Minnesota Legislature
HF 2487
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:13pm
Current Version - as introduced
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A bill for an act
relating to retirement; public employees defined contribution plan; amending
eligibility to permit appointed local government officials to participate; permitting
retroactive participation; amending Minnesota Statutes 2022, sections 353D.01,
subdivision 2, by adding a subdivision; 353D.02, subdivision 1; 353D.03,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 353D.01, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Definitions. new text end
new text begin
Unless the context clearly indicates that a different meaning is
intended, the terms defined in this subdivision, for the purposes of this chapter, have the
meanings given:
new text end
new text begin
(1) "association" means the public employees retirement association;
new text end
new text begin
(2) "local government official" means a clerk, treasurer, deputy, and any other employee
of a municipality or other governmental subdivision who does not satisfy the definition of
included employee under section 353.01, subdivision 1, is not a member of the police and
fire plan under section 353.64 or the local government correctional service retirement plan
under section 353E.02, and is not a city manager as defined in section 353.028; and
new text end
new text begin
(3) "plan" means the public employees defined contribution plan.
new text end
Sec. 2.
Minnesota Statutes 2022, section 353D.01, subdivision 2, is amended to read:
Subd. 2.
Eligibility.
(a) Eligibility to participate in the deleted text begin defined contributiondeleted text end plan is
available to:
(1) new text begin any new text end elected new text begin or appointed new text end local government deleted text begin officials of a governmental subdivisiondeleted text end
new text begin official new text end who deleted text begin electdeleted text end new text begin elects new text end to participate in the plan under section 353D.02, subdivision 1, and
who, for the deleted text begin electeddeleted text end service rendered to a governmental subdivision, deleted text begin aredeleted text end new text begin is new text end not deleted text begin membersdeleted text end new text begin a
member new text end of the deleted text begin Public Employees Retirementdeleted text end association within the meaning of section
353.01, subdivision 7;
(2) physicians who, if they did not elect to participate in the plan under section 353D.02,
subdivision 2, would meet the definition of member under section 353.01, subdivision 7;
(3) basic and advanced life-support emergency medical service personnel who are
employed by any public ambulance service that elects to participate under section 353D.02,
subdivision 3;
(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker
County, or of a county rescue squad associated with Kandiyohi County, if an independent
nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency
management services, and if not affiliated with a fire department or ambulance service and
if its members are not eligible for membership in that fire department's or ambulance service's
relief association or comparable pension plan;
(5) employees of the Port Authority of the city of St. Paul who elect to participate in the
plan under section 353D.02, subdivision 5, and who are not members of the deleted text begin Public Employees
Retirementdeleted text end association under section 353.01, subdivision 7;
(6) city managers who elected to be excluded from the general employees retirement
plan of the deleted text begin Public Employees Retirementdeleted text end association under section 353.028 and who elected
to participate in the public employees defined contribution plan under section 353.028,
subdivision 3, paragraph (b);
(7) volunteer or emergency on-call firefighters serving in a municipal fire department
or an independent nonprofit firefighting corporation who are not covered by the deleted text begin public
employeesdeleted text end police and fire retirement plan and who are not covered by a volunteer firefighters
relief association and who elect to participate in the public employees defined contribution
plan;
(8) elected county sheriffs who are former members of the police and fire plan and who
are receiving a retirement annuity as provided under section 353.651; and
(9) persons deleted text begin who are excluded from membership under section 353.01, subdivision 2b,
paragraph (a), clause (23)deleted text end new text begin appointed to serve on a board or commission of a governmental
subdivision or an instrumentality thereofnew text end .
deleted text begin
(b) For purposes of this chapter, an elected local government official includes a person
appointed to fill a vacancy in an elective office. Service as an elected local government
official only includes service for the governmental subdivision for which the official was
elected by the public at large. Service as an elected local government official ceases and
eligibility to participate terminates when the person ceases to be an elected official. An
elected local government official does not include an elected county sheriff who must be a
member of the police and fire plan as provided under chapter 353.
deleted text end
deleted text begin (c)deleted text end new text begin (b) new text end Individuals otherwise eligible to participate in the plan under this subdivision
who are currently covered by a public or private pension plan because of their employment
or provision of services are not eligible to participate in the public employees defined
contribution plan.
deleted text begin (d)deleted text end new text begin (c) new text end A former participant is a person who has terminated eligible employment or
service and has not withdrawn the value of the person's individual account.
Sec. 3.
Minnesota Statutes 2022, section 353D.02, subdivision 1, is amended to read:
Subdivision 1.
deleted text begin Electeddeleted text end Local government officials.
Eligible elected new text begin or appointed new text end local
government officials may elect to participate in the defined contribution plan after being
elected or appointed to deleted text begin electivedeleted text end public office by filing a membership application on a form
prescribed by the executive director of the association authorizing contributions to be
deducted from the deleted text begin electeddeleted text end official's salary. Participation begins on the first day of the pay
period for which the contributions were deducted or, if pay period coverage dates are not
provided, the date on which the membership application or contributions are received in
the office of the association, whichever is received first, provided further that the membership
application is received by the association within 60 days of the receipt of the contributions.
An election to participate in the plan is revocable during incumbency.
Sec. 4.
Minnesota Statutes 2022, section 353D.03, subdivision 1, is amended to read:
Subdivision 1.
Contributions for eligible participants.
(a) The following classes of
eligible participants who elect to participate in the public employees defined contribution
plan under section 353D.02 shall contribute an amount equal to five percent of salary as
defined in section 353.01, subdivision 10:
(1) deleted text begin electeddeleted text end local government officials;
(2) physicians; and
(3) persons who are excluded from membership under section 353.01, subdivision 2b,
paragraph (a), clause (23).
(b) A participant's governmental subdivision shall contribute a matching amount.
Sec. 5. new text begin REINSTATEMENT OF APPOINTED OFFICIALS; RESUMPTION OF
CONTRIBUTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin
Reinstatement of appointed officials, election not to participate, and
make-up contributions.
new text end
new text begin
(a) Any local government official whose participation in the public
employees defined contribution plan under Minnesota Statutes, chapter 353D, ceased on
or after January 1, 2020, and before the effective date of this section because the official's
position changed from an elected position to an appointed position, must participate in the
plan upon the effective date of this section, unless the official elects to opt out of participation
under paragraph (b).
new text end
new text begin
(b) An official whose participation in the plan resumes under paragraph (a) may elect
not to participate in the plan by providing notice to the governing body of the local
government, no later than 30 days after the effective date of this section, that the official
does not wish to participate.
new text end
new text begin
(c) For any official who is reinstated under paragraph (a) and does not elect to opt out
of participation under paragraph (b):
new text end
new text begin
(1) the local government must contribute, no later than 60 days after the effective date
of this section, the matching amount that the local government would have contributed
under Minnesota Statutes, section 353D.03, subdivision 1, paragraph (b), for the period
during which the official's participation ceased; and
new text end
new text begin
(2) the official may contribute, no later than 60 days after the effective date of this
section, any amount the official elects, but not to exceed the amount that the official would
have contributed under Minnesota Statutes, section 353D.03, subdivision 1, paragraph (a),
for the period during which the official's participation ceased.
new text end
new text begin Subd. 2. new text end
new text begin Resumption of contributions by and for appointed officials. new text end
new text begin
Contributions
required under Minnesota Statutes, section 353D.03, subdivision 1, must be made by the
local government official and the local government beginning with the first full pay period
following the effective date of this section for any official who resumes participation under
subdivision 1, paragraph (a), and does not elect to opt out of participation under subdivision
1, paragraph (b).
new text end
Sec. 6. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 5 are effective the day following final enactment.
new text end