HF 1488

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state employment; modifying salary limit
provisions for certain retirement system directors and
the director of the State Board of Investment;
amending Minnesota Statutes 2004, sections 11A.07,
subdivision 1; 15A.0815, subdivisions 2, 3; 352.03,
subdivision 4; 353.03, subdivision 3a; 354.06,
subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 11A.07,
subdivision 1, is amended to read:

Subdivision 1.

Selection.

The state board shall select
an executive director new text begin and set the salary for the executive
director. The salary of the executive director must not exceed
the salary limit established under section 15A.0815, subdivision
2 new text end .

Sec. 2.

Minnesota Statutes 2004, section 15A.0815,
subdivision 2, is amended to read:

Subd. 2.

Group i salary limits.

The salaries for
positions in this subdivision may not exceed 95 percent of the
salary of the governor:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of employee relations;

Commissioner of finance;

Commissioner of health;

Executive director, Higher Education Services Office;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

deleted text begin Executive director, State Board of Investment;
deleted text end

Commissioner of labor and industry;

Commissioner of natural resources;

Director of Office of Strategic and Long-Range Planning;

Commissioner, Pollution Control Agency;

Commissioner of public safety;

Commissioner of revenue;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Sec. 3.

Minnesota Statutes 2004, section 15A.0815,
subdivision 3, is amended to read:

Subd. 3.

Group ii salary limits.

The salaries for
positions in this subdivision may not exceed 85 percent of the
salary of the governor:

Executive director of Gambling Control Board;

Commissioner, Iron Range Resources and Rehabilitation
Board;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Retardation;

Chair, Metropolitan Council;

Executive director of pari-mutuel racing;

deleted text begin Executive director, Public Employees Retirement
Association; deleted text end new text begin and
new text end

Commissioner, Public Utilities Commission deleted text begin ;
deleted text end

deleted text begin Executive director, State Retirement System; and
deleted text end

deleted text begin Executive director, Teachers Retirement Association deleted text end .

Sec. 4.

Minnesota Statutes 2004, section 352.03,
subdivision 4, is amended to read:

Subd. 4.

Duties and powers of board of directors.

The
board shall:

(1) elect a chair;

(2) appoint an executive director;

(3) establish rules to administer this chapter and chapters
3A, 352B, 352C, 352D, and 490 and transact the business of the
system, subject to the limitations of law;

(4) consider and dispose of, or take any other action the
board of directors deems appropriate concerning denials of
applications for annuities or disability benefits under this
chapter, and complaints of employees and others pertaining to
the retirement of employees and the operation of the system;

(5) advise the director on any matters relating to the
system and carrying out functions and purposes of this chapter.
The board's advice shall control; and

(6) oversee the administration of the state deferred
compensation plan established in section 352.96.

The director and assistant director must be in the
unclassified service but appointees may be selected from civil
service lists if desired. The salary of the executive director
deleted text begin must be as provided by deleted text end new text begin shall be set by the board but must not
exceed the salary limit established in new text end section 15A.0815 new text begin ,
subdivision 3 new text end . The salary of the assistant director must be set
in accordance with section 43A.18, subdivision 3.

Sec. 5.

Minnesota Statutes 2004, section 353.03,
subdivision 3a, is amended to read:

Subd. 3a.

Executive director.

(a) [APPOINTMENT.] The
board shall appoint deleted text begin , with the advice and consent of the senate,
deleted text end an executive director on the basis of education, experience in
the retirement field, and leadership ability. The executive
director shall have had at least five years' experience in an
executive level management position, which has included
responsibility for pensions, deferred compensation, or employee
benefits. The executive director serves at the pleasure of the
board. The salary of the executive director deleted text begin is as provided
by deleted text end new text begin must not exceed the salary limit provided under new text end section
15A.0815 new text begin , subdivision 3 new text end .

(b) [DUTIES.] The management of the association is vested
in the executive director who shall be the executive and
administrative head of the association. The executive director
shall act as adviser to the board on all matters pertaining to
the association and shall also act as the secretary of the
board. The executive director shall:

(1) attend all meetings of the board;

(2) prepare and recommend to the board appropriate rules to
carry out the provisions of this chapter;

(3) establish and maintain an adequate system of records
and accounts following recognized accounting principles and
controls;

(4) designate, with the approval of the board, up to two
persons who shall serve in the unclassified service and whose
salary is set in accordance with section 43A.18, subdivision 3,
appoint a confidential secretary in the unclassified service,
and appoint employees to carry out this chapter, who are subject
to chapters 43A and 179A in the same manner as are executive
branch employees;

(5) organize the work of the association as the director
deems necessary to fulfill the functions of the association, and
define the duties of its employees and delegate to them any
powers or duties, subject to the control of, and under such
conditions as, the executive director may prescribe;

(6) with the approval of the board, contract for the
services of an approved actuary, professional management
services, and any other consulting services as necessary to
fulfill the purposes of this chapter. All contracts are subject
to chapter 16C. The commissioner of administration shall not
approve, and the association shall not enter into, any contract
to provide lobbying services or legislative advocacy of any
kind. Any approved actuary retained by the executive director
shall function as the actuarial advisor of the board and the
executive director and may perform actuarial valuations and
experience studies to supplement those performed by the actuary
retained under section 356.214. Any supplemental actuarial
valuations or experience studies shall be filed with the
executive director of the Legislative Commission on Pensions and
Retirement. Copies of professional management survey reports
shall be transmitted to the secretary of the senate, the chief
clerk of the house of representatives, and the Legislative
Reference Library as provided by section 3.195, and to the
executive director of the commission at the same time as reports
are furnished to the board. Only management firms experienced
in conducting management surveys of federal, state, or local
public retirement systems shall be qualified to contract with
the director hereunder;

(7) with the approval of the board provide in-service
training for the employees of the association;

(8) make refunds of accumulated contributions to former
members and to the designated beneficiary, surviving spouse,
legal representative or next of kin of deceased members or
deceased former members, as provided in this chapter;

(9) determine the amount of the annuities and disability
benefits of members covered by the association and authorize
payment of the annuities and benefits beginning as of the dates
on which the annuities and benefits begin to accrue, in
accordance with the provisions of this chapter;

(10) pay annuities, refunds, survivor benefits, salaries,
and necessary operating expenses of the association;

(11) prepare and submit to the board and the legislature an
annual financial report covering the operation of the
association, as required by section 356.20;

(12) prepare and submit biennial and annual budgets to the
board for its approval and submit the approved budgets to the
Department of Finance for approval by the commissioner;

(13) reduce all or part of the accrued interest payable
under section 353.27, subdivisions 12, 12a, and 12b, or 353.28,
subdivision 5, upon receipt of proof by the association of an
unreasonable processing delay or other extenuating circumstances
of the employing unit. The executive director shall prescribe
and submit for approval by the board the conditions under which
such interest may be reduced; and

(14) with the approval of the board, perform such other
duties as may be required for the administration of the
association and the other provisions of this chapter and for the
transaction of its business.

Sec. 6.

Minnesota Statutes 2004, section 354.06,
subdivision 2, is amended to read:

Subd. 2.

President; executive director.

The board shall
annually elect one of its members as president. It shall elect
an executive director, whose salary shall be deleted text begin as deleted text end new text begin no higher than
new text end provided by section 15A.0815 new text begin , subdivision 3 new text end . The salary of the
assistant executive director who shall be in the unclassified
service, shall be set in accordance with section 43A.18,
subdivision 3. The executive director shall serve during the
pleasure of the board and be the executive officer of the board,
with such duties as the board shall prescribe. The board shall
employ all other clerks and employees necessary to properly
administer the association. The cost and expense of
administering the provisions of this chapter shall be paid by
the association. The executive director shall be appointed by
the board on the basis of fitness, experience in the retirement
field and leadership ability. The executive director shall have
had at least five years of experience on the administrative
staff of a major retirement system.

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective July 1, 2005.
new text end