1.1                          A bill for an act  
  1.2             relating to retirement and public employment; 
  1.3             modifying benefits for certain former participants in 
  1.4             the Minnesota state retirement system; authorizing 
  1.5             additional service credits for certain University of 
  1.6             Minnesota hospital and clinics employees; authorizing 
  1.7             additional augmentation for employees of the 
  1.8             University of Minnesota hospital and clinics who 
  1.9             terminate participation in the Minnesota state 
  1.10            retirement system; imposing conditions protecting the 
  1.11            rights of employees on any integration of the 
  1.12            University of Minnesota hospital and clinics and 
  1.13            Fairview hospital and healthcare services; proposing 
  1.14            coding for new law as Minnesota Statutes, chapter 352F.
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1
  1.17                        RETIREMENT BENEFITS
  1.18     Section 1.  [352F.01] [PURPOSE.] 
  1.19     The purpose of this chapter is to assure, to the extent 
  1.20  possible, that persons employed at the University of Minnesota 
  1.21  hospital and clinics will be entitled to receive future 
  1.22  retirement benefits under the general state employees retirement 
  1.23  plan of the Minnesota state retirement system commensurate with 
  1.24  the prior contributions made by them or on their behalf upon the 
  1.25  integration of the University of Minnesota hospital and clinics 
  1.26  and Fairview hospital and healthcare services. 
  1.27     Sec. 2.  [352F.02] [DEFINITIONS.] 
  1.28     Subdivision 1.  [DEFINITIONS.] As used in this chapter, 
  1.29  unless the context or subject matter indicates otherwise, the 
  1.30  following terms have the meanings given in this section. 
  2.1      Subd. 2.  [ALLOWABLE SERVICE.] "Allowable service" has the 
  2.2   meaning provided in section 352.01, subdivision 11. 
  2.3      Subd. 3.  [EFFECTIVE DATE.] "Effective date" is the date 
  2.4   terminated hospital employees transfer employment to Fairview 
  2.5   under a definitive integration agreement between the University 
  2.6   of Minnesota and Fairview. 
  2.7      Subd. 4.  [FAIRVIEW.] "Fairview" means Fairview hospital 
  2.8   and healthcare services, a Minnesota nonprofit corporation, and 
  2.9   its successors. 
  2.10     Subd. 5.  [SECTION.] "Section" means the designated section 
  2.11  of Minnesota Statutes. 
  2.12     Subd. 6.  [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 
  2.13  hospital employee" means a person who: 
  2.14     (1) was employed on the day before the effective date by 
  2.15  the University of Minnesota at the University of Minnesota 
  2.16  hospital and clinics and was paid on a biweekly payroll; 
  2.17     (2) terminated employment with the University of Minnesota 
  2.18  on the day before the effective date; and 
  2.19     (3) was a participant in the general state employees 
  2.20  retirement plan of the Minnesota state retirement system at the 
  2.21  time of termination of employment with the University of 
  2.22  Minnesota. 
  2.23     Subd. 7.  [UNIVERSITY OF MINNESOTA.] "University of 
  2.24  Minnesota" means University of Minnesota hospital and clinics, 
  2.25  the hospitals and clinics operated by the regents of the 
  2.26  University of Minnesota. 
  2.27     Subd. 8.  [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 
  2.28  service" has the meaning provided in section 352.01, subdivision 
  2.29  16. 
  2.30     Sec. 3.  [352F.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 
  2.31     Notwithstanding any provision of chapter 352 to the 
  2.32  contrary, a terminated hospital employee is eligible to receive 
  2.33  a retirement annuity under section 352.115 without regard to the 
  2.34  requirement for three years of allowable service. 
  2.35     Sec. 4.  [352F.04] [AUGMENTATION INTEREST RATE FOR 
  2.36  TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.] 
  3.1      The deferred annuity of a terminated hospital employee is 
  3.2   subject to augmentation in accordance with section 352.72, 
  3.3   subdivision 2, except that the rate of interest for this purpose 
  3.4   is 5.5 percent compounded annually until January 1 of the year 
  3.5   in which such person attains age 55.  From that date to the 
  3.6   effective date of retirement, the rate is 7.5 percent.  These 
  3.7   increased augmentation rates are no longer applicable for any 
  3.8   time after the terminated hospital employee becomes covered 
  3.9   again by a retirement fund enumerated in section 356.30, 
  3.10  subdivision 3.  These increased deferred annuity augmentation 
  3.11  rates do not apply to a terminated transferred hospital employee 
  3.12  who begins receipt of a retirement annuity while employed by 
  3.13  Fairview. 
  3.14     Sec. 5.  [352F.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 
  3.15  SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 
  3.16     Notwithstanding any provision of chapter 352 to the 
  3.17  contrary, the years of allowable service for a terminated 
  3.18  hospital employee who transfers to employment at Fairview on the 
  3.19  effective date and does not apply for a refund of contributions 
  3.20  pursuant to section 352.22, subdivision 2, or any similar 
  3.21  provision in future Minnesota Statutes, includes service with 
  3.22  Fairview following the effective date. 
  3.23     This section is solely for the purpose of determining 
  3.24  eligibility for early retirement benefits provided in section 
  3.25  352.116, subdivision 1, paragraphs (a) and (b).  No early 
  3.26  retirement benefits under this section may be paid during any 
  3.27  period the terminated hospital employee is employed by 
  3.28  Fairview.  The reemployed annuitant earnings limitation of 
  3.29  section 352.115, subdivision 10, also applies to any service as 
  3.30  an employee of Fairview.  Fairview shall provide any reports 
  3.31  that the executive director of the Minnesota state retirement 
  3.32  system may reasonably request to permit calculation of this 
  3.33  additional service credit. 
  3.34     Sec. 6.  [352F.06] [EFFECT ON REFUND.] 
  3.35     Notwithstanding any provision of chapter 352 to the 
  3.36  contrary, terminated hospital employees may receive a refund of 
  4.1   employee accumulated contributions plus interest at the rate of 
  4.2   6.0 percent per year compounded annually in accordance with 
  4.3   section 352.22, subdivision 2, at any time after the transfer of 
  4.4   employment to Fairview.  If a terminated hospital employee has 
  4.5   received a refund from a pension plan enumerated in section 
  4.6   356.30, subdivision 3, the person may not repay that refund 
  4.7   unless the person again becomes a member of one of those 
  4.8   enumerated plans and complies with section 356.30, subdivision 2.
  4.9      Sec. 7.  [352F.07] [COUNSELING SERVICES.] 
  4.10     The University of Minnesota hospital and clinics and the 
  4.11  Minnesota state retirement system shall provide terminated 
  4.12  hospital employees with counseling on their benefits available 
  4.13  under the general state employees retirement plan of the 
  4.14  Minnesota state retirement system. 
  4.15     Sec. 8.  [EFFECTIVE DATE.] 
  4.16     Sections 1 to 7 are effective as of the date employees of 
  4.17  the University of Minnesota cease to be members of the Minnesota 
  4.18  state retirement system as a result of an integration agreement 
  4.19  between the University of Minnesota and Fairview. 
  4.20                             ARTICLE 2
  4.21                CONDITIONS FOR INTEGRATION AGREEMENT
  4.22     Section 1.  [CONDITIONS GOVERNING INTEGRATION.] 
  4.23     Subdivision 1.  [LIMITATION.] The regents of the University 
  4.24  of Minnesota may not enter into a definitive integration 
  4.25  agreement affecting the University of Minnesota hospital and 
  4.26  clinics and Fairview hospital and healthcare services unless the 
  4.27  conditions set out in this section have been fulfilled. 
  4.28     Subd. 2.  [COLLECTIVE BARGAINING AGREEMENTS.] If an 
  4.29  integration agreement described in subdivision 1 results in the 
  4.30  transfer of represented employees of the University of Minnesota 
  4.31  hospital and clinics to Fairview hospital and healthcare 
  4.32  services or a new entity, collective bargaining agreements 
  4.33  covering those employees on the effective date of that agreement 
  4.34  must remain in effect until representation of those employees 
  4.35  has been determined under the national labor relations act and 
  4.36  successor agreements covering the employees become effective. 
  5.1      Subd. 3.  [CURRENT EXCLUSIVE REPRESENTATIVES.] The 
  5.2   exclusive representatives of employees of the University of 
  5.3   Minnesota hospital and clinics on the effective date of an 
  5.4   agreement described in subdivision 1 must have continuing 
  5.5   responsibility for administration of their agreements, and all 
  5.6   contractual duties, rights, and obligations, including the right 
  5.7   to deduction of dues and fair share fees, must remain in effect 
  5.8   until new agreements become effective or new exclusive 
  5.9   representatives have been certified. 
  5.10     Subd. 4.  [UNREPRESENTED EMPLOYEES.] If an agreement 
  5.11  described in subdivision 1 results in the transfer of 
  5.12  unrepresented employees of the University of Minnesota hospital 
  5.13  and clinics to Fairview hospital and healthcare services or a 
  5.14  new entity, the terms and conditions of agreements, compensation 
  5.15  plans, personnel policies, or other salary and benefit 
  5.16  provisions covering those employees on the date of that 
  5.17  agreement remain in effect until June 30, 1997. 
  5.18     Subd. 5.  [COMPENSATION.] The compensation of employees of 
  5.19  the University of Minnesota hospital and clinics on the 
  5.20  effective date of an agreement described in subdivision 1 may 
  5.21  not be diminished after the date of an agreement.  If a 
  5.22  successor collective bargaining agreement, compensation plan, 
  5.23  personnel policy, or other pay and benefit provision provides 
  5.24  for a lower compensation rate for an employee's classification, 
  5.25  the employee's rate may not be decreased, but may remain at its 
  5.26  current level until a higher rate becomes effective for that 
  5.27  classification. 
  5.28     Subd. 6.  [BENEFITS; SENIORITY.] Accumulations of leaves, 
  5.29  years of service, and benefits accrued by employees of the 
  5.30  University of Minnesota hospital and clinics on the effective 
  5.31  date of an agreement described in subdivision 1 must remain in 
  5.32  effect and be credited to the employees for purposes of their 
  5.33  employment by a governing body established in accordance with 
  5.34  subdivision 2.  The governing body may not reduce the value or 
  5.35  coverage of the employees' insurance benefits, eligibility for 
  5.36  regents' scholarships, or other benefits, except as provided in 
  6.1   Minnesota Statutes, sections 352F.01 to 352F.07.  The new 
  6.2   governing body shall compile and maintain a merged seniority 
  6.3   roster covering former employees of the University of Minnesota 
  6.4   hospital and clinics and any former employees of Fairview 
  6.5   hospital and healthcare services who are employed by the 
  6.6   governing body.  Probationary periods and provisions governing 
  6.7   promotion, layoff, lateral transfers, disciplinary procedures, 
  6.8   and dismissals under a collective bargaining agreement in effect 
  6.9   on the effective date of an agreement described in subdivision 1 
  6.10  must remain in effect until modified by a successor agreement. 
  6.11     Subd. 7.  [TRAINING MONEY.] Sufficient money must be 
  6.12  provided for training and retraining of permanent or regular 
  6.13  employees of the University of Minnesota hospital and clinics 
  6.14  who are transferred to Fairview hospital and health care 
  6.15  services or a new entity as a result of an agreement described 
  6.16  in subdivision 1. 
  6.17     Subd. 8.  [PRESERVATION OF RIGHTS.] This section does not 
  6.18  abrogate or change any rights enjoyed by employees of the 
  6.19  University of Minnesota hospital and clinics under the terms of 
  6.20  a collective bargaining agreement authorized by Minnesota 
  6.21  Statutes, section 179A.20, and in effect at the effective date 
  6.22  of this section. 
  6.23     Sec. 2.  [EFFECTIVE DATE.] 
  6.24     Section 1 is effective the day following final enactment.