SF 2850

Introduction - 79th Legislature (1995 - 1996)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to retirement; changing previous governing 
  1.3             state aid to police and firefighters relief 
  1.4             associations; amending Minnesota Statutes 1994, 
  1.5             section 423A.02; Minnesota Statutes 1995 Supplement, 
  1.6             section 353.65, subdivision 7. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.9   353.65, subdivision 7, is amended to read: 
  1.10     Subd. 7.  [EXCESS CONTRIBUTIONS HOLDING ACCOUNT.] (a) The 
  1.11  excess contributions holding account is established in the 
  1.12  public employees retirement association.  Excess contributions 
  1.13  established by section 69.031, subdivision 5, paragraphs (2), 
  1.14  clauses (b) and (c), and (3) must be deposited in the account.  
  1.15  These contributions and all investment earnings associated with 
  1.16  them must be regularly transferred as provided in paragraph (b). 
  1.17     (b) From the amount of the excess contributions and 
  1.18  associated investment earnings: 
  1.19     (1) $1,000,000 must be transferred annually to the 
  1.20  ambulance service personnel longevity award and incentive 
  1.21  suspense account established by section 144C.03, subdivision 2; 
  1.22  and 
  1.23     (2) any remaining balance, after deduction of the 
  1.24  additional amortization aid allocation, if any, under paragraph 
  1.25  (d), must be transferred to the general fund. 
  1.26     (c) If a law is enacted creating a police officer stress 
  2.1   reduction program, and money is appropriated for the program, an 
  2.2   amount equal to the appropriation must be transferred from the 
  2.3   excess contributions holding account to the stress reduction 
  2.4   program before money is allocated under paragraph (b), clause 
  2.5   (2). 
  2.6      (d) On October 1, 1997, and annually on each October 1 
  2.7   thereafter, one-half of the money in the excess contributions 
  2.8   holding account under paragraph (b), clause (2), collected 
  2.9   during the immediately preceding July 1 through June 30 period 
  2.10  must be allocated by the commissioner of revenue to all local 
  2.11  police or salaried firefighter relief associations governed by 
  2.12  and in full compliance with section 69.77 that had an unfunded 
  2.13  actuarial accrued liability in the actuarial valuation prepared 
  2.14  under sections 356.215 and 356.216 as of the preceding December 
  2.15  31, and to all local police or salaried firefighter 
  2.16  consolidation accounts governed by chapter 353A that are 
  2.17  certified by the executive director of the public employees 
  2.18  retirement association as having for the current fiscal year an 
  2.19  additional municipal contribution amount under section 353A.09, 
  2.20  subdivision 5, paragraph (b), and that have implemented 
  2.21  Minnesota Statutes 1994, section 353A.083, if the effective date 
  2.22  of the consolidation preceded May 24, 1993, and that have 
  2.23  implemented section 353A.083, if the effective date of the 
  2.24  consolidation preceded the date of enactment, on the basis of 
  2.25  the relief association or consolidation account's proportional 
  2.26  share of the total unfunded actuarial accrued liability of all 
  2.27  recipient relief associations and consolidation accounts as of 
  2.28  December 31, 1993, or June 30, 1994, whichever applies.  If the 
  2.29  municipality associated with a relief association or a 
  2.30  consolidation account has issued obligations to fund all or a 
  2.31  portion of the unfunded actuarial accrued liability of the 
  2.32  association or account, the proceeds of those obligations may 
  2.33  not be recognized in determining whether or not the association 
  2.34  or account has an unfunded actuarial accrued liability. 
  2.35     (e) The additional amortization aid program under paragraph 
  2.36  (d) terminates on December 31, 2010. 
  3.1      Sec. 2.  Minnesota Statutes 1994, section 423A.02, is 
  3.2   amended to read: 
  3.3      423A.02 [LOCAL POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION 
  3.4   AMORTIZATION STATE AID.] 
  3.5      Subdivision 1.  [AMORTIZATION STATE AID.] (a) A 
  3.6   municipality in which is located a local police or salaried 
  3.7   firefighters' relief association to which the provisions of 
  3.8   section 69.77, apply, that had an unfunded actuarial accrued 
  3.9   liability in the most recent relief association actuarial 
  3.10  valuation, is entitled, upon application as required by the 
  3.11  commissioner of revenue, to receive local police and salaried 
  3.12  firefighters' relief association amortization state aid if the 
  3.13  municipality and the appropriate relief association both comply 
  3.14  with the applicable provisions of sections 69.031, subdivision 
  3.15  5, 69.051, subdivisions 1 and 3, and 69.77.  If a municipality 
  3.16  loses entitlement for amortization state aid in any year because 
  3.17  its local relief association no longer has an unfunded actuarial 
  3.18  accrued liability, the municipality is not entitled to 
  3.19  amortization state aid in any subsequent year.  If the 
  3.20  municipality associated with a relief association has issued 
  3.21  obligations to fund all or a portion of the unfunded actuarial 
  3.22  accrued liability of the association, the proceeds of those 
  3.23  obligations may not be recognized in determining whether or not 
  3.24  the association has an unfunded actuarial accrued liability. 
  3.25     (b) The total amount of amortization state aid to all 
  3.26  entitled municipalities must not exceed $5,055,000. 
  3.27     (c) Subject to the adjustment for the city of Minneapolis 
  3.28  provided in this paragraph, the amount of amortization state aid 
  3.29  to which a municipality is entitled annually is an amount equal 
  3.30  to the level annual dollar amount required to amortize, by 
  3.31  December 31, 2010, the unfunded actuarial accrued liability of 
  3.32  the special fund of the appropriate relief association as 
  3.33  reported in the December 31, 1978, actuarial valuation of the 
  3.34  relief association prepared under sections 356.215 and 356.216, 
  3.35  reduced by the dollar amount required to pay the interest on the 
  3.36  unfunded actuarial accrued liability of the special fund of the 
  4.1   relief association for calendar year 1981 set at the rate 
  4.2   specified in Minnesota Statutes 1978, section 356.215, 
  4.3   subdivision 4, clause (4).  For the city of Minneapolis, the 
  4.4   amortization state aid amount thus determined must be reduced by 
  4.5   $747,232 on account of the Minneapolis police relief association 
  4.6   and by $772,768 on account of the Minneapolis fire department 
  4.7   relief association.  If the amortization state aid amounts 
  4.8   determined under this paragraph exceed the amount appropriated 
  4.9   for this purpose, the amortization state aid for actual 
  4.10  allocation must be reduced pro rata. 
  4.11     (d) Payment of amortization state aid to municipalities 
  4.12  must be made directly to the municipalities involved in four 
  4.13  equal installments on March 15, July 15, September 15 and 
  4.14  November 15 annually.  Upon receipt of amortization state 
  4.15  aid, after deduction of an amount equal to the annual principal 
  4.16  and interest payments due on any municipal obligations issued to 
  4.17  fund all or a portion of the unfunded actuarial accrued 
  4.18  liability of the association, the municipal treasurer shall 
  4.19  transmit the any remaining aid amount to the treasurer of the 
  4.20  local relief association for immediate deposit in the special 
  4.21  fund of the relief association. 
  4.22     (e) The commissioner of revenue shall prescribe and 
  4.23  periodically revise the form for and content of the application 
  4.24  for the amortization state aid.  
  4.25     Subd. 1a.  [SUPPLEMENTARY AMORTIZATION STATE AID.] In 
  4.26  addition to the amortization state aid under subdivision 1, 
  4.27  there is must be a distribution of supplementary amortization 
  4.28  state aid among those municipalities that receive amortization 
  4.29  state aid under subdivision 1.  The amount of the distribution 
  4.30  is that proportion of the appropriation that the unfunded 
  4.31  actuarial accrued liability of each relief association bears to 
  4.32  the total unfunded actuarial accrued liabilities of all relief 
  4.33  associations as reported in the December 31, 1983, actuarial 
  4.34  valuations of the relief associations receiving amortization 
  4.35  state aid under subdivision 1.  Money under this subdivision 
  4.36  must be distributed at the same time that fire and police state 
  5.1   aid is distributed under section 69.021. 
  5.2      Subd. 2.  [CONTINUED ELIGIBILITY.] A municipality that has 
  5.3   qualified for amortization state aid under subdivision 1 on 
  5.4   December 31, 1984, and either has an additional municipal 
  5.5   contribution payable under section 353A.09, subdivision 5, 
  5.6   paragraph (b), as of the most recent December 31, or has 
  5.7   obligations issued to fund the applicable consolidation account 
  5.8   outstanding as of the most recent December 31, continues upon 
  5.9   application to be entitled to receive amortization state aid 
  5.10  under subdivision 1 and supplementary amortization state aid 
  5.11  under subdivision 1a, after the local police or salaried 
  5.12  firefighters' relief association has been consolidated into the 
  5.13  public employees police and fire fund.  If a municipality loses 
  5.14  entitlement for amortization state aid and supplementary 
  5.15  amortization state aid in any year because of either not having 
  5.16  an additional municipal contribution or not having outstanding 
  5.17  municipal obligations to fund the applicable consolidation 
  5.18  account, the municipality is not entitled to the aid amounts in 
  5.19  any subsequent year. 
  5.20     Subd. 3.  [EXPIRATION.] The amortization aid program and 
  5.21  the supplementary amortization aid program terminate on December 
  5.22  31, 2010. 
  5.23     Sec. 3.  [MODIFICATION IN THIRTEENTH CHECK CALCULATIONS.] 
  5.24     Notwithstanding any provision of Minnesota Statutes, 
  5.25  section 423B.15, or Laws 1989, chapter 319, article 19, section 
  5.26  7, to the contrary, the proceeds of any municipal obligations 
  5.27  issued to accelerate the funding of the relief association and 
  5.28  the accumulated investment earnings on those proceeds must be 
  5.29  excluded from the asset base and the annual investment earnings 
  5.30  on those proceeds for the applicable year must be excluded from 
  5.31  the calculation of excess investment income for purposes of any 
  5.32  thirteenth check calculation.