Minnesota Legislature
HF 10
as introduced - 91st Legislature, 2019 1st Special Session (2019 - 2020) Posted on 06/03/2019 11:12am
Current Version - as introduced
2.2 2.3 2.4
2.5 2.6 2.7 2.8
2.9
2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
3.14
3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 4.1 4.2 4.3
4.4
4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14
4.15
4.16 4.17 4.18 4.19
4.20
4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 5.1 5.2 5.3 5.4 5.5 5.6 5.7
5.8
5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32
6.1
6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13
6.14
6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27
6.28
6.29 6.30 6.31 6.32
7.1
7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12
7.13
7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28
7.29
7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6
8.7
8.8 8.9
8.10
8.11 8.12
8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8
11.9
11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11
13.12
13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18
14.19
14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12
15.13
15.14 15.15 15.16 15.17 15.18
15.19
15.20 15.21 15.22 15.23 15.24 15.25 15.26
15.27
15.28 15.29 15.30 16.1 16.2 16.3 16.4 16.5 16.6
16.7
16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15
16.16
16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29
16.30
17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15
17.16
17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33
18.34
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13
19.14
19.15 19.16
19.17
19.18 19.19
19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16
22.17
22.18 22.19 22.20 22.21 22.22 22.23
22.24
22.25 22.26
22.27
23.1 23.2 23.3
23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2
24.3
24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11
24.12
24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30
27.31
27.32 27.33 27.34 28.1 28.2 28.3 28.4 28.5 28.6 28.7
28.8
28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3
29.4
29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11
30.12
30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24
31.25
31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14
33.15
33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22
35.23
35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30
36.31
36.32 36.33 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29
37.30 37.31 37.32
38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23
38.24 38.25 38.26
39.1 39.2 39.3
39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12
39.13
39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26
40.27
40.28 40.29 40.30 41.1 41.2 41.3 41.4 41.5
41.6
41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13
42.14
42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22
43.23
43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 44.1 44.2 44.3 44.4
44.5
44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15
44.16
44.17 44.18 44.19 44.20 44.21 44.22
44.23
44.24 44.25 44.26 44.27
44.28
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11
48.12
48.13 48.14 48.15 48.16 48.17
48.18
48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 49.1 49.2 49.3 49.4 49.5 49.6
49.7
49.8 49.9 49.10 49.11 49.12 49.13
49.14
49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 50.1 50.2 50.3 50.4 50.5
50.6
50.7 50.8 50.9
50.10
50.11 50.12
50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14
52.15
52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34
53.35
54.1 54.2 54.3 54.4
54.5
54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 55.1 55.2 55.3 55.4
55.5
55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30
55.31
56.1 56.2
56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31
57.32
58.1 58.2
58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20
58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35
60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4
61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21
61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30
62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19
62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25
66.26 66.27 66.28 66.29 66.30 66.31 66.32 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8
67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18
67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29
68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15
68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11
69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19
70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32
71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8
71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21
71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 72.1 72.2
72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20
74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22
75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31
77.1 77.2 77.3 77.4 77.5
77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18
77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20
78.21 78.22
A bill for an act
relating to retirement; making administrative changes to the Minnesota State
Retirement System; revising the requirements and eliminating the expiration date
for the Public Employees Retirement Association phased retirement program;
modifying provisions allowing for the purchase of service credit for periods of
military service for the Public Employees Retirement Association; revising the
municipal contribution to the public employees police and fire retirement plan
related to the former Minneapolis firefighters and police relief associations;
increasing member contributions for the higher education individual retirement
account plan; eliminating the expiration of a Minnesota state colleges and
universities early retirement incentive and making nonsubstantive style and form
changes; authorizing the termination of plan participation in the statewide volunteer
firefighter retirement plan and providing for the distribution of benefits and
allocation of any surplus assets; adopting the recommendations of the volunteer
firefighter relief association working group; extending the alternative allocation
of fire state aid for the city of Austin; authorizing a temporary supplemental pension
plan contribution restriction exemption; authorizing a coverage election for a
certain Minnesota State employee; making miscellaneous technical corrections to
laws and statutes; correcting erroneous, obsolete, and omitted text and references;
amending Minnesota Statutes 2018, sections 3.85, subdivision 2; 3A.02, by adding
a subdivision; 69.031, subdivision 5; 69.051, subdivisions 1, 3; 136F.47; 136F.481;
352.03, subdivisions 1, 1b; 352.113, subdivision 2; 352.115, subdivision 7, by
adding a subdivision; 352.22, by adding subdivisions; 352.23; 352.85, subdivision
4; 352.87, subdivision 8; 352B.08, by adding a subdivision; 352D.04, subdivision
2; 352D.05, subdivision 3; 352F.04, subdivision 1; 353.01, subdivisions 2b, 16;
353.34, subdivision 2; 353.371, subdivisions 1, 2, 3, 4, 5, 6, 7; 353.665, subdivision
8, by adding a subdivision; 353E.05; 354.05, subdivision 2a; 354.105; 354.42,
subdivisions 2, 3, 7; 354.49, subdivisions 3, 4; 354.51, subdivision 5; 354A.011,
subdivision 27; 354B.20, subdivisions 4, 7, 12, by adding a subdivision; 354B.22,
subdivision 2; 354B.23, subdivisions 1, 5; 354C.12, subdivision 2; 355.01,
subdivision 3c; 355.091; 356.215, subdivision 11; 356.219, subdivision 3; 356.551,
subdivision 2; 423A.02, subdivisions 1, 1b, 2, 4; 424A.001, by adding a subdivision;
424A.01, subdivision 6; 424A.015, subdivision 6; 424A.016, subdivisions 3, 6;
424A.02, subdivisions 2, 7, 9, 10; 424A.10, subdivision 1; 490.126, subdivision
3; Laws 2018, chapter 211, article 14, section 26; proposing coding for new law
in Minnesota Statutes, chapters 353; 353G; 354B; 356; repealing Minnesota Statutes
2018, sections 352F.06; 353.371, subdivision 8; 353G.15; 354B.20, subdivision
8; 354B.21, subdivisions 1, 1a, 2, 3, 3a, 3b, 4, 5, 6, 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
ADMINISTRATIVE PROVISIONS
Section 1.
Minnesota Statutes 2018, section 3A.02, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Application procedure. new text end
new text begin
The application for a benefit or refund made under
this chapter must comply with section 352.115, subdivision 7a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 352.03, subdivision 1, is amended to read:
Subdivision 1.
Membership of board; election; term.
(a) The policy-making function
of the system is vested in a board of 11 members known as the board of directors. This
board shall consist of:
(1) three members appointed by the governor, one of whom must be a constitutional
officer or appointed state official and two of whom must be public members knowledgeable
in pension matters;
(2) four state employees elected by active deleted text begin membersdeleted text end and deleted text begin formerdeleted text end new text begin inactive vested new text end members
deleted text begin eligible for a deferred annuity fromdeleted text end new text begin of new text end the general state employees retirement plannew text begin and
members with an account balance in the unclassified employees retirement programnew text end ,
excluding employees and deleted text begin deferred annuitantsdeleted text end new text begin inactive vested members new text end for whom a board
member is designatednew text begin under clause (3)new text end ;
(3) one employee of the Metropolitan Council's transit operations or its successor agency
designated by the executive committee of the labor organization that is the exclusive
bargaining agent representing employees of the transit division;
(4) one employee who is a member of the State Patrol retirement plan elected by active
deleted text begin membersdeleted text end and deleted text begin formerdeleted text end new text begin inactive vested new text end members deleted text begin eligible for a deferred annuity fromdeleted text end new text begin of new text end that
plan;
(5) one employee who is a member of the correctional state employees retirement plan
established under this chapter elected by active deleted text begin membersdeleted text end and deleted text begin formerdeleted text end new text begin inactive vested new text end members
deleted text begin eligible for a deferred annuity fromdeleted text end new text begin of new text end that plan; and
(6) one retired employee of a plan included in the system, elected by disabled and retired
employees of the plans administered by the system at a time and in a manner determined
by the board.
(b) The terms of the four elected state employees under paragraph (a), clause (2), must
be staggered, with two of the state employee board positions elected each biennium, whose
terms of office begin on the first Monday in May after their election. Elected members and
the appointed member of the Metropolitan Council's transit operations hold office for a term
of four years and until their successors are elected or appointed, and have qualified.
(c) An employee or former employee of the system is not eligible for membership on
the board of directors. A state employee on leave of absence is not eligible for election or
reelection to membership on the board of directors.
(d) The term of any board member who is on leave for more than six months
automatically ends on expiration of the term of office.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 352.03, subdivision 1b, is amended to read:
Subd. 1b.
Membership voting limitations.
new text begin (a) new text end Active members and deleted text begin formerdeleted text end new text begin inactive
vested new text end members deleted text begin eligible for a deferred annuity fromdeleted text end new text begin of new text end a plan under this chapter deleted text begin ordeleted text end new text begin ,new text end chapter
352Bnew text begin , or chapter 352Dnew text end are eligible to vote in board elections as further specified and restricted
in this section.
new text begin (b)new text end Retired members and disabilitants from a plan in the system may vote only for the
retired member position under subdivision 1, paragraph (a), clause (6).
new text begin (c)new text end If deleted text begin a formerdeleted text end new text begin an inactive vested new text end member deleted text begin eligible for a deferred annuity fromdeleted text end new text begin of new text end a plan
under this chapter deleted text begin ordeleted text end new text begin ,new text end chapter 352Bnew text begin , or chapter 352Dnew text end is deleted text begin a deferred annuitant fromdeleted text end new text begin an inactive
vested member of new text end more than one plan covered by the system, that person is eligible to vote
only in elections applicable for deleted text begin deferred annuitants fromdeleted text end new text begin inactive vested members of new text end the
plan in the system from which the person last received allowable service.
new text begin (d)new text end If a person is an active member of a plan in the system and is deleted text begin a deferred annuitantdeleted text end
new text begin an inactive vested member new text end or a retiree from another plan or plans in the system, the person
is only eligible to vote in board elections applicable due to the active member plan
membership.
new text begin (e) new text end If a person is deleted text begin a deferred annuitantdeleted text end new text begin an inactive vested member new text end from a plan in the
system and is also a retiree from another plan in the system, the person is only eligible to
vote in elections applicable due to the retiree status.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2018, section 352.113, subdivision 2, is amended to read:
Subd. 2.
Application; accrual of benefits.
(a) An employee making claim for a total
and permanent disability benefit, or someone acting on behalf of the employee upon proof
of authority satisfactory to the director, shall file a written application for benefits in the
office of the system on or before the deadline specified in subdivision 4, paragraph (g).
(b) The application must be in a form and manner prescribed by the executive directornew text begin
and include the medical reports required by subdivision 4, paragraph (b)new text end .
(c) The benefit shall begin to accrue the day following the start of disability or the day
following the last day paid, whichever is later, but not earlier than 180 days before the date
the application is filed deleted text begin with the directordeleted text end new text begin in an office of the systemnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2018, section 352.115, subdivision 7, is amended to read:
Subd. 7.
Application for annuity.
Application for annuity or optional annuity payment
may be made by the employee at time of retirement, or by someone acting deleted text begin indeleted text end new text begin on new text end behalf of
the employeedeleted text begin ,deleted text end upon proof of authority satisfactory to the director.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2018, section 352.115, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Application procedure. new text end
new text begin
(a) The filing of an application for an annuity, refund,
disability benefit, survivor benefit, death benefit, or other monthly benefit authorized by
this chapter, chapters 3A, 352B, 352D, or 490 must comply with this subdivision.
new text end
new text begin
(b) Filing of an application under paragraph (a) is not complete until an original
application and supporting documents are received in an office of the system or received
by a person authorized by the director. An original application may not be an electronic
copy or facsimile copy and if received in an office of the system, must be delivered by
personal service or mail.
new text end
new text begin
(c) In this subdivision, "supporting documents" are:
new text end
new text begin
(1) documents sufficient to verify birth;
new text end
new text begin
(2) documents sufficient to verify marital status or establish the terms of a divorce, if
applicable;
new text end
new text begin
(3) the acknowledgment required by section 356.46, subdivision 3, paragraph (b).
new text end
new text begin
Supporting documents are not required to be original documents except as determined
by the director.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2018, section 352.23, is amended to read:
352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.
(a) When any employee accepts a refund as provided in section 352.22, all existing
allowable service credits and all rights and benefits to which the employee was entitled
before accepting the refund terminate.
(b) Terminated service credits and rights must not again be restored until the former
employee acquires at least six months of allowable service credit after taking the last refund
and repays all refunds previously taken from the retirement fund with interest as provided
in paragraph (d).new text begin If an employee repays only part of a refund or repays a refund in partial
payments as permitted under paragraph (d), service credit will be restored in accordance
with section 356.44. An employee will not be considered as entitled to any other benefit,
including benefits for which the employee may be eligible because of the employee's original
hire date into public employment, until full repayment of all refunds has been made.
new text end
(c) Repayment of refunds entitles the employee only to credit for service covered by (1)
salary deductions; (2) payments previously made in lieu of salary deductions as permitted
under law in effect when the payment in lieu of deductions was made; (3) payments made
to obtain credit for service as permitted by laws in effect when payment was made; and (4)
allowable service previously credited while receiving temporary workers' compensation as
provided in section 352.01, subdivision 11, paragraph (a), clause (3).
(d) Payments under this section for repayment of refunds are to be paid with interest at
the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded
annually, from the date the refund was taken until the date the refund is repaid. Repayment
may be made in partial payments consistent with section 356.44 during employment or in
a lump sum up to six months after termination from service.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2018, section 352.85, subdivision 4, is amended to read:
Subd. 4.
Election of coverage.
To be covered by new text begin this new text end sectiondeleted text begin 352.85deleted text end , any employee of
the Department of Military Affairs, described in subdivision 1, must file a notice with the
executive director of the system on a form prescribed by the executive director stating
deleted text begin whether or notdeleted text end new text begin that new text end the employee elects to be covered. Notice must be filed within 90 days
of employment. new text begin Elected coverage is effective retroactively as of the first day of employment.
Amounts that would have been deducted from the employee's salary starting with the first
day of employment but were not deducted because the employee had not yet filed the election
must be deducted from the employee's future salary in accordance with a schedule of
deductions determined by the executive director and the Department of Military Affairs.
new text end Elections are irrevocable during any period of covered employment.new text begin A failure to file a timely
notice is deemed a waiver of coverage by this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2018, section 352.87, subdivision 8, is amended to read:
Subd. 8.
Election of coverage.
To be covered by this section, an employee of the
Department of Public Safety described in subdivision 1 who is employed in a position
described in that subdivision must file a notice with the executive director of the deleted text begin Minnesota
State Retirementdeleted text end system on a form prescribed by the executive director stating deleted text begin whether or
notdeleted text end new text begin that new text end the employee elects to be covered by this section. Notice must be filed within 90
days of employment. new text begin Elected coverage is effective retroactively as of the first day of
employment. Amounts that would have been deducted from the employee's salary starting
with the first day of employment but were not deducted because the employee had not yet
filed the election must be deducted from the employee's future salary in accordance with a
schedule of deductions determined by the executive director and the Department of Public
Safety. new text end Elections are irrevocable during any period of covered employment. A failure to
file a timely notice is deemed a waiver of coverage by this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2018, section 352B.08, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Application procedure. new text end
new text begin
The application for a benefit or refund made under
this chapter must comply with section 352.115, subdivision 7a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2018, section 352D.05, subdivision 3, is amended to read:
Subd. 3.
Full or partial withdrawal.
After termination of covered employment or at
any time thereafter, a participant is entitled, upon application, to withdraw the cash value
of the participant's total shares or leave such shares on deposit with the supplemental
retirement fund. The account is valued at the end of the most recent United States investment
market day following receipt of the application for withdrawal. new text begin The application for
withdrawal must be an original application, not an electronic or facsimile copy and must
be received in an office of the system or by a person authorized by the executive director.
new text end Shares not withdrawn remain on deposit with the supplemental retirement fund until the
former participant becomes at least 55 years old, and applies for an annuity under section
352D.06, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2018, section 352F.04, subdivision 1, is amended to read:
Subdivision 1.
Enhanced augmentation rates.
The deferred annuity of a terminated
hospital employee is subject to augmentation under Minnesota Statutes 1994, section 352.72,
subdivision 2, except that the rate of augmentation to be applied each January 1 isnew text begin set by
this subdivision. For augmentation through December 31, 2018, the rate of augmentation
is set under Minnesota Statutes 2016, section 352.04, subdivision 1. For augmentation
beginning January 1, 2019, the rate of augmentation isnew text end the following:
| January 1, 2019 |
4.5 percent |
|
| January 1, 2020 |
3.75 percent |
|
| January 1, 2021 |
3.0 percent |
|
| January 1, 2022 |
2.25 percent |
|
| January 1, 2023 |
1.5 percent |
|
| January 1, 2024 |
0.75 percent |
|
| After December 31, 2024, the deferred annuity must not be augmented. |
||
Augmentation for each year is effective as of January 1 of that year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2018, section 490.126, subdivision 3, is amended to read:
Subd. 3.
Application for annuity or refund.
An application for an annuity or a refund
under this chapter may be made by the potential annuitant or by someone authorized to act
for the potential annuitant. Every application for an annuity or refund, accompanied by a
proof of age and by a record of years of service when required, must be submitted to the
executive director of the Minnesota State Retirement System in a form prescribed by the
director.new text begin Except as provided for in this chapter, the application for an annuity, benefit, or
refund under this chapter must comply with the filing procedures in section 352.115,
subdivision 7a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 352F.06,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 2
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION PROVISIONS
Section 1.
Minnesota Statutes 2018, section 353.01, subdivision 16, is amended to read:
Subd. 16.
Allowable service; limits and computation.
(a) "Allowable service" means:
(1) service during years of actual membership in the course of which employee deductions
were withheld from salary and contributions were made at the applicable rates under section
353.27, 353.65, or 353E.03;
(2) periods of service covered by payments in lieu of salary deductions under sections
353.27, subdivisions 12 and 12a, and 353.35;
(3) service in years during which the public employee was not a member but for which
the member later elected, while a member, to obtain credit by making payments to the fund
as permitted by any law then in effect;
(4) a period of authorized leave of absence during which the employee receives pay as
specified in subdivision 10, paragraph (a), clause (4) or (5), from which deductions for
employee contributions are made, deposited, and credited to the fund;
(5) a period of authorized leave of absence without pay, or with pay that is not included
in the definition of salary under subdivision 10, paragraph (a), clause (4) or (5), for which
salary deductions are not authorized, and for which a member obtained service credit for
up to 12 months of the authorized leave period by payment under section 353.0162, to the
fund made in place of salary deductions;
(6) a periodic, repetitive leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per annual normal work cycle
as certified to the association by the employer. A participating member obtains service credit
by making employee contributions in an amount or amounts based on the member's average
salary, excluding overtime pay, that would have been paid if the leave had not been taken.
The employer shall pay the employer and additional employer contributions on behalf of
the participating member. The employee and the employer are responsible to pay interest
on their respective shares at the applicable rate or rates specified in section 356.59,
subdivision 3, compounded annually, from the end of the normal cycle until full payment
is made. An employer shall also make the employer and additional employer contributions,
plus interest at the applicable rate or rates specified in section 356.59, subdivision 3,
compounded annually, on behalf of an employee who makes employee contributions but
terminates public service. The employee contributions must be made within one year after
the end of the annual normal working cycle or within 30 days after termination of public
service, whichever is sooner. The executive director shall prescribe the manner and forms
to be used by a governmental subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for the purchased period;
(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
months allowable service per authorized temporary or seasonal layoff in one calendar year.
An employee who has received the maximum service credit allowed for an authorized
temporary or seasonal layoff must return to public service and must obtain a minimum of
three months of allowable service subsequent to the layoff in order to receive allowable
service for a subsequent authorized temporary or seasonal layoff;
(8) a period deleted text begin during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States Code,
title 38, section 4303(13), if the member returns to public service with the same governmental
subdivision upon discharge from service in the uniformed service within the time frames
required under United States Code, title 38, section 4312(e), provided that the member did
not separate from uniformed service with a dishonorable or bad conduct discharge or under
other than honorable conditions. The service must be credited if the member pays into the
fund equivalent employee contributions based upon the contribution rate or rates in effect
at the time that the uniformed service was performed multiplied by the full and fractional
years being purchased and applied to the annual salary rate. The annual salary rate is the
average annual salary during the purchase period that the member would have received if
the member had continued to be employed in covered employment rather than to provide
uniformed service, or, if the determination of that rate is not reasonably certain, the annual
salary rate is the member's average salary rate during the 12-month period of covered
employment rendered immediately preceding the period of the uniformed service. Payment
of the member equivalent contributions must be made during a period that begins with the
date on which the individual returns to public employment and that is three times the length
of the military leave period, or within five years of the date of discharge from the military
service, whichever is less. If the determined payment period is less than one year, the
contributions required under this clause to receive service credit may be made within one
year of the discharge date. Payment may not be accepted following 30 days after termination
of public service under subdivision 11a. If the member equivalent contributions provided
for in this clause are not paid in full, the member's allowable service credit must be prorated
by multiplying the full and fractional number of years of uniformed service eligible for
purchase by the ratio obtained by dividing the total member contributions received by the
total member contributions otherwise required under this clause. The equivalent employer
contribution, and, if applicable, the equivalent additional employer contribution must be
paid by the governmental subdivision employing the member if the member makes the
equivalent employee contributions. The employer payments must be made from funds
available to the employing unit, using the employer and additional employer contribution
rate or rates in effect at the time that the uniformed service was performed, applied to the
same annual salary rate or rates used to compute the equivalent member contribution. The
governmental subdivision involved may appropriate money for those payments. The amount
of service credit obtainable under this section may not exceed five years unless a longer
purchase period is required under United States Code, title 38, section 4312. The employing
unit shall pay interest on all equivalent member and employer contribution amounts payable
under this clause. Interest must be computed at the applicable rate or rates specified in
section 356.59, subdivision 3, compounded annually, from the end of each fiscal year of
the leave or the break in service to the end of the month in which the payment is received.
Upon payment, the employee must be granted allowable service credit for the purchased
period; ordeleted text end new text begin of uniformed services leave purchased under section 353.014;
new text end
new text begin
(9) a period of military service purchased under section 353.0141; or
new text end
deleted text begin (9)deleted text end new text begin (10)new text end a period specified under section 353.0162.
(b) No member may receive more than 12 months of allowable service credit in a year
either for vesting purposes or for benefit calculation purposes.
(c) For an active member who was an active member of the former Minneapolis
Firefighters Relief Association on December 29, 2011, "allowable service" is the period of
service credited by the Minneapolis Firefighters Relief Association as reflected in the
transferred records of the association up to December 30, 2011, and the period of service
credited under paragraph (a), clause (1), after December 30, 2011. For an active member
who was an active member of the former Minneapolis Police Relief Association on December
29, 2011, "allowable service" is the period of service credited by the Minneapolis Police
Relief Association as reflected in the transferred records of the association up to December
30, 2011, and the period of service credited under paragraph (a), clause (1), after December
30, 2011.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 2.
new text begin
[353.014] FEDERALLY PROTECTED MILITARY LEAVE.
new text end
new text begin Subdivision 1. new text end
new text begin Service credit purchase authorized. new text end
new text begin
(a) Unless prohibited under
paragraph (b), a member is eligible to purchase allowable service credit for one or more
periods of service during which a member is absent from employment by a governmental
subdivision by reason of service in the uniformed services, as defined in United States Code,
title 38, section 4303(13), if the member returns to public service with the same governmental
subdivision upon discharge from service in the uniformed services within the time frames
required under United States Code, title 38, section 4312(e).
new text end
new text begin
(b) The purchase of allowable service credit is prohibited if the member separated from
uniformed service with a dishonorable or bad conduct discharge or under other than honorable
conditions.
new text end
new text begin Subd. 2. new text end
new text begin Payments required. new text end
new text begin
(a) If the payments required by this section are made, a
member shall be granted allowable service credit for one or more periods of military service
as described in subdivision 1. The payments required by this section are equivalent employee
contributions as described in paragraph (b), equivalent employer contributions or additional
employer contributions as described in paragraph (c), and interest as described in paragraph
(d).
new text end
new text begin
(b) A member eligible under subdivision 1 electing to purchase allowable service credit
shall pay into the fund within the time period described in subdivision 4 equivalent employee
contributions based upon the contribution rate or rates in effect at the time that the uniformed
service was performed multiplied by the full and fractional years being purchased and
applied to the annual salary rate as defined in subdivision 3.
new text end
new text begin
(c) If the member makes the payment under paragraph (b), the governmental subdivision
employing the member shall pay the equivalent employer contribution and, if applicable,
the equivalent additional employer contribution. The employer payments must be made
from funds available to the employing unit, using the employer and additional employer
contribution rate or rates in effect at the time that the uniformed service was performed,
applied to the same annual salary rate or rates used to compute the equivalent employee
contribution. The governmental subdivision involved may appropriate money for those
payments.
new text end
new text begin
(d) The employing unit shall pay interest on all equivalent employee and employer
contribution amounts payable under this subdivision. Interest must be computed at the
applicable rate or rates specified in section 356.59, subdivision 3, compounded annually,
from the end of each fiscal year during the leave to the end of the month in which the
payment is received.
new text end
new text begin Subd. 3. new text end
new text begin Annual salary rate defined. new text end
new text begin
The annual salary rate is the average annual salary
during the purchase period that the member would have received if the member had continued
to be employed in covered employment rather than take the uniformed services leave, or,
if the determination of that rate is not reasonably certain, the annual salary rate is the
member's average salary rate during the 12-month period of covered employment rendered
immediately preceding the period of the uniformed service.
new text end
new text begin Subd. 4. new text end
new text begin Time period for making member's payment. new text end
new text begin
Payment of the employee
equivalent contributions must be made during a period that begins with the date on which
the member returns to public employment and that is three times the length of the military
leave period, or within five years of the date on which the member returns to public
employment, whichever is less. If the payment period is less than one year, payment of the
employee equivalent contributions may be made within one year of the date of the member's
discharge from service in the uniformed services. Payment may not be accepted after 30
days following termination of public service under section 353.01, subdivision 11a.
new text end
new text begin Subd. 5. new text end
new text begin Employer required to notify. new text end
new text begin
The employer shall notify the executive director,
on a form prescribed by the executive director, of the reemployment of a member who is
returning from service in the uniformed services as described in subdivision 1, and is eligible
to purchase service credit under this section. The employer must provide the notice within
14 days of the member's reemployment. The employer shall maintain a copy of the notice
in the member's employment file.
new text end
new text begin Subd. 6. new text end
new text begin Executive director required to notify. new text end
new text begin
Within 30 days of receipt of notification
from the employer under subdivision 5, the executive director shall notify the reemployed
member in writing of the right to purchase service credit. The notification shall be mailed
to the member's last known address.
new text end
new text begin Subd. 7. new text end
new text begin
Maximum amount of service credit and proration if full payment is not
made.
new text end
new text begin
(a) The maximum amount of service credit that may be purchased under this section
is five years unless a longer purchase period is required to be offered under United States
Code, title 38, section 4312.
new text end
new text begin
(b) If the employee equivalent contributions under subdivision 2 are not paid in full, the
member's allowable service credit must be prorated by multiplying the full and fractional
number of years of uniformed service eligible for purchase by the ratio obtained by dividing
the total employee contributions received by the total employee contributions otherwise
required under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 3.
new text begin
[353.0141] OTHER MILITARY LEAVE.
new text end
new text begin Subdivision 1. new text end
new text begin Service credit purchase authorized. new text end
new text begin
(a) Unless prohibited under
paragraph (b), a member is eligible to purchase allowable service credit, not to exceed five
years of allowable service credit, for one or more periods of service in the uniformed services,
as defined in United States Code, title 38, section 4303(13), if the member has at least three
years of allowable service credit with the general employees retirement plan, the local
government correctional employees retirement plan under chapter 353E, or the public
employees police and fire retirement plan and:
new text end
new text begin
(1) the member's service in the uniformed services occurred before becoming a public
employee as defined in section 353.01, subdivision 2; or
new text end
new text begin
(2) the member failed to obtain service credit for a uniformed services leave of absence
under section 353.01, subdivision 16, paragraph (a), clause (8).
new text end
new text begin
(b) A service credit purchase is prohibited if:
new text end
new text begin
(1) the member separated from service in the uniformed services with a dishonorable
or bad conduct discharge or under other than honorable conditions; or
new text end
new text begin
(2) the member has purchased or otherwise received service credit from any Minnesota
public employee pension plan for the same period of service in the uniformed services.
new text end
new text begin Subd. 2. new text end
new text begin Application and documentation. new text end
new text begin
A member who desires to purchase service
credit under subdivision 1 must apply with the executive director to make the purchase. The
application must include all necessary documentation of the member's qualifications to
make the purchase, signed written permission to allow the executive director to request and
receive necessary verification of applicable facts and eligibility requirements, and any other
relevant information that the executive director may require. The member must submit with
the application payment of the administrative fee in the amount of $250 to cover the costs
of calculating the purchase payment amount under section 356.551. If the member proceeds
with the purchase, the administrative fee will be credited toward the purchase payment
amount.
new text end
new text begin Subd. 3. new text end
new text begin Purchase payment amount; service credit grant. new text end
new text begin
(a) The purchase payment
amount is the amount determined under section 356.551 for the period or periods of service
requested, except that, for purposes of calculating the purchase payment amount to purchase
allowable service credit for service in the uniformed services that occurred before becoming
a public employee or between periods of public employment, section 356.551, subdivision
2, paragraph (c), shall not apply.
new text end
new text begin
(b) Allowable service credit must be granted by the applicable plan to the purchasing
member upon the executive director's receipt of the purchase payment amount. The allowable
service credit purchased under this section may not be used for the purpose of determining
a disability benefit under sections 353.031, 353.33, 353.656, or 353E.06.
new text end
new text begin
(c) Payment must be made before the effective date of the member's retirement.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 4.
Minnesota Statutes 2018, section 353.371, subdivision 1, is amended to read:
Subdivision 1.
Eligibility.
(a) This section applies to a basic or coordinated member of
the general employees retirement plan of the Public Employees Retirement Association
who:
(1) for at least the five years immediately preceding separation under clause (2), was
regularly scheduled to work 1,044 or more hours per year in a position covered by the
general employees retirement plan of the Public Employees Retirement Associationnew text begin not
including positions that are elected officesnew text end ;
(2) terminates membership as defined under section 353.01, subdivision 11b;
(3) at the time of termination under clause (2), was at least age 62 and met the age and
service requirements necessary to receive a retirement annuity from the plan and satisfied
requirements for the commencement of the retirement annuitynew text begin in the month following
terminationnew text end ;
(4) deleted text begin agrees to accept a postretirement option positiondeleted text end new text begin accepts a phased retirement
agreement to continue employment new text end with the same deleted text begin or a differentdeleted text end governmental subdivision,
working a reduced schedule that is both:
(i) a reduction of at least 25 percent from the employee's number of previously regularly
scheduled work hours; and
(ii) 1,044 hours or less in publicnew text begin servicenew text end ; and
(5) is not eligible for participation in the state employee postretirement option program
under section 43A.346.
(b) For purposes of this section, the length of separation requirement and termination
of new text begin public new text end service requirement prohibiting return to work agreements under section 353.01,
subdivisions 11a and 28, are not applicablenew text begin except as specified in subdivision 7, paragraph
(a)new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 5.
Minnesota Statutes 2018, section 353.371, subdivision 2, is amended to read:
Subd. 2.
Annuity reduction not applicable.
deleted text begin Notwithstanding any law to the contrary,deleted text end
The provisions of section 353.37 governing annuities of reemployed annuitants do not apply
deleted text begin for the duration of a terminated member'sdeleted text end new text begin tonew text end employment deleted text begin in a postretirement option positiondeleted text end new text begin
under a phased retirement agreementnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 6.
Minnesota Statutes 2018, section 353.371, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Governing bodydeleted text end new text begin Governmental subdivision new text end discretion.
The deleted text begin governing body
of thedeleted text end governmental subdivision has sole discretion to determine if and the extent to which
a deleted text begin postretirement optiondeleted text end new text begin phased retirement new text end position under this section is available to deleted text begin a
terminated memberdeleted text end new text begin an employeenew text end . Any offer of such a position must be made in writing to
the deleted text begin persondeleted text end new text begin employeenew text end by the deleted text begin governing body's designeedeleted text end new text begin governmental subdivision new text end in a manner
prescribed by the executive director.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 7.
Minnesota Statutes 2018, section 353.371, subdivision 4, is amended to read:
Subd. 4.
Duration.
deleted text begin Postretirement option employment may be for an initial perioddeleted text end new text begin The
term of employment under a phased retirement agreement must new text end not deleted text begin todeleted text end exceed deleted text begin one yeardeleted text end new text begin five
yearsnew text end . deleted text begin At the end of the initial period,deleted text end new text begin If the term of a phased retirement agreement is less
than five years, the agreement may be renewed for a period not to exceed a combined total
of five years. new text end The deleted text begin governing bodydeleted text end new text begin governmental subdivision new text end has sole discretion to determine
if deleted text begin the offer of a postretirement option positiondeleted text end new text begin a phased retirement agreement new text end will be renewed,
renewed with modifications, or terminated. deleted text begin Postretirement option employment may be
renewed annually, but no more than four renewals may occur.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 8.
Minnesota Statutes 2018, section 353.371, subdivision 5, is amended to read:
Subd. 5.
Copy to fund.
The deleted text begin appointing authoritydeleted text end new text begin governmental subdivision new text end shall provide
the deleted text begin Public Employees Retirement Associationdeleted text end new text begin executive directornew text end with documentation, as
prescribed by the executive director, of the terms of any agreement entered into with deleted text begin a
memberdeleted text end new text begin an employee new text end who accepts continuing employment with the deleted text begin appointing authoritydeleted text end
new text begin governmental subdivision new text end under the terms of this sectiondeleted text begin , and any subsequent renewal
agreementdeleted text end new text begin . The documentation must be provided before the employee's termination of
membershipnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 9.
Minnesota Statutes 2018, section 353.371, subdivision 6, is amended to read:
Subd. 6.
No service credit.
new text begin (a) new text end Notwithstanding any law to the contrary, a person may
not earn new text begin allowable new text end service deleted text begin creditdeleted text end in the general employees retirement plan of the Public
Employees Retirement Association for employment covered under this section, and employer
contributions and payroll deductions for the retirement fund must not be made based on
earnings of a person working under an agreement covered by this section. No change may
be made to a monthly annuity or retirement allowance based on employment under this
section.
new text begin
(b) The governmental subdivision shall report to the executive director the salary earned
by an employee in a phased retirement position. The report must include the number of
compensated hours the employee worked and must be made on a pay period basis in a
manner prescribed by the executive director. Reports must be submitted no later than 14
calendar days following the last day of each pay period.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 10.
Minnesota Statutes 2018, section 353.371, subdivision 7, is amended to read:
Subd. 7.
new text begin Termination and new text end subsequent employment.
new text begin
(a) Upon termination of
employment under a phased retirement agreement, the governmental subdivision and
employee must inform the executive director, in a manner prescribed by the executive
director, of the effective date of the employee's termination of public service. The termination
from public service must meet the termination and length of separation requirements under
section 353.01, subdivisions 11a and 28.
new text end
new text begin (b) new text end If a person deleted text begin has been in a postretirement option position anddeleted text end new text begin previously employed
under a phased retirement agreement subsequently new text end accepts new text begin employment with new text end any other
deleted text begin position in public service beyond the period of time for which the person participated in the
postretirement option provided under this sectiondeleted text end new text begin governmental subdivisionnew text end , the person
may not earn new text begin allowable new text end service deleted text begin creditdeleted text end in the general employees retirement plan of the Public
Employees Retirement Association, no employer contributions or payroll deductions for
the retirement fund may be made, and the provisions of section 353.37 applynew text begin to the
subsequent employmentnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 353.665, subdivision 8, is amended to read:
Subd. 8.
Member and employer contributions.
(a) Except as provided in paragraph
(b), (c), or (d), the employee contribution rate for merged former consolidation account
active members is the rate specified in section 353.65, subdivision 2, and the regular
municipal contribution rate on behalf of merged former consolidation account active members
is the rate specified in section 353.65, subdivision 3.
(b) With respect to active members of the merged former Minneapolis Firefighters Relief
Association and the merged former Minneapolis Police Relief Association, there are no
employee contributions payable and the employer contribution on behalf of those active
members is at the rate specified in section 353.65, subdivision 3, applied to the active
member's salary. deleted text begin In addition, an additional municipal contribution is payable by the city of
Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as
sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded
present value figure calculated as required by Minnesota Statutes 2012, section 353.667,
subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision 6,
paragraph (a). If the postretirement or preretirement interest rate actuarial assumption
applicable to the public employees police and fire retirement plan under section 356.215,
subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
deleted text end deleted text begin 356.215, subdivision 8, the remainder present value of future benefits amount calculation
under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes
2012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must
be revised and the amortization contribution by the city of Minneapolis for the balance of
the amortization period must be redetermined by the actuary retained under section 356.214
and certified by the executive director to the city of Minneapolis.
deleted text end
(c) If there are assets of the former Fairmont Police Relief Association in excess of the
present value of future benefits as of June 29, 2012, these assets must be credited to an
interest-bearing suspense account within the public employees police and fire retirement
fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015,
and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must
be credited with the same rate of investment return as the public employees police and fire
retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate
actuarial assumption applicable to the public employees police and fire retirement plan
under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
Statutes 2010, section 356.215, subdivision 8, the remainder present value of future benefits
amount calculation under paragraph (a), updated for the passage of time, must be revised
and the amortization contribution by the city of Fairmont for the balance of the amortization
period must be redetermined by the actuary retained under section 356.214 and certified by
the executive director to the city of Fairmont.
(d) If there was a remainder present value of future benefits amounts under Minnesota
Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of Virginia shall pay
an additional municipal contribution annually on or before December 31 sufficient to
amortize on a level annual dollar basis by December 31, 2020, that remainder present value
of future benefits amounts of the former Virginia fire department consolidation account. If,
after June 29, 2012, the postretirement or preretirement interest rate actuarial assumption
applicable to the public employees police and fire retirement plan under section 356.215,
subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
356.215, subdivision 8, the remainder present value of future benefits amount calculation
under paragraph (a), updated for the passage of time, must be revised and any amortization
contribution by the city of Virginia for the balance of the amortization period must be
redetermined by the actuary retained under section 356.214 and certified by the executive
director to the city of Virginia.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2018, section 353.665, is amended by adding a subdivision
to read:
new text begin Subd. 8a. new text end
new text begin City of Minneapolis contribution for firefighters and police. new text end
new text begin
(a) Until July
15, 2018, the city of Minneapolis shall make a contribution annually to the public employees
police and fire retirement plan on July 15, set at the amount calculated as of December 30,
2011, as sufficient to amortize, on a level annual dollar basis by December 31, 2031, the
unfunded present value figure calculated as required by Minnesota Statutes 2012, sections
353.667, subdivision 6, paragraph (a), and 353.668, subdivision 6, paragraph (a).
new text end
new text begin
(b) Beginning July 15, 2019, and every July 15 thereafter until and including July 15,
2031, the city of Minneapolis shall make a contribution annually to the public employees
police and fire retirement plan equal to $3,188,735, attributable to the former Minneapolis
Firefighters Relief Association, and $4,489,837, attributable to the former Minneapolis
Police Relief Association.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 353.371, subdivision 8,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
ARTICLE 3
STATEWIDE VOLUNTEER FIREFIGHTER PLAN PROVISIONS
Section 1.
new text begin
[353G.18] TERMINATION OF PARTICIPATION AND DISTRIBUTION
OF BENEFITS.
new text end
new text begin Subdivision 1. new text end
new text begin Application. new text end
new text begin
This section provides the procedures that apply if an entity
wishes to terminate its participation in the retirement plan and authorize the distribution of
all assets credited to the entity's account in the retirement fund held for the benefit of the
entity's former firefighters. If this section conflicts with another section of this chapter, this
section controls.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the terms defined in this subdivision
have the meanings given them unless the context clearly indicates otherwise.
new text end
new text begin
(b) "Departing entity" means the entity seeking to terminate its participation in the
retirement plan and the coverage of its departing firefighters by the retirement plan.
new text end
new text begin
(c) "Departing firefighter" means each former firefighter of the departing entity who:
new text end
new text begin
(1) is credited with one or more years of service under the retirement plan or under the
relief association previously affiliated with the departing entity;
new text end
new text begin
(2) has not yet received a distribution of the firefighter's pension benefit; and
new text end
new text begin
(3) is entitled to a distribution of a pension benefit under this section.
new text end
new text begin
(d) "Direct rollover" means a payment described under section 356.635, subdivisions 3
to 7. Consistent with the definition of "distributee" under section 356.635, subdivision 7, a
departing firefighter is a distributee for the purpose of a direct rollover election.
new text end
new text begin
(e) "Distribution date" means the date as of which all assets in the entity's account are
to be distributed in the form of a payment to each departing firefighter or the survivor of
each deceased departing firefighter or as a direct rollover, if elected under section 356.635,
subdivisions 3 to 7.
new text end
new text begin
(f) "Entity" means a municipality, an independent nonprofit firefighting corporation, or
a joint powers entity that operates or had operated a fire department with firefighters who
are covered by the retirement plan.
new text end
new text begin
(g) "Entity's account" means the pension plan that is a component of the retirement plan
and under which the departing firefighters have accrued lump sum pension benefits and
with which the departing entity is affiliated.
new text end
new text begin
(h) "Executive director" means the executive director of the Public Employees Retirement
Association.
new text end
new text begin
(i) "Termination date" means the effective date of the termination of the pension plan
that is the entity's account. The termination date shall precede the distribution date.
new text end
new text begin
(j) "Year of service" means a year of good time service credit certified by the departing
entity's fire chief under section 353G.07. For purposes of determining the amount of a
departing firefighter's pension benefit under this section, year of service includes any service
credit earned by the departing firefighter under the relief association previously affiliated
with the departing entity, which must be certified under section 424A.003 beginning January
1, 2019. Good time service credit ends when the departing firefighter's active service ends,
notwithstanding a later termination date as defined in paragraph (i).
new text end
new text begin Subd. 3. new text end
new text begin Eligibility. new text end
new text begin
An entity is eligible to terminate its participation in the retirement
plan under this section if the entity satisfies the following conditions:
new text end
new text begin
(1) the entity has eliminated its fire department or, if its fire department is ongoing, the
fire department has ceased using the services of all departing firefighters and any other
noncareer or volunteer firefighters; and
new text end
new text begin
(2) the entity's account has assets sufficient to cover all liabilities, after taking into
account the requirement to fully vest all departing firefighters and pay administrative
expenses determined under subdivision 4, paragraph (c), clause (3).
new text end
new text begin Subd. 4. new text end
new text begin Termination procedures. new text end
new text begin
(a) The participation of a departing entity in the
retirement plan and the coverage of the departing firefighters by the retirement plan shall
cease as of the date the requirements in this subdivision are completed and all assets credited
to the entity's account are distributed.
new text end
new text begin
(b) The governing board of the departing entity shall adopt the resolutions under
subdivision 5 and deliver the resolutions to the executive director.
new text end
new text begin
(c) The executive director shall:
new text end
new text begin
(1) fully vest all departing firefighters as of the termination date and consider each
departing firefighter 100 percent vested in the pension benefit accrued by the departing
firefighter under the entity's account as of the termination date;
new text end
new text begin
(2) determine the present value of each departing firefighter's accrued benefit as of the
termination date, taking into account the benefit level under section 353G.11 or otherwise
in effect for the departing firefighter as determined by the executive director;
new text end
new text begin
(3) determine, as of the termination date, the value of accrued liabilities, including
administrative expenses incurred or reasonably anticipated to be incurred through the
distribution date, and the value of assets attributable to the entity's account; and
new text end
new text begin
(4) to the extent necessary to minimize the risk of investment losses between the
termination date and the distribution date, reinvest the assets credited to the entity's account
in low risk investments.
new text end
new text begin
(d) If the entity's account has assets in excess of accrued liabilities, the executive director
shall allocate the excess among all departing firefighters in the same proportion that the
present value of the accrued benefit for each departing firefighter bears to the total present
value of the accrued benefits of all departing firefighters, and each departing firefighter's
benefit, as determined under paragraph (c), clause (2), shall be increased by the departing
firefighter's share of the excess.
new text end
new text begin
(e) The executive director shall, as soon as practicable after the termination date, distribute
to each departing firefighter, regardless of whether the departing firefighter has attained
age 50, the firefighter's benefit as calculated by the executive director under paragraphs (c)
and (d). The distribution shall be made in a lump sum, either as a payment to the departing
firefighter or as a direct rollover, if elected by the firefighter. If the departing firefighter is
deceased, then the firefighter's benefit shall be paid to the firefighter's survivor under section
353G.12 or as a direct rollover, if elected by the survivor.
new text end
new text begin
(f) The executive director shall pay supplemental benefits under section 424A.10, but
only to the extent that the executive director will be reimbursed under section 424A.10,
subdivision 3.
new text end
new text begin Subd. 5. new text end
new text begin Entity board resolutions. new text end
new text begin
If an entity wishes to cease its participation in the
retirement plan and end the coverage of its former firefighters by the retirement plan, the
entity's governing board shall approve the following resolutions in a form satisfactory to
the executive director:
new text end
new text begin
(1) a statement of intent to terminate participation in the retirement plan and cease the
coverage by the retirement plan of the entity's former firefighters; and
new text end
new text begin
(2) the proposed termination date, which must be the last day of a month and at least 90
days after the date the resolutions are to be delivered to the executive director.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2. new text begin GRANDFATHERING PREVIOUSLY APPROVED TERMINATIONS.
new text end
new text begin
For any entity with a governing board that approved resolutions to terminate participation
in the statewide volunteer firefighter plan established by Minnesota Statutes, chapter 353G,
before the effective date of this act, the termination date is September 30, 2019, and the
termination process and disposition of assets set forth in the resolutions shall control,
notwithstanding the provisions of this act.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, section 353G.15,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 4
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
RETIREMENT CHANGES
Section 1.
Minnesota Statutes 2018, section 69.051, subdivision 1, is amended to read:
Subdivision 1.
Financial report and audit.
(a) The board of the Bloomington Fire
Department Relief Association and each volunteer firefighters relief association as defined
in section 424A.001, subdivision 4, with assets of at least $500,000 or liabilities of at least
$500,000 in the prior year or in any previous year, according to the applicable actuarial
valuation or according to the financial report if no valuation is required, shall prepare a
financial report covering the special and general funds of the relief association for the
preceding fiscal year, file the financial report, and submit financial statements.
(b) The financial report must contain financial statements and disclosures which present
the true financial condition of the relief association and the results of relief association
operations in conformity with generally accepted accounting principles and in compliance
with the regulatory, financing and funding provisions of this chapter and any other applicable
laws. The financial report must be countersigned by:
(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is a firefighters relief association which is
directly associated with a municipal fire department; or
(2) by the municipal clerk or clerk-treasurer of the largest municipality in population
which contracts with the independent nonprofit firefighting corporation if the volunteer
firefighter relief association is a subsidiary of an independent nonprofit firefighting
corporation and by the secretary of the independent nonprofit firefighting corporation; or
(3) by the chief financial official of the county in which the volunteer firefighter relief
association is located or primarily located if the relief association is associated with a fire
department that is not located in or associated with an organized municipality.
(c) The financial report must be retained in its office for public inspection and must be
filed with the governing body of the government subdivision in which the associated fire
department is located after the close of the fiscal year. One copy of the financial report must
be furnished to the state auditor after the close of the fiscal year.
(d) Audited financial statements must be attested to by a certified public accountant or
by the state auditor and must be filed with the state auditor within 180 days after the close
of the fiscal year. new text begin Audits must be conducted in compliance with generally accepted
governmental auditing standards and section 6.65 governing audit procedures. new text end The state
auditor may accept this report in lieu of the report required in paragraph (c).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2018, section 424A.001, is amended by adding a subdivision
to read:
new text begin Subd. 9a. new text end
new text begin Break in service. new text end
new text begin
"Break in service" means temporarily ceasing all of the
following with a particular fire department:
new text end
new text begin
(1) performing fire suppression duties;
new text end
new text begin
(2) performing fire prevention duties;
new text end
new text begin
(3) supervising fire suppression duties; and
new text end
new text begin
(4) supervising fire prevention duties.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 3.
Minnesota Statutes 2018, section 424A.01, subdivision 6, is amended to read:
Subd. 6.
Return to active firefighting after break in service.
(a) This subdivision
governs the service pension calculation requirements of a firefighter who returns to active
service after a break in service and applies to all breaks in service, except that the resumption
service requirements of this subdivision do not apply to leaves of absence made available
by federal statute, such as the Family Medical Leave Act, United States Code, title 29,
section 2691, and the Uniformed Services Employment and Reemployment Rights Act,
United States Code, title 38, section 4301, and do not apply to leaves of absence made
available by state statute, such as the Parental Leave Act, section 181.941; the Leave for
Organ Donation Act, section 181.9456; the Leave for Civil Air Patrol Service Act, section
181.946; the Leave for Immediate Family Members of Military Personnel Injured or Killed
in Active Service Act, section 181.947; or the Protection of Jurors' Employment Act, section
593.50.
(b)(1) If a firefighter who has deleted text begin ceased to perform or supervise fire suppression and fire
prevention duties for at least 60 daysdeleted text end new text begin a break in service of any duration new text end resumes performing
active firefighting with the fire department associated with the relief association, new text begin and new text end if the
bylaws of the relief association so permit, the firefighter may again become an active member
of the relief associationdeleted text begin . A firefighter who returns to active service and membership is
subject todeleted text end new text begin , subject to the requirements of this paragraph andnew text end the service pension calculation
requirements under this section.
new text begin
(2) A firefighter who has been paid a service pension or disability benefit must wait at
least 60 days following receipt of the pension or benefit before resuming active firefighting
with the fire department and active membership in the relief association.
new text end
deleted text begin (2)deleted text end new text begin (3) new text end A firefighter who has been granted an approved leave of absence not exceeding
one year by the fire department or by the relief association is exempt from the minimum
period of resumption service requirement of this section.
deleted text begin (3)deleted text end new text begin (4) new text end A person who has a break in service not exceeding one year but has not been
granted an approved leave of absence deleted text begin and who has not received a service pension or disability
benefitdeleted text end may be made exempt from the minimum period of resumption service requirement
of this section by the relief association bylaws.
deleted text begin (4)deleted text end new text begin (5) new text end If the bylaws so provide, a firefighter who returns to active relief association
membership deleted text begin under this paragraphdeleted text end new text begin after a break in service of any duration new text end may continue to
collect a monthly service pensionnew text begin from the relief associationnew text end , notwithstanding the deleted text begin service
pension eligibility requirementsdeleted text end new text begin requirement new text end under deleted text begin chapter 424Adeleted text end new text begin section 424A.02,
subdivision 1, that the firefighter has separated from active servicenew text end .
(c) If a former firefighter who has deleted text begin receiveddeleted text end new text begin been paid new text end a service pension or disability
benefit returns to active relief association membership under paragraph (b), the firefighter
may qualify for the receipt of a service pension from the relief association for the resumption
service period if the firefighter meets the service requirements of section 424A.016,
subdivision 3, or 424A.02, subdivision 2new text begin , as applicable, or meets the resumption minimum
service requirements specified in the relief association's bylawsnew text end . No firefighter may be paid
a service pension more than once for the same period of service.
(d) If a former firefighter who has not deleted text begin receiveddeleted text end new text begin been paid new text end a service pension or disability
benefit returns to active relief association membership under paragraph (b), the firefighter
may qualify for the receipt of a service pension from the relief association for the original
and resumption service periods if the firefighter meets the service requirements of section
424A.016, subdivision 3, or 424A.02, subdivision 2, based on the original and resumption
years of service credit.
(e) A firefighter who returns to active lump-sum relief association membership under
paragraph (b) and who qualifies for a service pension under paragraph (c) must have, upon
a subsequent cessation of duties, any service pension for the resumption service period
calculated as a separate benefit. If a lump-sum service pension had been paid to the firefighter
upon the firefighter's previous cessation of duties, a second lump-sum service pension for
the resumption service period must be calculated by applying the service pension amount
in effect on the date of the firefighter's termination of the resumption service for all years
of the resumption service.
(f) A firefighter who had not been paid a lump-sum service pension returns to active
relief association membership under paragraph (b), who did not meet the minimum period
of resumption service requirement specified in the relief association's bylaws, but who does
meet the minimum service requirement of section 424A.02, subdivision 2, based on the
firefighter's original and resumption years of active service, must have, upon a subsequent
cessation of duties, a service pension for the original and resumption service periods
calculated by applying the service pension amount in effect on the date of the firefighter's
termination of the resumption service, or, if the bylaws so provide, based on the service
pension amount in effect on the date of the firefighter's previous cessation of duties. The
service pension for a firefighter who returns to active lump-sum relief association membership
under this paragraph, but who had met the minimum period of resumption service requirement
specified in the relief association's bylaws, must be calculated by applying the service
pension amount in effect on the date of the firefighter's termination of the resumption service.
(g) If a firefighter receiving a monthly benefit service pension returns to active monthly
benefit relief association membership under paragraph (b), and if the relief association
bylaws do not allow for the firefighter to continue collecting a monthly service pension,
any monthly benefit service pension payable to the firefighter is suspended as of the first
day of the month next following the date on which the firefighter returns to active
membership. If the firefighter was receiving a monthly benefit service pension, and qualifies
for a service pension under paragraph (c), the firefighter is entitled to an additional monthly
benefit service pension upon a subsequent cessation of duties calculated based on the
resumption service credit and the service pension accrual amount in effect on the date of
the termination of the resumption service. A suspended initial service pension resumes as
of the first of the month next following the termination of the resumption service. If the
firefighter was not receiving a monthly benefit service pension and meets the minimum
service requirement of section 424A.02, subdivision 2, a service pension must be calculated
by applying the service pension amount in effect on the date of the firefighter's termination
of the resumption service for all years of service credit.
(h) A firefighter who was not receiving a monthly benefit service pension returns to
active relief association membership under paragraph (b), who did not meet the minimum
period of resumption service requirement specified in the relief association's bylaws, but
who does meet the minimum service requirement of section 424A.02, subdivision 2, based
on the firefighter's original and resumption years of active service, must have, upon a
subsequent cessation of duties, a service pension for the original and resumption service
periods calculated by applying the service pension amount in effect on the date of the
firefighter's termination of the resumption service, or, if the bylaws so provide, based on
the service pension amount in effect on the date of the firefighter's previous cessation of
duties. The service pension for a firefighter who returns to active relief association
membership under this paragraph, but who had met the minimum period of resumption
service requirement specified in the relief association's bylaws, must be calculated by
applying the service pension amount in effect on the date of the firefighter's termination of
the resumption service.
(i) For defined contribution plans, a firefighter who returns to active relief association
membership under paragraph (b) and who qualifies for a service pension under paragraph
(c) or (d) must have, upon a subsequent cessation of duties, any service pension for the
resumption service period calculated as a separate benefit. If a service pension had been
paid to the firefighter upon the firefighter's previous cessation of duties, and if the firefighter
meets the minimum service requirement of section 424A.016, subdivision 3, new text begin or meets the
resumption minimum service requirements specified in the relief association's bylaws, as
applicable, new text end based on the resumption years of service, a second service pension for the
resumption service period must be calculated to include allocations credited to the firefighter's
individual account during the resumption period of service and deductions for administrative
expenses, if applicable.
(j) For defined contribution plans, if a firefighter who had not been paid a service pension
returns to active relief association membership under paragraph (b), and who meets the
minimum service requirement of section 424A.016, subdivision 3, based on the firefighter's
original and resumption years of service, must have, upon a subsequent cessation of duties,
a service pension for the original and resumption service periods calculated to include
allocations credited to the firefighter's individual account during the original and resumption
periods of service and deductions for administrative expenses, if applicable, less any amounts
previously forfeited under section 424A.016, subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 4.
Minnesota Statutes 2018, section 424A.015, subdivision 6, is amended to read:
Subd. 6.
Governing benefit plan provisions.
A service pension or ancillary benefit
payable under this chapter is governed by and must be calculated under the general statute,
special law, relief association articles of incorporation, deleted text begin anddeleted text end new text begin or new text end relief association bylaw
provisions applicable on the new text begin earlier of the following dates:
new text end
new text begin (1) the new text end date on which the member deleted text begin separateddeleted text end new text begin separates new text end from active service with the fire
department and active membership in the relief associationdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) the date on which the member begins a break in service with the fire department that
continues until the member separates from active service with the fire department and active
membership in the relief association.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 5.
Minnesota Statutes 2018, section 424A.016, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Reduceddeleted text end Vesting schedule.
If the articles of incorporation or bylaws of a
defined contribution relief association deleted text begin sodeleted text end providedeleted text begin , a relief association may pay a reduced
service pension not to exceed the nonforfeitable percentage of the account balance to a
retiring member who has completed fewer than 20 years of service. The reduced service
pension may be paid when the retiring member meets the minimum age and service
requirements of subdivision 2. The nonforfeitable percentage of pension amounts are as
follows:deleted text end new text begin a vesting schedule that satisfies the requirements of this subdivision, the relief
association may pay a reduced service pension to a retiring member. For purposes of this
section, "vests," "vesting," or "vested" means a nonforfeitable, unconditional, or legally
enforceable right. A member vests in the member's account in accordance with the vesting
schedule set forth in the relief association's articles of incorporation or bylaws. Provided a
member meets the minimum age and service requirements of subdivision 2, the member is
entitled to a service pension equal to the member's account, but only to the extent vested as
provided in the vesting schedule set forth in the articles of incorporation or bylaws. In no
event may the articles of incorporation or bylaws:
new text end
new text begin
(1) require that a member have more than 20 years of active service to become 100
percent vested in the member's account; or
new text end
new text begin
(2) provide for a larger vesting percentage than is provided in the following schedule
with respect to the completed number of years of active service indicated in the schedule:
new text end
| Completed Years of new text begin Active new text end Service |
deleted text begin Nonforfeitabledeleted text end new text begin Vested new text end Percentage of Pension Amount |
||
| 5 |
40 percent |
||
| 6 |
52 percent |
||
| 7 |
64 percent |
||
| 8 |
76 percent |
||
| 9 |
88 percent |
||
| 10 |
deleted text begin
and thereafter
deleted text end
new text begin
or more new text end |
100 percent |
|
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 6.
Minnesota Statutes 2018, section 424A.016, subdivision 6, is amended to read:
Subd. 6.
Deferred service pensions.
(a) A member of a relief association is entitled to
a deferred service pension if the member separates from active service and membership and
has completed the minimum service and membership requirements in subdivision 2. The
requirement that a member separate from active service and membership is waived for
persons who have discontinued their volunteer firefighter duties and who are employed on
a full-time basis under section 424A.015, subdivision 1.
(b) The deferred service pension is payable when the former member reaches at least
age 50, or at least the minimum age specified in the bylaws governing the relief association
if that age is greater than age 50, and when the former member makes a valid written
application.
(c) A defined contribution relief association may, if its governing bylaws so provide,
credit interest or additional investment performance on the deferred lump-sum service
pension during the period of deferral. If provided for in the bylaws, the interest must be
deleted text begin paiddeleted text end new text begin creditednew text end :
(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;
(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or
(3) at the investment return on the assets of the special fund of the defined contribution
volunteer firefighters relief association in proportion to the share of the assets of the special
fund to the credit of each individual deferred member account through the accounting date
on which the investment return is recognized by and credited to the special fund.
(d) Unless the bylaws of a relief association that has elected to pay interest or additional
investment performance on deferred lump-sum service pensions under paragraph (c) specifies
a different interest or additional investment performance method, including the interest or
additional investment performance period starting date and ending date, the interest or
additional investment performance on a deferred service pension is creditable as follows:
(1) for a relief association that has elected to deleted text begin paydeleted text end new text begin credit new text end interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the date that the member
separates from active service and membership and ending on the accounting date immediately
before the deferred member commences receipt of the deferred service pension; or
(2) for a relief association that has elected to deleted text begin paydeleted text end new text begin credit new text end interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member separates
from active service and membership and ending on the date that the separate investment
vehicle is valued immediately before the date on which the deferred member commences
receipt of the deferred service pension.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 7.
Minnesota Statutes 2018, section 424A.02, subdivision 2, is amended to read:
Subd. 2.
deleted text begin Nonforfeitable portion of service pensiondeleted text end new text begin Vesting schedulenew text end .
deleted text begin (a)deleted text end If the articles
of incorporation or bylaws of a defined benefit relief association deleted text begin sodeleted text end providedeleted text begin , the relief
association may pay a reduced service pension to a retiring member who has completed
fewer than 20 years of service. The reduced service pension may be paid when the retiring
member meets the minimum age and service requirements of subdivision 1.deleted text end new text begin a vesting
schedule that satisfies the requirements of this subdivision, the relief association may pay
a reduced service pension to a retiring member. For purposes of this section, "vests,"
"vesting," or "vested" means a nonforfeitable, unconditional, or legally enforceable right.
A member vests in the member's accrued service pension in accordance with the vesting
schedule set forth in the relief association's articles of incorporation or bylaws. Provided a
member meets the minimum age and service requirements of subdivision 1, the member is
entitled to the member's accrued service pension, but only to the extent vested as provided
in the vesting schedule set forth in the articles of incorporation or bylaws. In no event may
the articles of incorporation or bylaws:
new text end
deleted text begin
(b) The amount of the reduced service pension may not exceed the amount calculated
by multiplying the service pension appropriate for the completed years of service as specified
in the bylaws multiplied by the applicable nonforfeitable percentage of pension.
deleted text end
deleted text begin
(c) For a defined benefit volunteer firefighters relief association that pays a lump-sum
service pension, a monthly benefit service pension, or a lump-sum service pension or a
monthly benefit service pension as alternative benefit forms, the nonforfeitable percentage
of pension amounts are as follows:
deleted text end
new text begin
(1) require that a member have more than 20 years of active service to become 100
percent vested in the member's accrued service pension; or
new text end
new text begin
(2) provide for a larger vesting percentage than is provided in the following schedule
with respect to the completed number of years of active service indicated in the schedule:
new text end
| Completed Years of new text begin Active new text end Service |
deleted text begin Nonforfeitabledeleted text end new text begin Vested new text end Percentage of Pension Amount |
|||
| 5 |
40 percent |
|||
| 6 |
deleted text begin 44deleted text end new text begin 52 new text end percent |
|||
| 7 |
deleted text begin 48deleted text end new text begin 64 new text end percent |
|||
| 8 |
deleted text begin 52deleted text end new text begin 76 new text end percent |
|||
| 9 |
deleted text begin 56deleted text end new text begin 88 new text end percent |
|||
|
deleted text begin
10 deleted text end |
deleted text begin
60 percent deleted text end |
|||
|
deleted text begin
11 deleted text end |
deleted text begin
64 percent deleted text end |
|||
|
deleted text begin
12 deleted text end |
deleted text begin
68 percent deleted text end |
|||
|
deleted text begin
13 deleted text end |
deleted text begin
72 percent deleted text end |
|||
|
deleted text begin
14 deleted text end |
deleted text begin
76 percent deleted text end |
|||
|
deleted text begin
15 deleted text end |
deleted text begin
80 percent deleted text end |
|||
|
deleted text begin
16 deleted text end |
deleted text begin
84 percent deleted text end |
|||
|
deleted text begin
17 deleted text end |
deleted text begin
88 percent deleted text end |
|||
|
deleted text begin
18 deleted text end |
deleted text begin
92 percent deleted text end |
|||
|
deleted text begin
19 deleted text end |
deleted text begin
96 percent deleted text end |
|||
|
deleted text begin
20
deleted text end
new text begin
10 new text end |
deleted text begin
and thereafter
deleted text end
new text begin
or more new text end |
100 percent |
||
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 8.
Minnesota Statutes 2018, section 424A.02, subdivision 7, is amended to read:
Subd. 7.
Deferred service pensions.
(a) A member of a defined benefit relief association
is entitled to a deferred service pension if the member separates from active service and
membership and has completed the minimum service and membership requirements in
subdivision 1. The requirement that a member separate from active service and membership
is waived for persons who have discontinued their volunteer firefighter duties and who are
employed on a full-time basis under section 424A.015, subdivision 1.
(b) The deferred service pension is payable when the former member reaches at least
age 50, or at least the minimum age specified in the bylaws governing the relief association
if that age is greater than age 50, and when the former member makes a valid written
application.
(c) A defined benefit relief association that provides a lump-sum service pension governed
by subdivision 3 may, when its governing bylaws so provide, deleted text begin paydeleted text end new text begin credit new text end interest on the
deferred lump-sum service pension during the period of deferral. If provided for in the
bylaws, interest must be deleted text begin paiddeleted text end new text begin credited new text end in one of the following manners:
(1) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association in a separate account established
and maintained by the relief association;
(2) at the investment performance rate actually earned on that portion of the assets if the
deferred benefit amount is invested in a separate investment vehicle held by the relief
association; or
(3) at an interest rate of up to five percent, compounded annually, as set by the board of
trustees.
(d) Any change in the interest rate set by the board of trustees under paragraph (c), clause
(3), must be ratified by the governing body of the municipality or joint powers entity served
by the fire department to which the relief association is directly associated, or by the
independent nonprofit firefighting corporation, as applicable.
(e) Interest under paragraph (c), clause (3), is deleted text begin payabledeleted text end new text begin credited new text end beginning on the January
1 next following the date on which the deferred service pension interest rate as set by the
board of trustees was ratified by the governing body of the municipality or joint powers
entity served by the fire department to which the relief association is directly associated, or
by the independent nonprofit firefighting corporation, as applicable.
(f) Unless the bylaws of a relief association that has elected to deleted text begin paydeleted text end new text begin credit new text end interest or
additional investment performance on deferred lump-sum service pensions under paragraph
(c) specifies a different interest or additional investment performance method, including
the interest or additional investment performance period starting date and ending date, the
interest or additional investment performance on a deferred service pension is creditable as
follows:
(1) for a relief association that has elected to deleted text begin paydeleted text end new text begin credit new text end interest or additional investment
performance under paragraph (c), clause (1) or (3), beginning on the first day of the month
next following the date on which the member separates from active service and membership
and ending on the last day of the month immediately before the month in which the deferred
member commences receipt of the deferred service pension; or
(2) for a relief association that has elected to deleted text begin paydeleted text end new text begin credit new text end interest or additional investment
performance under paragraph (c), clause (2), beginning on the date that the member separates
from active service and membership and ending on the date that the separate investment
vehicle is valued immediately before the date on which the deferred member commences
receipt of the deferred service pension.
(g) For a deferred service pension that is transferred to a separate account established
and maintained by the relief association or separate investment vehicle held by the relief
association, the deferred member bears the full investment risk subsequent to transfer and
in calculating the accrued liability of the volunteer firefighters relief association that pays
a lump-sum service pension, the accrued liability for deferred service pensions is equal to
the separate relief association account balance or the fair market value of the separate
investment vehicle held by the relief association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 9.
Minnesota Statutes 2018, section 424A.02, subdivision 9, is amended to read:
Subd. 9.
Limitation on ancillary benefits.
A defined benefit relief association, including
any volunteer firefighters relief association governed by Laws 2013, chapter 111, article 5,
sections 31 to 42, or any volunteer firefighters division of a relief association governed by
chapter 424, may only pay ancillary benefits which would constitute an authorized
disbursement as specified in section 424A.05 subject to the following requirements or
limitations:
(1) with respect to a defined benefit relief association in which governing bylaws provide
solely for a lump-sum service pension to a retiring member, or provide a retiring member
the choice of either a lump-sum service pension or a monthly service pension and the
lump-sum service pension was chosen, no ancillary benefit may be paid to any former
member or paid to any person on behalf of any former member after the former member (i)
terminates active service with the fire department and active membership in the relief
association; and (ii) commences receipt of a service pension as authorized under this section;
and
(2) with respect to any defined benefit relief association, no ancillary benefit paid or
payable to any member, to any former member, or to any person on behalf of any member
or former member, may exceed in amount the total earned service pension of the member
or former member. The total earned service pension must be calculated by multiplying the
service pension amount specified in the bylaws of the relief association at the time of death
or disability, whichever applies, by the years of service credited to the member or former
member. The years of service must be determined as of (i) the date the member or former
member became entitled to the ancillary benefit; or (ii) the date the member or former
member died entitling a survivor or the estate of the member or former member to an
ancillary benefit. The ancillary benefit must be calculated without regard to whether the
member had attained the minimum amount of service and membership credit specified in
the governing bylaws. For active members, the amount of a permanent disability benefit or
a survivor benefit must be equal to the member's total earned service pension except that
the bylaws of a defined benefit relief association may provide for the payment of a survivor
benefit in an amount not to exceed five times the yearly service pension amount specified
in the bylaws on behalf of any member who dies before having performed five years of
active service in the fire department with which the relief association is affiliated.new text begin For
deferred members, the amount of a permanent disability benefit or a survivor benefit must
be calculated using the service pension amount in effect on the date specified in section
424A.015, subdivision 6, unless the bylaws of the relief association specify a different
service pension amount to be used for the calculation.
new text end
(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation
or bylaws, the benefit must be paid:
(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;
(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or
(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving children and no beneficiary designated.
(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.
(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:
(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
(B) as a survivor benefit to the surviving children of the deceased firefighter if no
surviving spouse;
(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or
(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving spouse, no surviving children, and no beneficiary designated.
(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly
or partially, the spouse's entitlement to a survivor benefit.
(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
survivor benefit payable to a designated beneficiary, the relief association bylaws may limit
the total survivor benefit amount payable.
(5) For purposes of this section, for a monthly benefit volunteer fire relief association
or for a combination lump-sum and monthly benefit volunteer fire relief association where
a monthly benefit service pension has been elected by or a monthly benefit is payable with
respect to a firefighter, a designated beneficiary must be a natural person. For purposes of
this section, for a lump-sum volunteer fire relief association or for a combination lump-sum
and monthly benefit volunteer fire relief association where a lump-sum service pension has
been elected by or a lump-sum benefit is payable with respect to a firefighter, a trust created
under chapter 501C may be a designated beneficiary. If a trust is payable to the surviving
children organized under chapter 501C as authorized by this section and there is no surviving
spouse, the survivor benefit may be paid to the trust, notwithstanding a requirement of this
section to the contrary.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 10.
Minnesota Statutes 2018, section 424A.02, subdivision 10, is amended to read:
Subd. 10.
Local approval of bylaw amendments; filing requirements.
(a) Each defined
benefit relief association to which this section applies must file a revised copy of its governing
bylaws with the state auditor upon the adoption of any amendment to its governing bylaws
by the relief association or upon the approval of any amendment to its governing bylaws
granted by the governing body of deleted text begin eachdeleted text end new text begin the new text end municipality served by the fire department to
which the relief association is directly associatednew text begin or by the independent nonprofit firefighting
corporation, as applicablenew text end . Failure of the relief association to file a copy of the bylaws or
any bylaw amendments with the state auditor disqualifies the municipality from the
distribution of any future fire state aid until this filing requirement has been completed.
(b) If the special fund of the relief association does not have a surplus over full funding
under section 424A.092, subdivision 3, paragraph (c), clause (5), or 424A.093, subdivision
4, and if the municipality is required to provide financial support to the special fund of the
relief association under section 424A.092 or 424A.093, no bylaw amendment which would
affect the amount of, the manner of payment of, or the conditions for qualification for service
pensions or ancillary benefits or disbursements other than administrative expenses authorized
under section 69.80 payable from the special fund of the relief association is effective until
it has been ratified as required under section 424A.092, subdivision 6, or 424A.093,
subdivision 6. If the special fund of the relief association has a surplus over full funding
under section 424A.092, subdivision 3, or 424A.093, subdivision 4, and if the municipality
is not required to provide financial support to the special fund under this section, the relief
association may adopt or amend without municipal ratification its articles of incorporation
or bylaws which increase or otherwise affect the service pensions or ancillary benefits
payable from the special fund if authorized under section 424A.092, subdivision 6, or
424A.093, subdivision 6.
(c) If the relief association pays only a lump-sum pension, the financial requirements
are to be determined by the board of trustees following the preparation of an estimate of
the expected increase in the accrued liability and annual accruing liability of the relief
association attributable to the change. If the relief association pays a monthly benefit service
pension, the financial requirements are to be determined by the board of trustees following
either an updated actuarial valuation including the proposed change or an estimate of the
expected actuarial impact of the proposed change prepared by the actuary of the relief
association. If a relief association adopts or amends its articles of incorporation or bylaws
without municipal ratification under this subdivision, and, subsequent to the amendment or
adoption, the financial requirements of the special fund under this section are such so as to
require financial support from the municipality, the provision which was implemented
without municipal ratification is no longer effective without municipal ratification, and any
service pensions or ancillary benefits payable after that date must be paid only in accordance
with the articles of incorporation or bylaws as amended or adopted with municipal
ratification.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 11.
Minnesota Statutes 2018, section 424A.10, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For purposes of this section:
(1) "qualified recipient" means a volunteer firefighter who receives a lump-sum
distribution of pension or retirement benefits from a volunteer firefighters relief association
or from the voluntary statewide lump-sum volunteer firefighter retirement plan;
(2) "survivor of a deceased active or deferred volunteer firefighter" means the surviving
spouse of a deceased active or deferred volunteer firefighter or, if none, the surviving child
or children of a deceased active or deferred volunteer firefighternew text begin , or, if none, the designated
beneficiary of the deceased active or deferred volunteer firefighter, or, if no beneficiary has
been designated, the estate of the deceased active or deferred volunteer firefighternew text end ;
(3) "active volunteer firefighter" means a person who:
(i) regularly renders fire suppression service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
response activities for a fire department;
(ii) has met the statutory and other requirements for relief association membership; and
(iii) is deemed by the relief association under law and its bylaws to be a fully qualified
member of the relief association or from the voluntary statewide lump-sum volunteer
firefighter retirement plan for at least one month;
(4) "deferred volunteer firefighter" means a former active volunteer firefighter who:
(i) terminated active firefighting service, the performance or supervision of authorized
fire prevention duties, or the performance or supervision of authorized emergency medical
response activities; and
(ii) has sufficient service credit from the applicable relief association or from the voluntary
statewide lump-sum volunteer firefighter retirement plan to be entitled to a service pension
under the bylaws of the relief association, but has not applied for or has not received the
service pension; and
(5) "volunteer firefighter" includes an individual whose services were utilized to perform
or supervise fire prevention duties if authorized under section 424A.01, subdivision 5, and
individuals whose services were used to perform emergency medical response duties or
supervise emergency medical response activities if authorized under section 424A.01,
subdivision 5a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020, and applies to
supplemental benefits paid by a relief association in 2019 and thereafter for the death of an
active or deferred volunteer firefighter that occurred on or after January 1, 2019.
new text end
Sec. 12.
Laws 2018, chapter 211, article 14, section 26, is amended to read:
Sec. 26. CITY OF AUSTIN; ALLOCATION OF FIRE STATE AID FOR
FIREFIGHTERS.
(a) Notwithstanding any law to the contrary, the city of Austin must annually:
(1) determine the amount of state aid required under the bylaws of the Austin Parttime
Firefighters Relief Association to fund the volunteer firefighters' service pensions;
(2) transmit to the Austin Parttime Firefighters Relief Association any supplemental
state aid received under Minnesota Statutes, section 423A.022;
(3) transmit to the Austin Parttime Firefighters Relief Association an amount of fire
state aid under Minnesota Statutes, sections 69.011 to 69.051, equal to the difference between
the amount determined under clause (1) and the amount transmitted under clause (2); and
(4) transmit the remaining balance of fire state aid under Minnesota Statutes, sections
69.011 to 69.051, for the payment of the employer contribution requirements for firefighters
covered by the public employees police and fire retirement plan under Minnesota Statutes,
section 353.65, subdivision 3.
(b) Notwithstanding Minnesota Statutes, section 69.031, subdivision 5, the city of Austin
has no liability to the relief association related to payments it made or will make to the
public employees police and fire retirement plan from fire state aid for 2013deleted text begin , 2014, 2015,
2016, 2017, and 2018deleted text end new text begin and subsequent yearsnew text end .
(c) deleted text begin This section expires July 1, 2019deleted text end new text begin Paragraphs (a) and (b) expire on the effective date
of general legislation permitting the allocation of fire state aid between volunteer firefighter
relief associations and the affiliated municipalities, independent nonprofit firefighting
corporations, or joint powers entitiesnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
ARTICLE 5
MINNESOTA STATE COLLEGES AND UNIVERSITIES
RETIREMENT PROVISIONS
Section 1.
Minnesota Statutes 2018, section 136F.47, is amended to read:
136F.47 PENSION PLAN.
The board shall assume the administrative responsibility for the individual retirement
account plans in chapters 354B and 354C formerly administered separately by the State
University Board and the Community College Board. The separate plans and the former
plan administration must be merged into a single individual retirement account plan and
plan administration covering eligible employees of the board, eligible employees of system
institutions, and other eligible employee groups who are covered by the plan under section
deleted text begin 354B.21deleted text end new text begin 354B.211new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 2.
Minnesota Statutes 2018, section 136F.481, is amended to read:
136F.481 EARLY SEPARATION INCENTIVE PROGRAM.
(a) Notwithstanding any provision of law to the contrary, the board may offer a targeted
early separation incentive program for its employees.
(b) The early separation incentive program may include one or both of the following:
(1) cash incentives, not to exceed one year of base salary; or
(2) employer contributions to the postretirement health care savings plan established
under section 352.98.
(c) To be eligible to receive an incentive, an employee must be at least age 55 and must
have at least five years of employment by the Minnesota State Colleges and Universities
System. The board shall establish and periodically revise the eligibility requirements for
system employees to receive an incentive. The board shall file a copy of its proposed revised
eligibility requirements with the chairs and ranking members of the senate committee with
higher education within its jurisdiction and the senate finance division with higher education
within its jurisdiction and with the chair and ranking members of the committee in the house
of representatives with higher education within its jurisdiction and of the house of
representatives Committee on Ways and Means, at least 30 days before the final adoption
of the proposed revised eligibility requirements by the board, shall post the same document
on the system website at the same time, and shall hold a public hearing on the proposed
eligibility requirements. The type and any additional amount of the incentive to be offered
may vary by employee classification, as specified by the board.
(d) The president of a college or university, consistent with paragraphs (b) and (c), may
designate:
(1) specific departments or programs at the college or university whose employees are
eligible to be offered the incentive program; or
(2) positions at the college or university eligible to be offered the incentive program.
(e) The chancellor, consistent with paragraphs (b) and (c), may designate:
(1) system office divisions whose employees are eligible to be offered the incentive
program; or
(2) positions at the system office eligible to be offered the incentive program.
(f) Acceptance of the offered incentive must be voluntary on the part of the employee
and must be in writing. The incentive may only be offered at the sole discretion of the
president of the applicable college or university.
(g) A decision by the president of a college or university or by the chancellor not to offer
an incentive may not be challenged.
(h) The cost of the incentive is payable by the college or university on whose behalf the
president offered the incentive or from the system office budget if the chancellor offered
the incentive. If a college or university is merged, the remaining cost of any early separation
incentive must be borne by the successor institution. If a college or university is closed, the
remaining cost of any early separation incentive must be borne by the board.
(i) Annually, the chancellor and the president of each college or university must report
on the number and types of early separation incentives which were offered and utilized
under this section. The report must be filed annually with the board and with the Legislative
Reference Library on or before September 1.
deleted text begin
(j) The early retirement incentive authority under this section expires on June 30, 2019.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2018, section 354.05, subdivision 2a, is amended to read:
Subd. 2a.
Exceptions.
(a) Notwithstanding subdivision 2, a person specified in paragraph
(b) is not a member of the association except for purposes of Social Security coverage unless
the person is covered by section deleted text begin 354B.21deleted text end new text begin 354B.211new text end , and elects coverage by the Teachers
Retirement Association.
(b) A teacher is excluded from association membership other than Social Security
coverage under paragraph (a) if the person is covered by the individual retirement account
plan established under chapter 354B.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 4.
Minnesota Statutes 2018, section 354.51, subdivision 5, is amended to read:
Subd. 5.
Payment of shortages.
(a) Except as provided in paragraph (b), in the event
that full required member contributions are not deducted from the salary of a teacher,
payment of shortages in member deductions on salary earned are the sole obligation of the
employing unit and are payable by the employing unit upon notification by the executive
director of the shortage. The amount of the shortage shall be paid with interest at the
applicable annual rate or rates specified in section 356.59, subdivision 4, compounded
annually, from the end of the fiscal year in which the shortage occurred to the end of the
month in which payment is made and the interest must be credited to the fund. The employing
unit shall also pay the employer contributions as specified in section 354.42, subdivisions
3 and 5 for the shortages. If the shortage payment is not paid by the employing unit within
60 days of notification, and if the executive director does not use the recovery procedure
in section 354.512, the executive director shall certify the amount of the shortage to the
applicable county auditor, who shall spread a levy in the amount of the shortage payment
over the taxable property of the taxing district of the employing unit if the employing unit
is supported by property taxes. Payment may not be made for shortages in member deductions
on salary paid or payable under paragraph (b) or for shortages in member deductions for
persons employed by the Minnesota State Colleges and Universities system in a faculty
position or in an eligible unclassified administrative position and whose employment was
less than 25 percent of a full academic year, exclusive of the summer session, for the
applicable institution that exceeds the most recent 36 months.
(b) For a person who is employed by the Minnesota State Colleges and Universities
system in a faculty position or in an eligible unclassified administrative position and whose
employment was less than 25 percent of a full academic year, exclusive of the summer
session, for the applicable institution, upon the person's election under section deleted text begin 354B.21deleted text end new text begin
354B.211new text end of retirement coverage under this chapter, the shortage in member deductions on
the salary for employment by the Minnesota State Colleges and Universities system institution
of less than 25 percent of a full academic year, exclusive of the summer session, for the
applicable institution for the most recent 36 months and the associated employer contributions
must be paid by the Minnesota State Colleges and Universities system institution, plus
interest at the applicable annual rate or rates specified in section 356.59, subdivision 4,
compounded annually, from the end of the fiscal year in which the shortage occurred to the
end of the month in which the Teachers Retirement Association coverage election is made.
An individual electing coverage under this paragraph shall repay the amount of the shortage
in member deductions, plus interest, through deduction from salary or compensation
payments within the first year of employment after the election under section deleted text begin 354B.21deleted text end new text begin
354B.211new text end , subject to the limitations in section 16D.16. The Minnesota State Colleges and
Universities system may use any means available to recover amounts which were not
recovered through deductions from salary or compensation payments. No payment of the
shortage in member deductions under this paragraph may be made for a period longer than
the most recent 36 months.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 5.
Minnesota Statutes 2018, section 354A.011, subdivision 27, is amended to read:
Subd. 27.
Teacher.
(a) "Teacher" means any person who renders service for deleted text begin a public
school district, other than a charter school, located in the corporate limits ofdeleted text end new text begin :
new text end
new text begin (1) Independent School District No. 625,new text end St. Paul, as any of the following:
deleted text begin (1)deleted text end new text begin (i)new text end a full-time employee in a position for which a valid license from the deleted text begin state
Department of Educationdeleted text end new text begin Professional Educator Licensing and Standards Boardnew text end is required;
deleted text begin
(2) an employee of the teachers retirement fund association located in the city of St.
Paul;
deleted text end
deleted text begin (3)deleted text end new text begin (ii)new text end a part-time employee in a position for which a valid license from the deleted text begin state
Department of Educationdeleted text end new text begin Professional Educator Licensing and Standards Boardnew text end is required;
or
deleted text begin (4)deleted text end new text begin (iii)new text end a part-time employee in a position for which a valid license from the deleted text begin state
Department of Educationdeleted text end new text begin Professional Educator Licensing and Standards Boardnew text end is required
who also renders other nonteaching services for the school district, unless the board of
trustees of the teachers retirement fund association determines that the combined employment
is on the whole so substantially dissimilar to teaching service that the service may not be
covered by the associationdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) the teachers retirement fund association located in the city of St. Paul as an employee;
or
new text end
new text begin
(3) the Minnesota State Colleges and Universities as an employee who has continuing
coverage under this chapter through section 354B.211, subdivision 3, paragraph (c).
new text end
(b) The term does not mean any person who renders service in the school district as any
of the following:
(1) an independent contractor or the employee of an independent contractor;
(2) an employee who is a full-time teacher covered by the Teachers Retirement
Association under chapter 354;
(3) an employee who is exempt from licensure pursuant to section 122A.30;new text begin or
new text end
deleted text begin
(4) an employee who is a teacher in a technical college located in a city of the first class
unless the person elects coverage by the first class city teacher retirement fund association
under section 354B.21, subdivision 2;
deleted text end
deleted text begin
(5) a teacher employed by a charter school, irrespective of the location of the school;
deleted text end
deleted text begin
(6) an employee who is a part-time teacher in a technical college in the city of St. Paul
and who has elected coverage by the first class city teacher retirement fund association
under section 354B.21, subdivision 2, but (i) the teaching service is incidental to the regular
nonteaching occupation of the person; (ii) the applicable technical college stipulates annually
in advance that the part-time teaching service will not exceed 300 hours in a fiscal year;
and (iii) the part-time teaching actually does not exceed 300 hours in the fiscal year to which
the certification applies; or
deleted text end
deleted text begin (7)deleted text end new text begin (4)new text end a person who is receiving a retirement annuity from the teachers retirement fund
association and is employed after retirement by the school district associated with the
retirement fund association.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 6.
Minnesota Statutes 2018, section 354B.20, subdivision 4, is amended to read:
Subd. 4.
Covered employment.
deleted text begin (a)deleted text end "Covered employment" means employment by deleted text begin a
person eligible for coverage by this retirement program under section 354B.21 in a faculty
position or in an eligible unclassified administrative positiondeleted text end new text begin an employee in the fiscal year
in which the employee first attains eligible employee status, as determined under section
354B.211, subdivision 1, and thereafter all employment by that individual in an eligible
unclassified administrative position as defined in subdivision 6 or in an eligible unclassified
faculty position as defined in subdivision 6anew text end .
deleted text begin
(b) "Covered employment" does not mean employment specified in paragraph (a) by a
faculty member employed in the Minnesota State Colleges and Universities system if the
person's initial appointment is specified as constituting less than 25 percent of a full academic
year, exclusive of summer session, for the applicable institution.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 7.
Minnesota Statutes 2018, section 354B.20, is amended by adding a subdivision to
read:
new text begin Subd. 6a. new text end
new text begin Eligible unclassified faculty position. new text end
new text begin
"Eligible unclassified faculty position"
means employment by an employing unit in:
new text end
new text begin
(1) a classification under section 179A.10, subdivision 2, included in the:
new text end
new text begin
(i) state university instructional unit;
new text end
new text begin
(ii) state university administrative unit; or
new text end
new text begin
(iii) state college instructional unit; or
new text end
new text begin
(2) an employment position that meets the definition of "teacher" under section 354.05,
subdivision 2, or 354A.011, subdivision 27.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 8.
Minnesota Statutes 2018, section 354B.20, subdivision 7, is amended to read:
Subd. 7.
Employing unit.
"Employing unit," if the agency employs any persons covered
by the individual retirement account plan under section deleted text begin 354B.21deleted text end new text begin 354B.211new text end , means:
(1) the board;
(2) the Minnesota Office of Higher Education; and
(3) the Higher Education Facilities Authority.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 9.
Minnesota Statutes 2018, section 354B.20, subdivision 12, is amended to read:
Subd. 12.
Participant.
"Participant" means a person who is employed in covered
employment by the board and who elects coverage by the plan under section deleted text begin 354B.21deleted text end new text begin
354B.211new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 10.
new text begin
[354B.211] COVERAGE.
new text end
new text begin Subdivision 1. new text end
new text begin Eligibility. new text end
new text begin
(a) The following persons are eligible to have coverage by
the individual retirement account plan or coverage by another plan as further specified in
this section:
new text end
new text begin
(1) employees who are employed for at least 25 percent of a full academic year, exclusive
of the summer session, in eligible unclassified faculty positions under section 354B.20,
subdivision 6a; and
new text end
new text begin
(2) employees who are employed for at least 25 percent of a full fiscal year in eligible
unclassified administrative positions under section 354B.20, subdivision 6.
new text end
new text begin
(b) An employee who becomes eligible under clause (1) or (2) remains eligible regardless
of (i) a break in service, or (ii) the percentage of full time worked in any covered employment.
new text end
new text begin Subd. 2. new text end
new text begin Default coverage. new text end
new text begin
(a) The default retirement coverage specified under this
subdivision for an eligible employee applies to all covered employment unless the eligible
employee makes a coverage election under subdivision 4.
new text end
new text begin
(b) The individual retirement account plan is the default coverage if:
new text end
new text begin
(1) the eligible employee does not have continuing coverage under subdivision 3; and
new text end
new text begin
(2) the eligible employee:
new text end
new text begin
(i) was employed before July 1, 2011; or
new text end
new text begin
(ii) is employed on or after July 1, 2011 and does not have allowable service credit or
an account in any retirement plan listed in section 356.30, subdivision 3.
new text end
new text begin
(c) The Teachers Retirement Association is the default coverage if the eligible employee
(1) does not have continuing coverage under subdivision 3, paragraphs (c) or (d), (2) is
employed on or after July 1, 2011, and (3) has allowable service credit or an account in any
retirement plan listed in section 356.30, subdivision 3.
new text end
new text begin
(d) At the time of hire, the employee must certify to the employer the existence of any
allowable service credit or an account within any plan listed in section 356.30, subdivision
3. If an employee fails to provide certification, the Minnesota State Colleges and Universities
system and its board shall be held harmless and, notwithstanding any law to the contrary,
any resulting cost or financial liability becomes the employee's responsibility.
new text end
new text begin Subd. 3. new text end
new text begin Coverage continuation; certain technical college employees. new text end
new text begin
(a) If an
employee was employed in a technical college faculty position with Teachers Retirement
Association coverage on or before June 30, 1997, that coverage continues for all covered
employment unless the employee elects coverage under paragraph (e).
new text end
new text begin
(b) If an employee was employed in a technical college faculty position on or before
June 30, 1995, and covered by a former first class city teacher retirement fund association,
the Teachers Retirement Association shall provide coverage for all covered employment
unless the employee elects coverage under paragraph (e).
new text end
new text begin
(c) If an employee was employed in a technical college faculty position with St. Paul
Teachers Retirement Fund Association coverage on or before June 30, 1995, that coverage
continues for all covered employment unless the employee elects coverage under paragraph
(e).
new text end
new text begin
(d) If an employee was employed in a technical college position with Public Employee
Retirement Association coverage on or before June 30, 1995, that coverage continues for
all covered employment unless the employee elects coverage under paragraph (e).
new text end
new text begin
(e) If an employee under this subdivision changes employment within the Minnesota
State Colleges and Universities system, the employee is authorized to elect prospective
coverage by the individual retirement account plan pursuant to subdivision 4 for all
subsequent covered employment.
new text end
new text begin Subd. 4. new text end
new text begin Coverage; election for new employment position. new text end
new text begin
(a) Unless a timely coverage
election is made as specified below, an eligible employee retains the default coverage
specified in subdivision 2 for all covered employment.
new text end
new text begin
(1) An eligible employee who has default coverage with the individual retirement account
plan under subdivision 2 may elect prospective Teachers Retirement Association coverage.
new text end
new text begin
(2) An eligible employee who has default coverage with the Teachers Retirement
Association under subdivision 2 may elect prospective coverage by the individual retirement
account plan.
new text end
new text begin
(b) An election under paragraph (a) must be made within one year of commencing
covered employment. If an election is not made within one year of commencing covered
employment and the employee separated from such covered employment prior to completion
of the year, an election may be made within 90 days of returning to covered employment.
new text end
new text begin
(c) Except as provided in subdivision 6, purchasing service credit in the Teachers
Retirement Association for any period of Minnesota State Colleges and Universities system
employment occurring before the election under this section is prohibited.
new text end
new text begin
(d) An election made under this subdivision is irrevocable unless a subsequent election
is made under subdivision 6.
new text end
new text begin Subd. 5. new text end
new text begin Required notice. new text end
new text begin
(a) No later than 90 days before the end of any applicable
election period specified in this section, the employer must provide an eligible employee
the following information:
new text end
new text begin
(1) the eligible employee's default retirement coverage;
new text end
new text begin
(2) the form for electing alternative coverage other than the default coverage; and
new text end
new text begin
(3) the website addresses for the plan providing default coverage and comparable
information for the applicable optional coverage.
new text end
new text begin
(b) The election of coverage forms must include a certification statement that the
employee has received and reviewed materials on the alternative and default coverages prior
to making the election.
new text end
new text begin Subd. 6. new text end
new text begin Coverage; election for tenure. new text end
new text begin
(a) A faculty member, defined as a person
employed in an eligible unclassified faculty position under section 354B.20, subdivision
6a, who is a member of the individual retirement account plan may elect to transfer retirement
coverage to the Teachers Retirement Association within one year of the faculty member
first achieving tenure or its equivalent at a Minnesota state college or university.
new text end
new text begin
(b) A faculty member electing Teachers Retirement Association coverage must purchase
service credit in the Teachers Retirement Association for the entire period of time covered
under the individual retirement account plan. The purchase payment amount must be
determined under section 356.551. The Teachers Retirement Association may charge a
faculty member transferring coverage a reasonable fee to cover the costs associated with
computing the actuarial cost of purchasing service credit and making the transfer.
new text end
new text begin
(c) A faculty member purchasing service credit in the Teachers Retirement Association
may use:
new text end
new text begin
(1) any balances in the faculty member's individual retirement account plan or higher
education supplemental retirement plan established under chapter 354C; or
new text end
new text begin
(2) any source specified in section 356.441, subdivision 1.
new text end
new text begin
If the total amount of payments under this paragraph are less than the total purchase payment
amount under section 356.551, and the employee fails to make timely payments as determined
by the Teachers Retirement Association, all payment amounts must be refunded to the
applicable source.
new text end
new text begin Subd. 7. new text end
new text begin Coverage; acting, interim, or temporary appointments. new text end
new text begin
An employee on a
leave of absence from a classified position who is appointed to an acting, interim, or
temporary unclassified position retains the retirement coverage that the employee had in
the prior classified position for up to one year of covered employment. If the employee
continues in the unclassified position, the employee has the option to make an election under
subdivision 4, provided no previous election had been made under that subdivision.
new text end
new text begin Subd. 8. new text end
new text begin Coverage; certain part-time employees. new text end
new text begin
Notwithstanding subdivision 1, an
employee in a part-time eligible unclassified administrative position or eligible unclassified
faculty position that constitutes less than 25 percent of a full academic year is eligible for
Teachers Retirement Association coverage for all covered employment if the person certifies
to the employer existing membership in the Teachers Retirement Association.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 11.
Minnesota Statutes 2018, section 354B.22, subdivision 2, is amended to read:
Subd. 2.
Public pension coverage as condition of employment.
Coverage by a public
pension plan under section deleted text begin 354B.21deleted text end new text begin 354B.211new text end is a condition of initial employment or
continued employment deleted text begin as a faculty memberdeleted text end new text begin in an eligible unclassified faculty positionnew text end or
new text begin an new text end eligible unclassified administrative position by the board or other employing unit.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 12.
Minnesota Statutes 2018, section 354B.23, subdivision 1, is amended to read:
Subdivision 1.
Member contribution rate.
new text begin (a) Except for a participant described under
paragraph (b), new text end the member contribution rate for participants in the individual retirement
account plan is deleted text begin 4.5 percent of salarydeleted text end new text begin equal to the coordinated employee contribution rate in
section 354.42, subdivision 2new text end .
new text begin
(b) The member contribution rate is the rate described in paragraph (c) for a participant
in the individual retirement account plan who:
new text end
new text begin
(1) achieved tenure or its equivalent at a Minnesota state college or university before
July 1, 2018; or
new text end
new text begin
(2) is an employee in an eligible unclassified administrative position, is not a faculty
member, and first contributed to the individual retirement account plan before July 1, 2018.
new text end
new text begin
(c) The member contribution rate for a participant described in paragraph (b) is the
following percentage of salary:
new text end
|
new text begin
from July 1, 2019, to June 30, 2020 new text end |
new text begin
5.15 new text end |
|
|
new text begin
from July 1, 2020, to June 30, 2021 new text end |
new text begin
5.80 new text end |
|
|
new text begin
from July 1, 2021, to June 30, 2022 new text end |
new text begin
6.45 new text end |
|
|
new text begin
from July 1, 2022, to June 30, 2023 new text end |
new text begin
7.10 new text end |
|
|
new text begin
from July 1, 2023, to June 30, 2024 new text end |
new text begin
7.75 new text end |
new text begin
After June 30, 2024, the member contribution rate is the rate specified in paragraph (a).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 13.
Minnesota Statutes 2018, section 355.01, subdivision 3c, is amended to read:
Subd. 3c.
Higher education employee.
"Higher education employee" means an employee
of the state of Minnesota who performs services in a Minnesota State Colleges and
Universities system in a position covered by the individual retirement account plan under
section deleted text begin 354B.21deleted text end new text begin 354B.211new text end and who remains a member of the Teachers Retirement
Association for purposes of Social Security coverage only.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 14.
Minnesota Statutes 2018, section 355.091, is amended to read:
355.091 DIVISION OF RETIREMENT PLANS.
(a) The public retirement plans enumerated in paragraph (b) must be divided into two
parts in accordance with section 218(d)(6)(c) of the Social Security Act, with one part
composed of plan members who did not elect Social Security coverage in the applicable
referendum and the other part composed of plan members who did elect Social Security
coverage in the applicable referendum.
(b) The applicable public retirement plans are:
(1) the elective state officers retirement plan;
(2) the judges retirement plan;
(3) the legislators retirement plan;
(4) the Minneapolis Teachers Retirement Fund Association;
(5) the general employees retirement plan of the Public Employees Retirement
Association;
(6) the St. Paul Teachers Retirement Fund Association; and
(7) the Teachers Retirement Association.
(c) Plan participants and persons electing participation under section deleted text begin 354B.21deleted text end new text begin 354B.211new text end
remain members of the Teachers Retirement Association for purposes of Social Security
coverage only, and remain covered by the applicable agreement entered into under section
355.01, but are not members of the Teachers Retirement Association for any other purpose
while employed in covered employment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
Sec. 15. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2018, sections 354B.20, subdivision 8; and 354B.21, subdivisions
1, 1a, 2, 3, 3a, 3b, 4, 5, 6, and 7,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2019.
new text end
ARTICLE 6
GENERALLY APPLICABLE RETIREMENT PLAN CHANGES
Section 1.
Minnesota Statutes 2018, section 356.219, subdivision 3, is amended to read:
Subd. 3.
Content of reports.
(a) The report required by subdivision 1 must include a
written statement of the investment policy. Following that initial report, subsequent reports
must include investment policy changes and the effective date of each policy change rather
than a complete statement of investment policy, unless the state auditor requests submission
of a complete current statement. The report must also include the information required by
the following paragraphs, as applicable.
(b) If, after four years of reporting under this paragraph, the total portfolio time weighted
rate of return, net of all investment related costs and fees, provided by the public pension
plan differs by no more than 0.1 percent from the comparable return for the plan calculated
by the Office of the State Auditor, and if a public pension plan has a total market value of
deleted text begin $25,000,000deleted text end new text begin $50,000,000 new text end or more as of the beginning of the calendar year, and if the public
pension plan's annual audit is performed by the state auditor or by the legislative auditor,
the report required by subdivision 1 must include the market value of the total portfolio and
the market value of each asset class included in the pension fund as of the beginning of the
calendar year and as of the end of the calendar year. At the discretion of the state auditor,
the public pension plan may be required to submit the market value of the total portfolio
and the market value of each investment account, investment portfolio, or asset class included
in the pension fund for each month, and the amount and date of each injection and withdrawal
to the total portfolio and to each investment account, investment portfolio, or asset class. If
the market value of a public pension plan's fund drops below deleted text begin $25,000,000deleted text end new text begin $50,000,000 new text end in
a subsequent year, it must continue reporting under this paragraph for any subsequent year
in which the public pension plan is not fully invested as specified in subdivision 1, paragraph
(b), except that if the public pension plan's annual audit is not performed by the state auditor
or legislative auditor, paragraph (c) applies.
(c) If paragraph (b) would apply if the annual audit were provided by the state auditor
or legislative auditor, the report required by subdivision 1 must include the market value
of the total portfolio and the market value of each asset class included in the pension fund
as of the beginning of the calendar year and for each month, and the amount and date of
each injection and withdrawal to the total portfolio and to each investment account,
investment portfolio, or asset class.
(d) For public pension plans to which paragraph (b) or (c) applies, the report required
by subdivision 1 must also include a calculation of the total time-weighted rate of return
available from index-matching investments assuming the asset class performance targets
and target asset mix indicated in the written statement of investment policy. The provided
information must include a description of indices used in the analyses and an explanation
of why those indices are appropriate. This paragraph does not apply to any fully invested
plan, as defined by subdivision 1, paragraph (b). Reporting by the State Board of Investment
under this paragraph is limited to information on the Minnesota public pension plans required
to be invested by the State Board of Investment under section 11A.23.
(e) If a public pension plan has a total market value of less than deleted text begin $25,000,000deleted text end new text begin $50,000,000
new text end as of the beginning of the calendar year and was never required to file under paragraph (b)
or (c), the report required by subdivision 1 must include the amount and date of each total
portfolio injection and withdrawal. In addition, the report must include the market value of
the total portfolio as of the beginning of the calendar year and for each quarter.
(f) Any public pension plan reporting under paragraph (b) or (c) must include computed
time-weighted rates of return with the report, in addition to all other required information,
as applicable. The chief administrative officer of the public pension plan submitting the
returns must certify, on a form prescribed by the state auditor, that the returns have been
computed by the pension plan's investment performance consultant or custodial bank. The
chief administrative officer of the public pension plan submitting the returns also must
certify that the returns are net of all costs and fees, including investment management fees,
and that the procedures used to compute the returns are consistent with Bank Administration
Institute studies of investment performance measurement and presentation standards set by
the CFA Institute. If the certifications required under this paragraph are not provided, the
reporting requirements of paragraph (c) apply.
(g) For public pension plans reporting under paragraph (e), the public pension plan must
retain supporting information specifying the date and amount of each injection and
withdrawal to each investment account and investment portfolio. The public pension plan
must also retain the market value of each investment account and investment portfolio at
the beginning of the calendar year and for each quarter. Information that is required to be
collected and retained for any given year or years under this paragraph must be submitted
to the Office of the State Auditor if the Office of the State Auditor requests in writing that
the information be submitted by a public pension plan or plans, or be submitted by the State
Board of Investment for any plan or plans for which the State Board of Investment is the
investment authority under this section. If the state auditor requests information under this
subdivision, and the public plan fails to comply, the pension plan is subject to penalties
under subdivision 5, unless penalties are waived by the state auditor under that subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2020.
new text end
Sec. 2.
Minnesota Statutes 2018, section 356.551, subdivision 2, is amended to read:
Subd. 2.
Determination.
(a) Unless the minimum purchase amount set forth in paragraph
(c) applies, the prior service credit purchase amount is an amount equal to the actuarial
present value, on the date of payment, as calculated by the chief administrative officer of
the pension plan and reviewed by the actuary retained under section 356.214, of the amount
of the additional retirement annuity obtained by the acquisition of the additional service
credit in this section.
(b) Calculation of this amount must be made using the deleted text begin preretirement interest ratedeleted text end
new text begin investment return assumption new text end applicable to the public pension plan specified in section
356.215, subdivision 8, and the mortality table adopted for the public pension plan.
new text begin (1) Unless clause (2) applies,new text end the calculation must assume continuous future service in
the public pension plan until, and retirement at, the age at which the minimum requirements
of the fund for normal retirement or retirement with an annuity unreduced for retirement at
an early age, including section 356.30, are met with the additional service credit purchased.
The calculation must also assume a full-time equivalent salary, or actual salary, whichever
is greater, and a future salary history that includes annual salary increases at the applicable
salary increase rate for the plan specified in section 356.215, subdivision 8.
new text begin
(2) This clause applies when the calculation is being done for purposes of section
353.0141, subdivision 3. The calculation must include continuous future service in the
public pension plan until, and retirement at, any age at or after which the minimum
requirements of the fund for early retirement or retirement with an annuity unreduced for
retirement at an early age, including section 356.30, are met with the additional service
credit purchased. The calculation must be determined using the retirement age that provides
the most valuable benefit to the member. The calculation must also assume a full-time
equivalent salary, or actual salary, whichever is greater, and a future salary history that
includes annual salary increases at the applicable salary increase rate for the plan specified
in section 356.215, subdivision 8.
new text end
(c) The prior service credit purchase amount may not be less than the amount determined
by applying, for each year or fraction of a year being purchased, the sum of the employee
contribution rate, the employer contribution rate, and the additional employer contribution
rate, if any, applicable during that period, to the person's annual salary during that period,
or fractional portion of a year's salary, if applicable, plus interest at the applicable annual
rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies,
compounded annually, from the end of the year in which contributions would otherwise
have been made to the date on which the payment is received.
(d) Unless otherwise provided by statutes governing a specific plan, payment must be
made in one lump sum within one year of the prior service credit authorization or prior to
the member's effective date of retirement, whichever is earlier. Payment of the amount
calculated under this section must be made by the applicable eligible person.
(e) However, the current employer or the prior employer may, at its discretion, pay all
or any portion of the payment amount that exceeds an amount equal to the employee
contribution rates in effect during the period or periods of prior service applied to the actual
salary rates in effect during the period or periods of prior service, plus interest at the
applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever
applies, compounded annually, from the date on which the contributions would otherwise
have been made to the date on which the payment is made. If the employer agrees to
payments under this subdivision, the purchaser must make the employee payments required
under this subdivision within 90 days of the prior service credit authorization. If that
employee payment is made, the employer payment under this subdivision must be remitted
to the chief administrative officer of the public pension plan within 60 days of receipt by
the chief administrative officer of the employee payments specified under this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
new text begin
[356.97] INFORMATION SERVICES AND TECHNOLOGY.
new text end
new text begin
The executive directors subject to the standard of fiduciary conduct under chapter 356A
and the boards to which they report are exempt from the requirements of chapter 16E. An
executive director or board may use services provided by the Office of MN.IT Services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4. new text begin CITY OF ST. PAUL; ST. PAUL SCHOOL DISTRICT; TEMPORARY
SUPPLEMENTAL PENSION PLAN CONTRIBUTION RESTRICTION
EXEMPTION.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 356.24, subdivision 1, until June 30, 2020,
the city of St. Paul and Independent School District No. 625, St. Paul, shall be permitted to
levy taxes for or contribute public funds to a supplemental pension or deferred compensation
plan established, maintained, and operated in addition to a primary pension program for the
benefit of the governmental subdivision employees if and to the extent permitted or allocated
under the applicable collective bargaining agreements to any of the following retirement
funds:
new text end
new text begin
(1) the international union of operating engineers pension fund;
new text end
new text begin
(2) the International Association of Machinists national pension fund;
new text end
new text begin
(3) the laborers national industrial pension fund or a laborers local pension fund;
new text end
new text begin
(4) the plumbers and pipefitters national pension fund or a plumbers and pipefitters local
pension fund;
new text end
new text begin
(5) the sheet metal workers national defined benefit pension fund, a sheet metal workers
local defined benefit pension fund, or a sheet metal workers local defined contribution
retirement fund;
new text end
new text begin
(6) the elevator constructors national pension fund or the elevator constructors annuity
and 401(k) retirement plan;
new text end
new text begin
(7) the national electrical benefit fund, an electricians local defined benefit pension fund,
or an electricians local defined contribution pension fund;
new text end
new text begin
(8) the carpenters and joiners defined benefit pension fund or the carpenters and joiners
defined contribution pension fund;
new text end
new text begin
(9) the sprinkler fitters national defined benefit pension fund or the sprinkler fitters
supplemental defined contribution pension fund;
new text end
new text begin
(10) the painters and allied trades national pension fund or a painters and allied trades
local pension fund; or
new text end
new text begin
(11) the national roofing industry pension fund or a roofers local defined contribution
fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5. new text begin DIRECTION TO PREPARE DRAFT LEGISLATION.
new text end
new text begin
Representatives of the city of St. Paul, Independent School District No. 625, St. Paul,
and the local trade unions participating in the funds listed in section 4 shall work with the
staff of the Legislative Commission on Pensions and Retirement to prepare draft legislation
for consideration during the 2020 legislative session and submit the draft legislation to the
executive director of the Legislative Commission on Pensions and Retirement no later than
November 30, 2019. The draft legislation must eliminate the need to identify in Minnesota
Statutes, section 356.24, specific multiemployer funds in which the city of St. Paul or
Independent School District No. 625, St. Paul, participate, including the funds listed in
section 4, by:
new text end
new text begin
(1) excluding from eligibility under a pension plan administered by the public employees
retirement association or the teachers retirement association, as applicable, any employee
accruing a retirement benefit under a multiemployer fund in which the city of St. Paul or
Independent School District No. 625, St. Paul, participate, including the funds listed in
section 4, who is or becomes employed by the city of St. Paul and Independent School
District No. 625, St. Paul, for any year that the employee participates in the multiemployer
fund; or
new text end
new text begin
(2) requiring reporting to the Legislative Commission on Pensions and Retirement or
another entity with oversight information on the specific funds, including funding information
for each fund, annual contribution rates per employee, and the number of employees
participating; or
new text end
new text begin
(3) providing other safeguards that take into account the needs of the city of St. Paul,
Independent School District No. 625, St. Paul, the trade unions, and the state of Minnesota
with regard to the use of public funds for supplemental pension and deferred compensation
plans.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 7
SESSION LAW FOR ONE PERSON
Section 1. new text begin TRA COVERAGE ELECTION AUTHORITY FOR CERTAIN
MINNESOTA STATE EMPLOYEE.
new text end
new text begin
(a) Notwithstanding any provision of law to the contrary, an eligible person described
in paragraph (b) is authorized to become a coordinated member of the Teachers Retirement
Association upon making an election under paragraph (c). An eligible person is further
authorized to purchase service credit in the Teachers Retirement Association subject to the
requirements in paragraph (d).
new text end
new text begin
(b) An eligible person is a person who:
new text end
new text begin
(1) was born on January 18, 1966;
new text end
new text begin
(2) was first employed as an academic advisor on January 3, 1995, covered by the higher
education individual retirement account plan;
new text end
new text begin
(3) was employed as an academic advisor with Metropolitan State University on March
20, 2019, with retirement coverage in the higher education individual retirement account
plan; and
new text end
new text begin
(4) was not offered an election of Teachers Retirement Association coverage as authorized
by Minnesota Statutes, section 354B.21, so remained in the higher education individual
retirement account plan.
new text end
new text begin
(c) To be eligible for coverage by the Teachers Retirement Association, an eligible
person must submit a written application to the executive director of the Teachers Retirement
Association on a form provided by the Teachers Retirement Association. The application
must include all documentation of the applicability of this section and any other relevant
information that the executive director may require. Membership in the Teachers Retirement
Association commences no later than 60 days after the date on which the executive director
receives the written application under this paragraph.
new text end
new text begin
(d) An eligible person is granted service credit for past Minnesota State system
employment from January 3, 1995, until the date on which the executive director receives
the written application specified under paragraph (c) if the eligible person elects to purchase
past service credit on the written application and the following conditions are met:
new text end
new text begin
(1) The eligible person makes a contribution to the Teachers Retirement Association
equal to the excess, if any, of the employee contributions that the eligible person would
have made if covered by the Teachers Retirement Association from January 3, 1995, over
the employee contributions that the eligible person made to the higher education individual
retirement account plan. The contribution must include the applicable annual compound
interest at the rate or rates specified in Minnesota Statutes, section 356.59, subdivision 4,
computed from the date the contribution would have been made if deducted from salary
until paid. The total amount to be paid under this clause shall be determined by the executive
director of the Teachers Retirement Association, who shall provide written notification of
the amount required under this clause to the eligible person.
new text end
new text begin
(2) The Teachers Retirement Association receives an amount equal to the value of the
eligible person's account in the higher education individual retirement account plan on the
day that the application under paragraph (c) is received by the executive director of the
Teachers Retirement Association. The executive director of the Teachers Retirement
Association has the sole discretion to accept or not accept a transfer of the eligible person's
account in the higher education individual retirement account plan. If the executive director
determines that the Teacher's Retirement Association will accept the transfer, the value of
the eligible person's account in the higher education individual retirement account plan shall
be transferred to the Teachers Retirement Association. If the executive director does not
accept the transfer, the eligible person may complete purchase of the past service credit by
transferring an amount equal to the value of the eligible person's account in the higher
education individual retirement account plan to the Teachers Retirement Association as if
it were a payment permitted under Minnesota Statutes, section 354.105.
new text end
new text begin
(e) If the eligible person elects to purchase past service credit under paragraph (d), the
Teachers Retirement Association must determine the required purchase payment amount
under Minnesota Statutes, section 356.551, for the eligible person's service credit purchase
under paragraph (d).
new text end
new text begin
(f) From the total amount computed under paragraph (e), the executive director of the
Teachers Retirement Association must subtract the amounts received under paragraph (d).
The Minnesota State system must transmit the remaining amount, if any, to the executive
director of the Teachers Retirement Association within 60 days following the receipt of
payments under paragraph (d).
new text end
new text begin
(g) The authority to make a retirement coverage election or purchase of past service
credit under this section expires one year from the effective date of this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 8
TECHNICAL CORRECTIONS
Section 1.
Minnesota Statutes 2018, section 3.85, subdivision 2, is amended to read:
Subd. 2.
Powers.
The commission shall make a continuing study and investigation of
retirement benefit plans applicable to nonfederal government employees in this state. The
powers and duties of the commission include, but are not limited to the following:
(a) studying retirement benefit plans applicable to nonfederal government employees
in Minnesota, including federal plans available to the employees;
(b) making recommendations within the scope of its study, including attention to financing
of the various pension funds and financing of accrued liabilities;
(c) considering all aspects of pension planning and operation and making
recommendations designed to establish and maintain sound pension policy for all funds;
deleted text begin
(d) filing a report at least biennially to each session of the legislature;
deleted text end
deleted text begin (e)deleted text end new text begin (d) new text end analyzing each item of proposed pension and retirement legislation, including
amendments to each, with particular reference to analysis of their cost, actuarial soundness,
and adherence to sound pension policy, and reporting its findings to the legislature;
deleted text begin (f)deleted text end new text begin (e) new text end creating and maintaining a library for reference concerning pension and retirement
matters, including information about laws and systems in other states; and
deleted text begin (g)deleted text end new text begin (f) new text end studying, analyzing, and preparing reports in regard to subjects certified to the
commission for study.
Sec. 2.
Minnesota Statutes 2018, section 69.031, subdivision 5, is amended to read:
Subd. 5.
Deposit of state aid.
(a) If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter
retirement plan under chapter 353G, the executive director shall credit the fire state aid
against future municipal contribution requirements under section 353G.08 and shall notify
the municipality or independent nonprofit firefighting corporation of the fire state aid so
credited at least annually. If the municipality or the independent nonprofit firefighting
corporation is not covered by the voluntary statewide lump-sum volunteer firefighter
retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire
state aid to the treasurer of the duly incorporated firefighters' relief association if there is
one organized and the association has filed a financial report with the municipality. If the
relief association has not filed a financial report with the municipality, the municipal treasurer
shall delay transmission of the fire state aid to the relief association until the complete
financial report is filed. If the municipality or independent nonprofit firefighting corporation
is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan,
if there is no relief association organized, or if the association has dissolved or has been
removed as trustees of state aid, then the treasurer of the municipality shall deposit the
money in the municipal treasury and the money may be disbursed only for the purposes and
in the manner set forth in section 424A.08 or for the payment of the employer contribution
requirement with respect to firefighters covered by the public employees police and fire
retirement plan under section 353.65, subdivision 3.
(b) For a municipality in which police retirement coverage is provided by the public
employees police and fire fund and all peace officers are members of the fund, including
municipalities covered by section 353.665, the total state aid must be applied toward the
municipality's employer contribution to the public employees police and fire fund under
sections 353.65, subdivision 3, and 353.665, deleted text begin subdivisiondeleted text end new text begin subdivisions new text end 8new text begin and 8anew text end .
(c) The county treasurer, upon receipt of the police state aid for the county, shall apply
the total state aid toward the county's employer contribution to the public employees police
and fire fund under section 353.65, subdivision 3.
(d) The designated Metropolitan Airports Commission official, upon receipt of the police
state aid for the Metropolitan Airports Commission, shall apply the total police state aid
toward the commission's employer contribution for police officers to the public employees
police and fire plan under section 353.65, subdivision 3.
(e) The police state aid apportioned to the Departments of Public Safety and Natural
Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of
management and budget for transfer to the funds and accounts from which the salaries of
peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner
of revenue shall certify to the commissioners of public safety, natural resources, and
management and budget the amounts to be transferred from the appropriation for police
state aid. The commissioners of public safety and natural resources shall certify to the
commissioner of management and budget the amounts to be credited to each of the funds
and accounts from which the peace officers employed by their respective departments are
paid. Each commissioner shall allocate the police state aid first for employer contributions
for employees funded from the general fund and then for employer contributions for
employees funded from other funds. For peace officers whose salaries are paid from the
general fund, the amounts transferred from the appropriation for police state aid must be
canceled to the general fund.
Sec. 3.
Minnesota Statutes 2018, section 69.051, subdivision 3, is amended to read:
Subd. 3.
Report by certain municipalities; exceptions.
(a) The chief administrative
officer of each municipality which has an organized fire department but which does not
have a firefighters' relief association governed by sections 424A.091 to 424A.095 or Laws
2014, chapter 275, article 2, section 23, and which is not exempted under paragraph (b) or
(c) shall annually prepare a detailed financial report of the receipts and disbursements by
the municipality for fire protection service during the preceding calendar year on a form
prescribed by the state auditor. The financial report must contain any information which
the state auditor deems necessary to disclose the sources of receipts and the purpose of
disbursements for fire protection service. The financial report must be signed by the municipal
clerk or clerk-treasurer of the municipality. The financial report must be filed by the
municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The
municipality does not qualify initially to receive, and is not entitled subsequently to retain,
state aid under this chapter if the financial reporting requirement or the applicable
requirements of this chapter or any other statute or special law have not been complied with
or are not fulfilled.
(b) Each municipality that has an organized fire department and provides retirement
coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained
in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed
financial report if the executive director of the Public Employees Retirement Association
certifies compliance by the municipality with the requirements of sections 353G.04 and
353G.08, paragraph (e), and certifies deleted text begin conformitydeleted text end new text begin compliance new text end by the applicable fire chief
with the requirements of section 353G.07.
(c) Each municipality qualifies to receive fire state aid under this chapter without filing
a financial report under paragraph (a) if the municipality:
(1) has an organized fire department;
(2) does not have a volunteer firefighters relief association directly associated with its
fire department;
(3) does not participate in the statewide lump-sum volunteer firefighter retirement plan
under chapter 353G;
(4) provides retirement coverage to its firefighters through the public employees police
and fire retirement plan under sections 353.63 to 353.68; and
(5) is certified by the executive director of the Public Employees Retirement Association
to the state auditor to have had an employer contribution under section 353.65, subdivision
3, for its firefighters for the immediately prior calendar year equal to or greater than its fire
state aid for the immediately prior calendar year.
Sec. 4.
Minnesota Statutes 2018, section 352.22, is amended by adding a subdivision to
read:
new text begin Subd. 3b. new text end
new text begin Segmented annuity. new text end
new text begin
(a) If a person otherwise entitled to an annuity has more
than one period of uninterrupted service, the person is entitled to augmentation under
subdivision 3a for each period of uninterrupted service. "Uninterrupted service" for the
purpose of this subdivision means periods of covered employment during which the employee
has not been separated from state service for more than two years. The formula percentages
used for each period of uninterrupted service must be those applicable to a new employee.
The mortality and investment rate of return assumptions used to compute the annuity must
be those in effect when the employee files an application for annuity.
new text end
new text begin
(b) If a person repays a refund, the service restored by the repayment must be considered
continuous with the next period of service for which the employee has credit with this
system.
new text end
new text begin
(c) The requirements and provisions for retirement before normal retirement age in
sections 352.115, subdivision 1, and 352.116 also apply to an employee fulfilling the
requirements with a combination of service as provided in this subdivision.
new text end
new text begin
(d) This subdivision does not reduce the annuity otherwise payable under this chapter.
new text end
Sec. 5.
Minnesota Statutes 2018, section 352.22, is amended by adding a subdivision to
read:
new text begin Subd. 3c. new text end
new text begin Adjustment for certain deferred annuities. new text end
new text begin
The retirement annuity or
disability benefit of, or the survivor benefit payable on behalf of, a former state employee
who terminated service before July 1, 1997, which is not first payable until after June 30,
1997, must be increased on an actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under Laws 1997, chapter 233, section 58,
from five percent to six percent under a calculation procedure and the tables adopted by the
board and approved by the actuary retained under section 356.214.
new text end
Sec. 6.
Minnesota Statutes 2018, section 352D.04, subdivision 2, is amended to read:
Subd. 2.
Contribution rates.
(a) The money used to purchase shares under this section
is the employee and employer contributions provided in this subdivision.
(b) The employee contribution is an amount equal to the percent of salary specified in
section 352.04, subdivision 2deleted text begin , or 352.045, subdivision 3adeleted text end .
(c) The employer contribution is an amount equal to the following percentage of salary:
| from July 1, 2018, through June 30, 2019 |
6 percent |
|
| after June 30, 2019 |
6.25 percent |
(d) For members of the legislature, the contributions under this subdivision also must
be made on per diem payments received during a regular or special legislative session, but
may not be made on per diem payments received outside of a regular or special legislative
session, on the additional compensation attributable to a leadership position under section
3.099, subdivision 3, living expense payments under section 3.101, or special session living
expense payments under section 3.103.
(e) For a judge who is a member of the unclassified plan under section 352D.02,
subdivision 1, paragraph (c), clause deleted text begin (16)deleted text end new text begin (15)new text end , the employee contribution rate is eight percent
of salary, and there is no employer contribution.
(f) These contributions must be made in the manner provided in section 352.04,
subdivisions 4, 5, and 6.
Sec. 7.
Minnesota Statutes 2018, section 353.01, subdivision 2b, is amended to read:
Subd. 2b.
Excluded employees.
(a) The following public employees are not eligible to
participate as members of the association with retirement coverage by the general employees
retirement plan, the local government correctional employees retirement plan under chapter
353E, or the public employees police and fire retirement plan:
(1) persons whose annual salary from one governmental subdivision never exceeds an
amount, stipulated in writing in advance, of $5,100 if the person is not a school district
employee or $3,800 if the person is a school year employee. If annual compensation from
one governmental subdivision to an employee exceeds the stipulated amount in a calendar
year or a school year, whichever applies, after being stipulated in advance not to exceed the
applicable amount, the stipulation is no longer valid and contributions must be made on
behalf of the employee under section 353.27, subdivision 12, from the first month in which
the employee received salary exceeding $425 in a month;
(2) public officers who are elected to a governing body, city mayors, or persons who
are appointed to fill a vacancy in an elected office of a governing body, whose term of office
commences on or after July 1, 2002, for the service to be rendered in that elected position;
(3) election judges and persons employed solely to administer elections;
(4) patient and inmate personnel who perform services for a governmental subdivision;
(5) except as otherwise specified in subdivision 12a, employees who are employed solely
in a temporary position as defined under subdivision 12a, and employees who resign from
a nontemporary position and accept a temporary position within 30 days of that resignation
in the same governmental subdivision;
(6) employees who are employed by reason of work emergency caused by fire, flood,
storm, or similar disaster, but if the person becomes a probationary or provisional employee
within the same pay period, other than on a temporary basis, the person is a "public
employee" retroactively to the beginning of the pay period;
(7) employees who by virtue of their employment in one governmental subdivision are
required by law to be a member of and to contribute to any of the plans or funds administered
by the Minnesota State Retirement System, the Teachers Retirement Association, or the St.
Paul Teachers Retirement Fund Association, but this exclusion must not be construed to
prevent a person from being a member of and contributing to the Public Employees
Retirement Association and also belonging to and contributing to another public pension
plan or fund for other service occurring during the same period of time, and a person who
meets the definition of "public employee" in subdivision 2 by virtue of other service occurring
during the same period of time becomes a member of the association unless contributions
are made to another public retirement plan on the salary based on the other service or to the
Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;
(8) persons who are members of a religious order and are excluded from coverage under
the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance
of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if
no irrevocable election of coverage has been made under section 3121(r) of the Internal
Revenue Code of 1954, as amended;
(9) persons who are:
(i) employed by a governmental subdivision who have not reached the age of 23 and
who are enrolled on a full-time basis to attend or are attending classes on a full-time basis
at an accredited school, college, or university in an undergraduate, graduate, or
professional-technical program, or at a public or charter high school;
(ii) employed as resident physicians, medical interns, pharmacist residents, or pharmacist
interns and are serving in a degree or residency program in a public hospital or in a public
clinic; or
(iii) students who are serving for a period not to exceed five years in an internship or a
residency program that is sponsored by a governmental subdivision, including an accredited
educational institution;
(10) persons who hold a part-time adult supplementary technical college license who
render part-time teaching service in a technical college;
(11) for the first three years of employment, foreign citizens who are employed by a
governmental subdivision, deleted text begin other thandeleted text end new text begin except that the following foreign citizens are included
employees under subdivision 2a:
new text end
new text begin (i) employees of new text end Hennepin County or Hennepin Healthcare System, Inc.deleted text begin ,deleted text end new text begin ;
new text end
new text begin (ii) employees legally authorized to work in the United States for new text end deleted text begin under one or more
work permits or initially issued or extended for a combined period of less thandeleted text end three years
deleted text begin of employment but upon extension of the work visasdeleted text end new text begin or morenew text end ;new text begin and
new text end
new text begin
(iii) employees otherwise required to participate under federal law;
new text end
(12) public hospital employees who elected not to participate as members of the
association before 1972 and who did not elect to participate from July 1, 1988, to October
1, 1988;
(13) except as provided in section 353.86, volunteer ambulance service personnel, as
defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
may still qualify as public employees under subdivision 2 and may be members of the Public
Employees Retirement Association and participants in the general employees retirement
plan or the public employees police and fire plan, whichever applies, on the basis of
compensation received from public employment service other than service as volunteer
ambulance service personnel;
(14) except as provided in section 353.87, volunteer firefighters, as defined in subdivision
36, engaging in activities undertaken as part of volunteer firefighter duties, but a person
who is a volunteer firefighter may still qualify as a public employee under subdivision 2
and may be a member of the Public Employees Retirement Association and a participant
in the general employees retirement plan or the public employees police and fire plan,
whichever applies, on the basis of compensation received from public employment activities
other than those as a volunteer firefighter;
(15) pipefitters and associated trades personnel employed by Independent School District
No. 625, St. Paul, with coverage under a collective bargaining agreement by the Pipefitters
Local 455 pension plan who were either first employed after May 1, 1997, or, if first
employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article
2, section 12;
(16) electrical workers, plumbers, carpenters, and associated trades personnel who are
employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who
have retirement coverage under a collective bargaining agreement by the Electrical Workers
Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the
pension plan applicable to Carpenters Local 322 who were either first employed after May
1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000,
chapter 461, article 7, section 5;
(17) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent
School District No. 625, St. Paul, with coverage under a collective bargaining agreement
by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local
633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters
and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension
plan who were either first employed after May 1, 2001, or if first employed before May 2,
2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10,
section 6;
(18) plumbers who are employed by the Metropolitan Airports Commission, with
coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
who either were first employed after May 1, 2001, or if first employed before May 2, 2001,
elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section
6;
(19) employees who are hired after June 30, 2002, solely to fill seasonal positions under
subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
days or less in each year of employment with the governmental subdivision;
(20) persons who are provided supported employment or work-study positions by a
governmental subdivision and who participate in an employment or industries program
maintained for the benefit of these persons where the governmental subdivision limits the
position's duration to up to five years, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen, youth, or unemployment
relief program where the training or work experience is not provided as a part of, or for,
future permanent public employment;
(21) independent contractors and the employees of independent contractors;
(22) reemployed annuitants of the association during the course of that reemployment;
(23) persons appointed to serve on a board or commission of a governmental subdivision
or an instrumentality thereof;
(24) persons employed as full-time fixed-route bus drivers by the St. Cloud Metropolitan
Transit Commission who are members of the International Brotherhood of Teamsters Local
638 and who are, by virtue of that employment, members of the International Brotherhood
of Teamsters Central States pension plan;
(25) electricians or pipefitters employed by the Minneapolis Park and Recreation Board,
with coverage under a collective bargaining agreement by the IBEW local 292, or pipefitters
local 539 pension plan, who were first employed before May 2, 2015, and who elected to
be excluded under Laws 2015, chapter 68, article 11, section 5; and
(26) laborers and associated trades personnel employed by the city of St. Paul or
Independent School District No. 625, St. Paul, who are designated as temporary employees
under a collective bargaining agreement and have retirement coverage by the Minnesota
Laborers Pension Fund who were either first employed on or after June 1, 2018, or, if first
employed before June 1, 2018, who elected to be excluded under Laws 2018, chapter 211,
article 16, section 13.
(b) Any person performing the duties of a public officer in a position defined in
subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
employee of an independent contractor.
Sec. 8.
Minnesota Statutes 2018, section 353.34, subdivision 2, is amended to read:
Subd. 2.
Refund with interest.
(a) Except as provided in subdivision 1, any person who
ceases to be a member is entitled to receive a refund in an amount equal to accumulated
deductions, less the sum of any disability benefits that have been paid by the fund, plus
annual compound interest to the first day of the month in which the refund is processed.
(b) Annual compound interest rates on a refund under paragraph (a) shall be as follows:
(1) six percent to June 30, 2011;
(2) four percent after June 30, 2011, to June 30, 2018; and
(3) three percent after June 30, 2018.
(c) If a person repays a refund and subsequently applies for another refund, the repayment
amount, including interest, is added to the fiscal year balance in which the repayment was
made.
(d) If the refund payable to a member is based on employee deductions that are
determined to be invalid under section 353.27, subdivision 7, the interest payable on the
invalid employee deductions is deleted text begin fourdeleted text end new text begin threenew text end percent.
Sec. 9.
Minnesota Statutes 2018, section 353E.05, is amended to read:
353E.05 AUGMENTATION IN CERTAIN CASES.
Unless prior service has been transferred or unless a combined service annuity under
section 356.30 has been elected, an employee who becomes a local government correctional
employee after being a member of the Public Employees Retirement Association or the
public employees police and fire fund is covered under section deleted text begin 353.71deleted text end new text begin 353.34new text end , subdivision
deleted text begin 2deleted text end new text begin 3new text end , with respect to that prior service. An employee who becomes a member of the Public
Employees Retirement Association or the public employees police and fire plan after being
a local government correctional employee is also covered under section deleted text begin 353.71deleted text end new text begin 353.34new text end ,
subdivision deleted text begin 2deleted text end new text begin 3new text end , with respect to that prior service, unless calculated under section 356.30.
Sec. 10.
Minnesota Statutes 2018, section 354.105, is amended to read:
354.105 PAYMENTS USING PRETAX TRANSFERS.
If a current or past member is making a payment to the Teachers Retirement Association
to receive service credit under a provision of this chapter, chapter 356, or applicable special
law, and this payment is to be made by a transfer of pretax assets authorized under section
356.441, payment is authorized after the due date, but not to exceed 90 days, provided that
the authorization for the asset transfer has been received by the applicable third-party
administrator by the due date, and the payment must include interest at deleted text begin adeleted text end new text begin the applicable
monthly new text end rate deleted text begin of 0.708 percent per monthdeleted text end new text begin or rates specified in section 356.59, subdivision
4, compounded annually, new text end from the due date through the end of the month in which the
Teachers Retirement Association receives the payment.
Sec. 11.
Minnesota Statutes 2018, section 354.42, subdivision 2, is amended to read:
Subd. 2.
Employee contribution.
(a) The employee contribution to the fund is the
following percentage of the member's salary:
| Period |
Basic Program |
Coordinated Program |
|
| from July 1, 2014, through June 30, 2023 |
11 percent |
7.5 percent |
|
| after June 30, 2023 |
11.25 percent |
7.75 percent |
(b) When an employee contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.
deleted text begin
(c) After June 30, 2015, if a contribution rate revision is required under subdivisions 4a,
4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted
accordingly.
deleted text end
deleted text begin (d)deleted text end new text begin (c) new text end This contribution must be made by deduction from salary. Where any portion of
a member's salary is paid from other than public funds, the member's employee contribution
must be based on the entire salary received.
Sec. 12.
Minnesota Statutes 2018, section 354.42, subdivision 3, is amended to read:
Subd. 3.
Employer.
(a) The regular employer contribution to the fund by Special School
District No. 1, Minneapolis, is an amount equal to the applicable following percentage of
salary of each coordinated member and the applicable percentage of salary of each basic
member specified in paragraph (c).
The additional employer contribution to the fund by Special School District No. 1,
Minneapolis, is an amount equal to 3.64 percent of the salary of each teacher who is a
coordinated member or who is a basic member.
(b) The regular employer contribution to the fund by Independent School District No.
709, Duluth, is an amount equal to the applicable percentage of salary of each old law or
new law coordinated member specified for the coordinated program in paragraph (c).
(c) The employer contribution to the fund for every other employer is an amount equal
to the applicable following percentage of the salary of each coordinated member and the
applicable following percentage of the salary of each basic member:
| Period |
Coordinated Member |
Basic Member |
|||
| from July 1, 2014, through June 30, 2018 |
7.5 percent |
11.5 percent |
|||
| from July 1, 2018, through June 30, 2019 |
7.71 percent |
11.71 percent |
|||
| from July 1, 2019, through June 30, 2020 |
7.92 percent |
11.92 percent |
|||
| from July 1, 2020, through June 30, 2021 |
8.13 percent |
12.13 percent |
|||
| from July 1, 2021, through June 30, 2022 |
8.34 percent |
12.34 percent |
|||
| from July 1, 2022, through June 30, 2023 |
8.55 percent |
12.55 percent |
|||
| after June 30, 2023 |
8.75 percent |
12.75 percent |
|||
(d) When an employer contribution rate changes for a fiscal year, the new contribution
rate is effective for the entire salary paid for each employer unit with the first payroll cycle
reported.
deleted text begin
(e) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a,
4b, and 4c, the employer contributions under paragraphs (a), (b), and (c) must be adjusted
accordingly.
deleted text end
Sec. 13.
Minnesota Statutes 2018, section 354.42, subdivision 7, is amended to read:
Subd. 7.
Erroneous salary deductions or direct payments.
(a) Any deductions taken
from the salary of an employee for the retirement fund in excess of amounts required must
be refunded to the employee upon the discovery of the error and after the verification of
the error by the employing unit making the deduction. The corresponding excess employer
contribution and excess additional employer contribution amounts attributable to the
erroneous salary deduction must be refunded to the employing unit.
(b) If salary deductions and employer contributions were erroneously transmitted to the
retirement fund and should have been transmitted to the plan covered by chapter 352D,
353D, 354B, or 354D, the executive director must transfer these salary deductions and
employer contributions to the account of the appropriate person under the applicable plan.
The transfer to the applicable defined contribution plan account must include interest at the
new text begin applicable monthly new text end rate deleted text begin of 0.71 percent per monthdeleted text end new text begin or rates specified in section 356.59,
subdivision 4new text end , compounded annually, from the first day of the month following the month
in which coverage should have commenced in the defined contribution plan until the end
of the month in which the transfer occurs.
(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a
qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be
made by the executive director. Within 30 days after being notified by the Teachers
Retirement Association of an unmade potential transfer under this paragraph, the employer
of the affected person must transmit an amount representing the applicable salary deductions
and employer contributions, without interest, to the account of the applicable person under
the appropriate plan. The retirement association must provide a credit for the amount of the
erroneous salary deductions and employer contributions against future contributions from
the employer.
(d) If a salary warrant or check from which a deduction for the retirement fund was taken
has been canceled or the amount of the warrant or if a check has been returned to the funds
of the employing unit making the payment, a refund of the amount deducted, or any portion
of it that is required to adjust the salary deductions, must be made to the employing unit.
(e) Erroneous direct payments of member-paid contributions or erroneous salary
deductions that were not refunded during the regular payroll cycle processing must be
refunded to the member, plus interest computed using the rate and method specified in
section 354.49, subdivision 2.
(f) Any refund under this subdivision that would cause the plan to fail to be a qualified
plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded
and instead must be credited against future contributions payable by the employer. The
employer is responsible for refunding to the applicable employee any amount that was
erroneously deducted from the salary of the employee, with interest as specified in paragraph
(e).
(g) If erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the plan and any other plan specified in section 356.99, that
section applies.
Sec. 14.
Minnesota Statutes 2018, section 354.49, subdivision 3, is amended to read:
Subd. 3.
Refund in certain instances.
Any person not covered by the formula program
who has attained normal retirement age with less than the minimum service required for an
annuity and who ceases to be a member because of termination of teaching service is entitled
upon application to a refund in an amount equal to the person's accumulated deductions
plus interest at the rates used to compute annuities under section 354.44, subdivision 2 in
lieu of a proportionate annuity pursuant to section 356.32. If a person who has attained
normal retirement age is eligible for an annuity or is covered by the formula program, the
refund is an amount equal to the accumulated deductions credited to the person's account
as of June 30, 1957, and after July 1, 1957, the accumulated deductions plus interest deleted text begin at the
rate of six percent compounded annually. For the purpose of this subdivision, interest must
be computed on fiscal year end balances to the first day of the month in which the refund
is issueddeleted text end new text begin computed as provided under subdivision 2new text end .
Sec. 15.
Minnesota Statutes 2018, section 354.49, subdivision 4, is amended to read:
Subd. 4.
Termination of membership.
Membership in the retirement association of
any person shall terminate under the following conditions: (1) if a person takes a deleted text begin refundmentdeleted text end
new text begin refund new text end pursuant to this section; (2) when a person's retirement annuity first begins to accrue
as provided in section 354.44, subdivisions 1 and 4; (3) upon the person's ceasing to be a
"teacher" whether by resignation, dismissal, or termination of temporary or provisional
employment for the purpose of determining eligibility for disability or survivorship benefits
as provided in sections 354.48, subdivision 1 and 354.46, subdivision 1, respectively.
Sec. 16.
Minnesota Statutes 2018, section 354B.23, subdivision 5, is amended to read:
Subd. 5.
Omitted member deductions.
(a) If the employing unit that employs a plan
participant fails to deduct the member contribution from the participant's salary and a period
of less than 60 days from the date on which the deduction should have been made has
elapsed, the employing unit must obtain the omitted member deduction by an additional
payroll deduction during the pay period next following the discovery of the omission.
(b) If the employing unit of a plan participant fails to deduct the member contribution
from the participant's salary and that omission continues for at least 60 days from the date
on which the deduction should have been made, the employing unit must pay the amount
representing the omitted member contribution, and the full required employer contribution,
plus deleted text begin compounddeleted text end interest at deleted text begin andeleted text end new text begin the applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end new text begin or rates specified in
section 356.59, subdivision 4, compounded annuallynew text end . The contributions and any interest
must be made within one year of the date on which the omission was discovered.
Sec. 17.
Minnesota Statutes 2018, section 354C.12, subdivision 2, is amended to read:
Subd. 2.
Omitted deductions.
If the employer of personnel covered by the supplemental
retirement plan as provided in section 354C.11 fails to deduct the member basic contribution
from the covered employee's salary and a period of less than 60 days from the date on which
the deduction should have been made has elapsed, the employer must obtain the omitted
member deduction by an additional payroll deduction during the pay period next following
the discovery of the omission. If the employer fails to deduct the member basic contribution
from the covered employee's salary and that omission continues for at least 60 days from
the date on which the member basic contribution deduction should have been made, the
employer must pay the amount representing the omitted member basic contribution, and
the full required omitted employer basic contribution, plus deleted text begin compounddeleted text end interest at deleted text begin andeleted text end new text begin the
applicable new text end annual rate deleted text begin of 8.5 percentdeleted text end new text begin or rates specified in section 356.59, subdivision 4,
compounded annuallynew text end . The contributions must be made within one year of the date on which
the omission was discovered.
Sec. 18.
Minnesota Statutes 2018, section 356.215, subdivision 11, is amended to read:
Subd. 11.
Amortization contributions.
(a) In addition to the exhibit indicating the level
normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial
reporting purposes indicating the additional annual contribution sufficient to amortize the
unfunded actuarial accrued liability and must contain an exhibit deleted text begin for contribution
determination purposesdeleted text end indicating the additional contribution sufficient to amortize the
unfunded actuarial accrued liability. For the retirement plans listed in subdivision 8, paragraph
deleted text begin (c)deleted text end new text begin (a)new text end , but excluding the legislators retirement plan, new text begin the Bloomington Fire Department
Relief Association, and the local monthly benefit volunteer firefighter relief associations,
new text end the additional contribution must be calculated on a level percentage of covered payroll basis
by the established date for full funding in effect when the valuation is prepared, assuming
annual payroll growth at the applicable percentage rate set forth in new text begin the appendix described
in new text end subdivision 8, paragraph deleted text begin (d)deleted text end new text begin (c)new text end . For deleted text begin all other retirement plans and fordeleted text end the legislators
retirement plan, the additional annual contribution must be calculated on a level annual
dollar amount basis.
(b) For any retirement plan other than a retirement plan governed by paragraph (d), (e),
(f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for
calculating the actuarial accrued liability of the fund, a change in the benefit plan governing
annuities and benefits payable from the fund, a change in the actuarial cost method used in
calculating the actuarial accrued liability of all or a portion of the fund, or a combination
of the three, which change or changes by itself or by themselves without inclusion of any
other items of increase or decrease produce a net increase in the unfunded actuarial accrued
liability of the fund, the established date for full funding is the first actuarial valuation date
occurring after June 1, 2020.
(c) For any retirement plan, if there has been a change in any or all of the actuarial
assumptions used for calculating the actuarial accrued liability of the fund, a change in the
benefit plan governing annuities and benefits payable from the fund, a change in the actuarial
cost method used in calculating the actuarial accrued liability of all or a portion of the fund,
or a combination of the three, and the change or changes, by itself or by themselves and
without inclusion of any other items of increase or decrease, produce a net increase in the
unfunded actuarial accrued liability in the fund, the established date for full funding must
be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the fund must be determined in accordance
with the plan provisions governing annuities and retirement benefits and the actuarial
assumptions in effect before an applicable change;
(ii) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the unfunded actuarial accrued liability amount determined under item
(i) by the established date for full funding in effect before the change must be calculated
using the deleted text begin interestdeleted text end new text begin investment return new text end assumption specified in subdivision 8 in effect before
the change;
(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance
with any new plan provisions governing annuities and benefits payable from the fund and
any new actuarial assumptions and the remaining plan provisions governing annuities and
benefits payable from the fund and actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level percentage, whichever is applicable,
needed to amortize the difference between the unfunded actuarial accrued liability amount
calculated under item (i) and the unfunded actuarial accrued liability amount calculated
under item (iii) over a period of 30 years from the end of the plan year in which the applicable
change is effective must be calculated using the applicable deleted text begin interestdeleted text end new text begin investment return
new text end assumption specified in subdivision 8 in effect after any applicable change;
(v) the level annual dollar or level percentage amortization contribution under item (iv)
must be added to the level annual dollar amortization contribution or level percentage
calculated under item (ii);
(vi) the period in which the unfunded actuarial accrued liability amount determined in
item (iii) is amortized by the total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using the deleted text begin interestdeleted text end new text begin investment return
new text end assumption specified in subdivision 8 in effect after any applicable change, rounded to the
nearest integral number of years, but not to exceed 30 years from the end of the plan year
in which the determination of the established date for full funding using the procedure set
forth in this clause is made and not to be less than the period of years beginning in the plan
year in which the determination of the established date for full funding using the procedure
set forth in this clause is made and ending by the date for full funding in effect before the
change; and
(vii) the period determined under item (vi) must be added to the date as of which the
actuarial valuation was prepared and the date obtained is the new established date for full
funding.
(d) For the general employees retirement plan of the Public Employees Retirement
Association, the established date for full funding is June 30, 2048.
(e) For the Teachers Retirement Association, the established date for full funding is June
30, 2048.
(f) For the correctional state employees retirement plan and the State Patrol retirement
plan of the Minnesota State Retirement System, the established date for full funding is June
30, 2048.
(g) For the judges retirement plan, the established date for full funding is June 30, 2048.
(h) For the local government correctional service retirement plan and the public employees
police and fire retirement plan, the established date for full funding is June 30, 2048.
(i) For the St. Paul Teachers Retirement Fund Association, the established date for full
funding is June 30, 2048.
(j) For the general state employees retirement plan of the Minnesota State Retirement
System, the established date for full funding is June 30, 2048.
(k) For the retirement plans for which the annual actuarial valuation indicates an excess
of valuation assets over the actuarial accrued liability, the valuation assets in excess of the
actuarial accrued liability must be recognized as a reduction in the current contribution
requirements by an amount equal to the amortization of the excess expressed as a level
percentage of pay over a 30-year period beginning anew with each annual actuarial valuation
of the plan.
Sec. 19.
Minnesota Statutes 2018, section 423A.02, subdivision 1, is amended to read:
Subdivision 1.
Amortization state aid.
(a) The cities of Fairmont and Minneapolis are
entitled, subject to subdivisions 2, 4, and 5, to receive amortization state aid under this
section.
(b) The total amount of amortization state aid to all entitled municipalities must not
exceed the appropriation under subdivision 3a.
(c) The amortization state aid amounts are:
| City |
Aid Amount |
||
| Fairmont |
$24,172 |
||
| Minneapolis |
$2,728,547 |
If the amortization state aid amounts determined under this paragraph exceed the amount
appropriated for this purpose under subdivision 3a, the amortization state aid for actual
allocation must be reduced pro rata.
(d) Each municipality is eligible for an amortization state aid payment in a fiscal year
if:
(1) for Fairmont, the executive director of the Public Employees Retirement Association
certifies on or before June 30 that a municipal contribution with respect to the former
Fairmont Police Relief Association is payable in the upcoming fiscal year under section
353.665, subdivision 8, paragraph (c); and
(2) for Minneapolis, the executive director of the Public Employees Retirement
Association certifies on or before June 30 that an additional employer contribution with
respect to either the former Minneapolis Firefighters Relief Association or the former
Minneapolis Police Relief Association is payable in the upcoming fiscal year under section
353.665, subdivision deleted text begin 8, paragraph (b)deleted text end new text begin 8anew text end .
Payment of amortization state aid to municipalities must be made to the municipalities
involved in three equal installments on July 15, September 15, and November 15 annually.
Upon receipt of amortization state aid, the municipal treasurer shall transmit the aid amount
to the custodian of the local trust fund or to the executive director of the public employees
police and fire retirement fund, whichever applies, for immediate deposit.
(e) The commissioner of revenue shall administer the amortization state aid program.
The commissioner shall prescribe and periodically revise, as necessary, the required content
of the certifications for amortization state aid.
Sec. 20.
Minnesota Statutes 2018, section 423A.02, subdivision 1b, is amended to read:
Subd. 1b.
Additional amortization state aid.
(a) Annually, the commissioner shall
allocate the additional amortization state aid, if any, including any state aid in excess of the
limitation in subdivision 4, on the following basis:
(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with
police and firefighter retirement coverage;
(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer
firefighter relief associations under section 69.021, subdivision 7, paragraph (d);
(3) 12.9 percent to the city of Duluth to defray employer costs associated with police
and firefighter retirement coverage;
(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment
performance requirement of paragraph (c) is met; and
(5) 1.3 percent to the city of Virginia to defray the employer contribution under section
353.665, subdivision 8, paragraph (d).
If there is no additional employer contribution under section 353.665, subdivision deleted text begin 8,
paragraph (b)deleted text end new text begin 8anew text end , certified under subdivision 1, paragraph (d), clause (2), with respect to
the former Minneapolis Police Relief Association and the former Minneapolis Fire
Department Relief Association, the commissioner shall allocate that 47.1 percent of the aid
as follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
Teachers Retirement Fund Association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighter relief associations under section 69.021,
subdivision 7, paragraph (d). If there is no employer contribution by the city of Virginia
under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department
Relief Association certified on or before June 30 by the executive director of the Public
Employees Retirement Association, the commissioner shall allocate that 1.3 percent of the
aid as follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul
Teachers Retirement Fund Association, and 30 percent as additional funding to support
minimum fire state aid for volunteer firefighter relief associations under section 69.021,
subdivision 7, paragraph (d).
(b) The allocation must be made by the commissioner of revenue on October 1 annually.
(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the
teacher's association five-year average time-weighted rate of investment return does not
equal or exceed the performance of a composite portfolio assumed passively managed
(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt
securities, and 30 percent in domestic stock calculated using the formula under section
11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until
the five-year annual rate of investment return equals or exceeds the performance of that
composite portfolio.
(d) The amounts required under this subdivision are the amounts annually appropriated
to the commissioner of revenue under section 69.021, subdivision 11, paragraph (d), if any,
and the aid amounts in excess of the limitation in subdivision 4.
Sec. 21.
Minnesota Statutes 2018, section 423A.02, subdivision 2, is amended to read:
Subd. 2.
Continued eligibility.
A municipality that received amortization aid in 2011
and is required to make a municipal contribution under section 353.665, subdivision 8,
paragraph deleted text begin (b),deleted text end (c), or (d), new text begin or subdivision 8a, new text end whichever applies, continues to qualify for
amortization state aid for the duration of the applicable municipal contribution.
Sec. 22.
Minnesota Statutes 2018, section 423A.02, subdivision 4, is amended to read:
Subd. 4.
Limit on certain total aid amounts.
(a) The total of amortization aid and
additional amortization aid under this section payable to a municipality to which section
353.665, subdivision 8, paragraph deleted text begin (b),deleted text end (c), or (d)new text begin , or subdivision 8anew text end , applies, may not exceed
the amount of the additional municipal contribution payable by an individual municipality
under section 353.665, subdivision 8, paragraph deleted text begin (b),deleted text end (c), or (d)new text begin , or subdivision 8anew text end .
(b) Any aid amount in excess of the limit under this subdivision for an individual
municipality must be redistributed to the other municipalities to which section 353.665,
subdivision 8, paragraph deleted text begin (b),deleted text end (c), or (d)new text begin , or subdivision 8anew text end , applies. The excess aid must be
distributed in proportion to each municipality's additional municipal contribution under
section 353.665, subdivision 8, paragraph deleted text begin (b)deleted text end , (c), or (d)new text begin , or subdivision 8anew text end .
(c) When the total aid for each municipality under this section equals the limit under
paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.
Sec. 23. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
(a) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "preretirement or
postretirement interest rate" with references to "investment return". The applicable provisions
of Minnesota Statutes are sections 3A.01, subdivision 1a; 352.01, subdivision 12; 353.01,
subdivision 14; 354.05, subdivision 7; and 490.121, subdivision 2a.
new text end
new text begin
(b) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "postretirement or
preretirement interest rate" with references to "investment return". The applicable provision
of Minnesota Statutes is section 353.665, subdivision 8.
new text end
new text begin
(c) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "postretirement interest
rate" with references to "investment return". The applicable provisions of Minnesota Statutes
are sections 3A.01, subdivision 1a; 3A.02, subdivision 1; 352.01, subdivision 12; 352.22,
subdivision 3a; 352B.08, subdivision 3; 353.01, subdivision 14; 353.30, subdivision 3;
353.34, subdivision 3; 354.05, subdivision 7; 354.44, subdivision 2; 354.45, subdivision 2;
354.55, subdivision 11; 490.121, subdivision 2a; and 490.124, subdivision 5.
new text end
new text begin
(d) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "preretirement interest
rate" with references to "investment return". The applicable provisions of Minnesota Statutes
are sections 353.665, subdivision 8; 356.215, subdivision 1; 356.551, subdivision 2; and
353F.025, subdivision 2.
new text end
new text begin
(e) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "postretirement interest"
with references to "investment return". The applicable provisions of Minnesota Statutes are
sections 354.07, subdivision 1; and 356.461, subdivision 1.
new text end
new text begin
(f) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "interest rate" with
references to "investment return". The applicable provisions of Minnesota Statutes are
sections 353G.05, subdivision 3; and 353G.08, subdivision 1a.
new text end
new text begin
(g) In the applicable provisions of Minnesota Statutes 2018 and subsequent editions of
Minnesota Statutes, the revisor of statutes shall replace references to "interest" with references
to "investment return". The applicable provision of Minnesota Statutes is section 352B.08,
subdivision 2b.
new text end
Sec. 24. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 23 are effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: 19-5232
352F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.
The reemployed annuitant earnings limitations of section 352.115, subdivision 10, apply to any service by a terminated hospital employee as an employee of Fairview, University of Minnesota Physicians, or University Affiliated Family Physicians.
353.371 POSTRETIREMENT OPTION.
Subd. 8.
Program expiration.
(a) Initial postretirement option employment agreements must not be entered into after June 30, 2019.
(b) This section expires on June 30, 2024.
353G.15 INDIVIDUAL RETIREMENT ACCOUNT TRANSFER.
Upon receipt of a determination that the voluntary statewide volunteer firefighter retirement plan is a qualified pension plan under section 401(a) of the Internal Revenue Code, as amended, the executive director, upon request, shall transfer a lump-sum service pension amount under sections 353G.08 and 353G.11 of a former volunteer firefighter who has terminated active firefighting services covered by the lump-sum retirement division of the statewide plan and who has attained the age of at least 50 years to the person's individual retirement account under section 408(a) of the federal Internal Revenue Code, as amended. The transfer request must be in a manner prescribed by the executive director and must be filed by the former volunteer firefighter who has sufficient service credit to be entitled to a service pension or, following the death of a participating active firefighter, must be filed by the deceased firefighter's surviving spouse.
354B.20 DEFINITIONS.
Subd. 8.
Faculty.
"Faculty" means an employment position that meets the definition of either section 354.05, subdivision 2, or 354A.011, subdivision 27.
354B.21 COVERAGE.
Subdivision 1.
Eligibility.
The following persons are eligible to have coverage by the individual retirement account plan or coverage by another plan as further specified in this section:
(1) employees of the board who are employed as faculty in an employment classification included in the state university instructional unit or the state college instructional unit under section 179A.10, subdivision 2;
(2) the chancellor and employees of the board in eligible unclassified administrative positions;
(3) the employees in eligible unclassified administrative positions in the state universities;
(4) the employees in eligible unclassified administrative positions in the technical colleges; and
(5) the employees in eligible unclassified administrative positions of the Minnesota Office of Higher Education or of the community colleges.
Subd. 1a.
Required notice; counseling.
(a) No later than 90 days before the end of any applicable election period specified in this section, the employer must provide to a person beginning work in a position subject to this section for which an option to elect alternative retirement plan coverage is authorized the following information:
(1) the default retirement coverage;
(2) election procedures, if applicable, for electing coverage other than the default coverage; and
(3) the website and the telephone number for the plan providing default coverage and comparable information for the plan which the person is eligible to elect.
(b) The election of coverage forms must include a certification statement that the employee has received and reviewed materials on the optional coverage and the default coverage prior to making the election.
Subd. 2.
Coverage; election.
(a) An eligible person employed by the board has the default coverage specified in subdivision 3, or other subdivisions of this section, whichever is applicable, and retains that coverage for the period of covered employment unless a timely election to change that coverage is made as specified in this section.
(b) An eligible person under subdivision 3, paragraph (b) or (c), is authorized to elect prospective Teachers Retirement Association plan coverage.
(c) An eligible person under subdivision 3, paragraph (d), is authorized to elect prospective coverage by the plan established by this chapter.
(d) The election under paragraph (a) must be made within one year of commencing eligible Minnesota State Colleges and Universities system employment. If an election is not made within the specified election period due to a termination of Minnesota State Colleges and Universities system employment, an election may be made within 90 days of returning to eligible Minnesota State Colleges and Universities system employment. Except as specified in paragraph (f), all elections are irrevocable.
(e) Except as provided in paragraph (f), a purchase of service credit in the Teachers Retirement Association plan for any period or periods of Minnesota State Colleges and Universities system employment occurring before the election under this section is prohibited.
(f) Notwithstanding other paragraphs in this subdivision, a faculty member who is a member of the individual retirement account plan may elect to transfer retirement coverage to the teachers retirement plan within one year of the faculty member first achieving tenure or its equivalent at a Minnesota state college or university. The faculty member electing Teachers Retirement Association coverage under this paragraph must purchase service credit in the Teachers Retirement Association for the entire period of time covered under the individual retirement account plan and the purchase payment amount must be determined under section 356.551. The Teachers Retirement Association may charge a faculty member transferring coverage a reasonable fee to cover the costs associated with computing the actuarial cost of purchasing service credit and making the transfer. A faculty member transferring from the individual retirement account plan to the Teachers Retirement Association may use any balances to the credit of the faculty member in the individual retirement account plan, any balances to the credit of the faculty member in the higher education supplemental retirement plan established under chapter 354C, or any source specified in section 356.441, subdivision 1, to purchase the service credit in the Teachers Retirement Association. If the total amount of payments under this paragraph are less than the total purchase payment amount under section 356.551, the payment amounts must be refunded to the applicable source.
Subd. 3.
Default coverage.
(a) Prior to making an election under subdivision 2, or if an eligible person fails to elect coverage by the plan under subdivision 2 or if the person fails to make a timely election, the coverage specified in this subdivision applies.
(b) If an eligible person is employed by the board before July 1, 2011, in an eligible unclassified administrative position or in a faculty position in a technical college, community college, or state university, the retirement coverage is by the plan established by this chapter, unless otherwise specified in this section.
(c) An eligible person described in paragraph (b), except that first employment by the board is on or after July 1, 2011, has retirement coverage by the plan established by this chapter if the eligible person has no:
(1) allowable service credit in any plan listed in section 356.30, subdivision 3; or
(2) prior employment covered by the state unclassified employees retirement program under chapter 352D.
(d) An eligible person described in paragraph (c) has retirement coverage by the Teachers Retirement Association if the person has:
(1) prior employment covered by the state unclassified employees retirement program under chapter 352D and has not withdrawn or transferred assets from that account; or
(2) allowable service credit in a plan listed in section 356.30, subdivision 3.
(e) To ensure that coverage is provided by the proper plan, the employee must certify to the board the existence of any service credit in any plan listed in section 356.30, subdivision 3, or whether the person retains a state unclassified employees retirement program account. If an employee fails to correctly certify prior membership in a plan or the existence of an unclassified program account, the Minnesota State Colleges and Universities system and its board shall be held harmless, and notwithstanding any law to the contrary, any resulting cost or financial liability becomes the employee's responsibility.
Subd. 3a.
Plan coverage and election; certain past service technical college faculty.
(a) Notwithstanding subdivision 3, if an employee of the board was employed in a faculty position in a technical college on June 30, 1997, with coverage by the Teachers Retirement Association, the employee retains that coverage. If the employee was a technical college faculty member on June 30, 1995, covered by a first class city teacher retirement fund established under chapter 354A, the retirement coverage continues with the St. Paul Teachers Retirement Fund Association, whichever is applicable. If the person was a technical college faculty member on June 30, 1995, covered by the former Minneapolis Teachers Retirement Fund Association or the former Duluth Teachers Retirement Fund Association, the Teachers Retirement Association shall provide coverage.
(b) An employee under paragraph (a) who has coverage by the St. Paul Teachers Retirement Fund Association retains that coverage for the duration of the person's employment by the board unless, within one year of a change in employment within the Minnesota State Colleges and Universities system, the person elects the individual retirement account plan for all future employment by the board. The election is irrevocable.
Subd. 3b.
Coverage of certain former technical college faculty members.
A person who was employed as a teacher by a technical college before July 1, 1995, and who subsequently is reclassified into a different employment position while continuing to perform the same or essentially the same employment duties and consequently shifts from the technical college instructional collective bargaining unit to another state collective bargaining unit retains coverage by the Teachers Retirement Association or the applicable first class city teachers retirement fund association, whichever applies.
Subd. 4.
Coverage in the event of acting, interim, or temporary appointments.
(a) A person previously employed by the board and subsequently appointed by the board to an acting, interim, or temporary faculty or eligible unclassified administrative position by the board retains the retirement coverage that the person had in the prior board position. If the participant's status becomes permanent, the participant has the option to make an election of retirement coverage appropriate to the retirement plan in which the employment position should have retirement coverage consistent with subdivision 2.
(b) A person who is appointed to an acting, interim, or temporary faculty position by the board and who was not employed in a faculty position by the board immediately before that appointment must elect coverage as provided in subdivision 2.
Subd. 5.
Payment for certain prior uncovered service.
(a) A person employed in a faculty position or in an eligible unclassified administrative position by the board who was initially excluded from participation in the individual retirement account plan coverage, who was not covered by any other Minnesota public pension plan for that service, and who is subsequently eligible to participate in the individual retirement account plan may make member contributions for that period of prior uncovered teaching employment or eligible unclassified administrative employment with the board.
(b) The member contributions for prior uncovered board service are the amount that the person would have paid if the prior service had been covered employment. The payment must be made to the individual retirement account plan administrator and may be made only by payroll deduction. The payment must be made by the later of:
(1) 45 days of the start of covered employment; or
(2) the end of the fiscal year in which covered employment began.
(c) The board must contribute an amount to match any contribution made by a plan participant under this subdivision.
(d) Payments of contributions for prior uncovered board service under this subdivision must be invested in the same manner as the regular contributions made by or on behalf of the plan participant.
Subd. 6.
Continuation of coverage.
Except as otherwise specified in this section, once a person is employed in a position that qualifies for participation in the individual retirement account plan and elects to participate in the plan, all subsequent service by the person as a faculty member or in an eligible unclassified administrative position employed by the board or other employing unit is covered by the individual retirement account plan.
Subd. 7.
Coverage; certain part-time employees.
A person employed in a part-time faculty position or in a part-time eligible unclassified administrative position who does not meet the definition of covered employment under section 354B.20, subdivision 4, because the employment does not meet the threshold required under that provision, must certify prior membership in the Teachers Retirement Association to the Minnesota State Colleges and Universities system. If the certification is incorrect, the employee, and not the employer, is required to pay interest on the employee and employer contributions, and, if applicable, on the employer additional contributions to the Teachers Retirement Association under section 354.52, subdivision 4.