years of service credited under this section and waiving the 8.5 age requirement. 8.6 Sec. 6. Minnesota Statutes 2000, section 352.95, 8.7 subdivision 4, is amended to read: 8.8 Subd. 4. [MEDICAL OR PSYCHOLOGICAL EVIDENCE.] An applicant 8.9 shall provide medical or psychological evidence to support an 8.10 application for disability benefits. The director shall have 8.11 the employee examined by at least one additional licensed 8.12 physician or psychologist designated by the medical adviser. 8.13 The physicians shall make written reports to the director 8.14 concerning the employee's disability, including medical opinions 8.15 as to whether the employee is disabled within the meaning of 8.16 this section. The director shall also obtain written 8.17 certification from the employer stating whether the employee is 8.18 on sick leave of absence because of a disability that will 8.19 prevent further service to the employer, and as a consequence 8.20 the employee is not entitled to compensation from the employer. 8.21 If on considering the physicians' reports and any other 8.22 evidence supplied by the employee or others, the medical adviser 8.23 finds the employee disabled within the meaning of this section, 8.24 the advisor shall make appropriate recommendation to the 8.25 director in writing, together with the date from which the 8.26 employee has been disabled. The director shall then determine 8.27 the propriety of authorizing payment of a disability benefit as 8.28 provided in this section. 8.29 Unless payment of a disability benefit has terminated 8.30 because the employee is no longer disabled, or because the 8.31 employee has reached age6265 or the five-year anniversary of 8.32 the effective date of the disability benefit, whichever is 8.33 later, the disability benefit shall cease with the last payment 8.34 received by the disabled employee or which had accrued during 8.35 the employee's lifetime. While disability benefits are paid, 8.36 the director has the right at reasonable times to require the 9.1 disabled employee to submit proof of the continuance of the 9.2 disability claimed. If any examination indicates to the medical 9.3 adviser that the employee is no longer disabled, the disability 9.4 payment must be discontinued upon reinstatement to state service 9.5 or within 60 days of the finding, whichever is sooner. 9.6 Sec. 7. Minnesota Statutes 2000, section 352.95, 9.7 subdivision 5, is amended to read: 9.8 Subd. 5. [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The 9.9 disability benefit paid to a disabled correctional employee 9.10 under this section shall terminate at the end of the month in 9.11 which the employee reaches age6265, or the five-year 9.12 anniversary of the effective date of the disability benefit, 9.13 whichever is later. If the disabled correctional employee is 9.14 still disabled when the employee reaches age 62, the employee 9.15 shall be deemed to be a retired employee. If the employee had 9.16 elected an optional annuity under subdivision 1a, the employee 9.17 shall receive an annuity in accordance with the terms of the 9.18 optional annuity previously elected. If the employee had not 9.19 elected an optional annuity under subdivision 1a, the employee 9.20 may within 90 days of attaining age 65 or reaching the five-year 9.21 anniversary of the effective date of the disability benefit, 9.22 whichever is later, either elect to receive a normal retirement 9.23 annuity computed in the manner provided in section 352.93 or 9.24 elect to receive an optional annuity as provided in section 9.25 352.116, subdivision 3, based on the same length of service as 9.26 used in the calculation of the disability benefit. Election of 9.27 an optional annuity must be made within 90 days before attaining 9.28 age 65 or reaching the five-year anniversary of the effective 9.29 date of the disability benefit, whichever is later. If an 9.30 optional annuity is elected, the optional annuity shall begin to 9.31 accrue on the first of the month following the month in which 9.32 the employee reaches age 65 or the five-year anniversary of the 9.33 effective date of the disability benefit, whichever is later. 9.34 Sec. 8. Minnesota Statutes 2000, section 352.95, 9.35 subdivision 7, is amended to read: 9.36 Subd. 7. [RESUMPTION OF EMPLOYMENT.] If the disabled 10.1 employee resumesagainfuloccupation from which earnings are10.2less than the salary received at the date of disability or the10.3salary currently paid for similar positions, or if the employee10.4is entitled to receive workers' compensation benefitswork, the 10.5 disability benefit must be continued in an amount which when 10.6 added to current earnings and workers' compensation benefits 10.7 does not exceed the salaryreceived at the date of disability or10.8the salary currently paid for similar positions, whichever is10.9higher, if the disability benefit in that case does not exceed10.10the disability benefit originally authorized and in effectrate 10.11 at the date of disability as adjusted by the same percentage 10.12 increase in United States average wages used by social security 10.13 in calculating average indexed monthly earnings. 10.14 Sec. 9. Minnesota Statutes 2000, section 352B.10, 10.15 subdivision 3, is amended to read: 10.16 Subd. 3. [ANNUAL AND SICK LEAVE; WORK AT LOWER PAY.] No 10.17 member shall receive any disability benefit payment when the 10.18 member has unused annual leave or sick leave or under any other 10.19 circumstances, when during the period of disability there has 10.20 been no impairment of salary. Should the member or former 10.21 member resume gainful workand earn less than the salary10.22received at the date of disability or the salary currently paid10.23for similar positions, the disability benefit must be continued 10.24 in an amount which when added to current earnings does not 10.25 exceed the salary rate received at the date of disabilityor the10.26salary currently paid for similar positions, whichever is10.27higher. The disability benefit must not exceed the disability10.28benefit originally allowedas adjusted by the same percentage 10.29 increase in United States average wages used by social security 10.30 in calculating average indexed monthly earnings. 10.31 Sec. 10. Minnesota Statutes 2000, section 352B.101, is 10.32 amended to read: 10.33 352B.101 [APPLICATION FOR DISABILITY BENEFIT.] 10.34 A member claiming a disability benefit must file a written 10.35 application for benefits in the office of the system in a form 10.36 and manner prescribed by the executive director. The member 11.1 shall provide medical or psychological evidence to support the 11.2 application. The benefit begins to accrue the day following the 11.3 start of disability or the day following the last day for which 11.4 the member was paid, whichever is later, but not earlier than 11.5 180 days before the date the application is filed with the 11.6 executive director. 11.7 Sec. 11. Minnesota Statutes 2000, section 354.48, 11.8 subdivision 7, is amended to read: 11.9 Subd. 7. [PARTIAL REEMPLOYMENT.] If the disabled person 11.10 resumes a gainful occupation in which earnings are less than the 11.11 person's salary at the date of disability, the amount of 11.12 earnings plus the disability benefit originally granted may not 11.13 exceed the salary at the date of disability as adjusted by the 11.14 same percentage increase in United States average wages used by 11.15 social security in calculating average indexed monthly earnings. 11.16 If the sum of earnings plus the disability benefit originally 11.17 granted exceeds the salary at the date of disability as 11.18 adjusted, the amount of excess earnings must be deducted from 11.19 the disability benefit payable during the following calendar 11.20 year. The provisions of this subdivision shall not prohibit the 11.21 executive director from making a determination that a member is 11.22 no longer totally and permanently disabled or that the member is 11.23 engaged or is able to engage in a substantial gainful occupation 11.24 based on the results of the regular physical examinations 11.25 required by subdivision 6 or any other physical examinations 11.26 required by the board. Payment of the disability benefit 11.27 provided in this subdivision during a period of partial 11.28 reemployment shall be discontinued if the executive director 11.29 finds that the member is no longer totally and permanently 11.30 disabled. 11.31 Sec. 12. [EFFECTIVE DATE.] 11.32 Sections 1 to 11 are effective July 1, 2001. 11.33 ARTICLE 3 11.34 EARLY RETIREMENT 11.35 Section 1. Minnesota Statutes 2000, section 352C.031, 11.36 subdivision 2, is amended to read: 12.1 Subd. 2. [REDUCED RETIREMENT ALLOWANCE.] Upon separation 12.2 from service, a former constitutional officer who has attained 12.3 the age of at least6055 years and who has at least eight years 12.4 of allowable service is entitled upon making written application 12.5 on forms supplied by the director to a retirement allowance in 12.6 an amount equal to a normal retirement allowance reduced by 12.7 one-half of one percent for each month that the former 12.8 constitutional officer is under age 62. 12.9 Sec. 2. Minnesota Statutes 2000, section 490.121, 12.10 subdivision 10, is amended to read: 12.11 Subd. 10. [EARLY RETIREMENT DATE.] "Early retirement date" 12.12 means the last day of any month after a judge attains the age of 12.136255 until normal retirement date. 12.14 Sec. 3. Minnesota Statutes 2000, section 490.124, 12.15 subdivision 3, is amended to read: 12.16 Subd. 3. [EARLY RETIREMENT.] The retirement annuity 12.17 provided by subdivision 1 of any judge electing to retire at an 12.18 early retirement date shall be reduced by the lesser of the 12.19 following: (1) one-half of one percent per month from the 12.20 retirement date to normal retirement date; or (2) an amount so 12.21 that the reduced annuity is actuarially equivalent to the 12.22 annuity that would be payable to the employee if the employee 12.23 deferred receipt of the annuity from retirement date to normal 12.24 retirement. 12.25 Sec. 4. [EFFECTIVE DATE.] 12.26 Sections 1 to 3 are effective July 1, 2001. 12.27 ARTICLE 4 12.28 ELIGIBILITY 12.29 Section 1. Minnesota Statutes 2000, section 352.01, 12.30 subdivision 2a, is amended to read: 12.31 Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee" 12.32 includes: 12.33 (1) employees of the Minnesota historical society; 12.34 (2) employees of the state horticultural society; 12.35 (3) employees of the Disabled American Veterans, Department 12.36 of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 13.1 if employed before July 1, 1963; 13.2 (4) employees of the Minnesota crop improvement 13.3 association; 13.4 (5) employees of the adjutant general who are paid from 13.5 federal funds and who are not covered by any federal civilian 13.6 employees retirement system; 13.7 (6) employees of the Minnesota state colleges and 13.8 universities employed under the university or college activities 13.9 program; 13.10 (7) currently contributing employees covered by the system 13.11 who are temporarily employed by the legislature during a 13.12 legislative session or any currently contributing employee 13.13 employed for any special service as defined in subdivision 2b, 13.14 clause (8); 13.15 (8) employees of the armory building commission; 13.16 (9) employees of the legislature appointed without a limit 13.17 on the duration of their employment and persons employed or 13.18 designated by the legislature or by a legislative committee or 13.19 commission or other competent authority to conduct a special 13.20 inquiry, investigation, examination, or installation; 13.21 (10) trainees who are employed on a full-time established 13.22 training program performing the duties of the classified 13.23 position for which they will be eligible to receive immediate 13.24 appointment at the completion of the training period; 13.25 (11) employees of the Minnesota safety council; 13.26 (12) any employees on authorized leave of absence from the 13.27 transit operating division of the former metropolitan transit 13.28 commission who are employed by the labor organization which is 13.29 the exclusive bargaining agent representing employees of the 13.30 transit operating division; 13.31 (13) employees of the metropolitan council, metropolitan 13.32 parks and open space commission, metropolitan sports facilities 13.33 commission, metropolitan mosquito control commission, or 13.34 metropolitan radio board unless excluded or covered by another 13.35 public pension fund or plan under section 473.415, subdivision 13.36 3; 14.1 (14) judges of the tax court; 14.2 (15) personnel employed on June 30, 1992, by the University 14.3 of Minnesota in the management, operation, or maintenance of its 14.4 heating plant facilities, whose employment transfers to an 14.5 employer assuming operation of the heating plant facilities, so 14.6 long as the person is employed at the University of Minnesota 14.7 heating plant by that employer or by its successor organization; 14.8 and 14.9 (16) seasonal help in the classified service employed by 14.10 the department of revenue; and. 14.11(17) a person who renders teaching or other service for the14.12Minnesota state colleges and universities system and who also14.13renders service on a part-time basis for an employer with14.14employees covered by the general state employees retirement plan14.15of the Minnesota state retirement system, for all service with14.16the Minnesota state colleges and universities system, if the14.17person's nonteaching service comprises at least 50 percent of14.18the combined total salary received by the person as determined14.19by the chancellor of the Minnesota state colleges and14.20universities system or if the person is certified for general14.21state employees retirement plan coverage by the chancellor of14.22the Minnesota state colleges and universities system.14.23 (b) Employees specified in paragraph (a), clause (15), are 14.24 included employees under paragraph (a) if employer and employee 14.25 contributions are made in a timely manner in the amounts 14.26 required by section 352.04. Employee contributions must be 14.27 deducted from salary. Employer contributions are the sole 14.28 obligation of the employer assuming operation of the University 14.29 of Minnesota heating plant facilities or any successor 14.30 organizations to that employer. 14.31 Sec. 2. Minnesota Statutes 2000, section 352.01, 14.32 subdivision 2b, is amended to read: 14.33 Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not 14.34 include: 14.35 (1)elective state officers;14.36(2)students employed by the University of Minnesota, or 15.1 the state colleges and universities,and community colleges15.2 unless approved for coverage by the board of regents or the 15.3 board of trustees of the Minnesota state colleges and 15.4 universities, as the case may be; 15.5(3)(2) employees who are eligible for membership in the 15.6 state teachers retirement association except employees of the 15.7 department of children, families, and learning who have chosen 15.8 or may choose to be covered by the Minnesota state retirement 15.9 system instead of the teachers retirement association; 15.10(4)(3) employees of the University of Minnesota who are 15.11 excluded from coverage by action of the board of regents; 15.12(5)(4) officers and enlisted personnel in the national 15.13 guard and the naval militia who are assigned to permanent 15.14 peacetime duty and who under federal law are or are required to 15.15 be members of a federal retirement system; 15.16(6)(5) election officers; 15.17(7)(6) persons engaged in public work for the state but 15.18 employed by contractors when the performance of the contract is 15.19 authorized by the legislature or other competent authority; 15.20(8)(7) officers and employees of the senate and house of 15.21 representatives or a legislative committee or commission who are 15.22 temporarily employed; 15.23(9)(8) receivers, jurors, notaries public, and court 15.24 employees who are not in the judicial branch as defined in 15.25 section 43A.02, subdivision 25, except referees and adjusters 15.26 employed by the department of labor and industry; 15.27(10)(9) patient and inmate help in state charitable, 15.28 penal, and correctional institutions including the Minnesota 15.29 veterans home; 15.30(11)(10) persons employed for professional services where 15.31 the service is incidental to regular professional duties and 15.32 whose compensation is paid on a per diem basis; 15.33(12)(11) employees of the Sibley House Association; 15.34(13)(12) the members of any state board or commission who 15.35 serve the state intermittently and are paid on a per diem basis; 15.36 the secretary, secretary-treasurer, and treasurer of those 16.1 boards if their compensation is $5,000 or less per year, or, if 16.2 they are legally prohibited from serving more than three years; 16.3 and the board of managers of the state agricultural society and 16.4 its treasurer unless the treasurer is also its full-time 16.5 secretary; 16.6(14)(13) state troopers; 16.7(15)(14) temporary employees of the Minnesota state fair 16.8 employed on or after July 1 for a period not to extend beyond 16.9 October 15 of that year; and persons employed at any time by the 16.10 state fair administration for special events held on the 16.11 fairgrounds; 16.12(16)(15) emergency employees in the classified service; 16.13 except that if an emergency employee, within the same pay 16.14 period, becomes a provisional or probationary employee on other 16.15 than a temporary basis, the employee shall be considered a 16.16 "state employee" retroactively to the beginning of the pay 16.17 period; 16.18(17)(16) persons described in section 352B.01, subdivision 16.19 2, clauses (2) to (5); 16.20(18)(17) temporary employees in the classified service, 16.21 and temporary employees in the unclassified service appointed 16.22 for a definite period of not more than six months and employed 16.23 less than six months in any one-year period; 16.24(19)(18) trainee employees, except those listed in 16.25 subdivision 2a, clause (10); 16.26(20)(19) persons whose compensation is paid on a fee 16.27 basis; 16.28(21)(20) state employeeswho in any year have credit for16.2912 months service as teachers in the public schools of the state16.30and as teachers are members of the teachers retirement16.31association or a retirement system in St. Paul, Minneapolis, or16.32Duluthas enumerated in section 43A.08, subdivision 1, clause 16.33 (9); 16.34(22)(21) employees of the adjutant general employed on an 16.35 unlimited intermittent or temporary basis in the classified and 16.36 unclassified service for the support of army and air national 17.1 guard training facilities; 17.2(23)(22) chaplains and nuns who are excluded from coverage 17.3 under the federal Old Age, Survivors, Disability, and Health 17.4 Insurance Program for the performance of service as specified in 17.5 United States Code, title 42, section 410(a)(8)(A), as amended, 17.6 if no irrevocable election of coverage has been made under 17.7 section 3121(r) of the Internal Revenue Code of 1986, as amended 17.8 through December 31, 1992; 17.9(24)(23) examination monitors employed by departments, 17.10 agencies, commissions, and boards to conduct examinations 17.11 required by law; 17.12(25)(24) persons appointed to serve as members of 17.13 fact-finding commissions or adjustment panels, arbitrators, or 17.14 labor referees under chapter 179; 17.15(26)(25) temporary employees employed for limited periods 17.16 under any state or federal program for training or 17.17 rehabilitation including persons employed for limited periods 17.18 from areas of economic distress except skilled and supervisory 17.19 personnel and persons having civil service status covered by the 17.20 system; 17.21(27)(26) full-time students employed by the Minnesota 17.22 historical society intermittently during part of the year and 17.23 full-time during the summer months; 17.24(28)(27) temporary employees, appointed for not more than 17.25 six months, of the metropolitan council and of any of its 17.26 statutory boards, if the board members are appointed by the 17.27 metropolitan council; 17.28(29)(28) persons employed in positions designated by the 17.29 department of employee relations as student workers; 17.30(30)(29) members of trades employed by the successor to 17.31 the metropolitan waste control commission with trade union 17.32 pension plan coverage under a collective bargaining agreement 17.33 first employed after June 1, 1977; 17.34(31)(30) persons employed in subsidized on-the-job 17.35 training, work experience, or public service employment as 17.36 enrollees under the federal Comprehensive Employment and 18.1 Training Act after March 30, 1978, unless the person has as of 18.2 the later of March 30, 1978, or the date of employment 18.3 sufficient service credit in the retirement system to meet the 18.4 minimum vesting requirements for a deferred annuity, or the 18.5 employer agrees in writing on forms prescribed by the director 18.6 to make the required employer contributions, including any 18.7 employer additional contributions, on account of that person 18.8 from revenue sources other than funds provided under the federal 18.9 Comprehensive Employment and Training Act, or the person agrees 18.10 in writing on forms prescribed by the director to make the 18.11 required employer contribution in addition to the required 18.12 employee contribution; 18.13(32)(31) off-duty peace officers while employed by the 18.14 metropolitan council; 18.15(33)(32) persons who are employed as full-time police 18.16 officers by the metropolitan council and as police officers are 18.17 members of the public employees police and fire fund; 18.18(34)(33) persons who are employed as full-time 18.19 firefighters by the department of military affairs and as 18.20 firefighters are members of the public employees police and fire 18.21 fund; 18.22(35)(34) foreign citizens with a work permit of less than 18.23 three years, or an H-1b/JV visa valid for less than three years 18.24 of employment, unless notice of extension is supplied which 18.25 allows them to work for three or more years as of the date the 18.26 extension is granted, in which case they are eligible for 18.27 coverage from the date extended; and 18.28(36)(35) persons who are employed by the board of trustees 18.29 of the Minnesota state colleges and universities and who elect 18.30 to remain members of the public employees retirement association 18.31 or the Minneapolis employees retirement fund, whichever applies, 18.32 under section 136C.75. 18.33 Sec. 3. Minnesota Statutes 2000, section 352D.02, 18.34 subdivision 1, is amended to read: 18.35 Subdivision 1. [COVERAGE.] (a) Employees enumerated in 18.36 paragraph (c), clauses (2), (3), (4), and (6) to (14), if they 19.1 are in the unclassified service of the state or metropolitan 19.2 council and are eligible for coverage under the general state 19.3 employees retirement plan under chapter 352, are participants in 19.4 the unclassified plan under this chapter unless the employee 19.5 gives notice to the executive director of the Minnesota state 19.6 retirement system within one year following the commencement of 19.7 employment in the unclassified service that the employee desires 19.8 coverage under the general state employees retirement plan. For 19.9 the purposes of this chapter, an employee who does not file 19.10 notice with the executive director is deemed to have exercised 19.11 the option to participate in the unclassified plan. 19.12 (b) Persons referenced in paragraph (c), clauses (1) and 19.13 (5), are participants in the unclassifiedprogramplan under 19.14 this chapter unless the person is eligible to elect different 19.15 coverage under section 3A.07 or 352C.011 and, after July 1, 19.16 1998, elects retirement coverage by the applicable alternative 19.17 retirement plan. Persons referenced in paragraph (c), clause 19.18 (15), are participants in the unclassified program under this 19.19 chapter for judicial employment in excess of the service credit 19.20 limit in section 490.121, subdivision 22. 19.21 (c) Enumerated employees and referenced persons are: 19.22 (1) the governor, the lieutenant governor, the secretary of 19.23 state, the state auditor, the state treasurer, and the attorney 19.24 general; 19.25 (2) an employee in the office of the governor, lieutenant 19.26 governor, secretary of state, state auditor, state treasurer, 19.27 attorney general; 19.28 (3) an employee of the state board of investment; 19.29 (4) the head of a department, division, or agency created 19.30 by statute in the unclassified service, an acting department 19.31 head subsequently appointed to the position, or an employee 19.32 enumerated in section 15A.0815 or 15A.083, subdivision 4; 19.33 (5) a member of the legislature; 19.34 (6) a full-time unclassified employee of the legislature or 19.35 a commission or agency of the legislature who is appointed 19.36 without a limit on the duration of the employment or a temporary 20.1 legislative employee having shares in the supplemental 20.2 retirement fund as a result of former employment covered by this 20.3 chapter, whether or not eligible for coverage under the 20.4 Minnesota state retirement system; 20.5 (7) a person who is employed in a position established 20.6 under section 43A.08, subdivision 1, clause (3), or in a 20.7 position authorized under a statute creating or establishing a 20.8 department or agency of the state, which is at the deputy or 20.9 assistant head of department or agency or director level; 20.10 (8) the regional administrator, or executive director of 20.11 the metropolitan council, general counsel, division directors, 20.12 operations managers, and other positions as designated by the 20.13 council, all of which may not exceed 27 positions at the council 20.14 and the chair; 20.15 (9) the executive director, associate executive director, 20.16 and not to exceed nine positions of the higher education 20.17 services office in the unclassified service, as designated by 20.18 the higher education services office before January 1, 1992, or 20.19 subsequently redesignatedwith the approval of the board of20.20directors of the Minnesota state retirement system, unless the 20.21 person has elected coverage by the individual retirement account 20.22 plan under chapter 354B; 20.23 (10) the clerk of the appellate courts appointed under 20.24 article VI, section 2, of the Constitution of the state of 20.25 Minnesota; 20.26 (11) the chief executive officers of correctional 20.27 facilities operated by the department of corrections and of 20.28 hospitals and nursing homes operated by the department of human 20.29 services; 20.30 (12) an employee whose principal employment is at the state 20.31 ceremonial house; 20.32 (13)an employee of the Minnesota educational computing20.33corporation;20.34(14)an employee of the state lottery board who is covered 20.35 by the managerial plan established under section 43A.18, 20.36 subdivision 3; and 21.1(15)(14) a judge who has exceeded the service credit limit 21.2 in section 490.121, subdivision 22. 21.3 Sec. 4. Minnesota Statutes 2000, section 352D.02, 21.4 subdivision 3, is amended to read: 21.5 Subd. 3. [ELECTION IRREVOCABLEREVERSION TO GENERAL PLAN.] 21.6 An election to not participate is irrevocable during any period 21.7 of covered employment. An employee who became a covered state 21.8 employee as provided in section 352.01 or 352D.02, subdivision 21.9 1, before July 1, 2001, and credited with employee shares in the 21.10 unclassified program, after acquiring credit for ten years of 21.11 allowable servicebut prior toand within six months following 21.12 termination of covered employment, may, notwithstanding other 21.13 provisions of this subdivision, elect to terminate participation 21.14 in the unclassified plan and be covered by theregulargeneral 21.15 plan by filing such election with the executive director. The 21.16 executive director shall thereupon redeem the employee's total 21.17 shares and shall credit to the employee's account in theregular21.18 general plan the amount of contributions that would have been so 21.19 credited had the employee been covered by theregulargeneral 21.20 plan during the employee's entire covered employment. The 21.21 balance of money so redeemed and not credited to the employee's 21.22 account shall be transferred to the state contribution reserve 21.23 of the state employees retirement fund, except that (1) the 21.24 employee contribution paid to the unclassified plan must be 21.25 compared to (2) the employee contributions that would have been 21.26 paid to the general plan for the comparable period, if the 21.27 individual had been covered by that plan. If clause (1) is 21.28 greater than clause (2), the difference must be refunded to the 21.29 employee as provided in section 352.22. If clause (2) is 21.30 greater than clause (1), the difference must be paid by the 21.31 employee within six months of electing general plan coverage or 21.32 before the effective date of the annuity, whichever is sooner. 21.33 Sec. 5. Minnesota Statutes 2000, section 354.05, 21.34 subdivision 2, is amended to read: 21.35 Subd. 2. [TEACHER.] (a) "Teacher" means: 21.36 (1) a person who renders service as a teacher, supervisor, 22.1 principal, superintendent, librarian, nurse, counselor, social 22.2 worker, therapist, or psychologist in the public schools of the 22.3 state located outside of the corporate limits of the cities of 22.4 the first classor in the Minnesota state colleges and22.5universities system,or in any charitable, penal, or 22.6 correctional institutions of a governmental subdivision, or who 22.7 is engaged in educational administration in connection with the 22.8 state public school system,including the Minnesota state22.9colleges and universities system,but excluding the University 22.10 of Minnesota, whether the position be a public office or an 22.11 employment, not including members or officers of any general 22.12 governing or managing board or body; 22.13 (2) an employee of the teachers retirement association 22.14unless the employee is covered by the Minnesota state retirement22.15system due to prior employment by that system; 22.16 (3) a person who renders teaching service on a part-time 22.17 basis and who also renders other services for a single employing 22.18 unit. A person whose teaching service comprises at least 50 22.19 percent of the combined employment salary is a member of the 22.20 association for all services with the single employing unit. If 22.21 the person's teaching service comprises less than 50 percent of 22.22 the combined employment salary, the executive director must 22.23 determine whether all or none of the combined service is covered 22.24 by the association; or 22.25 (4) a person employed by the Minnesota state colleges and 22.26 universities system in a position enumerated in section 43A.08, 22.27 subdivision 1, clause (9), who is not covered by the plans 22.28 established under chapters 352D and 354B, but excluding all 22.29 student employees and other rendered services under clause (3). 22.30 (b) Teacher does not mean: 22.31 (1) a person who works for a school or institution as an 22.32 independent contractor as defined by the Internal Revenue 22.33 Service; 22.34 (2) a person employed in subsidized on-the-job training, 22.35 work experience or public service employment as an enrollee 22.36 under the federal Comprehensive Employment and Training Act from 23.1 and after March 30, 1978, unless the person has, as of the later 23.2 of March 30, 1978, or the date of employment, sufficient service 23.3 credit in the retirement association to meet the minimum vesting 23.4 requirements for a deferred retirement annuity, or the employer 23.5 agrees in writing on forms prescribed by the executive director 23.6 to make the required employer contributions, including any 23.7 employer additional contributions, on account of that person 23.8 from revenue sources other than funds provided under the federal 23.9 Comprehensive Training and Employment Act, or the person agrees 23.10 in writing on forms prescribed by the executive director to make 23.11 the required employer contribution in addition to the required 23.12 employee contribution; 23.13 (3) a person holding a part-time adult supplementary 23.14 technical college license who renders part-time teaching service 23.15 or a customized trainer as defined by the Minnesota state 23.16 colleges and universities system in a technical college if (i) 23.17 the service is incidental to the regular nonteaching occupation 23.18 of the person; and (ii) the applicable technical college 23.19 stipulates annually in advance that the part-time teaching 23.20 service or customized training service will not exceed 300 hours 23.21 in a fiscal year and retains the stipulation in its records; and 23.22 (iii) the part-time teaching service or customized training 23.23 service actually does not exceed 300 hours in a fiscal year; or 23.24 (4) a person exempt from licensure under section 122A.30. 23.25 Sec. 6. [EFFECTIVE DATE.] 23.26 Sections 1 to 5 are effective July 1, 2001. 23.27 ARTICLE 5 23.28 REFUNDS 23.29 Section 1. Minnesota Statutes 2000, section 352.22, 23.30 subdivision 2, is amended to read: 23.31 Subd. 2. [AMOUNT OF REFUND.] Except as provided in 23.32 subdivision 3, the refund payable to a person whoceased to23.33beis no longer a state employee by reason of termination of 23.34 state service and applies for a refund after July 1, 2001, 23.35 regardless of termination date and only applies for amounts not 23.36 yet refunded, is in an amount equal to employee accumulated 24.1 contributions plus interest at the rate of six percent per year 24.2 compounded annually. Included with the refund is any interest 24.3 paid as part of repayment of a past refund, plus interest 24.4 thereon from the date of repayment. Interest must be computed 24.5 to the first day of the month in which the refund is processed 24.6 and must be based on fiscal year or monthly balances, whichever 24.7 applies. 24.8 Sec. 2. Minnesota Statutes 2000, section 352B.11, 24.9 subdivision 1, is amended to read: 24.10 Subdivision 1. [REFUND OF PAYMENTS.] A member who has not 24.11 received other benefits under this chapter is entitled to a 24.12 refund of payments made by salary deduction, plus interest, if 24.13 the member isseparatedno longer a state employee, either 24.14 voluntarily or involuntarily, from state service that entitled 24.15 the member to membership and applies for a refund after July 1, 24.16 2001, regardless of termination date and only applies for 24.17 amounts not yet refunded. In the event of the member's death, 24.18 if there are no survivor benefits payable under this chapter, a 24.19 refund is payable to the last designated beneficiary on a form 24.20 filed with the director before death, or if no designation is 24.21 filed, the refund is payable to the member's estate. Interest 24.22 must be computed at the rate of six percent a year, compounded 24.23 annually. To receive a refund, application must be made on a 24.24 form prescribed by the executive director. 24.25 Sec. 3. Minnesota Statutes 2000, section 353.34, 24.26 subdivision 2, is amended to read: 24.27 Subd. 2. [REFUND WITH INTEREST.] Except as provided in 24.28 subdivision 1, any person who ceases to be a public employee and 24.29 applies for a refund after July 1, 2001, shall receive a refund 24.30 in an amount equal to accumulated deductions with interest to 24.31 the first day of the month in which the refund is processed at 24.32 the rate of six percent compounded annually based on fiscal year 24.33 balances. If a person repays a refund and subsequently applies 24.34 for another refund, the repayment amount, including interest, is 24.35 added to the fiscal year balance in which the repayment was made. 24.36 Sec. 4. Minnesota Statutes 2000, section 354.49, 25.1 subdivision 3, is amended to read: 25.2 Subd. 3. [REFUND IN CERTAIN INSTANCES.] Any person not 25.3 covered by the formula program who has attained normal 25.4 retirement age with less than the minimum service required for 25.5 an annuity and who ceases to be a member because of termination 25.6 of teaching service is entitled upon application to a refund in 25.7 an amount equal to the person's accumulated deductions plus 25.8 interest at the rates used to compute annuities under section 25.9 354.44, subdivision 2 in lieu of a proportionate annuity 25.10 pursuant to section 356.32. If a person who has attained normal 25.11 retirement age is eligible for an annuity or is covered by the 25.12 formula program, the refund is an amount equal to the 25.13 accumulated deductions credited to the person's account as of 25.14 June 30, 1957, and after July 1, 1957, the accumulated 25.15 deductions plus interest at the rate of six percent compounded 25.16 annually regardless of when the employee terminated. For the 25.17 purpose of this subdivision, interest must be computed on fiscal 25.18 year end balances to the first day of the month in which the 25.19 refund is issued. 25.20 Sec. 5. Minnesota Statutes 2000, section 490.124, 25.21 subdivision 12, is amended to read: 25.22 Subd. 12. [REFUND.] (a) Any person who ceases to be a 25.23 judge but who does not qualify for a retirement annuity or other 25.24 benefit under section 490.121 shall be entitled to a refund in 25.25 an amount equal to all the person's contributions to the judges' 25.26 retirement fund, regardless of when they were made, plus 25.27 interest computed to the first day of the month in which the 25.28 refund is processed based on fiscal year balances at an annual 25.29 rate offivesix percent compounded annually and applies to any 25.30 refund issued after July 1, 2001. 25.31 (b) A refund of contributions under paragraph (a) 25.32 terminates all service credits and all rights and benefits of 25.33 the judge and the judge's survivors. A person who becomes a 25.34 judge again after taking a refund under paragraph (a) may 25.35 reinstate previously terminated service credits, rights, and 25.36 benefits by repaying all refunds. A repayment must include 26.1 interest at an annual rate of 8.5 percent compounded annually. 26.2 Sec. 6. [EFFECTIVE DATE.] 26.3 Sections 1 to 5 are effective July 1, 2001. 26.4 ARTICLE 6 26.5 SURVIVOR BENEFITS 26.6 Section 1. Minnesota Statutes 2000, section 352.12, 26.7 subdivision 2, is amended to read: 26.8 Subd. 2. [SURVIVING SPOUSE BENEFIT.] (a) If an employee or 26.9 former employee has credit for at least three years allowable 26.10 service and dies before an annuity or disability benefit has 26.11 become payable, notwithstanding any designation of beneficiary 26.12 to the contrary, the surviving spouse of the employee may elect 26.13 to receive, in lieu of the refund with interest under 26.14 subdivision 1, an annuity equal to the joint and 100 percent 26.15 survivor annuity which the employee or former employeecould26.16have qualified for on the date of deathhad earned based on 26.17 length of service, average salary, and age the employee would 26.18 have been at the date payment begins. 26.19 (b) If the employee was under age 55 and has credit for at 26.20 least 30 years of allowable service on the date of death, the 26.21 surviving spouse may elect to receive a 100 percent joint and 26.22 survivor annuity based on the ageofthe employee would have 26.23 been and the age of the surviving spouse on the dateof death26.24 payment begins. The annuity is payable using the full early 26.25 retirement reduction under section 352.116, subdivision 1, 26.26 paragraph (a), to age 55 and one-half of the early retirement 26.27 reduction from age 55 to the age payment begins. 26.28 (c) If the employee was under age 55 and has credit for at 26.29 least three years of allowable service credit on the date of 26.30 death but did not yet qualify for retirement, the surviving 26.31 spouse may elect to receive a 100 percent joint and survivor 26.32 annuity based on the ageofthe deceased employee would have 26.33 been and the age of the surviving spouse at thetime of death26.34 date payment begins. The annuity is payable using the full 26.35 early retirement reduction under section 352.116, subdivision 1 26.36 or 1a, from age of full retirement to age 55 and one-half of the 27.1 early retirement reduction from age 55 to the age payment begins. 27.2 The surviving spouse of a former employee eligible for 27.3 benefits under paragraph (a) may apply for the annuity at any 27.4 time after the date on which theemployee orformer employee 27.5 would have attained the required age for retirement based on the 27.6 allowable service earned. The surviving spouse eligible for 27.7 surviving spouse benefits under paragraph (b) or (c) may apply 27.8 for the annuity at any time after the employee's death. The 27.9 annuity must be computed under sections 352.115, subdivisions 1, 27.10 2, and 3, and 352.116, subdivisions 1, 1a, and 3. Sections 27.11 352.22, subdivision 3, and 352.72, subdivision 2, apply to a 27.12 deferred annuity or surviving spouse benefit payable under this 27.13 subdivision. The annuity must cease with the last payment 27.14 received by the surviving spouse in the lifetime of the 27.15 surviving spouse, or upon expiration of a term certain benefit 27.16 payment to a surviving spouse under subdivision 2a. An amount 27.17 equal to the excess, if any, of the accumulated contributions 27.18 credited to the account of the deceased employee in excess of 27.19 the total of the benefits paid and payable to the surviving 27.20 spouse must be paid to thedeceased employee's or former27.21employee's last designated beneficiary or, if none, as specified27.22under subdivision 1surviving spouse's estate. 27.23 Any employee or former employee may request in writing that 27.24 this subdivision not apply and that payment be made only to a 27.25 designated beneficiary as otherwise provided by this chapter. 27.26 Sec. 2. Minnesota Statutes 2000, section 352.12, 27.27 subdivision 2a, is amended to read: 27.28 Subd. 2a. [SURVIVING SPOUSE COVERAGE TERM CERTAIN.] In 27.29 lieu of the 100 percent optional annuity under subdivision 2, or 27.30 refund under subdivision 1, the surviving spouse of a deceased 27.31 employee or former employee may elect to receive survivor 27.32 coverage in a term certain offive,ten, 15, or 20 years, but 27.33 monthly payments must not exceed 75 percent of the average 27.34 high-five monthly salary of the deceased employee or former 27.35 employee. The monthly term certain annuity must be actuarially 27.36 equivalent to the 100 percent optional annuity under subdivision 28.1 2. 28.2 If a survivor elects a term certain annuity and dies before 28.3 the expiration of the specified term certain period, the 28.4 commuted value of the remaining annuity payments must be paid in 28.5 a lump sum to the survivor's estate. 28.6 Sec. 3. Minnesota Statutes 2000, section 352.12, 28.7 subdivision 2b, is amended to read: 28.8 Subd. 2b. [DEPENDENTCHILD SURVIVOR COVERAGE.] If there is 28.9 no surviving spouse eligible for benefits under subdivision 2, a 28.10dependentchild or children as defined in section 352.01, 28.11 subdivision 26, is eligible for monthly payments. Payments to a 28.12dependentchild must be paid from the date of the employee's 28.13 death to the date thedependentchild attains age2022 if the 28.14 child is under age1517. If the child is1517 years or older 28.15 on the date of death, payment must be made for five years. The 28.16 payment to adependentchild is an amount actuarially equivalent 28.17 to the value of a 100 percent optional annuity under subdivision 28.18 2 using the age of the employee and age of thedependentchild 28.19 at the date of death in lieu of the age of the surviving 28.20 spouse. If there is more than onedependentchild, each 28.21dependentchild shall receive a proportionate share of the 28.22 actuarial value of the employee's account. 28.23 Sec. 4. Minnesota Statutes 2000, section 352.931, 28.24 subdivision 1, is amended to read: 28.25 Subdivision 1. [SURVIVING SPOUSE BENEFIT.] (a) If the 28.26 correctional employee was at least age 50, has credit for at 28.27 least three years of allowable service, and dies before an 28.28 annuity or disability benefit has become payable, 28.29 notwithstanding any designation of beneficiary to the contrary, 28.30 the surviving spouse of the employee may elect to receive, in 28.31 lieu of the refund under section 352.12, subdivision 1, an 28.32 annuity for life equal to the joint and 100 percent survivor 28.33 annuity which the employee could have qualified for had the 28.34 employee terminated service on the date of death. The election 28.35 may be made at any time after the date of death of the 28.36 employee. The surviving spouse benefit begins to accrue as of 29.1 the first of the month next following the date on which the 29.2 application for the benefit was filed. 29.3 (b) If the employee was under age 50, dies, and had credit 29.4 for at least three years of allowable service credit on the date 29.5 of death but did not yet qualify for retirement, the surviving 29.6 spouse may elect to receive a 100 percent joint and survivor 29.7 annuity based on the age of the employee and surviving spouse at 29.8 the timeof deaththe benefit begins. The annuity is payable 29.9 using the early retirement reduction under section 352.93, 29.10 subdivision 2a, to age 50, and one-half of the early retirement 29.11 reduction from age 50 to the age payment begins. The surviving 29.12 spouse eligible for surviving spouse benefits under this 29.13 paragraph may apply for the annuity at any time after the 29.14 employee's death. Sections 352.22, subdivision 3, and 352.72, 29.15 subdivision 2, apply to a deferred annuity or surviving spouse 29.16 benefit payable under this subdivision. 29.17 (c) The annuity must cease with the last payment received 29.18 by the surviving spouse in the lifetime of the surviving 29.19 spouse. Any employee may request in writing that this 29.20 subdivision not apply and that payment be made only to a 29.21 designated beneficiary as otherwise provided by this chapter. 29.22 Sec. 5. Minnesota Statutes 2000, section 352.931, 29.23 subdivision 3, is amended to read: 29.24 Subd. 3. [DEPENDENTCHILD SURVIVOR COVERAGE.] If there is 29.25 no surviving spouse eligible for benefits under subdivision 1, a 29.26dependentchild as defined in section 352.01, subdivision 26, is 29.27 eligible for adependentchild survivor benefit. Benefits to 29.28 adependentchild must be paid from the date of the employee's 29.29 death to the date thedependentchild attains age2022 if the 29.30 child is under age1517 on the date of death. If the child 29.31 is1517 years or older on the date of death, the benefit is 29.32 payable for five years. The payment to adependentchild is an 29.33 amount actuarially equivalent to the value of a 100 percent 29.34 joint and survivor optional annuity using the age of the 29.35 employee and age of thedependentchild at the date of death in 29.36 lieu of the age of the surviving spouse. If there is more than 30.1 onedependentchild, eachdependentchild shall receive a 30.2 proportionate share of the actuarial value of the employee's 30.3 account, with the amount of the benefit payable to each child to 30.4 be determined based on the portion of the total eligibility 30.5 period that each child is eligible. The process for calculating 30.6 thedependentchild survivor benefit must be approved by the 30.7 actuary retained by the legislative commission on pensions and 30.8 retirement. 30.9 Sec. 6. Minnesota Statutes 2000, section 352B.11, 30.10 subdivision 2, is amended to read: 30.11 Subd. 2. [DEATH; PAYMENT TO SPOUSE AND CHILDREN.] If a 30.12 member serving actively as a member, or a member or former 30.13 member receiving the disability benefit before attaining age 65 30.14 or reaching the five-year anniversary of the effective date of 30.15 the disability benefit, whichever is later, provided by section 30.16 352B.10, subdivisions 1 and 2, dies from any cause before 30.17 attaining age 65 or reaching the five-year anniversary of the 30.18 effective date of the disability benefit, whichever is later, 30.19 the surviving spouse anddependentchildren are entitled to 30.20 benefit payments as follows: 30.21 (a) A member with at least three years of allowable service 30.22 is deemed to have elected a 100 percent joint and survivor 30.23 annuity payable to a surviving spouse only on or after the date 30.24 the member or former member became or would have become 55. 30.25 (b) The surviving spouse of a member who had credit for 30.26 less than three years of service shall receive, for life, a 30.27 monthly annuity equal to 50 percent of that part of the average 30.28 monthly salary of the member from which deductions were made for 30.29 retirement. 30.30 (c) The surviving spouse of a member who had credit for at 30.31 least three years service and who died after becoming 55 years 30.32 old, may elect to receive a 100 percent joint and survivor 30.33 annuity, for life, notwithstanding a subsequent remarriage, in 30.34 lieu of the annuity prescribed in paragraph (b). 30.35 (d) The surviving spouse of any member who had credit for 30.36 three years or more and who was not 55 years old at death, shall 31.1 receive the benefit equal to 50 percent of the average monthly 31.2 salary as described in clause (b) until the deceased member 31.3 would have become 55 years old, and beginning the first of the 31.4 month following that date, may elect to receive the 100 percent 31.5 joint and survivor annuity. 31.6 (e) Eachdependentchild shall receive a monthly annuity 31.7 equal totentwelve and one-half percent of that part of the 31.8 average monthly salary of the former member from which 31.9 deductions were made for retirement.A dependent child over 1831.10and under 23 years of age also may receive the monthly benefit31.11provided in this section, if the child is continuously attending31.12an accredited school as a full-time student during the normal31.13school year as determined by the director. If the child does31.14not continuously attend school but separates from full-time31.15attendance during any part of a school year, the annuity shall31.16cease at the end of the month of separation. In addition, a31.17payment of $20 per month shall be prorated equally to surviving31.18dependent children when the former member is survived by one or31.19more dependent children.Payments for the benefit of 31.20 anyqualified dependentminor child must be made to the 31.21 surviving spouse, or if there is none, to the legal guardian of 31.22 the child. The maximum monthly benefit for any one family must 31.23 not be less than 50 nor exceed 70 percent of the average monthly 31.24 salary for any number of children. 31.25 (f) If the member dies under circumstances that entitle the 31.26 surviving spouse anddependentchildren to receive benefits 31.27 under the workers' compensation law, the workers' compensation 31.28 benefits received by them must not be deducted from the benefits 31.29 payable under this section. 31.30 (g) The surviving spouse of a deceased former member who 31.31 had credit for three or more years of allowable service, but not 31.32 the spouse of a former member receiving a disability benefit 31.33 under section 352B.10, subdivision 2, is entitled to receive the 31.34 100 percent joint and survivor annuity at the time the deceased 31.35 member would have become 55 years old. If a former member dies 31.36 who does not qualify for other benefits under this chapter, the 32.1 surviving spouse or, if none, the children orheirsthe member's 32.2 estate are entitled to a refund of the accumulated deductions 32.3 left in the fund plus interest at the rate of six percent per 32.4 year compounded annually. 32.5 Sec. 7. Minnesota Statutes 2000, section 353.32, 32.6 subdivision 1c, is amended to read: 32.7 Subd. 1c. [DEPENDENTCHILD SURVIVOR COVERAGE.] If there is 32.8 no surviving spouse eligible for benefits under subdivision 1a, 32.9 adependentchild or children as defined in section 353.01, 32.10 subdivision 15a, is eligible for monthly payments. Payments to 32.11 adependentchild must be paid from the date of the member's 32.12 death to the date thedependentchild attains age2022 if the 32.13 child is under age1517. If the child is1517 years or older 32.14 on the date of death, payment must be made for five years. The 32.15 payment to adependentchild is an amount actuarially equivalent 32.16 to the value of a 100 percent optional annuity under subdivision 32.17 1a using the age of the member and age of thedependentchild at 32.18 the date of death in lieu of the age of the surviving spouse. 32.19 If there is more than onedependentchild, eachdependentchild 32.20 shall receive a proportionate share of the actuarial value of 32.21 the employee's account. 32.22 Sec. 8. Minnesota Statutes 2000, section 354.46, 32.23 subdivision 1, is amended to read: 32.24 Subdivision 1. [BASIC PROGRAM; BENEFITS FOR SPOUSE AND 32.25 CHILDREN OF TEACHER.] If a basic member who has at least 18 32.26 months of allowable service credit and who has an average salary 32.27 as defined in section 354.44, subdivision 6, equal to or greater 32.28 than $75 dies prior to retirement or if a former basic member 32.29 who, at the time of death, was totally and permanently disabled 32.30 and receiving disability benefits pursuant to section 354.48 32.31 dies before attaining age 65 or reaching the five-year 32.32 anniversary of the effective date of the disability benefit, 32.33 whichever is later, the surviving spouse anddependentchildren 32.34 of the basic member or former basic member are entitled to 32.35 receive a monthly benefit as follows: 32.36 (a) Surviving 33.1 spouse .....50 percent of the basic member's monthly 33.2 average salary paid in the last full 33.3 fiscal year preceding death 33.4 (b) Each 33.5 dependent 33.6 child ......ten percent of the basic member's 33.7 monthly average salary paid in the 33.8 last full fiscal year preceding death 33.9 Payments for the benefit of anydependentminor child under 33.10 the age of 22 years must be made to the surviving parent, or if 33.11 there be none, to the legal guardian of the child. The maximum 33.12 monthly benefit must not exceed $1,000 for any one family, and 33.13 the minimum benefit per family must not be less than 50 percent 33.14 of the basic member's average salary, subject to the foregoing 33.15 maximum. The survivingdependentchildren's benefit must be 33.16 reduced pro tanto when any surviving child is no longer 33.17dependentunder the age of 22 years. 33.18 If the basic member and the surviving spouse are killed in 33.19 a common disaster and if the total of all survivors benefits 33.20 payable pursuant to this subdivision is less than the 33.21 accumulated deductions plus interest payable, the surviving 33.22 dependent children shall receive the difference in a lump sum 33.23 payment. 33.24 If the survivor benefits provided in this subdivision 33.25 exceed in total the monthly average salary of the deceased basic 33.26 member, these benefits must be reduced to an amount equal to the 33.27 deceased basic member's monthly average salary. 33.28 Prior to payment of any survivor benefit pursuant to this 33.29 subdivision, in lieu of that benefit, the surviving spouse may 33.30 elect to receive the joint and survivor annuity provided 33.31 pursuant to subdivision 2, or may elect to receive a refund of 33.32 accumulated deductions with interest in a lump sum as provided 33.33 pursuant to section 354.47, subdivision 1. If there are any 33.34 survivingdependentchildren, the surviving spouse may elect to 33.35 receive the refund of accumulated deductions only with the 33.36 consent of the district court of the district in which the 34.1 survivingdependentchild or children reside. 34.2 Sec. 9. Minnesota Statutes 2000, section 354.46, 34.3 subdivision 2, is amended to read: 34.4 Subd. 2. [DEATH WHILE ELIGIBLE DESIGNATED BENEFICIARY 34.5 BENEFIT.] (a) The surviving spouse of any member or former 34.6 member who has credit for at least three years of allowable 34.7 service is entitled to joint and survivor annuity coverage in 34.8 the event of death of the member prior to retirement. If the 34.9 surviving spouse does not elect to receive a surviving spouse 34.10 benefit under subdivision 1, if applicable, or does not elect to 34.11 receive a refund of accumulated member contributions under 34.12 section 354.47, subdivision 1, the surviving spouse is entitled 34.13 to receive, upon written application on a form prescribed by the 34.14 executive director, a benefit equal to the second portion of a 34.15 100 percent joint and survivor annuity specified under section 34.16 354.45, based on the ageofthe member would have been and the 34.17 age of the surviving spouse at the timeof death of the member,34.18andthe benefit accrues computed under section 354.44, 34.19 subdivision 2 or 6, whichever is applicable. 34.20 (b) If the member was under age 55 and has credit for at 34.21 least 30 years of allowable serviceon the date of death, the 34.22 surviving spouse may elect to receive a 100 percent joint and 34.23 survivor annuity based on the ageofthe member would have been 34.24 and the age of the surviving spouse on the dateof deaththe 34.25 benefit accrues. The annuity is payable using the full early 34.26 retirement reduction under section 354.44, subdivision 6, 34.27 paragraph (3)(ii), to age 55 and one-half of the early 34.28 retirement reduction from age 55 to the age payment begins. 34.29 (c) If the member was under age 55 and has credit for at 34.30 least three years of allowable service on the date of death but 34.31 did not yet qualify for retirement, the surviving spouse may 34.32 elect to receive the 100 percent joint and survivor annuity 34.33 based on the ageofthe member would have been and the age of 34.34 the surviving spouse at the timeof deaththe benefit accrues. 34.35 The annuity is calculated using the full early retirement 34.36 reduction under section 354.44, subdivision 6, to age 55 and 35.1 one-half of the early retirement reduction from age 55 to the 35.2 age the annuity begins. The surviving spouse eligible for a 35.3 surviving spouse benefit under paragraph (a) may apply for the 35.4 annuity at any time after the date on which the deceased 35.5 employee would have attained the required age for retirement 35.6 based on the employee's allowable service. The surviving spouse 35.7 eligible for surviving spouse benefits under paragraph (b) or 35.8 (c) may apply for the annuity any time after the member's death. 35.9 This benefit accrues from the day following the date of the 35.10 member's death but may not begin to accrue more than six months 35.11 before the date the application is filed with the executive 35.12 director. Sections 354.55, subdivision 11, and 354.60 apply to 35.13 a deferred annuity payable under this section. The benefit is 35.14 payable for life. 35.15 Sec. 10. Minnesota Statutes 2000, section 354.46, 35.16 subdivision 2b, is amended to read: 35.17 Subd. 2b. [DEPENDENTCHILD SURVIVOR COVERAGE.] If there is 35.18 no surviving spouse eligible for benefits under subdivision 2, a 35.19dependentchild or children as defined in section 354.05, 35.20 subdivision 8a, is eligible for monthly payments. Payments to a 35.21dependentchild must be paid from the date of the member's death 35.22 to the date thedependentchild attains age2022 if the child 35.23 is under age1517. If the child is1517 years or older on the 35.24 date of death, payment must be made for five years. The payment 35.25 to adependentchild is an amount actuarially equivalent to the 35.26 value of a 100 percent optional annuity under subdivision 2 35.27 using the age of the member and age of thedependentchild at 35.28 the date of death in lieu of the age of the member and the 35.29 spouse. If there is more than onedependentchild, each 35.30dependentchild shall receive a proportionate share of the 35.31 actuarial value of the member's account. 35.32 Sec. 11. [EFFECTIVE DATE.] 35.33 Sections 1 to 10 are effective July 1, 2001. 35.34 ARTICLE 7 35.35 TECHNICAL 35.36 Section 1. Minnesota Statutes 2000, section 3A.03, 36.1 subdivision 2, is amended to read: 36.2 Subd. 2. [REFUND.] (1) Anypersonformer member who has 36.3 made contributions pursuant to subdivision 1 who is no longer a 36.4 member of the legislature is entitled to receive upon 36.5 application to the director a refund of all contributions 36.6 credited to the member's account with interest at an annual rate 36.7 of six percent compounded annually. 36.8 (2) The refund of contributions as provided in clause (1) 36.9 terminates all rights of a former member of the legislature or 36.10 survivors of the former member under this chapter. Should the 36.11 former member of the legislature again be a member of the 36.12 legislature after having taken a refund as provided above, the 36.13 member shall be considered a new member. However, a new member 36.14 may reinstate the rights and credit for service forfeited, 36.15 provided the new member repays all refunds taken plus interest 36.16 at an annual rate of 8.5 percent compounded annually. 36.17 (3) No person shall be required to apply for or accept a 36.18 refund. 36.19 Sec. 2. Minnesota Statutes 2000, section 11A.18, 36.20 subdivision 7, is amended to read: 36.21 Subd. 7. [PARTICIPATION AND FINANCIAL REPORTING IN FUND.] 36.22 (a) Each participating public retirement fund or plan which has 36.23 transferred money to the state board for investment in the 36.24 postretirement investment fund shall have an undivided 36.25 participation in the fund. The participation on any valuation 36.26 date shall be determined by adding to the participation on the 36.27 prior valuation date:(a)(1) funds transferred in accordance 36.28 with subdivision 6,(b)(2) the amount of required investment 36.29 income on its participation as defined in subdivision 9,clause36.30(1)(c)paragraph (c), clauses (1) and(c)(3) the reserves for 36.31 any benefit adjustment made as of the current valuation date 36.32 with the result adjusted for any mortality gains or losses 36.33 determined pursuant to subdivision 11. 36.34 (b) The total fair market value of the postretirement fund 36.35 must be calculated in accordance with generally accepted 36.36 accounting principles. The fair market value share of each fund 37.1 participating in the postretirement investment fund shall be 37.2 allocated by adding to the fair market value at the beginning of 37.3 the fiscal year: (1) 100 percent of the funds transferred in 37.4 accordance with subdivision 6; and (2) a pro rata distribution 37.5 of unrealized gains or losses, based on a weighted percentage of 37.6 participation at the end of each month of the fiscal year. 37.7 Sec. 3. Minnesota Statutes 2000, section 352.04, 37.8 subdivision 8, is amended to read: 37.9 Subd. 8. [DEPARTMENT REQUIRED TO PAY OMITTED SALARY 37.10 DEDUCTIONS.] (a) If a department fails to take deductions past 37.11 due for a period of6030 days or less from an employee's salary 37.12 as provided in this section, those deductions must be taken on 37.13 later payroll abstracts. 37.14 (b) If a department fails to take deductions past due for a 37.15 period in excess of6030 days from an employee's salary as 37.16 provided in this section, the department, and not the employee, 37.17 must pay on later payroll abstracts the employee and employer 37.18 contributions and an amount equivalent to 8.5 percent of the 37.19 total amount due in lieu of interest, or if the delay in payment 37.20 exceeds one year, 8.5 percent compound annual interest. 37.21 (c) If a department fails to take deductions past due for a 37.22 period of6030 days or less and the employee is no longer in 37.23 state service so that the required deductions cannot be taken 37.24 from the salary of the employee, the department must 37.25 nevertheless pay the required employer contributions. If any 37.26 department fails to take deductions past due for a period in 37.27 excess of6030 days and the employee is no longer in state 37.28 service, the omitted contributions must be recovered under 37.29 paragraph (b). 37.30 (d) If an employee from whose salary required deductions 37.31 were past due for a period of6030 days or less leaves state 37.32 service before the payment of the omitted deductions and 37.33 subsequently returns to state service, the unpaid amount is 37.34 considered the equivalent of a refund. The employee accrues no 37.35 right by reason of the unpaid amount, except that the employee 37.36 may pay the amount of omitted deductions as provided in section 38.1 352.23. 38.2 Sec. 4. Minnesota Statutes 2000, section 352.22, 38.3 subdivision 3, is amended to read: 38.4 Subd. 3. [DEFERRED ANNUITY.] (a) An employee who has at 38.5 least three years of allowable service when termination occurs 38.6 may elect to leave the accumulated contributions in the fund and 38.7 be entitled to a deferred retirement annuity. The annuity must 38.8 be computed under the law in effect when state service 38.9 terminated, on the basis of allowable service before termination 38.10 of service. 38.11 (b) An employee on layoff or on leave of absence without 38.12 pay, except a leave of absence for health reasons, who does not 38.13 return to state service shall have an annuity, deferred annuity, 38.14 or other benefit to which the employee may become entitled 38.15 computed under the law in effect on the employee's last working 38.16 day. 38.17 (c) No application for a deferred annuity may be made more 38.18 than60180 days before the time the former employee reaches the 38.19 required age for entitlement to the payment of the annuity. The 38.20 deferred annuity begins to accrue no earlier than60180 days 38.21 before the date the application is filed in the office of the 38.22 system, but not (1) before the date the employee reaches the 38.23 required age for entitlement to the annuity nor (2) before the 38.24 day following the termination of state service in a position not 38.25 covered by the retirement system. 38.26 (d) Application for the accumulated contributions left on 38.27 deposit with the fund may be made at any timeafter 30 days38.28 following the date of termination of service. 38.29 Sec. 5. Minnesota Statutes 2000, section 352.22, 38.30 subdivision 8, is amended to read: 38.31 Subd. 8. [REFUND SPECIFICALLY LIMITED.] If a former 38.32 employee covered by the system does not apply for refund within 38.33 five years after the last deduction was taken from salary for 38.34 the retirement fund, and does not have enough service to qualify 38.35 for a deferred annuity, accumulated contributions must be 38.36 credited to and become a part of the retirement fund. If the 39.1 former employee returns to state service and becomes a state 39.2 employee covered by the system, the amount credited to the 39.3 retirement fund, if more than$2$25, shall be restored to the 39.4 individual account. If the amount credited to the fund is over 39.5$2$25 and the former employee applies for refund or an annuity 39.6 under section 352.72, the amount must be restored to the former 39.7 employee's individual account and refund made or annuity paid 39.8 whichever applies. 39.9 Sec. 6. Minnesota Statutes 2000, section 354.52, 39.10 subdivision 4, is amended to read: 39.11 Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.] An 39.12 employer shall remit all amounts due to the association and 39.13 furnish a statement indicating the amount due and transmitted 39.14 with any other information required by the executive director. 39.15 If an amount due is not received by the association withinseven39.16 14 calendar days of the payroll warrant, the amount accrues 39.17 interest at an annual rate of 8.5 percent compounded annually 39.18 from the due date until the amount is received by the 39.19 association. All amounts due and other employer obligations not 39.20 remitted within 60 days of notification by the association must 39.21 be certified to the commissioner of finance who shall deduct the 39.22 amount from any state aid or appropriation amount applicable to 39.23 the employing unit. 39.24 Sec. 7. Minnesota Statutes 2000, section 354.66, 39.25 subdivision 2, is amended to read: 39.26 Subd. 2. [QUALIFIED PART-TIME TEACHER PROGRAM 39.27 PARTICIPATION REQUIREMENTS.] (a) A teacher in a Minnesota public 39.28 elementary school, a Minnesota secondary school, or the 39.29 Minnesota state colleges and universities system who has three 39.30 years or more of allowable service in the association or three 39.31 years or more of full-time teaching service in Minnesota public 39.32 elementary schools, Minnesota secondary schools, or the 39.33 Minnesota state colleges and universities system, by agreement 39.34 with the board of the employing district or with the authorized 39.35 representative of the board, may be assigned to teaching service 39.36 in a part-time teaching position under subdivision 3. The 40.1 agreement must be executed before October 1 of the year for 40.2 which the teacher requests to make retirement contributions 40.3 under subdivision 4. A copy of the executed agreement must be 40.4 filed with the executive director of the association. If the 40.5 copy of the executed agreement is filed with the association 40.6 after October 1 of the year for which the teacher requests to 40.7 make retirement contributions under subdivision 4, the employing 40.8 unit shall pay the fine specified in section 354.52, subdivision 40.9 6, for each calendar day that elapsed since the October 1 due 40.10 date. The association may not accept an executed agreement that 40.11 is received by the association more than 15 months late. The 40.12 association may not waive the fine required by this section. 40.13 (b) Notwithstanding any contrary provision of paragraph 40.14 (a), if the teacher also is a legislator: 40.15 (1) the agreement in paragraph (a) must be executed before 40.16 March 1 of the fiscal year for which the teacher requests to 40.17 make retirement contributions under subdivision 4; and 40.18 (2) fines specified in paragraph (a) apply if the employing 40.19 unit does not file the executed agreement with the executive 40.20 director of the association by March 1. 40.21 Sec. 8. Minnesota Statutes 2000, section 356.55, 40.22 subdivision 7, is amended to read: 40.23 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION 40.24 PROCEDURE.] (a) This section expires and is repealed onJuly 1,40.252001May 16, 2002. 40.26 (b) Authority for any public pension plan to accept a prior 40.27 service credit payment calculated in a timely fashion under this 40.28 section expires onOctober 1, 2001May 16, 2003. 40.29 Sec. 9. [EFFECTIVE DATE; TRANSITIONAL PROVISION.] 40.30 Sections 1 to 6 and 8 are effective July 1, 2001. Section 40.31 7 is effective the day following final enactment. In 2001, a 40.32 teacher who also is a legislator may execute an agreement under 40.33 Minnesota Statutes, section 354.66, at any time before June 30, 40.34 2001. The employing unit must file a copy with the executive 40.35 director of the association within 30 days after the agreement 40.36 is executed.