SF 2119

Introduction - 84th Legislature (2005 - 2006)

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

A bill for an act
relating to retirement; Public Employees Retirement
Association; requiring fees be paid in certain
circumstances; amending Minnesota Statutes 2004,
section 353.03, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 353.03,
subdivision 3, is amended to read:

Subd. 3.

Duties and powers of the board.

(a) The board
shall elect a president and vice-president. The board shall
approve the staffing complement necessary to administer the
fund. The cost of administering this chapter must be paid by
the fund.

(b) The board shall adopt bylaws for its own government and
for the management of the fund consistent with the laws of the
state and may modify them at pleasure. It shall adopt, alter,
and enforce reasonable rules consistent with the laws of the
state for the administration and management of the fund, for the
payment and collection of payments from members, and for the
payment of withdrawals and benefits. It shall pass upon and
allow or disallow all applications for membership in the fund
and shall allow or disallow claims for withdrawals, pensions, or
benefits payable from the fund. It shall adopt an appropriate
mortality table based on experience of the fund as recommended
by the association actuary, with interest set at the rate
specified in section 356.215, subdivision 8. It shall provide
for the payment out of the fund of all necessary expenses for
the administration of the fund and of all claims for
withdrawals, pensions, or benefits allowed. The board shall
approve or disapprove all recommendations and actions of the
executive director made subject to its approval or disapproval
by subdivision 3a.

(c) In passing upon all applications and claims, the board
may summon, swear, hear, and examine witnesses and, in the case
of claims for disability benefits, may require the claimant to
submit to a medical examination by a physician of the board's
choice, at the expense of the fund, as a condition precedent to
the passing on the claim, and, in the case of all applications
and claims, may conduct investigations necessary to determine
their validity and merit. The board shall establish procedures
to assure that a benefit applicant and recipient may have a
review of a benefit eligibility or benefit amount determination
affecting the applicant or recipient. The review procedure may
afford the benefit applicant or benefit recipient an opportunity
to present views at any review proceeding conducted, but is not
a contested case under chapter 14.

(d) new text begin A governmental subdivision covered by this chapter
shall pay an employee's costs of appeal and petition when:
new text end

new text begin (1) a public employee of the governmental subdivision has
applied for a disability benefit;
new text end

new text begin (2) the employee's initial application has been denied;
new text end

new text begin (3) the governmental subdivision requires the employee to
seek administrative review of the denial;
new text end

new text begin (4) the review is required to be through a fact-finding
conference or a petition for review by the board of trustees;
and
new text end

new text begin (5) the review requirement is a condition of employment or
a condition of application for a benefit.
new text end

new text begin (e) new text end The board may continue to authorize the sale of life
insurance to members under the insurance program in effect on
January 1, 1985, but must not change that program without the
approval of the commissioner of finance. The association shall
not receive any financial benefit from the life insurance
program beyond the amount necessary to reimburse the association
for costs incurred in administering the program. The
association shall not engage directly or indirectly in any other
activity involving the sale or promotion of goods or services,
or both, whether to members or nonmembers.

deleted text begin (e) deleted text end new text begin (f) new text end The board shall establish procedures governing
reimbursement of expenses to board members. These procedures
shall define the types of activities and expenses that qualify
for reimbursement, shall provide that all out-of-state travel
must be authorized by the board, and shall provide for
independent verification of claims for expense reimbursement.
The procedures must comply with applicable rules and policies of
the Department of Finance, the Department of Administration, and
the Department of Employee Relations.

deleted text begin (f) deleted text end new text begin (g) new text end The board may purchase fiduciary liability
insurance and official bonds for the officers and members of the
board of trustees and employees of the association and may
purchase property insurance or may establish a self-insurance
risk reserve including, but not limited to, data processing
insurance and "extra-expense" coverage.