HF 1692

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 the administrative 
  1.3             provisions of the first class city teacher pension 
  1.4             funds; classifying certain data; providing for the 
  1.5             monthly payment of lump sum benefits to certain 
  1.6             retirees for first class city teacher pension funds 
  1.7             and the Minneapolis employees retirement fund; 
  1.8             providing reporting and remittance requirements; 
  1.9             granting authority to amend articles of incorporation 
  1.10            to the Minneapolis teachers retirement fund 
  1.11            association; amending Minnesota Statutes 2000, 
  1.12            sections 354A.011, subdivision 24; 354A.12, 
  1.13            subdivision 5; 354A.31, subdivision 3; 354A.35, 
  1.14            subdivision 4; and 356A.06, subdivision 5; proposing 
  1.15            coding for new law in Minnesota Statutes, chapters 13; 
  1.16            354A; and 356; repealing Minnesota Statutes 2000, 
  1.17            sections 354A.026; 356.86; and 356.865. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  [13.632] [TEACHERS RETIREMENT FUND ASSOCIATION 
  1.20  DATA; CERTAIN CITIES.] 
  1.21     Subdivision 1.  [BENEFICIARY AND SURVIVOR DATA.] The 
  1.22  following data on beneficiaries and survivors of the Minneapolis 
  1.23  teachers retirement fund association, the St. Paul teachers 
  1.24  retirement fund association, and the Duluth teachers retirement 
  1.25  fund association members are private data on individuals:  home 
  1.26  address, date of birth, direct deposit number, and tax 
  1.27  withholding data. 
  1.28     Subd. 2.  [LIMITS ON DISCLOSURE.] Required disclosure of 
  1.29  data about members, survivors, and beneficiaries is limited to 
  1.30  name, gross annuity, or benefit and type of annuity or benefit 
  1.31  awarded. 
  2.1      Sec. 2.  Minnesota Statutes 2000, section 354A.011, 
  2.2   subdivision 24, is amended to read: 
  2.3      Subd. 24.  [SALARY; COVERED SALARY.] (a) "Salary" or 
  2.4   "covered salary" means the entire compensation, upon which 
  2.5   member contributions are required and made, that is paid to a 
  2.6   teacher before any allowable reductions permitted under the 
  2.7   federal Internal Revenue Code of 1986, as amended, for employee 
  2.8   selected fringe benefits, tax sheltered annuities, deferred 
  2.9   compensation, or any combination of these items deductions for 
  2.10  deferred compensation, supplemental retirement plans, or other 
  2.11  voluntary salary reduction programs. 
  2.12     (b) "Salary" does not mean: 
  2.13     (1) lump sum annual leave payments; 
  2.14     (2) lump sum wellness and sick leave payments; 
  2.15     (3) payments in lieu of any employer-paid group insurance 
  2.16  coverage employer paid amounts used by an employee toward the 
  2.17  cost of insurance coverage, employer-paid fringe benefits, 
  2.18  flexible spending accounts, cafeteria plans, health care expense 
  2.19  accounts, day care expenses, or any payments in lieu of any 
  2.20  employer-paid group insurance coverage, including the difference 
  2.21  between single and family rates that may be paid to a member 
  2.22  with single coverage and certain amounts determined by the 
  2.23  executive secretary or director to be ineligible; 
  2.24     (4) payments for the difference between single and family 
  2.25  premium rates that may be paid to a member with single 
  2.26  coverage any form of payment made in lieu of any other 
  2.27  employer-paid fringe benefit or expense; 
  2.28     (5) employer-paid fringe benefits including, but not 
  2.29  limited to, flexible spending accounts, cafeteria plans, health 
  2.30  care expense accounts, day care expenses, or automobile 
  2.31  allowances and expenses any form of severance payments; 
  2.32     (6) workers' compensation payments; 
  2.33     (7) disability insurance payments including self-insured 
  2.34  disability payments; 
  2.35     (6) (8) payments to school principals and all other 
  2.36  administrators for services in addition to the normal work year 
  3.1   contract if these additional services are performed on an 
  3.2   extended duty day, Saturday, Sunday, holiday, annual leave day, 
  3.3   sick leave day, or any other nonduty day; 
  3.4      (7) (9) payments under section 356.24, subdivision 1, 
  3.5   clause (4)(ii); and 
  3.6      (8) (10) payments made under section 122A.40, subdivision 
  3.7   12, except for payments for sick leave accumulated under the 
  3.8   provisions of a uniform school district policy that applies 
  3.9   equally to all similarly situated persons in the district. 
  3.10     Sec. 3.  [354A.107] [PAYMENT ACCEPTANCE ALLOWED.] 
  3.11     Payment for eligible service credit or repayment of a prior 
  3.12  refund or payment for an eligible leave of absence by a member 
  3.13  of the Minneapolis teachers retirement fund association, the St. 
  3.14  Paul teachers retirement fund association, or the Duluth 
  3.15  teachers retirement fund association, may be made with funds 
  3.16  distributed from a plan qualified under section 401(a), 403(a), 
  3.17  403(b), or 457(b) of the federal Internal Revenue Code of 1986, 
  3.18  as amended from time to time, or funds distributed from an 
  3.19  individual retirement account used solely in a manner eligible 
  3.20  for treatment as a nontaxable rollover under applicable law.  
  3.21  The rollover must be separately accounted for as member 
  3.22  contributions not previously taxed.  Before accepting any 
  3.23  transfers to which this section applies, the executive secretary 
  3.24  or director must require the member to provide written 
  3.25  documentation that the amounts to be transferred are eligible 
  3.26  for tax free rollover and qualify for that treatment under the 
  3.27  federal Internal Revenue Code of 1986. 
  3.28     Sec. 4.  Minnesota Statutes 2000, section 354A.12, 
  3.29  subdivision 5, is amended to read: 
  3.30     Subd. 5.  [EMPLOYEE REPORTING AND REMITTANCE REQUIREMENTS.] 
  3.31  (a) Each school district employing unit shall provide to the 
  3.32  appropriate teachers retirement fund association information the 
  3.33  following member data regarding all new or returning 
  3.34  employees on a form provided by the executive secretary or 
  3.35  director before the employee's first payroll date. in a format 
  3.36  approved by the executive secretary or director.  Data changes 
  4.1   and the dates of those changes must be reported to the 
  4.2   association on an ongoing basis for the payroll cycle in which 
  4.3   they occur.  Data on the member includes: 
  4.4      (1) legal name, address, date of birth, association member 
  4.5   number, employer-assigned employee number, and social security 
  4.6   number; 
  4.7      (2) association status, including, but not limited to, 
  4.8   basic, coordinated, exempt annuitant, exempt technical college 
  4.9   teacher, and exempt independent contractor or consultant; 
  4.10     (3) employment status, including, but not limited to, full 
  4.11  time, part time, intermittent, substitute, or part-time 
  4.12  mobility; 
  4.13     (4) employment position, including, but not limited to, 
  4.14  teacher, superintendent, principal, administrator, or other; 
  4.15     (5) employment activity, including, but not limited to, 
  4.16  hire, termination, resumption of employment, disability, or 
  4.17  death; 
  4.18     (6) leaves of absence; and 
  4.19     (7) other information as may be required by the association.
  4.20     (b) Each employing unit shall provide the following data to 
  4.21  the appropriate association for each payroll cycle in a format 
  4.22  approved by the executive secretary or director: 
  4.23     (1) association member number; 
  4.24     (2) employer-assigned employee number; 
  4.25     (3) social security number; 
  4.26     (4) amount of each salary deduction; 
  4.27     (5) amount of salary as defined in section 354A.011, 
  4.28  subdivision 24, from which each deduction was made; 
  4.29     (6) reason for payment; 
  4.30     (7) service credit; 
  4.31     (8) the beginning and ending dates of the payroll period 
  4.32  covered and the date of actual payment; 
  4.33     (9) fiscal year of salary earnings; 
  4.34     (10) total remittance amount including employee, employer, 
  4.35  and employer additional contributions; and 
  4.36     (11) other information as may be required by the 
  5.1   association. 
  5.2      (c) On or before August 1 each year, each employing unit 
  5.3   must report to the appropriate association giving an itemized 
  5.4   summary for the preceding 12 months of the total amount withheld 
  5.5   from the salaries of teachers for deductions and all other 
  5.6   information required by the association. 
  5.7      (d) An employing unit that does not comply with the 
  5.8   reporting requirements under this section shall pay a fine of $5 
  5.9   per calendar day until the association receives the required 
  5.10  member data. 
  5.11     (e) An employing unit shall remit all amounts due to the 
  5.12  association and shall furnish for each pay period an itemized 
  5.13  statement indicating the total amount due and transmitted with 
  5.14  any other information required by the association.  All amounts 
  5.15  due and other employer obligations not remitted within 30 days 
  5.16  of notification by the association must be certified to the 
  5.17  commissioner of finance who shall deduct the amount from any 
  5.18  state aid or appropriation amount applicable to the employing 
  5.19  unit. 
  5.20     Sec. 5.  Minnesota Statutes 2000, section 354A.31, 
  5.21  subdivision 3, is amended to read: 
  5.22     Subd. 3.  [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A 
  5.23  RETIREMENT ANNUITY.] (a) Any person who retired and is receiving 
  5.24  a coordinated program retirement annuity under the provisions of 
  5.25  sections 354A.31 to 354A.41 or any person receiving a basic 
  5.26  program retirement annuity under the governing sections in the 
  5.27  articles of incorporation or bylaws and who has resumed teaching 
  5.28  service for the school district in which the teachers retirement 
  5.29  fund association exists is entitled to continue to receive 
  5.30  retirement annuity payments, except that annuity payments must 
  5.31  be reduced during the calendar year immediately following the 
  5.32  calendar year in which the person's income from the teaching 
  5.33  service is in an amount greater than the annual maximum earnings 
  5.34  allowable for that age for the continued receipt of full benefit 
  5.35  amounts monthly under the federal old age, survivors, and 
  5.36  disability insurance program as set by the secretary of health 
  6.1   and human services under United States Code, title 42, section 
  6.2   403.  The amount of the reduction must be one-third the amount 
  6.3   in excess of the applicable reemployment income maximum 
  6.4   specified in this subdivision and must be deducted from the 
  6.5   annuity payable for the calendar year immediately following the 
  6.6   calendar year in which the excess amount was earned.  If the 
  6.7   person has not yet reached the minimum age for the receipt of 
  6.8   social security benefits, the maximum earnings for the person 
  6.9   must be equal to the annual maximum earnings allowable for the 
  6.10  minimum age for the receipt of social security benefits. 
  6.11     (b) If the person is retired for only a fractional part of 
  6.12  the calendar year during the initial year of retirement, the 
  6.13  maximum reemployment income specified in this subdivision must 
  6.14  be prorated for that calendar year. 
  6.15     (c) After a person has reached the age of 70, no 
  6.16  reemployment income maximum is applicable regardless of the 
  6.17  amount of any compensation received for teaching service for the 
  6.18  school district in which the teachers retirement fund 
  6.19  association exists.  
  6.20     (d) The amount of the retirement annuity reduction must be 
  6.21  handled or disposed of as provided in section 356.58. 
  6.22     (e) For the purpose of this subdivision, income from 
  6.23  teaching service includes:  (i) all income for services 
  6.24  performed as a consultant or independent contractor; or income 
  6.25  resulting from working with the school district in any capacity; 
  6.26  and (ii) the greater of either the income received or an amount 
  6.27  based on the rate paid with respect to an administrative 
  6.28  position, consultant, or independent contractor in the school 
  6.29  district in which the teachers retirement fund association 
  6.30  exists and at the same level as the position occupied by the 
  6.31  person who resumes teaching service. 
  6.32     (f) On or before February 15 of each year, each employing 
  6.33  unit shall report to the teachers retirement fund association 
  6.34  the amount of postretirement income as defined in this section, 
  6.35  earned as a teacher, consultant, or independent contractor 
  6.36  during the previous calendar year by each retiree of a teachers 
  7.1   retirement fund association for teaching service performed after 
  7.2   retirement.  The report shall be in a format approved by the 
  7.3   executive secretary or director. 
  7.4      Sec. 6.  Minnesota Statutes 2000, section 354A.35, 
  7.5   subdivision 4, is amended to read: 
  7.6      Subd. 4.  [PAYMENT OF MINIMAL REFUND AND BENEFIT AMOUNTS.] 
  7.7   If a coordinated member or former coordinated member dies 
  7.8   without having designated a beneficiary or if the designated 
  7.9   beneficiary dies without there existing any other designated 
  7.10  beneficiary and prior to making application for the refund 
  7.11  credited to the deceased coordinated member or coordinated 
  7.12  former member, and if the amount of the refund does not 
  7.13  exceed $500 $1,500, the board in its discretion may, in absence 
  7.14  of probate proceedings, make payment 90 days after the date of 
  7.15  death of the coordinated member or former coordinated member to 
  7.16  the surviving spouse of the deceased coordinated member or 
  7.17  former coordinated member, or if none, to the next of kin as 
  7.18  determined under the laws of descent of the state.  A payment 
  7.19  under this subdivision shall be a bar to recovery by any other 
  7.20  person or persons.  Any retirement annuity in any amount which 
  7.21  has accrued at the time of the death of a coordinated retiree 
  7.22  may be paid by the board in its discretion using the procedure 
  7.23  set forth in this subdivision.  
  7.24     Sec. 7.  [356.866] [CONVERSION OF LUMP SUM POSTRETIREMENT 
  7.25  AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.] 
  7.26     Subdivision 1.  [LUMP SUM POSTRETIREMENT PAYMENT 
  7.27  CONVERSION.] For benefits paid after December 31, 2001, to 
  7.28  eligible persons pursuant to Minnesota Statutes 2000, sections 
  7.29  356.86 and 356.865, the amount of the most recent lump sum 
  7.30  benefit payable to an eligible recipient under Minnesota 
  7.31  Statutes 2000, sections 356.86 and 356.865, shall be divided by 
  7.32  12 and the result shall be added to the monthly annuity or 
  7.33  benefit otherwise payable to an eligible recipient and become a 
  7.34  permanent part of the benefit recipient's pension and included 
  7.35  in any pension benefit subject to future increases. 
  7.36     Subd. 2.  [TRANSFER OF REQUIRED RESERVES TO MINNESOTA 
  8.1   POSTRETIREMENT INVESTMENT FUND.] Public employee retirement 
  8.2   funds participating in the state board of investment 
  8.3   postretirement investment fund shall transfer the required 
  8.4   reserves for the postretirement conversion under subdivision 1 
  8.5   to the postretirement investment fund by January 31, 2002. 
  8.6      Sec. 8.  Minnesota Statutes 2000, section 356A.06, 
  8.7   subdivision 5, is amended to read: 
  8.8      Subd. 5.  [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] The 
  8.9   chief administrative officer of a covered pension plan, with 
  8.10  respect to investments made by the plan, and the executive 
  8.11  director of the state board of investment, with respect to 
  8.12  investments of plan assets made by the board, shall annually 
  8.13  disclose in writing the recipients of investment business placed 
  8.14  with or investment commissions allocated among commercial banks, 
  8.15  investment bankers, brokerage organizations, or other investment 
  8.16  managers.  The disclosure document must be prepared within 60 
  8.17  days after the close of the fiscal year of the plan and must be 
  8.18  available for public inspection during regular office hours at 
  8.19  the office of the plan.  The disclosure document must also be 
  8.20  filed with the executive director of the legislative commission 
  8.21  on pensions and retirement within 90 days after the close of the 
  8.22  fiscal year of the plan.  For the state board of investment and 
  8.23  a first class city teacher pension fund, a disclosure document 
  8.24  included as part of a regular annual report of the board or the 
  8.25  first class city teacher pension fund when filed with the 
  8.26  executive director of the legislative commission on pensions and 
  8.27  retirement is considered to have been filed on a timely basis. 
  8.28     Sec. 9.  [AUTHORITY GRANTED TO MINNEAPOLIS TEACHERS 
  8.29  RETIREMENT FUND TO AMEND BASIC MEMBER DISABILITY BENEFIT 
  8.30  FORMULA.] 
  8.31     Subdivision 1.  [AUTHORITY GRANTED TO AMEND ARTICLES.] In 
  8.32  accordance with Minnesota Statutes, section 354A.12, subdivision 
  8.33  4, approval is granted for the Minneapolis teachers retirement 
  8.34  fund association to amend its articles of incorporation to 
  8.35  change the disability benefit formula for a basic member to an 
  8.36  amount equal to the normal basic retirement annuity computed 
  9.1   pursuant to the articles of incorporation based on allowable 
  9.2   service credited to the date of disability but without any 
  9.3   reduction for the commencement of the benefit prior to the 
  9.4   attainment of normal retirement age or at least 30 years of 
  9.5   service. 
  9.6      Subd. 2.  [AUTHORITY TO AMEND ARTICLES AND BYLAWS.] In 
  9.7   accordance with Minnesota Statutes, section 354A.12, subdivision 
  9.8   4, approval is granted for the Minneapolis teachers retirement 
  9.9   fund association to amend its articles of incorporation in the 
  9.10  manner necessary to transfer the required reserves for the 
  9.11  postretirement conversion under section 7 to its annuity reserve 
  9.12  fund. 
  9.13     Subd. 3.  [AUTHORITY GRANTED TO CHANGE SALARY BASE FOR 
  9.14  MEDICAL LEAVE BUY BACK.] In accordance with Minnesota Statutes, 
  9.15  section 354A.12, subdivision 4, approval is granted for the 
  9.16  Minneapolis teachers retirement fund association to amend its 
  9.17  articles of incorporation, article 20.1(J) to use the same 
  9.18  salary base for determining the payment amount for medical leave 
  9.19  buy backs for the members of the basic plan as is used for the 
  9.20  coordinated plan members under Minnesota Statutes, section 
  9.21  354A.096. 
  9.22     Sec. 10.  [REPEALER.] 
  9.23     (a) Minnesota Statutes 2000, section 354A.026, is repealed. 
  9.24     (b) Minnesota Statutes 2000, sections 356.86 and 356.865, 
  9.25  are repealed. 
  9.26     Sec. 11.  [EFFECTIVE DATE.] 
  9.27     (a) Sections 1, 2, and 4 to 9, and 10, paragraph (a), are 
  9.28  effective July 1, 2001. 
  9.29     (b) Section 3 is effective the day following final 
  9.30  enactment. 
  9.31     (c) Section 10, paragraph (b), is effective January 1, 2002.