Legislative Session number- 81

Bill Name: SF2796

E Relating to retirement ARTICLE 1 ACTUARIAL ASSET VALUE CHANGE, ACTUARIAL
ASSUMPTION CHANGES, ACTUARIAL METHOD CHANGES AND ACTUARIAL REPORTING COST
ALLOCATION CHANGESModifying the determination of actuarial cost allocation by
the legislative commission on pensions and retirement; authorizing the
commissioner of finance to contract with the consulting actuary retained by the
LCPR for preparation of quadrennial projection valuations, setting projection
valuation due dates; providing for the determination of current assets for
actuarial valuation purposes and for preparation of quadrennial projection
valuations on behalf of the commissioner of finance; increasing the
postretirement interest rate assumption for certain retirement plans, modifying
the single rate future salary increase assumption for the Minneapolis employees
retirement plan (MERF), providing for select calculation of the future salary
increase assumption for the general state and public employees retirement plans
(MSRS, PERA) and modifying the future salary increase assumption table;
modifying the amortization contribution for retirement plans with an excess of
valuation assets over actuarial accrued liability, excess valuation assets to be
recognized as a reduction in the current contribution requirements ARTICLE 2
REEMPLOYED ANNUITANT EARNINGS LIMITATION REVISIONSIncreasing postretirement
earnings limits for certain Minnesota state colleges and universities system
retirees under the Minnesota state retirement system and the teachers retirement
association; providing for the disposition of amounts in excess of reemployed
annuitant earnings limits under MSRS, the public employees retirement
association (PERA) and the TRAs, specifying certain recordkeeping and reporting
requirements of the chief administrative officers of the plans relating to the
amount of annuity reduction and for payment after termination of reemployment;
requiring the MnSCU board to report to the legislative commission on pensions
and retirement (LCPR) by a certain date on the utilization of the annuitant
employment program including employer paid health insurance and certain no
annuity reduction provisions, requiring the report to include an evaluation by
institution of the effectiveness as a human resource management toolARTICLE 3
ADMINISTRATIVE PROVISIONS Modifying the provision providing for automatic
deposit of annuity, benefit or refund payments into financial institution
accounts under the Minnesota state retirement system; clarifying the definition
of allowable service under the MSRS state troopers retirement plan; modifying
eligibility under the MSRS unclassified employees retirement plan for members of
the metropolitan council, specifying the time of valuation of employee accounts
for purposes of cash withdrawal after termination of employment, authorizing
receipt of a partial value annuity and providing for the accrual of annuities
before the redemption of shares upon request of certain early retirees and
increasing the minimum balance for small balance accounts appropriation to the
general employees retirement fund upon failure to contact the employee;
excluding reemployed annuitants under the public employees retirement
association from consideration as public employees for purposes of the
reemployment; expanding the exclusion of port authorities from the definition of
governmental subdivision to specific port authorities, clarifying the exclusion
of unused annual vacation leave from the definition of salary and modifying the
definitions of termination of public service, retirement and coordinated member
for PERA coverage purposes, modifying the provision providing for automatic
deposit of annuity, benefit or refund payments into financial institution
accounts, certain employer employee contribution remittance and reporting and
omitted salary deduction requirements, total and permanent disability benefits
eligibility requirements and eligibility for refund of accumulated employee
deductions or deferred annuity for members granted a temporary layoff or
terminating service under one PERA plan and becoming an active member of another
PERA plan; requiring and providing for local government units reporting of
certain full time police officers or firefighters for membership in the public
employees police and fire fund, changing the name of the police and fire fund to
the police and fire plan, providing for plan coverage of police officers or
firefighters not electing police and fire plan coverage without subjection to
certain annuity and benefit provisions, requiring a local resolution and
modifying certain coverage eligibility requirements for part time employees and
expanding disability benefits eligibility to Hennepin county paramedics;
clarifying the computation and augmentation of deferred annuities for public
employees covered by more than one system; modifying the surviving spouse
benefit for former members of the consolidated Hibbing firefighters and police
relief associations and the St. Paul police relief association; modifying
certain provisions under the teachers retirement association; excluding from the
definition of teacher customized trainers as defined by the Minnesota state
colleges and universities system (MnSCU) and modifying the definition of salary;
modifying the computation of service credit; clarifying the time for
certification of sabbatical, parental and extended leaves of absence and
eliminating references to maternity leave under parental leave provisions;
clarifying the provision providing for automatic deposit of annuities, benefits
or refunds in bank accounts; eliminating a certain restriction on election of a
certain optional accelerated retirement annuity; providing for the payment of
interest on certain benefits to designated minor beneficiaries; eliminating the
place requirement for medical examination of persons receiving permanent
disability benefits; modifying the time limit for payment of refunds after
termination of teaching service; clarifying certain salary deduction
requirements and modifying the time limits for remittance and for the reporting
of certain member and payroll warrant data; clarifying eligibility for a
combined service annuity; authorizing and providing for PERA and MSRS to combine
payments to retirees equal to the total amount of separate payments upon retiree
agreement; specifying certain term change instructions to the revisor of
statutes; repealing certain annual summary report requirements of teacher
employing units and a provision providing PERA eligibility for employees of
Suburban Public Health Nursing Service, Inc. ARTICLE 4 MILITARY SERVICE CREDIT
PURCHASE AUTHORIZATIONAuthorizing and providing for the purchase of prior
military service credit by certain participants in the Minnesota state
retirement system (MSRS), the state patrol retirement plan and the public
employees retirement association (PERA) or the public employees police and fire
planARTICLE 5 RETIREMENT HEALTH CARE PROVISIONSRequiring the commissioner of
employee relations (DOER) to convene a task force on postretirement and active
employee health care to identify strategies for providing postretirement and
active employee health care coverage for public employees and make
recommendations relating to the most appropriate and efficient manner for
providing the health care, specifying membership representation requirements,
requiring a report to the legislature by a certain date, specifying certain
report content requirementsARTICLE 6 MSRS-CORRECTIONAL PLAN MEMBERSHIP
INCLUSIONSExpanding the definition of covered correctional service for Minnesota
state retirement system (MSRS) correctional employees retirement plan coverage
purposes and providing for election to obtain and purchase prior state service
credit by the additional employees upon transfer of coverage from the general
state employees retirement plan; requiring and providing for reimbursement to
the legislative commission on pensions and retirement (LCPR) for actuarial
calculation costs by the departments of corrections and human services;
repealing the certification procedure for additional covered correctional
service positions ARTICLE 7 PERA AND PERA-P F MEMBERSHIP INCLUSIONSAuthorizing
and providing for certain electrical workers, plumbers, carpenters and
associated trades personnel employed by independent school district 625, St.
Paul to elect exclusion from pension coverage under the public employees
retirement association, election to be irrevocable; providing pension coverage
for certain tribal police officers exercising state arrest powers under the
public employees police and fire plan, providing for the receipt of retroactive
service credit; providing for the purchase of prior service credit in PERA by
full time and permanent part time salaried members of the Spring Lake Park fire
departmentARTICLE 8 PENSION COVERAGE UPON EMPLOYMENT PRIVATIZATIONExpanding the
definition of other public employing unit under a certain provision providing
public employees retirement association (PERA) benefits for certain privatized
public employing unit employees to the St. Paul civic center authority ARTICLE 9
FORMER LOCAL POLICE AND FIRE CONSOLIDATION ACCOUNT MODIFICATIONS AND
CORRECTIONSClarifying certain provisions governing the allocation of
amortization state aid under the merger of local police and fire consolidation
accounts into the public employees police and fire plan of the public employees
retirement association (PERA); providing for certain former local police and
firefighters relief association consolidation account retirees to elect a
special joint and survivor optional annuity under the plan ARTICLE 10 PERA LOCAL
CORRECTIONAL RETIREMENT PLAN MODIFICATIONSModifying the definition of local
government correctional service employee for public employees retirement
association (PERA) local government correctional service retirement plan
coverage purposes, specifying certain certification requirements and providing
for continued coverage under the plan of current members not meeting the
modified requirements for the duration of employment; defining county
correctional institution; increasing member and employer contribution rates
ARTICLE 11 TEACHER RETIREMENT AND RELATED CHANGESExpanding eligibility for
extended leaves of absence to teachers included in the professional state
residential instructional unit under the public employment labor relations act
(PELRA); authorizing the purchase of allowable service credit in the teachers
retirement association for service in nonprofit community based corporations;
providing for Minneapolis TRA coordinated plan coverage for a certain union
business agent; extending part time teacher program participation eligibility to
a certain teacher employed by independent school district 11, Anoka-Hennepin
with a teaching agreement executed after the annual deadline ARTICLE 12 MNSCU
PENSION COVERAGE AND RELATED CHANGES Expanding the authority of the board of
trustees of the Minnesota state colleges and universities to grant extended
leaves of absence without salary to certain members of teachers retirement fund
associations in first class cities and clarifying certain requirements of the
board relating to tax sheltered annuity program vendor contracts; authorizing
and providing for the purchase of prior service or leave credit in the TRAs by
certain participants in the higher education supplemental retirement plan,
providing for the transfer of funds from member supplemental retirement accounts
to purchase the credit; modifying excess contribution return requirements under
the higher education individual retirement account and supplemental retirement
plans; increasing the maximum employer contribution to the supplemental
retirement plan; expanding application of public plan fiduciary responsibility
requirements to the public employees defined contribution plan under the public
employees retirement association (PERA), the higher education plans and the arts
board and humanities commission retirement plans and expanding the list of
fiduciaries to members of the IRA plan advisory committee; expanding fiduciary
activities to the selection of financial institutions and investment products;
providing for the application of certain strategies to the state unclassified
employees retirement plan under the Minnesota state retirement system (MSRS),
the public employees defined contribution plan, the higher education plans and
the arts board and humanities commission plans; authorizing the MnSCU board of
trustees to extend certain tax sheltered annuity program vendor contracts under
certain mutual agreement conditionsARTICLE 13 EMPLOYER MATCHING CONTRIBUTION TAX
SHELTERED ANNUITY CHANGESExpanding the exception to the restriction on public
employer contributions to supplemental pension or deferred compensation plan
relating to payment of premiums on tax sheltered annuity contracts to
contributions made to any investment eligible under a certain section of the
internal revenue code (IRC); authorizing school boards to establish vendor
limits and conditions; authorizing insurance, mutual fund or similar companies
providing eligible investments to request the state board of investment in
conjunction with the department of commerce to review the financial standing of
the company, the competitiveness of the investment options and returns and the
level of charges and fees impacting returns, requiring board establishment of
standards, policies and procedures for the review and maintenance of a list of
reviewed companies meeting the established standards ARTICLE 14 RETIREMENT
GENERALLYRepealing a certain limit on public employee retirement annuities
ARTICLE 15 VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION CHANGES Modifying the
allocation of minimum fire state aid to post-1999 volunteer firefighters relief
associations; requiring the payment of shortfalls in annual funding requirements
from the general fund as appropriated by the legislature; applying the actuarial
condition and funding costs, financial and minimum municipal obligation
requirements of firefighters relief associations paying lump sum service
pensions to associations replacing monthly service pensions with lump sum
payments; increasing certain maximum monthly and lump sum flexible service
pension amounts payable by volunteer firefighters relief associations and
clarifying the definition of separate from active service; modifying the
interest rate payable on deferred lump sum service pensions; requiring the
repayment of service pensions received by retired volunteer firefighters
resuming active service; clarifying eligibility for prorated service pensions
from more than one relief association; providing for appointment by county
commissioners of ex officio members of boards of trustees of relief associations
not located in or associated with an organized municipality; providing for the
payment of survivor benefits from the special fund to designated beneficiaries;
providing an increased survivor benefit from the Woodbury fire department relief
association for the spouse of a certain deceased St. Paul building inspector and
Woodbury volunteer firefighter ARTICLE 16 DISSOLUTIONS AND CONSOLIDATIONS OF
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONSAuthorizing and providing for the
consolidation of volunteer firefighters relief associations associated with fire
departments serving contiguous fire districts with the approval of the governing
bodies of the applicable municipalities; providing for governance of
consolidated relief associations by a board of trustees; requiring the
establishment and maintenance of special and general funds; providing for the
transfer of records, assets and liabilities to the subsequent or successor
relief association, for the dissolution of prior general fund balances and for
the termination of prior relief associations; providing for the payment of
administrative expenses of the subsequent relief association and for the payment
and funding of benefits; providing for dissolution without consolidation of
volunteer firefighters relief associations under certain conditions; providing
for settlement of nonbenefit legal obligations of the special fund, for
establishment of a benefit trust fund or for annuity purchases upon dissolution
and for the winding up of affairs ARTICLE 17 MINNEAPOLIS POLICE AND FIREFIGHTERS
RELIEF ASSOCIATION CHANGESProviding for additional postretirement asset
distributions under the Minneapolis police and firefighters relief associations;
providing for annual determination of total and net total excess asset amounts;
designating a certain percentage of the net total excess asset amount as
available for excess asset amount payments to eligible members, providing for
entitlement, priority and the payment method; providing for normal cost
contribution adjustments or suspension for the city of Minneapolis and modifying
the amortization period under certain conditions, limit; providing for a
surviving spouse benefit for the spouse of a certain Minneapolis fire relief
association retiree ARTICLE 18 JUDGES RETIREMENT PLAN MODIFICATIONS Imposing a
service credit limit under the judges retirement plan and providing for coverage
under the unclassified employees retirement program of the Minnesota state
retirement system (MSRS) for judges exceeding the limit, specifying the employee
contribution rate and prohibiting an employer contribution, employer
contribution to continue to the judges retirement fund; specifying the formula
percentage to be used by the judges retirement fund in determining combined
service annuities; requiring the exclusion of service exceeding the service
credit limit in calculating the basic retirement annuity and requiring the
inclusion of compensation earned during the service in determining final average
compensation and in calculating the retirement annuity; providing for election
to transfer a certain percentage of salary earned after reaching the service
credit limit from the judges retirement plan to the unclassified employees plan
for prior service exceeding the service credit limit ARTICLE 19 VARIOUS
INDIVIDUAL AND SMALL GROUP PENSION PROVISIONSAuthorizing and providing for late
application for permanent disability benefits under the general state employees
retirement plan of the Minnesota state retirement system (MSRS) by a certain
former employee of the department of economic security; providing for the
purchase of prior service credit in the public employees retirement association
by a certain former Hennepin county parole officer; authorizing the payment of
omitted salary deductions to PERA by a certain Dakota county employee; entitling
a certain former employee of Todd and Meeker counties to apply for a disability
benefit from PERA, reduced service credit requirement; providing for refund of
interest erroneously charged on the repayment of refund to a certain retiree
under the teachers retirement association; providing for the purchase of prior
service credit in the Minneapolis TRA by certain members currently or formerly
employed by special school district 1, Minneapolis and by a certain teacher with
an independent contract; providing for the purchase of prior service credit in
the Minneapolis employees retirement fund (MERF) by certain current employees of
the city of Minneapolis for certain periods of temporary employment(mk, ja)