1.1A bill for an act
1.2relating to retirement; modifying State Board of Investment provisions; MSRS
1.3administrative provisions; PERA administrative provisions; benefit accrual rate
1.4specification; revisions and repeals of former local police and paid firefighter
1.5relief association laws; volunteer firefighter retirement changes; one person
1.6and small group retirement changes; miscellaneous provisions; state patrol
1.7retirement plan financial solvency measures; PERA plans salary definitions;
1.8public employees police and fire retirement plan financial solvency measures;
1.9Teachers Retirement Association early retirement reduction factors; first class
1.10city teacher retirement increases and financial solvency measures; judges
1.11retirement plan financial solvency measures; requiring reports; appropriating
1.12money;amending Minnesota Statutes 2012, sections 3.85, subdivision 10;
1.133A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions
1.141, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions
1.151, 2, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031,
1.16subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77,
1.17subdivisions 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774,
1.18subdivision 1; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381;
1.19352.01, subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03,
1.20subdivisions 4, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4,
1.216, 8, by adding subdivisions; 352.115, subdivision 3; 352.22, subdivision 3;
1.22352.87, subdivision 3; 352.93, subdivision 2; 352.95, subdivision 1; 352.955,
1.23subdivisions 1, 3; 352B.011, subdivisions 4, 13; 352B.02, subdivisions 1a,
1.241c; 352B.08, subdivisions 1, 2, 2a; 352B.10, subdivisions 1, 5, by adding
1.25a subdivision; 352B.11, subdivisions 1, 2b; 352D.04, subdivision 2; 353.01,
1.26subdivisions 2a, 2b, 6, 10, 16, 17a, 29, 41, 47; 353.03, subdivision 3; 353.031,
1.27subdivision 4; 353.27, subdivision 7; 353.29, subdivision 3; 353.34, subdivisions
1.281, 2; 353.35, subdivision 1; 353.50, subdivisions 3, 6; 353.64, subdivision 1a;
1.29353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.656, subdivisions 1,
1.301a, 3a; 353.657, subdivisions 2, 2a, 3, 3a; 353.659; 353.665, subdivisions 1,
1.315, 8, by adding a subdivision; 353.71, subdivision 1; 353E.001, subdivision
1.321; 353E.04, subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3,
1.334, 6, by adding a subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04;
1.34353F.05; 353F.051, subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08;
1.35353G.05, subdivision 2; 354.07, subdivision 1; 354.44, subdivision 6; 354A.011,
1.36subdivision 21; 354A.021, subdivision 2; 354A.12, subdivisions 1, 2a, 3a, 3c,
1.377, by adding subdivisions; 354A.27, subdivision 7, by adding a subdivision;
1.38354A.31, subdivisions 3, 4, 4a, 7; 354A.35, subdivision 2; 356.20, subdivisions
1.392, 4; 356.214, subdivision 1; 356.215, subdivisions 1, 8, 18; 356.216; 356.219,
2.1subdivisions 1, 2, 8; 356.30, subdivisions 1, 3; 356.315, subdivision 9, by
2.2adding a subdivision; 356.401, subdivision 3; 356.406, subdivision 1; 356.415,
2.3subdivisions 1, 1a, 1b, 1c, 1e, 2, by adding a subdivision; 356.47, subdivision
2.41; 356.48, subdivision 1; 356.635, subdivision 1; 356.91; 356A.01, subdivision
2.519; 356A.06, subdivision 4; 356A.07, subdivision 2; 423A.02, subdivisions 1,
2.61b, 2, 3, 3a, 4, 5; 424A.001, subdivision 4, by adding a subdivision; 424A.01,
2.7subdivision 6; 424A.015, subdivisions 1, 4; 424A.016, subdivision 6; 424A.02,
2.8subdivisions 7, 9; 424A.10, subdivisions 1, 2; 475.52, subdivision 6; 490.121,
2.9subdivisions 21f, 22, by adding subdivisions; 490.123, subdivisions 1a, 1b;
2.10490.124, subdivision 1; proposing coding for new law in Minnesota Statutes,
2.11chapters 3A; 6; 353F; 354; 356; 490; repealing Minnesota Statutes 2012, sections
2.123A.02, subdivision 3; 69.021, subdivision 6; 69.77, subdivision 3; 352.045,
2.13subdivisions 3, 4; 352.955, subdivision 2; 352B.11, subdivision 2c; 352C.001;
2.14352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3;
2.15353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691;
2.16353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08;
2.17353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04;
2.18353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12;
2.19353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3;
2.20354A.27, subdivision 6; 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7,
2.218; 423A.01; 423A.02, subdivision 1a; 423A.04; 423A.05; 423A.07; 423A.10;
2.22423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171;
2.23423A.18; 423A.19; 423A.20; 423A.21; 423A.22; 424A.10, subdivision 5.
2.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.25
ARTICLE 1
2.26
STATE BOARD OF INVESTMENT PROVISIONS
2.27 Section 1. Minnesota Statutes 2012, section 11A.24, subdivision 1, is amended to read:
2.28 Subdivision 1.
Securities generally. (a)
new text begin Pursuant to an investment policy adopted new text end
2.29
new text begin by the state board, new text end the state board is authorized to purchase, sell, lend, and exchange the
2.30securities specified in this section, for funds or accounts specifically made subject to this
2.31section,
new text begin . This authoritynew text end including
new text begin includesnew text end puts and call options
new text begin ,new text end and future contracts
new text begin , new text end
2.32
new text begin and swap contracts marked to market, if these options and contracts arenew text end traded on a
2.33contract market regulated by a governmental agency or by a financial institution regulated
2.34by a governmental agency. These securities may be owned directly or through shares
2.35in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
2.36limitations as specified in this section.
2.37(b) Any agreement to lend securities must be concurrently collateralized with cash
2.38or securities with a market value of not less than 100 percent of the market value of the
2.39loaned securities at the time of the agreement. Any agreement for put and call options
2.40and futures contracts may only be entered into with a fully offsetting amount of cash or
2.41securities. Only securities authorized by this section, excluding those under subdivision 6,
2.42paragraph (a), clauses (1) to (3), may be accepted as collateral or offsetting securities.
3.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
3.2
ARTICLE 2
3.3
MSRS ADMINISTRATIVE PROVISIONS
3.4 Section 1. Minnesota Statutes 2012, section 3.85, subdivision 10, is amended to read:
3.5 Subd. 10.
Standards for pension valuations and cost estimates. The commission
3.6shall adopt standards prescribing specific detailed methods to calculate, evaluate, and
3.7display current and proposed law liabilities, costs, and actuarial equivalents of all public
3.8employee pension plans in Minnesota. These standards shall be consistent with chapter
3.9356 and be updated annually.
new text begin At a minimum, new text end the standards must not
new text begin shall new text end contain a
3.10valuation requirement
new text begin requirements new text end that is inconsistent
new text begin comply new text end with generally accepted
3.11accounting principles applicable to government pension plans.
new text begin The standards may include new text end
3.12
new text begin additional financial, funding, or valuation requirements that are not required under new text end
3.13
new text begin generally accepted accounting principles applicable to government pension plans.new text end
3.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
3.15 Sec. 2. Minnesota Statutes 2012, section 3A.011, is amended to read:
3.16
3A.011 ADMINISTRATION OF PLANnew text begin PLANSnew text end .
3.17 The executive director and the board of directors of the Minnesota State Retirement
3.18System shall administer the legislators retirement plan
new text begin plans specified new text end in accordance
new text begin this new text end
3.19
new text begin chapter consistent new text end with this chapter and chapter
new text begin chapters 356 and new text end 356A.
3.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
3.21 Sec. 3. Minnesota Statutes 2012, section 3A.03, subdivision 3, is amended to read:
3.22 Subd. 3.
Legislators retirement fund. (a) The legislators retirement fund, a special
3.23retirement fund, is created within the state treasury and must be credited with assets equal
3.24to the participation of the legislators retirement plan in the Minnesota postretirement
3.25investment fund as of June 30, 2009, and any investment proceeds on those assets.
new text begin The new text end
3.26
new text begin legislators retirement fund must be credited with any investment proceeds on the assets of new text end
3.27
new text begin the retirement fund.new text end
3.28(b) The payment of annuities under section
3A.115, paragraph (b), is appropriated
3.29from the legislators retirement fund.
3.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
4.1 Sec. 4. Minnesota Statutes 2012, section 3A.07, is amended to read:
4.2
3A.07 APPLICATION.
4.3 (a) Except as provided in paragraph (b)
new text begin and section 3A.17new text end , this chapter applies
4.4to members of the legislature in service after July 1, 1965, who otherwise meet the
4.5requirements of this chapter.
4.6 (b) Members of the legislature who were elected for the first time after June 30,
4.71997, or members of the legislature who were elected before July 1, 1997, and who, after
4.8July 1, 1998, elect not to be members of the plan established by this chapter are covered
4.9by the unclassified employees retirement program governed by chapter 352D.
4.10 (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable
4.11and must be made on a form prescribed by the director. The second chance referendum
4.12election under Laws 2002, chapter 392, article 15, also is irrevocable.
4.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
4.14 Sec. 5. Minnesota Statutes 2012, section 3A.115, is amended to read:
4.15
3A.115 RETIREMENT ALLOWANCE APPROPRIATION;
4.16
POSTRETIREMENT ADJUSTMENT.
4.17(a) The amount necessary to fund the retirement allowance granted under this
4.18chapter to a former legislator retiring after June 30, 2003,
new text begin or to that legislator's survivor, new text end
4.19
new text begin and the retirement allowance granted under section 3A.17 to a former constitutional new text end
4.20
new text begin officer or the survivor of that constitutional officer new text end is appropriated from the general fund to
4.21the director to pay pension obligations due to the retiree.
4.22(b) The amount necessary to fund the retirement allowance granted under this
4.23chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators
4.24retirement fund created under section
3A.03, subdivision 3, until the assets of the fund
4.25are exhausted and at that time, the amount necessary to fund the retirement allowances
4.26under this paragraph is appropriated from the general fund to the director to pay pension
4.27obligations to the retiree
new text begin and survivornew text end .
4.28(c) Retirement allowances payable to retired legislators and their survivors under
4.29this chapter must be adjusted as provided in sections
3A.02, subdivision 6, and
356.415.
4.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
5.1 Sec. 6. Minnesota Statutes 2012, section 3A.13, is amended to read:
5.2
3A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH
5.3
PREMIUM DEDUCTION.
5.4(a) The provisions of section
356.401 apply to the legislators retirement plan
new text begin plans new text end
5.5
new text begin specified in this chapternew text end .
5.6(b) The executive director of the Minnesota State Retirement System must, at the
5.7request of a retired legislator
new text begin or constitutional officer new text end who is enrolled in a health insurance
5.8plan covering state employees, deduct the person's health insurance premiums from the
5.9person's annuity and transfer the amount of the premium to a health insurance carrier
5.10covering state employees.
5.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
5.12 Sec. 7. Minnesota Statutes 2012, section 3A.15, is amended to read:
5.13
3A.15 COORDINATED PROGRAM new text begin PROGRAMS new text end OF new text begin THE new text end LEGISLATORS
5.14
RETIREMENT PLAN.
5.15The coordinated program of the legislators retirement plan is created. The provisions
5.16of sections
3A.01 to
3A.13 apply to the coordinated program
new text begin and basic programs of the new text end
5.17
new text begin legislators retirement plannew text end .
5.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
5.19 Sec. 8.
new text begin [3A.17] CONSTITUTIONAL OFFICERS.new text end
5.20
new text begin Subdivision 1.new text end new text begin Application.new text end new text begin (a) This section specifies the retirement plan applicable new text end
5.21
new text begin to a former constitutional officer who was first elected to a constitutional office after July new text end
5.22
new text begin 1, 1967, and before July 1, 1997. The plan includes the applicable portions of chapters new text end
5.23
new text begin 352C and 356 in effect on the date on which the person terminated active service as a new text end
5.24
new text begin constitutional officer.new text end
5.25
new text begin (b) Nothing in this section, this act, or Laws 2006, chapter 271, article 10, section new text end
5.26
new text begin 33, subdivision 2, is intended to increase or reduce the benefits of former constitutional new text end
5.27
new text begin officers or their survivors or to adversely modify their eligibility for benefits in effect new text end
5.28
new text begin as of June 30, 2012.new text end
5.29
new text begin Subd. 2.new text end new text begin Benefit adjustments.new text end new text begin Retirement allowances payable to retired new text end
5.30
new text begin constitutional officers and surviving spouse benefits payable must be adjusted under new text end
5.31
new text begin section 356.415.new text end
5.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
6.1 Sec. 9. Minnesota Statutes 2012, section 352.01, subdivision 17b, is amended to read:
6.2 Subd. 17b.
Duty disability, physical or psychological. "Duty disability, physical
6.3or psychological," for a correctional employee, means an occupational disability that is
6.4the direct result of an injury incurred during, or a disease arising out of, the performance
6.5of normal duties or the performance of less frequent duties either of which are
new text begin present new text end
6.6
new text begin inherent dangers new text end specific to the correctional employee.
6.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
6.8 Sec. 10. Minnesota Statutes 2012, section 352.03, subdivision 8, is amended to read:
6.9 Subd. 8.
Medical adviser. The state commissioner of health or other
new text begin executive new text end
6.10
new text begin director may contract with an accredited independent organization specializing in new text end
6.11
new text begin disability determinations, new text end licensed physician
new text begin physicians, or physicians new text end on the staff of the
6.12commissioner
new text begin of health new text end as
new text begin designated by new text end the commissioner may designate shall
new text begin , tonew text end be the
6.13medical adviser of
new text begin to new text end the director
new text begin systemnew text end .
6.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
6.15 Sec. 11. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
6.16to read:
6.17
new text begin Subd. 3a.new text end new text begin Contribution rate revision; general state employees retirement plan.new text end
6.18
new text begin (a) Notwithstanding the contribution rates stated in plan law, the employee and employer new text end
6.19
new text begin contribution rates for the general state employees retirement plan must be adjusted:new text end
6.20
new text begin (1) if the regular actuarial valuation of the plan under section 356.215 indicates that new text end
6.21
new text begin there is a contribution sufficiency greater than one percent of covered payroll and that the new text end
6.22
new text begin sufficiency has existed for at least two consecutive years, the employee and employer new text end
6.23
new text begin contribution rates must be decreased as determined under paragraph (b) to a level such new text end
6.24
new text begin that the sufficiency is no greater than one percent of covered payroll based on the most new text end
6.25
new text begin recent actuarial valuation; ornew text end
6.26
new text begin (2) if the regular actuarial valuation of the plan under section 356.215 indicates that new text end
6.27
new text begin there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll new text end
6.28
new text begin and that the deficiency has existed for at least two consecutive years, the employee and new text end
6.29
new text begin employer contribution rates must be increased as determined under paragraph (c) to a level new text end
6.30
new text begin such that no deficiency exists based on the most recent actuarial valuation.new text end
6.31
new text begin (b) If the actuarially required contribution of the plan is less than the total support new text end
6.32
new text begin provided by the combined employee and employer contribution rates by more than one new text end
6.33
new text begin percent of covered payroll, the plan employee and employer contribution rates must be new text end
7.1
new text begin decreased incrementally over one or more years by no more than 0.25 percent of pay new text end
7.2
new text begin each for employee and employer contribution rates to a level such that there remains a new text end
7.3
new text begin contribution sufficiency of at least one percent of covered payroll. No contribution rate new text end
7.4
new text begin decrease may be made until at least two years have elapsed since any adjustment under new text end
7.5
new text begin this paragraph has been fully implemented.new text end
7.6
new text begin (c) If the actuarially required contribution exceeds the total support provided by the new text end
7.7
new text begin employee and employer contribution rates, the employee and employer contribution rates new text end
7.8
new text begin must be increased equally to eliminate that contribution deficiency. If the contribution new text end
7.9
new text begin deficiency is:new text end
7.10
new text begin (1) less than two percent, the incremental increase may be up to 0.25 percent each new text end
7.11
new text begin for the employee and employer contribution rates;new text end
7.12
new text begin (2) greater than 1.99 percent and less than 4.01 percent, the incremental increase new text end
7.13
new text begin may be up to 0.5 percent each for the employee and employer contribution rates; ornew text end
7.14
new text begin (3) greater than four percent, the incremental increase may be up to 0.75 percent new text end
7.15
new text begin each for the employee and employer contribution.new text end
7.16
new text begin (d) Any recommended adjustment to the contribution rates must be reported to new text end
7.17
new text begin the chair and the executive director of the Legislative Commission on Pensions and new text end
7.18
new text begin Retirement by January 15 following receipt of the most recent annual actuarial valuation new text end
7.19
new text begin prepared under section new text end
new text begin . The report must include draft legislation to revise the new text end
7.20
new text begin employee and employer contributions stated in plan law. If the Legislative Commission new text end
7.21
new text begin on Pensions and Retirement does not recommend against the rate change or does not new text end
7.22
new text begin recommend a modification in the rate change, the recommended adjustment becomes new text end
7.23
new text begin effective on the first day of the first full payroll period in the fiscal year following receipt new text end
7.24
new text begin of the most recent actuarial valuation that gave rise to the adjustment.new text end
7.25
new text begin (e) A contribution sufficiency of up to one percent of covered payroll must be held new text end
7.26
new text begin in reserve to be used to offset any future actuarially required contributions that are more new text end
7.27
new text begin than the total combined employee and employer contributions.new text end
7.28
new text begin (f) Before any reduction in contributions to eliminate a sufficiency in excess of one new text end
7.29
new text begin percent of covered pay may be recommended, the executive director must review any new text end
7.30
new text begin need for a change in actuarial assumptions, as recommended by the actuary retained under new text end
7.31
new text begin section new text end
new text begin in the most recent experience study of the general employees retirement new text end
7.32
new text begin plan prepared under section new text end
new text begin and the standards for actuarial work promulgated by new text end
7.33
new text begin the Legislative Commission on Pensions and Retirement that may result in an increase new text end
7.34
new text begin in the actuarially required contribution and must report to the Legislative Commission new text end
7.35
new text begin on Pensions and Retirement any recommendation by the board to use the sufficiency new text end
7.36
new text begin exceeding one percent of covered payroll to offset the impact of an actuarial assumption new text end
8.1
new text begin change recommended by the actuary retained under section new text end
new text begin 356.214, subdivision 1new text end new text begin , and new text end
8.2
new text begin reviewed by the actuary retained by the commission under section new text end
new text begin 356.214, subdivision 4new text end new text begin .new text end
8.3
new text begin (g) No contribution sufficiency in excess of one percent of covered pay may be new text end
8.4
new text begin proposed to be used to increase benefits, and no benefit increase may be proposed that new text end
8.5
new text begin would initiate an automatic adjustment to increase contributions under this subdivision. new text end
8.6
new text begin Any proposed benefit improvement must include a recommendation, prepared by the new text end
8.7
new text begin actuary retained under section new text end
new text begin 356.214, subdivision 1new text end new text begin , and reviewed by the actuary new text end
8.8
new text begin retained by the Legislative Commission on Pensions and Retirement as provided under new text end
8.9
new text begin section new text end
new text begin 356.214, subdivision 4new text end new text begin , on how the benefit modification will be funded.new text end
8.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
8.11 Sec. 12. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
8.12to read:
8.13
new text begin Subd. 3b.new text end new text begin Contribution rate revision; correctional state employees retirement new text end
8.14
new text begin plan and State Patrol retirement plan.new text end new text begin (a) Subdivision 3a applies to the correctional new text end
8.15
new text begin state employees retirement plan under this chapter and to the State Patrol retirement plan new text end
8.16
new text begin established under chapter 352B, except as stated in this subdivision.new text end
8.17
new text begin (b) Any limitations on the amount of contribution rate changes stated in subdivision new text end
8.18
new text begin 3a apply only to the amount of the employee contribution revision. The employer new text end
8.19
new text begin contribution for the correctional state employees retirement plan or the State Patrol new text end
8.20
new text begin retirement plan, whichever is applicable, must be adjusted so that the employer new text end
8.21
new text begin contribution is equal to 60 percent of the sum of employee plus employer contributions.new text end
8.22
new text begin (c) For the State Patrol retirement plan, a contribution sufficiency of up to two new text end
8.23
new text begin percent of covered payroll, rather than one percent, may be held in reserves without taking new text end
8.24
new text begin action to reduce employee and employer contributions.new text end
8.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
8.26 Sec. 13. Minnesota Statutes 2012, section 352.113, subdivision 4, is amended to read:
8.27 Subd. 4.
Medical or psychological examinations; authorization for payment of
8.28
benefit. (a)
new text begin Any physician, psychologist, chiropractor, or physician assistant providing new text end
8.29
new text begin any service specified in this section must be licensed.new text end
8.30
new text begin (b) new text end An applicant shall provide medical, chiropractic, or psychological
new text begin a detailed new text end
8.31
new text begin report signed by a physician, and at least one additional report signed by a physician, new text end
8.32
new text begin chiropractor, psychologist, or physician assistant with new text end evidence to support an application
8.33for total and permanent disability.
9.1(b) The director shall have the employee examined by at least one additional
9.2licensed chiropractor, physician, or psychologist designated by the medical adviser. The
9.3chiropractors, physicians, or psychologists shall make written reports to the director
9.4concerning the employee's disability including
new text begin must include an new text end expert opinions as to
9.5
new text begin opinion regarding new text end whether the employee is permanently and totally disabled within
9.6the meaning of section
352.01, subdivision 17new text begin , and that the disability arose before the new text end
9.7
new text begin employee was placed on any paid or unpaid leave of absence or terminated public servicenew text end .
9.8
new text begin (c) If there is medical evidence that supports the expectation that at some point new text end
9.9
new text begin the person applying for the disability benefit will no longer be disabled, the decision new text end
9.10
new text begin granting the disability benefit may provide for a termination date upon which the total and new text end
9.11
new text begin permanent disability can be expected to no longer exist. When a termination date is part new text end
9.12
new text begin of the decision granting benefits, prior to the benefit termination the executive director new text end
9.13
new text begin shall review any evidence provided by the disabled employee to show that the disabling new text end
9.14
new text begin condition for which benefits were initially granted continues. If the benefits cease, the new text end
9.15
new text begin disabled employee may follow the appeal procedures described in section 356.96 or may new text end
9.16
new text begin reapply for disability benefits using the process described in this subdivision.new text end
9.17
new text begin (d) Any claim to disability must be supported by a report from the employer new text end
9.18
new text begin indicating that there is no available work that the employee can perform with the disabling new text end
9.19
new text begin condition and that all reasonable accommodations have been considered. Upon request of new text end
9.20
new text begin the executive director, an employer shall provide evidence of the steps the employer has new text end
9.21
new text begin taken to attempt to provide reasonable accommodations and continued employment to new text end
9.22
new text begin the claimant.new text end
9.23(c)
new text begin (e) new text end The director shall also obtain written certification from the employer
9.24stating whether the employment has ceased or whether the employee is on sick leave of
9.25absence because of a disability that will prevent further service to the employer and as a
9.26consequence
new text begin that new text end the employee is not entitled to compensation from the employer.
9.27(d)
new text begin (f) new text end The medical adviser shall consider the reports of the physicians,
new text begin physician new text end
9.28
new text begin assistants, new text end psychologists, and chiropractors and any other evidence supplied by the
9.29employee or other interested parties. If the medical adviser finds the employee totally and
9.30permanently disabled, the adviser shall make appropriate recommendation to the director
9.31in writing together with the date from which the employee has been totally disabled. The
9.32director shall then determine if the disability occurred within 18 months of filing the
9.33application, while still in the employment of the state, and the propriety of authorizing
9.34payment of a disability benefit as provided in this section.
9.35(e)
new text begin (g) new text end A terminated employee may apply for a disability benefit within 18 months of
9.36termination as long as the disability occurred while in the employment of the state. The
10.1fact that an employee is placed on leave of absence without compensation because of
10.2disability does not bar that employee from receiving a disability benefit.
10.3(f)
new text begin (h) new text end Unless the payment of a disability benefit has terminated because the
10.4employee is no longer totally disabled, or because the employee has reached normal
10.5retirement age as provided in this section, the disability benefit must cease with the last
10.6payment received by the disabled employee or which had accrued during the lifetime of the
10.7employee unless there is a spouse surviving. In that event, the surviving spouse is entitled
10.8to the disability benefit for the calendar month in which the disabled employee died.
10.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
10.10 Sec. 14. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
10.11to read:
10.12
new text begin Subd. 4a.new text end new text begin Independent medical examination or vocational rehabilitation new text end
10.13
new text begin counseling.new text end new text begin Any individual applying for or receiving disability benefits shall submit new text end
10.14
new text begin to an independent medical examination or an assessment by a certified rehabilitation new text end
10.15
new text begin counselor if requested by the executive director or designee. The examination must be new text end
10.16
new text begin paid for by the system.new text end
10.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
10.18 Sec. 15. Minnesota Statutes 2012, section 352.113, subdivision 6, is amended to read:
10.19 Subd. 6.
Regular medical or psychological examinations. At least once each
10.20year during the first five years following the allowance of a disability benefit to any
10.21employee, and at least once in every three-year period thereafter, the director may require
10.22any disabled employee to undergo a
new text begin provide new text end medical, chiropractic, or psychological
10.23examination
new text begin evidence to support the continuation of the total and permanent disabilitynew text end .
10.24The examination must be made at the place of residence of the employee, or at any place
10.25mutually agreed upon,
new text begin evidence must be in a form and manner prescribed by the executive new text end
10.26
new text begin director for review new text end by an expert or experts designated by the medical adviser and engaged
10.27by the director. If any examination indicates
new text begin the medical information provided new text end to the
10.28medical adviser
new text begin indicates new text end that the employee is no longer permanently and totally disabled,
10.29or is engaged in or can engage in a gainful occupation, payments of the disability benefit
10.30by the fund must be discontinued. The payments must be discontinued as soon as the
10.31employee is reinstated to the payroll following
new text begin a new text end sick leave
new text begin of absencenew text end , but in no case may
10.32payment be made for more than 60 days after the medical adviser finds that the employee
10.33is no longer permanently and totally disabled.
11.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
11.2 Sec. 16. Minnesota Statutes 2012, section 352.113, subdivision 8, is amended to read:
11.3 Subd. 8.
Refusal of examination. If a disabled employee
new text begin person applying for a new text end
11.4
new text begin disability benefit new text end refuses to submit to an expert
new text begin a medical or psychological examination, new text end
11.5
new text begin the disability application shall be rejected. If a disability benefit recipient refuses to submit new text end
11.6
new text begin to a medical or psychological new text end examination as required, payments by the fund must be
11.7discontinued and the director shall revoke all rights of the employee in any disability benefit.
11.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
11.9 Sec. 17. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
11.10to read:
11.11
new text begin Subd. 14.new text end new text begin Disabilitant earnings reports.new text end new text begin Disability benefit recipients must report new text end
11.12
new text begin all earnings from reemployment and income from workers' compensation to the system new text end
11.13
new text begin annually by May 15 in a format prescribed by the executive director. If the form is not new text end
11.14
new text begin submitted by June 15, benefits must be suspended effective July 1. If the form deemed new text end
11.15
new text begin acceptable by the executive director is received after the June 15 deadline, benefits shall new text end
11.16
new text begin be reinstated retroactive to July 1.new text end
11.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
11.18 Sec. 18. Minnesota Statutes 2012, section 352.22, subdivision 3, is amended to read:
11.19 Subd. 3.
Deferred annuity. (a) An employee who has at least three years of
11.20allowable service if employed before July 1, 2010, or who has at least five years of
11.21allowable service if employed after June 30, 2010, when termination occurs may elect
11.22to leave the accumulated contributions in the fund and thereby be entitled to a deferred
11.23retirement annuity. The annuity must be computed under the law in effect when state
11.24service terminated, on the basis of the allowable service credited to the person before
11.25the termination of service.
11.26(b) An employee on layoff or on leave of absence without pay, except a leave of
11.27absence for health reasons, and who does not return to state service must have an annuity,
11.28deferred annuity, or other benefit to which the employee may become entitled computed
11.29under the law in effect on the employee's last working day.
11.30(c) No application for a deferred annuity may be made more than 60 days before
11.31the time the former employee reaches the required age for entitlement to the payment of
11.32the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date
12.1the application is filed in the office of the system, but not (1) before the date on which
12.2the employee reaches the required age for entitlement to the annuity nor (2) before the
12.3day following the termination of state service in a position which is not covered by the
12.4retirement system.
12.5(d) Application for the accumulated contributions left on deposit with the fund may
12.6be made at any time following the date of the termination of service.
12.7
new text begin (e) Deferred annuities must be augmented as provided in section 352.72, subdivision new text end
12.8
new text begin 2.new text end
12.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
12.10 Sec. 19. Minnesota Statutes 2012, section 352.955, subdivision 1, is amended to read:
12.11 Subdivision 1.
Election to transfer prior MSRS-general service credit. (a) An
12.12eligible employee described in paragraph (b) may elect to transfer service credit in the
12.13general state employees retirement plan of the Minnesota State Retirement System to the
12.14correctional state employees retirement plan for eligible prior correctional employment.
12.15 (b) An eligible employee is a person who is covered by Laws 2007, chapter 134,
12.16article 3, section 6, or who became eligible for retirement coverage by the correctional
12.17state employees retirement plan of the Minnesota State Retirement System under Laws
12.182006, chapter 271, article 2, Laws 2007, chapter 134, article 3, or legislation implementing
12.19the recommendations under section
352.91, subdivision 4a.
12.20 (c) Eligible prior correctional employment is
new text begin employment new text end covered correctional
12.21service defined in Laws 2007, chapter 134, article 3, section 6, or is employment by the
12.22Department of Corrections or by the Department of Human Services that preceded the
12.23effective date of the retirement coverage transfer under Laws 2006, chapter 271, article
12.242, Laws 2007, chapter 134, article 3, or legislation implementing the recommendations
12.25under section
352.91, subdivision 4anew text begin by the general state employees retirement plan of new text end
12.26
new text begin the Minnesota State Retirement Systemnew text end , is continuous service, and is certified by the
12.27commissioner of corrections and the commissioner of human services, whichever applies,
12.28and by the commissioner of management and budget to the executive director of the
12.29Minnesota State Retirement System as service that would qualify for correctional state
12.30employees retirement plan coverage under section
352.91, if the service was
new text begin had been new text end
12.31rendered after the date of coverage transfer.
12.32 (d) The election to transfer past service credit under this section must be made in
12.33writing by the applicable person on a form prescribed by the executive director of the
12.34Minnesota State Retirement System and must be filed with the executive director of the
12.35Minnesota State Retirement System on or before (1) January 1, 2008, or the one year
13.1anniversary of the coverage transfer, whichever is later, or (2) the date of the eligible
13.2employee's termination of state employment, whichever is earlier.
13.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
13.4 Sec. 20. Minnesota Statutes 2012, section 352.955, subdivision 3, is amended to read:
13.5 Subd. 3.
Payment of additional equivalent contributions; post-June 30, 2007,
13.6
coverage transfers. (a) An eligible employee who is transferred to plan coverage after
13.7June 30, 2007, and who elects to transfer past service credit under this section must pay
13.8an additional member contribution for that prior service period. The additional member
13.9contribution is the amount computed under paragraph (b), plus the greater of the amount
13.10computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability
13.11attributable to the past service credit transfer.
13.12 (b) The executive director shall compute, for the most recent 12 months of service
13.13credit eligible for transfer, or for the entire period eligible for transfer if less than 12
13.14months, the difference between the employee contribution rate or rates for the general state
13.15employees retirement plan and the employee contribution rate or rates for the correctional
13.16state employees retirement plan applied to the eligible employee's salary during that
13.17transfer period, plus compound interest at a monthly rate of 0.71 percent.
13.18 (c) The executive director shall compute, for any service credit being transferred
13.19on behalf of the eligible employee and not included under paragraph (b), the difference
13.20between the employee contribution rate or rates for the general state employees retirement
13.21plan and the employee contribution rate or rates for the correctional state employees
13.22retirement plan applied to the eligible employee's salary during that transfer period, plus
13.23compound interest at a monthly rate of 0.71 percent.
13.24 (d) The executive director shall compute an amount using the process specified in
13.25paragraph (b), but based on differences in employer contribution rates between the general
13.26state employees retirement plan and the correctional state employees retirement plan
13.27rather than employee contribution rates.
13.28 (e) The executive director shall compute an amount using the process specified in
13.29paragraph (c), but based on differences in employer contribution rates between the general
13.30state employees retirement plan and the correctional state employees retirement plan
13.31rather than employee contribution rates.
13.32 (f) The additional equivalent member contribution under this subdivision must be
13.33paid in a lump sum. Payment must accompany the election to transfer the prior service
13.34credit. No transfer election or additional equivalent member contribution payment may be
13.35made by a person or accepted by the executive director after the one year anniversary date
14.1of the effective date of the retirement coverage transfer, or the date on which the eligible
14.2employee terminates state employment, whichever is earlier.
14.3 (g) If an eligible employee elects to transfer past service credit under this section
14.4and pays the additional equivalent member contribution amount under paragraph (a), the
14.5applicable department shall pay an additional equivalent employer contribution amount.
14.6The additional employer contribution is the amount computed under paragraph (d), plus
14.7the greater of the amount computed under paragraph (e), or 60 percent of the unfunded
14.8actuarial accrued liability attributable to the past service credit transfer.
14.9 (h) The unfunded actuarial accrued liability attributable to the past service credit
14.10transfer is the present value of the benefit obtained by the transfer of the service credit
14.11to the correctional state employees retirement plan reduced by the amount of the asset
14.12transfer under subdivision 4, by the amount of the member contribution equivalent
14.13payment computed under paragraph (b), and by the amount of the employer contribution
14.14equivalent payment computed under paragraph (d).
14.15 (i) The additional equivalent employer contribution under this subdivision must be
14.16paid in a lump sum and must be paid within 30 days of the date on which the executive
14.17director of the Minnesota State Retirement System certifies to the applicable department
14.18that the employee paid the additional equivalent member contribution.
14.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
14.20 Sec. 21. Minnesota Statutes 2012, section 352B.011, subdivision 13, is amended to read:
14.21 Subd. 13.
Surviving spouse. "Surviving spouse" means a member's or former
14.22member's legally married spouse who resided with the member or former member at the
14.23time of death and was married to the member or former member, for a period of at least
14.24one year, during or before the time of membership.
14.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
14.26 Sec. 22. Minnesota Statutes 2012, section 352B.10, is amended by adding a
14.27subdivision to read:
14.28
new text begin Subd. 7.new text end new text begin Disabilitant earnings reports.new text end new text begin Disability benefit recipients must report new text end
14.29
new text begin all earnings from reemployment and income from workers' compensation to the system new text end
14.30
new text begin annually by May 15 in a format prescribed by the executive director. If the form is not new text end
14.31
new text begin submitted by June 15, benefits must be suspended effective July 1. If the form deemed new text end
14.32
new text begin acceptable by the executive director is received after the June 15 deadline, benefits shall new text end
14.33
new text begin be reinstated retroactive to July 1.new text end
15.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
15.2 Sec. 23. Minnesota Statutes 2012, section 352D.04, subdivision 2, is amended to read:
15.3 Subd. 2.
Contribution rates. (a) The money used to purchase shares under this
15.4section is the employee and employer contributions provided in this subdivision.
15.5 (b) The employee contribution is an amount equal to the percent of salary specified
15.6in section
352.04, subdivision 2, or
352.045, subdivision 3new text begin 3anew text end .
15.7 (c) The employer contribution is an amount equal to six percent of salary.
15.8 (d) For members of the legislature, the contributions under this subdivision also must
15.9be made on per diem payments received during a regular or special legislative session, but
15.10may not be made on per diem payments received outside of a regular or special legislative
15.11session, on the additional compensation attributable to a leadership position under section
15.123.099
, subdivision 3, living expense payments under section
3.101, or special session
15.13living expense payments under section
3.103.
15.14 (e) For a judge who is a member of the unclassified plan under section
352D.02,
15.15subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
15.16of salary, and there is no employer contribution.
15.17(f) These contributions must be made in the manner provided in section
352.04,
15.18subdivisions 4, 5, and 6.
15.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
15.20 Sec. 24. Minnesota Statutes 2012, section 356.20, subdivision 4, is amended to read:
15.21 Subd. 4.
Contents of financial report. (a) The financial report required by
15.22this section must contain financial statements and disclosures that indicate the financial
15.23operations and position of the retirement plan and fund. The report must conform with
15.24generally accepted governmental accounting principles, applied on a consistent basis. The
15.25report must be audited.
15.26 (b) The report must include, as part of its exhibits or its footnotes, an actuarial
15.27disclosure item based on
new text begin a statement that new text end the actuarial valuation calculations prepared
15.28by the actuary retained under section
356.214 or by the actuary retained by the
15.29retirement fund or plan, whichever applies, according to
new text begin comply with new text end applicable actuarial
15.30requirements enumerated in section
356.215, and specified in the most recent standards
15.31for actuarial work adopted by the Legislative Commission on Pensions and Retirement.
15.32The actuarial value of assets, the actuarial accrued liabilities, including accrued reserves,
15.33 and the unfunded actuarial accrued liability of the fund or plan must be disclosed. The
15.34disclosure item
new text begin report new text end must contain a declaration
new text begin certification new text end by the actuary retained
16.1under section
356.214 or the actuary retained by the fund or plan, whichever applies,
16.2specifying that the required reserves for any retirement, disability, or survivor
new text begin normal new text end
16.3
new text begin cost and the actuarial accrued liabilities for all new text end benefits provided under a benefit formula
16.4 are computed in accordance with the entry age actuarial cost method and in accordance
16.5with the most recent applicable standards for actuarial work adopted by the Legislative
16.6Commission on Pensions and Retirement.
16.7 (c) The report must contain an itemized exhibit describing the administrative
16.8expenses of the plan, including, but not limited to, the following items, classified on a
16.9consistent basis from year to year, and with any further meaningful detail:
16.10 (1) personnel expenses;
16.11 (2) communication-related expenses;
16.12 (3) office building and maintenance expenses;
16.13 (4) professional services fees; and
16.14 (5) other expenses.
16.15 (d) The report must contain an itemized exhibit describing the investment expenses
16.16of the plan, including, but not limited to, the following items, classified on a consistent
16.17basis from year to year, and with any further meaningful detail:
16.18 (1) internal investment-related expenses; and
16.19 (2) external investment-related expenses.
16.20 (e) Any additional statements or exhibits or more detailed or subdivided itemization
16.21of a disclosure item that will enable the management of the plan to portray a true
16.22interpretation of the plan's financial condition must be included in the additional
16.23statements or exhibits.
16.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
16.25 Sec. 25. Minnesota Statutes 2012, section 356.214, subdivision 1, is amended to read:
16.26 Subdivision 1.
Actuary retention. (a) The governing board or managing or
16.27administrative official of each public pension plan and retirement fund or plan enumerated
16.28in paragraph (b) shall contract with an established actuarial consulting firm to conduct
16.29annual actuarial valuations and related services. The principal from the actuarial
16.30consulting firm on the contract must be an approved actuary under section
356.215,
16.31subdivision 1
, paragraph (c).
16.32 (b) Actuarial services must include the preparation of actuarial valuations and
16.33related actuarial work for the following retirement plans:
16.34 (1) the teachers retirement plan, Teachers Retirement Association;
16.35 (2) the general state employees retirement plan, Minnesota State Retirement System;
17.1 (3) the correctional employees retirement plan, Minnesota State Retirement System;
17.2 (4) the State Patrol retirement plan, Minnesota State Retirement System;
17.3 (5) the judges retirement plan, Minnesota State Retirement System;
17.4 (6) the general employees retirement plan, Public Employees Retirement
17.5Association, including the MERF division;
17.6 (7) the public employees police and fire plan, Public Employees Retirement
17.7Association;
17.8 (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
17.9Association;
17.10 (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
17.11Association;
17.12 (10) the legislators retirement plan, Minnesota State Retirement System;
new text begin andnew text end
17.13 (11) the elective state officers retirement plan, Minnesota State Retirement System;
17.14and
17.15 (12)
new text begin (11) the new text end local government correctional service retirement plan, Public
17.16Employees Retirement Association.
17.17
new text begin (c) The actuarial valuation for the legislators retirement plan must include a separate new text end
17.18
new text begin calculation of total plan actuarial accrued liabilities due to constitutional officer coverage new text end
17.19
new text begin under section 3A.17.new text end
17.20 (c)
new text begin (d) new text end The contracts must require completion of the annual actuarial valuation
17.21calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
17.22as specified in section
356.215, and in conformity with the standards for actuarial work
17.23adopted by the Legislative Commission on Pensions and Retirement.
17.24 The contracts must require completion of annual experience data collection and
17.25processing and a quadrennial published experience study for the plans listed in paragraph
17.26(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
17.27the commission. The experience data collection, processing, and analysis must evaluate
17.28the following:
17.29 (1) individual salary progression;
17.30 (2) the rate of return on investments based on the current asset value;
17.31 (3) payroll growth;
17.32 (4) mortality;
17.33 (5) retirement age;
17.34 (6) withdrawal; and
17.35 (7) disablement.
18.1 (d)
new text begin (e) new text end The actuary shall annually prepare a report to the governing or managing
18.2board or administrative official and the legislature, summarizing the results of the actuarial
18.3valuation calculations. The actuary shall include with the report any recommendations
18.4concerning the appropriateness of the support rates to achieve proper funding of
18.5the retirement plans by the required funding dates. The actuary shall, as part of the
18.6quadrennial experience study, include recommendations on the appropriateness of the
18.7actuarial valuation assumptions required for evaluation in the study.
18.8 (e)
new text begin (f) new text end If the actuarial gain and loss analysis in the actuarial valuation calculations
18.9indicates a persistent pattern of sizable gains or losses, the governing or managing board
18.10or administrative official shall direct the actuary to prepare a special experience study for
18.11a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the
18.12manner provided for in the standards for actuarial work adopted by the commission.
18.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
18.14 Sec. 26. Minnesota Statutes 2012, section 356.215, subdivision 1, is amended to read:
18.15 Subdivision 1.
Definitions. (a) For the purposes of sections
3.85 and
356.20 to
18.16356.23
, each of the terms in the following paragraphs has the meaning given.
18.17 (b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
18.18under section
356.214 if so required under section
3.85, or otherwise, by an approved
18.19actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
18.20plan, according to the entry age actuarial cost method and based upon stated assumptions
18.21including, but not limited to rates of interest, mortality, salary increase, disability,
18.22withdrawal, and retirement and to determine the payment necessary to amortize over a
18.23stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
18.24valuation of the benefit plan.
18.25 (c) "Approved actuary" means a person who is regularly engaged in the business of
18.26providing actuarial services and who is a fellow in the Society of Actuaries.
18.27 (d) "Entry age actuarial cost method" means an actuarial cost method under which
18.28the actuarial present value of the projected benefits of each individual currently covered
18.29by the benefit plan and included in the actuarial valuation is allocated on a level basis over
18.30the service of the individual, if the benefit plan is governed by section
69.773, or over the
18.31earnings of the individual, if the benefit plan is governed by any other law, between the
18.32entry age and the assumed exit age, with the portion of the actuarial present value which is
18.33allocated to the valuation year to be the normal cost and the portion of the actuarial present
18.34value not provided for at the valuation date by the actuarial present value of future normal
18.35costs to be the actuarial accrued liability, with aggregation in the calculation process to be
19.1the sum of the calculated result for each covered individual and with recognition given to
19.2any different benefit formulas which may apply to various periods of service.
19.3 (e) "Experience study" means a report providing experience data and an actuarial
19.4analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
19.5based.
19.6 (f) "Actuarial value of assets" means:
19.7 (1) For the July 1, 2012, actuarial valuation, the market value of all assets as of
19.8June 30, 2012, reduced by:
19.9 (i) 20 percent of the difference between the actual net change in the market value of
19.10assets other than the Minnesota postretirement investment fund between June 30, 2009,
19.11and June 30, 2008, and the computed increase in the market value of assets other than the
19.12Minnesota postretirement investment fund over that fiscal year period if the assets had
19.13earned a rate of return on assets equal to the annual percentage preretirement interest rate
19.14assumption used in the actuarial valuation for July 1, 2008;
19.15 (ii) 40 percent of the difference between the actual net change in the market value of
19.16total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
19.17market value of total assets over that fiscal year period if the assets had earned a rate of
19.18return on assets equal to the annual percentage preretirement interest rate assumption used
19.19in the actuarial valuation for July 1, 2009;
19.20 (iii) 60 percent of the difference between the actual net change in the market value
19.21of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
19.22market value of total assets over that fiscal year period if the assets had earned a rate of
19.23return on assets equal to the annual percentage preretirement interest rate assumption used
19.24in the actuarial valuation for July 1, 2010;
19.25 (iv) 80 percent of the difference between the actual net change in the market value of
19.26total assets between June 30, 2012, and June 30, 2011, and the computed increase in the
19.27market value of total assets over that fiscal year period if the assets had earned a rate of
19.28return on assets equal to the annual percentage preretirement interest rate assumption used
19.29in the actuarial valuation for July 1, 2011; and
19.30 (v) if applicable, 20 percent of the difference between the actual net change in the
19.31market value of the Minnesota postretirement investment fund between June 30, 2009,
19.32and June 30, 2008, and the computed increase in the market value of assets over that fiscal
19.33year period if the assets had increased at 8.5 percent annually.
19.34 (2) For the July 1, 2013, and following actuarial valuations, the market value of all
19.35assets as of the preceding June 30, reduced by:
20.1 (i)
new text begin (1)new text end 20 percent of the difference between the actual net change in the market value
20.2of total assets between the June 30 that occurred three years earlier and the June 30 that
20.3occurred four years earlier and the computed increase in the market value of total assets
20.4over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.5annual percentage preretirement interest rate assumption used in the actuarial valuation
20.6for the July 1 that occurred four years earlier;
20.7 (ii)
new text begin (2)new text end 40 percent of the difference between the actual net change in the market value
20.8of total assets between the June 30 that occurred two years earlier and the June 30 that
20.9occurred three years earlier and the computed increase in the market value of total assets
20.10over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.11annual percentage preretirement interest rate assumption used in the actuarial valuation
20.12for the July 1 that occurred three years earlier;
20.13 (iii)
new text begin (3)new text end 60 percent of the difference between the actual net change in the market
20.14value of total assets between the June 30 that occurred one year earlier and the June 30 that
20.15occurred two years earlier and the computed increase in the market value of total assets
20.16over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.17annual percentage preretirement interest rate assumption used in the actuarial valuation
20.18for the July 1 that occurred two years earlier; and
20.19 (iv)
new text begin (4)new text end 80 percent of the difference between the actual net change in the market
20.20value of total assets between the most recent June 30 and the June 30 that occurred
20.21one year earlier and the computed increase in the market value of total assets over that
20.22fiscal year period if the assets had earned a rate of return on assets equal to the annual
20.23percentage preretirement interest rate assumption used in the actuarial valuation for the
20.24July 1 that occurred one year earlier.
20.25 (g) "Unfunded actuarial accrued liability" means the total current and expected
20.26future benefit obligations, reduced by the sum of the actuarial value of assets and the
20.27present value of future normal costs.
20.28 (h) "Pension benefit obligation" means the actuarial present value of credited
20.29projected benefits, determined as the actuarial present value of benefits estimated to be
20.30payable in the future as a result of employee service attributing an equal benefit amount,
20.31including the effect of projected salary increases and any step rate benefit accrual rate
20.32differences, to each year of credited and expected future employee service.
20.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
20.34 Sec. 27. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
21.1 Subd. 8.
Interest and salary assumptions. (a) The actuarial valuation must use
21.2the applicable following preretirement interest assumption and the applicable following
21.3postretirement interest assumption:
21.4(1) select and ultimate interest rate assumption
21.5
21.6
21.7
21.8
plan
ultimate
preretirement
interest rate
assumption
ultimate
postretirement
interest rate
assumption
21.9
general state employees retirement plan
8.5%
6.0%
21.10
correctional state employees retirement plan
8.5
6.0
21.11
State Patrol retirement plan
8.5
6.0
21.12
21.13
21.14
legislators retirement plannew text begin , and for the new text end
new text begin constitutional officers calculation of total plan new text end
new text begin liabilitiesnew text end
0.0
-2.0 until June 30,
2040, and -2.5 after
June 30, 2040 new text begin 0.0new text end
21.15
21.16
21.17
elective state officers retirement plan
0.0
-2.0 until June 30,
2040, and -2.5 after
June 30, 2040
21.18
judges retirement plan
8.5
6.0
21.19
general public employees retirement plan
8.5
6.0
21.20
public employees police and fire retirement plan
8.5
6.0
21.21
21.22
local government correctional service
retirement plan
8.5
6.0
21.23
teachers retirement plan
8.5
6.0
21.24
Duluth teachers retirement plan
8.5
8.5
21.25
St. Paul teachers retirement plan
8.5
8.5
21.26Except for the legislators retirement plan and the elective state
new text begin constitutional new text end officers
21.27retirement plan
new text begin calculation of total plan liabilitiesnew text end , the select preretirement interest rate
21.28assumption for the period after June 30, 2012, through June 30, 2017, is 8.0 percent.
21.29Except for the legislators retirement plan and the elective state
new text begin constitutional new text end officers
21.30retirement plan
new text begin calculation of total plan liabilitiesnew text end , the select postretirement interest rate
21.31assumption for the period after June 30, 2012, through June 30, 2017, is 5.5 percent,
21.32except for the Duluth teachers retirement plan and the St. Paul teachers retirement plan,
21.33each with a select postretirement interest rate assumption for the period after June 30,
21.342012, through June 30, 2017, of 8.0 percent.
21.35(2) single rate preretirement and postretirement interest rate assumption
21.36
21.37
plan
interest rate
assumption
21.38
Bloomington Fire Department Relief Association
6.0
21.39
21.40
local monthly benefit volunteer firefighters relief
associations
5.0
22.1 (b) The actuarial valuation must use the applicable following single rate future salary
22.2increase assumption, the applicable following modified single rate future salary increase
22.3assumption, or the applicable following graded rate future salary increase assumption:
22.4 (1) single rate future salary increase assumption
22.5
plan
future salary increase assumption
22.6
legislators retirement plan
5.0%
22.7
judges retirement plan
3.0
22.8
22.9
Bloomington Fire Department Relief
Association
4.0
22.10 (2) age-related future salary increase age-related select and ultimate future salary
22.11increase assumption or graded rate future salary increase assumption
22.12
plan
future salary increase assumption
22.13
local government correctional service retirement plan
assumption C
22.14
Duluth teachers retirement plan
assumption A
22.15
St. Paul teachers retirement plan
assumption B
22.16For plans other than the Duluth teachers
22.17retirement plan, the select calculation
22.18is: during the designated select period, a
22.19designated percentage rate is multiplied by
22.20the result of the designated integer minus T,
22.21where T is the number of completed years
22.22of service, and is added to the applicable
22.23future salary increase assumption. The
22.24designated select period is ten years and the
22.25designated integer is ten for all retirement
22.26plans covered by this clause. The designated
22.27percentage rate is 0.3 percent for the St. Paul
22.28Teachers Retirement Fund Association. The
22.29select calculation for the Duluth Teachers
22.30Retirement Fund Association is 8.00 percent
22.31per year for service years one through seven,
22.327.25 percent per year for service years seven
22.33and eight, and 6.50 percent per year for
22.34service years eight and nine.
22.35 The ultimate future salary increase assumption is:
22.36
age
A
B
C
22.37
16
8.00%
6.90%
9.00%
23.1
17
8.00
6.90
9.00
23.2
18
8.00
6.90
9.00
23.3
19
8.00
6.90
9.00
23.4
20
6.90
6.90
9.00
23.5
21
6.90
6.90
8.75
23.6
22
6.90
6.90
8.50
23.7
23
6.85
6.85
8.25
23.8
24
6.80
6.80
8.00
23.9
25
6.75
6.75
7.75
23.10
26
6.70
6.70
7.50
23.11
27
6.65
6.65
7.25
23.12
28
6.60
6.60
7.00
23.13
29
6.55
6.55
6.75
23.14
30
6.50
6.50
6.75
23.15
31
6.45
6.45
6.50
23.16
32
6.40
6.40
6.50
23.17
33
6.35
6.35
6.50
23.18
34
6.30
6.30
6.25
23.19
35
6.25
6.25
6.25
23.20
36
6.20
6.20
6.00
23.21
37
6.15
6.15
6.00
23.22
38
6.10
6.10
6.00
23.23
39
6.05
6.05
5.75
23.24
40
6.00
6.00
5.75
23.25
41
5.90
5.95
5.75
23.26
42
5.80
5.90
5.50
23.27
43
5.70
5.85
5.25
23.28
44
5.60
5.80
5.25
23.29
45
5.50
5.75
5.00
23.30
46
5.40
5.70
5.00
23.31
47
5.30
5.65
5.00
23.32
48
5.20
5.60
5.00
23.33
49
5.10
5.55
5.00
23.34
50
5.00
5.50
5.00
23.35
51
4.90
5.45
5.00
23.36
52
4.80
5.40
5.00
23.37
53
4.70
5.35
5.00
23.38
54
4.60
5.30
5.00
23.39
55
4.50
5.25
4.75
23.40
56
4.40
5.20
4.75
23.41
57
4.30
5.15
4.50
23.42
58
4.20
5.10
4.25
23.43
59
4.10
5.05
4.25
24.1
60
4.00
5.00
4.25
24.2
61
3.90
5.00
4.25
24.3
62
3.80
5.00
4.25
24.4
63
3.70
5.00
4.25
24.5
64
3.60
5.00
4.25
24.6
65
3.50
5.00
4.00
24.7
66
3.50
5.00
4.00
24.8
67
3.50
5.00
4.00
24.9
68
3.50
5.00
4.00
24.10
69
3.50
5.00
4.00
24.11
70
3.50
5.00
4.00
24.12(3) service-related ultimate future salary increase assumption
24.13
24.14
general state employees retirement plan of the
Minnesota State Retirement System
assumption A
24.15
24.16
general employees retirement plan of the Public
Employees Retirement Association
assumption B
24.17
Teachers Retirement Association
assumption C
24.18
public employees police and fire retirement plan
assumption D
24.19
State Patrol retirement plan
assumption E
24.20
24.21
correctional state employees retirement plan of the
Minnesota State Retirement System
assumption F
24.22
24.23
service
length
A
B
C
D
E
F
24.24
1
10.50%
12.03%
12.00%
13.00%
8.00%
6.00%
24.25
2
8.10
8.90
9.00
11.00
7.50
5.85
24.26
3
6.90
7.46
8.00
9.00
7.00
5.70
24.27
4
6.20
6.58
7.50
8.00
6.75
5.55
24.28
5
5.70
5.97
7.25
6.50
6.50
5.40
24.29
6
5.30
5.52
7.00
6.10
6.25
5.25
24.30
7
5.00
5.16
6.85
5.80
6.00
5.10
24.31
8
4.70
4.87
6.70
5.60
5.85
4.95
24.32
9
4.50
4.63
6.55
5.40
5.70
4.80
24.33
10
4.40
4.42
6.40
5.30
5.55
4.65
24.34
11
4.20
4.24
6.25
5.20
5.40
4.55
24.35
12
4.10
4.08
6.00
5.10
5.25
4.45
24.36
13
4.00
3.94
5.75
5.00
5.10
4.35
24.37
14
3.80
3.82
5.50
4.90
4.95
4.25
24.38
15
3.70
3.70
5.25
4.80
4.80
4.15
24.39
16
3.60
3.60
5.00
4.80
4.65
4.05
24.40
17
3.50
3.51
4.75
4.80
4.50
3.95
24.41
18
3.50
3.50
4.50
4.80
4.35
3.85
24.42
19
3.50
3.50
4.25
4.80
4.20
3.75
24.43
20
3.50
3.50
4.00
4.80
4.05
3.75
25.1
21
3.50
3.50
3.90
4.70
4.00
3.75
25.2
22
3.50
3.50
3.80
4.60
4.00
3.75
25.3
23
3.50
3.50
3.70
4.50
4.00
3.75
25.4
24
3.50
3.50
3.60
4.50
4.00
3.75
25.5
25
3.50
3.50
3.50
4.50
4.00
3.75
25.6
26
3.50
3.50
3.50
4.50
4.00
3.75
25.7
27
3.50
3.50
3.50
4.50
4.00
3.75
25.8
28
3.50
3.50
3.50
4.50
4.00
3.75
25.9
29
3.50
3.50
3.50
4.50
4.00
3.75
25.10
30 or more
3.50
3.50
3.50
4.50
4.00
3.75
25.11 (c) The actuarial valuation must use the applicable following payroll growth
25.12assumption for calculating the amortization requirement for the unfunded actuarial
25.13accrued liability where the amortization retirement is calculated as a level percentage
25.14of an increasing payroll:
25.15
plan
payroll growth assumption
25.16
25.17
general state employees retirement plan of the
Minnesota State Retirement System
3.75%
25.18
correctional state employees retirement plan
3.75
25.19
State Patrol retirement plan
3.75
25.20
judges retirement plan
3.00
25.21
25.22
general employees retirement plan of the Public
Employees Retirement Association
3.75
25.23
public employees police and fire retirement plan
3.75
25.24
local government correctional service retirement plan
3.75
25.25
teachers retirement plan
3.75
25.26
Duluth teachers retirement plan
4.50
25.27
St. Paul teachers retirement plan
5.00
25.28 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
25.29different salary assumption or a different payroll increase assumption:
25.30 (1) has been proposed by the governing board of the applicable retirement plan;
25.31 (2) is accompanied by the concurring recommendation of the actuary retained under
25.32section
356.214, subdivision 1, if applicable, or by the approved actuary preparing the
25.33most recent actuarial valuation report if section
356.214 does not apply; and
25.34 (3) has been approved or deemed approved under subdivision 18.
25.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
25.36 Sec. 28. Minnesota Statutes 2012, section 356.30, subdivision 3, is amended to read:
25.37 Subd. 3.
Covered plans. This section applies to the following retirement plans:
26.1(1) the general state employees retirement plan of the Minnesota State Retirement
26.2System, established under chapter 352;
26.3(2) the correctional state employees retirement plan of the Minnesota State
26.4Retirement System, established under chapter 352;
26.5(3) the unclassified employees retirement program, established under chapter 352D;
26.6(4) the State Patrol retirement plan, established under chapter 352B;
26.7(5) the legislators retirement plan, established under chapter 3A
new text begin , including new text end
26.8
new text begin constitutional officers as specified in that chapternew text end ;
26.9(6) the elective state officers retirement plan, established under chapter 352C;
26.10(7)
new text begin (6) new text end the general employees retirement plan of the Public Employees Retirement
26.11Association, established under chapter 353, including the MERF division of the Public
26.12Employees Retirement Association;
26.13(8)
new text begin (7) new text end the public employees police and fire retirement plan of the Public Employees
26.14Retirement Association, established under chapter 353;
26.15(9)
new text begin (8) new text end the local government correctional service retirement plan of the Public
26.16Employees Retirement Association, established under chapter 353E;
26.17(10)
new text begin (9)new text end the Teachers Retirement Association, established under chapter 354;
26.18(11)
new text begin (10) new text end the St. Paul Teachers Retirement Fund Association, established under
26.19chapter 354A;
26.20(12)
new text begin (11) new text end the Duluth Teachers Retirement Fund Association, established under
26.21chapter 354A; and
26.22(13)
new text begin (12) new text end the judges retirement fund, established by chapter 490.
26.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
26.24 Sec. 29. Minnesota Statutes 2012, section 356.401, subdivision 3, is amended to read:
26.25 Subd. 3.
Covered retirement plans. The provisions of this section apply to the
26.26following retirement plans:
26.27(1) the legislators retirement plan, established by chapter 3A
new text begin , including constitutional new text end
26.28
new text begin officers as specified in that chapternew text end ;
26.29(2) the general state employees retirement plan of the Minnesota State Retirement
26.30System, established by chapter 352;
26.31(3) the correctional state employees retirement plan of the Minnesota State
26.32Retirement System, established by chapter 352;
26.33(4) the State Patrol retirement plan, established by chapter 352B;
26.34(5) the elective state officers retirement plan, established by chapter 352C;
27.1(6)
new text begin (5) new text end the unclassified state employees retirement program, established by chapter
27.2352D;
27.3(7)
new text begin (6) new text end the general employees retirement plan of the Public Employees Retirement
27.4Association, established by chapter 353, including the MERF division of the Public
27.5Employees Retirement Association;
27.6(8)
new text begin (7) new text end the public employees police and fire plan of the Public Employees Retirement
27.7Association, established by chapter 353;
27.8(9)
new text begin (8) new text end the public employees defined contribution plan, established by chapter 353D;
27.9(10)
new text begin (9) new text end the local government correctional service retirement plan of the Public
27.10Employees Retirement Association, established by chapter 353E;
27.11(11)
new text begin (10) new text end the voluntary statewide lump-sum volunteer firefighter retirement plan,
27.12established by chapter 353G;
27.13(12)
new text begin (11) new text end the Teachers Retirement Association, established by chapter 354;
27.14(13)
new text begin (12) new text end the Duluth Teachers Retirement Fund Association, established by chapter
27.15354A;
27.16(14)
new text begin (13) new text end the St. Paul Teachers Retirement Fund Association, established by chapter
27.17354A;
27.18(15)
new text begin (14) new text end the individual retirement account plan, established by chapter 354B;
27.19(16)
new text begin (15) new text end the higher education supplemental retirement plan, established by chapter
27.20354C; and
27.21(17)
new text begin (16) new text end the judges retirement fund, established by chapter 490.
27.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
27.23 Sec. 30. Minnesota Statutes 2012, section 356.415, subdivision 1a, is amended to read:
27.24 Subd. 1a.
Annual postretirement adjustments; Minnesota State Retirement
27.25
System plans other than State Patrol retirement plan. (a) Retirement annuity, disability
27.26benefit, or survivor benefit recipients of the legislators retirement plan
new text begin plans, including new text end
27.27
new text begin constitutional officers as specified in chapter 3Anew text end , the general state employees retirement
27.28plan, the correctional state employees retirement plan, the elected state officers retirement
27.29plan, the unclassified state employees retirement program, and the judges retirement plan
27.30are entitled to a postretirement adjustment annually on January 1, as follows:
27.31(1) a postretirement increase of two percent must be applied each year, effective
27.32on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
27.33who has been receiving an annuity or a benefit for at least 18 full months before the
27.34January 1 increase; and
28.1(2) for each annuitant or benefit recipient who has been receiving an annuity or
28.2a benefit for at least six full months, an annual postretirement increase of 1/12 of two
28.3percent for each month that the person has been receiving an annuity or benefit must be
28.4applied, effective January 1, following the calendar year in which the person has been
28.5retired for at least six months, but has been retired for less than 18 months.
28.6(b) The increases provided by this subdivision commence on January 1, 2011.
28.7Increases under this subdivision for the general state employees retirement plan, the
28.8correctional state employees retirement plan, or the judges retirement plan terminate
28.9on December 31 of the calendar year in which the actuarial valuation prepared by the
28.10approved actuary under sections
356.214 and
356.215 and the standards for actuarial work
28.11promulgated by the Legislative Commission on Pensions and Retirement indicates that the
28.12market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial
28.13accrued liability of the retirement plan and increases under subdivision 1 recommence
28.14after that date. Increases under this subdivision for the legislators retirement plan or the
28.15elected state officers retirement plan terminate on December 31 of the calendar year in
28.16which the actuarial valuation prepared by the approved actuary under sections
356.214 and
28.17356.215
and the standards for actuarial work promulgated by the Legislative Commission
28.18on Pensions and Retirement indicates that the market value of assets of the general state
28.19employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability
28.20of the retirement plan and increases under subdivision 1 recommence after that date.
28.21(c) An increase in annuity or benefit payments under this subdivision must be made
28.22automatically unless written notice is filed by the annuitant or benefit recipient with the
28.23executive director of the applicable covered retirement plan requesting that the increase
28.24not be made.
28.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
28.26 Sec. 31. Minnesota Statutes 2012, section 356.415, subdivision 2, is amended to read:
28.27 Subd. 2.
Covered retirement plans. The provisions of this section apply to the
28.28following retirement plans:
28.29(1) the legislators retirement plan established under chapter 3A
new text begin , including new text end
28.30
new text begin constitutional officers as specified in that chapternew text end ;
28.31(2) the correctional state employees retirement plan of the Minnesota State
28.32Retirement System established under chapter 352;
28.33(3) the general state employees retirement plan of the Minnesota State Retirement
28.34System established under chapter 352;
28.35(4) the State Patrol retirement plan established under chapter 352B;
29.1(5) the elective state officers retirement plan established under chapter 352C;
29.2(6)
new text begin (5) new text end the general employees retirement plan of the Public Employees Retirement
29.3Association established under chapter 353, including the MERF division of the Public
29.4Employees Retirement Association;
29.5(7)
new text begin (6) new text end the public employees police and fire retirement plan of the Public Employees
29.6Retirement Association established under chapter 353;
29.7(8)
new text begin (7) new text end the local government correctional employees retirement plan of the Public
29.8Employees Retirement Association established under chapter 353E;
29.9(9)
new text begin (8) new text end the teachers retirement plan established under chapter 354; and
29.10(10)
new text begin (9) new text end the judges retirement plan established under chapter 490.
29.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
29.12 Sec. 32.
new text begin APPLICATION AND INTENT.new text end
29.13
new text begin Sections 2 to 8 and 25 to 31 merge the remaining provisions of the elective new text end
29.14
new text begin state officers retirement plan into the legislators retirement plan chapter to achieve new text end
29.15
new text begin administrative savings, including reduced cost for actuarial calculations. Nothing in those new text end
29.16
new text begin sections should be interpreted as modifying benefits or benefit eligibility compared to law new text end
29.17
new text begin in effect immediately before the effective date of this section.new text end
29.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
29.19 Sec. 33.
new text begin REPEALER.new text end
29.20
new text begin (a)new text end new text begin Minnesota Statutes 2012, sections 3A.02, subdivision 3; 352C.001; 352C.091, new text end
29.21
new text begin subdivision 1; and 352C.10,new text end new text begin are repealed.new text end
29.22
new text begin (b)new text end new text begin Minnesota Statutes 2012, sections 352.045, subdivisions 3 and 4; and 352.955, new text end
29.23
new text begin subdivision 2,new text end new text begin are repealed.new text end
29.24
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective July 1, 2013. Paragraph (b) is new text end
29.25
new text begin effective the day following final enactment.new text end
29.26
ARTICLE 3
29.27
PERA ADMINISTRATIVE PROVISIONS
29.28 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
29.29 Subd. 2b.
Excluded employees. (a) The following public employees are not eligible
29.30to participate as members of the association with retirement coverage by the general
30.1employees retirement plan, the local government correctional employees retirement plan
30.2under chapter 353E, or the public employees police and fire retirement plan:
30.3 (1) persons whose salary from one governmental subdivision never exceeds $425 in
30.4a month;
30.5(2) public officers who are elected to a governing body, city mayors, or persons who
30.6are appointed to fill a vacancy in an elective office of a governing body, whose term of office
30.7commences on or after July 1, 2002, for the service to be rendered in that elective position;
30.8 (3) election officers or election judges;
30.9 (4) patient and inmate personnel who perform services for a governmental
30.10subdivision;
30.11 (5) except as otherwise specified in subdivision 12a, employees who are hired for
30.12a temporary position as defined under subdivision 12a, and employees who resign from
30.13a nontemporary position and accept a temporary position within 30 days in the same
30.14governmental subdivision;
30.15 (6) employees who are employed by reason of work emergency caused by fire,
30.16flood, storm, or similar disaster;
30.17 (7) employees who by virtue of their employment in one governmental subdivision
30.18are required by law to be a member of and to contribute to any of the plans or funds
30.19administered by the Minnesota State Retirement System, the Teachers Retirement
30.20Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers
30.21Retirement Fund Association, or any police or firefighters relief association governed by
30.22section
69.77 that has not consolidated with the Public Employees Retirement Association,
30.23or any local police or firefighters consolidation account who have not elected the type of
30.24benefit coverage provided by the public employees police and fire fund under sections
30.25353A.01
to
353A.10, or any persons covered by section
353.665, subdivision 4, 5, or 6,
30.26who have not elected public employees police and fire plan benefit coverage. This clause
30.27must not be construed to prevent a person from being a member of and contributing to
30.28the Public Employees Retirement Association and also belonging to and contributing to
30.29another public pension plan or fund for other service occurring during the same period
30.30of time. A person who meets the definition of "public employee" in subdivision 2 by
30.31virtue of other service occurring during the same period of time becomes a member of the
30.32association unless contributions are made to another public retirement fund on the salary
30.33based on the other service or to the Teachers Retirement Association by a teacher as
30.34defined in section
354.05, subdivision 2;
30.35 (8) persons who are members of a religious order and are excluded from coverage
30.36under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
31.1performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
31.2as amended through January 1, 1987, if no irrevocable election of coverage has been made
31.3under section 3121(r) of the Internal Revenue Code of 1954, as amended;
31.4 (9) employees of a governmental subdivision who have not reached the age of
31.523 and are enrolled on a full-time basis to attend or are attending classes on a full-time
31.6basis at an accredited school, college, or university in an undergraduate, graduate, or
31.7professional-technical program, or a public or charter high school;
31.8 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
31.9interns who are serving in a degree or residency program in public hospitals or clinics;
31.10 (11) students who are serving
new text begin for up to five years new text end in an internship or residency program
31.11sponsored by
new text begin a governmental subdivision, including new text end an accredited educational institution;
31.12 (12) persons who hold a part-time adult supplementary technical college license who
31.13render part-time teaching service in a technical college;
31.14 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
31.15foreign citizens who are employed by a governmental subdivision under a work permit, or
31.16an H-1b visa initially issued or extended for a combined period less than three years of
31.17employment. Upon extension of the employment beyond the three-year period, the foreign
31.18citizens must be reported for membership beginning the first of the month thereafter
31.19provided the monthly earnings threshold as provided under subdivision 2a is met;
31.20 (14) public hospital employees who elected not to participate as members of the
31.21association before 1972 and who did not elect to participate from July 1, 1988, to October
31.221, 1988;
31.23 (15) except as provided in section
353.86, volunteer ambulance service personnel, as
31.24defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
31.25may still qualify as public employees under subdivision 2 and may be members of the
31.26Public Employees Retirement Association and participants in the general employees
31.27retirement plan or the public employees police and fire plan, whichever applies, on the
31.28basis of compensation received from public employment service other than service as
31.29volunteer ambulance service personnel;
31.30 (16) except as provided in section
353.87, volunteer firefighters, as defined in
31.31subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
31.32but a person who is a volunteer firefighter may still qualify as a public employee under
31.33subdivision 2 and may be a member of the Public Employees Retirement Association and
31.34a participant in the general employees retirement plan or the public employees police
31.35and fire plan, whichever applies, on the basis of compensation received from public
31.36employment activities other than those as a volunteer firefighter;
32.1 (17) pipefitters and associated trades personnel employed by Independent School
32.2District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
32.3pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
32.4if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
32.5241, article 2, section 12;
32.6 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
32.7are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
32.8who have retirement coverage under a collective bargaining agreement by the Electrical
32.9Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
32.10or the pension plan applicable to Carpenters Local 87 who were either first employed after
32.11May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
32.12Laws 2000, chapter 461, article 7, section 5;
32.13 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
32.14painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
32.15or Independent School District No. 625, St. Paul, with coverage under a collective
32.16bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
32.17the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
32.18pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
32.19Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
32.20first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
32.21Session chapter 10, article 10, section 6;
32.22 (20) plumbers who are employed by the Metropolitan Airports Commission, with
32.23coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
32.24who either were first employed after May 1, 2001, or if first employed before May 2,
32.252001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
32.2610, section 6;
32.27 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
32.28subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
32.29days or less in each year of employment with the governmental subdivision;
32.30 (22) persons who are provided supported employment or work-study positions by a
32.31governmental subdivision and who participate in an employment or industries program
32.32maintained for the benefit of these persons where the governmental subdivision limits
32.33the position's duration
new text begin up new text end to three
new text begin five new text end years or less, including persons participating in a
32.34federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
32.35unemployment relief program where the training or work experience is not provided as a
32.36part of, or for, future permanent public employment;
33.1 (23) independent contractors and the employees of independent contractors;
33.2 (24) reemployed annuitants of the association during the course of that
33.3reemployment; and
33.4(25) persons appointed to serve on a board or commission of a governmental
33.5subdivision or an instrumentality thereof.
33.6(b) Any person performing the duties of a public officer in a position defined in
33.7subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
33.8employee of an independent contractor.
33.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
33.10 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
33.11 Subd. 16.
Allowable service; limits and computation. (a) "Allowable service"
33.12means:
33.13 (1) service during years of actual membership in the course of which employee
33.14deductions were withheld from salary and contributions were made at the applicable rates
33.15under section
353.27,
353.65, or
353E.03;
33.16(2) periods of service covered by payments in lieu of salary deductions under
33.17sections
353.27, subdivision 12, and
353.35;
33.18 (3) service in years during which the public employee was not a member but for
33.19which the member later elected, while a member, to obtain credit by making payments to
33.20the fund as permitted by any law then in effect;
33.21 (4) a period of authorized leave of absence with pay from which deductions for
33.22employee contributions are made, deposited, and credited to the fund;
33.23 (5) a period of authorized personal, parental, or medical leave of absence without
33.24pay, including a leave of absence covered under the federal Family Medical Leave Act,
33.25that does not exceed one year, and for which a member obtained service credit for each
33.26month in the leave period by payment under section
353.0161 to the fund made in place of
33.27salary deductions. An employee must return to public service and render a minimum of
33.28three months of allowable service in order to be eligible to make payment under section
33.29353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
33.30employee must be granted allowable service credit for the purchased period;
33.31 (6) a periodic, repetitive leave that is offered to all employees of a governmental
33.32subdivision. The leave program may not exceed 208 hours per annual normal work cycle
33.33as certified to the association by the employer. A participating member obtains service
33.34credit by making employee contributions in an amount or amounts based on the member's
33.35average salary, excluding overtime pay, that would have been paid if the leave had not been
34.1taken. The employer shall pay the employer and additional employer contributions on
34.2behalf of the participating member. The employee and the employer are responsible to pay
34.3interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
34.4from the end of the normal cycle until full payment is made. An employer shall also make
34.5the employer and additional employer contributions, plus 8.5 percent interest, compounded
34.6annually, on behalf of an employee who makes employee contributions but terminates
34.7public service. The employee contributions must be made within one year after the end of
34.8the annual normal working cycle or within 30 days after termination of public service,
34.9whichever is sooner. The executive director shall prescribe the manner and forms to be
34.10used by a governmental subdivision in administering a periodic, repetitive leave. Upon
34.11payment, the member must be granted allowable service credit for the purchased period;
34.12 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
34.13months allowable service per authorized temporary or seasonal layoff in one calendar year.
34.14An employee who has received the maximum service credit allowed for an authorized
34.15temporary or seasonal layoff must return to public service and must obtain a minimum of
34.16three months of allowable service subsequent to the layoff in order to receive allowable
34.17service for a subsequent authorized temporary or seasonal layoff;
34.18 (8) a period during which a member is absent from employment by a governmental
34.19subdivision by reason of service in the uniformed services, as defined in United States
34.20Code, title 38, section 4303(13), if the member returns to public service with the same
34.21governmental subdivision upon discharge from service in the uniformed service within the
34.22time frames required under United States Code, title 38, section 4312(e), provided that
34.23the member did not separate from uniformed service with a dishonorable or bad conduct
34.24discharge or under other than honorable conditions. The service must be credited if the
34.25member pays into the fund equivalent employee contributions based upon the contribution
34.26rate or rates in effect at the time that the uniformed service was performed multiplied
34.27by the full and fractional years being purchased and applied to the annual salary rate.
34.28The annual salary rate is the average annual salary, excluding overtime pay, during the
34.29purchase period that the member would have received if the member had continued to
34.30be employed in covered employment rather than to provide uniformed service, or, if
34.31the determination of that rate is not reasonably certain, the annual salary rate is the
34.32member's average salary rate, excluding overtime pay, during the 12-month period of
34.33covered employment rendered immediately preceding the period of the uniformed service.
34.34Payment of the member equivalent contributions must be made during a period that begins
34.35with the date on which the individual returns to public employment and that is three times
34.36the length of the military leave period, or within five years of the date of discharge from
35.1the military service, whichever is less. If the determined payment period is less than
35.2one year, the contributions required under this clause to receive service credit may be
35.3made within one year of the discharge date. Payment may not be accepted following 30
35.4days after termination of public service under subdivision 11a. If the member equivalent
35.5contributions provided for in this clause are not paid in full, the member's allowable
35.6service credit must be prorated by multiplying the full and fractional number of years of
35.7uniformed service eligible for purchase by the ratio obtained by dividing the total member
35.8contributions received by the total member contributions otherwise required under this
35.9clause. The equivalent employer contribution, and, if applicable, the equivalent additional
35.10employer contribution must be paid by the governmental subdivision employing the
35.11member if the member makes the equivalent employee contributions. The employer
35.12payments must be made from funds available to the employing unit, using the employer
35.13and additional employer contribution rate or rates in effect at the time that the uniformed
35.14service was performed, applied to the same annual salary rate or rates used to compute the
35.15equivalent member contribution. The governmental subdivision involved may appropriate
35.16money for those payments. The amount of service credit obtainable under this section may
35.17not exceed five years unless a longer purchase period is required under United States Code,
35.18title 38, section 4312. The employing unit shall pay interest on all equivalent member and
35.19employer contribution amounts payable under this clause. Interest must be computed at a
35.20rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the
35.21break in service to the end of the month in which the payment is received. Upon payment,
35.22the employee must be granted allowable service credit for the purchased period; or
35.23(9) a period specified under section
353.0162.
35.24 (b) For calculating benefits under sections
353.30,
353.31,
353.32, and
353.33 for
35.25state officers and employees displaced by the Community Corrections Act, chapter 401,
35.26and transferred into county service under section
401.04, "allowable service" means the
35.27combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
35.28section
352.01, subdivision 11.
35.29 (c) For a public employee who has prior service covered by a local police or
35.30firefighters relief association that has consolidated with the Public Employees Retirement
35.31Association under chapter 353A or to which section
353.665 applies, and who has
35.32elected the type of benefit coverage provided by the public employees police and fire
35.33fund either under section
353A.08 following the consolidation or under section
353.665,
35.34subdivision 4
, "allowable service" is a period of service credited by the local police or
35.35firefighters relief association as of the effective date of the consolidation based on law
36.1and on bylaw provisions governing the relief association on the date of the initiation
36.2of the consolidation procedure.
36.3 (d) No member may receive more than 12 months of allowable service credit in a
36.4year either for vesting purposes or for benefit calculation purposes. For an active member
36.5who was an active member of the former Minneapolis Firefighters Relief Association
36.6on December 29, 2011, "allowable service" is the period of service credited by the
36.7Minneapolis Firefighters Relief Association as reflected in the transferred records of the
36.8association up to December 30, 2011, and the period of service credited under paragraph
36.9(a), clause (1), after December 30, 2011. For an active member who was an active member
36.10of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
36.11service" is the period of service credited by the Minneapolis Police Relief Association as
36.12reflected in the transferred records of the association up to December 30, 2011, and the
36.13period of service credited under paragraph (a), clause (1), after December 30, 2011.
36.14 (e) MS 2002 [Expired]
36.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
36.16 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
36.17 Subd. 17a.
Average salary. (a) "Average salary," for purposes of calculating a
36.18retirement annuity under section
353.29, subdivision 3new text begin unless otherwise specifiednew text end , means
36.19an amount equivalent to the average of the highest salary of the member, police officer,
36.20or firefighter, whichever applies, upon which employee contributions were paid for any
36.21five successive years of allowable service, based on dates of salary periods as listed on
36.22salary deduction reports. Average salary must be based upon all allowable service if
36.23this service is less than five years.
36.24(b) "Average salary" may not include any reduced salary paid during a period
36.25in which the employee is entitled to benefit payments from workers' compensation for
36.26temporary disability, unless the average salary is higher, including this period.
36.27
new text begin (c) "Average salary," for purposes of calculating benefits for a surviving spouse or new text end
36.28
new text begin dependent children under section 353.657, subdivision 2 or 3, means the average of the new text end
36.29
new text begin full-time monthly base salary rate in effect during the last six months of allowable service. new text end
36.30
new text begin If the employment during the last six months of allowable service was part-time, the new text end
36.31
new text begin average salary must be prorated based on the actual number of hours worked.new text end
36.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
36.33 Sec. 4. Minnesota Statutes 2012, section 353.01, subdivision 29, is amended to read:
37.1 Subd. 29.
Designated beneficiary. "Designated beneficiary" means the person or
new text begin ,new text end
37.2 organization
new text begin , trust, or estatenew text end designated by a member, former member, disabilitant, or
37.3retired member in writing, signed and filed with the association before the death of the
37.4member, former member, disabilitant, or retired member,
new text begin or a person legally authorized new text end
37.5
new text begin to act on behalf of the member or former member new text end to receive a refund of the balance of
37.6the member's
new text begin or former member's new text end accumulated deductions after death.
new text begin A beneficiary new text end
37.7
new text begin designation is valid if it is made in the form prescribed by the executive director and new text end
37.8
new text begin is received by the association on or before the date of death of the member or former new text end
37.9
new text begin member. If a beneficiary designation is deemed to be invalid for any reason, any remaining new text end
37.10
new text begin balance of the member's or former member's accumulated deductions are subject to the new text end
37.11
new text begin provisions of section 353.32, subdivisions 4 and 5.new text end
37.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.13 Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 7, is amended to read:
37.14 Subd. 7.
Adjustment for erroneous receipts or disbursements. (a) Except
37.15as provided in paragraph (b), erroneous employee deductions and erroneous employer
37.16contributions and additional employer contributions to the general employees retirement
37.17plan of the Public Employees Retirement Association or to the public employees police
37.18and fire retirement plan for a person who otherwise does not qualify for membership
37.19under this chapter, are considered:
37.20(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
37.21determination of the error by the association, the person may continue membership in the
37.22association while employed in the same position for which erroneous deductions were
37.23taken, or file a written election to terminate membership and apply for a refund upon
37.24termination of public service or defer an annuity under section
353.34; or
37.25(2) invalid, if the initial erroneous employee deduction began on or after January 1,
37.261990. Upon determination of the error, the association shall refund all erroneous employee
37.27deductions and all erroneous employer contributions as specified in paragraph (e). No
37.28person may claim a right to continued or past membership in the association based on
37.29erroneous deductions which began on or after January 1, 1990.
37.30(b) Erroneous deductions taken from the salary of a person who did not qualify
37.31for membership in the general employees retirement plan of the Public Employees
37.32Retirement Association or in the public employees police and fire retirement plan by
37.33virtue of concurrent employment before July 1, 1978, which required contributions to
37.34another retirement fund or relief association established for the benefit of officers and
37.35employees of a governmental subdivision, are invalid. Upon discovery of the error,
38.1allowable service credit for all invalid service if forfeited and, upon termination of public
38.2service, the association shall refund all erroneous employee deductions to the person, with
38.3interest as determined under section
353.34, subdivision 2, and all erroneous employer
38.4contributions without interest to the employer. This paragraph has both retroactive and
38.5prospective application.
38.6(c) Adjustments to correct employer contributions and employee deductions taken
38.7in error from amounts which are not salary under section
353.01, subdivision 10, must
38.8be made as specified in paragraph (e). The period of adjustment must be limited to the
38.9fiscal year in which the error is discovered by the association and the immediate two
38.10preceding fiscal years.
38.11(d) If there is evidence of fraud or other misconduct on the part of the employee or
38.12the employer, the board of trustees may authorize adjustments to the account of a member
38.13or former member to correct erroneous employee deductions and employer contributions
38.14on invalid salary and the recovery of any overpayments for a period longer than provided
38.15for under paragraph (c).
38.16(e) Upon discovery of the receipt of erroneous employee deductions and employer
38.17contributions under paragraph (a), clause (2), or paragraph (c), the association must require
38.18the employer to discontinue the erroneous employee deductions and erroneous employer
38.19contributions reported on behalf of a member. Upon discontinuation, the association must:
38.20(1) for a member, provide a refund in the amount of the invalid employee deductions
38.21with interest on the invalid employee deductions at the rate specified under section
353.34,
38.22subdivision 2
, from the received date of each invalid salary transaction through the date
38.23the credit or refund is made;
38.24(2) for a former member who:
38.25(i) is not receiving a retirement annuity or benefit, return the erroneous employee
38.26deductions to the former member through a refund with interest at the rate specified under
38.27section
353.34, subdivision 2, from the received date of each invalid salary transaction
38.28through the date the credit or refund is made; or
38.29(ii) is receiving a retirement annuity or disability benefit, or a person who is
38.30receiving an optional annuity or survivor benefit, for whom it has been determined an
38.31overpayment must be recovered, adjust the payment amount and recover the overpayments
38.32as provided under this section; and
38.33(3) return the invalid employer contributions reported on behalf of a member or
38.34former member to the employer by providing a credit against future contributions payable
38.35by the employer.
39.1(f) In the event that a salary warrant or check from which a deduction for the
39.2retirement fund was taken has been canceled or the amount of the warrant or check
39.3returned to the funds of the department making the payment, a refund of the sum
39.4deducted, or any portion of it that is required to adjust the deductions, must be made
39.5to the department or institution.
39.6(g) If the accrual date of any
new text begin association discovers that a new text end retirement annuity, survivor
39.7benefit, or disability benefit is within the limitation period specified in paragraph (c), and
39.8an overpayment has resulted
new text begin has been incorrectly calculated new text end by using invalid service or
39.9salary, or due to any erroneous calculation procedure, the association must recalculate
39.10the annuity or benefit payable and recover any
new text begin begin payment of the corrected annuity or new text end
39.11
new text begin benefit effective the first of the month following discovery of the error. Any new text end overpayment
39.12
new text begin resulting from the incorrect calculation must be recovered new text end as provided under subdivision
39.137b
new text begin , if the accrual date, or any adjustment in the amount of the annuity or benefit calculated new text end
39.14
new text begin after the accrual date, except adjustments required under section 353.656, subdivision 4, new text end
39.15
new text begin falls within the current fiscal year and the two immediate previous fiscal yearsnew text end .
39.16(h) Notwithstanding the provisions of this subdivision, the association may apply
39.17the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
39.18Compliance Resolution System and not issue a refund of erroneous employee deductions
39.19and employer contributions or not recover a small overpayment of benefits if the cost to
39.20correct the error would exceed the amount of the member refund or overpayment.
39.21(i) Any fees or penalties assessed by the federal Internal Revenue Service for any
39.22failure by an employer to follow the statutory requirements for reporting eligible members
39.23and salary must be paid by the employer.
39.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
39.25 Sec. 6. Minnesota Statutes 2012, section 353.34, subdivision 1, is amended to read:
39.26 Subdivision 1.
Refund or deferred annuity. (a) A former member is entitled to
39.27either a refund of accumulated employee deductions under subdivision 2, or to a deferred
39.28annuity under subdivision 3. Application for a refund may not be made before the date of
39.29termination of public service. Except as specified in paragraph (b), A refund must be paid
39.30within 120 days following receipt of the application unless the applicant has again become
39.31a public employee required to be covered by the association.
39.32(b) If an individual was placed on layoff under section
353.01, subdivision 12 or 12c,
39.33a refund is not payable before termination of service under section
353.01, subdivision 11a.
39.34(c) An individual who terminates public service covered by the Public Employees
39.35Retirement Association general employees retirement plan, the MERF division, the Public
40.1Employees Retirement Association police and fire retirement plan, or the public employees
40.2local government correctional service retirement plan, and who is employed by a different
40.3employer and who becomes an active member covered by one of the other two plans, may
40.4receive a refund of employee contributions plus annual compound interest from the plan
40.5from which the member terminated service at the applicable rate specified in subdivision 2.
40.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
40.7 Sec. 7. Minnesota Statutes 2012, section 353.34, subdivision 2, is amended to read:
40.8 Subd. 2.
Refund with interest. (a) Except as provided in subdivision 1, any person
40.9who ceases to be a public employee is entitled to receive a refund in an amount equal to
40.10accumulated deductions with annual compound interest to the first day of the month
40.11in which the refund is processed.
40.12(b) For a person who ceases to be a public employee before July 1, 2011, the refund
40.13interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
40.14June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
40.15refund interest is at the rate of four percent.
40.16(c) If a person repays a refund and subsequently applies for another refund, the
40.17repayment amount, including interest, is added to the fiscal year balance in which the
40.18repayment was made.
40.19
new text begin (d) If the refund payable to a member is based on employee deductions that are new text end
40.20
new text begin determined to be invalid under section 353.27, subdivision 7, the interest payable on the new text end
40.21
new text begin invalid employee deductions is four percent.new text end
40.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
40.23 Sec. 8. Minnesota Statutes 2012, section 353.50, subdivision 3, is amended to read:
40.24 Subd. 3.
Service credit and benefit liability transfer. (a) All allowable service
40.25credit and salary credit of the members of the Minneapolis Employees Retirement Fund
40.26as specified in the records of the Minneapolis Employees Retirement Fund through June
40.2730, 2010, are transferred to the MERF division of the Public Employees Retirement
40.28Association and are credited by the MERF division. Annuities or benefits of persons
40.29who are active members of the former Minneapolis Employees Retirement Fund on
40.30June 30, 2010, must be calculated under Minnesota Statutes 2008, sections
;
40.31;
;
;
;
;
;
;
;
40.32;
;
;
; and
, but are only eligible for automatic
40.33postretirement adjustments after December 31, 2010, under section
.
41.1(b) The liability for the payment of annuities and benefits of the Minneapolis
41.2Employees Retirement Fund retirees and benefit recipients as specified in the records of
41.3the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the
41.4MERF division of the Public Employees Retirement Association on June 30, 2010.
41.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
41.6 Sec. 9. Minnesota Statutes 2012, section 353.50, subdivision 6, is amended to read:
41.7 Subd. 6.
Benefits. (a)
new text begin Retired, disabled, deferred, and inactive member benefits. new text end
41.8The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive
41.9Minneapolis Employees Retirement Fund members with that status as of June 30, 2010,
41.10with the exception of post-December 31, 2010, postretirement adjustments, which
41.11are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections
41.12422A.11
;
422A.12;
422A.13;
422A.14;
422A.15;
422A.151;
422A.155;
422A.156;
41.13422A.16
;
422A.17;
422A.18;
422A.19;
422A.20; and
422A.23, continue in force after the
41.14administrative consolidation under Laws 2010, chapter 359, article 11.
41.15
new text begin (b) new text end new text begin Benefits; benefit eligibility for June 30, 2010, active members.new text end new text begin Persons who new text end
41.16
new text begin were active members of the former Minneapolis Employees Retirement Fund on June new text end
41.17
new text begin 30, 2010, upon satisfying eligibility requirements stated in the applicable sections of new text end
41.18
new text begin Minnesota Statutes 2008 specified in paragraph (a), are entitled to annuities or benefits new text end
41.19
new text begin specified in those sections. Eligibility for a formula retirement annuity includes the new text end
41.20
new text begin requirement in Minnesota Statutes 2008, sections 422A.13 and 422A.16, that the new text end
41.21
new text begin terminating member has attained retirement age, which is age 60 if the person has at least new text end
41.22
new text begin ten years of service credit, or any age if the person has 30 or more years of service credit.new text end
41.23(b)
new text begin (c) new text end new text begin Postretirement adjustments.new text end new text begin new text end After December 31, 2010, annuities and
41.24benefits from the MERF division are eligible for annual automatic postretirement
41.25adjustments solely under section
356.415.
41.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
41.27 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2, is amended to read:
41.28 Subd. 2.
Benefit amount. (a) The spouse of a deceased member is entitled to
41.29receive a monthly benefit for life equal to the following percentage of the member's
41.30average full-time monthly salary rate
new text begin , as defined in section 353.01, subdivision 17a, new text end
41.31
new text begin paragraph (c), new text end as a member of the police and fire plan in effect over the last six months of
41.32allowable service preceding the month in which death occurred:
42.1 (1) if the death was a line of duty death, 60 percent of the stated average salary
42.2is payable; and
42.3 (2) if the death was not a line of duty death or if death occurred while receiving
42.4disability benefits that accrued before July 1, 2007, 50 percent of the stated average salary
42.5is payable.
42.6 (b) If the member was a part-time employee in the position for which the employee
42.7qualified for participation in the police and fire plan, the monthly survivor benefit is based
42.8on the salary rate in effect for that member's part-time service during the last six months
42.9of allowable service. If the member's status changed from full time to part time for
new text begin due new text end
42.10
new text begin to new text end health reasons during the last year
new text begin 12 months new text end of employment,
new text begin notwithstanding the new text end
42.11
new text begin definition of average salary in section 353.01, subdivision 17a, paragraph (c), the average new text end
42.12
new text begin salary used to compute new text end the monthly survivor benefit is
new text begin must be new text end based on the full-time
42.13salary rate of the position held as a member of the police and fire plan in effect over the
42.14last six months of allowable service preceding the month in which the death occurred.
42.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
42.16 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
42.17 Subd. 2a.
Death while eligible survivor benefit. (a) If a member or former member
42.18who has attained the age of at least 50 years and either who is vested under section
42.19353.01, subdivision 47
, or who has credit for at least 30 years of allowable service,
42.20regardless of age attained, dies before the annuity or disability benefit becomes payable,
42.21notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
42.22elect to receive a death while eligible survivor benefit.
42.23 (b) Notwithstanding the definition of surviving spouse in section
353.01, subdivision
42.2420
, a former spouse of the member, if any, is entitled to a portion of the death while
42.25eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
42.26filed with the association. If there is no surviving spouse or child or children, a former
42.27spouse may be entitled to a lump-sum refund payment under section
353.32, subdivision
42.281
, if provided for in a marriage dissolution decree but not a death while eligible survivor
42.29benefit despite the terms of a marriage dissolution decree filed with the association.
42.30 (c) The benefit may be elected instead of a refund with interest under section
353.32,
42.31subdivision 1
, or surviving spouse benefits otherwise payable under subdivisions 1 and
42.322. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
42.33which the member could have qualified for on the date of death, computed as provided in
42.34sections 353.651, subdivisions 2 and
new text begin subdivision new text end 3, and
353.30, subdivision 3.
43.1 (d) The surviving spouse may apply for the annuity at any time after the date
43.2on which the deceased employee would have attained the required age for retirement
43.3based on the employee's allowable service. Sections
353.34, subdivision 3, and
353.71,
43.4subdivision 2
, apply to a deferred annuity payable under this subdivision.
43.5 (e) No payment accrues beyond the end of the month in which entitlement to
43.6such annuity has terminated. An amount equal to the excess, if any, of the accumulated
43.7contributions which were credited to the account of the deceased employee over and
43.8above the total of the annuities paid and payable to the surviving spouse must be paid to
43.9the deceased member's last designated beneficiary or, if none, to the legal representative of
43.10the estate of such deceased member.
43.11 (f) Any member may request in writing, with the signed consent of the spouse, that
43.12this subdivision not apply and that payment be made only to the designated beneficiary, as
43.13otherwise provided by this chapter.
43.14 (g) For a member who is employed as a full-time firefighter by the Department of
43.15Military Affairs of the state of Minnesota, allowable service as a full-time state Military
43.16Affairs Department firefighter credited by the Minnesota State Retirement System may be
43.17used in meeting the minimum allowable service requirement of this subdivision.
43.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
43.19 Sec. 12. Minnesota Statutes 2012, section 353.657, subdivision 3, is amended to read:
43.20 Subd. 3.
Dependent children. new text begin (a) new text end A dependent child, as defined in section
353.01,
43.21subdivision 15
, is entitled to receive a monthly benefit equal to ten percent of the member's
43.22average full-time monthly salary rate
new text begin , as defined in section 353.01, subdivision 17a, new text end
43.23
new text begin paragraph (c), new text end as a member of the police and fire plan in effect over the last six months of
43.24allowable service preceding the month in which death occurred.
43.25
new text begin (b) If the member's status changed from full-time to part-time due to health reasons new text end
43.26
new text begin during the last 12 months of employment, notwithstanding the definition of average salary new text end
43.27
new text begin in section 353.01, subdivision 17a, paragraph (c), the average salary used to compute the new text end
43.28
new text begin monthly dependent child benefit must be based on the full-time salary rate of the position new text end
43.29
new text begin held as a member of the police and fire plan in effect over the last six months of allowable new text end
43.30
new text begin service preceding the month in which the death occurred.new text end
43.31
new text begin (c)new text end Payments for the benefit of a dependent child must be made to the surviving
43.32parent, or to the legal guardian of the child or to any adult person with whom the child
43.33may at the time be living, provided only that the parent or other person to whom any
43.34amount is to be paid advises the board in writing that the amount will be held or used in
43.35trust for the benefit of the child.
44.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
44.2 Sec. 13. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:
44.3 Subd. 3.
Effective datenew text begin of privatizationnew text end . "Effective date
new text begin of privatizationnew text end " means
44.4the date that the operation of the
new text begin a new text end medical facility or other public employing unit is
44.5assumed by another employer or the date that the
new text begin a new text end medical facility or other public
44.6employing unit is purchased by another employer and active membership in the Public
44.7Employees Retirement Association consequently terminates.
44.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
44.9 Sec. 14. Minnesota Statutes 2012, section 353F.02, subdivision 4, is amended to read:
44.10 Subd. 4.
Medical facility. "Medical facility" means:
44.11 (1) Bridges Medical Services;
44.12(2) Cedarview Care Center in Steele County;
44.13 (3) the City of Cannon Falls Hospital;
44.14 (4) the Chris Jenson Health and Rehabilitation Center in St. Louis County;
44.15(5)
new text begin Cornerstone Nursing and Rehabilitation Center in new text end Clearwater County Memorial
44.16Hospital doing business as Clearwater Health Services in Bagley;
44.17 (6) the Dassel Lakeside Community Home;
44.18(7) the Douglas County Hospital, with respect to the Mental Health Unit;
44.19 (8) the Fair Oaks Lodge, Wadena;
44.20 (9) the Glencoe Area Health Center;
44.21 (10) Hutchinson Area Health Care;
44.22
new text begin (11) Lake County Sunrise Home;new text end
44.23 (11)
new text begin (12) new text end the Lakefield Nursing Home;
44.24 (12)
new text begin (13) new text end the Lakeview Nursing Home in Gaylord;
44.25 (13)
new text begin (14) new text end the Luverne Public Hospital;
44.26 (14)
new text begin (15) new text end the Oakland Park Nursing Home;
44.27 (15)
new text begin (16) new text end the RenVilla Nursing Home;
44.28 (16)
new text begin (17) new text end the Rice Memorial Hospital in Willmar, with respect to the Department
44.29of Radiology and the Department of Radiation/Oncology;
44.30(17)
new text begin (18) new text end the St. Peter Community Health Care Center;
44.31(18)
new text begin (19) new text end the Traverse Care Center in Traverse County;
44.32 (19)
new text begin (20) new text end the Waconia-Ridgeview Medical Center;
44.33(20)
new text begin (21) new text end the Weiner Memorial Medical Center, Inc.;
44.34(21)
new text begin (22) new text end the Wheaton Community Hospital; and
45.1(22)
new text begin (23) new text end the Worthington Regional Hospital.
45.2
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment if new text end
45.3
new text begin Minnesota Statutes, section 353F.02, subdivision 4, is not repealed in the 2013 legislative new text end
45.4
new text begin session.new text end
45.5 Sec. 15. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision
45.6to read:
45.7
new text begin Subd. 4a.new text end new text begin Privatized former public employer.new text end new text begin "Privatized former public employer" new text end
45.8
new text begin means a medical facility or other employing unit formerly included in the definition of new text end
45.9
new text begin governmental subdivision under section 353.01, subdivision 6, that is privatized and new text end
45.10
new text begin whose employees are certified for participation under this chapter.new text end
45.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
45.12 Sec. 16. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:
45.13 Subd. 6.
Terminated medical facility or other new text begin Privatized former new text end public
45.14
employing unit employee. "Terminated medical facility or other
new text begin (a) "Privatized former new text end
45.15public employing unit employee" means a person who:
45.16(1) was employed
new text begin by the privatized former public employer new text end on the day before the
45.17effective date by the medical facility or other public employing unit
new text begin of privatizationnew text end ; or
45.18(2) terminated employment with the medical facility or other
new text begin privatized former new text end
45.19public employing unit
new text begin employer new text end on the day before the effective date; and
45.20(3) was a participant in the general employees retirement plan of the Public
45.21Employees Retirement Association at the time of termination of employment with the
45.22medical facility or other
new text begin privatized former new text end public employing unit
new text begin employernew text end .
45.23
new text begin (b) Privatized former public employee does not mean a person who, on the day new text end
45.24
new text begin before the effective date of privatization, was simultaneously employed with the privatized new text end
45.25
new text begin former public employer and by a governmental subdivision under section 353.01, new text end
45.26
new text begin subdivision 6, and who, after the effective date of privatization, continues to accrue new text end
45.27
new text begin service credit under section 353.01, subdivision 16, through simultaneous employment new text end
45.28
new text begin with a governmental subdivision.new text end
45.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
45.30 Sec. 17. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:
45.31 Subdivision 1.
Eligibility determination. (a) The chief clerical officer of a
45.32governmental subdivision may submit a resolution from the governing body to the
46.1executive director of the Public Employees Retirement Association which supports
46.2providing coverage under this chapter for employees of that governmental subdivision
46.3who are privatized, and which states that the governing body will pay for actuarial
46.4calculations, as further specified in paragraph (c).
46.5 (b) The governing body must also provide a copy of any applicable purchase or
46.6lease agreement and any other information requested by the executive director to allow the
46.7executive director to verify that under the proposed employer change, the new employer
46.8does not qualify as a governmental subdivision under section
353.01, subdivision 6,
46.9making the employees ineligible for continued coverage as active members of the general
46.10employees retirement plan of the Public Employees Retirement Association.
46.11 (c) Following receipt of a resolution and a determination by the executive director
46.12that the new employer is not a governmental subdivision, the executive director shall
46.13direct the consulting actuary retained under section
356.214 to determine whether the
46.14general employees retirement plan of the Public Employees Retirement Association, if
46.15coverage under this chapter is provided, is expected to receive a net gain or a net loss if
46.16privatization occurs. A net gain is expected if the actuarial liability of the special benefit
46.17coverage provided under this chapter, if extended to the applicable employees under the
46.18privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is
46.19expected if the actuarial accrued liability of the special benefit coverage provided under
46.20this chapter, if extended to the applicable employees under the privatization, is more than
46.21the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
46.22used to make this determination must be within one year of the effective date, as defined
46.23in section
353F.02, subdivision 3new text begin of privatizationnew text end .
46.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
46.25 Sec. 18. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:
46.26 Subd. 2.
Recommendation to legislaturenew text begin Reporting privatizationsnew text end . (a) If the
46.27actuarial calculations under subdivision 1, paragraph (c), indicate that
new text begin privatization can new text end
46.28
new text begin be approved because new text end a net gain to the general employees retirement plan of the Public
46.29Employees Retirement Association is expected due to the privatization, or if paragraph (c)
46.30
new text begin (b) new text end applies, the executive director shall
new text begin , following acceptance of the actuarial calculations new text end
46.31
new text begin by the board of trustees, new text end forward a recommendation
new text begin notice new text end and supporting documentation
new text begin , new text end
46.32
new text begin including a copy of the actuary's report and findings, new text end to the chair of the Legislative
46.33Commission on Pensions and Retirement, the chair of the Governmental Operations,
46.34Reform, Technology and Elections Committee of the house of representatives, the chair
46.35of the State and Local Government Operations and Oversight Committee of the senate,
47.1 and the executive director of the Legislative Commission on Pensions and Retirement
47.2
new text begin and the chairs and the ranking minority members of the committees with jurisdiction over new text end
47.3
new text begin governmental operations in the house of representatives and senatenew text end . The recommendation
47.4must be in the form of an addition to the definition of "medical facility" under section
47.5
353F.02, subdivision 4, or to "other public employing unit" under section
353F.02,
47.6subdivision 5
, whichever is applicable. The recommendation must be forwarded to the
47.7legislature before January 15 for the recommendation to be considered in that year's
47.8legislative session. The recommendation may be included as part of public pension
47.9administrative legislation under section
.
47.10 (b) If a medical facility or other public employing unit listed under section
,
47.11subdivision 4 or 5, fails to privatize within one year of the final enactment date of the
47.12legislation adding the entity to the applicable definition, its inclusion under this chapter is
47.13voided, and the executive director shall include in the subsequent proposed legislation under
47.14paragraph (a) a recommendation that the applicable entity be stricken from the definition.
47.15(c)
new text begin (b) new text end If the calculations under subdivision 1, paragraph (c), indicate a net loss, the
47.16executive director shall forward a recommendation
new text begin recommend to the board of trustees new text end
47.17that the privatization be included as an addition under paragraph (a)
new text begin approved new text end if the chief
47.18clerical officer of the applicable governmental subdivision submits a resolution from
47.19the governing body specifying that a lump sum payment will be made to the executive
47.20director
new text begin Public Employees Retirement Association new text end equal to the net loss, plus interest.
47.21The interest must be computed using the applicable
new text begin ultimate new text end preretirement interest rate
47.22assumption under section
356.215, subdivision 8, expressed as a monthly rate, from the
47.23date of the actuarial valuation from which the actuarial accrued liability data was used to
47.24determine the net loss in the actuarial study under subdivision 1, to the date of payment,
47.25with annual compounding. Payment must be made on or after the effective date defined
47.26under section
new text begin of privatizationnew text end .
47.27
new text begin (c) The Public Employees Retirement Association must maintain a list that includes new text end
47.28
new text begin the names of all privatized former public employers in the association's comprehensive new text end
47.29
new text begin annual financial report and on the association's Web site. Annually by March 1, the new text end
47.30
new text begin association must submit to the executive director of the Legislative Commission on new text end
47.31
new text begin Pensions and Retirement the names of any privatized former public employers approved new text end
47.32
new text begin since the publication of the previous fiscal year's comprehensive annual financial report.new text end
47.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
48.1 Sec. 19. Minnesota Statutes 2012, section 353F.03, is amended to read:
48.2
353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
48.3Notwithstanding any provision of chapter 353 to the contrary, a terminated medical
48.4facility or other
new text begin privatized former new text end public employing unit employee is eligible to receive a
48.5retirement annuity under section
353.29 of the edition of Minnesota Statutes published
48.6in the year before the year in which the privatization occurred, without regard to the
48.7requirement specified in section
353.01, subdivision 47.
48.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
48.9 Sec. 20. Minnesota Statutes 2012, section 353F.04, is amended to read:
48.10
353F.04 AUGMENTATION INTEREST RATES FOR TERMINATED
48.11
MEDICAL OR OTHER new text begin PRIVATIZED FORMER new text end PUBLIC EMPLOYING UNIT
48.12
FACILITY EMPLOYEES.
48.13 Subdivision 1.
Enhanced augmentation rates. (a) The deferred annuity of a
48.14terminated medical facility or other
new text begin privatized former new text end public employing unit employee is
48.15subject to augmentation under section
353.71, subdivision 2, of the edition of Minnesota
48.16Statutes published in the year in which the privatization occurred, except that the rate of
48.17augmentation is as specified in this subdivision.
48.18 (b) This paragraph applies if the legislation adding the medical facility or other
48.19employing unit to section
, subdivision 4 or 5, as applicable,
new text begin effective date of new text end
48.20
new text begin privatization new text end was enacted before July 26, 2005, and became effective before January 1,
48.212008, for the Hutchinson Area Health Care
new text begin on new text end or before January 1, 2007, for all other
48.22medical facilities and all other employing units
new text begin and also applies to Hutchinson Area Health new text end
48.23
new text begin Care with a privatization effective date of January 1, 2008new text end . For a terminated medical
48.24facility or other
new text begin privatized former new text end public employing unit employee, the augmentation
48.25rate is 5.5 percent compounded annually until January 1 following the year in which the
48.26person attains age 55. From that date to the effective date of retirement, the augmentation
48.27rate is 7.5 percent compounded annually.
48.28 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
48.29before January 1, 2011, the augmentation rate is four percent compounded annually until
48.30January 1, following the year in which the person attains age 55. From that date to the
48.31effective date of retirement, the augmentation rate is six percent compounded annually.
48.32(d) If the effective date of the privatization is after December 31, 2010, the applicable
48.33augmentation rate depends on the result of computations specified in section
353F.025,
48.34subdivision 1
. If those computations indicate no loss or a net gain to the fund of the
49.1general employees retirement plan of the Public Employees Retirement Association, the
49.2augmentation rate is 2.0 percent compounded annually until the effective date of retirement.
49.3If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent
49.4augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the
49.5augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
49.6(e) The term "effective date of the privatization" as used in this subdivision means
49.7the "effective date" as defined in section
353F.02, subdivision 3.
49.8 Subd. 2.
Exceptions. The increased augmentation rates specified in subdivision
49.91 do not apply if the terminated medical facility or other
new text begin to a privatized former new text end public
49.10employing unit employee:
49.11(1)
new text begin beginning the first of the month in which the privatized former public employee new text end
49.12becomes covered again by a retirement plan enumerated in section
356.30, subdivision 3new text begin , if new text end
49.13
new text begin the employee continues to be covered and accrues at least six months of credited servicenew text end ; or
49.14
new text begin (2) beginning the first of the month after a privatized former public employee new text end
49.15
new text begin terminates service with the successor entity; ornew text end
49.16(2)
new text begin (3) if the person new text end begins receipt of a retirement annuity while employed by
49.17the employer which assumed operations of
new text begin or purchased new text end the medical facility or other
49.18
new text begin privatized former new text end public employing unit or purchased the medical facility or other public
49.19employing unit
new text begin employernew text end .
49.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
49.21 Sec. 21. Minnesota Statutes 2012, section 353F.05, is amended to read:
49.22
353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE
49.23
FOR EARLY RETIREMENT PURPOSES.
49.24(a) For the purpose of determining eligibility for early retirement benefits provided
49.25under section
353.30, subdivision 1a, of the edition of Minnesota Statutes published in
49.26the year before the year in which the privatization occurred, and notwithstanding any
49.27provision of chapter 353, to the contrary, the years of allowable service for a terminated
49.28medical facility or other
new text begin privatized former new text end public employing unit employee who transfers
49.29employment on the effective date
new text begin of privatization new text end and does not apply for a refund of
49.30contributions under section
353.34, subdivision 1, of the edition of Minnesota Statutes
49.31published in the year before the year in which the privatization occurred, or any similar
49.32provision, includes service with the successor employer to the medical facility or other
49.33
new text begin privatized former new text end public employing unit
new text begin employer new text end following the effective date. The
49.34successor employer shall provide any reports that the executive director of the Public
50.1Employees Retirement Association may reasonably request to permit calculation of
50.2benefits.
50.3(b) To be eligible for early retirement benefits under this section, the individual must
50.4separate from service with the successor
new text begin to the privatized former public new text end employer to the
50.5medical facility. The terminated eligible individual
new text begin privatized former public employeenew text end , or
50.6an individual authorized to act on behalf of that individual
new text begin employeenew text end , may apply for an
50.7annuity following application procedures under section
353.29, subdivision 4.
50.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
50.9 Sec. 22. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:
50.10 Subdivision 1.
Eligibility. A terminated medical facility or other
new text begin privatized former new text end
50.11public employing unit employee who is totally and permanently disabled under Minnesota
50.12Statutes 1998, section
353.01, subdivision 19, and who had a medically documented
50.13preexisting condition of the disability before the termination of coverage, may apply for
50.14a disability benefit.
50.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
50.16 Sec. 23. Minnesota Statutes 2012, section 353F.052, is amended to read:
50.17
353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD
50.18
PROVISION.
50.19Notwithstanding any provisions of law to the contrary, subdivisions within section
50.20353.32
of the edition of Minnesota Statutes published in the year before the year in which
50.21a privatization occurred, applicable to the surviving spouse or dependent children of a
50.22former member as defined in section
353.01, subdivision 7a, apply to the survivors of a
50.23terminated medical facility or other
new text begin privatized former new text end public employing unit employee.
50.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
50.25 Sec. 24.
new text begin [353F.057] TERMINATION FROM SERVICE REQUIREMENT.new text end
50.26
new text begin Upon termination of service from the privatized former public employer or any new text end
50.27
new text begin successor entity after the effective date of privatization, a privatized former public new text end
50.28
new text begin employee must separate from any employment relationship with the privatized former new text end
50.29
new text begin public employer or any successor entity for at least 30 days to qualify to receive a new text end
50.30
new text begin retirement annuity under this chapter.new text end
50.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
51.1 Sec. 25. Minnesota Statutes 2012, section 353F.06, is amended to read:
51.2
353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
51.3
LIMITATIONS.
51.4
new text begin If a privatized former public employee satisfies the separation from service new text end
51.5
new text begin requirement in section 353F.057 and thereafter resumes employment with the privatized new text end
51.6
new text begin former public employer or any successor entity or a governmental subdivision under new text end
51.7
new text begin section 353.01, subdivision 6, new text end the reemployed annuitant earnings limitations of section
51.8353.37
apply to any service by a terminated medical facility or other public employing
51.9unit employee as an employee of the successor employer to the medical facility.
51.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
51.11 Sec. 26. Minnesota Statutes 2012, section 353F.07, is amended to read:
51.12
353F.07 EFFECT ON REFUND.
51.13Notwithstanding any provision of chapter 353 to the contrary, terminated medical
51.14facility or other
new text begin privatized former new text end public employing unit employees may receive a refund
51.15of employee accumulated contributions plus interest as provided in section
353.34,
51.16subdivision 2
, at any time after the transfer of employment to the successor employer of
51.17the terminated medical facility or other
new text begin privatized former new text end public employing unit
new text begin employernew text end .
51.18If a terminated medical facility or other
new text begin privatized former new text end public employing unit employee
51.19has received a refund from a pension plan listed in section
356.30, subdivision 3, the
51.20person may not repay that refund unless the person again becomes a member of one of
51.21those listed plans and complies with section
356.30, subdivision 2.
51.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
51.23 Sec. 27. Minnesota Statutes 2012, section 353F.08, is amended to read:
51.24
353F.08 COUNSELING SERVICES.
51.25The medical facility or other
new text begin privatized former new text end public employing unit
new text begin employer new text end and
51.26the executive director of the Public Employees Retirement Association shall provide
51.27terminated medical facility or other
new text begin privatized former new text end public employing unit employees
51.28with counseling on their benefits available under the general employees retirement plan
51.29of the Public Employees Retirement Association during the 90 days following
new text begin a period new text end
51.30
new text begin mutually agreed upon before or after the effective date of new text end privatization.
51.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
52.1 Sec. 28. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
52.2 Subdivision 1.
Annual postretirement adjustments; generally. (a) Except as
52.3otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability
52.4benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
52.5postretirement adjustment annually on January 1, as follows:
52.6(1) a postretirement increase of 2.5 percent must be applied each year, effective
52.7January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
52.8been receiving an annuity or a benefit for at least 12 full months prior to the January 1
52.9increase; and
52.10(2) for each annuitant or benefit recipient who has been receiving an annuity or a
52.11benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
52.12percent for each month that the person has been receiving an annuity or benefit must be
52.13applied, effective on January 1 following the calendar year in which the person has been
52.14retired for less than 12 months.
52.15(b) The increases provided by this subdivision commence on January 1, 2010.
52.16(c) An increase in annuity or benefit payments under this section must be made
52.17automatically unless written notice is filed by the annuitant or benefit recipient with the
52.18executive director of the covered retirement plan requesting that the increase not be made.
52.19(d) The retirement annuity payable to a person who retires before becoming eligible
52.20for Social Security benefits and who has elected the optional payment as provided in
52.21section
353.29, subdivision 6, must be treated as the sum of a period certain retirement
52.22annuity and a life retirement annuity for the purposes of any postretirement adjustment.
52.23The period certain retirement annuity plus the life retirement annuity must be the
52.24annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
52.25adjustment granted on the period certain retirement annuity must terminate when the
52.26period certain retirement annuity terminates.
52.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014.new text end
52.28 Sec. 29. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
52.29 Subd. 1b.
Annual postretirement adjustments; PERA; general employees
52.30
retirement plan and local government correctional retirement plan. (a) Retirement
52.31annuity, disability benefit, or survivor benefit recipients of the general employees
52.32retirement plan of the Public Employees Retirement Association and the local government
52.33correctional service retirement plan are entitled to a postretirement adjustment annually
52.34on January 1, as follows:
53.1(1) for January 1, 2011, and each successive January 1 until funding stability is
53.2restored for the applicable retirement plan, a postretirement increase of one percent must
53.3be applied each year, effective on January 1, to the monthly annuity or benefit amount of
53.4each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
53.512 full months as of the current June 30;
53.6(2) for January 1, 2011, and each successive January 1 until funding stability is
53.7restored for the applicable retirement plan, for each annuitant or benefit recipient who has
53.8been receiving an annuity or a benefit for at least one full month, but less than 12 full
53.9months as of the current June 30, an annual postretirement increase of 1/12 of one percent
53.10for each month the person has been receiving an annuity or benefit must be applied;
53.11(3) for each January 1 following the restoration of funding stability for the applicable
53.12retirement plan, a postretirement increase of 2.5 percent must be applied each year,
53.13effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
53.14recipient who has been receiving an annuity or benefit for at least 12 full months as of
53.15the current June 30; and
53.16(4) for each January 1 following restoration of funding stability for the applicable
53.17retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
53.18a benefit for at least one full month, but less than 12 full months as of the current June
53.1930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
53.20has been receiving an annuity or benefit must be applied.
53.21(b) Funding stability is restored when the market value of assets of the applicable
53.22retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
53.23applicable plan in the most recent prior actuarial valuation prepared under section
356.215
53.24and the standards for actuarial work by the approved actuary retained by the Public
53.25Employees Retirement Association under section
356.214.
53.26(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
53.27and (4), the market value of the applicable retirement plan is determined in the next
53.28subsequent actuarial valuation prepared under section
356.215 to be less than 90 percent
53.29of the actuarial accrued liability of any of the applicable Public Employees Retirement
53.30Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be
53.31applied as of the next successive January until funding stability is again restored.
53.32(d) An increase in annuity or benefit payments under this section must be made
53.33automatically unless written notice is filed by the annuitant or benefit recipient with the
53.34executive director of the Public Employees Retirement Association requesting that the
53.35increase not be made.
54.1(e) The retirement annuity payable to a person who retires before becoming eligible
54.2for Social Security benefits and who has elected the optional payment, as provided in
54.3section
353.29, subdivision 6, must be treated as the sum of a period-certain retirement
54.4annuity and a life retirement annuity for the purposes of any postretirement adjustment.
54.5The period-certain retirement annuity plus the life retirement annuity must be the
54.6annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
54.7adjustment granted on the period-certain retirement annuity must terminate when the
54.8period-certain retirement annuity terminates.
54.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014.new text end
54.10 Sec. 30. Minnesota Statutes 2012, section 356.635, subdivision 1, is amended to read:
54.11 Subdivision 1.
Retirement benefit commencement. new text begin (a) new text end The retirement benefit of a
54.12member who has terminated employment must begin no later than the later of April 1 of
54.13the calendar year following the calendar year that the member attains the federal minimum
54.14distribution age under section 401(a)(9) of the Internal Revenue Code or April 1 of the
54.15calendar year following the calendar year in which the member terminated employment.
54.16
new text begin (b) The consent requirements of section 411(a)(11) of the Internal Revenue Code do new text end
54.17
new text begin not apply to the extent that a distribution is required to satisfy the requirements of section new text end
54.18
new text begin 401(a)(9) of the Internal Revenue Code.new text end
54.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
54.20 Sec. 31.
new text begin REPEALER.new text end
54.21
new text begin (a)new text end new text begin Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025, new text end
54.22
new text begin subdivision 3,new text end new text begin are repealed.new text end
54.23
new text begin (b)new text end new text begin Minnesota Statutes 2012, section 353.29, subdivision 6,new text end new text begin is repealed.new text end
54.24
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective the day following final enactment. new text end
54.25
new text begin Paragraph (b) is effective January 1, 2014.new text end
54.26
ARTICLE 4
54.27
BENEFIT ACCRUAL RATE SPECIFICATION
54.28 Section 1. Minnesota Statutes 2012, section 352.115, subdivision 3, is amended to read:
54.29 Subd. 3.
Retirement annuity formula. (a) This paragraph, in conjunction with
54.30section
352.116, subdivision 1, applies to a person who became a covered employee or a
54.31member of a pension fund listed in section
356.30, subdivision 3, before July 1, 1989,
55.1unless paragraph (b), in conjunction with section
352.116, subdivision 1a, produces a
55.2higher annuity amount, in which case paragraph (b) will apply
new text begin appliesnew text end . The employee's
55.3average salary, as defined in section
352.01, subdivision 14a, multiplied by the
new text begin 1.2 new text end percent
55.4specified in section
356.315, subdivision 1, per year of allowable service for the first ten
55.5years and the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2, for each later year of
55.6allowable service and pro rata for completed months less than a full year shall determine
55.7
new text begin determines new text end the amount of the retirement annuity to which the employee is entitled.
55.8(b) This paragraph applies to a person who has become at least 55 years old and
55.9first became a covered employee after June 30, 1989, and to any other covered employee
55.10who has become at least 55 years old and whose annuity amount, when calculated under
55.11this paragraph and in conjunction with section
352.116, subdivision 1a, is higher than it is
55.12when calculated under paragraph (a), in conjunction with section
352.116, subdivision 1.
55.13The employee's average salary, as defined in section
352.01, subdivision 14a, multiplied
55.14by the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2, for each year of allowable
55.15service and pro rata for months less than a full year shall determine
new text begin determines new text end the amount
55.16of the retirement annuity to which the employee is entitled.
55.17 Sec. 2. Minnesota Statutes 2012, section 352.87, subdivision 3, is amended to read:
55.18 Subd. 3.
Retirement annuity formula. A person specified in subdivision 1 is
55.19entitled to receive a retirement annuity applicable for allowable service credit under this
55.20section calculated by multiplying the employee's average salary, as defined in section
55.21352.01, subdivision 14a
, by the
new text begin 2.0 new text end percent specified in section
356.315, subdivision 2a,
55.22 for each year or portions of a year of allowable service credit. No reduction for retirement
55.23before the normal retirement age, as specified in section
352.01, subdivision 25, applies
55.24to service to which this section applies.
55.25 Sec. 3. Minnesota Statutes 2012, section 352.93, subdivision 2, is amended to read:
55.26 Subd. 2.
Calculating monthly annuity. The monthly annuity under this section
55.27must be determined by multiplying the average monthly salary by the number of years, or
55.28completed months, of covered correctional service by the
new text begin 2.4 new text end percent specified in section
55.29
356.315, subdivision 5new text begin if employed as a correctional state employee before July 1, 2010, new text end
55.30
new text begin or 2.2 percent if employed as a correctional state employee after June 30, 2010new text end .
55.31 Sec. 4. Minnesota Statutes 2012, section 352.95, subdivision 1, is amended to read:
55.32 Subdivision 1.
Duty disability; computation of benefit. A covered correctional
55.33employee who is determined to have a duty disability, physical or psychological, as
56.1defined under section
352.01, subdivision 17b, is entitled to a duty disability benefit. The
56.2duty disability benefit must be based on covered correctional service only. The duty
56.3disability benefit amount is 50 percent of the average salary defined in section
352.93,
56.4plus an additional
new text begin 2.4 new text end percent equal to that specified in section
356.315, subdivision 5,
new text begin if new text end
56.5
new text begin employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed new text end
56.6
new text begin as a correctional state employee after June 30, 2010,new text end for each year of covered correctional
56.7service in excess of 20 years, ten months, prorated for completed months.
56.8 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
56.9 Subd. 2.
Normal retirement annuity. The annuity must be paid in monthly
56.10installments. The annuity shall be
new text begin is new text end equal to the amount determined by multiplying the
56.11average monthly salary of the member by the
new text begin 3.0 new text end percent specified in section
356.315,
56.12subdivision 6
, for each year and pro rata for completed months of service.
56.13 Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 1, is amended to read:
56.14 Subdivision 1.
Duty disability. A member who is determined to qualify for duty
56.15disability as defined in section
352B.011, subdivision 7, is entitled to receive a duty
56.16disability benefit while disabled. The benefits must be paid monthly. The duty disability
56.17benefit is an amount equal to the member's average monthly salary multiplied by 60 percent,
56.18plus an additional
new text begin 3.0 new text end percent equal to that specified in section
356.315, subdivision 6, for
56.19each year and pro rata for completed months of service in excess of 20 years, if any.
56.20 Sec. 7. Minnesota Statutes 2012, section 353.29, subdivision 3, is amended to read:
56.21 Subd. 3.
Retirement annuity formula. (a) This paragraph, in conjunction with
56.22section
353.30, subdivisions 1a, 1b, and 1c, applies to any member who first became a
56.23public employee or a member of a pension fund listed in section
356.30, subdivision 3,
56.24before July 1, 1989, unless paragraph (b), in conjunction with section
353.30, subdivision
56.255
, produces a higher annuity amount, in which case paragraph (b) will apply
new text begin appliesnew text end . The
56.26average salary as defined in section
353.01, subdivision 17a, multiplied by the
new text begin 2.2 new text end percent
56.27specified in section
356.315, subdivision 3, for each year of allowable service for the
56.28first ten years and thereafter by the
new text begin 2.7 new text end percent specified in section
356.315, subdivision
56.294
, per year of allowable service and completed months less than a full year for a basic
56.30member, and the
new text begin 1.2 new text end percent specified in section
356.315, subdivision 1, for each year
56.31of allowable service for the first ten years and thereafter by the
new text begin 1.7 new text end percent specified in
56.32section
356.315, subdivision 2, per year of allowable service and completed months less
57.1than a full year for a coordinated member shall determine
new text begin determines new text end the amount of the
57.2normal retirement annuity.
57.3 (b) This paragraph applies to a member who has become at least 55 years old and first
57.4became a public employee after June 30, 1989, and to any other member whose annuity
57.5amount, when calculated under this paragraph and in conjunction with section
353.30,
57.6subdivision 5
, is higher than it is when calculated under paragraph (a), in conjunction with
57.7section
353.30, subdivisions 1a, 1b, and 1c. The average salary, as defined in section
57.8353.01, subdivision 17a
, multiplied by the
new text begin 2.7 new text end percent specified in section
356.315,
57.9subdivision 4
, for each year of allowable service and completed months less than a full
57.10year for a basic member and the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2,
57.11 per year of allowable service and completed months less than a full year for a coordinated
57.12member, shall determine
new text begin determines new text end the amount of the normal retirement annuity.
57.13 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
57.14 Subd. 3.
Retirement annuity formula. The average salary as defined in section
57.15353.01, subdivision 17a
, multiplied by the
new text begin 3.0 new text end percent specified in section
356.315,
57.16subdivision 6
, per year of allowable service determines the amount of the normal
57.17retirement annuity. If the member has earned allowable service for performing services
57.18other than those of a police officer or firefighter, the annuity representing that service must
57.19be computed under sections
353.29 and
353.30.
57.20 Sec. 9. Minnesota Statutes 2012, section 353.656, subdivision 1, is amended to read:
57.21 Subdivision 1.
Duty disability; computation of benefits. (a) A member of the
57.22police and fire plan, other than a firefighter covered by section
353.6511, or a police
57.23officer covered by section
353.6512, who is determined to qualify for duty disability as
57.24defined in section
353.01, subdivision 41, shall
new text begin is entitled to new text end receive disability benefits
57.25during the period of such disability in an amount equal to 60 percent of the average salary
57.26as defined in section
353.01, subdivision 17a, plus an additional percentage specified
57.27under section
, subdivision 6,
new text begin 3.0 percent new text end of that average salary for each year
57.28of service in excess of 20 years.
57.29 (b) To be eligible for a benefit under paragraph (a), the member must have:
57.30 (1) not met the requirements for a retirement annuity under section
353.651,
57.31subdivision 1; or
57.32 (2) met the requirements under that subdivision, but does not have at least 20 years
57.33of allowable service credit.
58.1 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
58.2period of 60 months from the disability benefit accrual date and at the end of that period
58.3is subject to provisions of subdivision 5a.
58.4 (d) If the disability under this subdivision occurs before the member has at least five
58.5years of allowable service credit in the police and fire plan, the disability benefit must be
58.6computed on the average salary from which deductions were made for contribution to
58.7the police and fire fund.
58.8 Sec. 10. Minnesota Statutes 2012, section 353.656, subdivision 1a, is amended to read:
58.9 Subd. 1a.
Total and permanent duty disability; computation of benefits. (a) A
58.10member of the police and fire plan, other than a firefighter covered by section
353.6511, or
58.11a police officer covered by section
353.6512, whose disabling condition is determined
58.12to be a duty disability that is also a permanent and total disability as defined in section
58.13353.01
, subdivision 19, is entitled to receive, for life, disability benefits in an amount
58.14equal to 60 percent of the average salary as defined in section
353.01, subdivision 17a,
58.15plus an additional
new text begin 3.0 new text end percent specified in section
356.315, subdivision 6, of that average
58.16salary for each year of service in excess of 20 years.
58.17 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
58.18under section
353.33, subdivision 6, but the review may be waived if the executive
58.19director receives a written statement from the association's medical advisor that no
58.20improvement can be expected in the member's disabling condition that was the basis for
58.21payment of the benefit under paragraph (a). A member receiving a disability benefit
58.22under this subdivision who is found to no longer be permanently and totally disabled as
58.23defined under section
353.01, subdivision 19, but continues to meet the definition for
58.24receipt of a duty disability under section
353.01, subdivision 41, is subject to subdivision
58.251 upon written notice from the association's medical advisor that the person is no longer
58.26considered permanently and totally disabled.
58.27 (c) If a member approved for disability benefits under this subdivision dies before
58.28attaining normal retirement age as defined in section
353.01, subdivision 37, paragraph
58.29(b), or within 60 months of the effective date of the disability, whichever is later,
58.30the surviving spouse is entitled to receive a survivor benefit under section
353.657,
58.31subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
58.32condition for which disability benefits were approved, or section
353.657, subdivision
58.332, paragraph (a), clause (2), if the death is not directly related to the disabling condition
58.34for which benefits were approved under this subdivision.
59.1 (d) If the election of an actuarial equivalent optional annuity is not made at the time
59.2the permanent and total disability benefit accrues, an election must be made within 90
59.3days before the member attains normal retirement age as defined under section
353.01,
59.4subdivision 37, paragraph (b), or having collected total and permanent disability benefits
59.5for 60 months, whichever is later. If a member receiving disability benefits who has
59.6dependent children dies, subdivision 6a, paragraph (c), applies.
59.7 Sec. 11. Minnesota Statutes 2012, section 353.656, subdivision 3a, is amended to read:
59.8 Subd. 3a.
Total and permanent regular disability; computation of benefits. (a)
59.9A member of the police and fire plan, other than a firefighter covered by section
353.6511,
59.10or a police officer covered by section
353.6512, whose disabling condition is determined
59.11to be a regular disability under section
353.01, subdivision 46, that is also a permanent
59.12and total disability as defined in section
353.01, subdivision 19, is entitled to receive, for
59.13life, a disability benefit in an amount equal to 45 percent of the average salary as defined
59.14in section
353.01, subdivision 17a, plus an additional
new text begin 3.0 new text end percent specified in section
59.15, subdivision 6, of that average salary for each year of service in excess of 15 years.
59.16 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
59.17under section
353.33, subdivision 6, but the review may be waived if the executive
59.18director receives a written statement from the association's medical advisor that no
59.19improvement can be expected in the member's disabling condition that was the basis for
59.20payment of the benefit under paragraph (a). A member receiving a disability benefit under
59.21this subdivision who is found to no longer be permanently and totally disabled as defined
59.22under section
353.01, subdivision 19, but continues to meet the definition for receipt
59.23of a regular disability under section
353.01, subdivision 46, is subject to subdivision 3
59.24upon written notice from the association's medical advisor that the person is no longer
59.25considered permanently and totally disabled.
59.26 (c) A member approved for disability benefits under this subdivision may elect
59.27to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
59.28election of an actuarial equivalent optional annuity is not made at the time the total and
59.29permanent disability benefit accrues, an election must be made within 90 days before
59.30the member attains normal retirement age as defined in section
353.01, subdivision 37,
59.31paragraph (b), or having collected disability benefits for 60 months, whichever is later.
59.32No surviving spouse benefits are payable if the member dies during the period in which
59.33a normal total and permanent disability benefit is being paid. If a member receiving
59.34disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
60.1 Sec. 12. Minnesota Statutes 2012, section 353E.04, subdivision 3, is amended to read:
60.2 Subd. 3.
Annuity amount. new text begin (a) new text end The average salary as defined in subdivision 2,
60.3multiplied by the
new text begin 1.9 new text end percent specified in section
356.315, subdivision 5a, for each year of
60.4allowable service, determines the amount of the normal retirement annuity.
60.5
new text begin (b)new text end If a person has earned allowable service in the
new text begin general employees retirement plan new text end
60.6
new text begin of the new text end Public Employees Retirement Association or the public employees police and fire
60.7fund prior to
new text begin retirement plan before new text end participation under this chapter, the retirement annuity
60.8representing such service must be computed in accordance with the formula specified in
60.9sections
353.29 and
353.30 or
353.651, whichever applies.
60.10 Sec. 13. Minnesota Statutes 2012, section 353E.06, subdivision 1, is amended to read:
60.11 Subdivision 1.
Duty disability qualification requirements. A local government
60.12correctional employee who is determined to qualify for a duty disability as defined in
60.13section
353E.001, subdivision 1, is entitled to a disability benefit. The disability benefit
60.14must be based on covered service under this chapter only and is an amount equal to 47.5
60.15percent of the average salary defined in section
353E.04, subdivision 2, plus an additional
60.16
new text begin 1.9 new text end percent equal to that specified in section
356.315, subdivision 5a, for each year of
60.17covered service under this chapter in excess of 25 years.
60.18 Sec. 14. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
60.19 Subd. 6.
Computation of formula program retirement annuity. (a) The formula
60.20retirement annuity must be computed in accordance with the applicable provisions of the
60.21formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
60.22section
354.05, subdivision 13a, for the period of the member's formula service credit.
60.23 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
60.24became a member of the association or a member of a pension fund listed in section
60.25356.30, subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with
60.26paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
60.27average salary as defined in section
354.05, subdivision 13a, multiplied by the following
60.28percentages per year of formula service credit shall determine the amount of the annuity to
60.29which the member qualifying therefor is entitled for service rendered before July 1, 2006:
60.30
Coordinated Member
Basic Member
60.31
60.32
60.33
Each year of service
during first ten
the new text begin 1.2 new text end percent specified in
section
, subdivision
1, per year
the new text begin 2.2 new text end percent specified
in section
,
subdivision 3, per year
60.34
60.35
60.36
Each year of service
thereafter
the new text begin 1.7 new text end percent specified in
section
, subdivision
2, per year
the new text begin 2.7 new text end percent specified
in section
,
subdivision 4, per year
61.1 For service rendered on or after July 1, 2006, the average salary as defined in section
61.2354.05
, subdivision 13a, multiplied by the following percentages per year of service credit,
61.3determines the amount the annuity to which the member qualifying therefor is entitled:
61.4
Coordinated Member
Basic Member
61.5
61.6
61.7
Each year of service
during first ten
the new text begin 1.4 new text end percent specified in
section
, subdivision
1a, per year
the new text begin 2.2 new text end percent specified
in section
,
subdivision 3, per year
61.8
61.9
61.10
Each year of service after
ten years of service
the new text begin 1.9 new text end percent specified in
section
, subdivision
2b, per year
the new text begin 2.7 new text end percent specified
in section
,
subdivision 4, per year
61.11 (c)(i) This paragraph applies only to a person who first became a member of the
61.12association or a member of a pension fund listed in section
356.30, subdivision 3, before
61.13July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
61.14conjunction with this paragraph than when calculated under paragraph (d), in conjunction
61.15with paragraph (e).
61.16 (ii) Where any member retires prior to normal retirement age under a formula
61.17annuity, the member shall be paid a retirement annuity in an amount equal to the normal
61.18annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
61.19that the member is under normal retirement age at the time of retirement except that for
61.20any member who has 30 or more years of allowable service credit, the reduction shall be
61.21applied only for each month that the member is under age 62.
61.22 (iii) Any member whose attained age plus credited allowable service totals 90 years
61.23is entitled, upon application, to a retirement annuity in an amount equal to the normal
61.24annuity provided in paragraph (b), without any reduction by reason of early retirement.
61.25 (d) This paragraph applies to a member who has become at least 55 years old and
61.26first became a member of the association after June 30, 1989, and to any other member
61.27who has become at least 55 years old and whose annuity amount when calculated
61.28under this paragraph and in conjunction with paragraph (e), is higher than it is when
61.29calculated under paragraph (b), in conjunction with paragraph (c). For a basic member,
61.30the average salary, as defined in section
354.05, subdivision 13a, multiplied by the
new text begin 2.7 new text end
61.31percent specified by section
356.315, subdivision 4, for each year of service for a basic
61.32member shall determine
new text begin determines new text end the amount of the retirement annuity to which the
61.33basic member is entitled. The annuity of a basic member who was a member of the
61.34former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must be
61.35determined according to the annuity formula under the articles of incorporation of the
61.36former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
61.37coordinated member, the average salary, as defined in section
354.05, subdivision 13a,
61.38multiplied by the
new text begin 1.7 new text end percent specified in section
, subdivision 2, for each year of
62.1service rendered before July 1, 2006, and by the
new text begin 1.9 new text end percent specified in section
,
62.2subdivision 2b, for each year of service rendered on or after July 1, 2006, determines the
62.3amount of the retirement annuity to which the coordinated member is entitled.
62.4 (e) This paragraph applies to a person who has become at least 55 years old and first
62.5becomes a member of the association after June 30, 1989, and to any other member who
62.6has become at least 55 years old and whose annuity is higher when calculated under
62.7paragraph (d) in conjunction with this paragraph than when calculated under paragraph
62.8(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
62.9before the normal retirement age shall be paid the normal annuity provided in paragraph
62.10(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would
62.11be payable to the employee if the employee deferred receipt of the annuity and the annuity
62.12amount were augmented at an annual rate of three percent compounded annually from the
62.13day the annuity begins to accrue until the normal retirement age if the employee became
62.14an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
62.15becomes an employee after June 30, 2006.
62.16 (f) No retirement annuity is payable to a former employee with a salary that exceeds
62.1795 percent of the governor's salary unless and until the salary figures used in computing
62.18the highest five successive years average salary under paragraph (a) have been audited by
62.19the Teachers Retirement Association and determined by the executive director to comply
62.20with the requirements and limitations of section
354.05, subdivisions 35 and 35a.
62.21 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
62.22 Subd. 4.
Computation of normal coordinated retirement annuity; St. Paul
62.23
fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
62.24Retirement Fund Association.
62.25(b) The normal coordinated retirement annuity is an amount equal to a retiring
62.26coordinated member's average salary under section
354A.011, subdivision 7a, multiplied
62.27by the retirement annuity formula percentage.
62.28(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
62.29became a member or a member in a pension fund listed in section
356.30, subdivision 3,
62.30before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
62.31higher annuity amount, in which case paragraph (d) will apply. The retirement annuity
62.32formula percentage for purposes of this paragraph is the
new text begin 1.2 new text end percent specified in section
62.33
356.315, subdivision 1, per year for each year of coordinated service for the first ten
62.34years and the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2, for each year of
62.35coordinated service thereafter.
63.1(d) This paragraph applies to a person who has become at least 55 years old and who
63.2first becomes a member after June 30, 1989, and to any other member who has become
63.3at least 55 years old and whose annuity amount, when calculated under this paragraph
63.4and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
63.5(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
63.6percentage for purposes of this paragraph is the
new text begin 1.7 new text end percent specified in section
356.315,
63.7subdivision 2
, for each year of coordinated service.
63.8 Sec. 16. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
63.9 Subd. 4a.
Computation of normal coordinated retirement annuity; Duluth
63.10
fund. (a) This subdivision applies to the new law coordinated program of the Duluth
63.11Teachers Retirement Fund Association.
63.12(b) The normal coordinated retirement annuity is an amount equal to a retiring
63.13coordinated member's average salary under section
354A.011, subdivision 7a, multiplied
63.14by the retirement annuity formula percentage.
63.15(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
63.16became a member or a member in a pension fund listed in section
356.30, subdivision 3,
63.17before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
63.18higher annuity amount, in which case paragraph (d) applies. The retirement annuity
63.19formula percentage for purposes of this paragraph is the
new text begin 1.2 new text end percent specified in section
63.20
356.315, subdivision 1, per year for each year of coordinated service for the first ten
63.21years and the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2, for each subsequent
63.22year of coordinated service.
63.23(d) This paragraph applies to a person who is at least 55 years old and who first
63.24becomes a member after June 30, 1989, and to any other member who is at least 55 years
63.25old and whose annuity amount, when calculated under this paragraph and in conjunction
63.26with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
63.27with subdivision 6. The retirement annuity formula percentage for purposes of this
63.28paragraph is the
new text begin 1.7 new text end percent specified in section
356.315, subdivision 2, for each year of
63.29coordinated service.
63.30 Sec. 17. Minnesota Statutes 2012, section 356.30, subdivision 1, is amended to read:
63.31 Subdivision 1.
Eligibility; computation of annuity. (a) Notwithstanding any
63.32provisions of the laws governing the retirement plans enumerated in subdivision 3, a
63.33person who has met the qualifications of paragraph (b) may elect to receive a retirement
63.34annuity from each enumerated retirement plan in which the person has at least one-half
64.1year of allowable service, based on the allowable service in each plan, subject to the
64.2provisions of paragraph (c).
64.3(b) A person may receive, upon retirement, a retirement annuity from each
64.4enumerated retirement plan in which the person has at least one-half year of allowable
64.5service, and augmentation of a deferred annuity calculated at the appropriate rate under
64.6the laws governing each public pension plan or fund named in subdivision 3, based on
64.7the date of the person's initial entry into public employment from the date the person
64.8terminated all public service if:
64.9(1) the person has allowable service in any two or more of the enumerated plans;
64.10(2) the person has sufficient allowable service in total that equals or exceeds the
64.11applicable service credit vesting requirement of the retirement plan with the longest
64.12applicable service credit vesting requirement; and
64.13(3) the person has not begun to receive an annuity from any enumerated plan or the
64.14person has made application for benefits from each applicable plan and the effective
64.15dates of the retirement annuity with each plan under which the person chooses to receive
64.16an annuity are within a one-year period.
64.17(c) The retirement annuity from each plan must be based upon the allowable service,
64.18accrual rates, and average salary in the applicable plan except as further specified or
64.19modified in the following clauses:
64.20(1) the laws governing annuities must be the law in effect on the date of termination
64.21from the last period of public service under a covered retirement plan with which the person
64.22earned a minimum of one-half year of allowable service credit during that employment;
64.23(2) the "average salary" on which the annuity from each covered plan in which
64.24the employee has credit in a formula plan must be based on the employee's highest five
64.25successive years of covered salary during the entire service in covered plans;
64.26(3) the accrual rates to be used by each plan must be those percentages prescribed by
64.27each plan's formula as continued for the respective years of allowable service from one
64.28plan to the next, recognizing all previous allowable service with the other covered plans;
64.29(4) the allowable service in all the plans must be combined in determining eligibility
64.30for and the application of each plan's provisions in respect to reduction in the annuity
64.31amount for retirement prior to normal retirement age; and
64.32(5) the annuity amount payable for any allowable service under a nonformula plan
64.33of a covered plan must not be affected, but such service and covered salary must be used
64.34in the above calculation.
64.35(d) This section does not apply to any person whose final termination from the last
64.36public service under a covered plan was before May 1, 1975.
65.1(e) For the purpose of computing annuities under this section, the accrual rates
65.2used by any covered plan, except the public employees police and fire plan, the judges
65.3retirement fund, and the State Patrol retirement plan, must not exceed the
new text begin 2.7 new text end percent
65.4specified in section
356.315, subdivision 4, per year of service for any year of service or
65.5fraction thereof. The formula percentage used by the judges retirement fund must not
65.6exceed the percentage rate specified in section
356.315, subdivision 8,
new text begin 3.2 percent new text end per
65.7year of service for any year of service or fraction thereof. The accrual rate used by the
65.8public employees police and fire plan and the State Patrol retirement plan must not exceed
65.9the percentage rate specified in section
356.315, subdivision 6,
new text begin 3.0 percent new text end per year of
65.10service for any year of service or fraction thereof. The accrual rate or rates used by the
65.11legislators retirement plan must not exceed 2.5 percent, but this limit does not apply to the
65.12adjustment provided under section
3A.02, subdivision 1, paragraph (c).
65.13(f) Any period of time for which a person has credit in more than one of the covered
65.14plans must be used only once for the purpose of determining total allowable service.
65.15(g) If the period of duplicated service credit is more than one-half year, or the person
65.16has credit for more than one-half year, with each of the plans, each plan must apply its
65.17formula to a prorated service credit for the period of duplicated service based on a fraction
65.18of the salary on which deductions were paid to that fund for the period divided by the total
65.19salary on which deductions were paid to all plans for the period.
65.20(h) If the period of duplicated service credit is less than one-half year, or when
65.21added to other service credit with that plan is less than one-half year, the service credit
65.22must be ignored and a refund of contributions made to the person in accord with that
65.23plan's refund provisions.
65.24 Sec. 18. Minnesota Statutes 2012, section 356.315, subdivision 9, is amended to read:
65.25 Subd. 9.
Future benefit accrual rate increases. After January 2, 1998, benefit
65.26accrual rate increases under this section
new text begin 352.115, subdivision 3; 352.87, subdivision new text end
65.27
new text begin 3; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10, new text end
65.28
new text begin subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision new text end
65.29
new text begin 1, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6; new text end
65.30
new text begin 354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124, new text end
65.31
new text begin subdivision 1, new text end must apply only to allowable service or formula service rendered after the
65.32effective date of the benefit accrual rate increase.
65.33 Sec. 19. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
66.1 Subd. 22.
Service credit limit. "Service credit limit" means the greater of: (1) 24
66.2years of allowable service under this chapter; or (2) for judges with allowable service
66.3rendered before July 1, 1980, the number of years of allowable service under chapter 490,
66.4which, when multiplied by the percentage listed in section
356.315, subdivision 7 new text begin 2.7 new text end or 8
66.5
new text begin 3.2new text end , whichever is applicable to each year of service, equals 76.8.
66.6 Sec. 20. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
66.7 Subdivision 1.
Basic retirement annuity. (a) Except as qualified hereinafter from
66.8and after the mandatory retirement date, the normal retirement date, the early retirement
66.9date, or one year from the disability retirement date, as the case may be, a retiring judge is
66.10eligible to receive a retirement annuity from the judges' retirement fund.
66.11 (b) The retirement annuity is an amount equal to: (1) the
new text begin 2.7 new text end percent specified in
66.12section
356.315, subdivision 7, multiplied by the judge's final average compensation with
66.13that result then multiplied by the number of years and fractions of years of allowable
66.14service rendered before July 1, 1980; plus (2) the
new text begin 3.2 new text end percent specified in section
356.315,
66.15subdivision 8
, multiplied by the judge's final average compensation with that result then
66.16multiplied by the number of years and fractions of years of allowable service rendered
66.17after June 30, 1980.
66.18 (c) Service that exceeds the service credit limit in section
490.121, subdivision 22,
66.19must be excluded in calculating the retirement annuity, but the compensation earned by
66.20the judge during this period of judicial service must be used in determining a judge's final
66.21average compensation and calculating the retirement annuity.
66.22 Sec. 21.
new text begin REPEALER.new text end
66.23
new text begin Minnesota Statutes 2012, section 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, new text end
66.24
new text begin 6, 7, and 8,new text end new text begin are repealed.new text end
66.25 Sec. 22.
new text begin EFFECTIVE DATE.new text end
66.26
new text begin Sections 1 to 21 are effective the day following final enactment.new text end
66.27
ARTICLE 5
66.28
REVISIONS AND REPEALS OF FORMER LOCAL POLICE AND PAID
66.29
FIREFIGHTER RELIEF ASSOCIATION LAWS
66.30 Section 1. Minnesota Statutes 2012, section 6.495, subdivision 1, is amended to read:
66.31 Subdivision 1.
Audit and examinations. All powers and duties conferred and
66.32imposed upon the state auditor with respect to state, county, and first-class city officers,
67.1institutions, and property are hereby extended to the various fire and police relief
67.2associations in the state. The state auditor shall annually audit the special and general
67.3funds of the relief association or, at the request of the board of trustees or the municipality,
67.4the state auditor may contract for an annual audit by a certified public accountant. The
67.5state auditor may determine that an annual audit is not necessary, in which case the state
67.6auditor shall develop a plan for examination of unaudited relief associations, and shall
67.7prescribe suitable systems of accounts and budgeting, and forms, books, and instructions
67.8concerning the same.
67.9Copies of the written report of the state auditor on the financial condition and
67.10accounts of the relief association shall
new text begin must new text end be filed with the board of trustees of the
67.11relief association and the governing body of the municipality associated with the relief
67.12association. If the report discloses malfeasance, misfeasance, or nonfeasance with regard
67.13to relief association funds, copies thereof shall
new text begin must new text end be filed with the city attorney or county
67.14attorney in the city or county in which the relief association is located, and these officials of
67.15the law shall institute proceedings, civil or criminal, as the law and public interest require.
67.16 Sec. 2. Minnesota Statutes 2012, section 6.495, subdivision 3, is amended to read:
67.17 Subd. 3.
Report to commissioner of revenue. The state auditor shall file with
67.18the commissioner of revenue a financial compliance report certifying for each relief
67.19association:
67.20(1) the completion of the annual financial report required pursuant to
new text begin under new text end section
67.2169.051
and the auditing or certification of those financial reports pursuant to
new text begin under new text end
67.22subdivision 1; and
67.23(2) the receipt of any actuarial valuations required pursuant to
new text begin under new text end section 69.77
67.24or
69.773new text begin or sections 31 to 42new text end .
67.25 Sec. 3. Minnesota Statutes 2012, section 6.67, is amended to read:
67.26
6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
67.27 Whenever a public accountant in the course of auditing the books and affairs of a
67.28political subdivision or a local public pension plan governed by section
, sections
67.2969.771
to
69.775, or chapter 354A or 424A,
new text begin or sections 31 to 42, new text end discovers evidence
67.30pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or
67.31employee in the conduct of duties and affairs, the public accountant shall promptly make
67.32a report of such discovery to the state auditor and the county attorney of the county in
67.33which the governmental unit is situated and the public accountant shall also furnish a
67.34copy of the report of audit upon completion to said officers. The county attorney shall
68.1act on such report in the same manner as required by law for reports made to the county
68.2attorney by the state auditor.
68.3 Sec. 4. Minnesota Statutes 2012, section 13D.01, subdivision 1, is amended to read:
68.4 Subdivision 1.
In executive branch, local government. All meetings, including
68.5executive sessions, must be open to the public
68.6(a) of a state
68.7(1) agency,
68.8(2) board,
68.9(3) commission, or
68.10(4) department,
68.11when required or permitted by law to transact public business in a meeting;
68.12(b) of the governing body of a
68.13(1) school district however organized,
68.14(2) unorganized territory,
68.15(3) county,
68.16(4) statutory or home rule charter city,
68.17(5) town, or
68.18(6) other public body;
68.19(c) of any
68.20(1) committee,
68.21(2) subcommittee,
68.22(3) board,
68.23(4) department, or
68.24(5) commission,
68.25of a public body; and
68.26(d) of the governing body or a committee of:
68.27(1) a statewide public pension plan defined in section
356A.01, subdivision 24; or
68.28(2) a local public pension plan governed by section 69.77, sections
69.771 to
69.775,
68.29or chapter 354A
new text begin , or sections 31 to 42new text end .
68.30 Sec. 5. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
68.31 Subdivision 1.
Definitions. Unless the language or context clearly indicates that
68.32a different meaning is intended, the following words and terms, for the purposes of this
68.33chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
68.34 (a) "Commissioner" means the commissioner of revenue.
69.1 (b) "Municipality" means:
69.2 (1) a home rule charter or statutory city;
69.3 (2) an organized town;
69.4 (3) a park district subject to chapter 398;
69.5 (4) the University of Minnesota;
69.6 (5) for purposes of the fire state aid program only, an American Indian tribal
69.7government entity located within a federally recognized American Indian reservation;
69.8 (6) for purposes of the police state aid program only, an American Indian tribal
69.9government with a tribal police department which exercises state arrest powers under
69.10section
626.90,
626.91,
626.92, or
626.93;
69.11 (7) for purposes of the police state aid program only, the Metropolitan Airports
69.12Commission; and
69.13 (8) for purposes of the police state aid program only, the Department of Natural
69.14Resources and the Department of Public Safety with respect to peace officers covered
69.15under chapter 352B.
69.16 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
69.17commissioner containing space for reporting by insurers of fire, lightning, sprinkler
69.18leakage and extended coverage premiums received upon risks located or to be performed
69.19in this state less return premiums and dividends.
69.20 (d) "Firetown" means the area serviced by any municipality having a qualified fire
69.21department or a qualified incorporated fire department having a subsidiary volunteer
69.22firefighters' relief association.
69.23 (e) "Market value" means latest available market value of all property in a taxing
69.24jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
69.25taxation obtained from information which appears on abstracts filed with the commissioner
69.26of revenue or equalized by the State Board of Equalization.
69.27 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
69.28commissioner for reporting by each fire and casualty insurer of all premiums received
69.29upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
69.30during the preceding calendar year, with reference to insurance written for insuring against
69.31the perils contained in auto insurance coverages as reported in the Minnesota business
69.32schedule of the annual financial statement which each insurer is required to file with
69.33the commissioner in accordance with the governing laws or rules less return premiums
69.34and dividends.
69.35 (g) "Peace officer" means any person:
70.1 (1) whose primary source of income derived from wages is from direct employment
70.2by a municipality or county as a law enforcement officer on a full-time basis of not less
70.3than 30 hours per week;
70.4 (2) who has been employed for a minimum of six months prior to December 31
70.5preceding the date of the current year's certification under subdivision 2, clause (b);
70.6 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
70.7 (4) who is licensed by the Peace Officers Standards and Training Board and is
70.8authorized to arrest with a warrant; and
70.9 (5) who is a member of the State Patrol retirement plan or the public employees
70.10police and fire fund.
70.11 (h) "Full-time equivalent number of peace officers providing contract service" means
70.12the integral or fractional number of peace officers which would be necessary to provide
70.13the contract service if all peace officers providing service were employed on a full-time
70.14basis as defined by the employing unit and the municipality receiving the contract service.
70.15 (i) "Retirement benefits other than a service pension" means any disbursement
70.16authorized under section
424A.05, subdivision 3, clauses (3) and (4).
70.17 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
70.18(1) for the police state aid program and police relief association financial reports:
70.19(i) the person who was elected or appointed to the specified position or, in the
70.20absence of the person, another person who is designated by the applicable governing body;
70.21(ii) in a park district, the secretary of the board of park district commissioners;
70.22(iii) in the case of the University of Minnesota, the official designated by the Board
70.23of Regents;
70.24(iv) for the Metropolitan Airports Commission, the person designated by the
70.25commission;
70.26(v) for the Department of Natural Resources or the Department of Public Safety, the
70.27respective commissioner;
70.28(vi) for a tribal police department which exercises state arrest powers under section
70.29626.90
,
626.91,
626.92, or
626.93, the person designated by the applicable American
70.30Indian tribal government; and
70.31(2) for the fire state aid program and fire relief association financial reports, the
70.32person who was elected or appointed to the specified position, or, for governmental
70.33entities other than counties, if the governing body of the governmental entity designates
70.34the position to perform the function, the chief financial official of the governmental entity
70.35or the chief administrative official of the governmental entity.
71.1(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
71.2retirement plan established by chapter 353G.
71.3 Sec. 6. Minnesota Statutes 2012, section 69.011, subdivision 2, is amended to read:
71.4 Subd. 2.
Qualification for fire or police state aid. (a) Unless retirement coverage
71.5is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in
71.6order to qualify to receive fire state aid, on or before March 15 annually, in conjunction
71.7with the financial report required pursuant to section
69.051, the clerk of each municipality
71.8having a duly organized fire department as provided in subdivision 4, or the secretary of
71.9each independent nonprofit firefighting corporation having a subsidiary incorporated
71.10firefighters' relief association
new text begin ,new text end whichever is applicable, and the fire chief, shall jointly
71.11certify the existence of the municipal fire department or of the independent nonprofit
71.12firefighting corporation, whichever is applicable, which meets the minimum qualification
71.13requirements set forth in this subdivision, and the fire personnel and equipment of the
71.14municipal fire department or the independent nonprofit firefighting corporation as of the
71.15preceding December 31.
71.16(b) Where retirement coverage is provided by the voluntary statewide lump-sum
71.17volunteer firefighter retirement plan,
new text begin in order to qualify to receive fire state aid, on or new text end
71.18
new text begin before March 15, annually, new text end the executive director of the Public Employees Retirement
71.19Association shall certify the existence of that coverage for each municipality and the
71.20municipal clerk or independent nonprofit firefighting corporation secretary, whichever
71.21applies, and the applicable fire chief shall certify the fire personnel and fire department
71.22equipment as of the preceding December 31.
71.23(c) Certification must be made to the commissioner on a form prescribed by the
71.24commissioner and shall include any other facts the commissioner may require. The
71.25certification must be made to the commissioner in duplicate. Each copy of the certificate
71.26must be duly executed and is deemed to be an original. The commissioner shall forward
71.27one copy to the auditor of the county wherein the fire department is located and shall
71.28retain one copy.
71.29(d) On or before March 15 annually the clerk of each municipality having a duly
71.30organized police department and having a duly incorporated relief association shall certify
71.31that fact to the county auditor of the county where the police department is located and to
71.32the commissioner on a form prescribed by the commissioner together with the other facts
71.33the commissioner or auditor may require.
71.34(e)
new text begin (c) new text end Except as provided in subdivision 2b, on or before March 15 annually,
new text begin in new text end
71.35
new text begin order to qualify to receive police state aid, new text end the clerk of each municipality and the auditor of
72.1each county employing one or more peace officers as defined in subdivision 1, clause (g),
72.2shall certify the number of such peace officers to the commissioner on forms prescribed by
72.3the commissioner. Credit for officers employed less than a full year must be apportioned.
72.4Each full month of employment of a qualifying officer during the calendar year entitles the
72.5employing municipality or county to credit for 1/12 of the payment for employment of a
72.6peace officer for the entire year. For purposes of sections
69.011 to
69.051, employment
72.7of a peace officer commences when the peace officer is entered on the payroll of the
72.8respective municipal police department or county sheriff's department. No peace officer
72.9may be included in the certification of the number of peace officers by more than one
72.10municipality or county
new text begin employing unit new text end for the same month.
72.11
new text begin (d) A certification made under this subdivision must be filed with the commissioner, new text end
72.12
new text begin must be made on a form prescribed by the commissioner, and must include any other facts new text end
72.13
new text begin that the commissioner requires.new text end
72.14 Sec. 7. Minnesota Statutes 2012, section 69.011, subdivision 3, is amended to read:
72.15 Subd. 3.
Failure to file certificate deemed waiver. new text begin (a) new text end If a certification required by
72.16this section is not filed with the commissioner by the due date prescribed by this section,
72.17the commissioner shall notify the
new text begin county, the new text end municipality
new text begin ,new text end or the nonprofit firefighting
72.18corporation that a portion or all of its current year aid will be forfeited if the certification
72.19is not received within ten days.
72.20
new text begin (b)new text end The amount of aid forfeited is equal to the amount of state police aid or state fire
72.21aid determined for the
new text begin county, the new text end municipality
new text begin ,new text end or
new text begin the nonprofit new text end firefighting corporation
72.22for the current year, multiplied by five percent for each week or fraction of a week that
72.23this certification is late. The penalty will
new text begin must new text end be computed beginning ten days after the
72.24postmark date of the commissioner's notification as required under this subdivision. All
72.25forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the
72.26certificate form cannot
new text begin may not new text end be used as a defense for not filing
new text begin a failure to filenew text end .
72.27 Sec. 8. Minnesota Statutes 2012, section 69.011, subdivision 4, is amended to read:
72.28 Subd. 4.
Qualification for new text begin fire new text end state aid. Any
new text begin (a) A new text end municipality in this state
72.29
new text begin qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and new text end
72.30
new text begin if it meets the specific requirements of paragraph (c).new text end
72.31
new text begin (b) Minimum qualifications for fire state aid include the following:new text end
72.32
new text begin (1) new text end having for more than one year an organized fire department and officially
72.33established by the governing body of the municipality or an independent nonprofit
72.34firefighting corporation created under the nonprofit corporation act of this state and
73.1operating exclusively for firefighting purposes and providing retirement and relief benefits
73.2to its members,
new text begin ; andnew text end
73.3
new text begin (2)new text end having a separate subsidiary incorporated firefighter's relief and pension
73.4 association providing retirement and relief benefits, or participating in the voluntary
73.5statewide lump-sum volunteer firefighter retirement plan, may qualify to receive state aid
73.6if it meets the following
new text begin or, if a paid fire department, having retirement coverage by the new text end
73.7
new text begin public employees police and fire retirement plan.new text end
73.8
new text begin (c) new text end Minimum requirements
new text begin for fire state aid also include the following new text end or
new text begin their new text end
73.9equivalent as determined by the state fire marshal by July 1, 1972:
73.10(a)
new text begin (1) having new text end ten paid or volunteer firefighters including a fire chief and assistant
73.11fire chief, and
new text begin ;new text end
73.12(b)
new text begin (2) having new text end regular scheduled meetings and frequent drills including instructions
73.13in firefighting tactics and in the use, care, and operation of all fire apparatus and
73.14equipment, and
new text begin ;new text end
73.15(c)
new text begin (3) having new text end a motorized fire truck equipped with a motorized pump, 250 gallon or
73.16larger water tank, 300 feet of one inch or larger fire hose in two lines with combination
73.17spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent,
73.18dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
73.19axes, lanterns, fire coats, helmets,
new text begin and new text end boots, and
new text begin ;new text end
73.20(d)
new text begin (4) having new text end apparatus suitably housed in a building of good construction with
73.21facilities for care of hose and equipment, and
new text begin ;new text end
73.22(e)
new text begin (5) having new text end a reliable and adequate method of receiving fire alarms by telephone
73.23or with electric siren and suitable means of sounding an alarm, and
new text begin ;new text end
73.24(f)
new text begin (6) new text end if response is to be provided outside the corporate limits of the municipality
73.25wherein the fire department is located, the municipality has
new text begin having new text end another piece of
73.26motorized apparatus to make the response,
new text begin ;new text end and
73.27(g)
new text begin (7) meeting new text end other requirements
new text begin that new text end the commissioner establishes by rule.
73.28 Sec. 9. Minnesota Statutes 2012, section 69.021, subdivision 1, is amended to read:
73.29 Subdivision 1.
Minnesota Firetown Premium Report and Minnesota Aid to
73.30
Police Premium Report. The commissioner shall, at the time of mailing tax forms,
73.31send blank copies of the Minnesota Firetown Premium Report and when applicable the
73.32Minnesota Aid to Police Premium Report to each insurer, including township and farmers
73.33mutual insurance companies licensed to write insurance as described in section
69.011,
73.34subdivision 1
, clauses (c) and (f) in this state. These reports shall
new text begin must new text end contain space
74.1for the insurers name, address, gross premiums less return premiums, dividends, net
74.2premiums, certification and other facts
new text begin that new text end the commissioner may require.
74.3 Sec. 10. Minnesota Statutes 2012, section 69.021, subdivision 2, is amended to read:
74.4 Subd. 2.
Report of premiums. new text begin (a) new text end Each insurer, including township and farmers
74.5mutual insurers where applicable, shall return to the commissioner the reports described in
74.6subdivision 1 certified by its secretary and president or chief financial officer.
74.7
new text begin (b)new text end The Minnesota Firetown Premium Report shall
new text begin must new text end contain a true and accurate
74.8statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and
74.9extended coverage insurance of all domestic mutual insurers and the total premiums for
74.10all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all
74.11other insurers, less return premiums and dividends received by them on that business
74.12written or done during the preceding calendar year upon property located within the state
74.13or brought into the state for temporary use. The fire and extended coverage portion of
74.14multiperil and multiple peril package premiums and all other combination premiums shall
74.15
new text begin must new text end be determined by applying percentages determined by the commissioner or by rating
74.16bureaus recognized by the commissioner.
74.17
new text begin (c)new text end The Minnesota Aid to Police Premium Report shall
new text begin must new text end contain a true and
74.18accurate statement of the total premiums, less return premiums and dividends, on all direct
74.19business received by such insurer in this state, or by its agents for it, in cash or otherwise,
74.20during the preceding calendar year, with reference to insurance written for perils described
74.21in section
69.011, subdivision 1, clause (f).
74.22 Sec. 11. Minnesota Statutes 2012, section 69.021, subdivision 3, is amended to read:
74.23 Subd. 3.
Penalty for fraudulent, incorrect, incomplete returns and late filing of
74.24
report. (a) When it appears to the commissioner that any insurer has made an incomplete or
74.25inaccurate report
new text begin ,new text end the commissioner shall return the report and demand that a complete and
74.26accurate report be filed. If the insurer fails to file a report on or before March 1, annually,
74.27the insurer shall be
new text begin is new text end liable and shall pay $25 for each seven days delinquent
new text begin ,new text end or fraction
74.28thereof
new text begin , that the report is delinquent, butnew text end not to exceed $200. If the insurer fails to file a
74.29corrected report within 30 days after demand, the insurer is liable for the penalties provided
74.30in this subdivision
new text begin paragraph (b) or (c) new text end for knowingly filing an inaccurate or false report.
74.31(b) Any insurer who
new text begin which new text end knowingly makes and files an inaccurate or false report
74.32shall be
new text begin is new text end liable to a fine
new text begin in an amount new text end of not less than $25 nor more than $1,000
new text begin , as new text end
74.33
new text begin determined by the commissioner,new text end and
new text begin additionally new text end the commissioner of commerce may
74.34revoke the insurer's certificate of authority.
75.1(c) Any person whose duty it is to make the report who fails or refuses to make it
75.2within 30 days after notification by the commissioner shall be fined
new text begin an amount of new text end not
75.3more than $1,000.
75.4
new text begin (d)new text end Failure of the insurer to receive a reporting form shall
new text begin does new text end not excuse the insurer
75.5from filing the report.
75.6 Sec. 12. Minnesota Statutes 2012, section 69.021, subdivision 4, is amended to read:
75.7 Subd. 4.
Determination of qualified state aid recipients; certification to
75.8
commissioner of management and budget. (a) The commissioner shall determine
75.9which municipalities and independent nonprofit firefighting corporations are qualified to
75.10receive fire state aid
new text begin directly or are qualified to receive the benefit of fire state aid paid new text end
75.11
new text begin to the voluntary statewide lump-sum volunteer firefighter retirement plan new text end and which
75.12municipalities and counties are qualified to receive police state aid.
75.13(b) The commissioner shall determine qualification for state aid upon receipt of:
75.14(1) the fire department personnel and equipment certification or the police department
75.15and qualified peace officers certificate, whichever applies, required under section
69.011;
75.16(2) the financial compliance report required under section
6.495, subdivision 3, if
75.17applicable; and
75.18(3) any other relevant information which comes to the attention of the commissioner.
75.19(c) Upon completion of the determination, on or before October 1, the commissioner
75.20shall calculate the amount of:
75.21(1) the police state aid which each county or municipality is to receive under
75.22subdivisions 5, 6, 7a, and 10; and
75.23(2) the fire state aid which each municipality or nonprofit firefighting corporation
75.24is to receive under subdivisions 5 and 7.
75.25(d) The commissioner shall certify to the commissioner of management and budget
75.26the name of each county or municipality, and the amount of state aid which each county or
75.27municipality is to receive, in the case of police state aid. The commissioner shall certify to
75.28the commissioner of management and budget the name of each municipality or independent
75.29nonprofit firefighting corporation and the amount of state aid which each municipality
75.30or independent nonprofit firefighting corporation is to receive
new text begin directly or the amount of new text end
75.31
new text begin state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is new text end
75.32
new text begin qualified to receive on behalf of the municipality or corporationnew text end , in the case of fire state aid.
75.33 Sec. 13. Minnesota Statutes 2012, section 69.021, subdivision 5, is amended to read:
76.1 Subd. 5.
Calculation of state aid. (a) The amount of fire state aid available for
76.2apportionment, before the addition of the minimum fire state aid allocation amount under
76.3subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
76.4upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
76.5the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
76.6must be reduced by the amount required to pay the state auditor's costs and expenses of
76.7the audits or exams of the firefighters relief associations.
76.8The total amount for apportionment in respect to fire state aid must not be less than
76.9two percent of the premiums reported to the commissioner by insurers on the Minnesota
76.10Firetown Premium Report after subtracting the following amounts:
76.11(1) the amount required to pay the state auditor's costs and expenses of the audits or
76.12exams of the firefighters relief associations; and
76.13(2) one percent of the premiums reported by town and farmers' mutual insurance
76.14companies and mutual property and casualty companies with total assets of $5,000,000 or
76.15less.
76.16(b) The total amount for apportionment as police state aid is equal to 104 percent
76.17of the amount of premium taxes paid to the state on the premiums reported to the
76.18commissioner by insurers on the Minnesota Aid to Police Premium Report, reduced by
76.19the amount required to pay the costs and expenses of the state auditor for audits or exams
76.20of police relief associations. The total amount for apportionment in respect to the police
76.21state aid program must not be less than two percent of the amount of premiums reported
76.22to the commissioner by insurers on the Minnesota Aid to Police Premium Report after
76.23subtracting the amount required to pay the state auditor's cost and expenses of the audits
76.24or exams of the police relief associations.
76.25(c) The commissioner shall calculate the percentage of increase or decrease reflected
76.26in the apportionment over or under the previous year's available state aid using the same
76.27premiums as a basis for comparison.
76.28(d) In addition to the amount for apportionment of police state aid under paragraph
76.29(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
76.30pay this increase is annually appropriated from the general fund.
76.31 Sec. 14. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
76.32 Subd. 7.
Apportionment of fire state aid to municipalities and relief associations.
76.33(a) The commissioner shall apportion the fire state aid relative to the premiums reported
76.34on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
76.35and/or firefighters relief association
new text begin qualified under section 69.011, subdivision 4new text end .
77.1(b) The commissioner shall calculate an initial fire state aid allocation amount for each
77.2municipality or fire department under paragraph (c) and
new text begin , if applicable,new text end a minimum fire state
77.3aid allocation amount for each municipality or fire department under paragraph (d). The
77.4municipality or fire department must receive
new text begin be apportioned new text end the larger fire state aid amount.
77.5(c) The initial fire state aid allocation amount is the amount available for
77.6apportionment as fire state aid under subdivision 5, without
new text begin the new text end inclusion of any additional
77.7funding amount to support a minimum fire state aid amount under section
423A.02,
77.8subdivision 3
, allocated one-half in proportion to the population as shown in the last
77.9official statewide federal census for each fire town and one-half in proportion to the market
77.10value of each fire town, including (1) the market value of tax-exempt property and (2) the
77.11market value of natural resources lands receiving in lieu payments under sections
477A.11
77.12to
477A.14, but excluding the market value of minerals. In the case of incorporated or
77.13municipal fire departments furnishing fire protection to other cities, towns, or townships
77.14as evidenced by valid fire service contracts filed with the commissioner, the distribution
77.15must be adjusted proportionately to take into consideration the crossover fire protection
77.16service. Necessary adjustments must be made to subsequent apportionments. In the case
77.17of municipalities or independent fire departments qualifying for the aid, the commissioner
77.18shall calculate the state aid for the municipality or relief association on the basis of the
77.19population and the market value of the area furnished fire protection service by the fire
77.20department as evidenced by duly executed and valid fire service agreements filed with the
77.21commissioner. If one or more fire departments are furnishing contracted fire service to a
77.22city, town, or township, only the population and market value of the area served by each
77.23fire department may be considered in calculating the state aid and the fire departments
77.24furnishing service shall enter into an agreement apportioning among themselves the
77.25percent of the population and the
new text begin percent of the new text end market value of each
new text begin shared new text end service area.
77.26The agreement must be in writing and must be filed with the commissioner.
77.27(d) The minimum fire state aid allocation amount is the amount in addition to the
77.28initial fire state allocation amount that is derived from any additional funding amount
77.29to support a minimum fire state aid amount under section
423A.02, subdivision 3, and
77.30allocated to municipalities with volunteer firefighters relief associations or covered by the
77.31voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
77.32of active volunteer firefighters who are members of the relief association as reported
77.33in the annual financial reporting for the calendar year 1993 to the Office of the State
77.34Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
77.35fire departments with volunteer firefighters relief associations receive in total at least a
77.36minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
78.130 firefighters. If a relief association is established after calendar year 1993 and before
78.2calendar year 2000, the number of active volunteer firefighters who are members of the
78.3relief association as reported in the annual financial reporting for calendar year 1998
78.4to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
78.5shall be used in this determination. If a relief association is established after calendar
78.6year 1999, the number of active volunteer firefighters who are members of the relief
78.7association as reported in the first annual financial reporting submitted to the Office of
78.8the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
78.9determination. If a relief association is terminated as a result of providing retirement
78.10coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
78.11firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
78.12of the municipality covered by the statewide plan as certified by the executive director of
78.13the Public Employees Retirement Association to the commissioner and the state auditor,
78.14but not to exceed 30 active firefighters, must be used in this determination.
78.15(e) Unless the firefighters of the applicable fire department are members of the
78.16voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
78.17be paid to the treasurer of the municipality where the fire department is located and the
78.18treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
78.19the aid to the relief association if the relief association has filed a financial report with the
78.20treasurer of the municipality and has met all other statutory provisions pertaining to the
78.21aid apportionment. If the firefighters of the applicable fire department are members of
78.22the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
78.23must be paid to the executive director of the Public Employees Retirement Association
78.24and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
78.25(f) The commissioner may make rules to permit the administration of the provisions
78.26of this section.
78.27(g) Any adjustments needed to correct prior misallocations must be made to
78.28subsequent
new text begin fire state aid new text end apportionments.
78.29 Sec. 15. Minnesota Statutes 2012, section 69.021, subdivision 7a, is amended to read:
78.30 Subd. 7a.
Apportionment of police state aid. new text begin (a) new text end Subject to the reduction provided
78.31for under subdivision 10, the commissioner shall apportion the police state aid to each
78.32municipality and
new text begin ,new text end to the
new text begin each new text end county
new text begin , and to the Departments of Natural Resources and new text end
78.33
new text begin Public Safetynew text end in the following manner:
78.34(1) for all municipalities maintaining police departments, counties, the Department
78.35of Natural Resources, and the Department of Public Safety, the police state aid must be
79.1distributed in proportion to the relationship that the total number of peace officers, as
79.2determined under section
69.011, subdivision 1, clause
new text begin paragraph new text end (g), and subdivision 2,
79.3clause
new text begin paragraph new text end (b), employed by that employing unit for 12 calendar months and the
79.4proportional or fractional number who were employed less than 12 months bears to the total
79.5number of peace officers employed by all municipalities and
new text begin ,new text end counties
new text begin , the Departments of new text end
79.6
new text begin Natural Resources and Public Safety,new text end subject to any reduction under subdivision 10;
79.7(2) for each municipality which contracts with the county for police service, a
79.8proportionate amount of the state aid distributed to the county based on the full-time
79.9equivalent number of peace officers providing contract service to that municipality must
79.10be credited against the municipality's contract obligation; and
79.11(3) for each municipality which contracts with another municipality for police
79.12service, a proportionate amount of the state aid distributed to the municipality providing
79.13contract service based on the full-time equivalent number of peace officers providing
79.14contract service to that municipality on a full-time equivalent basis must be credited
79.15against the contract obligation of the municipality receiving contract service.
79.16
new text begin (b) Any necessary additional adjustments must be made to subsequent police state new text end
79.17
new text begin aid apportionments.new text end
79.18 Sec. 16. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
79.19 Subd. 8.
Population and market value. (a) In computations relating to fire state aid
79.20requiring the use of population figures, only official statewide federal census figures are
79.21to
new text begin may new text end be used. Increases or decreases in population disclosed by reason of any special
79.22census must not be taken into consideration.
79.23(b) In calculations relating to fire state aid requiring the use of market value property
79.24figures, only the latest available market value property figures may be used.
79.25 Sec. 17. Minnesota Statutes 2012, section 69.021, subdivision 9, is amended to read:
79.26 Subd. 9.
Appeal. new text begin (a) new text end In the event that a municipality, a county, a fire relief
79.27association, a police relief association,
new text begin the Department of Natural Resources, the new text end
79.28
new text begin Department of Public Safety, new text end or the voluntary statewide lump-sum volunteer firefighter
79.29retirement plan, feels itself to be aggrieved, it may request the commissioner to review
79.30and adjust the apportionment of funds within the county in the case of police state aid, or
79.31within the state in the case of fire state aid.
79.32
new text begin (b)new text end The decision of the commissioner is subject to appeal, review, and adjustment by
79.33the district court in the county in which the applicable municipality,
new text begin ornew text end fire department,
79.34 or police department is located
new text begin or by the Ramsey County District Court with respect to new text end
80.1
new text begin the Department of Natural Resources, the Department of Public Safety, or the voluntary new text end
80.2
new text begin statewide lump-sum volunteer firefighter retirement plannew text end .
80.3 Sec. 18. Minnesota Statutes 2012, section 69.021, subdivision 10, is amended to read:
80.4 Subd. 10.
Reduction in police state aid apportionment. (a) The commissioner of
80.5revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph
80.6(b), 6, and 7a, for eligible employer units by
new text begin the amount of new text end any excess police state aid.
80.7(b) "Excess police state aid" is:
80.8(1) for counties and for municipalities in which police retirement coverage is
80.9provided wholly by the public employees police and fire fund and all police officers are
80.10members of the plan governed by sections
353.63 to
353.657, the amount in excess of the
80.11employer's total prior calendar year obligation as defined in paragraph (c), as certified by
80.12the executive director of the Public Employees Retirement Association;
80.13(2) for municipalities in which police retirement coverage is provided in part by the
80.14public employees police and fire fund governed by sections
to
and in
80.15part by a local police consolidation account governed by chapter 353A, and established
80.16before March 2, 1999, for which the municipality declined merger under section
353.665,
80.17subdivision 1
, or established after March 1, 1999, the amount in excess of the employer's
80.18total prior calendar year obligation as defined in paragraph (c), plus the amount of the
80.19employer's total prior calendar year obligation under section
353A.09, subdivision 5,
80.20paragraphs (a) and (b), as certified by the executive director of the Public Employees
80.21Retirement Association;
80.22(3) for municipalities in which police retirement coverage is provided by the public
80.23employees police and fire plan governed by sections
to
, in which police
80.24retirement coverage was provided by a police consolidation account under chapter
80.25353A before July 1, 1999, and for which the municipality has an additional municipal
80.26contribution under section
353.665, subdivision 8, paragraph (b), the amount in excess of
80.27the employer's total prior calendar year obligation as defined in paragraph (c), plus the
80.28amount of any additional municipal contribution under section
353.665, subdivision 8,
80.29paragraph (b), until the year 2010, as certified by the executive director of the Public
80.30Employees Retirement Association;
80.31(4)
new text begin (2) new text end for municipalities in which police retirement coverage is provided in part by
80.32the public employees police and fire fund governed by sections
to
and in
80.33part by a local police relief association governed by sections
and
new text begin the cities new text end
80.34
new text begin of Fairmont and Minneapolisnew text end , the amount in excess of the employer's total prior calendar
80.35year obligation as defined in paragraph (c), as certified by the executive director of the
81.1public employees retirement association, plus the amount of the financial requirements of
81.2the relief association certified to the applicable municipality during the prior calendar year
81.3under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions
81.4deducted from the covered salary of the relief association during the prior calendar year
81.5under section
69.77, subdivision 3, as certified by the chief administrative officer of the
81.6applicable municipality
new text begin any additional municipal contribution under section 353.668, new text end
81.7
new text begin subdivision 6, or 353.669, subdivision 6new text end ;
81.8(5)
new text begin (3) new text end for the Metropolitan Airports Commission, the amount in excess of the
81.9commission's total prior calendar year obligation as defined in paragraph (c), as certified
81.10by the executive director of the Public Employees Retirement Association; and
81.11(6)
new text begin (4) new text end for the Department of Natural Resources and for the Department of Public
81.12Safety, the amount in excess of the employer's total prior calendar year obligation under
81.13section
352B.02, subdivision 1c, for plan members who are peace officers under section
81.1469.011, subdivision 1
, clause (g), as certified by the executive director of the Minnesota
81.15State Retirement System.
81.16(c) The employer's total prior calendar year obligation with respect to the public
81.17employees police and fire plan
new text begin under paragraph (b), clause (1), new text end is the total prior calendar
81.18year obligation under section
353.65, subdivision 3, for police officers as defined in
81.19section
353.64, subdivision 2, and the actual total prior calendar year obligation under
81.20section
353.65, subdivision 3, for firefighters, as defined in section
353.64, subdivision
81.213
, but not to exceed for those firefighters the applicable following amounts
new text begin employer new text end
81.22
new text begin calendar year amountnew text end :
81.23
Municipality
Maximum Amount
81.24
Albert Lea
$54,157.01
81.25
Anoka
10,399.31
81.26
Apple Valley
5,442.44
81.27
Austin
49,864.73
81.28
Bemidji
27,671.38
81.29
Brooklyn Center
6,605.92
81.30
Brooklyn Park
24,002.26
81.31
Burnsville
15,956.00
81.32
Cloquet
4,260.49
81.33
Coon Rapids
39,920.00
81.34
Cottage Grove
8,588.48
81.35
Crystal
5,855.00
81.36
East Grand Forks
51,009.88
81.37
Edina
32,251.00
81.38
Elk River
5,216.55
81.39
Ely
13,584.16
82.1
Eveleth
16,288.27
82.2
Fergus Falls
6,742.00
82.3
Fridley
33,420.64
82.4
Golden Valley
11,744.61
82.5
Hastings
16,561.00
82.6
Hopkins
4,324.23
82.7
International Falls
14,400.69
82.8
Lakeville
782.35
82.9
Lino Lakes
5,324.00
82.10
Little Falls
7,889.41
82.11
Maple Grove
6,707.54
82.12
Maplewood
8,476.69
82.13
Minnetonka
10,403.00
82.14
Montevideo
1,307.66
82.15
Moorhead
68,069.26
82.16
New Hope
6,739.72
82.17
North St. Paul
4,241.14
82.18
Northfield
770.63
82.19
Owatonna
37,292.67
82.20
Plymouth
6,754.71
82.21
Red Wing
3,504.01
82.22
Richfield
53,757.96
82.23
Rosemount
1,712.55
82.24
Roseville
9,854.51
82.25
St. Anthony
33,055.00
82.26
St. Louis Park
53,643.11
82.27
Thief River Falls
28,365.04
82.28
Virginia
31,164.46
82.29
Waseca
11,135.17
82.30
West St. Paul
15,707.20
82.31
White Bear Lake
6,521.04
82.32
Woodbury
3,613.00
82.33
any other municipality
0.00
82.34(d) The total amount of excess police state aid must be deposited in the excess
82.35police state-aid account in the general fund, administered and distributed as provided
82.36in subdivision 11.
82.37 Sec. 19. Minnesota Statutes 2012, section 69.021, subdivision 11, is amended to read:
82.38 Subd. 11.
Excess police state-aid holding account. (a) The excess police state-aid
82.39holding account is established in the general fund. The excess police state-aid holding
82.40account must be administered by the commissioner.
83.1 (b) Excess police state aid determined according to subdivision 10, must be
83.2deposited
new text begin annually new text end in the excess police state-aid holding account.
83.3 (c) From the balance in the excess police state-aid holding account, $900,000 must
83.4be canceled annually to the general fund.
83.5 (d) If a police officer stress reduction program is created by law and money is
83.6appropriated for that program, an amount equal to that appropriation must be transferred
83.7to the administrator of that program from the balance in the excess police state-aid holding
83.8account.
83.9 (e)
new text begin (d) new text end On October 1 of each year, one-half of the balance of the excess police
83.10state-aid holding account remaining after the deductions
new text begin deduction new text end under paragraphs
83.11
new text begin paragraph new text end (c) and (d) is appropriated for additional amortization aid under section
83.12423A.02, subdivision 1b
.
83.13 (f)
new text begin (e) new text end Annually, the remaining balance in the excess police state-aid holding account,
83.14after the deductions under paragraphs (c),
new text begin and new text end (d), and (e), cancels to the general fund.
83.15 Sec. 20. Minnesota Statutes 2012, section 69.031, subdivision 1, is amended to read:
83.16 Subdivision 1.
Commissioner's warrant. (a) The commissioner of management
83.17and budget shall issue to the Public Employees Retirement Association on behalf of
83.18a municipality or independent nonprofit firefighting corporation that is a member of the
83.19voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G
new text begin , new text end
83.20
new text begin to the Department of Natural Resources, the Department of Public Safety,new text end or to the
83.21county, municipality, or independent nonprofit firefighting corporation certified to the
83.22commissioner of management and budget by the commissioner a warrant for an amount
83.23equal to the amount of fire state aid or police state aid, whichever applies, certified for the
83.24applicable state aid recipient by the commissioner under section
69.021.
83.25(b)
new text begin Fire state aid and police state aid is payable on October 1 annually. new text end The amount
83.26of state aid due and not paid by October 1 accrues interest
new text begin payable to the state aid recipient new text end
83.27at the rate of one percent for each month or part of a month
new text begin that new text end the amount remains
83.28unpaid after October 1.
83.29 Sec. 21. Minnesota Statutes 2012, section 69.031, subdivision 3, is amended to read:
83.30 Subd. 3.
Appropriations. There is hereby appropriated annually from the state
83.31general fund to the commissioner of revenue an amount
new text begin amounts new text end sufficient to make the
83.32police
new text begin state aid payments new text end and
new text begin the new text end fire state aid payments specified in this section and
83.33section
69.021.
84.1 Sec. 22. Minnesota Statutes 2012, section 69.031, subdivision 5, is amended to read:
84.2 Subd. 5.
Deposit of state aid. (a) If the municipality or the independent nonprofit
84.3firefighting corporation is covered by the voluntary statewide lump-sum volunteer
84.4firefighter retirement plan under chapter 353G, the executive director shall credit the fire
84.5state aid against future municipal contribution requirements under section
353G.08 and
84.6shall notify the municipality or independent nonprofit firefighting corporation of the fire
84.7state aid so credited at least annually. If the municipality or the independent nonprofit
84.8firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.9firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt,
84.10transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief
84.11association if there is one organized and the association has filed a financial report with the
84.12municipality. If the relief association has not filed a financial report with the municipality,
84.13the municipal treasurer shall delay transmission of the fire state aid to the relief association
84.14until the complete financial report is filed. If the municipality or independent nonprofit
84.15firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.16firefighter retirement plan, if there is no relief association organized, or if the association
84.17has dissolved or has been removed as trustees of state aid, then the treasurer of the
84.18municipality shall deposit the money in the municipal treasury and the money may be
84.19disbursed only for the purposes and in the manner set forth in section
424A.08 or for the
84.20payment of the employer contribution requirement with respect to firefighters covered by
84.21the public employees police and fire retirement plan under section
353.65, subdivision 3.
84.22(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the
84.23police state aid in the following manner:
84.24(1) For a municipality in which a local police relief association exists and all peace
84.25officers are members of the association, the total state aid must be transmitted to the
84.26treasurer of the relief association within 30 days of the date of receipt, and the treasurer
84.27of the relief association shall immediately deposit the total state aid in the special fund
84.28of the relief association;
84.29(2)
new text begin (b) new text end For a municipality in which police retirement coverage is provided by the
84.30public employees police and fire fund and all peace officers are members of the fund,
84.31including municipalities covered by section
353.665, the total state aid must be applied
84.32toward the municipality's employer contribution to the public employees police and
84.33fire fund under sections
353.65, subdivision 3, and 353.665
new text begin 353.668new text end , subdivision 8
new text begin 6new text end ,
84.34paragraph (b)
new text begin or 353.669, subdivision 6new text end , if applicable; or
new text begin .new text end
84.35(3) For a municipality other than a city of the first class with a population of more
84.36than 300,000 in which both a police relief association exists and police retirement
85.1coverage is provided in part by the public employees police and fire fund, the municipality
85.2may elect at its option to transmit the total state aid to the treasurer of the relief association
85.3as provided in clause (1), to use the total state aid to apply toward the municipality's
85.4employer contribution to the public employees police and fire fund subject to all the
85.5provisions set forth in clause (2), or to allot the total state aid proportionately to be
85.6transmitted to the police relief association as provided in this subdivision and to apply
85.7toward the municipality's employer contribution to the public employees police and fire
85.8fund subject to the provisions of clause (2) on the basis of the respective number of active
85.9full-time peace officers, as defined in section
69.011, subdivision 1, clause (g).
85.10For a city of the first class with a population of more than 300,000, in addition, the
85.11city may elect to allot the appropriate portion of the total police state aid to apply toward
85.12the employer contribution of the city to the public employees police and fire fund based
85.13on the covered salary of police officers covered by the fund each payroll period and to
85.14transmit the balance to the police relief association; or
85.15(4) For a municipality in which police retirement coverage is provided in part by
85.16the public employees police and fire fund and in part by a local police consolidation
85.17account governed by chapter 353A and established before March 2, 1999, for which the
85.18municipality declined merger under section
353.665, subdivision 1, or established after
85.19March 1, 1999, the total police state aid must be applied towards the municipality's total
85.20employer contribution to the public employees police and fire fund and to the local police
85.21consolidation account under sections
353.65, subdivision 3, and
353A.09, subdivision 5.
85.22(c) The county treasurer, upon receipt of the police state aid for the county, shall
85.23apply the total state aid toward the county's employer contribution to the public employees
85.24police and fire fund under section
353.65, subdivision 3.
85.25(d) The designated Metropolitan Airports Commission official, upon receipt of the
85.26police state aid for the Metropolitan Airports Commission, shall apply the total police
85.27state aid toward the commission's employer contribution for police officers to the public
85.28employees police and fire plan under section
353.65, subdivision 3.
85.29(e) The police state aid apportioned to the Departments of Public Safety and Natural
85.30Resources under section
69.021, subdivision 7a, is appropriated to the commissioner of
85.31management and budget for transfer to the funds and accounts from which the salaries of
85.32peace officers certified under section
69.011, subdivision 2b, are paid. The commissioner
85.33of revenue shall certify to the commissioners of public safety, natural resources, and
85.34management and budget the amounts to be transferred from the appropriation for police
85.35state aid. The commissioners of public safety and natural resources shall certify to the
85.36commissioner of management and budget the amounts to be credited to each of the funds
86.1and accounts from which the peace officers employed by their respective departments are
86.2paid. Each commissioner shall allocate the police state aid first for employer contributions
86.3for employees funded from the general fund and then for employer contributions for
86.4employees funded from other funds. For peace officers whose salaries are paid from the
86.5general fund, the amounts transferred from the appropriation for police state aid must
86.6be canceled to the general fund.
86.7 Sec. 23. Minnesota Statutes 2012, section 69.041, is amended to read:
86.8
69.041 SHORTFALL FROM GENERAL FUND.
86.9(a) If the annual funding requirements of fire or police relief associations or
86.10consolidation accounts under sections 69.77,
69.771 to
69.775, or
353A.09,
new text begin or sections new text end
86.11
new text begin 31 to 42, new text end exceed all applicable revenue sources of a given year, including the insurance
86.12premium taxes funding the applicable fire or police state aid as set under section
297I.05,
86.13subdivisions 2, 3, and 4
, the shortfall in the annual funding requirements must be paid
86.14from the general fund to the extent appropriated by the legislature.
86.15(b) Nothing in this section may be deemed to relieve any municipality from its
86.16obligation to a relief association or consolidation account under law.
86.17 Sec. 24. Minnesota Statutes 2012, section 69.051, subdivision 1, is amended to read:
86.18 Subdivision 1.
Financial report and audit. (a) The board of each salaried
86.19firefighters
new text begin the Bloomington Fire Department new text end Relief Association, police relief association,
86.20 and
new text begin each new text end volunteer firefighters relief association as defined in section
424A.001,
86.21subdivision 4
, with assets of at least $200,000 or liabilities of at least $200,000 in the prior
86.22year or in any previous year, according to the applicable actuarial valuation or
new text begin according new text end
86.23
new text begin to the new text end financial report if no valuation is required, shall prepare a financial report covering
86.24the special and general funds of the relief association for the preceding fiscal year, file the
86.25financial report, and submit financial statements.
86.26(b) The financial report must contain financial statements and disclosures which
86.27present the true financial condition of the relief association and the results of relief
86.28association operations in conformity with generally accepted accounting principles and in
86.29compliance with the regulatory, financing and funding provisions of this chapter and any
86.30other applicable laws. The financial report must be countersigned by:
86.31(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
86.32association is located if the relief association is a firefighters relief association which is
86.33directly associated with a municipal fire department or is a police relief association; or
87.1(2) by the municipal clerk or clerk-treasurer of the largest municipality in population
87.2which contracts with the independent nonprofit firefighting corporation if the volunteer
87.3firefighter relief association is a subsidiary of an independent nonprofit firefighting
87.4corporation and by the secretary of the independent nonprofit firefighting corporation; or
87.5(3) by the chief financial official of the county in which the volunteer firefighter
87.6relief association is located or primarily located if the relief association is associated with
87.7a fire department that is not located in or associated with an organized municipality.
87.8(c) The financial report must be retained in its office for public inspection and must
87.9be filed with the governing body of the government subdivision in which the associated
87.10fire department is located after the close of the fiscal year. One copy of the financial report
87.11must be furnished to the state auditor after the close of the fiscal year.
87.12(d) Audited financial statements must be attested to by a certified public accountant
87.13or
new text begin by new text end the state auditor and must be filed with the state auditor within 180 days after the
87.14close of the fiscal year. The state auditor may accept this report in lieu of the report
87.15required in paragraph (c).
87.16 Sec. 25. Minnesota Statutes 2012, section 69.051, subdivision 1a, is amended to read:
87.17 Subd. 1a.
Financial statement. (a) The board of each volunteer firefighters relief
87.18association, as defined in section
424A.001, subdivision 4, that is not required to file a
87.19financial report and audit under subdivision 1 must prepare a detailed statement of the
87.20financial affairs for the preceding fiscal year of the relief association's special and general
87.21funds in the style and form prescribed by the state auditor. The detailed statement must
87.22show
new text begin :new text end
87.23
new text begin (1)new text end the sources and amounts of all money received;
87.24
new text begin (2)new text end all disbursements, accounts payable and accounts receivable;
87.25
new text begin (3)new text end the amount of money remaining in the treasury;
87.26
new text begin (4) new text end total assets
new text begin ,new text end including a listing of all investments;
87.27
new text begin (5)new text end the accrued liabilities; and
87.28
new text begin (6)new text end all
new text begin other new text end items necessary to show accurately the revenues and expenditures and
87.29financial position of the relief association.
87.30(b) The detailed financial statement required under paragraph (a) must be certified
87.31by an independent public accountant or auditor or by the auditor or accountant who
87.32regularly examines or audits the financial transactions of the municipality. In addition to
87.33certifying the financial condition of the special and general funds of the relief association,
87.34the accountant or auditor conducting the examination shall give an opinion as to the
87.35condition of the special and general funds of the relief association, and shall comment
88.1upon any exceptions to the report. The independent accountant or auditor must have at
88.2least five years of public accounting, auditing, or similar experience, and must not be an
88.3active, inactive, or retired member of the relief association or the fire or police department.
88.4(c) The detailed statement required under paragraph (a) must be countersigned by:
88.5(1) the municipal clerk or clerk-treasurer of the municipality; or
88.6(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
88.7municipality in population which contracts with the independent nonprofit firefighting
88.8corporation if the relief association is a subsidiary of an independent nonprofit firefighting
88.9corporation and by the secretary of the independent nonprofit firefighting corporation; or
88.10(3) by the chief financial official of the county in which the volunteer firefighter
88.11relief association is located or primarily located if the relief association is associated with
88.12a fire department that is not located in or associated with an organized municipality.
88.13(d) The volunteer firefighters' relief association board must file the detailed statement
88.14required under paragraph (a) in the relief association office for public inspection and
88.15present it to the city council
new text begin governing body of the municipality new text end within 45 days after the
88.16close of the fiscal year, and must submit a copy of the detailed statement to the state
88.17auditor within 90 days of the close of the fiscal year.
88.18 Sec. 26. Minnesota Statutes 2012, section 69.051, subdivision 1b, is amended to read:
88.19 Subd. 1b.
Qualification. The state auditor may, upon a demonstration by a relief
88.20association of hardship or
new text begin an new text end inability to conform, extend the deadline for reports under
88.21subdivisions 1 or 1a, but not beyond November 30th following the due date. If the
88.22reports are not received by November 30th, the municipality or relief association will
88.23forfeit
new text begin forfeits new text end its current year state aid, and
new text begin ,new text end until the state auditor receives the required
88.24information, the relief
new text begin association new text end or municipality will be
new text begin is new text end ineligible to receive any
88.25future state aid. A municipality or police or firefighters' relief association shall
new text begin does new text end not
88.26qualify initially to receive, or be entitled subsequently to retain, state aid pursuant to
new text begin under new text end
88.27this chapter if the financial reporting requirement or the applicable requirements of this
88.28chapter or any other statute or special law have not been complied with or are not fulfilled.
88.29 Sec. 27. Minnesota Statutes 2012, section 69.051, subdivision 2, is amended to read:
88.30 Subd. 2.
Treasurers bond. No
new text begin (a) The new text end treasurer of a
new text begin the Bloomington Fire new text end
88.31
new text begin Department new text end Relief Association governed by section 69.77 shall
new text begin may not new text end enter upon duties
88.32without having given the association a bond in a reasonable amount acceptable to the
88.33municipality for the faithful discharge of duties according to law.
89.1
new text begin (b)new text end No treasurer of a relief association governed by sections
69.771 to
69.776 shall
89.2
new text begin may new text end enter upon the duties of the office until the treasurer has given the association a good
89.3and sufficient bond in an amount equal to at least ten percent of the assets of the relief
89.4association; however, the amount of the bond need not exceed $500,000.
89.5 Sec. 28. Minnesota Statutes 2012, section 69.051, subdivision 3, is amended to read:
89.6 Subd. 3.
Report by certain municipalities. (a)
new text begin The chief administrative officer new text end
89.7
new text begin of new text end each municipality which has an organized fire department but which does not have a
89.8firefighters' relief association governed by section
69.77 or sections
69.771 to
69.775 and
89.9which is not exempted under paragraph (b) shall annually prepare a detailed financial
89.10report of the receipts and disbursements by the municipality for fire protection service
89.11during the preceding calendar year, on a form prescribed by the state auditor. The financial
89.12report must contain any information which the state auditor deems necessary to disclose
89.13the sources of receipts and the purpose of disbursements for fire protection service.
89.14The financial report must be signed by the municipal clerk or clerk-treasurer of the
89.15municipality. The financial report must be filed by the municipal clerk or clerk-treasurer
89.16with the state auditor on or before July 1 annually. The municipality shall
new text begin does new text end not qualify
89.17initially to receive, or be
new text begin and is not new text end entitled subsequently to retain, state aid under this
89.18chapter if the financial reporting requirement or the applicable requirements of this chapter
89.19or any other statute or special law have not been complied with or are not fulfilled.
89.20(b) Each municipality that has an organized fire department and provides retirement
89.21coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
89.22retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
89.23retained in the statewide lump-sum volunteer firefighter retirement fund without filing
89.24a detailed financial report if the executive director of the Public Employees Retirement
89.25Association certifies compliance by the municipality with the requirements of sections
89.26353G.04
and
353G.08, paragraph (e), and
new text begin certifies conformity new text end by the applicable fire chief
89.27with the requirements of section
353G.07.
89.28 Sec. 29. Minnesota Statutes 2012, section 69.051, subdivision 4, is amended to read:
89.29 Subd. 4.
Notification by commissioner and state auditor. (a) The state auditor
new text begin ,new text end
89.30 in performing an audit or examination
new text begin ,new text end shall notify the Legislative Commission on
89.31Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or
89.32nonfeasance in office
new text begin by relief association officials or municipal officialsnew text end .
90.1(b) The commissioner shall notify the Legislative Commission on Pensions and
90.2Retirement if the state auditor has not filed the required financial compliance reports
90.3by July 1.
90.4 Sec. 30. Minnesota Statutes 2012, section 69.33, is amended to read:
90.5
69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE
90.6
COMPANIES.
90.7
new text begin For purposes of the first class city fire insurance premium tax surcharge aid program new text end
90.8
new text begin under section 297I.10, new text end the commissioner shall enclose in the annual statement blank that is
90.9sent to all fire insurance companies doing business in this state a blank form containing
90.10the names of all cities of the first class and require these companies, at the time of making
90.11their annual statements to the commissioner, to state on these blanks the amount of
90.12premiums received by them upon properties insured within the corporate limits of the
90.13cities named thereon during the year ending December 31st last past. Thereafter, before
90.14July first each year, the commissioner shall certify to the commissioner of management
90.15and budget the information thus obtained, together with the amount of the tax for the
90.16benefit of the pension plans covering firefighters in cities of the first class paid in such
90.17year by these companies upon these insurance premiums.
90.18 Sec. 31. Minnesota Statutes 2012, section 69.77, subdivision 1, is amended to read:
90.19 Subdivision 1.
Conditioned employer support for a new text begin the Bloomington Fire new text end
90.20
new text begin Department new text end Relief Association. (a) Notwithstanding any law to the contrary, only
90.21if the municipality
new text begin city of Bloomington new text end and the
new text begin Bloomington Fire Department new text end Relief
90.22Association comply with the provisions of this section, a municipality
new text begin the city of new text end
90.23
new text begin Bloomington new text end may contribute public funds, including any applicable police or fire state
90.24aid, or levy property taxes for the support of a police or firefighters'
new text begin the Bloomington new text end
90.25
new text begin Fire Department new text end Relief Association, enumerated in subdivision 1a, however organized,
90.26which provides retirement coverage or pays a service pension to a retired police officer or
90.27firefighter or a retirement benefit to a surviving dependent of either an active or retired
90.28police officer or firefighter,
new text begin and new text end for the operation and maintenance of the relief association.
90.29(b) The commissioner shall not include in the apportionment of police or fire state
90.30aid to the county auditor under section
69.021, subdivision 6, any municipality in which
90.31there exists a local police or salaried firefighters' relief association as enumerated in
90.32subdivision 1a which
new text begin the city of Bloomington if the Bloomington Fire Department Relief new text end
90.33
new text begin Association new text end does not comply with the provisions of this section or the provisions of any
90.34applicable special law relating to the funding or financing of the association and that
91.1municipality
new text begin the city of Bloomington new text end may not qualify initially to receive, or be entitled
91.2subsequently to retain,
new text begin fire new text end state aid under sections
69.011 to
69.051 until the reason
91.3for the disqualification is remedied, whereupon the municipality
new text begin city of Bloomingtonnew text end ,
91.4if otherwise qualified, is entitled to again receive
new text begin fire new text end state aid for the year occurring
91.5immediately subsequent to the year in which the disqualification is remedied.
91.6(c) The state auditor and the commissioner shall determine if a municipality with a
91.7local police or salaried firefighters' relief association fails
new text begin the city of Bloomington and the new text end
91.8
new text begin Bloomington Fire Department Relief Association fail new text end to comply with the provisions of
91.9this section or the funding or financing provisions of any applicable special law.
91.10 Sec. 32. Minnesota Statutes 2012, section 69.77, subdivision 2, is amended to read:
91.11 Subd. 2.
Inapplicable penalty. The penalty provided for in subdivision 1 does not
91.12apply to a
new text begin the Bloomington Fire Department new text end Relief Association enumerated in subdivision
91.131a if the requirements of subdivisions 3 to 10 are met.
91.14 Sec. 33. Minnesota Statutes 2012, section 69.77, subdivision 4, is amended to read:
91.15 Subd. 4.
Relief association financial requirements; minimum municipal
91.16
obligation. (a) The officers of the
new text begin Bloomington Fire Department new text end Relief Association
91.17shall determine the financial requirements of the relief association and
new text begin the new text end minimum
91.18obligation of the municipality
new text begin city of Bloomington new text end for the following calendar year in
91.19accordance with the requirements of this subdivision. The financial requirements of the
91.20relief association and the minimum obligation of the municipality
new text begin city of Bloomington new text end
91.21must be determined on or before the submission date established by the municipality
91.22
new text begin city of Bloomington new text end under subdivision 5.
91.23(b) The financial requirements of the relief association for the following calendar
91.24year must be based on the most recent actuarial valuation or survey of the special fund of
91.25the association if more than one fund is maintained by the association, or of the association,
91.26if only one fund is maintained, prepared in accordance with sections
356.215, subdivisions
91.274 to 15, and
356.216, as required under subdivision 10. If an actuarial estimate is prepared
91.28by the actuary of the relief association as part of obtaining a modification of the benefit
91.29plan of the relief association and the modification is implemented, the actuarial estimate
91.30must be used in calculating the subsequent financial requirements of the relief association.
91.31(c) If the relief association has an unfunded actuarial accrued liability as reported in
91.32the most recent actuarial valuation or survey, the total of the amounts calculated under
91.33clauses (1), (2), and (3), constitute the financial requirements of the relief association for
91.34the following year. If the relief association does not have an unfunded actuarial accrued
92.1liability as reported in the most recent actuarial valuation or survey, the amount calculated
92.2under clauses (1) and (2) constitute the financial requirements of the relief association for
92.3the following year. The financial requirement elements are:
92.4(1) the normal level cost requirement for the following year, expressed as a dollar
92.5amount, which must be determined by applying the normal level cost of the relief
92.6association as reported in the actuarial valuation or survey and expressed as a percentage
92.7of covered payroll to the estimated covered payroll of the active membership of the relief
92.8association, including any projected change in the active membership, for the following
92.9year;
92.10(2) for the Bloomington Fire Department Relief Association, to the dollar amount
92.11of normal cost determined under clause (1) must be added an amount equal to the dollar
92.12amount of the administrative expenses of the special fund of the association if more
92.13than one fund is maintained by the association, or of the association if only one fund is
92.14maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
92.15expenses are those authorized under section
69.80; and
92.16(3) to the dollar amount of normal cost and expenses determined under clauses
92.17(1) and (2) must be added an amount equal to the level annual dollar amount which
92.18is sufficient to amortize the unfunded actuarial accrued liability as determined from
92.19the actuarial valuation or survey of the fund, using an interest assumption set at the
92.20applicable rate specified in section
356.215, subdivision 8, by that fund's amortization
92.21date as specified in paragraph (d).
92.22(d) The Bloomington Fire Department Relief Association special fund amortization
92.23date is determined under section
356.216, clause (2). The amortization date specified in
92.24this paragraph supersedes any amortization date specified in any applicable special law.
92.25
new text begin (d) If the actuarial value of the assets of the special fund of the relief association new text end
92.26
new text begin exceed the actuarial accrued liability as reported in the most recent actuarial valuation of the new text end
92.27
new text begin special fund of the relief association, the financial requirements of the relief association are new text end
92.28
new text begin the amounts calculated under paragraph (c), clauses (1) and (2), reduced by one-tenth of the new text end
92.29
new text begin amount by which the actuarial value of the assets of the special fund of the relief association new text end
92.30
new text begin exceeds the actuarial accrued liability of the special fund of the relief association.new text end
92.31(e) The minimum obligation of the municipality is an amount equal to the financial
92.32requirements of the relief association reduced by the estimated amount of member
92.33contributions from covered salary anticipated for the following calendar year and the
92.34estimated amounts
new text begin amount new text end anticipated for the following calendar year from the applicable
92.35
new text begin fire new text end state aid program established under sections
69.011 to
69.051 receivable by the relief
92.36association after any allocation made under section
69.031, subdivision 5, paragraph (b),
93.1clause (2), or
423A.01, subdivision 2, paragraph (a), clause (6), from the local police
93.2and salaried firefighters' relief association amortization aid program established under
93.3section
423A.02, subdivision 1, from the supplementary amortization state-aid program
93.4established under section
423A.02, subdivision 1a, and from the additional amortization
93.5state aid under section
423A.02, subdivision 1b.
93.6 Sec. 34. Minnesota Statutes 2012, section 69.77, subdivision 5, is amended to read:
93.7 Subd. 5.
Determination submission. The officers of the relief association shall
93.8submit the determination of the financial requirements of the relief association and of the
93.9minimum obligation of the municipality to the governing body
new text begin Bloomington City Council new text end
93.10on or before the date established by the municipality
new text begin city of Bloomingtonnew text end , which may
93.11not be earlier than August 1 and may not be later than September 1 of each year. The
93.12governing body of the municipality
new text begin Bloomington City Council new text end must ascertain whether or
93.13not the determinations were prepared in accordance with law.
93.14 Sec. 35. Minnesota Statutes 2012, section 69.77, subdivision 6, is amended to read:
93.15 Subd. 6.
Municipal payment. (a) The municipality
new text begin city of Bloomington new text end shall
93.16provide for and shall pay, each year, at least the amount of the minimum obligation of the
93.17municipality
new text begin city of Bloomington new text end to the
new text begin Bloomington Fire Department new text end Relief Association.
93.18(b) If there is any deficiency in the municipal payment to meet the minimum
93.19obligation of the municipality
new text begin city of Bloomington new text end as of the end of any calendar year, the
93.20amount of the deficiency must be added to the minimum obligation of the municipality
new text begin city new text end
93.21
new text begin of Bloomington new text end for the following year calculated under subdivision 4 and must include
93.22interest at the compound rate of six percent per annum from the date that the municipality
93.23
new text begin city of Bloomington new text end was required to make payment under this subdivision until the date
93.24that the municipality
new text begin city of Bloomington new text end actually makes the required payment.
93.25 Sec. 36. Minnesota Statutes 2012, section 69.77, subdivision 7, is amended to read:
93.26 Subd. 7.
Budget inclusion. (a) The municipality
new text begin city of Bloomington new text end shall provide
93.27in the annual municipal budget for at least the minimum obligation of the municipality
93.28calculated under subdivision 4.
93.29(b) The municipality
new text begin city of Bloomington new text end may levy taxes for the payment of the
93.30minimum obligation of the municipality
new text begin city of Bloomington new text end without any limitation as to
93.31rate or amount and irrespective of limitations imposed by other provisions of law upon the
93.32rate or amount of taxation when the balance of the special fund or any fund of the relief
93.33association has attained a specified minimum asset level. In addition, any taxes levied
94.1under this section may not cause the amount or rate of other taxes levied in that year or to
94.2be levied in a subsequent year by the municipality
new text begin city of Bloomington new text end which are subject
94.3to a limitation as to rate or amount to be reduced.
94.4(c) If the municipality
new text begin city of Bloomington new text end does not include the full amount of
94.5the minimum obligation of the municipality
new text begin city of Bloomington new text end in the levy that the
94.6municipality
new text begin city of Bloomington new text end certified to the
new text begin Hennepin new text end County auditor in any year, the
94.7officers of the relief association shall certify the amount of any deficiency to the
new text begin Hennepin new text end
94.8County auditor. Upon verifying the existence of any deficiency in the levy certified by
94.9the municipality
new text begin city of Bloomingtonnew text end , the
new text begin Hennepin new text end County auditor shall spread a levy
94.10over the taxable property of the municipality
new text begin city of Bloomington new text end in the amount of the
94.11deficiency certified to by the officers of the relief association.
94.12 Sec. 37. Minnesota Statutes 2012, section 69.77, subdivision 8, is amended to read:
94.13 Subd. 8.
Accelerated amortization. Any sums of money paid by the municipality
94.14
new text begin city of Bloomington new text end to the relief association in excess of the minimum obligation of the
94.15municipality
new text begin city of Bloomington new text end in any year must be used to amortize any unfunded
94.16actuarial accrued liabilities of the
new text begin Bloomington Fire Department new text end Relief Association.
94.17 Sec. 38. Minnesota Statutes 2012, section 69.77, subdivision 9, is amended to read:
94.18 Subd. 9.
Local paid fire relief association investment authority. (a) The special
94.19fund
new text begin funds new text end of the association must be invested in securities that are authorized investments
94.20under section
356A.06, subdivision 6 or 7, whichever applies.
94.21(b) The governing board of the
new text begin Bloomington Fire Department Relief new text end Association
94.22may select and appoint a qualified private firm to measure management performance and
94.23return on investment, and the firm must use the formula or formulas developed by the
94.24State Board
new text begin of Investment new text end under section
11A.04, clause (11).
new text begin The governing board of the new text end
94.25
new text begin Bloomington Fire Department Relief Association may certify general fund assets of the new text end
94.26
new text begin relief association for investment by the State Board of Investment in fixed income pools new text end
94.27
new text begin or in a separately managed account at the discretion of the State Board of Investment new text end
94.28
new text begin as provided in section new text end
new text begin .new text end
94.29(c) The governing board of the association may certify general fund assets of the
94.30relief association for investment by the State Board of Investment in fixed income pools
94.31or in a separately managed account at the discretion of the State Board of Investment
94.32as provided in section
.
94.33 Sec. 39. Minnesota Statutes 2012, section 69.77, subdivision 10, is amended to read:
95.1 Subd. 10.
Actuarial valuation required. The
new text begin governing board of the Bloomington new text end
95.2
new text begin Fire Department Relief new text end Association shall obtain an actuarial valuation showing the
95.3condition of the special fund of the relief association under sections
356.215 and
356.216
95.4and any
new text begin the new text end applicable standards for actuarial work established by the Legislative
95.5Commission on Pensions and Retirement. The actuarial valuation must be made as of
95.6December 31 of every year. A copy of the actuarial valuation must be filed with the
95.7Director of the Legislative Reference Library, the governing body of the municipality in
95.8which the association is organized
new text begin Bloomington City Councilnew text end , the executive director of
95.9the Legislative Commission on Pensions and Retirement, and the state auditor, not later
95.10than July 1 of the following year.
95.11 Sec. 40. Minnesota Statutes 2012, section 69.77, subdivision 11, is amended to read:
95.12 Subd. 11.
Municipal approval of benefit changes required. Any amendment to
95.13the bylaws or articles of incorporation of a
new text begin the Bloomington Fire Department new text end Relief
95.14Association which increases or otherwise affects the retirement coverage provided by or
95.15the service pensions or retirement benefits payable from any police or firefighters'
new text begin the new text end
95.16relief association enumerated in subdivision 1a is not effective until it is ratified by the
95.17municipality in which the relief association is located
new text begin city of Bloomingtonnew text end . The officers
95.18of the relief association shall not seek municipal ratification before obtaining either an
95.19updated actuarial valuation including the proposed amendment or an estimate of the
95.20expected actuarial impact of the proposed amendment prepared by the actuary of the relief
95.21association and submitting that actuarial valuation or estimate to the
new text begin Bloomington city new text end
95.22clerk of the municipality.
95.23 Sec. 41. Minnesota Statutes 2012, section 69.77, subdivision 12, is amended to read:
95.24 Subd. 12.
Application of other laws to contribution rate. In the absence of any
95.25specific provision to the contrary, no general or special law previously enacted may be
95.26construed as reducing the levy amount or rate of contribution to a police or firefighters
new text begin the new text end
95.27
new text begin Bloomington Fire Department new text end Relief Association to which subdivision 1a applies, by a
95.28municipality or member of the association
new text begin the city of Bloomingtonnew text end , which is required as a
95.29condition for the use of public funds or the levy of taxes for the support of the association.
95.30Each
new text begin The Bloomington Fire Department Relief new text end Association, the municipality in which
95.31it is organized
new text begin city of Bloomingtonnew text end , and the officers of each, are authorized to do all
95.32things required by this section as a condition for the use of public funds or the levy of
95.33taxes for the support of the association.
96.1 Sec. 42. Minnesota Statutes 2012, section 69.77, subdivision 13, is amended to read:
96.2 Subd. 13.
Citation. This section may be cited as the "Police and Firefighters'
96.3
new text begin Bloomington Fire Department new text end Relief Associations
new text begin Association new text end Guidelines Act of 1969."
96.4 Sec. 43. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
96.5 Subdivision 1.
Covered relief associations. The applicable provisions of sections
96.669.771
to
69.776 apply to any firefighters' relief association other than a
new text begin the Bloomington new text end
96.7
new text begin Fire Department new text end Relief Association enumerated in section
69.77, subdivision 1a, which
96.8is organized under any laws of this state, which is composed of volunteer firefighters or
96.9is composed partially of volunteer firefighters and partially of salaried firefighters with
96.10retirement coverage provided by the public employees police and fire fund and which, in
96.11either case, operates subject to the service pension minimum requirements for entitlement
96.12and maximums contained in section
424A.02, or subject to a special law modifying those
96.13requirements or maximums.
96.14 Sec. 44. Minnesota Statutes 2012, section 69.80, is amended to read:
96.15
69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
96.16(a) Notwithstanding any provision of law to the contrary, the payment of the
96.17following necessary, reasonable and direct expenses of maintaining, protecting and
96.18administering the special fund, when provided for in the bylaws of the association and
96.19approved by the board of trustees, constitutes authorized administrative expenses of a
96.20police, salaried firefighters', or volunteer firefighters' relief association organized under
96.21any law of this state
new text begin or the Bloomington Fire Department Relief Associationnew text end :
96.22(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
96.23postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
96.24personnel;
96.25(2) salaries of the officers of the association, or their designees, and salaries of the
96.26members of the board of trustees of the association if the salary amounts are approved by
96.27the governing body of the entity that is responsible for meeting any minimum obligation
96.28under section
,
69.772, or
69.773,
new text begin or sections 31 to 42, new text end and the itemized expenses
96.29of relief association officers and board members that are incurred as a result of fulfilling
96.30their responsibilities as administrators of the special fund;
96.31(3) tuition, registration fees, organizational dues, and other authorized expenses
96.32of the officers or members of the board of trustees incurred in attending educational
96.33conferences, seminars, or classes relating to the administration of the relief association;
97.1(4) audit, actuarial, medical, legal, and investment and performance evaluation
97.2expenses;
97.3(5) filing and application fees payable by the relief association to federal or other
97.4governmental entities;
97.5(6) reimbursement to the officers and members of the board of trustees, or their
97.6designees, for reasonable and necessary expenses actually paid and incurred in the
97.7performance of their duties as officers or members of the board; and
97.8(7) premiums on fiduciary liability insurance and official bonds for the officers,
97.9members of the board of trustees, and employees of the relief association.
97.10(b) Any other expenses of the relief association must be paid from the general fund
97.11of the association, if one exists. If a relief association has only one fund, that fund is the
97.12special fund for purposes of this section. If a relief association has a special fund and
97.13a general fund, and any expense of the relief association that is directly related to the
97.14purposes for which both funds were established, the payment of that expense must be
97.15apportioned between the two funds on the basis of the benefits derived by each fund.
97.16 Sec. 45. Minnesota Statutes 2012, section 275.70, subdivision 5, is amended to read:
97.17 Subd. 5.
Special levies. "Special levies" means those portions of ad valorem taxes
97.18levied by a local governmental unit for the following purposes or in the following manner:
97.19 (1) to pay the costs of the principal and interest on bonded indebtedness or to
97.20reimburse for the amount of liquor store revenues used to pay the principal and interest
97.21due on municipal liquor store bonds in the year preceding the year for which the levy
97.22limit is calculated;
97.23 (2) to pay the costs of principal and interest on certificates of indebtedness issued for
97.24any corporate purpose except for the following:
97.25 (i) tax anticipation or aid anticipation certificates of indebtedness;
97.26 (ii) certificates of indebtedness issued under sections
298.28 and
298.282;
97.27 (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
97.28extraordinary expenditures that result from a public emergency; or
97.29 (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
97.30insufficiency in other revenue sources, provided that nothing in this subdivision limits the
97.31special levy authorized under section
475.755;
97.32 (3) to provide for the bonded indebtedness portion of payments made to another
97.33political subdivision of the state of Minnesota;
98.1 (4) to fund payments made to the Minnesota State Armory Building Commission
98.2under section
193.145, subdivision 2, to retire the principal and interest on armory
98.3construction bonds;
98.4 (5) property taxes approved by voters which are levied against the referendum
98.5market value as provided under section
275.61;
98.6 (6) to fund matching requirements needed to qualify for federal or state grants or
98.7programs to the extent that either (i) the matching requirement exceeds the matching
98.8requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
98.9exist prior to 2002;
98.10 (7) to pay the expenses reasonably and necessarily incurred in preparing for or
98.11repairing the effects of natural disaster including the occurrence or threat of widespread
98.12or severe damage, injury, or loss of life or property resulting from natural causes, in
98.13accordance with standards formulated by the Emergency Services Division of the state
98.14Department of Public Safety, as allowed by the commissioner of revenue under section
98.15275.74, subdivision 2
;
98.16 (8) pay amounts required to correct an error in the levy certified to the county
98.17auditor by a city or county in a levy year, but only to the extent that when added to the
98.18preceding year's levy it is not in excess of an applicable statutory, special law or charter
98.19limitation, or the limitation imposed on the governmental subdivision by sections
275.70
98.20to
275.74 in the preceding levy year;
98.21 (9) to pay an abatement under section
469.1815;
98.22 (10) to pay any costs attributable to increases in the employer contribution rates under
98.23chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
98.24 (11) to pay the operating or maintenance costs of a county jail as authorized in section
98.25641.01
or
641.262, or of a correctional facility as defined in section
241.021, subdivision 1,
98.26paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
98.27that the amount has been included in the county budget as a direct result of a rule, minimum
98.28requirement, minimum standard, or directive of the Department of Corrections, or to pay
98.29the operating or maintenance costs of a regional jail as authorized in section
641.262. For
98.30purposes of this clause, a district court order is not a rule, minimum requirement, minimum
98.31standard, or directive of the Department of Corrections. If the county utilizes this special
98.32levy, except to pay operating or maintenance costs of a new regional jail facility under
98.33sections
641.262 to
641.264 which will not replace an existing jail facility, any amount
98.34levied by the county in the previous levy year for the purposes specified under this clause
98.35and included in the county's previous year's levy limitation computed under section
98.36275.71
, shall be deducted from the levy limit base under section
275.71, subdivision 2,
99.1when determining the county's current year levy limitation. The county shall provide the
99.2necessary information to the commissioner of revenue for making this determination;
99.3 (12) to pay for operation of a lake improvement district, as authorized under section
99.4103B.555
. If the county utilizes this special levy, any amount levied by the county in the
99.5previous levy year for the purposes specified under this clause and included in the county's
99.6previous year's levy limitation computed under section
275.71 shall be deducted from
99.7the levy limit base under section
275.71, subdivision 2, when determining the county's
99.8current year levy limitation. The county shall provide the necessary information to the
99.9commissioner of revenue for making this determination;
99.10 (13) to repay a state or federal loan used to fund the direct or indirect required
99.11spending by the local government due to a state or federal transportation project or other
99.12state or federal capital project. This authority may only be used if the project is not a
99.13local government initiative;
99.14 (14) to pay for court administration costs as required under section
273.1398,
99.15subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
99.16district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
99.17paid to the county in 2004 under section
273.1398, subdivision 4c; however, for taxes
99.18levied to pay for these costs in the year in which the court financing is transferred to the
99.19state, the amount under this clause is limited to the amount of aid the county is certified to
99.20receive under section
273.1398, subdivision 4a;
99.21 (15) to fund a police or firefighters relief association as required under section
99.2269.77
new text begin sections 31 to 42 new text end to the extent that the required amount exceeds the amount levied
99.23for this purpose in 2001;
99.24 (16) for purposes of a storm sewer improvement district under section
444.20;
99.25 (17) to pay for the maintenance and support of a city or county society for the
99.26prevention of cruelty to animals under section
343.11, but not to exceed in any year
99.27$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
99.28recent federal census, whichever is greater. If the city or county uses this special levy, any
99.29amount levied by the city or county in the previous levy year for the purposes specified
99.30in this clause and included in the city's or county's previous year's levy limit computed
99.31under section
275.71, must be deducted from the levy limit base under section
275.71,
99.32subdivision 2
, in determining the city's or county's current year levy limit;
99.33 (18) for counties, to pay for the increase in their share of health and human service
99.34costs caused by reductions in federal health and human services grants effective after
99.35September 30, 2007;
100.1 (19) for a city, for the costs reasonably and necessarily incurred for securing,
100.2maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
100.3the commissioner of revenue under section
275.74, subdivision 2. A city must have either
100.4(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
100.5the city or in a zip code area of the city that is at least 50 percent higher than the average
100.6foreclosure rate in the metropolitan area, as defined in section
473.121, subdivision 2,
100.7to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
100.8number of foreclosures, as indicated by sheriff sales records, divided by the number of
100.9households in the city in 2007;
100.10 (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
100.11lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
100.12to the Federal Highway Administration;
100.13 (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
100.14personnel. If a local governmental unit did not use this special levy in the previous year its
100.15levy limit base under section
275.71 shall be reduced by the amount equal to the amount it
100.16levied for the purposes specified in this clause in the previous year;
100.17 (22) an amount equal to any reductions in the certified aids or credit reimbursements
100.18payable under sections
477A.011 to
477A.014, and section
273.1384, due to unallotment
100.19under section
16A.152 or reductions under another provision of law. The amount of the
100.20levy allowed under this clause for each year is limited to the amount unallotted or reduced
100.21from the aids and credit reimbursements certified for payment in the year following the
100.22calendar year in which the tax levy is certified unless the unallotment or reduction amount
100.23is not known by September 1 of the levy certification year, and the local government has
100.24not adjusted its levy under section
275.065, subdivision 6, or
275.07, subdivision 6, in
100.25which case that unallotment or reduction amount may be levied in the following year;
100.26(23) to pay for the difference between one-half of the costs of confining sex offenders
100.27undergoing the civil commitment process and any state payments for this purpose pursuant
100.28to section
253B.185, subdivision 5;
100.29(24) for a county to pay the costs of the first year of maintaining and operating a new
100.30facility or new expansion, either of which contains courts, corrections, dispatch, criminal
100.31investigation labs, or other public safety facilities and for which all or a portion of the
100.32funding for the site acquisition, building design, site preparation, construction, and related
100.33equipment was issued or authorized prior to the imposition of levy limits in 2008. The
100.34levy limit base shall then be increased by an amount equal to the new facility's first full
100.35year's operating costs as described in this clause; and
101.1(25) for the estimated amount of reduction to market value credit reimbursements
101.2under section
273.1384 for credits payable in the year in which the levy is payable.
101.3 Sec. 46. Minnesota Statutes 2012, section 297I.10, subdivision 1, is amended to read:
101.4 Subdivision 1.
Cities of the first class. (a) The commissioner shall order and direct
101.5a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
101.6premiums, less return premiums, on all direct business received by any licensed foreign or
101.7domestic fire insurance company on property in a city of the first class, or by its agents for
101.8it, in cash or otherwise.
101.9(b) By July 31 and December 31 of each year
new text begin ,new text end the commissioner of management
101.10and budget shall pay to the relief association in each city
new text begin of the first class new text end a warrant for
101.11an amount equal to the total amount of the surcharge on the premiums collected within
101.12the
new text begin that new text end city since the previous payment.
101.13(c) The treasurer of the relief association
new text begin city new text end shall place the money received under
101.14this subdivision in the
new text begin a new text end special
new text begin account or new text end fund of the relief association
new text begin to defray all or a new text end
101.15
new text begin a portion of the employer contribution requirement of public employees police and fire new text end
101.16
new text begin plan coverage for city firefightersnew text end .
101.17 Sec. 47. Minnesota Statutes 2012, section 345.381, is amended to read:
101.18
345.381 PROPERTY HELD BY MINNESOTA PUBLIC PENSION FUND.
101.19No amounts of money held or owing by a public pension fund enumerated in section
101.20356.20, subdivision 2
, or
356.30, subdivision 3, or governed by sections 69.77 or
69.771 to
101.2169.776
shall
new text begin or sections 31 to 42 may new text end be presumed to have been abandoned for purposes of
101.22sections
345.41,
345.42,
345.43,
345.47 and
345.48 if the plan governing the public pension
101.23fund includes a provision governing the disposition of unclaimed amounts of money.
101.24 Sec. 48. Minnesota Statutes 2012, section 353.01, subdivision 2a, is amended to read:
101.25 Subd. 2a.
Included employees; mandatory membership. (a) Public employees
101.26whose salary exceeds $425 in any month and who are not specifically excluded under
101.27subdivision 2b or who have not been provided an option to participate under subdivision
101.282d, whether individually or by action of the governmental subdivision, must participate as
101.29members of the association with retirement coverage by the general employees retirement
101.30plan under this chapter, the public employees police and fire retirement plan under this
101.31chapter, or the local government correctional employees retirement plan under chapter
101.32353E, whichever applies. Membership commences as a condition of their employment on
102.1the first day of their employment or on the first day that the eligibility criteria are met,
102.2whichever is later. Public employees include but are not limited to:
102.3(1) persons whose salary meets the threshold in this paragraph from employment in
102.4one or more positions within one governmental subdivision;
102.5(2) elected county sheriffs;
102.6(3) persons who are appointed, employed, or contracted to perform governmental
102.7functions that by law or local ordinance are required of a public officer, including, but
102.8not limited to:
102.9(i) town and city clerk or treasurer;
102.10(ii) county auditor, treasurer, or recorder;
102.11(iii) city manager as defined in section
353.028 who does not exercise the option
102.12provided under subdivision 2d; or
102.13(iv) emergency management director, as provided under section
12.25;
102.14(4) physicians under section
353D.01, subdivision 2, who do not elect public
102.15employees defined contribution plan coverage under section
353D.02, subdivision 2;
102.16(5) full-time employees of the Dakota County Agricultural Society;
102.17(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
102.18Police Relief Association who are not excluded employees under subdivision 2b due
102.19to coverage by the relief association pension plan and who elected general employee
102.20retirement plan coverage before August 20, 2009;
102.21(7)
new text begin (6) new text end employees of the Red Wing Port Authority who were first employed by the
102.22Red Wing Port Authority before May 1, 2011, and who are not excluded employees
102.23under subdivision 2b; and
102.24(8)
new text begin (7) new text end employees of the Seaway Port Authority of Duluth who are not excluded
102.25employees under subdivision 2b.
102.26 (b) A public employee or elected official who was a member of the association on
102.27June 30, 2002, based on employment that qualified for membership coverage by the public
102.28employees retirement plan or the public employees police and fire plan under this chapter,
102.29or the local government correctional employees retirement plan under chapter 353E as of
102.30June 30, 2002, retains that membership for the duration of the person's employment in that
102.31position or incumbency in elected office. Except as provided in subdivision 28, the person
102.32shall participate as a member until the employee or elected official terminates public
102.33employment under subdivision 11a or terminates membership under subdivision 11b.
102.34(c) If the salary of an included public employee is less than $425 in any subsequent
102.35month, the member retains membership eligibility.
103.1(d) For the purpose of participation in the MERF division of the general employees
103.2retirement plan, public employees include employees who were members of the former
103.3Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
103.4members of the MERF division of the association.
103.5 Sec. 49. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
103.6 Subd. 2b.
Excluded employees. (a) The following public employees are not eligible
103.7to participate as members of the association with retirement coverage by the general
103.8employees retirement plan, the local government correctional employees retirement plan
103.9under chapter 353E, or the public employees police and fire retirement plan:
103.10 (1) persons whose salary from one governmental subdivision never exceeds $425 in
103.11a month;
103.12(2) public officers who are elected to a governing body, city mayors, or persons who
103.13are appointed to fill a vacancy in an elective office of a governing body, whose term of office
103.14commences on or after July 1, 2002, for the service to be rendered in that elective position;
103.15 (3) election officers or election judges;
103.16 (4) patient and inmate personnel who perform services for a governmental
103.17subdivision;
103.18 (5) except as otherwise specified in subdivision 12a, employees who are hired for
103.19a temporary position as defined under subdivision 12a, and employees who resign from
103.20a nontemporary position and accept a temporary position within 30 days in the same
103.21governmental subdivision;
103.22 (6) employees who are employed by reason of work emergency caused by fire,
103.23flood, storm, or similar disaster;
103.24 (7) employees who by virtue of their employment in one governmental subdivision
103.25are required by law to be a member of and to contribute to any of the plans or funds
103.26administered by the Minnesota State Retirement System, the Teachers Retirement
103.27Association, the Duluth Teachers Retirement Fund Association,
new text begin and new text end the St. Paul Teachers
103.28Retirement Fund Association, or any police or firefighters relief association governed by
103.29section
that has not consolidated with the Public Employees Retirement Association,
103.30or any local police or firefighters consolidation account who have not elected the type of
103.31benefit coverage provided by the public employees police and fire fund under sections
103.32 to
, or any persons covered by section
353.665, subdivision 4, 5, or 6,
103.33who have not elected public employees police and fire plan benefit coverage. This clause
103.34must not be construed to prevent a person from being a member of and contributing to
103.35the Public Employees Retirement Association and also belonging to and contributing to
104.1another public pension plan or fund for other service occurring during the same period
104.2of time. A person who meets the definition of "public employee" in subdivision 2 by
104.3virtue of other service occurring during the same period of time becomes a member of the
104.4association unless contributions are made to another public retirement fund on the salary
104.5based on the other service or to the Teachers Retirement Association by a teacher as
104.6defined in section
354.05, subdivision 2;
104.7 (8) persons who are members of a religious order and are excluded from coverage
104.8under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
104.9performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
104.10as amended through January 1, 1987, if no irrevocable election of coverage has been made
104.11under section 3121(r) of the Internal Revenue Code of 1954, as amended;
104.12 (9) employees of a governmental subdivision who have not reached the age of
104.1323 and are enrolled on a full-time basis to attend or are attending classes on a full-time
104.14basis at an accredited school, college, or university in an undergraduate, graduate, or
104.15professional-technical program, or a public or charter high school;
104.16 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
104.17interns who are serving in a degree or residency program in public hospitals or clinics;
104.18 (11) students who are serving in an internship or residency program sponsored
104.19by an accredited educational institution;
104.20 (12) persons who hold a part-time adult supplementary technical college license who
104.21render part-time teaching service in a technical college;
104.22 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
104.23foreign citizens who are employed by a governmental subdivision under a work permit, or
104.24an H-1b visa initially issued or extended for a combined period less than three years of
104.25employment. Upon extension of the employment beyond the three-year period, the foreign
104.26citizens must be reported for membership beginning the first of the month thereafter
104.27provided the monthly earnings threshold as provided under subdivision 2a is met;
104.28 (14) public hospital employees who elected not to participate as members of the
104.29association before 1972 and who did not elect to participate from July 1, 1988, to October
104.301, 1988;
104.31 (15) except as provided in section
353.86, volunteer ambulance service personnel, as
104.32defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
104.33may still qualify as public employees under subdivision 2 and may be members of the
104.34Public Employees Retirement Association and participants in the general employees
104.35retirement plan or the public employees police and fire plan, whichever applies, on the
105.1basis of compensation received from public employment service other than service as
105.2volunteer ambulance service personnel;
105.3 (16) except as provided in section
353.87, volunteer firefighters, as defined in
105.4subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
105.5but a person who is a volunteer firefighter may still qualify as a public employee under
105.6subdivision 2 and may be a member of the Public Employees Retirement Association and
105.7a participant in the general employees retirement plan or the public employees police
105.8and fire plan, whichever applies, on the basis of compensation received from public
105.9employment activities other than those as a volunteer firefighter;
105.10 (17) pipefitters and associated trades personnel employed by Independent School
105.11District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
105.12pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
105.13if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
105.14241, article 2, section 12;
105.15 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
105.16are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
105.17who have retirement coverage under a collective bargaining agreement by the Electrical
105.18Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
105.19or the pension plan applicable to Carpenters Local 87 who were either first employed after
105.20May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
105.21Laws 2000, chapter 461, article 7, section 5;
105.22 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
105.23painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
105.24or Independent School District No. 625, St. Paul, with coverage under a collective
105.25bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
105.26the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
105.27pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
105.28Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
105.29first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
105.30Session chapter 10, article 10, section 6;
105.31 (20) plumbers who are employed by the Metropolitan Airports Commission, with
105.32coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
105.33who either were first employed after May 1, 2001, or if first employed before May 2,
105.342001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
105.3510, section 6;
106.1 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
106.2subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
106.3days or less in each year of employment with the governmental subdivision;
106.4 (22) persons who are provided supported employment or work-study positions
106.5by a governmental subdivision and who participate in an employment or industries
106.6program maintained for the benefit of these persons where the governmental subdivision
106.7limits the position's duration to three years or less, including persons participating in a
106.8federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
106.9unemployment relief program where the training or work experience is not provided as a
106.10part of, or for, future permanent public employment;
106.11 (23) independent contractors and the employees of independent contractors;
106.12 (24) reemployed annuitants of the association during the course of that
106.13reemployment; and
106.14(25) persons appointed to serve on a board or commission of a governmental
106.15subdivision or an instrumentality thereof.
106.16(b) Any person performing the duties of a public officer in a position defined in
106.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
106.18employee of an independent contractor.
106.19 Sec. 50. Minnesota Statutes 2012, section 353.01, subdivision 6, is amended to read:
106.20 Subd. 6.
Governmental subdivision. (a) "Governmental subdivision" means a
106.21county, city, town, school district within this state, or a department, unit or instrumentality
106.22of state or local government, or any public body established under state or local
106.23authority that has a governmental purpose, is under public control, is responsible for the
106.24employment and payment of the salaries of employees of the entity, and receives a major
106.25portion of its revenues from taxation, fees, assessments or from other public sources.
106.26 (b) Governmental subdivision also means the Public Employees Retirement
106.27Association, the League of Minnesota Cities, the Association of Metropolitan
106.28Municipalities, charter schools formed under section
124D.10, service cooperatives
106.29exercising retirement plan participation under section
123A.21, subdivision 5, joint powers
106.30boards organized under section
471.59, subdivision 11, paragraph (a), family service
106.31collaboratives and children's mental health collaboratives organized under section
471.59,
106.32subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
106.33are governmental units that otherwise qualify for retirement plan membership, public
106.34hospitals owned or operated by, or an integral part of, a governmental subdivision or
106.35governmental subdivisions, the Association of Minnesota Counties, the Minnesota
107.1Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
107.2Airports Commission, the University of Minnesota with respect to police officers covered
107.3by the public employees police and fire retirement plan, the Minneapolis Employees
107.4Retirement Fund for employment initially commenced after June 30, 1979, the Range
107.5Association of Municipalities and Schools, soil and water conservation districts, economic
107.6development authorities created or operating under sections
469.090 to
469.108, the Port
107.7Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red Wing
107.8Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake Johanna
107.9Volunteer Fire Department, incorporated, the Red Wing Environmental Learning Center,
107.10the Dakota County Agricultural Society,
new text begin and new text end Hennepin Healthcare System, Inc., and the
107.11Minneapolis Firefighters Relief Association and Minneapolis Police Relief Association
107.12with respect to staff covered by the Public Employees Retirement Association general plan.
107.13 (c) Governmental subdivision does not mean any municipal housing and
107.14redevelopment authority organized under the provisions of sections
469.001 to
469.047;
107.15or any port authority organized under sections
469.048 to
469.089 other than the Port
107.16Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than
107.17the Red Wing Port Authority; or any hospital district organized or reorganized prior to
107.18July 1, 1975, under sections
447.31 to
447.37 or the successor of the district; or the board
107.19of a family service collaborative or children's mental health collaborative organized
107.20under sections
124D.23,
245.491 to
245.495, or
471.59, if that board is not controlled
107.21by representatives of governmental units.
107.22 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
107.23Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
107.24governmental subdivision unless the entity has obtained a written advisory opinion from
107.25the United States Department of Labor or a ruling from the Internal Revenue Service
107.26declaring the entity to be an instrumentality of the state so as to provide that any future
107.27contributions by the entity on behalf of its employees are contributions to a governmental
107.28plan within the meaning of Internal Revenue Code, section 414(d).
107.29 (e) A public body created by state or local authority may request membership on
107.30behalf of its employees by providing sufficient evidence that it meets the requirements in
107.31paragraph (a).
107.32 (f) An entity determined to be a governmental subdivision is subject to the reporting
107.33requirements of this chapter upon receipt of a written notice of eligibility from the
107.34association.
107.35 Sec. 51. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
108.1 Subd. 10.
Salary. (a) Subject to the limitations of section
356.611, "salary" means:
108.2 (1) the periodic compensation of a public employee, before deductions for deferred
108.3compensation, supplemental retirement plans, or other voluntary salary reduction
108.4programs, and also means "wages" and includes net income from fees;
new text begin andnew text end
108.5 (2) for a public employee who is covered by a supplemental retirement plan under
108.6section
356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions
108.7be made by the employer, the contribution to the applicable supplemental retirement plan
108.8when an agreement between the parties establishes that the contribution will either result
108.9in a mandatory reduction of employees' wages through payroll withholdings, or be made
108.10in lieu of an amount that would otherwise be paid as wages; and
new text begin .new text end
108.11 (3) for a public employee who has prior service covered by a local police or
108.12firefighters relief association that has consolidated with the Public Employees Retirement
108.13Association or to which section
applies and who has elected coverage either
108.14under the public employees police and fire fund benefit plan under section
353A.08
108.15following the consolidation or under section
353.665, subdivision 4, the rate of salary
108.16upon which member contributions to the special fund of the relief association were made
108.17prior to the effective date of the consolidation as specified by law and by bylaw provisions
108.18governing the relief association on the date of the initiation of the consolidation procedure
108.19and the actual periodic compensation of the public employee after the effective date of
108.20consolidation.
108.21 (b) Salary does not mean:
108.22 (1) the fees paid to district court reporters, unused annual vacation or sick leave
108.23payments, in lump-sum or periodic payments, severance payments, reimbursement of
108.24expenses, lump-sum settlements not attached to a specific earnings period, or workers'
108.25compensation payments;
108.26 (2) employer-paid amounts used by an employee toward the cost of insurance
108.27coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
108.28care expense accounts, day care expenses, or any payments in lieu of any employer-paid
108.29group insurance coverage, including the difference between single and family rates that
108.30may be paid to a member with single coverage and certain amounts determined by the
108.31executive director to be ineligible;
108.32 (3) the amount equal to that which the employing governmental subdivision would
108.33otherwise pay toward single or family insurance coverage for a covered employee when,
108.34through a contract or agreement with some but not all employees, the employer:
108.35 (i) discontinues, or for new hires does not provide, payment toward the cost of the
108.36employee's selected insurance coverages under a group plan offered by the employer;
109.1 (ii) makes the employee solely responsible for all contributions toward the cost of
109.2the employee's selected insurance coverages under a group plan offered by the employer,
109.3including any amount the employer makes toward other employees' selected insurance
109.4coverages under a group plan offered by the employer; and
109.5 (iii) provides increased salary rates for employees who do not have any
109.6employer-paid group insurance coverages;
109.7 (4) except as provided in section
353.86 or
353.87, compensation of any kind paid to
109.8volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
109.935 or 36;
109.10 (5) the amount of compensation that exceeds the limitation provided in section
109.11356.611
; and
109.12 (6) amounts paid by a federal or state grant for which the grant specifically
109.13prohibits grant proceeds from being used to make pension plan contributions, unless the
109.14contributions to the plan are made from sources other than the federal or state grant.
109.15 (c) Amounts provided to an employee by the employer through a grievance
109.16proceeding or a legal settlement are salary only if the settlement is reviewed by the
109.17executive director and the amounts are determined by the executive director to be
109.18consistent with paragraph (a) and prior determinations.
109.19 Sec. 52. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
109.20 Subd. 16.
Allowable service; limits and computation. (a) "Allowable service"
109.21means:
109.22 (1) service during years of actual membership in the course of which employee
109.23deductions were withheld from salary and contributions were made at the applicable rates
109.24under section
353.27,
353.65, or
353E.03;
109.25(2) periods of service covered by payments in lieu of salary deductions under
109.26sections
353.27, subdivision 12, and
353.35;
109.27 (3) service in years during which the public employee was not a member but for
109.28which the member later elected, while a member, to obtain credit by making payments to
109.29the fund as permitted by any law then in effect;
109.30 (4) a period of authorized leave of absence with pay from which deductions for
109.31employee contributions are made, deposited, and credited to the fund;
109.32 (5) a period of authorized personal, parental, or medical leave of absence without
109.33pay, including a leave of absence covered under the federal Family Medical Leave Act,
109.34that does not exceed one year, and for which a member obtained service credit for each
109.35month in the leave period by payment under section
353.0161 to the fund made in place of
110.1salary deductions. An employee must return to public service and render a minimum of
110.2three months of allowable service in order to be eligible to make payment under section
110.3353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
110.4employee must be granted allowable service credit for the purchased period;
110.5 (6) a periodic, repetitive leave that is offered to all employees of a governmental
110.6subdivision. The leave program may not exceed 208 hours per annual normal work cycle
110.7as certified to the association by the employer. A participating member obtains service
110.8credit by making employee contributions in an amount or amounts based on the member's
110.9average salary, excluding overtime pay, that would have been paid if the leave had not been
110.10taken. The employer shall pay the employer and additional employer contributions on
110.11behalf of the participating member. The employee and the employer are responsible to pay
110.12interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
110.13from the end of the normal cycle until full payment is made. An employer shall also make
110.14the employer and additional employer contributions, plus 8.5 percent interest, compounded
110.15annually, on behalf of an employee who makes employee contributions but terminates
110.16public service. The employee contributions must be made within one year after the end of
110.17the annual normal working cycle or within 30 days after termination of public service,
110.18whichever is sooner. The executive director shall prescribe the manner and forms to be
110.19used by a governmental subdivision in administering a periodic, repetitive leave. Upon
110.20payment, the member must be granted allowable service credit for the purchased period;
110.21 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
110.22months allowable service per authorized temporary or seasonal layoff in one calendar year.
110.23An employee who has received the maximum service credit allowed for an authorized
110.24temporary or seasonal layoff must return to public service and must obtain a minimum of
110.25three months of allowable service subsequent to the layoff in order to receive allowable
110.26service for a subsequent authorized temporary or seasonal layoff;
110.27 (8) a period during which a member is absent from employment by a governmental
110.28subdivision by reason of service in the uniformed services, as defined in United States
110.29Code, title 38, section 4303(13), if the member returns to public service with the same
110.30governmental subdivision upon discharge from service in the uniformed service within the
110.31time frames required under United States Code, title 38, section 4312(e), provided that
110.32the member did not separate from uniformed service with a dishonorable or bad conduct
110.33discharge or under other than honorable conditions. The service must be credited if the
110.34member pays into the fund equivalent employee contributions based upon the contribution
110.35rate or rates in effect at the time that the uniformed service was performed multiplied by
110.36the full and fractional years being purchased and applied to the annual salary rate. The
111.1annual salary rate is the average annual salary, excluding overtime pay, during the purchase
111.2period that the member would have received if the member had continued to be employed
111.3in covered employment rather than to provide uniformed service, or, if the determination
111.4of that rate is not reasonably certain, the annual salary rate is the member's average salary
111.5rate, excluding overtime pay, during the 12-month period of covered employment rendered
111.6immediately preceding the period of the uniformed service. Payment of the member
111.7equivalent contributions must be made during a period that begins with the date on which
111.8the individual returns to public employment and that is three times the length of the
111.9military leave period, or within five years of the date of discharge from the military service,
111.10whichever is less. If the determined payment period is less than one year, the contributions
111.11required under this clause to receive service credit may be made within one year of the
111.12discharge date. Payment may not be accepted following 30 days after termination of
111.13public service under subdivision 11a. If the member equivalent contributions provided for
111.14in this clause are not paid in full, the member's allowable service credit must be prorated
111.15by multiplying the full and fractional number of years of uniformed service eligible for
111.16purchase by the ratio obtained by dividing the total member contributions received by the
111.17total member contributions otherwise required under this clause. The equivalent employer
111.18contribution, and, if applicable, the equivalent additional employer contribution must be
111.19paid by the governmental subdivision employing the member if the member makes the
111.20equivalent employee contributions. The employer payments must be made from funds
111.21available to the employing unit, using the employer and additional employer contribution
111.22rate or rates in effect at the time that the uniformed service was performed, applied to the
111.23same annual salary rate or rates used to compute the equivalent member contribution. The
111.24governmental subdivision involved may appropriate money for those payments. The
111.25amount of service credit obtainable under this section may not exceed five years unless a
111.26longer purchase period is required under United States Code, title 38, section 4312. The
111.27employing unit shall pay interest on all equivalent member and employer contribution
111.28amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
111.29compounded annually from the end of each fiscal year of the leave or the break in service
111.30to the end of the month in which the payment is received. Upon payment, the employee
111.31must be granted allowable service credit for the purchased period; or
111.32(9) a period specified under section
353.0162.
111.33 (b) For calculating benefits under sections
353.30,
353.31,
353.32, and
353.33 for
111.34state officers and employees displaced by the Community Corrections Act, chapter 401,
111.35and transferred into county service under section
401.04, "allowable service" means the
112.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
112.2section
352.01, subdivision 11.
112.3 (c) For a public employee who has prior service covered by a local police or
112.4firefighters relief association that has consolidated with the Public Employees Retirement
112.5Association under chapter 353A or to which section
applies, and who has
112.6elected the type of benefit coverage provided by the public employees police and fire
112.7fund either under section
following the consolidation or under section
353.665,
112.8subdivision 4
, "allowable service" is a period of service credited by the local police or
112.9firefighters relief association as of the effective date of the consolidation based on law
112.10and on bylaw provisions governing the relief association on the date of the initiation
112.11of the consolidation procedure.
112.12 (d)
new text begin (c) new text end No member may receive more than 12 months of allowable service credit in a
112.13year either for vesting purposes or for benefit calculation purposes. For an active member
112.14who was an active member of the former Minneapolis Firefighters Relief Association
112.15on December 29, 2011, "allowable service" is the period of service credited by the
112.16Minneapolis Firefighters Relief Association as reflected in the transferred records of the
112.17association up to December 30, 2011, and the period of service credited under paragraph
112.18(a), clause (1), after December 30, 2011. For an active member who was an active member
112.19of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
112.20service" is the period of service credited by the Minneapolis Police Relief Association as
112.21reflected in the transferred records of the association up to December 30, 2011, and the
112.22period of service credited under paragraph (a), clause (1), after December 30, 2011.
112.23 (e)
new text begin (d) new text end MS 2002 [Expired]
112.24 Sec. 53. Minnesota Statutes 2012, section 353.64, subdivision 1a, is amended to read:
112.25 Subd. 1a.
Police and fire plan; other members. (a) A person who prior to July
112.261, 1961, was a member of the police and fire plan, by virtue of being a police officer or
112.27firefighter, shall, as long as the person remains in either position, continue membership in
112.28the plan.
112.29(b) A person who was employed by a governmental subdivision as a police officer
112.30and was a member of the police and fire plan on July 1, 1978, by virtue of being a police
112.31officer as defined by this section on that date, and if employed by the same governmental
112.32subdivision in a position in the same department in which the person was employed on
112.33that date, continues to be a member of the plan, whether or not that person has the power
112.34of arrest by warrant and is licensed by the Peace Officers Standards and Training Board
112.35after that date.
113.1(c)
new text begin (b) new text end A person who was employed as a correctional officer by Rice county before
113.2July 1, 1998, for the duration of employment in the correctional position held on July 1,
113.31998, continues to be a member of the public employees police and fire plan, whether or
113.4not the person has the power of arrest by warrant and is licensed by the Peace Officers
113.5Standards and Training Board after that date.
113.6(d) A person who was employed by a governmental subdivision as a police officer
113.7or a firefighter, whichever applies, was an active member of the local police or salaried
113.8firefighters relief association located in that governmental subdivision by virtue of that
113.9employment as of the effective date of the consolidation as authorized by sections
113.10 to
, and has elected coverage by the public employees police and fire
113.11plan, shall become a member of the police and fire plan after that date if employed by
113.12the same governmental subdivision in a position in the same department in which the
113.13person was employed on that date.
113.14(e) Any police officer or firefighter of a relief association that has consolidated
113.15with the association for which the employee has not elected coverage by the public
113.16employees police and fire plan as provided in sections
to
, or any police
113.17officer or firefighter to whom section
applies who has not elected coverage by
113.18the public employees police and fire plan as provided in section
353.665, subdivision 4,
113.19must become a member of the public employees police and fire plan, but is not subject
113.20to the provisions of sections
to
unless an election for such coverage is
113.21made under section
353.665, subdivision 4.
113.22 Sec. 54. Minnesota Statutes 2012, section 353.659, is amended to read:
113.23
353.659 LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT
113.24
BENEFITS.
113.25
new text begin (a) new text end For any person who has
new text begin had new text end prior service covered by a local police or firefighters
113.26relief association which has consolidated
new text begin merged new text end with the public employees
new text begin police and new text end
113.27
new text begin fire new text end retirement association
new text begin plan new text end and who has elected the type of benefit coverage provided
113.28by the public employees police and fire fund benefit plan under section
following
113.29the consolidation
new text begin as permitted by the applicable lawnew text end , any
new text begin the new text end retirement benefits payable
113.30are governed by the applicable provisions of this chapter.
113.31
new text begin (b)new text end For any person who has
new text begin had new text end prior service covered by a local police or firefighters
113.32relief association which has consolidated
new text begin merged new text end with the public employees
new text begin police and fire new text end
113.33retirement association
new text begin plan new text end and who has
new text begin did new text end not elected
new text begin elect new text end the type of benefit coverage
113.34provided by the public employees police and fire fund benefit plan under section
353A.08
113.35 following the consolidation
new text begin as permitted by the applicable lawnew text end , any
new text begin the new text end retirement benefits
114.1payable are governed by the provisions of
new text begin Minnesota Statutes 2012, new text end sections
353B.01 to
114.2353B.13
which apply
new text begin applied new text end to the
new text begin applicable former new text end relief association
new text begin or by section new text end
114.3
new text begin 353.6511 or 353.6512, if applicablenew text end .
114.4 Sec. 55. Minnesota Statutes 2012, section 353.665, subdivision 1, is amended to read:
114.5 Subdivision 1.
Merger authorizednew text begin Applicationnew text end . (a) Notwithstanding any
114.6provision of law to the contrary, unless the applicable municipality elects otherwise under
114.7paragraph (b), every
new text begin This section applies to the new text end local police and fire
new text begin relief associations or new text end
114.8consolidation account under chapter 353A in existence on March 1, 1999, becomes a part
114.9of
new text begin accounts that merged with new text end the public employees police and fire plan and fund governed
114.10by sections
to
on July 1, 1999
new text begin and are specified in paragraph (b)new text end .
114.11(b) If a municipality desires to retain its consolidation account
new text begin The former local new text end
114.12
new text begin police or fire relief associations new text end or consolidation accounts, whichever applies, the
114.13governing body of the municipality must adopt a resolution to that effect and must file a
114.14copy of the resolution with the secretary of state, the state auditor, the legislative auditor,
114.15the management and budget commissioner, the revenue commissioner, the executive
114.16director of the public employees retirement association, and the executive director of
114.17the Legislative Commission on Pensions and Retirement. The retention election must
114.18apply to both consolidation accounts if the municipality is associated with more than
114.19one consolidation account. The retention resolution must be adopted and filed with all
114.20recipients before June 15, 1999.
new text begin are:new text end
114.21
new text begin (1) the former local police and fire consolidation accounts that merged with the public new text end
114.22
new text begin employees police and fire retirement plan and fund under Laws 1999, chapter 222, article 4;new text end
114.23
new text begin (2) the former Minneapolis Firefighters Relief Association;new text end
114.24
new text begin (3) the former Minneapolis Police Relief Association;new text end
114.25
new text begin (4) the former Fairmont Police Relief Association; andnew text end
114.26
new text begin (5) the former Virginia Fire Consolidation Account.new text end
114.27 Sec. 56. Minnesota Statutes 2012, section 353.665, subdivision 5, is amended to read:
114.28 Subd. 5.
Benefit coverage for retirees and benefit recipientsnew text begin certain former local new text end
114.29
new text begin relief association or consolidation account membersnew text end . (a) A person who received a
114.30
new text begin Except as provided in paragraph (b), (e), or (f), the annuity, new text end service pension, a disability
114.31pension or benefit, or a survivor benefit from a merging
new text begin attributable to or of a former new text end
114.32
new text begin member of a former merged new text end local police or fire consolidation account for the month of June
114.331999, and who has
new text begin did new text end not previously elected participation in the Minnesota postretirement
114.34investment fund for any future postretirement adjustments rather than the postretirement
115.1adjustment mechanism or mechanisms of the relief association benefit plan under
115.2section
353A.08, subdivision 1, may elect participation in the Minnesota postretirement
115.3investment fund for any future postretirement adjustments or retention of the
115.4postretirement adjustment mechanism or mechanisms of the relief association benefit plan
115.5as reflected in the applicable provisions of chapter 353B. This election must be in writing
115.6on a form prescribed by the executive director and must be made before September 1,
115.71999.
new text begin elect coverage by all or a portion of the public employees police and fire retirement new text end
115.8
new text begin plan as permitted by applicable law must be calculated or computed under the benefit plan new text end
115.9
new text begin provisions of the applicable former local police or paid firefighters relief association.new text end
115.10(b) If an eligible person is a minor, the election must be made by the person's
115.11parent or legal guardian. If the eligible person makes no affirmative election under this
115.12subdivision, the person retains the postretirement adjustment mechanism or mechanisms
115.13of the relief association benefit plan as reflected in the applicable provisions of chapter
115.14353B.
new text begin The annuity, service pension, disability pension or benefit, or survivor benefit new text end
115.15
new text begin attributable to or of a former member of the former Minneapolis Firefighters Relief new text end
115.16
new text begin Association or of the former Minneapolis Police Relief Association who had that status as new text end
115.17
new text begin of December 29, 2011, continue after consolidation in the same amount and under the new text end
115.18
new text begin same terms as provided in chapter 423B or 423C, respectively, and the bylaws in effect as new text end
115.19
new text begin of that date, except that the unit value is governed by section 353.01, subdivisions 10a and new text end
115.20
new text begin 10b, respectively, and the postretirement adjustments after December 31, 2015, must be new text end
115.21
new text begin calculated solely under section 353.6511, subdivision 7.new text end
115.22
new text begin (c) On behalf of former members of the Minneapolis Firefighters Relief Association new text end
115.23
new text begin or Minneapolis Police Relief Association, the executive director shall withhold any health new text end
115.24
new text begin insurance or dental insurance premiums designated by the annuitant or benefit recipient new text end
115.25
new text begin and shall transfer them to the city of Minneapolis. The Public Employees Retirement new text end
115.26
new text begin Association may charge a necessary and reasonable monthly administrative fee to the city new text end
115.27
new text begin of Minneapolis for this function and bill it in addition to the employer contribution under new text end
115.28
new text begin section 353.65, subdivision 3, paragraph (b). Notwithstanding any provision of chapter new text end
115.29
new text begin 13 to the contrary, the executive director shall provide the city of Minneapolis with the new text end
115.30
new text begin current addresses of former members of the Minneapolis Firefighters Relief Association new text end
115.31
new text begin and the Minneapolis Police Relief Association. The city of Minneapolis shall continue to new text end
115.32
new text begin administer the health and dental insurance programs as constituted May 1, 2011, for the new text end
115.33
new text begin former members of the former Minneapolis relief associations.new text end
115.34
new text begin (d) The executive director shall cooperate with the Minneapolis firefighters new text end
115.35
new text begin fraternal association and the Minneapolis police fraternal association to ensure adequate new text end
115.36
new text begin communications with the former members of the former Minneapolis Firefighters new text end
116.1
new text begin Relief Association or the Minneapolis Police Relief Association consistent with Public new text end
116.2
new text begin Employees Retirement Association policy.new text end
116.3(c) The survivor benefit payable on behalf of any service pension or disability
116.4benefit recipient who elects participation in the Minnesota postretirement investment fund
116.5must be calculated under the relief association benefit plan in effect on the effective date
116.6of consolidation under chapter 353A as reflected in the applicable provisions of chapter
116.7353B.
new text begin (e) The annuity, service pension, disability pension or benefit, or survivor benefit new text end
116.8
new text begin attributable to or of a former member of the former Fairmont Police Relief Association new text end
116.9
new text begin must be calculated or computed under Minnesota Statutes 2000, sections 423.41 to new text end
116.10
new text begin 423.46, 423.48 to 423.59, 423.61, and 423.62; Laws 1963, chapter 423; Laws 1977, new text end
116.11
new text begin chapter 100; and Laws 1999, chapter 222, article 3, section 4, except that the annual new text end
116.12
new text begin base salary figure for pension and benefit determinations upon consolidation and for new text end
116.13
new text begin the balance of calendar year 2012 is $106,666.67 and after December 31, 2012, annual new text end
116.14
new text begin postretirement adjustments of pensions and benefits in force must be calculated solely new text end
116.15
new text begin under section 356.415, subdivision 1c.new text end
116.16
new text begin (f) The annuity, service pension, disability pension or benefit, or survivor benefit new text end
116.17
new text begin attributable to or of a former member of the former Virginia firefighters consolidation new text end
116.18
new text begin account must be calculated or computed under the election made under Minnesota new text end
116.19
new text begin Statutes 2012, section 353A.08, unless the person made a subsequent election under new text end
116.20
new text begin Minnesota Statutes 2012, section 353.6691, subdivision 4, subject to any additional ad hoc new text end
116.21
new text begin postretirement adjustment under Minnesota Statutes 2012, section 353.6691, subdivision new text end
116.22
new text begin 5, paragraph (d).new text end
116.23 Sec. 57. Minnesota Statutes 2012, section 353.665, is amended by adding a subdivision
116.24to read:
116.25
new text begin Subd. 5a.new text end new text begin Continuing provisions; prior Minneapolis relief associations.new text end
116.26
new text begin (a) Health insurance account retention. The health insurance account of the former new text end
116.27
new text begin Minneapolis Firefighters Relief Association and the health insurance account of the new text end
116.28
new text begin former Minneapolis Police Relief Association shall remain with the financial institution new text end
116.29
new text begin holding the applicable account on the effective date of this section, if the applicable new text end
116.30
new text begin financial institution adequately performs all trustee and fiduciary duties with respect to the new text end
116.31
new text begin applicable account as a condition of the retention of the account.new text end
116.32
new text begin (b) Health insurance account administrative expenses. Under Laws 2011, First new text end
116.33
new text begin Special Session chapter 8, article 6, section 14, and article 7, section 14, three years of new text end
116.34
new text begin expected administrative expenses were prepaid from the Minneapolis Firefighters Relief new text end
116.35
new text begin Association and the Minneapolis Police Relief Association health insurance accounts to new text end
117.1
new text begin the financial institution holding the applicable account. After the three-year prepayment new text end
117.2
new text begin period, the beneficiaries of the applicable account are responsible for the payment of new text end
117.3
new text begin administrative expenses related to the operation of the account.new text end
117.4
new text begin (c) Successor in interest. The public employees police and fire retirement plan new text end
117.5
new text begin and fund is the successor in interest to all claims for or against the former Minneapolis new text end
117.6
new text begin Firefighters Relief Association and the former Minneapolis Police Relief Association. The new text end
117.7
new text begin public employees police and fire retirement plan and fund is not liable for any claim against new text end
117.8
new text begin a former Minneapolis relief association, its governing board, or its administrative staff new text end
117.9
new text begin acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon new text end
117.10
new text begin a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were new text end
117.11
new text begin not undertaken in good faith. The public employees police and fire retirement plan may new text end
117.12
new text begin assert any applicable defense to any claim in any judicial or administrative proceeding that new text end
117.13
new text begin the applicable Minneapolis relief association, its board, or its administrative staff would new text end
117.14
new text begin otherwise have been entitled to assert, and the public employees police and fire retirement new text end
117.15
new text begin plan may assert any applicable defense that it has in its capacity as a statewide agency.new text end
117.16
new text begin (d) Indemnification. The Public Employees Retirement Association shall indemnify new text end
117.17
new text begin any former fiduciary of the Minneapolis relief associations consistent with the provisions new text end
117.18
new text begin of section 356A.11. The indemnification may be effected by the purchase by the Public new text end
117.19
new text begin Employees Retirement Association of reasonable fiduciary liability tail insurance for the new text end
117.20
new text begin officers and directors of the former Minneapolis relief association.new text end
117.21 Sec. 58. Minnesota Statutes 2012, section 353.665, subdivision 8, is amended to read:
117.22 Subd. 8.
Member and employer contributions. (a) Effective on the first day of the
117.23first full pay period following June 30, 1999,
new text begin Except as provided in paragraph (b), (c), new text end
117.24
new text begin or (d), new text end the employee contribution rate for merging
new text begin merged new text end former consolidation account
117.25active members is the rate specified in section
353.65, subdivision 2, and the regular
117.26municipal contribution rate on behalf of
new text begin merged new text end former consolidation account active
117.27members is the rate specified in section
353.65, subdivision 3.
117.28(b) The municipality associated with a merging former local consolidation account
117.29that had a positive value amortizable base calculation under subdivision 7, paragraph (d),
117.30after the preliminary calculation or the second calculation, whichever applies, must make
117.31an additional municipal contribution to the public employees police and fire plan for
117.32the period from January 1, 2000, to December 31, 2009. The amount of the additional
117.33municipal contribution is the amount calculated by the actuary retained under section
117.34 and certified by the executive director of the Public Employees Retirement
117.35Association by which the amortizable base amount would be amortized on a level dollar
118.1annual end-of-the-year contribution basis, using an 8.5 percent interest rate assumption.
118.2The additional municipal contribution is payable during the month of January, is without
118.3any interest, or if made after January 31, but before the next following December 31,
118.4is payable with interest for the period since January 1 at a rate which is equal to the
118.5preretirement interest rate assumption specified in section
356.215, subdivision 8,
118.6applicable to the public employees police and fire fund expressed as a monthly rate and
118.7compounded on a monthly basis or if made after December 31 of the year in which the
118.8additional municipal contribution is due is payable with interest at a rate which is four
118.9percent greater than the highest interest rate assumption specified in section
356.215,
118.10subdivision 8
, expressed as a monthly rate and compounded monthly from January 1 of the
118.11year in which the additional municipal contribution is due until the date on which payment
118.12is made.
new text begin With respect to active members of the merged former Minneapolis Firefighters new text end
118.13
new text begin Relief Association and the merged former Minneapolis Police Relief Association, there are new text end
118.14
new text begin no employee contributions payable and the employer contribution on behalf of those active new text end
118.15
new text begin members is at the rate specified in section 353.65, subdivision 3, applied to the active new text end
118.16
new text begin member's salary. In addition, an additional municipal contribution is payable by the city of new text end
118.17
new text begin Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as new text end
118.18
new text begin sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded new text end
118.19
new text begin present value figure calculated as required by Minnesota Statutes 2012, section 353.667, new text end
118.20
new text begin subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision new text end
118.21
new text begin 6, paragraph (a). If the postretirement or preretirement interest rate actuarial assumption new text end
118.22
new text begin applicable to the public employees police and fire retirement plan under section 356.215, new text end
118.23
new text begin subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section new text end
118.24
new text begin 356.215, subdivision 8, the remainder present value of future benefits amount calculation new text end
118.25
new text begin under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes new text end
118.26
new text begin 2012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must new text end
118.27
new text begin be revised and the amortization contribution by the city of Minneapolis for the balance new text end
118.28
new text begin of the amortization period must be redetermined by the actuary retained under section new text end
118.29
new text begin 356.214 and certified by the executive director to the city of Minneapolis.new text end
118.30
new text begin (c) If there are assets of the former Fairmont Police Relief Association in excess of new text end
118.31
new text begin the present value of future benefits as of June 29, 2012, these assets must be credited to an new text end
118.32
new text begin interest-bearing suspense account within the public employees police and fire retirement new text end
118.33
new text begin fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015, new text end
118.34
new text begin and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must new text end
118.35
new text begin be credited with the same rate of investment return as the public employees police and fire new text end
118.36
new text begin retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate new text end
119.1
new text begin actuarial assumption applicable to the public employees police and fire retirement plan new text end
119.2
new text begin under section 356.215, subdivision 8, is modified from the rates specified in Minnesota new text end
119.3
new text begin Statutes 2010, section 356.215, subdivision 8, the remainder present value of future new text end
119.4
new text begin benefits amount calculation under paragraph (a), updated for the passage of time, must be new text end
119.5
new text begin revised and the amortization contribution by the city of Fairmont for the balance of the new text end
119.6
new text begin amortization period must be redetermined by the actuary retained under section 356.214 new text end
119.7
new text begin and certified by the executive director to the city of Fairmont.new text end
119.8
new text begin (d) If there was a remainder present value of future benefits amounts under new text end
119.9
new text begin Minnesota Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of new text end
119.10
new text begin Virginia shall pay an additional municipal contribution annually on or before December new text end
119.11
new text begin 31 sufficient to amortize on a level annual dollar basis by December 31, 2020, that new text end
119.12
new text begin remainder present value of future benefits amounts of the former Virginia fire department new text end
119.13
new text begin consolidation account. If, after June 29, 2012, the postretirement or preretirement interest new text end
119.14
new text begin rate actuarial assumption applicable to the public employees police and fire retirement plan new text end
119.15
new text begin under section 356.215, subdivision 8, is modified from the rates specified in Minnesota new text end
119.16
new text begin Statutes 2010, section 356.215, subdivision 8, the remainder present value of future new text end
119.17
new text begin benefits amount calculation under paragraph (a), updated for the passage of time, must be new text end
119.18
new text begin revised and any amortization contribution by the city of Virginia for the balance of the new text end
119.19
new text begin amortization period must be redetermined by the actuary retained under section 356.214 new text end
119.20
new text begin and certified by the executive director to the city of Virginia.new text end
119.21 Sec. 59. Minnesota Statutes 2012, section 353.71, subdivision 1, is amended to read:
119.22 Subdivision 1.
Eligibility. Any person who has been a member of a defined
119.23benefit retirement plan administered by the Public Employees Retirement Association,
119.24or a retirement plan administered by the Minnesota State Retirement System, or the
119.25Teachers Retirement Association, or any other public retirement system in the state of
119.26Minnesota having a like provision, except a retirement plan providing benefits for police
119.27officers or firefighters governed by sections
or
69.771 to
69.776,
new text begin or by sections 31 new text end
119.28
new text begin to 42, new text end is entitled, when qualified, to an annuity from each retirement plan if the total
119.29allowable service in all retirement plans or in any two of these retirement plans totals the
119.30number of years of allowable service required to receive a normal retirement annuity for
119.31that retirement plan, provided that no portion of the allowable service upon which the
119.32retirement annuity from one retirement plan is based is again used in the computation for
119.33benefits from another retirement plan and provided further that the person has not taken a
119.34refund from any one of these retirement plans since the person's membership in that
119.35association or system last terminated. The annuity from each fund must be determined by
120.1the appropriate provisions of the law except that the requirement that a person must have
120.2at least a specific minimum period of allowable service in the respective association or
120.3system does not apply for the purposes of this section if the combined service in two or
120.4more of these retirement plans equals the number of years of allowable service required to
120.5receive a normal retirement annuity for that retirement plan.
120.6 Sec. 60. Minnesota Statutes 2012, section 356.20, subdivision 2, is amended to read:
120.7 Subd. 2.
Covered public pension plans and funds. This section applies to the
120.8following public pension plans:
120.9 (1) the general state employees retirement plan of the Minnesota State Retirement
120.10System;
120.11 (2) the general employees retirement plan of the Public Employees Retirement
120.12Association;
120.13 (3) the Teachers Retirement Association;
120.14 (4) the State Patrol retirement plan;
120.15 (5) the St. Paul Teachers Retirement Fund Association;
120.16 (6) the Duluth Teachers Retirement Fund Association;
120.17 (7) the University of Minnesota faculty retirement plan;
120.18 (8) the University of Minnesota faculty supplemental retirement plan;
120.19 (9) the judges retirement fund;
120.20 (10) a police or firefighter's relief association specified or described in section
69.77,
120.21subdivision 1a
new text begin the Bloomington Fire Department Relief Associationnew text end ;
120.22 (11) a volunteer firefighter relief association governed by section
69.771, subdivision
120.231
;
120.24 (12) the public employees police and fire plan of the Public Employees Retirement
120.25Association;
120.26 (13) the correctional state employees retirement plan of the Minnesota State
120.27Retirement System;
120.28 (14) the local government correctional service retirement plan of the Public
120.29Employees Retirement Association; and
120.30(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.
120.31 Sec. 61. Minnesota Statutes 2012, section 356.215, subdivision 18, is amended to read:
120.32 Subd. 18.
Establishment of actuarial assumptions. (a) Before July 2, 2010, the
120.33actuarial assumptions used for the preparation of actuarial valuations under this section
120.34that are other than preretirement interest, postretirement interest, salary increase, and
121.1payroll increase may be changed only with the approval of the Legislative Commission on
121.2Pensions and Retirement or after a period of one year has elapsed since the date on which
121.3the proposed assumption change or changes were received by the Legislative Commission
121.4on Pensions and Retirement without commission action.
121.5 (b) After July 1, 2010, the actuarial assumptions used for the preparation of actuarial
121.6valuations under this section that are other than postretirement interest and preretirement
121.7interest may be changed only with the approval of the Legislative Commission on
121.8Pensions and Retirement or after a period of one year has elapsed since the date on which
121.9the proposed assumption change or changes were received by the Legislative Commission
121.10on Pensions and Retirement without commission action.
121.11 (c) A change in the applicable actuarial assumptions may be proposed by the
121.12governing board of the applicable pension fund or relief association, by the actuary
121.13retained by the joint retirement systems under section
356.214 or by the actuary retained
121.14by a local police or firefighters relief association governed by sections
or
69.771 to
121.1569.776
new text begin or by sections 31 to 42new text end , if one is retained.
121.16 Sec. 62. Minnesota Statutes 2012, section 356.216, is amended to read:
121.17
356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL
121.18
POLICE AND FIRE FUNDSnew text begin MONTHLY VOLUNTEER FIREFIGHTER RELIEF new text end
121.19
new text begin ASSOCIATIONSnew text end .
121.20The provisions of section
356.215 that govern the contents of actuarial valuations
121.21must apply to
new text begin the Bloomington Fire Department Relief Association and to new text end any local police
121.22or fire pension fund or
new text begin monthly volunteer firefighter new text end relief association required to make
121.23an actuarial report under this section, except as follows:
121.24(1) in calculating normal cost and other requirements, if required to be expressed as
121.25a level percentage of covered payroll, the salaries used in computing covered payroll must
121.26be the maximum rate of salary on which retirement and survivorship credits and amounts
121.27of benefits are determined and from which any member contributions are calculated and
121.28deducted;
121.29(2)
new text begin (1) new text end in lieu of the amortization date specified in section
356.215, subdivision
121.3011
, the appropriate amortization target date specified in
new text begin clause (2) or new text end section
69.77,
121.31subdivision 4
, or
69.773, subdivision 4, clause
new text begin paragraphnew text end (c), must be used in calculating
121.32any required amortization contribution, except that if the actuarial report
new text begin ;new text end
121.33
new text begin (2)new text end for the Bloomington Fire Department Relief Association indicates an
new text begin , anynew text end
121.34 unfunded actuarial accrued liability, the unfunded obligation is to
new text begin must new text end be amortized on
121.35a level dollar basis by December 31 of the year occurring 20 years later
new text begin after the year new text end
122.1
new text begin in which the unfunded actuarial accrued liability initially occurrednew text end , and
new text begin ,new text end if subsequent
122.2actuarial valuations for the Bloomington Fire Department Relief Association determine
122.3
new text begin indicate new text end a net actuarial experience loss incurred during the year which ended as of the day
122.4before the most recent actuarial valuation date, any unfunded
new text begin actuarial accrued new text end liability
122.5due to that loss is to be amortized on a level dollar basis by December 31 of the year
122.6occurring 20 years later
new text begin after the year in which the net actuarial experience loss occurrednew text end ;
122.7(3) in addition to the tabulation of active members and annuitants provided for in
122.8section
356.215, subdivision 13, the member contributions for active members for the
122.9calendar year and the prospective annual retirement annuities
new text begin service pensions new text end under the
122.10benefit plan for active members must be reported;
122.11(4) actuarial valuations required under section
new text begin 39 must be made annually and new text end
122.12
new text begin actuarial valuations required under section new text end
69.773, subdivision 2, must be made at least
122.13 every four years and actuarial valuations required under section
shall be made
122.14annually
new text begin or as frequently as required by generally accepted accounting principles in the new text end
122.15
new text begin government sector, whichever frequency requirement is shorternew text end ;
122.16(5) the actuarial balance sheet showing accrued assets valued at market value if the
122.17actuarial valuation is required to be prepared at least every four years or valued as current
122.18assets under section
356.215, subdivision 1, paragraph (b) or (f), whichever applies, if the
122.19actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the
122.20unfunded actuarial accrued liability must include the following required reserves:
122.21(i) for active members:
122.221.
new text begin (A)new text end retirement benefits
new text begin or service pensionsnew text end ;
122.232.
new text begin (B)new text end disability benefits;
new text begin andnew text end
122.243. refund liability due to death or withdrawal;
122.254.
new text begin (C) new text end survivors' benefits;
122.26(ii) for deferred annuitants' benefits;
122.27(iii) for former members without vested rights;
122.28(iv) for annuitants;
new text begin :new text end
122.291.
new text begin (A)new text end retirement annuities
new text begin or service pensionsnew text end ;
122.302.
new text begin (B)new text end disability annuities;
new text begin andnew text end
122.313. surviving spouses' annuities;
122.324. surviving children's annuities;
new text begin (C) survivor benefits.new text end
122.33In addition to those required reserves, separate items must be shown for additional
122.34benefits, if any, which may not be appropriately included in the reserves listed above; and
122.35(6) actuarial valuations are due
new text begin to be filed with the state auditor new text end by the first day of
122.36the seventh month after the end of the fiscal year which the actuarial valuation covers.
123.1 Sec. 63. Minnesota Statutes 2012, section 356.219, subdivision 1, is amended to read:
123.2 Subdivision 1.
Report required. (a) The State Board of Investment, on behalf
123.3of the public pension funds and programs for which it is the investment authority, and
123.4any Minnesota public pension plan that is not fully invested through the State Board of
123.5Investment, including
new text begin the Bloomington Fire Department Relief Association and new text end a local
123.6police or
new text begin volunteer new text end firefighters relief association governed by sections
or
69.771 to
123.769.775
, shall report the information specified in subdivision 3 to the state auditor. The
123.8state auditor may prescribe a form or forms for the purposes of the reporting requirements
123.9contained in this section.
123.10(b)
new text begin The Bloomington Fire Department Relief Association and new text end a local police or
123.11
new text begin volunteer new text end firefighters relief association governed by section
or sections
69.771 to
123.1269.775
is fully invested during a given calendar year for purposes of this section if all
123.13assets of the applicable pension plan beyond sufficient cash equivalent investments to
123.14cover six months expected expenses are invested under section
11A.17. The board of any
123.15fully invested public pension plan remains responsible for submitting investment policy
123.16statements and subsequent revisions as required by subdivision 3, paragraph (a).
123.17(c) For purposes of this section, the State Board of Investment is considered to be
123.18the investment authority for any Minnesota public pension fund required to be invested by
123.19the State Board of Investment under section
11A.23, or for any Minnesota public pension
123.20fund authorized to invest in the supplemental investment fund under section
11A.17 and
123.21which is fully invested by the State Board of Investment.
123.22(d) This section does not apply to the following plans:
123.23(1) the Minnesota unclassified employees retirement program under chapter 352D;
123.24(2) the public employees defined contribution plan under chapter 353D;
123.25(3) the individual retirement account plans under chapters 354B and 354D;
123.26(4) the higher education supplemental retirement plan under chapter 354C;
123.27(5) any alternative retirement benefit plan established under section
383B.914; and
123.28(6) the University of Minnesota faculty retirement plan.
123.29 Sec. 64. Minnesota Statutes 2012, section 356.219, subdivision 2, is amended to read:
123.30 Subd. 2.
Asset class definition. (a) For purposes of this section, "asset class"
123.31means any of the following asset groupings as authorized in applicable law, bylaws, or
123.32articles of incorporation:
123.33(1) cash and any cash equivalent investments with maturities of one year or less
123.34when issued;
124.1(2) debt securities with maturities greater than one year when issued, including
124.2but not limited to mortgage participation certificates and pools, asset backed securities,
124.3guaranteed investment contracts, and authorized government and corporate obligations of
124.4corporations organized under laws of the United States or any state, or the Dominion of
124.5Canada or its provinces;
124.6(3) stocks or convertible issues of any corporation organized under laws of the
124.7United States or any state, or the Dominion of Canada or its provinces, or any corporation
124.8listed on the New York Stock Exchange or the American Stock Exchange;
124.9(4) international stocks or convertible issues;
124.10(5) international debt securities; and
124.11(6) real estate and venture capital.
124.12(b) If the pension plan is investing under section
69.77, subdivision 9, section
,
124.13or any other applicable law, in open-end investment companies registered under the
124.14federal Investment Company Act of 1940, or in the Minnesota supplemental investment
124.15fund under section
11A.17, this investment must be included under an asset class indicated
124.16in paragraph (a), clauses (1) through (6), as appropriate. If the investment vehicle includes
124.17underlying securities from more than one asset class as indicated by paragraph (a), clauses
124.18(1) through (6), the investment may be treated as a separate asset class.
124.19 Sec. 65. Minnesota Statutes 2012, section 356.219, subdivision 8, is amended to read:
124.20 Subd. 8.
Timing of reports. (a) For salaried firefighter relief associations, police
124.21
new text begin the Bloomington Fire Department new text end Relief associations,
new text begin Association new text end and
new text begin the new text end volunteer
124.22firefighter relief associations, the information required under this section must be
124.23submitted by the due date for reports required under section
69.051, subdivision 1 or 1a,
124.24as applicable. If a relief association satisfies the definition of a fully invested plan under
124.25subdivision 1, paragraph (b), for the calendar year covered by the report required under
124.26section
69.051, subdivision 1 or 1a, as applicable, the chief administrative officer of
124.27the covered pension plan shall certify that compliance on a form prescribed by the state
124.28auditor. The state auditor shall transmit annually to the State Board of Investment a list or
124.29lists of covered pension plans which submitted certifications in order to facilitate reporting
124.30by the State Board of Investment under paragraph (c).
124.31(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers
124.32Retirement Fund Association, and the University of Minnesota faculty supplemental
124.33retirement plan, the information required under this section must be submitted to the state
124.34auditor by June 1 of each year.
125.1(c) The State Board of Investment, on behalf of pension funds specified in
125.2subdivision 1, paragraph (c), must report information required under this section by
125.3September 1 of each year.
125.4 Sec. 66. Minnesota Statutes 2012, section 356.406, subdivision 1, is amended to read:
125.5 Subdivision 1.
Definitions. (a) Each of the words or terms defined in this
125.6subdivision has the meaning indicated.
125.7(b) "Public pension plan" means any retirement plan or fund enumerated in section
125.8356.20, subdivision 2
, or
356.30, subdivision 3,
new text begin the Bloomington Fire Department Relief new text end
125.9
new text begin Association, new text end any relief association governed by section
or sections
69.771 to
125.1069.775
, any retirement plan governed by chapter 354B or 354C, the Hennepin County
125.11supplemental retirement plan governed by sections
383B.46 to
383B.52, or any housing
125.12and redevelopment authority retirement plan.
125.13(c) "Public pension plan member" means a person who is a participant covered by
125.14a public pension plan; a former participant of a public pension plan who has sufficient
125.15service to be entitled to receive a future retirement annuity or service pension; a recipient
125.16of a retirement annuity, service pension, or disability benefit from a public pension plan; or
125.17a former participant of a public pension plan who has member or employee contributions
125.18to the person's credit in the public pension plan.
125.19(d) "Survivor" means the surviving spouse, a former spouse, a surviving child, a
125.20joint annuitant, a designated recipient of a second or remainder portion of an optional
125.21annuity form, a beneficiary, or the estate of a deceased public pension plan member, as
125.22those terms are commonly understood or defined in the benefit plan document of the
125.23public pension plan.
125.24(e) "Survivor benefit" means a surviving spouse benefit, surviving child benefit,
125.25second or remainder portion of an optional annuity form, a death benefit, a funeral benefit,
125.26or a refund of member or employee contributions payable on account of the death of a
125.27public pension plan member as provided for in the benefit plan document of the public
125.28pension plan.
125.29 Sec. 67. Minnesota Statutes 2012, section 356A.01, subdivision 19, is amended to read:
125.30 Subd. 19.
Pension fund. "Pension fund" means the assets amassed and held in a
125.31pension plan, other than the general fund, as reserves for present and future payment
125.32of benefits and administrative expenses. For
new text begin the Bloomington Fire Department Relief new text end
125.33
new text begin Association or new text end a retirement plan governed by section
69.77 or by chapter 424A, the term
125.34means the relief association special fund.
126.1 Sec. 68. Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:
126.2 Subd. 4.
Economic interest statement. (a) Each member of the governing board
126.3of a covered pension plan and the chief administrative officer of the plan shall file with
126.4the plan a statement of economic interest.
126.5(b) For a covered pension plan other than a plan specified in paragraph (c), the
126.6statement must contain the information required by section
10A.09, subdivision 5, and
126.7any other information that the fiduciary or the governing board of the plan determines is
126.8necessary to disclose a reasonably foreseeable potential or actual conflict of interest.
126.9(c) For a covered pension plan governed by sections
69.771 to
69.776 or a covered
126.10pension plan governed by section
with
new text begin the Bloomington Fire Department Relief new text end
126.11
new text begin Association if its special fund new text end assets
new text begin are new text end under $8,000,000, the statement must contain
126.12the following:
126.13(1) the person's principal occupation and principal place of business;
126.14(2) whether or not the person has an ownership of or interest of ten percent or greater
126.15in an investment security brokerage business, a real estate sales business, an insurance
126.16agency, a bank, a savings and loan, or another financial institution; and
126.17(3) any relationship or financial arrangement that can reasonably be expected to
126.18give rise to a conflict of interest.
126.19(d) The statement must be filed annually with the chief administrative officer of
126.20the plan and be available for public inspection during regular office hours at the office
126.21of the pension plan.
126.22(e) A disclosure form meeting the requirements of the federal Investment Advisers
126.23Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and
126.24filed with the State Board of Investment or the pension plan meets the requirements of
126.25this subdivision.
126.26(f) The chief administrative officer of each covered pension plan, by January 15,
126.27annually, shall transmit a certified listing of all individuals who have filed statements of
126.28economic interest with the plan under this subdivision during the preceding 12 months
126.29and the address of the office referenced in paragraph (d) to the Campaign Finance and
126.30Public Disclosure Board.
126.31 Sec. 69. Minnesota Statutes 2012, section 356A.07, subdivision 2, is amended to read:
126.32 Subd. 2.
Annual financial report. A covered pension plan shall provide each
126.33active plan participant and benefit recipient with a copy of the most recent annual financial
126.34report required by section
356.20 and a copy of the most recent actuarial evaluation,
127.1if any, required by section
,
69.773,
356.215, or
356.216,
new text begin or by section 39, new text end or a
127.2summary of those reports.
127.3 Sec. 70. Minnesota Statutes 2012, section 423A.02, subdivision 1, is amended to read:
127.4 Subdivision 1.
Amortization state aid. (a) A municipality in which is located a local
127.5police or salaried firefighters relief association to which the provisions of section
,
127.6apply, that had an unfunded actuarial accrued liability in the most recent relief association
127.7actuarial valuation, is entitled, upon application as required by the commissioner of
127.8revenue, to receive local police and salaried firefighters' relief association amortization
127.9state aid if the municipality and the appropriate relief association both comply with the
127.10applicable provisions of sections
69.031, subdivision 5,
69.051, subdivisions 1 and 3, and
127.11.
new text begin The cities of Fairmont and Minneapolis are entitled, subject to subdivisions 2, 4, new text end
127.12
new text begin and 5, to receive amortization state aid under this section.new text end
127.13(b) The total amount of amortization state aid to all entitled municipalities must not
127.14exceed $5,055,000
new text begin the appropriation under subdivision 3anew text end .
127.15(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph,
127.16the amount of amortization state aid to which a municipality is entitled annually is an
127.17amount equal to the level annual dollar amount required to amortize, by December 31,
127.182010, the unfunded actuarial accrued liability of the special fund of the appropriate
127.19relief association as reported in the December 31, 1978, actuarial valuation of the relief
127.20association prepared under sections
and
, reduced by the dollar amount
127.21required to pay the interest on the unfunded actuarial accrued liability of the special fund of
127.22the relief association for calendar year 1981 set at the rate specified in Minnesota Statutes
127.231978, section
356.215, subdivision 8. For the city of Minneapolis, the amortization state
127.24aid amount thus determined must be reduced by $747,232 on account of the former
127.25Minneapolis Police Relief Association and by $772,768 on account of the former
127.26Minneapolis Fire Department Relief Association.
new text begin The amortization state aid amounts are:new text end
127.27
new text begin Citynew text end
new text begin Aid Amountnew text end
127.28
new text begin Fairmontnew text end
new text begin $24,172new text end
127.29
new text begin Minneapolisnew text end
new text begin $2,728,547new text end
127.30If the amortization state aid amounts determined under this paragraph exceed the
127.31amount appropriated for this purpose
new text begin under subdivision 3anew text end , the amortization state aid for
127.32actual allocation must be reduced pro rata.
127.33(d)
new text begin Each municipality is eligible for an amortization state aid payment in a fiscal new text end
127.34
new text begin year if:new text end
128.1
new text begin (1) for Fairmont, the executive director of the Public Employees Retirement new text end
128.2
new text begin Association certifies on or before June 30 that a municipal contribution with respect to the new text end
128.3
new text begin former Fairmont Police Relief Association is payable in the upcoming fiscal year under new text end
128.4
new text begin section 353.665, subdivision 8, paragraph (c); andnew text end
128.5
new text begin (2) for Minneapolis, the executive director of the Public Employees Retirement new text end
128.6
new text begin Association certifies on or before June 30 that an additional employer contribution with new text end
128.7
new text begin respect to either the former Minneapolis Firefighters Relief Association or the former new text end
128.8
new text begin Minneapolis Police Relief Association is payable in the upcoming fiscal year under section new text end
128.9
new text begin 353.665, subdivision 8, paragraph (b).new text end
128.10Payment of amortization state aid to municipalities must be made directly to
128.11the municipalities involved in three equal installments on July 15, September 15, and
128.12November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
128.13shall transmit the aid amount to the treasurer
new text begin custodian new text end of the local relief association
new text begin trust new text end
128.14
new text begin fund or to the executive director of the public employees police and fire retirement fund, new text end
128.15
new text begin whichever applies, new text end for immediate deposit in the special fund of the relief association.
128.16(e) The commissioner of revenue shall
new text begin administer the amortization state aid program. new text end
128.17
new text begin The commissioner shall new text end prescribe and periodically revise
new text begin , as necessary,new text end the form for and
128.18
new text begin required new text end content of the application
new text begin certifications new text end for the amortization state aid.
128.19(f) The amount required under this section, as provided in subdivision 3a, is
128.20appropriated annually from the general fund to the commissioner of revenue.
128.21 Sec. 71. Minnesota Statutes 2012, section 423A.02, subdivision 1b, is amended to read:
128.22 Subd. 1b.
Additional amortization state aid. (a) Annually, on October 1, the
128.23commissioner of revenue shall allocate the additional amortization state aid transferred
128.24under section
69.021, subdivision 11, to:
128.25 (1) all police or salaried firefighters relief associations governed by and in full
128.26compliance with the requirements of section
, that had an unfunded actuarial accrued
128.27liability in the actuarial valuation prepared under sections
and
as of the
128.28preceding December 31;
128.29 (2) all local police or salaried firefighter consolidation accounts governed by chapter
128.30353A that are certified by the executive director of the public employees retirement
128.31association as having for the current fiscal year an additional municipal contribution
128.32amount under section
353A.09, subdivision 5, paragraph (b), and that have implemented
128.33section
353A.083, subdivision 1, if the effective date of the consolidation preceded May
128.3424, 1993, and that have implemented section
353A.083, subdivision 2, if the effective date
128.35of the consolidation preceded June 1, 1995; and
129.1 (3) the municipalities that are required to make an additional municipal contribution
129.2under section
353.665, subdivision 8;
353.667, subdivision 6; or
353.668, subdivision
129.36
, for the duration of the required additional contribution.
129.4 (b) The commissioner shall allocate the state aid on the basis of the proportional share
129.5of the relief association or consolidation account of the total unfunded actuarial accrued
129.6liability of all recipient relief associations and consolidation accounts as of December 31,
129.71993, for relief associations, and as of June 30, 1994, for consolidation accounts.
129.8 (c)
new text begin (a) new text end Beginning October 1, 2000
new text begin 2013new text end , and annually thereafter, the commissioner
129.9shall allocate the
new text begin additional amortization new text end state aid, including any state aid in excess of the
129.10limitation in subdivision 4, on the following basis:
129.11 (1) 64.5 percent to the municipalities to which section
353.665, subdivision
129.128
, paragraph (b), or
353A.09, subdivision 5, paragraph (b), apply for distribution in
129.13accordance with paragraph (b) and subject to the limitation in subdivision 4;
129.14 (2) 34.2
new text begin (1) 47.1 new text end percent to the city of Minneapolis to fund any unfunded actuarial
129.15accrued liability in the actuarial valuation prepared under sections
and
356.216
129.16 as of the preceding December 31 for the Minneapolis Police Relief Association or the
129.17Minneapolis Fire Department Relief Association; and
new text begin defray the employer costs associated new text end
129.18
new text begin with police and firefighter retirement coverage;new text end
129.19
new text begin (2) 25.8 percent as additional funding to support the minimum fire state aid for new text end
129.20
new text begin volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);new text end
129.21
new text begin (3) 12.9 percent to the city of Duluth to defray employer costs associated with new text end
129.22
new text begin police and firefighter retirement coverage;new text end
129.23
new text begin (4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the new text end
129.24
new text begin investment performance requirement of paragraph (c) is met; and new text end
129.25 (3)
new text begin (5) new text end 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued
129.26liability in the actuarial valuation prepared under sections
and
as of the
129.27preceding December 31 for the Virginia Fire Department Relief Association
new text begin defray the new text end
129.28
new text begin employer contribution under section 353.665, subdivision 8, paragraph (d)new text end .
129.29 If there is no unfunded actuarial accrued liability in both
new text begin additional employer new text end
129.30
new text begin contribution under section 353.665, subdivision 8, paragraph (b), certified under new text end
129.31
new text begin subdivision 1, paragraph (d), clause (2), with respect to new text end the
new text begin former new text end Minneapolis Police
129.32Relief Association and the
new text begin former new text end Minneapolis Fire Department Relief Association as
129.33disclosed in the most recent actuarial valuations for the relief associations prepared under
129.34sections
and
, the commissioner shall allocate that 34.2
new text begin 47.1 new text end percent
129.35of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
129.36to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.1funding to support minimum fire state aid for volunteer firefighters relief associations. If
130.2there is no unfunded actuarial accrued liability in
new text begin employer contribution by new text end the
new text begin city of new text end
130.3Virginia Fire Department Relief Association as disclosed in the most recent actuarial
130.4valuation for the relief association prepared under sections
and
new text begin under new text end
130.5
new text begin section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department new text end
130.6
new text begin Relief Association certified on or before June 30 by the executive director of the Public new text end
130.7
new text begin Employees Retirement Associationnew text end , the commissioner shall allocate that 1.3 percent
130.8of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
130.9to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.10funding to support minimum fire state aid for volunteer firefighters relief associations.
130.11Upon the final payment to municipalities required by section
353.665, subdivision 8,
130.12paragraph (b), or
353A.09, subdivision 5, paragraph (b), the commissioner shall allocate
130.13that 64.5 percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement
130.14Fund Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial
130.15accrued liability in the actuarial valuation proposed under sections
and
356.216
130.16 as of the preceding December 31 for the Minneapolis Police Relief Association or the
130.17Minneapolis Firefighters Relief Association, 20 percent for the city of Duluth to pay for
130.18any costs associated with the police and firefighters pensions, and 40 percent as additional
130.19funding to support minimum fire state aid for volunteer firefighters relief associations.
130.20
new text begin (b)new text end The allocation must be made by the commissioner at the same time and under the
130.21same procedures as specified in subdivision 3
new text begin of revenue on October 1 annuallynew text end .
130.22
new text begin (c)new text end With respect to the St. Paul Teachers Retirement Fund Association, annually,
130.23beginning on July 1, 2005, if the applicable teacher's association five-year average
130.24time-weighted rate of investment return does not equal or exceed the performance of a
130.25composite portfolio assumed passively managed (indexed) invested ten percent in cash
130.26equivalents, 60 percent in bonds and similar debt securities, and 30 percent in domestic
130.27stock calculated using the formula under section
11A.04, clause (11), the aid allocation
130.28to that
new text begin the new text end retirement fund under this section ceases until the five-year annual rate of
130.29investment return equals or exceeds the performance of that composite portfolio.
130.30 (d) The amounts required under this subdivision are the amounts annually
130.31appropriated to the commissioner of revenue under section
69.021, subdivision 11,
130.32paragraph (e)
new text begin , and the aid amounts in excess of the limitation in subdivision 4new text end .
130.33 Sec. 72. Minnesota Statutes 2012, section 423A.02, subdivision 2, is amended to read:
130.34 Subd. 2.
Continued eligibility. A municipality that has qualified for amortization
130.35state aid under subdivision 1 on December 31, 1984, and has an additional municipal
131.1contribution payable under section
353A.09, subdivision 5, paragraph (b), as of the most
131.2recent December 31, continues upon application to be entitled to receive amortization
131.3state aid under subdivision 1 and supplementary amortization state aid under subdivision
131.41a, after the local police or salaried firefighters' relief association has been consolidated
131.5into the public employees police and fire fund. If a municipality loses entitlement for
131.6amortization state aid and supplementary amortization state aid in any year because of
131.7not having an additional municipal contribution under section
353A.09, subdivision 5,
131.8paragraph (b), the municipality is not entitled to the aid amounts in any subsequent year. A
131.9municipality that received amortization aid in 1999 and is required to make an additional
131.10municipal contribution under section
353.665, subdivision 8, continues to qualify for the
131.11amortization state aid and the supplemental amortization aid until December 31, 2009
131.12
new text begin received amortization aid in 2011 and is required to make a municipal contribution under new text end
131.13
new text begin section 353.665, subdivision 8, paragraph (b), (c), or (d), whichever applies, continues to new text end
131.14
new text begin qualify for amortization state aid for the duration of the applicable municipal contributionnew text end .
131.15 Sec. 73. Minnesota Statutes 2012, section 423A.02, subdivision 3, is amended to read:
131.16 Subd. 3.
Reallocation of amortization or supplementary amortization state aid.
131.17 (a) Seventy percent of the difference between $5,720,000 and the current year amortization
131.18aid and supplemental amortization aid distributed under subdivisions
new text begin subdivisionnew text end 1 and 1a
131.19 that is not distributed for any reason to a municipality for use by a local police or salaried
131.20fire relief association must be distributed by the commissioner of revenue according to this
131.21paragraph. The commissioner shall distribute 50 percent of the amounts derived under
131.22this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers
131.23Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund
131.24Association to fund the unfunded actuarial accrued liabilities of the respective funds.
131.25These payments shall
new text begin must new text end be made on or before June 30
new text begin July 15 new text end each fiscal year. If the
131.26St. Paul Teachers Retirement Fund Association
new text begin or the Duluth Teachers Retirement Fund new text end
131.27
new text begin Association new text end becomes fully funded, its
new text begin the association's new text end eligibility for
new text begin its portion of new text end this
131.28aid ceases. Amounts remaining in the undistributed balance account at the end of the
131.29biennium if aid eligibility ceases cancel to the general fund.
131.30 (b) In order to receive amortization and supplementary amortization aid under
131.31paragraph (a), prior to
new text begin before new text end June 30
new text begin annually new text end Independent School District No. 625, St.
131.32Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers
131.33Retirement Fund Association.
131.34 (c) Thirty percent of the difference between $5,720,000 and the current year
131.35amortization aid and supplemental amortization aid under subdivisions 1 and
new text begin subdivisionnew text end
132.1 1a that is not distributed for any reason to a municipality for use by a local police or
132.2salaried firefighter relief association must be distributed under section
69.021, subdivision
132.37
, paragraph (d), as additional funding to support a minimum fire state aid amount for
132.4volunteer firefighter relief associations.
132.5 Sec. 74. Minnesota Statutes 2012, section 423A.02, subdivision 3a, is amended to read:
132.6 Subd. 3a.
Appropriations for amortization state aid; supplementary
132.7
amortization state aid; and amortization state aid and supplementary state aid
132.8
reallocations. $4,720,000
new text begin $5,720,000 new text end is annually appropriated from the general fund to
132.9the commissioner of revenue for amortization state aid under subdivision 1, and for the
132.10reallocation of amortization aid under subdivision 3. $1,000,000 is annually appropriated
132.11from the general fund to the commissioner of revenue for supplementary amortization
132.12state aid under subdivision 1a, and for the reallocation of supplementary amortization state
132.13aid under subdivision 3.
132.14 Sec. 75. Minnesota Statutes 2012, section 423A.02, subdivision 4, is amended to read:
132.15 Subd. 4.
Limit on certain total aid amounts. (a) The total of amortization aid,
132.16supplemental amortization aid, and additional amortization aid under this section payable
132.17to a municipality to which section
353.665, subdivision 8, paragraph (b),
new text begin (c), or (d), new text end
132.18applies, may not exceed the amount of the additional municipal contribution payable by
132.19an individual municipality under section
353.665, subdivision 8, paragraph (b)
new text begin , (c), or (d)new text end .
132.20(b) Any aid amount in excess of the limit under this subdivision for an individual
132.21municipality must be redistributed to the other municipalities to which section
353.665,
132.22subdivision 8
, paragraph (b),
new text begin (c), or (d), new text end applies. The excess aid must be distributed in
132.23proportion to each municipality's additional municipal contribution under section
353.665,
132.24subdivision 8
, paragraph (b)
new text begin , (c), or (d)new text end .
132.25(c) When the total aid for each municipality under this section equals the limit under
132.26paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.
132.27 Sec. 76. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
132.28 Subd. 5.
Termination of state aid programs. The amortization state aid,
132.29supplemental amortization state aid, and additional amortization state aid programs
132.30terminate as of the December 31, next following the date of the actuarial valuation when
132.31the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial
132.32accrued liability of that plan or December 31, 2009
new text begin when the assets of the Duluth Teachers new text end
133.1
new text begin Retirement Fund Association equal the actuarial accrued liability of that plannew text end , whichever
133.2is later.
133.3 Sec. 77. Minnesota Statutes 2012, section 424A.001, subdivision 4, is amended to read:
133.4 Subd. 4.
Relief association. (a) "Relief association" or "volunteer firefighters' relief
133.5association" means a volunteer firefighters' relief association or a volunteer firefighters'
133.6division or account of a partially salaried and partially volunteer firefighters' relief
133.7association that is:
133.8(1) organized and incorporated as a nonprofit corporation to provide retirement
133.9benefits to volunteer firefighters under chapter 317A and any laws of the state;
133.10(2) governed by this chapter and sections
69.771 to
69.775; and
133.11(3) directly associated with:
133.12(i) a fire department established by municipal ordinance;
133.13(ii) an independent nonprofit firefighting corporation that is organized under the
133.14provisions of chapter 317A and that operates primarily for firefighting purposes; or
133.15(iii) a fire department operated as or by a joint powers entity that operates primarily
133.16for firefighting purposes.
133.17(b) "Relief association" or "volunteer firefighters' relief association" does not mean:
133.18(1) the Bloomington Fire Department Relief Association governed by section
69.77
133.19new text begin sections 31 to 42new text end ; Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446,
133.20as amended; or
133.21(2) the voluntary statewide lump-sum volunteer firefighter retirement plan governed
133.22by chapter 353G.
133.23(c) A relief association or volunteer firefighters' relief association is a governmental
133.24entity that receives and manages public money to provide retirement benefits for individuals
133.25providing the governmental services of firefighting and emergency first response.
133.26 Sec. 78. Minnesota Statutes 2012, section 424A.02, subdivision 9, is amended to read:
133.27 Subd. 9.
Limitation on ancillary benefits. A defined benefit relief association,
133.28including any volunteer firefighters relief association governed by section
new text begin sections new text end
133.29
new text begin 31 to 42 new text end or any volunteer firefighters division of a relief association governed by chapter
133.30424, may only pay ancillary benefits which would constitute an authorized disbursement
133.31as specified in section
424A.05 subject to the following requirements or limitations:
133.32 (1) with respect to a defined benefit relief association in which governing bylaws
133.33provide solely for a lump-sum service pension to a retiring member, or provide a retiring
133.34member the choice of either a lump-sum service pension or a monthly service pension
134.1and the lump-sum service pension was chosen, no ancillary benefit may be paid to any
134.2former member or paid to any person on behalf of any former member after the former
134.3member (i) terminates active service with the fire department and active membership
134.4in the relief association; and (ii) commences receipt of a service pension as authorized
134.5under this section; and
134.6 (2) with respect to any defined benefit relief association, no ancillary benefit paid or
134.7payable to any member, to any former member, or to any person on behalf of any member
134.8or former member, may exceed in amount the total earned service pension of the member
134.9or former member. The total earned service pension must be calculated by multiplying
134.10the service pension amount specified in the bylaws of the relief association at the time of
134.11death or disability, whichever applies, by the years of service credited to the member or
134.12former member. The years of service must be determined as of (i) the date the member or
134.13former member became entitled to the ancillary benefit; or (ii) the date the member or
134.14former member died entitling a survivor or the estate of the member or former member to
134.15an ancillary benefit. The ancillary benefit must be calculated without regard to whether the
134.16member had attained the minimum amount of service and membership credit specified in
134.17the governing bylaws. For active members, the amount of a permanent disability benefit
134.18or a survivor benefit must be equal to the member's total earned service pension except
134.19that the bylaws of a defined benefit relief association may provide for the payment of a
134.20survivor benefit in an amount not to exceed five times the yearly service pension amount
134.21specified in the bylaws on behalf of any member who dies before having performed five
134.22years of active service in the fire department with which the relief association is affiliated.
134.23(3)(i) If a lump sum survivor or death benefit is payable under the articles of
134.24incorporation or bylaws, the benefit must be paid:
134.25(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
134.26(B) as a survivor benefit to the surviving children of the deceased firefighter if
134.27no surviving spouse;
134.28(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
134.29surviving spouse or surviving children; or
134.30(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
134.31surviving children and no beneficiary designated.
134.32(ii) If there are no surviving children, the surviving spouse may waive, in writing,
134.33wholly or partially, the spouse's entitlement to a survivor benefit.
134.34(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
134.35incorporation or bylaws, the benefit must be paid:
134.36(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
135.1(B) as a survivor benefit to the surviving children of the deceased firefighter if
135.2no surviving spouse;
135.3(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
135.4surviving spouse or surviving children; or
135.5(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
135.6surviving spouse, no surviving children, and no beneficiary designated.
135.7(ii) If there are no surviving children, the surviving spouse may waive, in writing,
135.8wholly or partially, the spouse's entitlement to a survivor benefit.
135.9(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
135.10survivor benefit payable to a designated beneficiary, the relief association bylaws may
135.11limit the total survivor benefit amount payable.
135.12(5) For purposes of this section, for a monthly benefit volunteer fire relief association
135.13or for a combination lump-sum and monthly benefit volunteer fire relief association where
135.14a monthly benefit service pension has been elected by or a monthly benefit is payable with
135.15respect to a firefighter, a designated beneficiary must be a natural person. For purposes
135.16of this section, for a lump-sum volunteer fire relief association or for a combination
135.17lump-sum and monthly benefit volunteer fire relief association where a lump-sum service
135.18pension has been elected by or a lump-sum benefit is payable with respect to a firefighter,
135.19a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to
135.20the surviving children organized under chapter 501B as authorized by this section and
135.21there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding
135.22a requirement of this section to the contrary.
135.23 Sec. 79. Minnesota Statutes 2012, section 475.52, subdivision 6, is amended to read:
135.24 Subd. 6.
Certain purposes. Any municipality may issue bonds for paying
135.25judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
135.26for funding actuarial liabilities to pay postemployment benefits to employees or officers
135.27after their termination of service; or for funding all or part of the municipality's current
135.28and future unfunded liability for a pension or retirement fund or plan referred to in
135.29section
356.20, subdivision 2, as those liabilities are most recently computed under
135.30sections
356.215 and
356.216. The board of trustees or directors of a
new text begin the Bloomington new text end
135.31
new text begin Fire Department new text end Relief Association referred to in section
must consent and must
135.32be a party to any contract made under this section with respect to the fund held by it
135.33for the benefit of and in trust for its members. For purposes of this section, the term
135.34"postemployment benefits" means benefits giving rise to a liability under Statement No.
135.3545 of the Governmental Accounting Standards Board.
136.1 Sec. 80.
new text begin REVISOR'S INSTRUCTION.new text end
136.2
new text begin (a) The revisor of statutes shall not show the text of Minnesota Statutes, section new text end
136.3
new text begin 69.77, and shall add the note in Minnesota Statutes, section 69.77, "CITY OF new text end
136.4
new text begin BLOOMINGTON; LOCAL."new text end
136.5
new text begin (b) In Minnesota Statutes 2014 and subsequent editions, Minnesota Statutes, new text end
136.6
new text begin sections 69.771 to 69.776 must be recodified as Minnesota Statutes, sections 424A.091 new text end
136.7
new text begin to 424A.096, and all statutory cross-references revised.new text end
136.8 Sec. 81.
new text begin REPEALER.new text end
136.9
new text begin (a)new text end new text begin Minnesota Statutes 2012, section 353.665, subdivisions 2, 3, 4, 6, 7, 9, and new text end
136.10
new text begin 10,new text end new text begin are repealed.new text end
136.11
new text begin (b)new text end new text begin Minnesota Statutes 2012, sections 353.667; 353.668; 353.669; and 353.6691,new text end new text begin are new text end
136.12
new text begin repealed.new text end
136.13
new text begin (c)new text end new text begin Minnesota Statutes 2012, sections 353A.01; 353A.02; 353A.03; 353A.04; new text end
136.14
new text begin 353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 353A.09; 353A.10; new text end
136.15
new text begin 353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 353B.07; 353B.08; 353B.09; new text end
136.16
new text begin 353B.10; 353B.11; 353B.12; 353B.13; and 353B.14,new text end new text begin are repealed.new text end
136.17
new text begin (d)new text end new text begin Minnesota Statutes 2012, sections 423A.01; 423A.04; 423A.05; 423A.07; new text end
136.18
new text begin 423A.10; 423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171; new text end
136.19
new text begin 423A.18; 423A.19; 423A.20; 423A.21; and 423A.22,new text end new text begin are repealed.new text end
136.20
new text begin (e)new text end new text begin Minnesota Statutes 2012, sections 69.021, subdivision 6; 353.64, subdivision 3; new text end
136.21
new text begin and 423A.02, subdivision 1a,new text end new text begin are repealed.new text end
136.22
new text begin (f)new text end new text begin Minnesota Statutes 2012, section 69.77, subdivision 3,new text end new text begin is repealed.new text end
136.23 Sec. 82.
new text begin EFFECTIVE DATE; PRIOR AID ALLOCATIONS VALIDATED.new text end
136.24
new text begin (a) Sections 70 to 76 are effective June 1, 2013.new text end
136.25
new text begin (b) Except as provided in paragraph (c), sections 1 to 69 and 77 to 81 are effective new text end
136.26
new text begin July 1, 2013.new text end
136.27
new text begin (c) With respect to the city of Minneapolis, section 18 is effective retroactively from new text end
136.28
new text begin July 20, 2011, and with respect to the city of Fairmont, section 18 is effective retroactively new text end
136.29
new text begin from May 10, 2012.new text end
136.30
new text begin (d) Allocations of amortization state aid, supplementary amortization state aid, or new text end
136.31
new text begin additional amortization state aid made by the commissioner of revenue before January 1, new text end
136.32
new text begin 2013, are hereby validated.new text end
137.1
ARTICLE 6
137.2
VOLUNTEER FIREFIGHTER RETIREMENT CHANGES
137.3 Section 1. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
137.4 Subdivision 1.
Covered relief associations. The applicable provisions of sections
137.569.771
to
69.776 apply to
new text begin govern new text end any firefighters' relief association other than
new text begin defined in new text end
137.6
new text begin section 424A.001, subdivision 4, and do not apply to new text end a relief association enumerated in
137.7section
69.77, subdivision 1a, which is organized under any laws of this state, which is
137.8composed of volunteer firefighters or is composed partially of volunteer firefighters and
137.9partially of salaried firefighters with retirement coverage provided by the public employees
137.10police and fire fund and which, in either case, operates subject to the service pension
137.11minimum requirements for entitlement and maximums contained in section
, or
137.12subject to a special law modifying those requirements or maximums.
137.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
137.14 Sec. 2. Minnesota Statutes 2012, section 69.774, subdivision 1, is amended to read:
137.15 Subdivision 1.
Authorized inclusion in fire state aid program; covered nonprofit
137.16
corporations. new text begin (a) new text end This section shall apply
new text begin applies new text end to any independent nonprofit firefighting
137.17corporation incorporated or organized pursuant to
new text begin under new text end chapter 317A which
new text begin : (1)new text end operates
137.18exclusively for firefighting purposes,
new text begin ; (2)new text end which is composed of volunteer firefighters,
new text begin ; new text end
137.19
new text begin and (3)new text end which has a duly established separate subsidiary incorporated firefighters' relief
137.20association which provides retirement coverage for or pays a service pension to a retired
137.21firefighter or a retirement benefit to a surviving dependent of either an active or a retired
137.22firefighter, and which operates
new text begin is new text end subject to the service pension minimum requirements
137.23for entitlement to and maximums for a service pension contained in section
,
137.24or a special law modifying those requirements or maximums
new text begin applicable provisions of new text end
137.25
new text begin chapter 424Anew text end .
137.26
new text begin (b)new text end Notwithstanding any law to the contrary, a municipality contracting with an
137.27independent nonprofit firefighting corporation shall
new text begin must new text end be included in the distribution of
137.28fire state aid to the appropriate county auditor by the state auditor only if the independent
137.29nonprofit firefighting corporation complies with the provisions of this section.
137.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
137.31 Sec. 3. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
138.1 Subd. 2.
Election of coverage. (a) The process for electing coverage of volunteer
138.2firefighters by the retirement plan is initiated by a request to the executive director for a
138.3cost analysis of the prospective retirement coverage.
138.4(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
138.5association governed by chapter 424A, the cost analysis of the prospective retirement
138.6coverage must be requested jointly by the secretary of the volunteer firefighters' relief
138.7association, following approval of the request by the board of the volunteer firefighters'
138.8relief association, and the chief administrative officer of the entity associated with the relief
138.9association, following approval of the request by the governing body of the entity associated
138.10with the relief association. If the relief association is associated with more than one entity,
138.11the chief administrative officer of each associated entity must execute the request. If
138.12the volunteer firefighters are not currently covered by a volunteer firefighters' relief
138.13association, the cost analysis of the prospective retirement coverage must be requested by
138.14the chief administrative officer of the entity operating the fire department. The request
138.15must be made in writing and must be made on a form prescribed by the executive director.
138.16(c) The cost analysis of the prospective retirement coverage by the statewide
138.17retirement plan must be based on the service pension amount under section
353G.11
138.18closest to the service pension amount provided by the volunteer firefighters' relief
138.19association if the relief association is a lump-sum defined benefit plan, or the amount equal
138.20to 95 percent of the most current average account balance per relief association member if
138.21the relief association is a defined contribution plan, or to the lowest service pension amount
138.22under section
353G.11 if there is no volunteer firefighters' relief association, rounded up,
138.23and any other service pension amount designated by the requester or requesters. The cost
138.24analysis must be prepared using a mathematical procedure certified as accurate by an
138.25approved actuary retained by the Public Employees Retirement Association.
138.26(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
138.27that has filed the information required under section
69.051 in a timely fashion, upon
138.28request by the executive director, the state auditor shall provide the most recent data
138.29available on the financial condition of the volunteer firefighters' relief association, the most
138.30recent firefighter demographic data available, and a copy of the current relief association
138.31bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
138.32exists, the chief administrative officer of the entity operating the fire department shall
138.33provide the demographic information on the volunteer firefighters serving as members
138.34of the fire department requested by the executive director.
138.35(e) If a cost analysis is requested, the executive director of the State Board of
138.36Investment shall review the investment portfolio of the relief association, if applicable,
139.1for compliance with the applicable provisions of chapter 11A and for appropriateness
139.2for retention under the established investment objectives and investment policies of the
139.3State Board of Investment. If the prospective retirement coverage change is approved
139.4under paragraph (f), the State Board of Investment may require that the relief association
139.5liquidate any investment security or other asset which the executive director of the State
139.6Board of Investment has determined to be an ineligible or inappropriate investment for
139.7retention by the State Board of Investment. The security or asset liquidation must occur
139.8before the effective date of the transfer of retirement plan coverage. If requested to do so by
139.9the chief administrative officer of the relief association, the executive director of the State
139.10Board of Investment shall provide advice about the best means to conduct the liquidation.
139.11(f) Upon receipt of the cost analysis, the governing body of the municipality or
139.12independent nonprofit firefighting corporation associated with the fire department shall
139.13either approve or disapprove the retirement coverage change within 90
new text begin 120 new text end days. If the
139.14retirement coverage change is not acted upon within 90
new text begin 120 new text end days, it is deemed to be
139.15disapproved. If the retirement coverage change is approved by the applicable governing
139.16body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
139.17is effective on the next following January 1.
139.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
139.19 Sec. 4. Minnesota Statutes 2012, section 424A.001, is amended by adding a
139.20subdivision to read:
139.21
new text begin Subd. 11.new text end new text begin Fiscal year.new text end new text begin The fiscal year for a volunteer firefighter relief association new text end
139.22
new text begin begins on January 1 of each calendar year and ends on December 31 of the same calendar new text end
139.23
new text begin year.new text end
139.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
139.25 Sec. 5. Minnesota Statutes 2012, section 424A.01, subdivision 6, is amended to read:
139.26 Subd. 6.
Return to active firefighting after break in service. (a) The requirements
139.27of This section apply
new text begin subdivision applies new text end to all breaks in service, except breaks in
new text begin that the new text end
139.28
new text begin resumption new text end service mandated by
new text begin requirements of this subdivision do not apply to leaves new text end
139.29
new text begin of absence made available by new text end federal or
new text begin statute, such as the Family Medical Leave Act, new text end
139.30
new text begin United States Code, title 29, section 2691, and the Uniformed Services Employment and new text end
139.31
new text begin Reemployment Rights Act, United States Code, title 38, section 4301, and do not apply new text end
139.32
new text begin to leaves of absence made available by new text end state law
new text begin statute, such as the Parental Leave Act, new text end
139.33
new text begin section 181.941; the Leave for Organ Donations Act, section 181.9456; the Leave for new text end
140.1
new text begin Civil Air Patrol Service Act, section 181.946; the Leave for Immediate Family Members new text end
140.2
new text begin of Military Personnel Injured or Killed in Active Service Act, section 181.947; or the new text end
140.3
new text begin Protection of Jurors' Employment Act, section 593.50new text end .
140.4(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and
140.5fire prevention duties for at least 60 days resumes performing active firefighting with the
140.6fire department associated with the relief association, if the bylaws of the relief association
140.7so permit, the firefighter may again become an active member of the relief association. A
140.8firefighter who returns to active service and membership is subject to the service pension
140.9calculation requirements under this section.
140.10(2) A firefighter who has been granted an approved leave of absence not exceeding
140.11one year by the fire department or by the relief association is exempt from the minimum
140.12period of resumption service requirement of this section.
140.13(3) A person who has a break in service not exceeding one year but has not been
140.14granted an approved leave of absence and who has not received a service pension or
140.15disability benefit may be made exempt from the minimum period of resumption service
140.16requirement of this section by the relief association bylaws.
140.17(4) If the bylaws so provide, a firefighter who returns to active relief association
140.18membership under this paragraph may continue to collect a monthly service pension,
140.19notwithstanding the service pension eligibility requirements under chapter 424A.
140.20(c) If a former firefighter who has received a service pension or disability benefit
140.21returns to active relief association membership under paragraph (b), the firefighter may
140.22qualify for the receipt of a service pension from the relief association for the resumption
140.23service period if the firefighter meets the service requirements of section
424A.016,
140.24subdivision 3
, or
424A.02, subdivision 2. No firefighter may be paid a service pension
140.25more than once for the same period of service.
140.26(d) If a former firefighter who has not received a service pension or disability benefit
140.27returns to active relief association membership under paragraph (b), the firefighter may
140.28qualify for the receipt of a service pension from the relief association for the original and
140.29resumption service periods if the firefighter meets the service requirements of section
140.30424A.016
, subdivision 3, or
424A.02, subdivision 2, based on the original and resumption
140.31years of service credit.
140.32(e) A firefighter who returns to active lump-sum relief association membership under
140.33paragraph (b) and who qualifies for a service pension under paragraph (c) must have,
140.34upon a subsequent cessation of duties, any service pension for the resumption service
140.35period calculated as a separate benefit. If a lump-sum service pension had been paid to the
140.36firefighter upon the firefighter's previous cessation of duties, a second lump-sum service
141.1pension for the resumption service period must be calculated by applying the service
141.2pension amount in effect on the date of the firefighter's termination of the resumption
141.3service for all years of the resumption service.
141.4(f) A firefighter who had not been paid a lump-sum service pension returns to active
141.5relief association membership under paragraph (b), who did not meet the minimum period
141.6of resumption service requirement specified in the relief association's bylaws, but who
141.7does meet the minimum service requirement of section
424A.02, subdivision 2, based
141.8on the firefighter's original and resumption years of active service, must have, upon a
141.9subsequent cessation of duties, a service pension for the original and resumption service
141.10periods calculated by applying the service pension amount in effect on the date of the
141.11firefighter's termination of the resumption service, or, if the bylaws so provide, based on
141.12the service pension amount in effect on the date of the firefighter's previous cessation
141.13of duties. The service pension for a firefighter who returns to active lump-sum relief
141.14association membership under this paragraph, but who had met the minimum period
141.15of resumption service requirement specified in the relief association's bylaws, must be
141.16calculated by applying the service pension amount in effect on the date of the firefighter's
141.17termination of the resumption service.
141.18(g) If a firefighter receiving a monthly benefit service pension returns to active
141.19monthly benefit relief association membership under paragraph (b), and if the relief
141.20association bylaws do not allow for the firefighter to continue collecting a monthly service
141.21pension, any monthly benefit service pension payable to the firefighter is suspended as
141.22of the first day of the month next following the date on which the firefighter returns to
141.23active membership. If the firefighter was receiving a monthly benefit service pension,
141.24and qualifies for a service pension under paragraph (c), the firefighter is entitled to
141.25an additional monthly benefit service pension upon a subsequent cessation of duties
141.26calculated based on the resumption service credit and the service pension accrual amount
141.27in effect on the date of the termination of the resumption service. A suspended initial
141.28service pension resumes as of the first of the month next following the termination of the
141.29resumption service. If the firefighter was not receiving a monthly benefit service pension
141.30and meets the minimum service requirement of section
424A.02, subdivision 2, a service
141.31pension must be calculated by applying the service pension amount in effect on the date of
141.32the firefighter's termination of the resumption service for all years of service credit.
141.33(h) A firefighter who was not receiving a monthly benefit service pension returns to
141.34active relief association membership under paragraph (b), who did not meet the minimum
141.35period of resumption service requirement specified in the relief association's bylaws, but
141.36who does meet the minimum service requirement of section
424A.02, subdivision 2,
142.1based on the firefighter's original and resumption years of active service, must have,
142.2upon a subsequent cessation of duties, a service pension for the original and resumption
142.3service periods calculated by applying the service pension amount in effect on the date of
142.4the firefighter's termination of the resumption service, or, if the bylaws so provide, based
142.5on the service pension amount in effect on the date of the firefighter's previous cessation
142.6of duties. The service pension for a firefighter who returns to active relief association
142.7membership under this paragraph, but who had met the minimum period of resumption
142.8service requirement specified in the relief association's bylaws, must be calculated by
142.9applying the service pension amount in effect on the date of the firefighter's termination of
142.10the resumption service.
142.11(i) For defined contribution plans, a firefighter who returns to active relief
142.12association membership under paragraph (b) and who qualifies for a service pension
142.13under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service
142.14pension for the resumption service period calculated as a separate benefit. If a service
142.15pension had been paid to the firefighter upon the firefighter's previous cessation of duties,
142.16and if the firefighter meets the minimum service requirement of section
424A.016,
142.17subdivision 3, based on the resumption years of service, a second service pension for
142.18the resumption service period must be calculated to include allocations credited to the
142.19firefighter's individual account during the resumption period of service and deductions
142.20for administrative expenses, if applicable.
142.21(j) For defined contribution plans, if a firefighter who had not been paid a service
142.22pension returns to active relief association membership under paragraph (b), and who
142.23meets the minimum service requirement of section
424A.016, subdivision 3, based on
142.24the firefighter's original and resumption years of service, must have, upon a subsequent
142.25cessation of duties, a service pension for the original and resumption service periods
142.26calculated to include allocations credited to the firefighter's individual account during
142.27the
new text begin original and new text end resumption period
new text begin periods new text end of service and deductions for administrative
142.28expenses, if applicable, less any amounts previously forfeited under section
424A.016,
142.29subdivision 4
.
142.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
142.31 Sec. 6. Minnesota Statutes 2012, section 424A.015, subdivision 1, is amended to read:
142.32 Subdivision 1.
Separation from active service; exception. (a) No service pension
142.33is payable to a person while the person remains an active member of the respective fire
142.34department, and a person who is receiving a service pension is not entitled to receive any
142.35other benefits from the special fund of the relief association.
143.1(b) No relief association as defined in section
424A.001, subdivision 4, may pay a
143.2service pension or disability benefit to a former member of the relief association if that
143.3person has not separated from active service with the fire department to which the relief
143.4association is directly associated, unless:
143.5(1) the person is employed subsequent to retirement by
new text begin discontinues volunteer new text end
143.6
new text begin firefighter duties with new text end the municipality or the independent nonprofit firefighting
143.7corporation, whichever applies, to perform
new text begin and performs new text end duties within the municipal fire
143.8department or corporation on a full-time basis;
143.9(2) the governing body of the municipality or of the corporation has filed its
143.10determination with the board of trustees of the relief association that the person's
143.11experience with and service to the fire department in that person's full-time capacity
143.12would be difficult to replace; and
143.13(3) the bylaws of the relief association were amended to provide for the payment of
143.14a service pension or disability benefit for such full-time employees.
143.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
143.16 Sec. 7. Minnesota Statutes 2012, section 424A.015, subdivision 4, is amended to read:
143.17 Subd. 4.
Transfer to individual retirement account. A relief association that is a
143.18qualified pension plan under section 401(a) of the Internal Revenue Code, as amended,
143.19and that provides a single payment service pension, at the written request of the applicable
143.20retiring member or, following the death of the active member, at the written request of the
143.21deceased member's surviving spouse, may directly transfer on an institution-to-institution
143.22basis the eligible member's lump-sum pension or the death or survivor benefit attributable
143.23to the member, whichever applies, to the requesting person's individual retirement account
143.24under section 408(a) of the Internal Revenue Code, as amended.
143.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
143.26 Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 6, is amended to read:
143.27 Subd. 6.
Deferred service pensions. (a) A member of a relief association is entitled
143.28to a deferred service pension if the member:
143.29 (1) has completed the lesser of the minimum period of active service with the fire
143.30department specified in the bylaws or 20 years of active service with the fire department;
143.31 (2) has completed at least five years of active membership in the relief association; and
143.32 (3) separates from active service and membership
new text begin and has completed the minimum new text end
143.33
new text begin service and membership requirements in subdivision 2new text end . The requirement that a member
144.1separate from active service and membership is waived for persons who have discontinued
144.2their volunteer firefighter duties and who are employed on a full-time basis under section
144.3424A.015, subdivision 1
.
144.4 (b) The deferred service pension is payable when the former member reaches at
144.5least age 50, or at least the minimum age specified in the bylaws governing the relief
144.6association if that age is greater than age 50, and when the former member makes a valid
144.7written application.
144.8 (c) A defined contribution relief association may, if its governing bylaws so provide,
144.9credit interest or additional investment performance on the deferred lump-sum service
144.10pension during the period of deferral. If provided for in the bylaws, the interest must be
144.11paid:
144.12(1) at the investment performance rate actually earned on that portion of the assets
144.13if the deferred benefit amount is invested by the relief association in a separate account
144.14established and maintained by the relief association;
144.15(2) at the investment performance rate actually earned on that portion of the assets
144.16if the deferred benefit amount is invested in a separate investment vehicle held by the
144.17relief association; or
144.18(3) at the investment return on the assets of the special fund of the defined contribution
144.19volunteer firefighter relief association in proportion to the share of the assets of the special
144.20fund to the credit of each individual deferred member account through the accounting date
144.21on which the investment return is recognized by and credited to the special fund.
144.22 (d) Unless the bylaws of a relief association that has elected to pay interest or
144.23additional investment performance on deferred lump-sum service pensions under
144.24paragraph (c) specifies a different interest or additional investment performance method,
144.25including the interest or additional investment performance period starting date and ending
144.26date, the interest or additional investment performance on a deferred service pension
144.27is creditable as follows:
144.28(1) for a relief association that has elected to pay interest or additional investment
144.29performance under paragraph (c), clause (1) or (3), beginning on the date that the
144.30member separates from active service and membership and ending on the accounting
144.31date immediately before the deferred member commences receipt of the deferred service
144.32pension; or
144.33(2) for a relief association that has elected to pay interest or additional investment
144.34performance under paragraph (c), clause (2), beginning on the date that the member
144.35separates from active service and membership and ending on the date that the separate
145.1investment vehicle is valued immediately before the date on which the deferred member
145.2commences receipt of the deferred service pension.
145.3(e) The deferred service pension is governed by and must be calculated under
145.4the general statute, special law, relief association articles of incorporation, and relief
145.5association bylaw provisions applicable on the date on which the member separated from
145.6active service with the fire department and active membership in the relief association.
145.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
145.8 Sec. 9. Minnesota Statutes 2012, section 424A.02, subdivision 7, is amended to read:
145.9 Subd. 7.
Deferred service pensions. (a) A member of a defined benefit relief
145.10association is entitled to a deferred service pension if the member:
145.11 (1) has completed the lesser of either the minimum period of active service with the
145.12fire department specified in the bylaws or 20 years of active service with the fire department;
145.13 (2) has completed at least five years of active membership in the relief association; and
145.14 (3) separates from active service and membership
new text begin and has completed the minimum new text end
145.15
new text begin service and membership requirements in subdivision 1new text end . The requirement that a member
145.16separate from active service and membership is waived for persons who have discontinued
145.17their volunteer firefighter duties and who are employed on a full-time basis under section
145.18424A.015, subdivision 1
.
145.19 (b) The deferred service pension is payable when the former member reaches at
145.20least age 50, or at least the minimum age specified in the bylaws governing the relief
145.21association if that age is greater than age 50, and when the former member makes a valid
145.22written application.
145.23 (c) A defined benefit relief association that provides a lump-sum service pension
145.24governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
145.25deferred lump-sum service pension during the period of deferral. If provided for in the
145.26bylaws, interest must be paid in one of the following manners:
145.27 (1) at the investment performance rate actually earned on that portion of the assets
145.28if the deferred benefit amount is invested by the relief association in a separate account
145.29established and maintained by the relief association;
145.30(2) at the investment performance rate actually earned on that portion of the assets
145.31if the deferred benefit amount is invested in a separate investment vehicle held by the
145.32relief association; or
145.33 (3) at an interest rate of up to five percent, compounded annually, as set by the board
145.34of directors and approved as provided in subdivision 10
new text begin trusteesnew text end .
146.1
new text begin (d) Any change in the interest rate set by the board of directors under paragraph (c), new text end
146.2
new text begin clause (3), must be ratified by the governing body of the municipality served by the fire new text end
146.3
new text begin department to which the relief association is directly associated, or by the independent new text end
146.4
new text begin nonprofit firefighting corporation, as applicable.new text end
146.5 (d)
new text begin (e) new text end Interest under paragraph (c), clause (3), is payable
new text begin beginning on the January new text end
146.6
new text begin 1 next new text end following the date on which the municipality has approved the deferred service
146.7pension interest rate established
new text begin as set new text end by the board of trustees
new text begin was ratified by the governing new text end
146.8
new text begin body of the municipality served by the fire department to which the relief association is new text end
146.9
new text begin directly associated, or by the independent nonprofit firefighting corporation, as applicablenew text end .
146.10 (e)
new text begin (f) new text end Unless the bylaws of a relief association that has elected to pay interest
146.11or additional investment performance on deferred lump-sum service pensions under
146.12paragraph (c) specifies a different interest or additional investment performance method,
146.13including the interest or additional investment performance period starting date and ending
146.14date, the interest or additional investment performance on a deferred service pension
146.15is creditable as follows:
146.16(1) for a relief association that has elected to pay interest or additional investment
146.17performance under paragraph (c), clause (1) or (3), beginning on the
new text begin first day of the new text end
146.18
new text begin month next following the new text end date that
new text begin on which new text end the member separates from active service
146.19and membership and ending on the accounting date
new text begin last day of the month new text end immediately
146.20before the
new text begin month in which the new text end deferred member commences receipt of the deferred
146.21service pension; or
146.22(2) for a relief association that has elected to pay interest or additional investment
146.23performance under paragraph (c), clause (2), beginning on the date that the member
146.24separates from active service and membership and ending on the date that the separate
146.25investment vehicle is valued immediately before the date on which the deferred member
146.26commences receipt of the deferred service pension.
146.27(f)
new text begin (g) new text end For a deferred service pension that is transferred to a separate account
146.28established and maintained by the relief association or separate investment vehicle held
146.29by the relief association, the deferred member bears the full investment risk subsequent
146.30to transfer and in calculating the accrued liability of the volunteer firefighters relief
146.31association that pays a lump-sum service pension, the accrued liability for deferred service
146.32pensions is equal to the separate relief association account balance or the fair market value
146.33of the separate investment vehicle held by the relief association.
146.34 (g)
new text begin (h) new text end The deferred service pension is governed by and must be calculated under
146.35the general statute, special law, relief association articles of incorporation, and relief
147.1association bylaw provisions applicable on the date on which the member separated from
147.2active service with the fire department and active membership in the relief association.
147.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014, with respect to the new text end
147.4
new text begin amendments to paragraphs (c), (d), and (e), and is effective retroactively from January new text end
147.5
new text begin 1, 2013, with respect to the amendments to paragraph (f).new text end
147.6 Sec. 10. Minnesota Statutes 2012, section 424A.10, subdivision 1, is amended to read:
147.7 Subdivision 1.
Definitions. For purposes of this section:
147.8 (1) "qualified recipient" means an individual who receives a lump-sum distribution
147.9of pension or retirement benefits from a volunteer firefighters' relief association or from
147.10the voluntary statewide lump-sum volunteer firefighter retirement plan for service that the
147.11individual has performed as a volunteer firefighter;
147.12 (2) "survivor of a deceased active or deferred volunteer firefighter" means the
147.13surviving spouse of a deceased active or deferred volunteer firefighter under section
147.14
424A.001, subdivision 6, or, if none, the surviving child or children of a deceased active
147.15or deferred volunteer firefighter;
147.16 (3) "active volunteer firefighter" means a person who regularly renders fire
147.17suppression service for a municipal fire department or an independent nonprofit firefighting
147.18corporation, who has met the statutory and other requirements for relief association
147.19membership, and who is deemed by the relief association under law and its bylaws to be a
147.20fully qualified member of the relief association or from the voluntary statewide lump-sum
147.21volunteer firefighter retirement plan for at least one month; and
147.22 (4) "deferred volunteer firefighter" means a former active volunteer firefighter who
147.23terminated active firefighting service, has sufficient service credit from the applicable relief
147.24association or from the voluntary statewide lump-sum volunteer firefighter retirement plan
147.25to be entitled to a service pension under the bylaws of the relief association, but has not
147.26applied for or has not received the service pension.
147.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
147.28 Sec. 11. Minnesota Statutes 2012, section 424A.10, subdivision 2, is amended to read:
147.29 Subd. 2.
Payment of supplemental benefit. (a) Upon the payment by a volunteer
147.30firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
147.31retirement plan of a lump-sum distribution to a qualified recipient, the association must
147.32pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
147.33contrary, the relief association must pay the supplemental benefit out of its special fund
148.1and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
148.2the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
148.3retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
148.4distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
148.5In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
148.6benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
148.7volunteer firefighter in that capacity.
148.8 (b) Upon the payment by a relief association or the retirement plan of a lump-sum
148.9survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
148.10deferred volunteer firefighter, the association may
new text begin must new text end pay a supplemental survivor
148.11benefit to the survivor of the deceased active or deferred volunteer firefighter from the
148.12special fund of the relief association if its articles of incorporation or bylaws so provide
148.13 and the retirement plan may
new text begin must new text end pay a supplemental survivor benefit to the survivor of
148.14the deceased active or deferred volunteer firefighter from the retirement fund if chapter
148.15353G so provides. The amount of the supplemental survivor benefit is 20 percent of the
148.16survivor benefit, but not to exceed $2,000.
148.17 (c) An individual may receive a supplemental benefit under paragraph (a) or under
148.18paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
148.19firefighter benefit.
148.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
148.21 Sec. 12.
new text begin WHITE BEAR LAKE VOLUNTEER FIRE DEPARTMENT RELIEF new text end
148.22
new text begin ASSOCIATION; RETIREE DEATH BENEFIT.new text end
148.23
new text begin Notwithstanding any provision of Minnesota Statutes, section 424A.05, subdivision new text end
148.24
new text begin 3, clause (4), to the contrary, the White Bear Lake Volunteer Fire Department Relief new text end
148.25
new text begin Association may provide, if its bylaws so provide, for the payment of a $2,000 lump sum new text end
148.26
new text begin death benefit from the special fund of the relief association to the estate of a person who new text end
148.27
new text begin was a member of the relief association, who rendered at least 20 years of firefighting new text end
148.28
new text begin service in the fire department and membership in the relief association, who retired new text end
148.29
new text begin before January 1, 2009, who received a monthly benefit service pension from the relief new text end
148.30
new text begin association for the month in which this section became effective, and who died after the new text end
148.31
new text begin effective date of the bylaw amendment that implements the authority under this section.new text end
148.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
148.33
new text begin the city of White Bear Lake and its chief clerical officer timely complete their compliance new text end
148.34
new text begin with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
149.1 Sec. 13.
new text begin REPEALER.new text end
149.2
new text begin Minnesota Statutes 2012, section 424A.10, subdivision 5,new text end new text begin is repealed.new text end
149.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
149.4
ARTICLE 7
149.5
ONE PERSON AND SMALL GROUP RETIREMENT CHANGES
149.6 Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:
149.7 Subd. 2a.
Included employees. (a) "State employee" includes:
149.8 (1) employees of the Minnesota Historical Society;
149.9 (2) employees of the State Horticultural Society;
149.10 (3) employees of the Minnesota Crop Improvement Association;
149.11 (4) employees of the adjutant general whose salaries are paid from federal funds and
149.12who are not covered by any federal civilian employees retirement system;
149.13 (5) employees of the Minnesota State Colleges and Universities who are employed
149.14under the university or college activities program;
149.15 (6) currently contributing employees covered by the system who are temporarily
149.16employed by the legislature during a legislative session or any currently contributing
149.17employee employed for any special service as defined in subdivision 2b, clause (8);
149.18 (7) employees of the legislature who are appointed without a limit on the duration
149.19of their employment and persons employed or designated by the legislature or by a
149.20legislative committee or commission or other competent authority to conduct a special
149.21inquiry, investigation, examination, or installation;
149.22 (8) trainees who are employed on a full-time established training program
149.23performing the duties of the classified position for which they will be eligible to receive
149.24immediate appointment at the completion of the training period;
149.25 (9) employees of the Minnesota Safety Council;
149.26 (10) any employees who are on authorized leave of absence from the Transit
149.27Operating Division of the former Metropolitan Transit Commission and who are employed
149.28by the labor organization which is the exclusive bargaining agent representing employees
149.29of the Transit Operating Division;
149.30 (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
149.31Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
149.32Control Commission unless excluded under subdivision 2b or are covered by another
149.33public pension fund or plan under section
473.415, subdivision 3;
149.34 (12) judges of the Tax Court;
150.1 (13) personnel who were employed on June 30, 1992, by the University of
150.2Minnesota in the management, operation, or maintenance of its heating plant facilities,
150.3whose employment transfers to an employer assuming operation of the heating plant
150.4facilities, so long as the person is employed at the University of Minnesota heating plant
150.5by that employer or by its successor organization;
150.6 (14) personnel who are employed as seasonal employees in the classified or
150.7unclassified service;
150.8 (15) persons who are employed by the Department of Commerce as a peace officer
150.9in the Insurance Fraud Prevention Division under section
45.0135 who have attained the
150.10mandatory retirement age specified in section
43A.34, subdivision 4;
150.11 (16) employees of the University of Minnesota unless excluded under subdivision
150.122b, clause (3);
150.13 (17) employees of the Middle Management Association whose employment began
150.14after July 1, 2007, and to whom section
352.029 does not apply;
150.15 (18) employees of the Minnesota Government Engineers Council to whom section
150.16352.029
does not apply; and
150.17(19) employees of the Minnesota Sports Facilities Authority.
new text begin ; andnew text end
150.18
new text begin (20) employees of the Minnesota Association of Professional Employees.new text end
150.19 (b) Employees specified in paragraph (a), clause (13), are included employees under
150.20paragraph (a) if employer and employee contributions are made in a timely manner in the
150.21amounts required by section
352.04. Employee contributions must be deducted from
150.22salary. Employer contributions are the sole obligation of the employer assuming operation
150.23of the University of Minnesota heating plant facilities or any successor organizations to
150.24that employer.
150.25
new text begin EFFECTIVE DATE.new text end new text begin (a) This section is effective July 1, 2013.new text end
150.26
new text begin (b) The membership inclusion under paragraph (a), clause (20), does not apply to new text end
150.27
new text begin a person who is receiving an age and service retirement annuity from the general state new text end
150.28
new text begin employees retirement plan of the Minnesota State Retirement System on June 30, 2013.new text end
150.29 Sec. 2. Minnesota Statutes 2012, section 352.029, subdivision 1, is amended to read:
150.30 Subdivision 1.
Qualifications. Unless
new text begin already specifically included under section new text end
150.31
new text begin 352.01, subdivision 2a, or unless new text end specifically excluded under section
352.01, subdivision
150.322b
, a state employee on leave of absence without pay to provide service as an employee
150.33or officer of a labor organization that is an exclusive bargaining agent representing state
150.34employees may elect under subdivision 2 to be covered by the general state employees
151.1retirement plan of the Minnesota State Retirement System for service with the labor
151.2organization, subject to the limitations set forth in subdivisions 2a and 2b.
151.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
151.4 Sec. 3. Minnesota Statutes 2012, section 352.029, subdivision 2a, is amended to read:
151.5 Subd. 2a.
Limitations on salary for benefits and contributions. (a) The covered
151.6salary for a labor organization employee who
new text begin is a member under section 352.01, new text end
151.7
new text begin subdivision 2a, paragraph (a), or who new text end qualifies for membership under this section or
151.8section
352.75 is limited to the lesser of:
151.9(1) the employee's actual salary as defined under section
352.01, subdivision 13; or
151.10(2) 75 percent of the salary of the governor as set under section
15A.082.
151.11(b) The limited covered salary determined under this subdivision must be used in
151.12determining employee, employer, and employer additional contributions under section
151.13352.04
, subdivisions 2 and 3, and in determining retirement annuities and other benefits
151.14under this chapter and chapter 356.
151.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
151.16 Sec. 4. Minnesota Statutes 2012, section 352.029, subdivision 2b, is amended to read:
151.17 Subd. 2b.
Earning restrictions apply. A retirement annuity is only payable, if the
151.18person has met any other applicable requirements, upon the termination
new text begin of employment by new text end
151.19
new text begin the labor organization new text end by the person who
new text begin is a member under section 352.01, subdivision new text end
151.20
new text begin 2a, paragraph (a), or who new text end elected coverage under subdivision 1 of employment by the
151.21labor organization. The reemployed annuitant earnings limitation set forth in section
151.22352.115, subdivision 10
, applies in the event that the person who
new text begin is a member under new text end
151.23
new text begin section 352.01, subdivision 2a, paragraph (a), or who new text end elected coverage under subdivision
151.241 retires and is subsequently reemployed while an annuitant by the labor organization or
151.25by any other entity employing persons who are covered by the Minnesota State Retirement
151.26System by virtue of that employment.
151.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
151.28 Sec. 5. Minnesota Statutes 2012, section 352.029, subdivision 3, is amended to read:
151.29 Subd. 3.
Contributions. The employee and employer contributions required
151.30by section
352.04, or by section
352.92 for employees covered by section
352.91, are
151.31the obligation of the employee who
new text begin is a member under section 352.01, subdivision 2a, new text end
151.32
new text begin paragraph (a), or who new text end chooses coverage under this section. However, the employing
152.1labor organization may pay the employer contributions. Contributions made by the
152.2employee must be made by salary deduction. The employing labor organization shall
152.3pay all contributions to the system as required by section
352.04, or by section
352.92
152.4for employees covered by section
352.91.
152.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
152.6 Sec. 6. Minnesota Statutes 2012, section 352.029, subdivision 5, is amended to read:
152.7 Subd. 5.
Board membership excluded. Employees of a labor organization who
152.8become members of the system
new text begin under section 352.01, subdivision 2a, paragraph (a), or new text end
152.9under this section are not eligible for election to the board of directors.
152.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
152.11 Sec. 7.
new text begin [356.408] TERMINATION OF SURVIVOR DESIGNATION.new text end
152.12
new text begin Subdivision 1.new text end new text begin Authorization to terminate optional annuity form.new text end new text begin A public new text end
152.13
new text begin pension plan retired member receiving a joint and survivor retirement annuity or a person new text end
152.14
new text begin receiving a joint and survivor disability benefit from a plan listed in section 356.30, new text end
152.15
new text begin subdivision 3, and the designated survivor of that person may mutually agree to terminate new text end
152.16
new text begin the survivor designation by filing a termination statement on a form and in the manner new text end
152.17
new text begin specified by the chief administrative officer of the applicable public pension plan. Upon new text end
152.18
new text begin filing a valid termination statement accepted by the chief administrative officer, the rights new text end
152.19
new text begin of the designated survivor to receive a benefit upon death of the plan retired or disabled new text end
152.20
new text begin annuitant are terminated, and the retired or disabled annuitant must receive a normal new text end
152.21
new text begin single-life annuity. new text end
152.22
new text begin Subd. 2.new text end new text begin Revised annuity form.new text end new text begin The replacement single life annuity must be new text end
152.23
new text begin actuarially equivalent to the joint and survivor annuity as of the first day of the month new text end
152.24
new text begin following acceptance of the valid termination statement by the chief administrative officer new text end
152.25
new text begin and payment of this revised prospective annuity begins on that same date.new text end
152.26
new text begin Subd. 3.new text end new text begin Application.new text end new text begin This section does not apply if the designated survivor is the new text end
152.27
new text begin spouse or former spouse of the plan member.new text end
152.28
new text begin Subd. 4.new text end new text begin Termination statement form requirements.new text end new text begin The annuity form new text end
152.29
new text begin termination statements must be in written form and must be notarized. Before accepting new text end
152.30
new text begin any signed form or forms, the chief administrative officer of the applicable pension plan new text end
152.31
new text begin must offer counseling to the retired or disabled annuitant and the designated survivor new text end
152.32
new text begin regarding the implications of the annuity form waiver. The forms must indicate that this new text end
153.1
new text begin counseling has been offered and either has been completed or has been waived by the new text end
153.2
new text begin retired or disabled annuitant and the designated survivor.new text end
153.3
new text begin Subd. 5.new text end new text begin Prohibition against further annuity form revisions.new text end new text begin No retired or new text end
153.4
new text begin disabled annuitant who waives the annuity form under this section may further revise new text end
153.5
new text begin the annuity form at any later date.new text end
153.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
153.7 Sec. 8. Minnesota Statutes 2012, section 356.48, subdivision 1, is amended to read:
153.8 Subdivision 1.
Covered plans. This section applies to the following retirement plans:
153.9(1) the general state employees retirement plan of the Minnesota State Retirement
153.10System established under chapter 352;
153.11(2) the correctional state employees retirement plan of the Minnesota State
153.12Retirement System established under chapter 352;
153.13(3) the State Patrol retirement plan established under chapter 352B;
153.14(4) the unclassified state employees retirement program of the Minnesota State
153.15Retirement System established under chapter 352D;
153.16(5) the general employee retirement plan of the Public Employees Retirement
153.17Association established under chapter 353;
153.18(6) the public employees police and fire retirement plan established under chapter 353;
153.19(7) the local government correctional employees retirement plan of the Public
153.20Employees Retirement Association established under chapter 353E;
153.21(8) the Teachers Retirement Association established under chapter 354; and
153.22
new text begin (9) the St. Paul Teachers Retirement Fund Association established under chapter new text end
153.23
new text begin 354A; andnew text end
153.24(9)
new text begin (10) new text end the uniform judicial retirement plan established under chapter 490.
153.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
153.26 Sec. 9.
new text begin MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION; new text end
153.27
new text begin SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.new text end
153.28
new text begin (a) An eligible person described in paragraph (b) is entitled to purchase prior new text end
153.29
new text begin uncredited service credit under paragraph (c) and, if the service credit purchase is made, to new text end
153.30
new text begin have the effective start date for active retirement plan membership of June 30, 1989, and new text end
153.31
new text begin to retire under Minnesota Statutes, section 352.116, subdivision 1.new text end
153.32
new text begin (b) An eligible person is a person who:new text end
153.33
new text begin (1) was born on July 17, 1964;new text end
154.1
new text begin (2) was initially employed by the state of Minnesota as a temporary status laborer new text end
154.2
new text begin general on June 19, 1989;new text end
154.3
new text begin (3) became a seasonal status laborer general on August 30, 1989;new text end
154.4
new text begin (4) became an unlimited status laborer general on December 12, 1990;new text end
154.5
new text begin (5) has received annual statements from the Minnesota State Retirement System new text end
154.6
new text begin indicating eligibility for a retirement benefit under Minnesota Statutes, section 352.116, new text end
154.7
new text begin subdivision 1, paragraph (b), as of September 1, 2012, including the June 30, 2012, annual new text end
154.8
new text begin statement;new text end
154.9
new text begin (6) attended a Minnesota State Retirement System preretirement class in March new text end
154.10
new text begin 2012 and was individually informed by a Minnesota State Retirement System employee of new text end
154.11
new text begin the person's retirement eligibility under Minnesota Statutes, section 352.116, subdivision new text end
154.12
new text begin 1, paragraph (b); andnew text end
154.13
new text begin (7) received a letter from the Minnesota State Retirement System on August 16, new text end
154.14
new text begin 2012, revising the start date for general state employees retirement plan allowable new text end
154.15
new text begin service credit from June 19, 1989, to September 27, 1989, and indicating consequent new text end
154.16
new text begin inapplicability of Minnesota Statutes, section 352.116, subdivision 1.new text end
154.17
new text begin (c) An eligible person may purchase allowable service credit in the general state new text end
154.18
new text begin employees retirement plan of the Minnesota State Retirement System for the period June new text end
154.19
new text begin 30, 1989, by paying an amount equal to 7.63 percent of salary earned after June 18, 1989, new text end
154.20
new text begin to June 30, 1989, and to 8.85 percent of salary earned after June 30, 1989, to September 27, new text end
154.21
new text begin 1989, plus 8.5 percent compound interest on the total equivalent employee and employer new text end
154.22
new text begin contribution amounts from the date on which the contribution would have been deducted new text end
154.23
new text begin or paid if the person had been a member of the general state employees retirement plan of new text end
154.24
new text begin the Minnesota State Retirement System at the time to the date that this portion of the prior new text end
154.25
new text begin service credit purchase payment is made. The payment must be made in a lump sum.new text end
154.26
new text begin (d) An eligible person who purchased allowable service credit under paragraph new text end
154.27
new text begin (c) has a June 30, 1989, start date for allowable service credited by the general state new text end
154.28
new text begin employees retirement plan of the Minnesota State Retirement System and is eligible for a new text end
154.29
new text begin retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.new text end
154.30
new text begin (e) Authority to purchase prior uncredited allowable service credit under this section new text end
154.31
new text begin expires on August 1, 2013.new text end
154.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
154.33 Sec. 10.
new text begin PERA-GENERAL; PURCHASE OF CERTAIN PRIOR NORTHFIELD new text end
154.34
new text begin SERVICE CREDIT.new text end
155.1
new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the new text end
155.2
new text begin contrary, an eligible person described in paragraph (b) is entitled to repay any prior refund new text end
155.3
new text begin as provided in paragraph (c) and is entitled to purchase service credit as provided in new text end
155.4
new text begin paragraph (d).new text end
155.5
new text begin (b) An eligible person is a person who:new text end
155.6
new text begin (1) was born on July 10, 1942;new text end
155.7
new text begin (2) was employed by the city of Northfield on October 5, 2005;new text end
155.8
new text begin (3) became a member of the general employees retirement plan of the Public new text end
155.9
new text begin Employees Retirement Association on April 5, 2009;new text end
155.10
new text begin (4) was employed by the transit division of the city of Northfield until June 29, new text end
155.11
new text begin 2012; andnew text end
155.12
new text begin (5) was eligible for PERA general employees retirement plan membership on new text end
155.13
new text begin October 5, 2005, but was not reported to PERA for membership in a timely fashion.new text end
155.14
new text begin (c) The eligible person may repay to the general employees retirement fund of new text end
155.15
new text begin the Public Employees Retirement Association any refund of accumulated member new text end
155.16
new text begin contributions and interest previously received, plus interest at an annual rate of 8.5 percent new text end
155.17
new text begin compounded annually from the date on which the refund was paid until the date on which new text end
155.18
new text begin the refund is repaid.new text end
155.19
new text begin (d) If the eligible person repays all prior refunds under paragraph (c), the eligible new text end
155.20
new text begin person may purchase 43 months of allowable service credit and salary credit from the new text end
155.21
new text begin general employees retirement plan of the Public Employees Retirement Association by new text end
155.22
new text begin making a payment equal to the unpaid member contributions during the period October 5, new text end
155.23
new text begin 2005, until April 5, 2009, plus 8.5 percent interest from the date that each contribution new text end
155.24
new text begin would have been transmitted to the Public Employees Retirement Association until the new text end
155.25
new text begin date that the payment under this paragraph is made.new text end
155.26
new text begin (e) If the eligible person makes the payment required under paragraph (c) in a timely new text end
155.27
new text begin fashion, within 30 days following notification of that fact by the executive director of the new text end
155.28
new text begin Public Employees Retirement Association, the city of Northfield shall pay the balance new text end
155.29
new text begin of the prior service credit purchase payment amount required under Minnesota Statutes, new text end
155.30
new text begin section 356.551. If the payment by the city of Northfield is not paid in a timely fashion, new text end
155.31
new text begin the executive director shall collect the unpaid amount as provided under Minnesota new text end
155.32
new text begin Statutes, section 353.28, subdivision 6.new text end
155.33
new text begin (f) Authority to repay a refund and to make a prior service credit purchase payment new text end
155.34
new text begin under this section expires on December 31, 2014.new text end
155.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
156.1 Sec. 11.
new text begin PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED new text end
156.2
new text begin CONTRIBUTION PERIOD; WRIGHT COUNTY HIGHWAY DEPARTMENT new text end
156.3
new text begin EMPLOYEE.new text end
156.4
new text begin (a) Notwithstanding any provision of law to the contrary, an eligible person new text end
156.5
new text begin described in paragraph (b) is entitled to purchase from the general employees retirement new text end
156.6
new text begin plan of the Public Employees Retirement Association allowable service credit under new text end
156.7
new text begin Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member new text end
156.8
new text begin deductions described in paragraph (c).new text end
156.9
new text begin (b) An eligible person is a person who:new text end
156.10
new text begin (1) was born on March 19, 1959;new text end
156.11
new text begin (2) is a current employee of the Wright County Highway Department, covered by new text end
156.12
new text begin the general employees retirement plan of the Public Employees Retirement Association;new text end
156.13
new text begin (3) shifted from temporary to full-time employment with the highway department new text end
156.14
new text begin in April 2007; andnew text end
156.15
new text begin (4) was not reported by Wright County for retirement coverage by and membership new text end
156.16
new text begin in the general employees retirement plan of the Public Employees Retirement Association new text end
156.17
new text begin until March 2012.new text end
156.18
new text begin (c) The period of uncredited service authorized for purchase is the period from new text end
156.19
new text begin April 2007 through December 2008, during which no member contributions for the new text end
156.20
new text begin general employees retirement plan of the Public Employees Retirement Association were new text end
156.21
new text begin deducted from the eligible person's salary by Wright County, and which could not be new text end
156.22
new text begin corrected through the Public Employees Retirement Association omitted contribution new text end
156.23
new text begin provision due to a three-year time limit in the provision.new text end
156.24
new text begin (d) Minnesota Statutes, section 356.551, applies to this purchase, except that the new text end
156.25
new text begin purchase payment amount payable by the eligible person is the employee contributions new text end
156.26
new text begin that should have been made, plus 8.5 percent interest compounded annually from the new text end
156.27
new text begin date each deduction should have occurred, until the date paid to the Public Employees new text end
156.28
new text begin Retirement Association. The purchase payment amount payable by Wright County is the new text end
156.29
new text begin balance of the full actuarial value prior service credit purchase payment amount as of the new text end
156.30
new text begin first day of the month next following the receipt of the eligible person's payment that is new text end
156.31
new text begin remaining after deducting the purchase payment amount payable by the eligible person.new text end
156.32
new text begin (e) The payment amount due from the county under paragraph (d) must be made on new text end
156.33
new text begin or before the 15th of the month next following the receipt of the eligible person's payment new text end
156.34
new text begin under paragraph (d). If the county purchase payment amount is not paid in a timely new text end
156.35
new text begin fashion, the amount due accrues compound monthly interest at the rate of 0.71 percent per new text end
156.36
new text begin month from the first day of the month next following the receipt of the eligible person's new text end
157.1
new text begin payment until the county purchase payment amount is received by the Public Employees new text end
157.2
new text begin Retirement Association. If the county purchase payment amount is not paid to the Public new text end
157.3
new text begin Employees Retirement Association 90 days after the receipt of the eligible person's new text end
157.4
new text begin payment, the executive director shall notify the commissioner of management and budget new text end
157.5
new text begin and the commissioner of revenue of that unpaid obligation and the unpaid obligation must new text end
157.6
new text begin be deducted from any state aid otherwise payable to the county, plus interest.new text end
157.7
new text begin (f) The eligible person must provide the executive director of the Public Employees new text end
157.8
new text begin Retirement Association with any relevant requested information pertaining to this service new text end
157.9
new text begin credit purchase.new text end
157.10
new text begin (g) Authority to make a service credit purchase under this section expires on June new text end
157.11
new text begin 30, 2014, or upon the termination from public employment under Minnesota Statutes, new text end
157.12
new text begin section 353.01, subdivision 11a, whichever occurs earlier.new text end
157.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
157.14
ARTICLE 8
157.15
MISCELLANEOUS PROVISIONS
157.16 Section 1.
new text begin [6.496] VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS; new text end
157.17
new text begin STATE BOARD OF INVESTMENT OPTIONS.new text end
157.18
new text begin (a) Annually, on or before March 1, the state auditor shall provide all volunteer new text end
157.19
new text begin firefighter relief associations with recent and historic investment performance results of new text end
157.20
new text begin the various accounts of the Minnesota supplemental investment fund and information new text end
157.21
new text begin on the process and procedures for a volunteer firefighter relief association to utilize the new text end
157.22
new text begin Minnesota supplemental investment fund as an investment option.new text end
157.23
new text begin (b) Annually, on or before March 1, the state auditor shall provide all volunteer new text end
157.24
new text begin firefighter relief associations with basic information on the voluntary statewide lump-sum new text end
157.25
new text begin volunteer firefighter retirement plan, that a fire department has the option annually to join new text end
157.26
new text begin the retirement plan, and that, if the fire department joins the retirement plan, future asset new text end
157.27
new text begin investments would be the responsibility of the State Board of Investment.new text end
157.28
new text begin (c) The information provision required by paragraphs (a) and (b) may be provided in new text end
157.29
new text begin an electronic or other format if the state auditor determines that the format is reasonably new text end
157.30
new text begin accessible by a preponderance of volunteer firefighter relief associations.new text end
157.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
157.32 Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 4, is amended to read:
157.33 Subd. 4.
Duties and powers of board of directors. (a) The board shall:
158.1 (1) elect a chair;
158.2 (2) appoint an executive director;
158.3 (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D,
158.4and 490 and transact the business of the system, subject to the limitations of law;
158.5 (4) consider and dispose of, or take any other action the board of directors deems
158.6appropriate concerning, denials of applications for annuities or disability benefits under
158.7this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and
158.8others pertaining to the retirement of employees and the operation of the system;
158.9 (5) oversee the administration of the deferred compensation plan established in
158.10section
352.965; and
158.11 (6) oversee the administration of the health care savings plan established in section
158.12.
new text begin ; andnew text end
158.13
new text begin (7) approve early retirement and optional annuity factors, subject to review by the new text end
158.14
new text begin actuary retained by the Legislative Commission on Pensions and Retirement; establish new text end
158.15
new text begin the schedule for implementation of the approved factors; and notify the Legislative new text end
158.16
new text begin Commission on Pensions and Retirement of the implementation schedule.new text end
158.17 (b) The board shall advise the director on any matters relating to the system and
158.18carrying out functions and purposes of this chapter. The board's advice shall control.
158.19 Sec. 3. Minnesota Statutes 2012, section 353.03, subdivision 3, is amended to read:
158.20 Subd. 3.
Duties and powers. (a) The board shall:
158.21 (1) elect a president and vice-president;
158.22 (2) approve the staffing complement, as recommended by the executive director,
158.23necessary to administer the fund;
158.24 (3) adopt bylaws for its own government and for the management of the fund
158.25consistent with the laws of the state and may modify them at pleasure;
158.26 (4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and
158.27the terms of the applicable benefit plans for the administration and management of the
158.28fund, for the payment and collection of payments from members and for the payment of
158.29withdrawals and benefits, and that are necessary in order to comply with the applicable
158.30federal Internal Revenue Service and Department of Labor requirements;
158.31 (5) pass upon and allow or disallow all applications for membership in the fund and
158.32allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
158.33 (6) adopt an appropriate mortality table based on experience of the fund as
158.34recommended by the association actuary and approved under section
356.215, subdivision
158.3518
, with interest set at the rate specified in section
356.215, subdivision 8;
159.1 (7) provide for the payment out of the fund of the cost of administering this
159.2chapter, of all necessary expenses for the administration of the fund and of all claims for
159.3withdrawals, pensions, or benefits allowed; and
159.4 (8) approve or disapprove all recommendations and actions of the executive director
159.5made subject to its approval or disapproval by subdivision 3a.
new text begin ; andnew text end
159.6
new text begin (9) approve early retirement and optional annuity factors, subject to review by the new text end
159.7
new text begin actuary retained by the Legislative Commission on Pensions and Retirement; establish new text end
159.8
new text begin the schedule for implementation of the approved factors; and notify the Legislative new text end
159.9
new text begin Commission on Pensions and Retirement of the implementation schedule.new text end
159.10 (b) In passing upon all applications and claims, the board may summon, swear, hear,
159.11and examine witnesses and, in the case of claims for disability benefits, may require the
159.12claimant to submit to a medical examination by a physician of the board's choice, at the
159.13expense of the fund, as a condition precedent to the passing on the claim, and, in the
159.14case of all applications and claims, may conduct investigations necessary to determine
159.15their validity and merit.
159.16 (c) The board may continue to authorize the sale of life insurance to members under
159.17the insurance program in effect on January 1, 1985, but must not change that program
159.18without the approval of the commissioner of management and budget. The association
159.19shall not receive any financial benefit from the life insurance program beyond the amount
159.20necessary to reimburse the association for costs incurred in administering the program.
159.21The association shall not engage directly or indirectly in any other activity involving the
159.22sale or promotion of goods or services, or both, whether to members or nonmembers.
159.23 (d) The board shall establish procedures governing reimbursement of expenses
159.24to board members. These procedures must define the types of activities and expenses
159.25that qualify for reimbursement, must provide that all out-of-state travel be authorized
159.26by the board, and must provide for the independent verification of claims for expense
159.27reimbursement. The procedures must comply with the applicable rules and policies of the
159.28Department of Management and Budget and the Department of Administration.
159.29 (e) The board may purchase fiduciary liability insurance and official bonds for the
159.30officers and members of the board of trustees and employees of the association and may
159.31purchase property insurance or may establish a self-insurance risk reserve including, but
159.32not limited to, data processing insurance and "extra-expense" coverage.
159.33 Sec. 4. Minnesota Statutes 2012, section 354.07, subdivision 1, is amended to read:
159.34 Subdivision 1.
General powers of board. The board has the power to frame bylaws
159.35for its own government and for the management of the association not inconsistent with
160.1the laws of the state and to modify them at its pleasure; to adopt, alter, and enforce
160.2reasonable rules not inconsistent with the laws of the state for the administration and
160.3management of the association, for the payment and collection of payments from
160.4members, and for the payment of withdrawals and benefits; to pass upon and allow or
160.5disallow applications for membership in the association and for credit for teaching service;
160.6to pass upon and allow or disallow claims for withdrawals, pensions, or benefits payable
160.7by the fund; to adopt an appropriate mortality table based on experience of the association
160.8as recommended by the actuary retained under section
356.214 and using the applicable
160.9postretirement interest assumption specified in section
356.215, subdivision 8;
new text begin to approve new text end
160.10
new text begin early retirement and optional annuity factors, subject to review by the actuary retained by new text end
160.11
new text begin the Legislative Commission on Pensions and Retirement; to establish the schedule for new text end
160.12
new text begin implementation of the approved factors; to notify the Legislative Commission on Pensions new text end
160.13
new text begin and Retirement of the implementation schedule; and new text end to provide for the payment out of
160.14the fund of necessary expenses for the administration by the association and of claims for
160.15withdrawals, pensions, or benefits allowed.
160.16 Sec. 5. Minnesota Statutes 2012, section 354A.021, subdivision 2, is amended to read:
160.17 Subd. 2.
Organizationnew text begin ; board dutiesnew text end . new text begin (a) new text end Each teachers retirement fund association
160.18shall be organized and governed pursuant to this chapter and chapter 317A, except that
160.19each association shall be deemed to be a nonprofit corporation without coming within
160.20the definition in section
317A.011, subdivision 6. Any corporate action of any teachers
160.21retirement fund association taken prior to April 9, 1976, shall be deemed to be valid if it
160.22conformed with Minnesota Statutes 1976, chapter 317 or 354A, or Revised Laws 1905,
160.23chapter 58, as amended through April 9, 1976.
160.24
new text begin (b) In addition to the other powers and duties of a board of trustees of a first class new text end
160.25
new text begin city teacher retirement fund association, the board shall approve early retirement and new text end
160.26
new text begin optional annuity factors, subject to review by the actuary retained by the Legislative new text end
160.27
new text begin Commission on Pensions and Retirement; shall establish the schedule for implementation new text end
160.28
new text begin of the approved factors; and shall notify the Legislative Commission on Pensions and new text end
160.29
new text begin Retirement of the implementation schedule.new text end
160.30
ARTICLE 9
160.31
STATE PATROL RETIREMENT PLAN FINANCIAL SOLVENCY MEASURES
160.32 Section 1. Minnesota Statutes 2012, section 352B.011, subdivision 4, is amended to
160.33read:
161.1 Subd. 4.
Average monthly salary. (a) Subject to the limitations of section
356.611,
161.2"average monthly salary" means the average of the highest monthly salaries for five years
161.3of service as a member upon which contributions were deducted from pay under section
161.4352B.02
, or upon which appropriate contributions or payments were made to the fund to
161.5receive allowable service and salary credit as specified under the applicable law. Average
161.6monthly salary must be based upon all allowable service if this service is less than five years.
161.7(b) The salary used for the calculation of "average monthly salary" means the salary
161.8of the member as defined in section
352.01, subdivision 13.
new text begin "Average monthly salary" new text end
161.9
new text begin includes the salary of the member during the period of covered employment rendered after new text end
161.10
new text begin reaching the allowable service credit limit of section 352B.08, subdivision 2, paragraph new text end
161.11
new text begin (b). new text end The salary used for the calculation of "average monthly salary" does not include any
161.12lump-sum annual leave payments and overtime payments made at the time of separation
161.13from state service, any amounts of severance pay, or any reduced salary paid during the
161.14period the person is entitled to workers' compensation benefit payments for temporary
161.15disability.
161.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
161.17 Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to read:
161.18 Subd. 1a.
Member contributions. (a) The member contribution is the following
161.19percentage of the member's salary:
161.20
161.21
(1) before the first day of the first pay period beginning
after July 1, 2011new text begin 2014new text end
10.40 new text begin 12.4 new text end percent
161.22
161.23
(2) on or after the first day of the first pay period
beginning after July 1, 2011new text begin 2014, to June 30, 2016new text end
12.40 new text begin 13.4 new text end percent
161.24
new text begin (3) after June 30, 2016new text end
new text begin 14.4 percentnew text end
161.25(b) These contributions must be made by deduction from salary as provided in
161.26section
352.04, subdivision 4.
161.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
161.28 Sec. 3. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:
161.29 Subd. 1c.
Employer contributions. (a) In addition to member contributions,
161.30department heads shall pay a sum equal to the specified percentage of the salary upon which
161.31deductions were made, which constitutes the employer contribution to the fund as follows:
162.1
162.2
(1) before the first day of the first pay period beginning
after July 1, 2011new text begin 2014new text end
15.60 new text begin 18.6 new text end percent
162.3
162.4
(2) on or after the first day of the first pay period
beginning after July 1, 2011new text begin 2014, to June 30, 2016new text end
18.60 new text begin 20.1 new text end percent
162.5
new text begin (3) after June 30, 2016new text end
new text begin 21.6 percentnew text end
162.6(b) Department contributions must be paid out of money appropriated to departments
162.7for this purpose.
162.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
162.9 Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:
162.10 Subdivision 1.
Eligibility; when to apply; accrual. (a) Every member who is
162.11credited with three or more years of allowable service if first employed before July 1, 2010
162.12
new text begin 2013new text end , or with at least five
new text begin ten new text end years of allowable service if first employed after June 30,
162.132010
new text begin 2013new text end , is entitled to separate from state service and upon becoming 50 years old, is
162.14entitled to receive a life annuity, upon separation from state service.
162.15(b) Members must apply for an annuity in a form and manner prescribed by the
162.16executive director.
162.17(c) No application may be made more than 90 days before the date the member is
162.18eligible to retire by reason of both age and service requirements.
162.19(d) An annuity begins to accrue no earlier than 180 days before the date the
162.20application is filed with the executive director.
162.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
162.22 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
162.23 Subd. 2.
Normal retirement annuity. new text begin (a) new text end The annuity must be paid in monthly
162.24installments. The annuity shall be equal to the amount determined by multiplying
162.25the average monthly salary of the member by the percent specified in section
356.315,
162.26subdivision 6
, for each year
new text begin of allowable service new text end and pro rata
new text begin prorated new text end for
new text begin additional new text end
162.27completed months of
new text begin allowable new text end service
new text begin , unless restricted under paragraph (b)new text end .
162.28
new text begin (b) Allowable service in excess of 33 years must not be used in computing the new text end
162.29
new text begin annuity. This restriction does not apply to any member who has at least 28 years of new text end
162.30
new text begin allowable service before July 1, 2013.new text end
162.31
new text begin (c) When the annuity commences, any member contributions attributable to new text end
162.32
new text begin allowable service not used to compute the annuity due to the restrictions in paragraph (b) new text end
162.33
new text begin must be refunded using procedures specified in section 352B.11, subdivision 1.new text end
163.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
163.2 Sec. 6. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:
163.3 Subd. 2a.
Early retirement. Any member who has become at least 50 years old
163.4and who has at least three years of allowable service if first employed before July 1,
163.52010
new text begin 2013new text end , or who has at least five
new text begin ten new text end years of allowable service if first employed after
163.6June 30, 2010
new text begin 2013new text end , is entitled upon application to a reduced retirement annuity equal
163.7to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for
163.8each month that the member is under age 55 at the time of retirement
new text begin ,new text end if first employed
163.9
new text begin the effective date of retirement is new text end before July 1, 2010, or reduced by two-tenths of one
163.10percent
new text begin 2015. If the effective date of retirement is after June 30, 2015, the reduction is new text end
163.11
new text begin 0.34 percent new text end for each month that the member is under age 55 at the time of retirement if
163.12first employed after June 30, 2010.
163.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
163.14 Sec. 7. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:
163.15 Subd. 5.
Optional annuity. A disabilitant may elect, in lieu of spousal survivorship
163.16coverage under section
352B.11, subdivisions
new text begin subdivisionnew text end 2b and 2c, the normal disability
163.17benefit or an optional annuity as provided in section
352B.08, subdivision 3. The choice
163.18of an optional annuity must be made in writing, on a form prescribed by the executive
163.19director, and must be made before the commencement of the payment of the disability
163.20benefit, or within 90 days before reaching age 55 or before reaching the five-year
163.21anniversary of the effective date of the disability benefit, whichever is later. The optional
163.22annuity is effective on the date on which the disability benefit begins to accrue, or the
163.23month following the attainment of age 55 or following the five-year anniversary of the
163.24effective date of the disability benefit, whichever is later.
163.25 Sec. 8. Minnesota Statutes 2012, section 352B.11, subdivision 1, is amended to read:
163.26 Subdivision 1.
Refund of payments. (a) A member who has not received other
163.27benefits under this chapter is entitled to a refund of payments made by salary deduction,
163.28plus interest, if the member is separated, either voluntarily or involuntarily, from the state
163.29service that entitled the member to membership.
163.30
new text begin (b) A refund under section 352B.08, subdivision 2, paragraph (c), does not result in new text end
163.31
new text begin a forfeiture of salary credit for the allowable service credit covered by the refund.new text end
163.32(b)
new text begin (c) new text end In the event of the member's death, if there are no survivor benefits payable
163.33under this chapter, a refund plus interest is payable to the last designated beneficiary on
164.1a form filed with the director before death, or if no designation is filed, is payable to
164.2the member's estate. Interest under this subdivision must be calculated as provided in
164.3section
352.22, subdivision 2. To receive a refund, the application must be made on a
164.4form prescribed by the executive director.
164.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
164.6 Sec. 9. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:
164.7 Subd. 2b.
Surviving spouse benefit eligibility. (a) If an active member with
164.8three or more years of allowable service if first employed before July 1, 2010
new text begin 2013new text end , or
164.9with at least five years of allowable service if first employed after June 30, 2010
new text begin 2013new text end ,
164.10dies before attaining age 55, the surviving spouse is entitled to the
new text begin a new text end benefit specified in
164.11subdivision 2c, paragraph (b)
new text begin for life equal to 50 percent of the average monthly salary new text end
164.12
new text begin of the deceased member. On the first of the month next following the date on which the new text end
164.13
new text begin deceased member would have attained exact age 55, in lieu of continued receipt of the new text end
164.14
new text begin prior benefit, the surviving spouse is eligible to commence receipt of the second half of new text end
164.15
new text begin a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and new text end
164.16
new text begin survivor annuity must be computed assuming the exact age 55 for the deceased member new text end
164.17
new text begin and the age of the surviving spouse on the date of deathnew text end .
164.18(b) If an active member with less than three years of allowable service if first
164.19employed before July 1, 2010
new text begin 2013new text end , or with fewer than five years of allowable service if
164.20first employed after June 30, 2010
new text begin 2013new text end , dies at any age, the surviving spouse is entitled to
164.21receive the
new text begin a new text end benefit specified in subdivision 2c, paragraph (c)
new text begin for life equal to 50 percent new text end
164.22
new text begin of the average monthly salary of the deceased membernew text end .
164.23(c) If an active member with three or more years of allowable service if first
164.24employed before July 1, 2010
new text begin 2013new text end , or with at least five years of allowable service if first
164.25employed after June 30, 2010
new text begin 2013new text end , dies on or after attaining exact age 55, the surviving
164.26spouse is entitled to receive the benefits specified in subdivision 2c, paragraph (d)
new text begin a benefit new text end
164.27
new text begin for life equal to 50 percent of the average monthly salary of the deceased member, or the new text end
164.28
new text begin second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and new text end
164.29
new text begin survivor annuity must be computed using the age of the deceased member on the date of new text end
164.30
new text begin death and the age of the surviving spouse on that same datenew text end .
164.31(d) If a disabilitant dies while receiving a disability benefit under section
352B.10
164.32or before the benefit under that section commenced, and an optional annuity was not
164.33elected under section
352B.10, subdivision 5, the surviving spouse is entitled to receive
164.34the
new text begin a new text end benefit specified in subdivision 2c, paragraph (b)
new text begin for life equal to 50 percent of the new text end
164.35
new text begin average monthly salary of the deceased member. On the first of the month next following new text end
165.1
new text begin the date on which the deceased member would have attained exact age 55, in lieu of new text end
165.2
new text begin continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt new text end
165.3
new text begin of the second half of a 100 percent joint and survivor annuity if this provides a larger new text end
165.4
new text begin benefit. The joint and survivor annuity must be computed assuming the exact age 55 for new text end
165.5
new text begin the deceased member and the age of the surviving spouse on the date of deathnew text end .
165.6(e) If a former member with three or more years of allowable service if first employed
165.7before July 1, 2010
new text begin 2013new text end , or with at least five years of allowable service if first employed
165.8after June 30, 2010
new text begin 2013new text end , who terminated from service and has not received a refund or
165.9commenced receipt of any other benefit provided by this chapter, dies, the surviving
165.10spouse is entitled to receive the
new text begin as a new text end benefit specified in subdivision 2c, paragraph (e)
new text begin the new text end
165.11
new text begin second half of a 100 percent joint and survivor annuity, commencing on the first of the new text end
165.12
new text begin month next following the deceased member's date of death, or the first of the month next new text end
165.13
new text begin following the date on which the deceased member would have attained age 55, whichever new text end
165.14
new text begin is later. The joint and survivor annuity must be computed using the age of the deceased new text end
165.15
new text begin member on the date of death and the age of the surviving spouse on that same datenew text end .
165.16(f) If a former member with less than three years of allowable service if first
165.17employed before July 1, 2010
new text begin 2013new text end , or with fewer than five years of allowable service if
165.18first employed after June 30, 2010
new text begin 2013new text end , who terminated from service and has not received
165.19a refund or commenced receipt of any other benefit, if applicable, provided by this chapter,
165.20dies, the surviving spouse is entitled to receive the refund specified in subdivision 2c,
165.21paragraph (f)
new text begin or, if none, the children or, if none, the deceased member's estate is entitled to new text end
165.22
new text begin a refund of the employee contributions plus interest computed as specified in subdivision 1new text end .
165.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
165.24 Sec. 10. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:
165.25 Subd. 1e.
Annual postretirement adjustments; State Patrol retirement plan.
165.26(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
165.27retirement plan are entitled to a postretirement adjustment annually on January 1, as
165.28follows:
165.29(1) a postretirement increase of 1.5
new text begin one new text end percent must be applied each year, effective
165.30on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
165.31who has been receiving an annuity or a benefit for at least 18 full months before the
165.32January 1 increase; and
165.33(2) for each annuitant or benefit recipient who has been receiving an annuity or a
165.34benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5
new text begin one new text end
165.35percent for each month that the person has been receiving an annuity or benefit must be
166.1applied, effective January 1, following the calendar year in which the person has been
166.2retired for at least six months, but has been retired for less than 18 months.
166.3(b) The increases provided by this subdivision commence on January 1, 2011
166.4
new text begin 2014new text end . Increases under this subdivision
new text begin paragraph (a) new text end for the State Patrol retirement plan
166.5terminate on December 31 of the calendar year in which the actuarial valuation prepared
166.6by the approved actuary under sections
356.214 and
356.215 and the standards for
166.7actuarial work promulgated by the Legislative Commission on Pensions and Retirement
166.8indicates that the market value of assets of the retirement plan equals or exceeds 90
166.9
new text begin 85 new text end percent of the actuarial accrued liability of the retirement plan and increases under
166.10subdivision 1
new text begin paragraph (c) new text end recommence after that date.
166.11
new text begin (c) Retirement annuity, disability benefit, or survivor benefit recipients of the State new text end
166.12
new text begin Patrol retirement plan are entitled to a postretirement adjustment annually on January new text end
166.13
new text begin 1, as follows:new text end
166.14
new text begin (1) a postretirement increase of 1.5 percent must be applied each year, effective on new text end
166.15
new text begin January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who new text end
166.16
new text begin has been receiving an annuity or a benefit for at least 18 full months before the January 1 new text end
166.17
new text begin increase; andnew text end
166.18
new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a new text end
166.19
new text begin benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent new text end
166.20
new text begin for each month that the person has been receiving an annuity or benefit must be applied, new text end
166.21
new text begin effective January 1, following the calendar year in which the person has been retired for at new text end
166.22
new text begin least six months, but has been retired for less than 18 months.new text end
166.23
new text begin (d) Increases under paragraph (c) for the State Patrol retirement plan terminate on new text end
166.24
new text begin December 31 of the calendar year in which the actuarial valuation prepared by the approved new text end
166.25
new text begin actuary under sections new text end
new text begin and new text end
new text begin and the standards for actuarial work adopted by new text end
166.26
new text begin the Legislative Commission on Pensions and Retirement indicates that the market value of new text end
166.27
new text begin assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability new text end
166.28
new text begin of the retirement plan and increases under subdivision 1 recommence after that date.new text end
166.29(c)
new text begin (e) new text end An increase in annuity or benefit payments under this subdivision must be
166.30made automatically unless written notice is filed by the annuitant or benefit recipient
166.31with the executive director of the applicable covered retirement plan requesting that the
166.32increase not be made.
166.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
166.34 Sec. 11.
new text begin REPEALER.new text end
166.35
new text begin Minnesota Statutes 2012, section 352B.11, subdivision 2c,new text end new text begin is repealed.new text end
167.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
167.2
ARTICLE 10
167.3
PERA PLANS SALARY DEFINITION
167.4 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
167.5 Subd. 10.
Salary. (a) Subject to the limitations of section
356.611, "salary" means:
167.6 (1) the
new text begin wages or new text end periodic compensation of
new text begin payable to new text end a public employee,
new text begin by the new text end
167.7
new text begin employing governmental subdivision new text end before
new text begin :new text end
167.8
new text begin (i) employee retirement deductions that are designated as picked-up contributions new text end
167.9
new text begin under section 356.62;new text end
167.10
new text begin (ii) any employee-elected new text end deductions for deferred compensation, supplemental
167.11retirement plans, or other voluntary salary reduction programs, and also means "wages"
167.12and includes net income from fees
new text begin that would have otherwise been available as a cash new text end
167.13
new text begin payment to the employeenew text end ;
new text begin andnew text end
167.14
new text begin (iii) employee deductions for contributions to a supplemental plan or to a new text end
167.15
new text begin governmental trust established under section 356.24, subdivision 1, clause (7), to save for new text end
167.16
new text begin postretirement health care expenses, unless otherwise excluded under paragraph (b);new text end
167.17 (2) for a public employee who is covered by a supplemental retirement plan under
167.18section
356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions
167.19be made by
new text begin or (12),new text end the employer, the contribution
new text begin contributions new text end to the applicable
167.20supplemental retirement plan when an agreement between the parties establishes that the
167.21contribution
new text begin contributions new text end will either result in a mandatory reduction of employees' wages
167.22through payroll withholdings, or be made in lieu of an amount that would otherwise be
167.23paid as wages; and
167.24 (3) for a public employee who has prior service covered by a local police or
167.25firefighters relief association that has consolidated with the Public Employees Retirement
167.26Association or to which section
353.665 applies and who has elected coverage either
167.27under the public employees police and fire fund benefit plan under section
353A.08
167.28following the consolidation or under section
353.665, subdivision 4, the rate of salary
167.29upon which member contributions to the special fund of the relief association were made
167.30prior to the effective date of the consolidation as specified by law and by bylaw provisions
167.31governing the relief association on the date of the initiation of the consolidation procedure
167.32and the actual periodic compensation of the public employee after the effective date of
167.33consolidation.
new text begin ;new text end
167.34
new text begin (4) a payment from a public employer through a grievance proceeding, settlement, new text end
167.35
new text begin or court order that is attached to a specific earnings period in which the employee's regular new text end
168.1
new text begin salary was not earned or paid to the member due to a suspension or a period of involuntary new text end
168.2
new text begin termination that is not a wrongful discharge under section 356.50; provided the amount is new text end
168.3
new text begin not less than the equivalent of the average of the hourly base salary rate in effect during new text end
168.4
new text begin the last six months of allowable service prior to the suspension or period of involuntary new text end
168.5
new text begin termination, plus any applicable increases awarded during the period that would have been new text end
168.6
new text begin paid under a collective bargaining agreement or personnel policy but for the suspension new text end
168.7
new text begin or involuntary termination, multiplied by the average number of regular hours for which new text end
168.8
new text begin the employee was compensated during the six months of allowable service prior to the new text end
168.9
new text begin suspension or period of involuntary termination, but not to exceed the compensation that new text end
168.10
new text begin the public employee would have earned if regularly employed during the applicable period;new text end
168.11
new text begin (5) the amount paid to a member who is absent from employment by reason of new text end
168.12
new text begin personal, parental, or military leave of absence if equivalent to the hourly base salary new text end
168.13
new text begin rate in effect during the six months of allowable service, or portions thereof, prior to the new text end
168.14
new text begin leave, multiplied by the average number of regular hours for which the employee was new text end
168.15
new text begin compensated during the six months of allowable service prior to the applicable leave of new text end
168.16
new text begin absence;new text end
168.17
new text begin (6) the amount paid to a member who is absent from employment by reason of an new text end
168.18
new text begin authorized medical leave of absence if specified in advance to be at least one-half but new text end
168.19
new text begin no more than equal to the earnings the member received, on which contributions were new text end
168.20
new text begin reported and allowable service credited during the six months immediately preceding new text end
168.21
new text begin the medical leave of absence; andnew text end
168.22
new text begin (7) for a public employee who receives performance or merit bonus payment under new text end
168.23
new text begin a written compensation plan, policy, or collective bargaining agreement in addition new text end
168.24
new text begin to regular salary or in lieu of regular salary increases, the compensation paid to the new text end
168.25
new text begin employee for attaining or exceeding performance goals, duties, or measures during a new text end
168.26
new text begin specified period of employment.new text end
168.27 (b) Salary does not mean:
168.28 (1) the fees paid to district court reporters,
new text begin ;new text end
168.29
new text begin (2)new text end unused annual
new text begin leave,new text end vacation
new text begin ,new text end or sick leave payments, in
new text begin the form of new text end lump-sum
168.30or periodic payments,
new text begin ;new text end
168.31
new text begin (3) for the donor, payment to another person of the value of hours donated under a new text end
168.32
new text begin benevolent vacation, personal, or sick leave donation program;new text end
168.33
new text begin (4) any form of new text end severance payments,
new text begin or retirement incentive payments;new text end
168.34
new text begin (5) an allowance payment or per diem payments for or new text end reimbursement of expenses,
new text begin ;new text end
168.35
new text begin (6)new text end lump-sum settlements not attached to a specific earnings period, or
new text begin ;new text end
169.1
new text begin (7) new text end workers' compensation payments
new text begin or disability insurance payments, including new text end
169.2
new text begin payments from employer self-insurance arrangementsnew text end ;
169.3 (2)
new text begin (8) new text end employer-paid amounts used by an employee toward the cost of insurance
169.4coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
169.5care expense accounts, day care expenses, or any payments in lieu of any employer-paid
169.6group insurance coverage, including the difference between single and family rates that
169.7may be paid to a member with single coverage and certain amounts determined by the
169.8executive director to be ineligible;
169.9
new text begin (9) employer-paid fringe benefits, including, but not limited to:new text end
169.10
new text begin (i) employer-paid premiums or supplemental contributions for employees for all new text end
169.11
new text begin types of insurance;new text end
169.12
new text begin (ii) membership dues or fees for the use of fitness or recreational facilities;new text end
169.13
new text begin (iii) incentive payments or cash awards relating to a wellness program;new text end
169.14
new text begin (iv) the value of any nonmonetary benefits;new text end
169.15
new text begin (v) any form of payment made in lieu of an employer-paid fringe benefit;new text end
169.16
new text begin (vi) an employer-paid amount made to a deferred compensation or tax-sheltered new text end
169.17
new text begin annuity program; andnew text end
169.18
new text begin (vii) any amount paid by the employer as a supplement to salary, either as a new text end
169.19
new text begin lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not new text end
169.20
new text begin available to the employee as cash;new text end
169.21 (3)
new text begin (10) new text end the amount equal to that which the employing governmental subdivision
169.22would otherwise pay toward single or family insurance coverage for a covered employee
169.23when, through a contract or agreement with some but not all employees, the employer:
169.24 (i) discontinues, or for new hires does not provide, payment toward the cost of the
169.25employee's selected insurance coverages under a group plan offered by the employer;
169.26 (ii) makes the employee solely responsible for all contributions toward the cost of
169.27the employee's selected insurance coverages under a group plan offered by the employer,
169.28including any amount the employer makes toward other employees' selected insurance
169.29coverages under a group plan offered by the employer; and
169.30 (iii) provides increased salary rates for employees who do not have any
169.31employer-paid group insurance coverages;
169.32 (4)
new text begin (11) new text end except as provided in section
353.86 or
353.87, compensation of any
169.33kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
169.34in subdivision 35 or 36;
169.35 (5)
new text begin (12) new text end the amount of compensation that exceeds the limitation provided in section
169.36356.611
; and
170.1 (6)
new text begin (13) new text end amounts paid by a federal or state grant for which the grant specifically
170.2prohibits grant proceeds from being used to make pension plan contributions, unless the
170.3contributions to the plan are made from sources other than the federal or state grant.
new text begin ; andnew text end
170.4
new text begin (14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).new text end
170.5 (c) Amounts
new text begin , other than those provided under paragraph (a), clause (4),new text end provided to
170.6an employee by the employer through a grievance proceeding
new text begin , a court order,new text end or a legal
170.7settlement are salary only if the settlement
new text begin or court order new text end is reviewed by the executive
170.8director and the amounts are determined by the executive director to be consistent with
170.9paragraph (a) and prior determinations.
170.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment. new text end
170.11
ARTICLE 11
170.12
PUBLIC EMPLOYEES POLICE AND FIRE RETIREMENT PLAN
170.13
FINANCIAL SOLVENCY MEASURES
170.14 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
170.15 Subd. 17a.
Average salary. (a) "Average salary," for purposes of calculating a
170.16retirement annuity under section
353.29, subdivision 3, means an amount equivalent to
170.17the average of the highest salary of the member, police officer, or firefighter, whichever
170.18applies, upon which employee contributions were paid for any five successive years of
170.19allowable service, based on dates of salary periods as listed on salary deduction reports.
170.20
new text begin "Average salary" includes the salary of the employee during the period of covered new text end
170.21
new text begin employment rendered after reaching the allowable service credit limit of section 353.651, new text end
170.22
new text begin subdivision 3, paragraph (b). new text end Average salary must be based upon all allowable service if
170.23this service is less than five years.
170.24(b) "Average salary" may not include any reduced salary paid during a period
170.25in which the employee is entitled to benefit payments from workers' compensation for
170.26temporary disability, unless the average salary is higher, including this period.
170.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
170.28 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:
170.29 Subd. 41.
Duty disability. "Duty disability," physical or psychological, means a
170.30condition that is expected to prevent a member, for a period of not less than 12 months,
170.31from performing the normal duties of the position held by a person who is a member of the
170.32public employees police and fire
new text begin retirement new text end plan, and that is the direct result of an injury
170.33incurred during, or a disease arising out of, the performance of normal duties or the actual
171.1performance of less frequent
new text begin inherently dangerous new text end duties, either of which are specific to
171.2protecting the property and personal safety of others and that present inherent dangers that
171.3are specific to the positions covered by the public employees police and fire
new text begin retirement new text end plan.
171.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
171.5 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:
171.6 Subd. 47.
Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
171.7to an annuity or benefit from a retirement plan administered by the Public Employees
171.8Retirement Association by having credit for sufficient allowable service under paragraph
171.9(b) or
new text begin ,new text end (c),
new text begin or (d), new text end whichever applies.
171.10(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
171.11member of the general employees retirement plan of the Public Employees Retirement
171.12Association:
171.13(1) a public employee who first became a member
new text begin of the association new text end before July
171.141, 2010, is
new text begin 100 percent new text end vested when the person has accrued credit for not less than three
171.15years of allowable service as defined under subdivision 16; and
171.16(2) a public employee who first becomes a member
new text begin of the association new text end after June 30,
171.172010, is
new text begin 100 percent new text end vested when the person has accrued credit for not less than five years
171.18of allowable service as defined under subdivision 16.
171.19(c) For purposes of qualifying for an annuity or benefit as a member of the police
171.20and fire plan or a member of the local government correctional employees retirement plan:
171.21(1) a public employee who first became a member
new text begin of the association new text end before July
171.221, 2010, is
new text begin 100 percent new text end vested when the person has accrued credit for not less than three
171.23years of allowable service as defined under subdivision 16; and
171.24(2) a public employee who first becomes a member
new text begin of the association new text end after June
171.2530, 2010, is vested at the following percentages when the person has accrued credited
171.26allowable service as defined under subdivision 16, as follows:
171.27(i) 50 percent after five years;
171.28(ii) 60 percent after six years;
171.29(iii) 70 percent after seven years;
171.30(iv) 80 percent after eight years;
171.31(v) 90 percent after nine years; and
171.32(vi) 100 percent after ten years.
171.33
new text begin (d) For purposes of qualifying for an annuity or benefit as a member of the public new text end
171.34
new text begin employees police and fire retirement plan:new text end
172.1
new text begin (1) a public employee who first became a member of the association before July new text end
172.2
new text begin 1, 2010, is 100 percent vested when the person has accrued credit for not less than three new text end
172.3
new text begin years of allowable service as defined under subdivision 16;new text end
172.4
new text begin (2) a public employee who first becomes a member of the association after June 30, new text end
172.5
new text begin 2010, and before July 1, 2014, is vested at the following percentages when the person has new text end
172.6
new text begin accrued credited allowable service as defined under subdivision 16, as follows:new text end
172.7
new text begin (i) 50 percent after five years;new text end
172.8
new text begin (ii) 60 percent after six years;new text end
172.9
new text begin (iii) 70 percent after seven years;new text end
172.10
new text begin (iv) 80 percent after eight years;new text end
172.11
new text begin (v) 90 percent after nine years; andnew text end
172.12
new text begin (vi) 100 percent after ten years; andnew text end
172.13
new text begin (3) a public employee who first becomes a member of the association after June new text end
172.14
new text begin 30, 2014, is vested at the following percentages when the person has accrued credited new text end
172.15
new text begin allowable service as defined under subdivision 16, as follows:new text end
172.16
new text begin (i) 50 percent after ten years;new text end
172.17
new text begin (ii) 55 percent after 11 years;new text end
172.18
new text begin (iii) 60 percent after 12 years;new text end
172.19
new text begin (iv) 65 percent after 13 years;new text end
172.20
new text begin (v) 70 percent after 14 years;new text end
172.21
new text begin (vi) 75 percent after 15 years;new text end
172.22
new text begin (vii) 80 percent after 16 years;new text end
172.23
new text begin (viii) 85 percent after 17 years;new text end
172.24
new text begin (ix) 90 percent after 18 years;new text end
172.25
new text begin (x) 95 percent after 19 years; andnew text end
172.26
new text begin (xi) 100 percent after 20 or more years.new text end
172.27 Sec. 4. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:
172.28 Subd. 4.
Additional requirements; eligibility for police and fire or local
172.29
government correctional service new text begin retirement new text end plan disability benefits. (a) If an
172.30application for disability benefits is filed within two years of the date of the injury or the
172.31onset of the illness that gave rise to the disability application, the application must be
172.32supported by evidence that the applicant is unable to perform the duties of the position
172.33held by the applicant on the date of the injury or the onset of the illness causing the
172.34disability. The employer must provide evidence indicating whether the applicant is able or
172.35unable to perform the duties of the position held on the date of the injury or onset of the
173.1illness causing the disability and the specifications
new text begin , a clear explanationnew text end of any duties that
173.2the individual can or cannot perform
new text begin , and an explanation of why the employer may or may new text end
173.3
new text begin not authorize continued employment to the applicant in the current or other positionnew text end .
173.4 (b) If an application for disability benefits is filed more than two years after the
173.5date of injury or the onset of an illness causing the disability, the application must be
173.6supported by evidence that the applicant is unable to perform the most recent duties that
173.7are
new text begin were new text end expected to be performed by the applicant during the 90 days before
new text begin preceding new text end
173.8the filing of
new text begin last day new text end the application
new text begin applicant performed services for the employernew text end . The
173.9employer must provide evidence of the duties that are
new text begin were new text end expected to be performed by
173.10the applicant during the 90 days before
new text begin preceding new text end the filing of
new text begin last day new text end the application
173.11
new text begin applicant performed servicesnew text end , whether the applicant can or cannot perform those duties
173.12overall, and the specifications
new text begin a clear explanation new text end of any duties that the applicant can
173.13or cannot perform
new text begin , and an explanation of why the employer may or may not authorize new text end
173.14
new text begin continued employment to the applicant in the current or other positionnew text end .
173.15 (c) Any report supporting a claim to disability benefits under section
353.656 or
173.16353E.06
must specifically relate the disability to its cause; and for any claim to duty
173.17disability from an injury or illness arising out of an act of duty, the report must
new text begin state the new text end
173.18
new text begin specific act of duty giving rise to the claim, and new text end relate the cause of disability to
new text begin inherently new text end
173.19
new text begin dangerous duties new text end specific tasks or functions required to be performed by the employee in
173.20fulfilling the employee's duty-related acts which must be specific to the inherent dangers of
173.21the positions eligible for membership in
new text begin covered by new text end the
new text begin public employees new text end police and fire
173.22fund
new text begin plan new text end and the local government correctional service retirement plan. Any report that
173.23does not relate the cause of disability to specific acts or functions
new text begin inherently dangerous new text end
173.24
new text begin duties new text end performed by the employee may not be relied upon as evidence to support eligibility
173.25for benefits and may be disregarded in the executive director's decision-making process.
173.26 (d) Any application for duty disability must be supported by a first report of injury as
173.27defined in section
176.231.
173.28 (e) If a member who has applied for and been approved for disability benefits before
173.29the termination of service does not terminate service or is not placed on an authorized
173.30leave of absence as certified by the governmental subdivision within 45 days following
173.31the date on which the application is approved, the application shall be canceled. If an
173.32approved application for disability benefits has been canceled, a subsequent application
173.33for disability benefits may not be filed on the basis of the same medical condition for a
173.34minimum of one year from the date on which the previous application was canceled.
173.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
174.1 Sec. 5. Minnesota Statutes 2012, section 353.35, subdivision 1, is amended to read:
174.2 Subdivision 1.
Refund rights. new text begin (a) Except as provided in paragraph (b), new text end when any
174.3former member accepts a refund, all existing service credits and all rights and benefits to
174.4which the person was entitled prior to the acceptance of the refund must terminate.
174.5
new text begin (b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a new text end
174.6
new text begin forfeiture of salary credit for the allowable service credit covered by the refund.new text end
174.7
new text begin (c)new text end The rights and benefits of a former member must not be restored until the person
174.8returns to active service and acquires at least six months of allowable service credit
174.9after taking the last refund and repays the refund or refunds taken and interest received
174.10under section
353.34, subdivisions 1 and 2, plus interest at an annual rate of 8.5 percent
174.11compounded annually. If the person elects to restore service credit in a particular fund
174.12from which the person has taken more than one refund, the person must repay all refunds
174.13to that fund. All refunds must be repaid within six months of the last date of termination
174.14of public service.
174.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
174.16 Sec. 6. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:
174.17 Subd. 2.
Employee contribution. (a) For members other than members who were
174.18active members of the former Minneapolis Firefighters Relief Association on December
174.1929, 2011, or for members other than members who were active members of the former
174.20Minneapolis Police Relief Association on December 29, 2011, the employee contribution
174.21is 9.4 percent
new text begin an amount equal to the following percentage new text end of the
new text begin total new text end salary of the
new text begin each new text end
174.22member in calendar year 2010 and is
new text begin , as follows:new text end 9.6 percent of the salary of the member
174.23in each
new text begin before new text end calendar year after 2010
new text begin 2014; 10.2 percent in calendar year 2014; and 10.8 new text end
174.24
new text begin percent in calendar year 2015 and thereafternew text end .
174.25(b) For members who were active members of the former Minneapolis Firefighters
174.26Relief Association on December 29, 2011, the employee contribution is an amount
174.27equal to eight percent of the monthly unit value under section
353.01, subdivision 10a,
174.28multiplied by 80 and expressed as a biweekly amount for each member. The employee
174.29contribution made by a member with at least 25 years of service credit as an active
174.30member of the former Minneapolis Firefighters Relief Association must be deposited in
174.31the postretirement health care savings account established under section
352.98.
174.32(c) For members who were active members of the former Minneapolis Police Relief
174.33Association on December 29, 2011, the employee contribution is an amount equal to eight
174.34percent of the monthly unit value under section
353.01, subdivision 10b, multiplied by 80
174.35and expressed as a biweekly amount for each member. The employee contribution made
175.1by a member with at least 25 years of service credit as an active member of the former
175.2Minneapolis Police Relief Association must be deposited in the postretirement health care
175.3savings account established under section
352.98.
175.4(d) Contributions under this section must be made by deduction from salary in
175.5the manner provided in subdivision 4. Where any portion of a member's salary is paid
175.6from other than public funds, the member's employee contribution is based on the total
175.7salary received from all sources.
175.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
175.9 Sec. 7. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:
175.10 Subd. 3.
Employer contribution. (a) With respect to members other than members
175.11who were active members of the former Minneapolis Firefighters Relief Association on
175.12December 29, 2011, or for members other than members who were active members of
175.13the former Minneapolis Police Relief Association on December 29, 2011, the employer
175.14contribution is 14.1 percent
new text begin an amount equal to the following percentage new text end of the
new text begin total new text end salary
175.15of the
new text begin each new text end member in calendar year 2010 and is
new text begin , as follows:new text end 14.4 percent of the salary of
175.16the member in each
new text begin before new text end calendar year after 2010
new text begin 2014; 15.3 percent in calendar year new text end
175.17
new text begin 2014; and 16.2 percent in calendar year 2015 and thereafternew text end .
175.18(b) With respect to members who were active members of the former Minneapolis
175.19Firefighters Relief Association on December 29, 2011, the employer contribution is an
175.20amount equal to the amount of the member contributions under subdivision 2, paragraph
175.21(b).
175.22(c) With respect to members who were active members of the former Minneapolis
175.23Police Relief Association on December 29, 2011, the employer contribution is an amount
175.24equal to the amount of the member contributions under subdivision 2, paragraph (c).
175.25(d) Contributions under this subdivision must be made from funds available to the
175.26employing subdivision by the means and in the manner provided in section
353.28.
175.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
175.28 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
175.29 Subd. 3.
Retirement annuity formula. new text begin (a) new text end The average salary as defined in
175.30section
353.01, subdivision 17a, multiplied by the percent specified in section
356.315,
175.31subdivision 6
, per year
new text begin multiplied by years new text end of allowable service
new text begin , multiplied by the new text end
175.32
new text begin applicable vesting percentage indicated in section 353.01, subdivision 47,new text end determines the
175.33amount of the normal retirement annuity. If the member has earned allowable service
176.1for performing services other than those of a police officer or firefighter, the annuity
176.2representing that service must be computed under sections
353.29 and
353.30.
176.3
new text begin (b) For a member first enrolled in the public employees police and fire retirement new text end
176.4
new text begin plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a, new text end
176.5
new text begin paragraph (a), includes salary for all years for which contributions have been reported to new text end
176.6
new text begin the public employees police and fire retirement plan, but allowable service included in new text end
176.7
new text begin the calculation is limited to 33 years and the normal retirement annuity must not exceed new text end
176.8
new text begin 99 percent of the average salary.new text end
176.9
new text begin (c) When the annuity begins for members of the public employees police and fire new text end
176.10
new text begin retirement plan enrolled after June 30, 2014, a prorated share of the contributions for new text end
176.11
new text begin allowable service exceeding 33 years must be refunded to the member. The prorated new text end
176.12
new text begin share of the contributions to be refunded is determined by multiplying the accumulated new text end
176.13
new text begin deductions paid by the member to the public employees police and fire retirement plan by new text end
176.14
new text begin a percentage determined using the number of months of service in excess of 396 as the new text end
176.15
new text begin numerator and the total number of months of allowable service on which contributions new text end
176.16
new text begin were reported as the denominator. Interest as defined in section 353.34, subdivision 2, new text end
176.17
new text begin is to be applied to the prorated share of contributions from the first of the 397th month new text end
176.18
new text begin of allowable service reported to the public employees police and fire retirement plan to new text end
176.19
new text begin the first of the month the annuity begins.new text end
176.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
176.21 Sec. 9. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:
176.22 Subd. 4.
Early retirement. (a) A person who becomes a
new text begin public employees new text end police
176.23and fire
new text begin retirement new text end plan member after June 30, 2007, or a former member who is reinstated
176.24as a member of the plan after that date, who is at least 50 years of age and who is
new text begin at least new text end
176.25
new text begin partially new text end vested under section
353.01, subdivision 47, upon the termination of public
176.26service
new text begin before July 1, 2014, if the person is other than a county sheriff or after January 4, new text end
176.27
new text begin 2015, if the person is a county sheriff new text end is entitled upon application to a retirement annuity
176.28equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one
176.29percent for each month that the member is under age 55 at the time of retirement.
176.30 (b) Upon the termination of public service
new text begin before July 1, 2014, if the person is new text end
176.31
new text begin other than a county sheriff or upon the termination of public service before January 5, new text end
176.32
new text begin 2015, if the person is a county sheriffnew text end , any
new text begin public employees new text end police and fire
new text begin retirement new text end
176.33plan member
new text begin who first became a member of the plan before July 1, 2007, and who is new text end
176.34not specified in paragraph (a), upon attaining at least 50 years of age with at least three
176.35years of allowable service is entitled upon application to a retirement annuity equal to the
177.1normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for
177.2each month that the member is under age 55 at the time of retirement.
177.3
new text begin (c) A person other than a county sheriff who is a member of the public employees new text end
177.4
new text begin police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a new text end
177.5
new text begin member of the public employees police and fire retirement plan on or after January 5, new text end
177.6
new text begin 2015, and who is at least 50 years old and is at least partially vested under section 353.01, new text end
177.7
new text begin subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a new text end
177.8
new text begin county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is new text end
177.9
new text begin entitled upon application to a retirement annuity equal to the normal annuity calculated new text end
177.10
new text begin under subdivision 3, reduced for each month the member is under age 55 at the time of new text end
177.11
new text begin retirement by applying a blended monthly rate that is equivalent to the sum of:new text end
177.12
new text begin (1) one-sixtieth of the annual rate of five percent, prorated for each month the new text end
177.13
new text begin person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever new text end
177.14
new text begin applies; andnew text end
177.15
new text begin (2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever new text end
177.16
new text begin applies, for each month the person's benefit effective date is before July 1, 2019.new text end
177.17
new text begin (d) A person other than a county sheriff who is a member of the public employees new text end
177.18
new text begin police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member new text end
177.19
new text begin of the public employees police and fire retirement plan on or after January 5, 2015, and new text end
177.20
new text begin who is at least 50 years old and is at least partially vested under section 353.01, subdivision new text end
177.21
new text begin 47, whose benefit effective date is after July 1, 2019, is entitled, upon application, to a new text end
177.22
new text begin retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by new text end
177.23
new text begin five percent annually, prorated for each month that the member is under age 55.new text end
177.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
177.25 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
177.26 Subd. 2a.
Death while eligible survivor benefit. (a) If a member or former member
177.27who has attained the age of at least 50 years and either who is vested under section
177.28353.01, subdivision 47
, or who has credit for at least 30 years of allowable service,
177.29regardless of age attained, dies before the annuity or disability benefit becomes payable,
177.30notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
177.31elect to receive a death while eligible survivor benefit.
177.32 (b) Notwithstanding the definition of surviving spouse in section
353.01, subdivision
177.3320
, a former spouse of the member, if any, is entitled to a portion of the death while
177.34eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
177.35filed with the association. If there is no surviving spouse or child or children, a former
178.1spouse may be entitled to a lump-sum refund payment under section
353.32, subdivision
178.21
, if provided for in a marriage dissolution decree but not a death while eligible survivor
178.3benefit despite the terms of a marriage dissolution decree filed with the association.
178.4 (c) The benefit may be elected instead of a refund with interest under section
353.32,
178.5subdivision 1
, or surviving spouse benefits otherwise payable under subdivisions 1 and
178.62. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
178.7which the member could have qualified for on the date of death, computed as provided in
178.8sections 353.651, subdivisions 2 and
new text begin subdivision new text end 3, and
353.30, subdivision 3.
178.9 (d) The surviving spouse may apply for the annuity at any time after the date
178.10on which the deceased employee would have attained the required age for retirement
178.11based on the employee's allowable service. Sections
353.34, subdivision 3, and
353.71,
178.12subdivision 2
, apply to a deferred annuity payable under this subdivision.
178.13 (e) No payment accrues beyond the end of the month in which entitlement to
178.14such annuity has terminated. An amount equal to the excess, if any, of the accumulated
178.15contributions which were credited to the account of the deceased employee over and
178.16above the total of the annuities paid and payable to the surviving spouse must be paid to
178.17the deceased member's last designated beneficiary or, if none, to the legal representative of
178.18the estate of such deceased member.
178.19 (f) Any member may request in writing, with the signed consent of the spouse, that
178.20this subdivision not apply and that payment be made only to the designated beneficiary, as
178.21otherwise provided by this chapter.
178.22 (g) For a member who is employed as a full-time firefighter by the Department of
178.23Military Affairs of the state of Minnesota, allowable service as a full-time state Military
178.24Affairs Department firefighter credited by the Minnesota State Retirement System may be
178.25used in meeting the minimum allowable service requirement of this subdivision.
178.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
178.27 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:
178.28 Subd. 3a.
Maximum and minimum family benefits. (a) The maximum monthly
178.29benefit per family must not exceed the following percentages of the member's average
178.30monthly salary as specified in subdivision 3:
178.31 (1) 80 percent, if the member's death was a line of duty death; or
178.32 (2) 70 percent, if the member's death was not a line of duty death or occurred while
178.33the member was receiving a disability benefit that accrued before July 1, 2007.
178.34 (b) The minimum monthly benefit per family, including the joint and survivor
178.35optional annuity under subdivision 2a, and section
353.656, subdivision 1a, must not be
179.1less than the following percentage of the member's average monthly salary as specified in
179.2subdivision 3:
179.3 (1) 60 percent, if the death was a line of duty death; or
179.4 (2) 50 percent, if the death was not a line of duty death or occurred while the member
179.5was receiving a disability benefit that accrued before July 1, 2007.
179.6 (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the
179.7joint annuitant
new text begin , surviving spouse, and dependent children, as applicable,new text end must
new text begin each new text end be
179.8reduced to the amount necessary
new text begin proportionately new text end so that the total family benefit does
179.9not exceed the applicable maximum. The joint and survivor optional annuity
new text begin , surviving new text end
179.10
new text begin spouse, or dependent children benefit, as applicable,new text end must be restored, plus applicable
179.11postretirement adjustments under Minnesota Statutes 2008, section
356.41 or section
179.12356.415
, as the dependent child or children become no longer dependent under section
179.13353.01, subdivision 15
new text begin , or in the event of the death of the joint and survivor annuity new text end
179.14
new text begin recipient or the surviving spousenew text end .
179.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
179.16 Sec. 12. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:
179.17 Subdivision 1.
Duty disability. "Duty disability," physical or psychological, means
179.18a condition that is expected to prevent a member, for a period of not less than 12 months,
179.19from performing the normal duties of a local government correctional service employee as
179.20defined under section
353E.02 and that is the direct result of an injury incurred during, or
179.21a disease arising out of, the performance of normal duties or the actual performance of
179.22less frequent
new text begin inherently dangerous new text end duties, either of which are specific to protecting the
179.23property and personal safety of others and that present inherent dangers that are specific to
179.24the positions covered by the local government correctional service retirement plan.
179.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
179.26 Sec. 13. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
179.27 Subd. 1b.
Annual postretirement adjustments; PERA; general employees
179.28
retirement plan and local government correctional retirement plan. (a) Retirement
179.29annuity, disability benefit, or survivor benefit recipients of the general employees
179.30retirement plan of the Public Employees Retirement Association and the local government
179.31correctional service retirement plan are entitled to a postretirement adjustment annually
179.32on January 1, as follows:
180.1(1) for January 1, 2011, and each successive January 1 until funding stability is
180.2restored for the applicable retirement plan, a postretirement increase of one percent must
180.3be applied each year, effective on January 1, to the monthly annuity or benefit amount of
180.4each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
180.512 full months as of the current June 30;
180.6(2) for January 1, 2011, and each successive January 1 until funding stability is
180.7restored for the applicable retirement plan, for each annuitant or benefit recipient who has
180.8been receiving an annuity or a benefit for at least one full month, but less than 12 full
180.9months as of the current June 30, an annual postretirement increase of 1/12 of one percent
180.10for each month the person has been receiving an annuity or benefit must be applied;
180.11(3) for each January 1 following the restoration of funding stability for the applicable
180.12retirement plan, a postretirement increase of 2.5 percent must be applied each year,
180.13effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
180.14recipient who has been receiving an annuity or benefit for at least 12 full months as of
180.15the current June 30; and
180.16(4) for each January 1 following restoration of funding stability for the applicable
180.17retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
180.18a benefit for at least one full month, but less than 12 full months as of the current June
180.1930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
180.20has been receiving an annuity or benefit must be applied.
180.21(b) Funding stability is restored when the market value of assets of the applicable
180.22retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
180.23applicable plan in the
new text begin two new text end most recent prior
new text begin consecutive new text end actuarial valuation
new text begin valuations new text end
180.24prepared under section
356.215 and the standards for actuarial work by the approved
180.25actuary retained by the Public Employees Retirement Association under section
356.214.
180.26(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
180.27and (4), the market value of the applicable retirement plan is determined in the next
180.28subsequent actuarial valuation prepared under section
to be less than 90 percent
180.29of the actuarial accrued liability of any of the applicable Public Employees Retirement
180.30Association plans,
new text begin After having met the definition of funding stability under paragraph new text end
180.31
new text begin (b),new text end the increase provided in paragraph (a), clauses (1) and (2), are
new text begin rather than an increase new text end
180.32
new text begin under subdivision 1, is again new text end to be applied as of the next successive January until funding
180.33stability is again restored.
new text begin in a subsequent year or years if the market value of assets of new text end
180.34
new text begin the applicable plan equals or is less than:new text end
180.35
new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two new text end
180.36
new text begin consecutive actuarial valuations; ornew text end
181.1
new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most new text end
181.2
new text begin recent actuarial valuation.new text end
181.3(d) An increase in annuity or benefit payments under this section must be made
181.4automatically unless written notice is filed by the annuitant or benefit recipient with the
181.5executive director of the Public Employees Retirement Association requesting that the
181.6increase not be made.
181.7(e) The retirement annuity payable to a person who retires before becoming eligible
181.8for Social Security benefits and who has elected the optional payment, as provided in
181.9section
353.29, subdivision 6, must be treated as the sum of a period-certain retirement
181.10annuity and a life retirement annuity for the purposes of any postretirement adjustment.
181.11The period-certain retirement annuity plus the life retirement annuity must be the
181.12annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
181.13adjustment granted on the period-certain retirement annuity must terminate when the
181.14period-certain retirement annuity terminates.
181.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
181.16 Sec. 14. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:
181.17 Subd. 1c.
Annual postretirement adjustments; PERA-police and fire. (a)
181.18Retirement annuity, disability benefit, or survivor benefit recipients of the public
181.19employees police and fire retirement plan are entitled to a postretirement adjustment
181.20annually on January 1,
new text begin until funding stability is restored, new text end as follows:
181.21(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit
181.22recipient
new text begin whose annuity or benefit effective date is on or before June 1, 2014, new text end who has
181.23been receiving the annuity or benefit for at least 12 full months as of the immediate
181.24preceding June 30, an amount equal to one percent in each year;
new text begin ornew text end
181.25(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit
181.26recipient
new text begin whose annuity or benefit effective date is on or before June 1, 2014, new text end who has
181.27been receiving the annuity or benefit for at least one full month
new text begin , but not less than 11 new text end
181.28
new text begin months,new text end as of the immediate preceding June 30, an amount equal to 1/12 of one percent in
181.29each year
new text begin for each month of annuity or benefit receiptnew text end ;
new text begin andnew text end
181.30(3) for January 1, 2013, and each successive January 1 that follows the loss of
181.31funding stability as defined under paragraph (b) until funding stability as defined under
181.32paragraph (b) is again restored, for each annuitant or benefit recipient
new text begin whose annuity new text end
181.33
new text begin or benefit effective date is after June 1, 2014, new text end who has
new text begin will have new text end been receiving the
new text begin an new text end
181.34annuity or benefit for at least 12
new text begin 36 new text end full months as of the immediate preceding June 30,
181.35an amount equal to the percentage increase in the Consumer Price Index for urban wage
182.1earners and clerical workers all items index published by the Bureau of Labor Statistics of
182.2the United States Department of Labor between the immediate preceding June 30 and the
182.3June 30 occurring 12 months previous, but not to exceed 1.5
new text begin one new text end percent;
new text begin ornew text end
182.4(4) for January 1, 2013, and each successive January 1 that follows the loss of funding
182.5stability as defined under paragraph (b) until funding stability as defined under paragraph
182.6(b) is again restored, for each annuitant or benefit recipient
new text begin whose annuity or benefit new text end
182.7
new text begin effective date is after June 1, 2014, new text end who has been receiving the annuity or benefit for at
182.8least one
new text begin 25 new text end full month
new text begin months, but less than 36 months new text end as of the immediate preceding June
182.930, an amount equal to 1/12 of the percentage increase in the Consumer Price Index for
182.10urban wage earners and clerical workers all items index published by the Bureau of Labor
182.11Statistics of the United States Department of Labor between the immediate preceding June
182.1230 and the June 30 occurring 12 months previous for each full month of annuity or benefit
182.13receipt, but not to exceed 1/12 of 1.5
new text begin one new text end percent for each full month of annuity or benefit
182.14receipt;
new text begin during the fiscal year in which the annuity or benefit was effective.new text end
182.15(5) for
new text begin (b) Retirement annuity, disability benefit, or survivor benefit recipients of new text end
182.16
new text begin the public employees police and fire retirement plan are entitled to a postretirement new text end
182.17
new text begin adjustment annually on new text end each January 1 following the restoration of funding stability as
182.18defined under paragraph (b)
new text begin (c) new text end and during the continuation of funding stability as defined
182.19under paragraph (b)
new text begin (c)new text end ,
new text begin as follows:new text end
182.20
new text begin (1) new text end for each annuitant or benefit recipient who has been receiving the annuity or
182.21benefit for at least 12
new text begin 36 new text end full months as of the immediate preceding June 30, an amount
182.22equal to the percentage increase in the Consumer Price Index for urban wage earners and
182.23clerical workers all items index published by the Bureau of Labor Statistics of the United
182.24States Department of Labor between the immediate preceding June 30 and the June 30
182.25occurring 12 months previous, but not to exceed 2.5 percent; and
182.26(6) for each January 1 following the restoration of funding stability as defined under
182.27paragraph (b) and during the continuation of funding stability as defined under paragraph
182.28(b),
new text begin (2) new text end for each annuitant or benefit recipient who has been receiving the annuity or benefit
182.29for at least one
new text begin 25 new text end full month
new text begin months, but less than 36 full months, new text end as of the immediate
182.30preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
182.31Price Index for urban wage earners and clerical workers all items index published by
182.32the Bureau of Labor Statistics of the United States Department of Labor between the
182.33immediate preceding June 30 and the June 30 occurring 12 months previous for each full
182.34month of annuity or benefit receipt
new text begin during the fiscal year in which the annuity or benefit new text end
182.35
new text begin was effectivenew text end , but not to exceed 1/12 of 2.5 percent for each full month of annuity or
182.36benefit receipt
new text begin during the fiscal year in which the annuity or benefit was effectivenew text end .
183.1(b)
new text begin (c) new text end Funding stability is restored when the market value of assets of the public
183.2employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
183.3accrued liabilities of the applicable plan in the
new text begin two new text end most recent prior
new text begin consecutive new text end actuarial
183.4valuation
new text begin valuations new text end prepared under section
356.215 and under the standards for actuarial
183.5work of the Legislative Commission on Pensions and Retirement by the approved actuary
183.6retained by the Public Employees Retirement Association under section
356.214.
183.7
new text begin (d) After having met the definition of funding stability under paragraph (c), a full new text end
183.8
new text begin or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever new text end
183.9
new text begin applies, rather than adjustments under paragraph (b), is again applied in a subsequent year new text end
183.10
new text begin or years if the market value of assets of the public employees police and fire retirement new text end
183.11
new text begin plan equals or is less than:new text end
183.12
new text begin (1) 85 percent of the actuarial accrued liabilities of the applicable plan for two new text end
183.13
new text begin consecutive actuarial valuations; ornew text end
183.14
new text begin (2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most new text end
183.15
new text begin recent actuarial valuation.new text end
183.16(c)
new text begin (e) new text end An increase in annuity or benefit payments under this section must be made
183.17automatically unless written notice is filed by the annuitant or benefit recipient with the
183.18executive director of the Public Employees Retirement Association requesting that the
183.19increase not be made.
183.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
183.21
ARTICLE 12
183.22
TEACHERS RETIREMENT ASSOCIATION EARLY RETIREMENT
183.23
REDUCTION FACTORS
183.24 Section 1. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
183.25 Subd. 6.
Computation of formula program retirement annuity. (a) The formula
183.26retirement annuity must be computed in accordance with the applicable provisions of the
183.27formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
183.28section
354.05, subdivision 13a, for the period of the member's formula service credit.
183.29 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
183.30became a member of the association or a member of a pension fund listed in section
183.31356.30, subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with
183.32paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
183.33average salary as defined in section
354.05, subdivision 13a, multiplied by the following
184.1percentages per year of formula service credit shall determine the amount of the annuity to
184.2which the member qualifying therefor is entitled for service rendered before July 1, 2006:
184.3
Coordinated Member
Basic Member
184.4
184.5
184.6
Each year of service during
first ten
the percent specified
in section
356.315,
subdivision 1, per year
the percent specified
in section
356.315,
subdivision 3, per year
184.7
184.8
184.9
Each year of service
thereafter
the percent specified
in section
356.315,
subdivision 2, per year
the percent specified
in section
356.315,
subdivision 4, per year
184.10 For service rendered on or after July 1, 2006, the average salary as defined in section
184.11354.05
, subdivision 13a, multiplied by the following percentages per year of service credit,
184.12determines the amount the annuity to which the member qualifying therefor is entitled:
184.13
Coordinated Member
Basic Member
184.14
184.15
184.16
Each year of service during
first ten
the percent specified
in section
356.315,
subdivision 1a, per year
the percent specified
in section
356.315,
subdivision 3, per year
184.17
184.18
184.19
Each year of service after
ten years of service
the percent specified
in section
356.315,
subdivision 2b, per year
the percent specified
in section
356.315,
subdivision 4, per year
184.20 (c)(i) This paragraph applies only to a person who first became a member of the
184.21association or a member of a pension fund listed in section
356.30, subdivision 3, before
184.22July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
184.23conjunction with this paragraph than when calculated under paragraph (d), in conjunction
184.24with paragraph (e).
184.25 (ii) Where any member retires prior to normal retirement age under a formula
184.26annuity, the member shall be paid a retirement annuity in an amount equal to the normal
184.27annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
184.28that the member is under normal retirement age at the time of retirement except that for
184.29any member who has 30 or more years of allowable service credit, the reduction shall be
184.30applied only for each month that the member is under age 62.
184.31 (iii) Any member whose attained age plus credited allowable service totals 90 years
184.32is entitled, upon application, to a retirement annuity in an amount equal to the normal
184.33annuity provided in paragraph (b), without any reduction by reason of early retirement.
184.34 (d) This paragraph applies to a member who has become at least 55 years old and
184.35first became a member of the association after June 30, 1989, and to any other member
184.36who has become at least 55 years old and whose annuity amount when calculated under
184.37this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
184.38under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
184.39salary, as defined in section
354.05, subdivision 13a, multiplied by the percent specified
185.1by section
356.315, subdivision 4, for each year of service for a basic member shall
185.2determine the amount of the retirement annuity to which the basic member is entitled.
185.3The annuity of a basic member who was a member of the former Minneapolis Teachers
185.4Retirement Fund Association as of June 30, 2006, must be determined according to the
185.5annuity formula under the articles of incorporation of the former Minneapolis Teachers
185.6Retirement Fund Association in effect as of that date. For a coordinated member, the
185.7average salary, as defined in section
354.05, subdivision 13a, multiplied by the percent
185.8specified in section
356.315, subdivision 2, for each year of service rendered before July
185.91, 2006, and by the percent specified in section
356.315, subdivision 2b, for each year of
185.10service rendered on or after July 1, 2006, determines the amount of the retirement annuity
185.11to which the coordinated member is entitled.
185.12 (e) This paragraph applies to a person who has become at least 55 years old and first
185.13becomes a member of the association after June 30, 1989, and to any other member who
185.14has become at least 55 years old and whose annuity is higher when calculated under
185.15paragraph (d) in conjunction with this paragraph than when calculated under paragraph
185.16(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
185.17before the normal retirement age shall be paid the normal annuity provided in paragraph
185.18(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
185.19would be payable to the employee if the employee deferred receipt of the annuity and the
185.20annuity amount were augmented at an annual rate of three percent compounded annually
185.21from the day the annuity begins to accrue until the normal retirement age if the employee
185.22became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
185.23employee becomes an employee after June 30, 2006.
new text begin Except in regards to section 354.46, new text end
185.24
new text begin this paragraph remains in effect until June 30, 2015.new text end
185.25
new text begin (f) After June 30, 2020, this paragraph applies to a person who has become at least new text end
185.26
new text begin 55 years old and first becomes a member of the association after June 30, 1989, and to any new text end
185.27
new text begin other member who has become at least 55 years old and whose annuity is higher when new text end
185.28
new text begin calculated under paragraph (d) in conjunction with this paragraph than when calculated new text end
185.29
new text begin under paragraph (b), in conjunction with paragraph (c). An employee who retires under new text end
185.30
new text begin the formula annuity before the normal retirement age is entitled to receive the normal new text end
185.31
new text begin annuity provided in paragraph (d). For a person who is at least age 62 or older and has at new text end
185.32
new text begin least 30 years of service, the annuity must be reduced by an early reduction factor of six new text end
185.33
new text begin percent per year of the annuity that would be payable to the employee if the employee new text end
185.34
new text begin deferred receipt of the annuity and the annuity amount were augmented at an annual rate new text end
185.35
new text begin of three percent compounded annually from the day the annuity begins to accrue until the new text end
185.36
new text begin normal retirement age if the employee became an employee before July 1, 2006, and at 2.5 new text end
186.1
new text begin percent compounded annually if the employee became an employee after June 30, 2006. new text end
186.2
new text begin For a person who is not at least age 62 or older and does not have at least 30 years of new text end
186.3
new text begin service, the annuity would be reduced by an early reduction factor of four percent per year new text end
186.4
new text begin for ages 55 through 59 and seven percent per year of the annuity that would be payable new text end
186.5
new text begin to the employee if the employee deferred receipt of the annuity and the annuity amount new text end
186.6
new text begin were augmented at an annual rate of three percent compounded annually from the day new text end
186.7
new text begin the annuity begins to accrue until the normal retirement age if the employee became an new text end
186.8
new text begin employee before July 1, 2006, and at 2.5 percent compounded annually if the employee new text end
186.9
new text begin became an employee after June 30, 2006.new text end
186.10
new text begin (g) After June 30, 2015, and before July 1, 2020, for a person who would have new text end
186.11
new text begin a reduced retirement annuity under either paragraph (e) or (f) if they were applicable, new text end
186.12
new text begin the employee is entitled to receive a reduced annuity which must be calculated using new text end
186.13
new text begin a blended reduction factor augmented monthly by 1/60 of the difference between the new text end
186.14
new text begin reduction required under paragraph (e) and the reduction required under paragraph (f).new text end
186.15 (f)
new text begin (h)new text end No retirement annuity is payable to a former employee with a salary that
186.16exceeds 95 percent of the governor's salary unless and until the salary figures used in
186.17computing the highest five successive years average salary under paragraph (a) have been
186.18audited by the Teachers Retirement Association and determined by the executive director
186.19to comply with the requirements and limitations of section
354.05, subdivisions 35 and 35a.
186.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
186.21
ARTICLE 13
186.22
FIRST CLASS CITY TEACHER RETIREMENT INCREASES AND
186.23
FINANCIAL SOLVENCY MEASURES
186.24 Section 1.
new text begin [354.436] DIRECT STATE AID ON BEHALF OF THE FORMER new text end
186.25
new text begin MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.new text end
186.26
new text begin Subdivision 1.new text end new text begin Aid authorization.new text end new text begin The state shall pay $12,954,000 to the Teachers new text end
186.27
new text begin Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund new text end
186.28
new text begin Association. new text end
186.29
new text begin Subd. 2.new text end new text begin Aid appropriation.new text end new text begin The commissioner of management and budget shall new text end
186.30
new text begin pay the aid annually on October 1. The amount required is appropriated annually from the new text end
186.31
new text begin general fund to the commissioner of management and budget.new text end
186.32
new text begin Subd. 3.new text end new text begin Aid expiration.new text end new text begin The aid specified in this section terminates and this new text end
186.33
new text begin section expires when the current assets of the Teachers Retirement Association fund equal new text end
186.34
new text begin or exceed the actuarial accrued liabilities of the fund as determined in the most recent new text end
187.1
new text begin actuarial valuation report for the Teachers Retirement Association fund by the actuary new text end
187.2
new text begin retained under section 356.214, or on the established date for full funding under section new text end
187.3
new text begin 356.215, subdivision 11, whichever occurs earlier.new text end
187.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
187.5 Sec. 2. Minnesota Statutes 2012, section 354A.011, subdivision 21, is amended to read:
187.6 Subd. 21.
Retirement. new text begin (a) new text end "Retirement" means the time after the date of cessation
187.7of active teaching service by a teacher who is thereafter
new text begin then new text end entitled to an accrued
187.8retirement annuity commencing
new text begin beginning new text end as designated by the board of trustees and
187.9payable pursuant to an
new text begin upon filing a valid new text end application for an annuity filed with the board.
187.10The applicable provisions of law, articles of incorporation and bylaws in effect on the date
187.11of cessation of active teaching service thereafter determine the rights of the person.
187.12
new text begin (b) For members of the St. Paul Teachers Retirement Fund Association, a right to new text end
187.13
new text begin a retirement annuity requires a complete and continuous separation for 90 days from new text end
187.14
new text begin employment in any form with Independent School District No. 625, including service new text end
187.15
new text begin provided to the school district as an independent contractor or as an employee of an new text end
187.16
new text begin independent contractor.new text end
187.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
187.18 Sec. 3. Minnesota Statutes 2012, section 354A.12, subdivision 1, is amended to read:
187.19 Subdivision 1.
Employee contributions. (a) The contribution required to be paid
187.20by each member of a teachers retirement fund association is the percentage of total salary
187.21specified below for the applicable association and program:
187.22
Association and Program
Percentage of Total Salary
187.23
Duluth Teachers Retirement Fund Association
187.24
old law and new law
187.25
coordinated programs
187.26
before July 1, 2011new text begin 2013new text end
5.5 new text begin 6.5 new text end percent
187.27
effective July 1, 2011new text begin 2013new text end
6.0 new text begin 7.0 new text end percent
187.28
effective July 1, 2012new text begin 2014new text end
6.5 new text begin 7.5 new text end percent
187.29
St. Paul Teachers Retirement Fund Association
187.30
basic program before July 1, 2011
8 percent
187.31
basic program after June 30, 2011
8.25 percent
187.32
basic program after June 30, 2012
8.5 percent
187.33
basic program after June 30, 2013
8.75 percent
187.34
basic program after June 30, 2014
9.0 percent
187.35
new text begin basic program after June 30, 2015new text end
new text begin 9.5 percentnew text end
188.1
new text begin basic program after June 30, 2016new text end
new text begin 10.0 percentnew text end
188.2
coordinated program before July 1, 2011
5.5 percent
188.3
coordinated program after June 30, 2011
5.75 percent
188.4
coordinated program after June 30, 2012
6.0 percent
188.5
coordinated program after June 30, 2013
6.25 percent
188.6
coordinated program after June 30, 2014
6.50 percent
188.7
new text begin coordinated program after June 30, 2015new text end
new text begin 7.0 percentnew text end
188.8
new text begin coordinated program after June 30, 2016new text end
new text begin 7.50 percentnew text end
188.9(b) Contributions shall be made by deduction from salary and must be remitted
188.10directly to the respective teachers retirement fund association at least once each month.
188.11(c) When an employee contribution rate changes for a fiscal year, the new
188.12contribution rate is effective for the entire salary paid by the employer with the first
188.13payroll cycle reported.
188.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective with respect to the Duluth Teachers new text end
188.15
new text begin Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul new text end
188.16
new text begin Teachers Retirement Fund Association on the day following final enactment.new text end
188.17 Sec. 4. Minnesota Statutes 2012, section 354A.12, subdivision 2a, is amended to read:
188.18 Subd. 2a.
Employer regular and additional contributions. (a) The employing
188.19units shall make the following employer contributions to teachers retirement fund
188.20associations:
188.21(1) for any coordinated member of one of the following teachers retirement fund
188.22associations in a city of the first class, the employing unit shall make a regular employer
188.23contribution to the respective retirement fund association in an amount equal to the
188.24designated percentage of the salary of the coordinated member as provided below:
188.25
Duluth Teachers Retirement Fund Association
188.26
before July 1, 2011new text begin 2013new text end
5.79 new text begin 6.79 new text end percent
188.27
effective July 1, 2011new text begin 2013new text end
6.29 new text begin 7.29 new text end percent
188.28
effective July 1, 2012new text begin 2014new text end
6.79 new text begin 7.50 new text end percent
188.29
St. Paul Teachers Retirement Fund Association
188.30
before July 1, 2011
4.50 percent
188.31
after June 30, 2011
4.75 percent
188.32
after June 30, 2012
5.0 percent
188.33
after June 30, 2013
5.25 percent
188.34
after June 30, 2014
5.5 percent
188.35
new text begin after June 30, 2015new text end
new text begin 6.0 percentnew text end
188.36
new text begin after June 30, 2016new text end
new text begin 6.25 percentnew text end
188.37
new text begin after June 30, 2017new text end
new text begin 6.5 percentnew text end
189.1(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
189.2employing unit shall make a regular employer contribution to the respective retirement
189.3fund in an amount according to the schedule below:
189.4
before July 1, 2011
8.0 percent of salary
189.5
after June 30, 2011
8.25 percent of salary
189.6
after June 30, 2012
8.5 percent of salary
189.7
after June 30, 2013
8.75 percent of salary
189.8
after June 30, 2014
9.0 percent of salary
189.9
new text begin after June 30, 2015new text end
new text begin 9.5 percent of salarynew text end
189.10
new text begin after June 30, 2016new text end
new text begin 9.75 percent of salarynew text end
189.11
new text begin after June 30, 2017new text end
new text begin 10.0 percent of salarynew text end
189.12(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
189.13employing unit shall make an additional employer contribution to the respective fund in
189.14an amount equal to 3.64 percent of the salary of the basic member;
189.15(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
189.16the employing unit shall make an additional employer contribution to the respective fund
189.17in an amount equal to the applicable percentage of the coordinated member's salary,
189.18as provided below:
189.19
St. Paul Teachers Retirement Fund Association
3.84 percent
189.20(b) The regular and additional employer contributions must be remitted directly to
189.21the respective teachers retirement fund association at least once each month. Delinquent
189.22amounts are payable with interest under the procedure in subdivision 1a.
189.23(c) Payments of regular and additional employer contributions for school district
189.24or technical college employees who are paid from normal operating funds must be made
189.25from the appropriate fund of the district or technical college.
189.26(d) When an employer contribution rate changes for a fiscal year, the new
189.27contribution rate is effective for the entire salary paid by the employer with the first
189.28payroll cycle reported.
189.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective with respect to the Duluth Teachers new text end
189.30
new text begin Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul new text end
189.31
new text begin Teachers Retirement Fund Association on the day following final enactment.new text end
189.32 Sec. 5. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
189.33to read:
189.34
new text begin Subd. 2c.new text end new text begin Duluth Teachers Retirement Fund Association; employer new text end
189.35
new text begin contributions for reemployed annuitants.new text end new text begin The school district shall make the regular new text end
190.1
new text begin employer contributions and additional employer contributions specified in subdivision 2a new text end
190.2
new text begin on behalf of any retired member of the Duluth Teachers Retirement Fund Association who new text end
190.3
new text begin is reemployed by Independent School District No. 709, including providing service to the new text end
190.4
new text begin school district as an independent contractor or as an employee of an independent contractor.new text end
190.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
190.6 Sec. 6. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
190.7to read:
190.8
new text begin Subd. 2d.new text end new text begin St. Paul Teachers Retirement Fund Association; employer new text end
190.9
new text begin contributions for reemployed annuitants.new text end new text begin Independent School District No. 625 shall new text end
190.10
new text begin make the regular employer contribution and additional employer contribution specified in new text end
190.11
new text begin subdivision 2a, plus a supplemental contribution equal to 2.5 percent of salary, on behalf new text end
190.12
new text begin of any retired member of the St. Paul Teachers Retirement Fund Association who is new text end
190.13
new text begin reemployed by Independent School District No. 625, including providing service to the new text end
190.14
new text begin school district as an independent contractor or as an employee of an independent contractor.new text end
190.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
190.16 Sec. 7. Minnesota Statutes 2012, section 354A.12, subdivision 3a, is amended to read:
190.17 Subd. 3a.
Special direct state aid to first class city teachers retirement fund
190.18
associations. (a) The state shall pay $346,000
new text begin $6,346,000 as special direct state aid new text end to
190.19the Duluth Teachers Retirement Fund Association,
new text begin and new text end $2,827,000
new text begin $9,827,000new text end to the St.
190.20Paul Teachers Retirement Fund Association and, for the former Minneapolis Teachers
190.21Retirement Fund Association, $12,954,000 to the Teachers Retirement Association.
190.22 (b) The direct state aids under this subdivision are payable October 1 annually. The
190.23commissioner of management and budget shall pay the direct state aid
new text begin aids specified in new text end
190.24
new text begin this subdivisionnew text end . The amount
new text begin amounts new text end required under this subdivision is
new text begin arenew text end appropriated
190.25annually from the general fund to the commissioner of management and budget.
190.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment. new text end
190.27 Sec. 8. Minnesota Statutes 2012, section 354A.12, subdivision 3c, is amended to read:
190.28 Subd. 3c.
Termination of supplemental contributions and direct matching
190.29
and state aid. new text begin (a)new text end The supplemental contributions payable to the St. Paul Teachers
190.30Retirement Fund Association by Independent School District No. 625 under section
190.31423A.02, subdivision 3
, or the direct
new text begin and all forms of new text end state aid under subdivision 3a to the
190.32St. Paul Teachers Retirement Fund Association must continue until the current assets of
191.1the fund equal or exceed the actuarial accrued liability of the fund as determined in the
191.2most recent actuarial report for the fund by the actuary retained under section
356.214 or
191.3until
new text begin June 30, new text end 2037, whichever occurs earlier.
191.4
new text begin (b) The aid to the Duluth Teachers Retirement Fund Association under section new text end
191.5
new text begin 423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth new text end
191.6
new text begin Teachers Retirement Fund Association must continue until the current assets of the fund new text end
191.7
new text begin equal or exceed the actuarial accrued liability of the fund as determined in the most new text end
191.8
new text begin recent actuarial report for the fund by the actuary retained under section new text end
new text begin or until new text end
191.9
new text begin the established date for full funding under section 356.215, subdivision 11, whichever new text end
191.10
new text begin occurs earlier.new text end
191.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
191.12 Sec. 9. Minnesota Statutes 2012, section 354A.12, subdivision 7, is amended to read:
191.13 Subd. 7.
Recovery of benefit overpayments. (a) If the executive director discovers,
191.14within the time period specified in subdivision 8 following the payment of a refund or
191.15the accrual date of any retirement annuity, survivor benefit, or disability benefit, that
191.16benefit overpayment has occurred due to using invalid service or salary, or due to any
191.17erroneous calculation procedure, the executive director must recalculate the annuity or
191.18benefit payable and recover any overpayment. The executive director shall recover the
191.19overpayment by requiring direct repayment or by suspending or reducing the payment of a
191.20retirement annuity or other benefit payable under this chapter to the applicable person or
191.21the person's estate, whichever applies, until all outstanding amounts have been recovered.
191.22
new text begin If a benefit overpayment or improper payment of benefits occurred caused by a failure new text end
191.23
new text begin of the person to satisfy length of separation requirements for retirement under section new text end
191.24
new text begin 354A.011, subdivision 21, the executive director shall recover the improper payments by new text end
191.25
new text begin requiring direct repayment. The repayment must include interest at the rate of 0.71 percent new text end
191.26
new text begin per month from the first of the month in which a monthly benefit amount was paid to the new text end
191.27
new text begin first of the month in which the amount is repaid, with annual compounding.new text end
191.28(b) In the event the executive director determines that an overpaid annuity or benefit
191.29that is the result of invalid salary included in the average salary used to calculate the
191.30payment amount must be recovered, the executive director must determine the amount of
191.31the employee deductions taken in error on the invalid salary, with interest as determined
191.32under
354A.37, subdivision 3, and must subtract that amount from the total annuity or
191.33benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if
191.34any, must be recovered.
192.1(c) If the invalid employee deductions plus interest exceed the amount of the
192.2overpaid benefits, the balance must be refunded to the person to whom the benefit or
192.3annuity is being paid.
192.4(d) Any invalid employer contributions reported on the invalid salary must be
192.5credited against future contributions payable by the employer.
192.6(e) If a member or former member, who is receiving a retirement annuity or
192.7disability benefit for which an overpayment is being recovered, dies before recovery of the
192.8overpayment is completed and an optional annuity or refund is payable, the remaining
192.9balance of the overpaid annuity or benefit must continue to be recovered from the payment
192.10to the optional annuity beneficiary or refund recipient.
192.11(f) The board of trustees shall adopt policies directing the period of time and manner
192.12for the collection of any overpaid retirement or optional annuity, and survivor or disability
192.13benefit, or a refund that the executive director determines must be recovered as provided
192.14under this section.
192.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
192.16 Sec. 10. Minnesota Statutes 2012, section 354A.27, is amended by adding a
192.17subdivision to read:
192.18
new text begin Subd. 6a.new text end new text begin Postretirement adjustment transition.new text end new text begin (a) If the funded ratio of the new text end
192.19
new text begin retirement plan based on the actuarial value of assets is at least 90 percent as reported new text end
192.20
new text begin in the most recent actuarial valuation prepared under sections 356.214 and 356.215, new text end
192.21
new text begin this subdivision expires and subsequent postretirement adjustments are governed by new text end
192.22
new text begin subdivision 7.new text end
192.23
new text begin (b) Each annuity or benefit recipient of the retirement plan who has been receiving new text end
192.24
new text begin that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to new text end
192.25
new text begin receive a postretirement adjustment of one percent, payable on January 1.new text end
192.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013, and applies to the new text end
192.27
new text begin January 1, 2014, postretirement increase.new text end
192.28 Sec. 11. Minnesota Statutes 2012, section 354A.27, subdivision 7, is amended to read:
192.29 Subd. 7.
Calculation of postretirement adjustments. (a) This subdivision applies
192.30if subdivision 6
new text begin 6a new text end has expired.
192.31(b) A percentage adjustment must be computed and paid under this subdivision to
192.32eligible persons under subdivision 5. This adjustment is determined by reference to the
192.33Consumer Price Index for urban wage earners and clerical workers all items index as
193.1reported by the Bureau of Labor Statistics within the United States Department of Labor
193.2each year as part of the determination of annual cost-of-living adjustments to recipients
193.3of federal old-age, survivors, and disability insurance. For calculations of cost-of-living
193.4adjustments under paragraph (c), the term "average third quarter Consumer Price Index
193.5value" means the sum of the monthly index values as initially reported by the Bureau of
193.6Labor Statistics for the months of July, August, and September, divided by 3.
193.7(c) Before January 1 of each year, the executive director must calculate the amount
193.8of the cost-of-living adjustment by dividing the most recent average third quarter index
193.9value by the same average third quarter index value from the previous year, subtract one
193.10from the resulting quotient, and express the result as a percentage amount, which must be
193.11rounded to the nearest one-tenth of one percent.
193.12(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment
193.13to be applied as a permanent increase to the regular payment of each eligible member
193.14on January 1 of the next calendar year. For any eligible member whose effective date
193.15of benefit commencement occurred during the calendar year before the cost-of-living
193.16adjustment is applied, the full increase amount must be prorated on the basis of whole
193.17calendar quarters in benefit payment status in the calendar year prior to the January 1 on
193.18which the cost-of-living adjustment is applied, calculated to the third decimal place.
193.19(e) The adjustment must not be less than zero nor greater than five percent.
193.20(f) If the funding ratio of the plan as determined in the most recent actuarial
193.21valuation using the actuarial value of assets is less than 80 percent there will be no
193.22postretirement adjustment the following January 1.
193.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
193.24 Sec. 12. Minnesota Statutes 2012, section 354A.31, subdivision 3, is amended to read:
193.25 Subd. 3.
Resumption of teaching after commencement of a retirement annuity.
193.26 (a) Any person who retired and is receiving a coordinated program retirement annuity
193.27under the provisions of sections
354A.31 to
354A.41 or any person receiving a basic
193.28program retirement annuity under the governing sections in the articles of incorporation
193.29or bylaws and who has resumed teaching service for the school district in which the
193.30teachers retirement fund association exists is entitled to continue to receive retirement
193.31annuity payments, except that all or a portion of the annuity payments must be deferred
193.32during the calendar year immediately following the calendar year in which the person's
193.33salary from the teaching service is in an amount greater than $46,000. The amount of the
193.34annuity deferral is one-third the salary amount in excess of $46,000 and must be deducted
194.1from the annuity payable for the calendar year immediately following the calendar year
194.2in which the excess amount was earned.
194.3 (b) If the person is retired for only a fractional part of the calendar year during the
194.4initial year of retirement, the maximum reemployment salary exempt from triggering a
194.5deferral as specified in this subdivision must be prorated for that calendar year.
194.6 (c) After a person has reached the Social Security normal retirement age, no deferral
194.7requirement is applicable regardless of the amount of any compensation received for
194.8teaching service for the school district in which the teachers retirement fund association
194.9exists.
194.10 (d) The amount of the retirement annuity deferral must be handled or disposed
194.11of as provided in section
356.47.
194.12
new text begin (e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth new text end
194.13
new text begin Teachers Retirement Fund Association member whose effective date of retirement is after new text end
194.14
new text begin June 30, 2013, amounts specified as deferred under this subdivision must instead be new text end
194.15
new text begin forfeited to the Duluth Teachers Retirement Fund Association fund.new text end
194.16
new text begin (f) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul new text end
194.17
new text begin Teachers Retirement Fund Association basic or coordinated program member whose new text end
194.18
new text begin effective date of retirement is after June 30, 2013, amounts specified as deferred under new text end
194.19
new text begin this subdivision must instead be forfeited to the St. Paul Teachers Retirement Fund new text end
194.20
new text begin Association fund.new text end
194.21 (e)
new text begin (g) new text end For the purpose of this subdivision, salary from teaching service includes: (i)
194.22all income for services performed as a consultant or independent contractor; or income
194.23resulting from working with the school district in any capacity; and (ii) the greater of either
194.24the income received or an amount based on the rate paid with respect to an administrative
194.25position, consultant, or independent contractor in the school district in which the teachers
194.26retirement fund association exists and at the same level as the position occupied by the
194.27person who resumes teaching service.
194.28 (f)
new text begin (h) new text end On or before February 15 of each year, each applicable employing unit
194.29shall report to the teachers retirement fund association the amount of postretirement
194.30salary as defined in this subdivision, earned as a teacher, consultant, or independent
194.31contractor during the previous calendar year by each retiree of the teachers retirement
194.32fund association for teaching service performed after retirement. The report must be in
194.33a format approved by the executive secretary or director.
194.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective with respect to the Duluth Teachers new text end
194.35
new text begin Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul new text end
194.36
new text begin Teachers Retirement Fund Association the day following final enactment.new text end
195.1 Sec. 13. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
195.2 Subd. 4.
Computation of normal coordinated retirement annuity; St. Paul
195.3
fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
195.4Retirement Fund Association.
195.5(b) The normal coordinated retirement annuity is an amount equal to a retiring
195.6coordinated member's average salary under section
354A.011, subdivision 7a, multiplied
195.7by the retirement annuity formula percentage.
195.8(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
195.9became a member or a member in a pension fund listed in section
356.30, subdivision 3,
195.10before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces
195.11a higher annuity amount, in which case paragraph (d) will apply.
new text begin For service rendered new text end
195.12
new text begin before July 1, 2015, new text end the retirement annuity formula percentage for purposes of this
195.13paragraph is the percent specified in section
356.315, subdivision 1, per year for each year
195.14of coordinated service for the first ten years and the percent specified in section
356.315,
195.15subdivision 2
, for each year of coordinated service thereafter.
new text begin For service rendered after new text end
195.16
new text begin June 30, 2015, the retirement annuity formula percentage for purposes of this paragraph new text end
195.17
new text begin is the percent specified in section new text end
new text begin 356.315, subdivision 1anew text end new text begin , per year for each year of new text end
195.18
new text begin coordinated service for the first ten years and the percent specified in section new text end
new text begin 356.315, new text end
195.19new text begin subdivision 2bnew text end
new text begin , for each year of coordinated service thereafter.new text end
195.20(d) This paragraph applies to a person who has become at least 55 years old and who
195.21first becomes a member after June 30, 1989, and to any other member who has become
195.22at least 55 years old and whose annuity amount, when calculated under this paragraph
195.23and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
195.24(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
195.25percentage for purposes of this paragraph is the percent specified in section
356.315,
195.26subdivision 2
, for each year of coordinated service
new text begin rendered before July 1, 2015, and new text end
195.27
new text begin the percent specified in section 356.215, subdivision 2b, for each year of coordinated new text end
195.28
new text begin service thereafternew text end .
195.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
195.30 Sec. 14. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
195.31 Subd. 4a.
Computation of normal coordinated retirement annuity; Duluth
195.32
fund. (a) This subdivision applies to the new law coordinated program of the Duluth
195.33Teachers Retirement Fund Association.
196.1(b) The normal coordinated retirement annuity is an amount equal to a retiring
196.2coordinated member's average salary under section
354A.011, subdivision 7a, multiplied
196.3by the retirement annuity formula percentage.
196.4(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
196.5became a member or a member in a pension fund listed in section
356.30, subdivision 3,
196.6before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
196.7higher annuity amount, in which case paragraph (d) applies. The retirement annuity
196.8formula percentage for purposes of this paragraph is the percent specified in section
196.9356.315, subdivision 1
, per year for each year of coordinated
new text begin program new text end service for the first
196.10ten years
new text begin rendered through June 30, 2013, and the percent specified in section 356.315, new text end
196.11
new text begin subdivision 1a, per year for each year of coordinated program service rendered after June new text end
196.12
new text begin 30, 2013, new text end and the percent specified in section
356.315, subdivision 2, for each subsequent
196.13year of coordinated
new text begin program new text end service
new text begin through June 30, 2013, and the percent specified in new text end
196.14
new text begin section 356.315, subdivision 2b, per year for each year of coordinated program service new text end
196.15
new text begin rendered after June 30, 2013new text end .
196.16(d) This paragraph applies to a person who is at least 55 years old and who first
196.17becomes a member after June 30, 1989, and to any other member who is at least 55 years
196.18old and whose annuity amount, when calculated under this paragraph and in conjunction
196.19with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
196.20with subdivision 6. The retirement annuity formula percentage for purposes of this
196.21paragraph is the percent specified in section
356.315, subdivision 2, for each year of
196.22coordinated
new text begin program new text end service
new text begin through June 30, 2013, and the percent specified in section new text end
196.23
new text begin 356.315, subdivision 2b, per year for each year of coordinated program service rendered new text end
196.24
new text begin after June 30, 2013new text end .
196.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
196.26 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 7, is amended to read:
196.27 Subd. 7.
Actuarial Reduction for early retirement. new text begin (a) new text end This subdivision applies to
196.28a person who has become at least 55 years old and first becomes a coordinated member
196.29after June 30, 1989, and to any other coordinated member who has become at least 55
196.30years old and whose annuity is higher when calculated using the retirement annuity
196.31formula percentage in subdivision 4, paragraph (d), and
new text begin or new text end subdivision 4a, paragraph (d),
196.32
new text begin as applicable, new text end in conjunction with this subdivision than when calculated under subdivision
196.334, paragraph (c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.
196.34
new text begin (b)new text end A coordinated member who retires before the full benefit
new text begin normal retirement new text end
196.35age shall be paid the retirement annuity calculated using the retirement annuity formula
197.1percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d), reduced so
197.2that the reduced annuity is the actuarial equivalent of the annuity that would be payable
197.3to the member if the member deferred receipt of the annuity and the annuity amount
197.4were augmented at an annual rate of three percent compounded annually from the day
197.5the annuity begins to accrue until the normal retirement age if the employee became an
197.6employee before July 1, 2006, and at 2.5 percent compounded annually from the day the
197.7annuity begins to accrue until the normal retirement age if the person initially becomes a
197.8teacher after June 30, 2006.
new text begin whichever is applicable, multiplied by the applicable early new text end
197.9
new text begin retirement factor specified below:new text end
197.10
new text begin Under age 62new text end
new text begin Age 62 or oldernew text end
197.11
new text begin or less than 30 years of servicenew text end
new text begin with 30 years of servicenew text end
197.12
new text begin Normal retirement age:new text end
new text begin 65new text end
new text begin 66new text end
new text begin 65new text end
new text begin 66new text end
197.13
new text begin Age at retirementnew text end
197.14
new text begin 55new text end
new text begin 0.5376new text end
new text begin 0.4592new text end
197.15
new text begin 56new text end
new text begin 0.5745new text end
new text begin 0.4992new text end
197.16
new text begin 57new text end
new text begin 0.6092new text end
new text begin 0.5370new text end
197.17
new text begin 58new text end
new text begin 0.6419new text end
new text begin 0.5726new text end
197.18
new text begin 59new text end
new text begin 0.6726new text end
new text begin 0.6062new text end
197.19
new text begin 60new text end
new text begin 0.7354new text end
new text begin 0.6726new text end
197.20
new text begin 61new text end
new text begin 0.7947new text end
new text begin 0.7354new text end
197.21
new text begin 62new text end
new text begin 0.8507new text end
new text begin 0.7947new text end
new text begin 0.8831new text end
new text begin 0.8389new text end
197.22
new text begin 63new text end
new text begin 0.9035new text end
new text begin 0.8507new text end
new text begin 0.9246new text end
new text begin 0.8831new text end
197.23
new text begin 64new text end
new text begin 0.9533new text end
new text begin 0.9035new text end
new text begin 0.9635new text end
new text begin 0.9246new text end
197.24
new text begin 65new text end
new text begin 1.0000new text end
new text begin 0.9533new text end
new text begin 1.0000new text end
new text begin 0.9635new text end
197.25
new text begin 66new text end
new text begin 1.0000new text end
new text begin 1.0000new text end
197.26
new text begin For normal retirement ages between ages 65 and 66, the early retirement factors will new text end
197.27
new text begin be determined by linear interpolation between the early retirement factors applicable for new text end
197.28
new text begin normal retirement ages 65 and 66.new text end
197.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
197.30 Sec. 16. Minnesota Statutes 2012, section 354A.35, subdivision 2, is amended to read:
197.31 Subd. 2.
Death while eligible to retire; surviving spouse optional annuity. (a)
197.32The surviving spouse of a vested coordinated member who dies prior to retirement may
197.33elect to receive, instead of a refund with interest under subdivision 1, an annuity equal
197.34to the 100 percent joint and survivor annuity the member could have qualified for had
197.35the member terminated service on the date of death. The surviving spouse eligible for
197.36a surviving spouse benefit under this paragraph may apply for the annuity at any time
197.37after the date on which the deceased employee would have attained the required age for
198.1retirement based on the employee's allowable service. A surviving spouse eligible for
198.2surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time
198.3after the member's death. The member's surviving spouse shall be paid a joint and survivor
198.4annuity under section
354A.32 and computed under section
354A.31.
198.5(b) If the member was under age 55 and has credit for at least 30 years of allowable
198.6service on the date of death, the surviving spouse may elect to receive a 100 percent joint
198.7and survivor annuity based on the age of the member and surviving spouse on the date
198.8of death. The annuity is payable using the full early retirement reduction under section
198.9354A.31, subdivision 6
, paragraph (a), to age 55 and one-half of the early retirement
198.10reduction from age 55 to the age payment begins.
198.11(c) If a vested member
new text begin of the Duluth Teachers Retirement Fund Association new text end was
198.12under age 55 on the date of death but did not yet qualify for retirement, the surviving
198.13spouse may elect to receive the 100 percent joint and survivor annuity based on the age
198.14of the member and the survivor at the time of death. The annuity is payable using the
198.15full early retirement reduction under section
354A.31, subdivision 6 or 7, to age 55 and
198.16one-half of the early retirement reduction from age 55 to the date payment begins.
198.17
new text begin (d) If a vested member of the St. Paul Teachers Retirement Fund Association was new text end
198.18
new text begin under age 55 on the date of death but did not yet qualify for retirement, the surviving new text end
198.19
new text begin spouse may elect to receive the 100 percent joint and survivor annuity based on the age new text end
198.20
new text begin of the member and the survivor at the time of death. The annuity is payable using the new text end
198.21
new text begin full early retirement reduction under section new text end
new text begin 354A.31, subdivision 6new text end new text begin or 7, to age 55 and new text end
198.22
new text begin one-half of the actuarial equivalent reduction from age 55 to the date payment begins. new text end
198.23
new text begin The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial new text end
198.24
new text begin equivalent of the annuity that would be payable to the member if the member deferred new text end
198.25
new text begin receipt of the annuity and the annuity amount were augmented at an annual rate of 2.5 new text end
198.26
new text begin percent compounded annually from the day the annuity begins to accrue until the normal new text end
198.27
new text begin retirement age. new text end
198.28(d)
new text begin (e)new text end Sections
354A.37, subdivision 2, and
354A.39 apply to a deferred annuity
198.29or surviving spouse benefit payable under this section. The benefits are payable for the
198.30life of the surviving spouse, or upon expiration of the term certain benefit payment under
198.31subdivision 2b.
198.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
198.33 Sec. 17. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
199.1 Subd. 8.
Interest and salary assumptions. (a) The actuarial valuation must use
199.2the applicable following preretirement interest assumption and the applicable following
199.3postretirement interest assumption:
199.4(1) select and ultimate interest rate assumption
199.5
199.6
199.7
199.8
plan
ultimate
preretirement
interest rate
assumption
ultimate
postretirement
interest rate
assumption
199.9
general state employees retirement plan
8.5%
6.0%
199.10
correctional state employees retirement plan
8.5
6.0
199.11
State Patrol retirement plan
8.5
6.0
199.12
199.13
199.14
legislators retirement plan
0.0
-2.0 until June 30,
2040, and -2.5 after
June 30, 2040
199.15
199.16
199.17
elective state officers retirement plan
0.0
-2.0 until June 30,
2040, and -2.5 after
June 30, 2040
199.18
judges retirement plan
8.5
6.0
199.19
general public employees retirement plan
8.5
6.0
199.20
public employees police and fire retirement plan
8.5
6.0
199.21
199.22
local government correctional service
retirement plan
8.5
6.0
199.23
teachers retirement plan
8.5
6.0
199.24
Duluth teachers retirement plan
8.5
8.5
199.25
St. Paul teachers retirement plan
8.5
8.5
199.26Except for the legislators retirement plan and the elective state officers retirement
199.27plan, the select preretirement interest rate assumption for the period after June 30, 2012,
199.28through June 30, 2017, is 8.0 percent. Except for the legislators retirement plan and the
199.29elective state officers retirement plan, the select postretirement interest rate assumption for
199.30the period after June 30, 2012, through June 30, 2017, is 5.5 percent, except for the Duluth
199.31teachers retirement plan and the St. Paul teachers retirement plan, each with a select
199.32postretirement interest rate assumption for the period after June 30, 2012, through June
199.3330, 2017, of 8.0 percent.
199.34(2) single rate preretirement and postretirement interest rate assumption
199.35
199.36
plan
interest rate
assumption
199.37
Bloomington Fire Department Relief Association
6.0
199.38
199.39
local monthly benefit volunteer firefighters relief
associations
5.0
199.40 (b) The actuarial valuation must use the applicable following single rate future salary
199.41increase assumption, the applicable following modified single rate future salary increase
199.42assumption, or the applicable following graded rate future salary increase assumption:
200.1 (1) single rate future salary increase assumption
200.2
plan
future salary increase assumption
200.3
legislators retirement plan
5.0%
200.4
judges retirement plan
3.0
200.5
200.6
Bloomington Fire Department Relief
Association
4.0
200.7 (2) age-related future salary increase age-related select and ultimate future salary
200.8increase assumption or graded rate future salary increase assumption
200.9
plan
future salary increase assumption
200.10
local government correctional service retirement plan
assumption C
200.11
Duluth teachers retirement plan
assumption A
200.12
St. Paul teachers retirement plan
assumption B
200.13For plans other than the Duluth teachers
200.14retirement plan, the select calculation
200.15is: during the designated select period, a
200.16designated percentage rate is multiplied by
200.17the result of the designated integer minus T,
200.18where T is the number of completed years
200.19of service, and is added to the applicable
200.20future salary increase assumption. The
200.21designated select period is ten years and the
200.22designated integer is ten for all retirement
200.23plans covered by this clause
new text begin the Duluth new text end
200.24
new text begin Teachers Retirement Fund Association new text end
200.25
new text begin and for the local government correctional new text end
200.26
new text begin service retirement plan and 15 for the St. new text end
200.27
new text begin Paul Teachers Retirement Fund Associationnew text end .
200.28The designated percentage rate is 0.3
new text begin 0.2 new text end
200.29percent for the St. Paul Teachers Retirement
200.30Fund Association. The select calculation
200.31for the Duluth Teachers Retirement Fund
200.32Association is 8.00 percent per year for
200.33service years one through seven, 7.25 percent
200.34per year for service years seven and eight,
200.35and 6.50 percent per year for service years
200.36eight and nine.
200.37 The ultimate future salary increase assumption is:
201.1
age
A
B
C
201.2
16
8.00%new text begin 6.00%new text end
6.90%new text begin 5.90%new text end
9.00%
201.3
17
8.00new text begin 6.00new text end
6.90new text begin 5.90new text end
9.00
201.4
18
8.00new text begin 6.00new text end
6.90new text begin 5.90new text end
9.00
201.5
19
8.00new text begin 6.00new text end
6.90new text begin 5.90new text end
9.00
201.6
20
6.90new text begin 6.00new text end
6.90new text begin 5.90new text end
9.00
201.7
21
6.90new text begin 6.00new text end
6.90new text begin 5.90new text end
8.75
201.8
22
6.90new text begin 6.00new text end
6.90new text begin 5.90new text end
8.50
201.9
23
6.85new text begin 6.00new text end
6.85new text begin 5.85new text end
8.25
201.10
24
6.80new text begin 6.00new text end
6.80new text begin 5.80new text end
8.00
201.11
25
6.75new text begin 6.00new text end
6.75new text begin 5.75new text end
7.75
201.12
26
6.70new text begin 6.00new text end
6.70new text begin 5.70new text end
7.50
201.13
27
6.65new text begin 6.00new text end
6.65new text begin 5.65new text end
7.25
201.14
28
6.60new text begin 6.00new text end
6.60new text begin 5.60new text end
7.00
201.15
29
6.55new text begin 6.00new text end
6.55new text begin 5.55new text end
6.75
201.16
30
6.50new text begin 6.00new text end
6.50new text begin 5.50new text end
6.75
201.17
31
6.45new text begin 6.00new text end
6.45new text begin 5.45new text end
6.50
201.18
32
6.40new text begin 6.00new text end
6.40new text begin 5.40new text end
6.50
201.19
33
6.35new text begin 6.00new text end
6.35new text begin 5.35new text end
6.50
201.20
34
6.30new text begin 6.00new text end
6.30new text begin 5.30new text end
6.25
201.21
35
6.25new text begin 6.00new text end
6.25new text begin 5.25new text end
6.25
201.22
36
6.20new text begin 5.86new text end
6.20new text begin 5.20new text end
6.00
201.23
37
6.15new text begin 5.73new text end
6.15new text begin 5.15new text end
6.00
201.24
38
6.10new text begin 5.59new text end
6.10new text begin 5.10new text end
6.00
201.25
39
6.05new text begin 5.45new text end
6.05new text begin 5.05new text end
5.75
201.26
40
6.00new text begin 5.31new text end
6.00new text begin 5.00new text end
5.75
201.27
41
5.90new text begin 5.18new text end
5.95new text begin 4.95new text end
5.75
201.28
42
5.80new text begin 5.04new text end
5.90new text begin 4.90new text end
5.50
201.29
43
5.70new text begin 4.90new text end
5.85new text begin 4.85new text end
5.25
201.30
44
5.60new text begin 4.76new text end
5.80new text begin 4.80new text end
5.25
201.31
45
5.50new text begin 4.63new text end
5.75new text begin 4.75new text end
5.00
201.32
46
5.40new text begin 4.49new text end
5.70new text begin 4.70new text end
5.00
201.33
47
5.30new text begin 4.35new text end
5.65new text begin 4.65new text end
5.00
201.34
48
5.20new text begin 4.21new text end
5.60new text begin 4.60new text end
5.00
201.35
49
5.10new text begin 4.08new text end
5.55new text begin 4.55new text end
5.00
201.36
50
5.00new text begin 3.94new text end
5.50new text begin 4.50new text end
5.00
201.37
51
4.90new text begin 3.80new text end
5.45new text begin 4.45new text end
5.00
201.38
52
4.80new text begin 3.66new text end
5.40new text begin 4.40new text end
5.00
201.39
53
4.70new text begin 3.53new text end
5.35new text begin 4.35new text end
5.00
201.40
54
4.60new text begin 3.39new text end
5.30new text begin 4.30new text end
5.00
201.41
55
4.50new text begin 3.25new text end
5.25new text begin 4.25new text end
4.75
201.42
56
4.40new text begin 3.25new text end
5.20new text begin 4.20new text end
4.75
201.43
57
4.30new text begin 3.25new text end
5.15new text begin 4.15new text end
4.50
202.1
58
4.20new text begin 3.25new text end
5.10new text begin 4.10new text end
4.25
202.2
59
4.10new text begin 3.25new text end
5.05new text begin 4.05new text end
4.25
202.3
60
4.00new text begin 3.25new text end
5.00new text begin 4.00new text end
4.25
202.4
61
3.90new text begin 3.25new text end
5.00new text begin 4.00new text end
4.25
202.5
62
3.80new text begin 3.25new text end
5.00new text begin 4.00new text end
4.25
202.6
63
3.70new text begin 3.25new text end
5.00new text begin 4.00new text end
4.25
202.7
64
3.60new text begin 3.25new text end
5.00new text begin 4.00new text end
4.25
202.8
65
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.9
66
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.10
67
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.11
68
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.12
69
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.13
70
3.50new text begin 3.25new text end
5.00new text begin 4.00new text end
4.00
202.14(3) service-related ultimate future salary increase assumption
202.15
202.16
general state employees retirement plan of the
Minnesota State Retirement System
assumption A
202.17
202.18
general employees retirement plan of the Public
Employees Retirement Association
assumption B
202.19
Teachers Retirement Association
assumption C
202.20
public employees police and fire retirement plan
assumption D
202.21
State Patrol retirement plan
assumption E
202.22
202.23
correctional state employees retirement plan of the
Minnesota State Retirement System
assumption F
202.24
202.25
service
length
A
B
C
D
E
F
202.26
1
10.50%
12.03%
12.00%
13.00%
8.00%
6.00%
202.27
2
8.10
8.90
9.00
11.00
7.50
5.85
202.28
3
6.90
7.46
8.00
9.00
7.00
5.70
202.29
4
6.20
6.58
7.50
8.00
6.75
5.55
202.30
5
5.70
5.97
7.25
6.50
6.50
5.40
202.31
6
5.30
5.52
7.00
6.10
6.25
5.25
202.32
7
5.00
5.16
6.85
5.80
6.00
5.10
202.33
8
4.70
4.87
6.70
5.60
5.85
4.95
202.34
9
4.50
4.63
6.55
5.40
5.70
4.80
202.35
10
4.40
4.42
6.40
5.30
5.55
4.65
202.36
11
4.20
4.24
6.25
5.20
5.40
4.55
202.37
12
4.10
4.08
6.00
5.10
5.25
4.45
202.38
13
4.00
3.94
5.75
5.00
5.10
4.35
202.39
14
3.80
3.82
5.50
4.90
4.95
4.25
202.40
15
3.70
3.70
5.25
4.80
4.80
4.15
202.41
16
3.60
3.60
5.00
4.80
4.65
4.05
202.42
17
3.50
3.51
4.75
4.80
4.50
3.95
202.43
18
3.50
3.50
4.50
4.80
4.35
3.85
203.1
19
3.50
3.50
4.25
4.80
4.20
3.75
203.2
20
3.50
3.50
4.00
4.80
4.05
3.75
203.3
21
3.50
3.50
3.90
4.70
4.00
3.75
203.4
22
3.50
3.50
3.80
4.60
4.00
3.75
203.5
23
3.50
3.50
3.70
4.50
4.00
3.75
203.6
24
3.50
3.50
3.60
4.50
4.00
3.75
203.7
25
3.50
3.50
3.50
4.50
4.00
3.75
203.8
26
3.50
3.50
3.50
4.50
4.00
3.75
203.9
27
3.50
3.50
3.50
4.50
4.00
3.75
203.10
28
3.50
3.50
3.50
4.50
4.00
3.75
203.11
29
3.50
3.50
3.50
4.50
4.00
3.75
203.12
30 or more
3.50
3.50
3.50
4.50
4.00
3.75
203.13 (c) The actuarial valuation must use the applicable following payroll growth
203.14assumption for calculating the amortization requirement for the unfunded actuarial
203.15accrued liability where the amortization retirement is calculated as a level percentage
203.16of an increasing payroll:
203.17
plan
payroll growth assumption
203.18
203.19
general state employees retirement plan of the
Minnesota State Retirement System
3.75%
203.20
correctional state employees retirement plan
3.75
203.21
State Patrol retirement plan
3.75
203.22
judges retirement plan
3.00
203.23
203.24
general employees retirement plan of the Public
Employees Retirement Association
3.75
203.25
public employees police and fire retirement plan
3.75
203.26
local government correctional service retirement plan
3.75
203.27
teachers retirement plan
3.75
203.28
Duluth teachers retirement plan
4.50new text begin 3.50new text end
203.29
St. Paul teachers retirement plan
5.00new text begin 4.00new text end
203.30 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
203.31different salary assumption or a different payroll increase assumption:
203.32 (1) has been proposed by the governing board of the applicable retirement plan;
203.33 (2) is accompanied by the concurring recommendation of the actuary retained under
203.34section
356.214, subdivision 1, if applicable, or by the approved actuary preparing the
203.35most recent actuarial valuation report if section
356.214 does not apply; and
203.36 (3) has been approved or deemed approved under subdivision 18.
203.37
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
203.38 Sec. 18. Minnesota Statutes 2012, section 356.47, subdivision 1, is amended to read:
204.1 Subdivision 1.
Application. new text begin (a) new text end This section applies to the balance of annual
204.2retirement annuities on the amount of retirement annuity reductions after reemployed
204.3annuitant earnings limitations for retirement plans governed by section
352.115,
204.4subdivision 10
;
353.37;
354.44, subdivision 5; or
354A.31, subdivision 3.
204.5
new text begin (b) This section also applies to the balance of annual retirement annuities on new text end
204.6
new text begin the amount of retirement annuity reductions under section 354A.31, subdivision 3, for new text end
204.7
new text begin members of the Duluth Teachers Retirement Fund Association whose effective date of new text end
204.8
new text begin retirement is before July 1, 2013.new text end
204.9
new text begin (c) This section also applies to the balance of annual retirement annuities on new text end
204.10
new text begin the amount of retirement annuity reductions under section 354A.31, subdivision 3, for new text end
204.11
new text begin members of the St. Paul Teachers Retirement Fund Association whose effective date of new text end
204.12
new text begin retirement is before July 1, 2013.new text end
204.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective with respect to the Duluth Teachers new text end
204.14
new text begin Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul new text end
204.15
new text begin Teachers Retirement Fund Association the day following final enactment.new text end
204.16 Sec. 19. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
204.17 Subd. 5.
Termination of state aid programs. The amortization state aid,
204.18supplemental amortization state aid, and additional amortization state aid programs
204.19terminate as of the December 31, next following the date of the actuarial valuation when
204.20the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial accrued
204.21liability of that plan or December 31, 2009
new text begin June 30, 2037new text end , whichever is later
new text begin earliernew text end .
204.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
204.23 Sec. 20.
new text begin DULUTH TEACHERS RETIREMENT FUND ASSOCIATION BYLAW new text end
204.24
new text begin AMENDMENT AUTHORIZATION.new text end
204.25
new text begin Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the Duluth new text end
204.26
new text begin Teachers Retirement Fund Association is authorized to amend its articles of incorporation new text end
204.27
new text begin or its bylaws to specify the revised contribution rates under sections 3 and 4, required new text end
204.28
new text begin employee contributions on behalf of reemployed annuitants as specified under section 5, new text end
204.29
new text begin and revised treatment of reemployed annuitant holding accounts under sections 12 and 18.new text end
204.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
204.31 Sec. 21.
new text begin ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BYLAW new text end
204.32
new text begin AMENDMENT AUTHORIZATION.new text end
205.1
new text begin Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the St. Paul new text end
205.2
new text begin Teachers Retirement Fund Association is authorized to amend its articles of incorporation new text end
205.3
new text begin or its bylaws to apply the reduction factors stated in section 15 rather than the actuarial new text end
205.4
new text begin reduction factors previously authorized.new text end
205.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
205.6 Sec. 22.
new text begin CONSOLIDATION STUDY.new text end
205.7
new text begin The boards and executive directors of the Duluth Teachers Retirement Fund new text end
205.8
new text begin Association, the St. Paul Teachers Retirement Fund Association, and the Teachers new text end
205.9
new text begin Retirement Association shall jointly study and develop a report on the feasibility and new text end
205.10
new text begin requirements necessary for the consolidation of the Duluth Teachers Retirement Fund new text end
205.11
new text begin Association and the St. Paul Teachers Retirement Fund Association into the Teachers new text end
205.12
new text begin Retirement Association. The report shall include detailed actuarial analysis that will define new text end
205.13
new text begin the financial requirements for consolidating with the Teachers Retirement Association new text end
205.14
new text begin in a manner, consistent with past practice, that assures that the assets of the Teachers new text end
205.15
new text begin Retirement Association are protected, that the merging funds are fully funded, and that the new text end
205.16
new text begin Teachers Retirement Association is not subsidizing the merged funds. The report shall new text end
205.17
new text begin include implementation plans, proposed allocation of costs between the state and all new text end
205.18
new text begin interested parties, time frames sufficient for an orderly transition, necessary management new text end
205.19
new text begin and administrative changes, asset investment related considerations, and education and new text end
205.20
new text begin communication plans to fully inform the executive branch, the legislative branch, and all new text end
205.21
new text begin system stakeholders of financial requirements. The report shall include plans to treat new text end
205.22
new text begin the employees of the Duluth Teachers Retirement Fund Association and the St. Paul new text end
205.23
new text begin Teachers Retirement Fund Association in a manner comparable to that provided to the new text end
205.24
new text begin former employees of the former Minneapolis Teachers Retirement Fund Association upon new text end
205.25
new text begin consolidation into the Teachers Retirement Fund Association. The boards and executive new text end
205.26
new text begin directors shall consult with the executive director of the State Board of Investment on new text end
205.27
new text begin investment management transition issues. The report must be submitted to the Legislative new text end
205.28
new text begin Commission on Pensions and Retirement by January 6, 2014.new text end
205.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
205.30 Sec. 23.
new text begin REPEALER.new text end
205.31
new text begin Minnesota Statutes 2012, section 354A.27, subdivision 6,new text end new text begin is repealed.new text end
206.1
ARTICLE 14
206.2
JUDGES RETIREMENT PLAN FINANCIAL SOLVENCY MEASURES
206.3 Section 1. Minnesota Statutes 2012, section 356.315, is amended by adding a
206.4subdivision to read:
206.5
new text begin Subd. 8a.new text end new text begin Judges plan.new text end new text begin The applicable benefit accrual rate is 2.5 percent.new text end
206.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
206.7 Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
206.8 Subdivision 1.
Annual postretirement adjustments; generally. (a) Except as
206.9otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e,
new text begin or 1f, new text end retirement annuity, disability
206.10benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
206.11postretirement adjustment annually on January 1, as follows:
206.12(1) a postretirement increase of 2.5 percent must be applied each year, effective
206.13January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
206.14been receiving an annuity or a benefit for at least 12 full months prior to the January 1
206.15increase; and
206.16(2) for each annuitant or benefit recipient who has been receiving an annuity or a
206.17benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
206.18percent for each month that the person has been receiving an annuity or benefit must be
206.19applied, effective on January 1 following the calendar year in which the person has been
206.20retired for less than 12 months.
206.21(b) The increases provided by this subdivision commence on January 1, 2010.
206.22(c) An increase in annuity or benefit payments under this section must be made
206.23automatically unless written notice is filed by the annuitant or benefit recipient with the
206.24executive director of the covered retirement plan requesting that the increase not be made.
206.25(d) The retirement annuity payable to a person who retires before becoming eligible
206.26for Social Security benefits and who has elected the optional payment as provided in
206.27section
353.29, subdivision 6, must be treated as the sum of a period certain retirement
206.28annuity and a life retirement annuity for the purposes of any postretirement adjustment.
206.29The period certain retirement annuity plus the life retirement annuity must be the
206.30annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
206.31adjustment granted on the period certain retirement annuity must terminate when the
206.32period certain retirement annuity terminates.
206.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
207.1 Sec. 3. Minnesota Statutes 2012, section 356.415, is amended by adding a subdivision
207.2to read:
207.3
new text begin Subd. 1f.new text end new text begin Annual postretirement adjustments; Minnesota State Retirement new text end
207.4
new text begin System judges retirement plan.new text end new text begin (a) The increases provided under this subdivision begin new text end
207.5
new text begin on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement new text end
207.6
new text begin annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.new text end
207.7
new text begin (b) Retirement annuity, disability benefit, or survivor benefit recipients of the new text end
207.8
new text begin judges retirement plan are entitled to a postretirement adjustment annually on January new text end
207.9
new text begin 1, as follows:new text end
207.10
new text begin (1) a postretirement increase of 1.75 percent must be applied each year, effective new text end
207.11
new text begin on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient new text end
207.12
new text begin who has been receiving an annuity or a benefit for at least 18 full months before the new text end
207.13
new text begin January 1 increase; andnew text end
207.14
new text begin (2) for each annuitant or benefit recipient who has been receiving an annuity or a new text end
207.15
new text begin benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75 new text end
207.16
new text begin percent for each month that the person has been receiving an annuity or benefit must be new text end
207.17
new text begin applied, effective January 1, following the calendar year in which the person has been new text end
207.18
new text begin retired for at least six months, but has been retired for less than 18 months.new text end
207.19
new text begin (c) Increases under this subdivision terminate on December 31 of the calendar new text end
207.20
new text begin year in which the actuarial valuation prepared by the approved actuary under sections new text end
207.21
new text begin 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative new text end
207.22
new text begin Commission on Pensions and Retirement indicates that the market value of assets of the new text end
207.23
new text begin judges retirement plan equals or exceeds 70 percent of the actuarial accrued liability of new text end
207.24
new text begin the retirement plan. Increases under subdivision 1 or 1a, whichever is applicable, begin new text end
207.25
new text begin on the January 1 next following that date.new text end
207.26
new text begin (d) An increase in annuity or benefit payments under this subdivision must be made new text end
207.27
new text begin automatically unless written notice is filed by the annuitant or benefit recipient with the new text end
207.28
new text begin executive director of the applicable covered retirement plan requesting that the increase new text end
207.29
new text begin not be made.new text end
207.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
207.31 Sec. 4. Minnesota Statutes 2012, section 490.121, subdivision 21f, is amended to read:
207.32 Subd. 21f.
Normal retirement date. new text begin (a) For a judge in the tier I program, new text end "normal
207.33retirement date" means the date a
new text begin the new text end judge attains the age of 65.
207.34
new text begin (b) For a judge in the tier II program, normal retirement date means the date the new text end
207.35
new text begin judge attains age 66.new text end
208.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
208.2 Sec. 5. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
208.3 Subd. 22.
Service credit limit. "Service credit limit" means
new text begin , for a judge covered new text end
208.4
new text begin by tier I,new text end the greater of: (1) 24 years of allowable service under this chapter; or (2)
new text begin ,new text end for
208.5judges
new text begin a judge new text end with allowable service rendered before July 1, 1980, the number of years of
208.6allowable service under chapter 490, which, when multiplied by the percentage listed in
208.7section
356.315, subdivision 7 or 8, whichever is applicable to each year of service, equals
208.876.8.
new text begin For a judge covered by tier II, there is no service credit limit.new text end
208.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
208.10 Sec. 6. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
208.11to read:
208.12
new text begin Subd. 25.new text end new text begin Tier I.new text end new text begin "Tier I" is the benefit program of the retirement plan with a new text end
208.13
new text begin membership specified by section 490.1221, paragraph (b), and governed by sections new text end
208.14
new text begin 356.315, subdivisions 7 and 8; 356.415, subdivisions 1 and 1f; and 490.121 to 490.133, new text end
208.15
new text begin except as modified in sections 356.315, subdivision 8a; 490.121, subdivision 21f, new text end
208.16
new text begin paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 490.124, subdivision new text end
208.17
new text begin 1, paragraphs (c) and (d).new text end
208.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
208.19 Sec. 7. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
208.20to read:
208.21
new text begin Subd. 26.new text end new text begin Tier II.new text end new text begin "Tier II" is the benefit program of the retirement plan with a new text end
208.22
new text begin membership specified by section 490.1221, paragraph (c), and governed by sections new text end
208.23
new text begin 356.315, subdivision 8a; 356.415, subdivisions 1 and 1f; 490.121 to 490.133, as modified new text end
208.24
new text begin in section 490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a, new text end
208.25
new text begin paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).new text end
208.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
208.27 Sec. 8.
new text begin [490.1221] JUDGES PLAN PROGRAMS.new text end
208.28
new text begin (a) Members of the judges retirement plan are members of either the tier I or tier II new text end
208.29
new text begin program.new text end
208.30
new text begin (b) A tier I program judge is a person who was first appointed or elected as a judge new text end
208.31
new text begin before July 1, 2013, who was not eligible for the tier II program because the judge had new text end
209.1
new text begin five or more years of allowable service on or before December 30, 2013, or did not elect new text end
209.2
new text begin that program.new text end
209.3
new text begin (c) A tier II program judge is a person who:new text end
209.4
new text begin (1) was first appointed or elected as a judge after June 30, 2013; ornew text end
209.5
new text begin (2) was first appointed or elected as a judge before July 1, 2013, had less than five new text end
209.6
new text begin years of allowable service on or before December 30, 2013, and made an election under new text end
209.7
new text begin section 14 to be in the tier II program.new text end
209.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
209.9 Sec. 9.
new text begin [490.1222] APPLICATION OF SERVICE CREDIT LIMIT.new text end
209.10
new text begin The service credit limit specified in section 490.121, subdivision 22, does not apply new text end
209.11
new text begin to a judge in the tier II program.new text end
209.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
209.13 Sec. 10. Minnesota Statutes 2012, section 490.123, subdivision 1a, is amended to read:
209.14 Subd. 1a.
Member contribution rates. (a) A judge who is covered by the federal
209.15Old Age, Survivors, Disability, and Health Insurance Program and
new text begin in the tier I program new text end
209.16whose service does not exceed the service credit limit in section
490.121, subdivision 22,
209.17shall contribute to the fund from each salary payment a sum equal to 8.00
new text begin 9.00 new text end percent
209.18of salary.
209.19
new text begin (b) A judge in the tier II program shall contribute to the fund from each salary new text end
209.20
new text begin payment a sum equal to 7.00 percent of salary.new text end
209.21 (b) The contribution
new text begin (c) Contributions new text end under this subdivision is
new text begin are new text end payable by salary
209.22deduction. The deduction must be made by the state court administrator under section
209.23352.04
, subdivisions 4, 5, and 8.
209.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning on the first day of the first new text end
209.25
new text begin full payroll period following an increase in judicial salaries of at least one percent due to new text end
209.26
new text begin action by the legislature during calendar year 2013 or later.new text end
209.27 Sec. 11. Minnesota Statutes 2012, section 490.123, subdivision 1b, is amended to read:
209.28 Subd. 1b.
Employer contribution rate. (a) The employer contribution rate to the
209.29fund on behalf of a judge is 20.5
new text begin 22.5 new text end percent of salary. The employer obligation continues
209.30after a judge exceeds the service credit limit in section
490.121, subdivision 22.
209.31 (b) The employer contribution must be paid by the state court administrator. The
209.32employer contribution is payable at the same time as member contributions are made
210.1under subdivision 1a or as employee contributions are made to the unclassified program
210.2governed by chapter 352D for judges whose service exceeds the limit in section
490.121,
210.3subdivision 22, are remitted.
210.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the first day of the first full payroll new text end
210.5
new text begin period after June 30, 2013.new text end
210.6 Sec. 12. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
210.7 Subdivision 1.
Basic Retirement annuity. (a) Except as qualified hereinafter from
210.8and after the mandatory retirement date, the normal retirement date, the early retirement
210.9date, or one year from the disability retirement date, as the case may be, a retiring judge is
210.10eligible to receive a retirement annuity from the judges' retirement fund.
210.11 (b)
new text begin For a tier I program judge, new text end the retirement annuity is an amount equal to:
210.12 (1) the percent specified in section
356.315, subdivision 7, multiplied by the judge's
210.13final average compensation with that result then multiplied by the number of years and
210.14fractions of years of allowable service rendered before July 1, 1980; plus
210.15 (2) the percent specified in section
356.315, subdivision 8, multiplied by the judge's
210.16final average compensation with that result then multiplied by the number of years and
210.17fractions of years of allowable service rendered after June 30, 1980.
210.18
new text begin (c) For a tier II program judge who was first appointed or elected as a judge before new text end
210.19
new text begin July 1, 2013, the retirement annuity is an amount equal to:new text end
210.20
new text begin (1) the percent specified in section 356.315, subdivision 8, multiplied by the judge's new text end
210.21
new text begin final average compensation with that result then multiplied by the number of years and new text end
210.22
new text begin fractions of years of allowable service rendered before January 1, 2014; plusnew text end
210.23
new text begin (2) the percentage specified in section 356.315, subdivision 8a, multiplied by the new text end
210.24
new text begin judge's final average compensation with that result then multiplied by the number of years new text end
210.25
new text begin and fractions of years of allowable service rendered after December 31, 2013.new text end
210.26
new text begin (d) For a tier II program judge who was first appointed or elected as a judge after new text end
210.27
new text begin June 30, 2013, the retirement annuity is an amount equal to the percent specified in section new text end
210.28
new text begin 356.315, new text end new text begin subdivision 8a, multiplied by the judge's final average compensation with that new text end
210.29
new text begin result then multiplied by the number of years and fractions of years of allowable service.new text end
210.30 (c)
new text begin (e) For a judge in the tier I program, new text end service that exceeds the service credit limit in
210.31section
490.121, subdivision 22, must be excluded in calculating the retirement annuity, but
210.32the compensation earned by the judge during this period of judicial service must be used in
210.33determining a judge's final average compensation and calculating the retirement annuity.
210.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
211.1 Sec. 13.
new text begin MEMBER CONTRIBUTION INCREASE CONDITION.new text end
211.2
new text begin Any increase in judicial salaries enacted by the legislature during calendar year 2013 new text end
211.3
new text begin or later is not applicable to a judge in the tier I program if the member contribution rate new text end
211.4
new text begin applicable to that judge in the tier I program under Minnesota Statutes, section 490.123, new text end
211.5
new text begin subdivision 1a, is not deducted from the salary of the judge.new text end
211.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
211.7 Sec. 14.
new text begin TIER II PROGRAM ELECTION; PRE-JULY 1, 2013, JUDGES.new text end
211.8
new text begin Subdivision 1.new text end new text begin Authority.new text end new text begin A person who was first appointed or elected as a judge new text end
211.9
new text begin covered by the Minnesota State Retirement System judges retirement plan before July 1, new text end
211.10
new text begin 2013, is eligible to elect treatment as a tier II program judge if the judge has less than five new text end
211.11
new text begin years of allowable service on the date the judge makes a valid election under subdivision 2.new text end
211.12
new text begin Subd. 2.new text end new text begin Election procedure.new text end new text begin An eligible judge under subdivision 1 may elect to new text end
211.13
new text begin be subject to the provisions of Minnesota Statutes, chapter 490, applicable to a tier II new text end
211.14
new text begin program judge rather than the tier I program by electing that treatment in writing before new text end
211.15
new text begin January 1, 2014, on a form provided by the executive director of the Minnesota State new text end
211.16
new text begin Retirement System.new text end
211.17
new text begin Subd. 3.new text end new text begin Effect of election.new text end new text begin (a) The election is irrevocable.new text end
211.18
new text begin (b) An eligible judge who fails to make an election remains in the tier I program.new text end
211.19
new text begin (c) If the tier II program is elected by an eligible judge, member contributions based on new text end
211.20
new text begin revised member contribution rates under Minnesota Statutes, section 490.123, subdivision new text end
211.21
new text begin 1a, begin on the first day of the first full pay period occurring after January 1, 2014.new text end
211.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2013.new text end
211.23
ARTICLE 15
211.24
MISCELLANEOUS PROVISIONS
211.25 Section 1. Minnesota Statutes 2012, section 356.91, is amended to read:
211.26
356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
211.27 (a) Upon written authorization of a person receiving an annuity from a public
211.28pension fund administered by the Minnesota State Retirement System or the Public
211.29Employees Retirement Association, the executive director of the public pension fund may
211.30
new text begin shallnew text end deduct from the retirement annuity an amount requested by the annuitant to be paid
211.31as
new text begin membership new text end dues
new text begin or other payments new text end to any labor organization that is an exclusive
211.32bargaining agent representing public employees or an organization representing retired
212.1public employees of which the annuitant is a member and shall
new text begin , on a monthly basis,new text end pay
212.2the amount to the organization so designated by the annuitant.
212.3 (b) A pension fund and the plan fiduciaries which authorize or administer deductions
212.4of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit
212.5the dues amounts, provided that the fund and the fiduciaries have acted in good faith.
212.6 (c) The deductions under paragraph (a) may occur no more frequently than two times
212.7per year and may not be used for political purposes.
new text begin Any labor organization that is an new text end
212.8
new text begin exclusive bargaining agent representing public employees or an organization representing new text end
212.9
new text begin retired public employees may conduct blind mailings to the annuitants of a retirement new text end
212.10
new text begin system specified in paragraph (a) by requesting that the retirement system mail voluntary new text end
212.11
new text begin membership information and dues deduction cards to annuitants. Such mailings shall not new text end
212.12
new text begin be for the purpose of supporting or opposing any candidate, political party, or ballot new text end
212.13
new text begin measure. The organization requesting the blind mailing shall pay all costs associated new text end
212.14
new text begin with these mailings, including but not limited to copying, labeling, mailing, postage, and new text end
212.15
new text begin record keeping. In lieu of administering a blind mailing in-house, a retirement system new text end
212.16
new text begin may transmit annuitant data necessary for conducting a blind mailing to a mail center new text end
212.17
new text begin pursuant to a secure data share agreement with the mail center which provides that neither new text end
212.18
new text begin the organization nor any other entity shall have direct access to the data transmitted by new text end
212.19
new text begin the retirement system. The retirement system shall have no obligation to approve or new text end
212.20
new text begin disapprove, or otherwise be responsible for, the content of the mailings. No organization new text end
212.21
new text begin shall conduct more than two blind mailings per calendar year.new text end
212.22 (d) Any labor organization specified in paragraph (a) shall reimburse the public
212.23pension fund for the administrative expense of withholding premium amounts.
212.24
ARTICLE 16
212.25
APPROPRIATIONS
212.26 Section 1.
new text begin JUDICIARY.new text end
212.27
new text begin (a) $22,000 in fiscal year 2014 and $22,000 in fiscal year 2015 are appropriated new text end
212.28
new text begin to the Supreme Court from the general fund for the increased employer contribution new text end
212.29
new text begin in article 14, section 11.new text end
212.30
new text begin (b) $55,000 in fiscal year 2014 and $57,000 in fiscal year 2015 are appropriated new text end
212.31
new text begin to the court of appeals from the general fund for the increased employer contribution new text end
212.32
new text begin in article 14, section 11.new text end
212.33
new text begin (c) $778,000 in fiscal year 2014 and $809,000 in fiscal year 2015 are appropriated new text end
212.34
new text begin to the district courts from the general fund for the increased employer contribution in new text end
212.35
new text begin article 14, section 11.new text end
213.1 Sec. 2.
new text begin PUBLIC SAFETY.new text end
213.2
new text begin The following amounts are appropriated to the Department of Public Safety for the new text end
213.3
new text begin increased employer contribution in article 9, section 3:new text end
213.4
new text begin (1) $95,000 in fiscal year 2015 is appropriated from the general fund. The general new text end
213.5
new text begin fund base for fiscal year 2017 is increased by $94,000.new text end
213.6
new text begin (2) $546,000 in fiscal year 2015 is appropriated from the trunk highway fund. The new text end
213.7
new text begin trunk highway fund base for fiscal year 2017 is increased by $547,000.new text end
213.8
new text begin (3) $8,000 in fiscal year 2015 is appropriated from the highway user tax distribution new text end
213.9
new text begin fund. The highway user tax distribution fund base for fiscal year 2017 is increased new text end
213.10
new text begin by $8,000.new text end
