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HF 2179

as introduced - 87th Legislature (2011 - 2012) Posted on 02/09/2012 02:15pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to retirement; statewide and major local defined benefit retirement plans;
requiring unclassified state employees retirement program coverage for overtime
salary; amending Minnesota Statutes 2010, sections 352.01, subdivision 13;
352.04, subdivision 4; 352D.02, subdivision 1, by adding a subdivision; 352D.04,
subdivision 2; 353.01, subdivision 10; 353.27, subdivision 4; 354.05, subdivision
35; 354.52, subdivision 4b; 354A.011, subdivision 24; 354A.12, subdivision 5;
490.121, by adding a subdivision; 490.124, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 356.

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

Section 1.

Minnesota Statutes 2010, section 352.01, subdivision 13, is amended to read:


Subd. 13.

Salary.

(a) Subject to the limitations of section 356.611, "salary" means
wages, or other periodic compensation, paid to an employee before deductions for
deferred compensation, supplemental retirement plans, or other voluntary salary reduction
programs.

(b) "Salary" does not include:

(1) lump-sum sick leave payments;

(2) severance payments;

(3) lump-sum annual leave payments and overtime payments made at the time
of separation from state service;

(4) payments in lieu of any employer-paid group insurance coverage, including the
difference between single and family rates that may be paid to an employee with single
coverage;

(5) payments made as an employer-paid fringe benefit;

(6) workers' compensation payments;

(7) employer contributions to a deferred compensation or tax-sheltered annuity
program; deleted text begin and
deleted text end

(8) amounts contributed under a benevolent vacation and sick leave donation
programdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (9) amounts of irregular compensation as defined in section 356.307 on which
employee and employer contributions were transmitted to the unclassified state employees
retirement program as provided in section 352D.02, subdivision 7.
new text end

(c) Amounts provided to an employee by the employer through a grievance
proceeding or a legal settlement are salary only if the settlement is reviewed by the
executive director and the amounts are determined by the executive director to be
consistent with paragraph (a) and prior determinations.

Sec. 2.

Minnesota Statutes 2010, section 352.04, subdivision 4, is amended to read:


Subd. 4.

Payroll deductions.

new text begin (a) new text end The head of each department shall have employee
contributions deducted from the salary of each employee covered by the system on
every payroll abstract and shall approve one voucher payable to the commissioner of
management and budget for the aggregate amount deducted on the payroll abstract.

new text begin (b)new text end Deductions from salaries of employees paid direct by any department, institution,
or agency of the state must be made by the officer or employee authorized by law to
pay the salaries. The head of any department or agency having authority to appoint any
employee who receives fees as compensation or who receives compensation on federal
payrolls shall collect as the required employee contribution the applicable amounts
required in subdivision 2.

new text begin (c)new text end Deductions from salary and amounts collected must be remitted to the director
with a statement showing the new text begin total new text end amount of earnings or fees, new text begin the amount of irregular
compensation,
new text end and in the case of fees, the number of transactions, and the amount of each
of the deductions and collections and the names of the employees on whose account
they have been made.

Sec. 3.

Minnesota Statutes 2010, section 352D.02, subdivision 1, is amended to read:


Subdivision 1.

Coverage.

(a) Employees enumerated in paragraph (c), clauses (2),
(3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or
Metropolitan Council and are eligible for coverage under the general state employees
retirement plan under chapter 352, are participants in the unclassified program under this
chapter unless the employee gives notice to the executive director of the Minnesota State
Retirement System within one year following the commencement of employment in the
unclassified service that the employee desires coverage under the general state employees
retirement plan. For the purposes of this chapter, an employee who does not file notice
with the executive director is deemed to have exercised the option to participate in the
unclassified program.

(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
program under this chapter unless the person was eligible to elect different coverage under
section 3A.07 and elected retirement coverage by the applicable alternative retirement
plan. Persons referenced in paragraph (c), clause (15), are participants in the unclassified
program under this chapter for judicial employment in excess of the service credit limit in
section 490.121, subdivision 22.

(c) Enumerated employees and referenced persons are:

(1) the governor, the lieutenant governor, the secretary of state, the state auditor,
and the attorney general;

(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
of State, State Auditor, Attorney General;

(3) an employee of the State Board of Investment;

(4) the head of a department, division, or agency created by statute in the unclassified
service, an acting department head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;

(5) a member of the legislature;

(6) a full-time unclassified employee of the legislature or a commission or agency of
the legislature who is appointed without a limit on the duration of the employment or a
temporary legislative employee having shares in the supplemental retirement fund as a
result of former employment covered by this chapter, whether or not eligible for coverage
under the Minnesota State Retirement System;

(7) a person who is employed in a position established under section 43A.08,
subdivision 1
, clause (3), or in a position authorized under a statute creating or establishing
a department or agency of the state, which is at the deputy or assistant head of department
or agency or director level;

(8) the regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions as designated
by the council, all of which may not exceed 27 positions at the council and the chair;

(9) the executive director, associate executive director, and not to exceed nine
positions of the Minnesota Office of Higher Education in the unclassified service, as
designated by the Minnesota Office of Higher Education before January 1, 1992, or
subsequently redesignated with the approval of the board of directors of the Minnesota
State Retirement System, unless the person has elected coverage by the individual
retirement account plan under chapter 354B;

(10) the clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota, the state court administrator and judicial district
administrators;

(11) the chief executive officers of correctional facilities operated by the Department
of Corrections and of hospitals and nursing homes operated by the Department of Human
Services;

(12) an employee whose principal employment is at the state ceremonial house;

(13) an employee of the Agricultural Utilization Research Institute;

(14) an employee of the State Lottery who is covered by the managerial plan
established under section 43A.18, subdivision 3;

(15) a judge who has exceeded the service credit limit in section 490.121,
subdivision 22
;

(16) an employee of Enterprise Minnesota, Inc.;

(17) a person employed by the Minnesota State Colleges and Universities as faculty
or in an eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, who was employed by the former state university or the former community
college system before May 1, 1995, and elected unclassified program coverage prior to
May 1, 1995; deleted text begin and
deleted text end

(18) a person employed by the Minnesota State Colleges and Universities who
was employed in state service before July 1, 1995, who subsequently is employed in an
eligible unclassified administrative position as defined in section 354B.20, subdivision 6,
and who elects coverage by the unclassified programdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (19) a person with regular retirement coverage by a defined benefit retirement
plan who receives irregular compensation as defined in section 356.307 with respect
to the employee or member contribution and employer contribution on that irregular
compensation.
new text end

Sec. 4.

Minnesota Statutes 2010, section 352D.02, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Coverage for irregular compensation. new text end

new text begin (a) A person referenced in
subdivision 1, paragraph (c), clause (19), is a participant in the unclassified program by
virtue of the receipt of irregular compensation as defined in section 356.307 and the
transmission of employee or member contributions and employer contributions with
respect to that irregular compensation to the program for the purchase of shares in the
Minnesota supplemental investment fund.
new text end

new text begin (b) The chief administrative officer of the defined benefit retirement plan that
provides the primary defined benefit retirement coverage shall transmit the employee or
member and employer contributions associated with the irregular compensation within
five business days of receipt.
new text end

new text begin (c) A person covered by the unclassified program under subdivision 1, paragraph
(c), clause (19), and this subdivision is not eligible for a transfer of unclassified program
coverage to the general state employees retirement plan under subdivision 3.
new text end

Sec. 5.

Minnesota Statutes 2010, section 352D.04, subdivision 2, is amended to read:


Subd. 2.

Contribution rates.

(a) The money used to purchase shares under this
section is the employee and employer contributions provided in this subdivision.

(b) The employee contribution is an amount equal to the percent of salary specified
in section 352.04, subdivision 2, or 352.045, subdivision 3.

(c) The employer contribution is an amount equal to six percent of salary.

(d) For members of the legislature, the contributions under this subdivision also must
be made on per diem payments received during a regular or special legislative session, but
may not be made on per diem payments received outside of a regular or special legislative
session, on the additional compensation attributable to a leadership position under section
3.099, subdivision 3, living expense payments under section 3.101, or special session
living expense payments under section 3.103.

(e) For a judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
of salary, and there is no employer contribution.

(f) new text begin For a person covered by the unclassified program under section 352D.02,
subdivision 1, paragraph (c), clause (19), the employee contribution is an amount equal
to the percent of the irregular compensation as defined in section 356.307 that is the
employee or member contribution rate applicable to the person's defined benefit retirement
plan coverage, and the employer contribution is an amount equal to the percent of the
irregular compensation as defined in section 356.307 that is the employer contribution rate
applicable to the person's defined benefit retirement plan coverage.
new text end

new text begin (g) new text end These contributions must be made in the manner provided in section 352.04,
subdivisions 4, 5, and 6.

Sec. 6.

Minnesota Statutes 2010, section 353.01, subdivision 10, is amended to read:


Subd. 10.

Salary.

(a) Subject to the limitations of section 356.611, "salary" means:

(1) the periodic compensation of a public employee, before deductions for deferred
compensation, supplemental retirement plans, or other voluntary salary reduction
programs, and also means "wages" and includes net income from fees;

(2) for a public employee who is covered by a supplemental retirement plan under
section 356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions
be made by the employer, the contribution to the applicable supplemental retirement plan
when an agreement between the parties establishes that the contribution will either result
in a mandatory reduction of employees' wages through payroll withholdings, or be made
in lieu of an amount that would otherwise be paid as wages; and

(3) for a public employee who has prior service covered by a local police or
firefighters relief association that has consolidated with the Public Employees Retirement
Association or to which section 353.665 applies and who has elected coverage either
under the public employees police and fire fund benefit plan under section 353A.08
following the consolidation or under section 353.665, subdivision 4, the rate of salary
upon which member contributions to the special fund of the relief association were made
prior to the effective date of the consolidation as specified by law and by bylaw provisions
governing the relief association on the date of the initiation of the consolidation procedure
and the actual periodic compensation of the public employee after the effective date of
consolidation.

(b) Salary does not mean:

(1) the fees paid to district court reporters, unused annual vacation or sick leave
payments, in lump-sum or periodic payments, severance payments, reimbursement of
expenses, lump-sum settlements not attached to a specific earnings period, or workers'
compensation payments;

(2) employer-paid amounts used by an employee toward the cost of insurance
coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or any payments in lieu of any employer-paid
group insurance coverage, including the difference between single and family rates that
may be paid to a member with single coverage and certain amounts determined by the
executive director to be ineligible;

(3) the amount equal to that which the employing governmental subdivision would
otherwise pay toward single or family insurance coverage for a covered employee when,
through a contract or agreement with some but not all employees, the employer:

(i) discontinues, or for new hires does not provide, payment toward the cost of the
employee's selected insurance coverages under a group plan offered by the employer;

(ii) makes the employee solely responsible for all contributions toward the cost of
the employee's selected insurance coverages under a group plan offered by the employer,
including any amount the employer makes toward other employees' selected insurance
coverages under a group plan offered by the employer; and

(iii) provides increased salary rates for employees who do not have any
employer-paid group insurance coverages;

(4) except as provided in section 353.86 or 353.87, compensation of any kind paid to
volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
35 or 36;

(5) the amount of compensation that exceeds the limitation provided in section
356.611; deleted text begin and
deleted text end

(6) amounts paid by a federal or state grant for which the grant specifically
prohibits grant proceeds from being used to make pension plan contributions, unless the
contributions to the plan are made from sources other than the federal or state grantdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (7) for members of the general employees retirement plan and the local government
correctional retirement plan, the amount of irregular compensation as defined in
section 356.307 on which employee and employer contributions were transmitted to
the unclassified state employees retirement program as provided in section 352D.02,
subdivision 7.
new text end

(c) Amounts provided to an employee by the employer through a grievance
proceeding or a legal settlement are salary only if the settlement is reviewed by the
executive director and the amounts are determined by the executive director to be
consistent with paragraph (a) and prior determinations.

Sec. 7.

Minnesota Statutes 2010, section 353.27, subdivision 4, is amended to read:


Subd. 4.

Employer reporting requirements; contributions; member status.

(a) A representative authorized by the head of each department shall deduct employee
contributions from the salary of each public employee who qualifies for membership in
the general employees retirement plan of the Public Employees Retirement Association
or in the public employees police and fire retirement plan under this chapter or chapter
353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever
is applicable, that is in effect on the date the salary is paid. The employer representative
must also remit payment in a manner prescribed by the executive director for the
aggregate amount of the employee contributions and the required employer contributions
to be received by the association within 14 calendar days after each pay date. If the
payment is less than the amount required, the employer must pay the shortage amount to
the association and collect reimbursement of any employee contribution shortage paid
on behalf of a member through subsequent payroll withholdings from the wages of the
employee. Payment of shortages in employee contributions and associated employer
contributions, if applicable, must include interest at the rate specified in section 353.28,
subdivision 5
, if not received within 30 days following the date the amount was initially
due under this section.

(b) The head of each department or the person's designee shall submit for each
pay period to the association a salary deduction report in the format prescribed by the
executive director. The report must be received by the association within 14 calendar
days after each pay date or the employer may be assessed a fine of $5 per calendar day
until the association receives the required data. Data required as part of salary deduction
reporting must include, but are not limited to:

(1) the legal names and Social Security numbers of employees who are members;

(2) the amount of each employee's salary deduction;

(3) new text begin the total amount of compensation;
new text end

new text begin (4) new text end the amount of salary defined in section 353.01, subdivision 10, earned in the
pay period from which each deduction was made and the salary amount earned by a
reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or
by a disabled member under section 353.33, subdivision 7 or 7a;

new text begin (5) the amount of irregular compensation;
new text end

deleted text begin (4)deleted text end new text begin (6) new text end the beginning and ending dates of the payroll period covered and the date of
actual payment; and

deleted text begin (5)deleted text end new text begin (7) new text end adjustments or corrections covering past pay periods as authorized by the
executive director.

(c) Employers must furnish the data required for enrollment for each new or
reinstated employee who qualifies for membership in the general employees retirement
plan of the Public Employees Retirement Association or in the public employees police
and fire retirement plan in the format prescribed by the executive director. The required
enrollment data on new members must be submitted to the association prior to or
concurrent with the submission of the initial employee salary deduction. Also, the
employer shall report to the association all member employment status changes, such as
leaves of absence, terminations, and death, and shall report the effective dates of those
changes, on an ongoing basis for the payroll cycle in which they occur. If an employer
fails to comply with the reporting requirements under this paragraph, the executive
director may assess a fine of $25 for each failure if the association staff has notified the
employer of the noncompliance and attempted to obtain the missing data or form from the
employer for a period of more than three months.

(d) The employer shall furnish data, forms, and reports as may be required by
the executive director for proper administration of the retirement system. Before
implementing new or different computerized reporting requirements, the executive
director shall give appropriate advance notice to governmental subdivisions to allow time
for system modifications.

(e) Notwithstanding paragraph (a), the executive director may provide for less
frequent reporting and payments for small employers.

(f) The executive director may establish reporting procedures and methods as
required to review compliance by employers with the salary and contribution reporting
requirements in this chapter. A review of the payroll records of a participating employer
may be conducted by the association on a periodic basis or as a result of concerns known
to exist within a governmental subdivision. An employer under review must extract
requested data and provide records to the association after receiving reasonable advanced
notice. Failure to provide requested information or materials will result in the employer
being liable to the association for any expenses associated with a field audit, which may
include staff salaries, administrative expenses, and travel expenses.

Sec. 8.

Minnesota Statutes 2010, section 354.05, subdivision 35, is amended to read:


Subd. 35.

Salary.

(a) Subject to the limitations of section 356.611, "salary"
means the periodic compensation, upon which member contributions are required before
deductions for deferred compensation, supplemental retirement plans, or other voluntary
salary reduction programs.

(b) "Salary" does not mean:

(1) lump-sum annual leave payments;

(2) lump-sum wellness and sick leave payments;

(3) employer-paid amounts used by an employee toward the cost of insurance
coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or any payments in lieu of any employer-paid
group insurance coverage, including the difference between single and family rates that
may be paid to a member with single coverage and certain amounts determined by the
executive director to be ineligible;

(4) any form of payment made in lieu of any other employer-paid fringe benefit or
expense;

(5) any form of severance payments;

(6) workers' compensation payments;

(7) disability insurance payments, including self-insured disability payments;

(8) payments to school principals and all other administrators for services that are
in addition to the normal work year contract if these additional services are performed
on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
any other nonduty day;

(9) payments under section 356.24, subdivision 1, clause (4); deleted text begin and
deleted text end

(10) payments made under section 122A.40, subdivision 12, except for payments for
sick leave that are accumulated under the provisions of a uniform school district policy
that applies equally to all similarly situated persons in the districtdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (11) amounts of irregular compensation as defined in section 356.307 on which
employee and employer contributions were transmitted to the unclassified state employees
retirement program as provided in section 352D.02, subdivision 7.
new text end

(c) Amounts provided to an employee by the employer through a grievance
proceeding or a legal settlement are salary only if the settlement is reviewed by the
executive director and the amounts are determined by the executive director to be
consistent with paragraph (a) and prior determinations.

Sec. 9.

Minnesota Statutes 2010, section 354.52, subdivision 4b, is amended to read:


Subd. 4b.

Payroll cycle reporting requirements.

An employing unit shall provide
the following data to the association for payroll warrants on an ongoing basis within 14
calendar days after the date of the payroll warrant in a format prescribed by the executive
director:

(1) association member number;

(2) employer-assigned employee number;

(3) Social Security number;

(4) amount of each salary deduction;

(5) new text begin amount of total compensation;
new text end

new text begin (6) new text end amount of salary as defined in section 354.05, subdivision 35, from which each
deduction was made;

new text begin (7) amount of irregular compensation;
new text end

deleted text begin (6)deleted text end new text begin (8) new text end reason for payment;

deleted text begin (7)deleted text end new text begin (9) new text end service credit;

deleted text begin (8)deleted text end new text begin (10) new text end the beginning and ending dates of the payroll period covered and the date
of actual payment;

deleted text begin (9)deleted text end new text begin (11) new text end fiscal year of salary earnings;

deleted text begin (10)deleted text end new text begin (12) new text end total remittance amount including employee, employer, and additional
employer contributions;

deleted text begin (11)deleted text end new text begin (13) new text end reemployed annuitant salary under section 354.44, subdivision 5; and

deleted text begin (12)deleted text end new text begin (14) new text end other information as may be required by the executive director.

Sec. 10.

Minnesota Statutes 2010, section 354A.011, subdivision 24, is amended to
read:


Subd. 24.

Salary; covered salary.

(a) Subject to the limitations of section 356.611,
"salary" or "covered salary" means the entire compensation, upon which member
contributions are required and made, that is paid to a teacher before deductions for
deferred compensation, supplemental retirement plans, or other voluntary salary reduction
programs.

(b) "Salary" does not mean:

(1) lump-sum annual leave payments;

(2) lump-sum wellness and sick leave payments;

(3) employer-paid amounts used by an employee toward the cost of insurance
coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or any payments in lieu of any employer-paid
group insurance coverage, including the difference between single and family rates that
may be paid to a member with single coverage, and certain amounts determined by the
executive secretary or director to be ineligible;

(4) any form of payment that is made in lieu of any other employer-paid fringe
benefit or expense;

(5) any form of severance payments;

(6) workers' compensation payments;

(7) disability insurance payments, including self-insured disability payments;

(8) payments to school principals and all other administrators for services that are
in addition to the normal work year contract if these additional services are performed
on an extended duty day, Saturday, Sunday, holiday, annual leave day, sick leave day, or
any other nonduty day;

(9) payments under section 356.24, subdivision 1, clause (4)(ii); deleted text begin and
deleted text end

(10) payments made under section 122A.40, subdivision 12, except for payments for
sick leave that are accumulated under the provisions of a uniform school district policy
that applies equally to all similarly situated persons in the districtdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (11) amounts of irregular compensation as defined in section 356.307 on which
employee and employer contributions were transmitted to the unclassified state employees
retirement program as provided in section 352D.02, subdivision 7.
new text end

(c) Amounts provided to an employee by the employer through a grievance
proceeding or a legal settlement are salary only if the settlement is reviewed by the
executive director and the amounts are determined by the executive director to be
consistent with paragraph (a) and prior determinations.

Sec. 11.

Minnesota Statutes 2010, section 354A.12, subdivision 5, is amended to read:


Subd. 5.

Reporting and remittance requirements.

(a) Each employing unit shall
provide to the appropriate teachers retirement fund association the following member
data regarding all new or returning employees before the employee's first payroll date in
a format approved by the executive secretary or director. Data changes and the dates of
those changes must be reported to the association on an ongoing basis for the payroll cycle
in which they occur. Data on the member includes:

(1) legal name, address, date of birth, association member number,
employer-assigned employee number, and Social Security number;

(2) association status, including, but not limited to, basic, coordinated, exempt
annuitant, exempt technical college teacher, or exempt independent contractor or
consultant;

(3) employment status, including, but not limited to, full time, part time, intermittent,
substitute, or part-time mobility;

(4) employment position, including, but not limited to, teacher, superintendent,
principal, administrator, or other;

(5) employment activity, including, but not limited to, hire, termination, resumption
of employment, disability, or death;

(6) leaves of absence; and

(7) other information as may be required by the association.

(b) Each employing unit shall provide the following data to the appropriate
association for each payroll cycle in a format approved by the executive secretary or
director:

(1) an association member number;

(2) employer-assigned employee number;

(3) Social Security number;

(4) amount of each salary deduction;

(5) new text begin amount of total compensation;
new text end

new text begin (6) new text end amount of salary as defined in section 354A.011, subdivision 24, from which
each deduction was made;

new text begin (7) amount of irregular compensation;
new text end

deleted text begin (6)deleted text end new text begin (8) new text end reason for payment;

deleted text begin (7)deleted text end new text begin (9) new text end service credit;

deleted text begin (8)deleted text end new text begin (10) new text end the beginning and ending dates of the payroll period covered and the date
of actual payment;

deleted text begin (9)deleted text end new text begin (11) new text end fiscal year of salary earnings;

deleted text begin (10)deleted text end new text begin (12) new text end total remittance amount including employee, employer, and employer
additional contributions; and

deleted text begin (11)deleted text end new text begin (13) new text end other information as may be required by the association.

(c) On or before August 1 each year, each employing unit must report to the
appropriate association giving an itemized summary for the preceding 12 months of the
total amount that was withheld from the salaries of teachers for deductions and all other
information required by the association.

(d) An employing unit that does not comply with the reporting requirements
under this section shall pay a fine of $5 per calendar day until the association receives
the required member data.

(e) An employing unit shall remit all amounts that are due to the association and
shall furnish for each pay period an itemized statement indicating the total amount that is
due and is transmitted with any other information required by the association. All amounts
due and other employer obligations that are not remitted within 30 days of notification
by the association must be certified by the director or secretary to the commissioner of
management and budget, who shall deduct the amount from any state aid or appropriation
amount applicable to the employing unit and shall transmit the deducted amount to the
applicable association.

Sec. 12.

new text begin [356.307] IRREGULAR COMPENSATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of the defined benefit retirement plans
listed in subdivision 2, "irregular compensation" means compensation paid for overtime
services, shift differential, extracurricular services, extra duty services, uniform
allowances, employment incentives, bonuses, payments in lieu of leave time, nonduty day
services, recognition rewards, and payments in lieu of insurance coverage.
new text end

new text begin Subd. 2. new text end

new text begin Applicable retirement plans. new text end

new text begin The definition in subdivision 1 is applicable
to the following defined benefit retirement plans:
new text end

new text begin (1) general state employees retirement plan of the Minnesota State Retirement
System;
new text end

new text begin (2) correctional state employees retirement plan of the Minnesota State Retirement
System;
new text end

new text begin (3) transportation department pilots retirement plan;
new text end

new text begin (4) military affairs department personnel retirement plan;
new text end

new text begin (5) state fire marshal division fire/arson investigator retirement plan;
new text end

new text begin (6) general employees retirement plan of the Public Employees Retirement
Association;
new text end

new text begin (7) local government correctional service retirement plan of the Public Employees
Retirement Association;
new text end

new text begin (8) Teachers Retirement Association;
new text end

new text begin (9) Duluth Teachers Retirement Fund Association;
new text end

new text begin (10) St. Paul Teachers Retirement Fund Association; and
new text end

new text begin (11) judges retirement plan.
new text end

Sec. 13.

Minnesota Statutes 2010, section 490.121, is amended by adding a subdivision
to read:


new text begin Subd. 21g. new text end

new text begin Salary. new text end

new text begin "Salary" has the same meaning as the definition of the term in
section 352.01, subdivision 13.
new text end

Sec. 14.

Minnesota Statutes 2010, section 490.124, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Compensation and deduction amount requirements. new text end

new text begin The state court
administrator shall comply with the compensation and deduction reporting requirements
of section 352.04, subdivision 4, paragraph (c).
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 14 are effective July 1, 2012, and apply to compensation paid and
deductions made beginning with the first full payroll period beginning after June 30, 2012.
new text end