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HF 661

as introduced - 89th Legislature (2015 - 2016) Posted on 02/05/2015 01:59pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/05/2015

Current Version - as introduced

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A bill for an act
relating to retirement; Minnesota State Retirement System; various plans;
making changes of an administrative nature; clarifying coverage treatment of
former MSHS-Cambridge employees; revising disability to retirement transfer
dates for State Patrol plan disabilitants; correcting legislators plan postretirement
adjustment trigger; amending Minnesota Statutes 2014, sections 352.91,
subdivision 3e; 352B.10, subdivision 5; 352B.105; 356.415, subdivision 1a.

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

Section 1.

Minnesota Statutes 2014, section 352.91, subdivision 3e, is amended to read:


Subd. 3e.

Minnesota Specialty Health System-Cambridge.

(a) "Covered
correctional service" means service by a state employee in one of the employment positions
with the Minnesota Specialty Health System-Cambridge specified in paragraph (b) if at
least 75 percent of the employee's working time is spent in direct contact with patients
who are in the Minnesota Specialty Health System-Cambridge and if service in such a
position is certified to the executive director by the commissioner of human services.

(b) The employment positions are:

(1) behavior analyst 1;

(2) behavior analyst 2;

(3) behavior analyst 3;

(4) group supervisor;

(5) group supervisor assistant;

(6) human services support specialist;

(7) residential program lead;

(8) psychologist 2;

(9) recreation program assistant;

(10) recreation therapist senior;

(11) registered nurse senior;

(12) skills development specialist;

(13) social worker senior;

(14) social worker specialist; and

(15) speech pathology specialist.

(c) A Department of Human Services employee who was employed at the Minnesota
Specialty Health System-Cambridge immediately preceding the 2014 conversion to the
community-based homes and was in covered correctional service at the time of the
transition shall continue to be covered by the correctional employees retirement plan while
employed and without a break in service with the Department of Human Services in the
direct care and treatment deleted text begin services administrationdeleted text end new text begin of patientsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2014, section 352B.10, subdivision 5, is amended to read:


Subd. 5.

Optional annuity.

A disabilitant may elect, in lieu of spousal survivorship
coverage under section 352B.11, subdivision 2b, the normal disability benefit or an
optional annuity as provided in section 352B.08, subdivision 3. The choice of an optional
annuity must be made in writing, on a form prescribed by the executive director, and deleted text begin mustdeleted text end
new text begin may new text end be made before the commencement of the payment of the disability benefitdeleted text begin , ordeleted text end new text begin . If the
disabilitant did not select an optional annuity at the time of application, the disabilitant
may select an optional annuity under this section
new text end within 90 days before reaching age 55
or new text begin within 90 days new text end before reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later. The optional annuity is effective on the date on
which the disability benefit begins to accrue, or the month following the attainment of age
55 or following the five-year anniversary of the effective date of the disability benefit,
whichever is later.

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 2014, section 352B.105, is amended to read:


352B.105 TERMINATION OF DISABILITY BENEFITS.

new text begin Subdivision 1. new text end

new text begin Post-June 30, 2015, disabilitants. new text end

new text begin For disability benefits which
begin to accrue after June 30, 2015,
new text end disability benefits payable under section 352B.10
must terminate on the transfer date, which is the end of the month in which the disabilitant
becomes deleted text begin 65deleted text end new text begin 55 new text end years old or the five-year anniversary of the effective date of the disability
benefit, whichever is later. If the disabilitant is still disabled on the transfer date, the
disabilitant must be deemed to be a retired member deleted text begin and, if the disabilitant had chosen an
optional annuity under section 352B.10, subdivision 5, must receive an annuity under the
terms of the optional annuity previously chosen. If the disabilitant had not chosen an
optional annuity under section 352B.10, subdivision 5, the disabilitant may then choose to
receive either a normal retirement annuity computed under section 352B.08, subdivision
2
, or an optional annuity as provided in section 352B.08, subdivision 3. An optional
annuity must be chosen within 90 days of attaining the transfer date. If an optional
annuity is chosen, the optional annuity accrues on the first of the month next following the
transfer date
deleted text end .

new text begin Subd. 2. new text end

new text begin Pre-July 1, 2015, disabilitants. new text end

new text begin For disability benefits which begin
to accrue before July 1, 2015, disability benefits payable under section 352B.10 must
terminate on the transfer date, which is the end of the month in which the disabilitant
becomes 65 years old or the five-year anniversary of the effective date of the disability
benefit, whichever is later. If the disabilitant is still disabled on the transfer date, the
disabilitant must be deemed to be a retired member.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 356.415, subdivision 1a, is amended to read:


Subd. 1a.

Annual postretirement adjustments; Minnesota State Retirement
System plans other than State Patrol retirement plan.

(a) Retirement annuity, disability
benefit, or survivor benefit recipients of the legislators retirement deleted text begin plansdeleted text end new text begin plannew text end , including
constitutional officers as specified in chapter 3A, the general state employees retirement
plan, the correctional state employees retirement plan, the unclassified state employees
retirement program, and the judges retirement plan are entitled to a postretirement
adjustment annually on January 1, as follows:

(1) a postretirement increase of two percent must be applied each year, effective
on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
who has been receiving an annuity or a benefit for at least 18 full months before the
January 1 increase; and

(2) for each annuitant or benefit recipient who has been receiving an annuity or
a benefit for at least six full months, an annual postretirement increase of 1/12 of two
percent for each month that the person has been receiving an annuity or benefit must be
applied, effective January 1, following the calendar year in which the person has been
retired for at least six months, but has been retired for less than 18 months.

(b) The increases provided by this subdivision commence on January 1, 2011.
Increases under this subdivision for the general state employees retirement plan, the
correctional state employees retirement plan, or the judges retirement plan terminate on
December 31 of the calendar year in which two prior consecutive actuarial valuations
prepared by the approved actuary under sections 356.214 and 356.215 and the standards
for actuarial work promulgated by the Legislative Commission on Pensions and
Retirement deleted text begin indicatesdeleted text end new text begin indicate new text end that the market value of assets of the retirement plan
equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan
and increases under subdivision 1 recommence after that date. Increases under this
subdivision for the legislators retirement plan deleted text begin or the elected statedeleted text end new text begin established under chapter
3a, including constitutional
new text end officers deleted text begin retirement plandeleted text end new text begin specified in that chapter, new text end terminate on
December 31 of the calendar year in which deleted text begin thedeleted text end new text begin two prior consecutive new text end actuarial deleted text begin valuationdeleted text end
new text begin valuations new text end prepared by the approved actuary under sections 356.214 and 356.215 and the
standards for actuarial work promulgated by the Legislative Commission on Pensions
and Retirement deleted text begin indicatesdeleted text end new text begin indicate new text end that the market value of assets of the general state
employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability
of the retirement plan and increases under subdivision 1 recommence after that date.

(c) An increase in annuity or benefit payments under this subdivision must be made
automatically unless written notice is filed by the annuitant or benefit recipient with the
executive director of the applicable covered retirement plan requesting that the increase
not be made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2014.
new text end