HF 923

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; state employees; contribution 
  1.3             rates and annuity formulas for correctional employees; 
  1.4             amending Minnesota Statutes 1994, sections 352.92, 
  1.5             subdivisions 1 and 2; 352.93, subdivision 2; 352.95, 
  1.6             subdivision 1; and 356.30, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 352.92, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [EMPLOYEE CONTRIBUTIONS.] Beginning with 
  1.11  the first full pay period after July 1, 1984, in lieu of 
  1.12  employee contributions payable under section 352.04, subdivision 
  1.13  2, contributions by covered correctional employees must be in an 
  1.14  amount equal to 4.90 5.35 percent of salary.  
  1.15     Sec. 2.  Minnesota Statutes 1994, section 352.92, 
  1.16  subdivision 2, is amended to read: 
  1.17     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] (a) In lieu of employer 
  1.18  contributions payable under section 352.04, subdivision 3, the 
  1.19  employer shall contribute for covered correctional employees an 
  1.20  amount equal to 6.27 6.85 percent of salary.  
  1.21     (b) By January 1 of each year, the board of directors shall 
  1.22  report to the legislative commission on pensions and retirement, 
  1.23  the chair of the committee on appropriations of the house of 
  1.24  representatives, and the chair of the committee on finance of 
  1.25  the senate on the amount raised by the employer and employee 
  1.26  contribution rates in effect and whether the total amount is 
  2.1   less than, the same as, or more than the actuarial requirement 
  2.2   determined under section 356.215. 
  2.3      Sec. 3.  Minnesota Statutes 1994, section 352.93, 
  2.4   subdivision 2, is amended to read: 
  2.5      Subd. 2.  [CALCULATING MONTHLY ANNUITY.] The monthly 
  2.6   annuity under this section must be determined by multiplying the 
  2.7   average monthly salary by the number of years, or completed 
  2.8   months, of covered correctional service by 2.5 2.65 percent.  
  2.9   However, the monthly annuity must not exceed 75 79.50 percent of 
  2.10  the average monthly salary.  
  2.11     Sec. 4.  Minnesota Statutes 1994, section 352.95, 
  2.12  subdivision 1, is amended to read: 
  2.13     Subdivision 1.  [JOB-RELATED DISABILITY.] A covered 
  2.14  correctional employee who becomes disabled and physically unfit 
  2.15  to perform the duties of the position as a direct result of an 
  2.16  injury, sickness, or other disability incurred in or arising out 
  2.17  of any act of duty that makes the employee physically or 
  2.18  mentally unable to perform the duties, is entitled to a 
  2.19  disability benefit based on covered correctional service only.  
  2.20  The benefit amount must equal 50 53 percent of the average 
  2.21  salary defined in section 352.93, plus an additional 2-1/2 2.65 
  2.22  percent for each year of covered correctional service in excess 
  2.23  of 20 years, prorated for completed months. 
  2.24     Sec. 5.  Minnesota Statutes 1994, section 356.30, 
  2.25  subdivision 1, is amended to read: 
  2.26     Subdivision 1.  [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1) 
  2.27  Notwithstanding any provisions to the contrary of the laws 
  2.28  governing the funds enumerated in subdivision 3, a person who 
  2.29  has met the qualifications of clause (2) may elect to receive a 
  2.30  retirement annuity from each fund in which the person has at 
  2.31  least six months allowable service, based on the allowable 
  2.32  service in each fund, subject to the provisions of clause (3).  
  2.33     (2) A person may receive upon retirement a retirement 
  2.34  annuity from each fund in which the person has at least six 
  2.35  months allowable service, and augmentation of a deferred annuity 
  2.36  calculated under the laws governing each public pension plan or 
  3.1   fund named in subdivision 3, from the date the person terminated 
  3.2   all public service if: 
  3.3      (a) the person has allowable service totaling an amount 
  3.4   that allows the person to receive an annuity in any two or more 
  3.5   of the enumerated funds; and 
  3.6      (b) the person has not begun to receive an annuity from any 
  3.7   enumerated fund or the person has made application for benefits 
  3.8   from all funds the effective dates of the retirement annuity 
  3.9   with each fund under which the person chooses to receive an 
  3.10  annuity are within a one-year period.  
  3.11     (3) The retirement annuity from each fund must be based 
  3.12  upon the allowable service in each fund, except that:  
  3.13     (a) The laws governing annuities must be the law in effect 
  3.14  on the date of termination from the last period of public 
  3.15  service under a covered fund with which the person earned a 
  3.16  minimum of one-half year of allowable service credit during that 
  3.17  employment.  
  3.18     (b) The "average salary" on which the annuity from each 
  3.19  covered fund in which the employee has credit in a formula plan 
  3.20  shall be based on the employee's highest five successive years 
  3.21  of covered salary during the entire service in covered funds.  
  3.22     (c) The formula percentages to be used by each fund must be 
  3.23  those percentages prescribed by each fund's formula as continued 
  3.24  for the respective years of allowable service from one fund to 
  3.25  the next, recognizing all previous allowable service with the 
  3.26  other covered funds.  
  3.27     (d) Allowable service in all the funds must be combined in 
  3.28  determining eligibility for and the application of each fund's 
  3.29  provisions in respect to actuarial reduction in the annuity 
  3.30  amount for retirement prior to normal retirement.  
  3.31     (e) The annuity amount payable for any allowable service 
  3.32  under a nonformula plan of a covered fund must not be affected 
  3.33  but such service and covered salary must be used in the above 
  3.34  calculation.  
  3.35     (f) This section shall not apply to any person whose final 
  3.36  termination from the last public service under a covered fund is 
  4.1   prior to May 1, 1975.  
  4.2      (g) For the purpose of computing annuities under this 
  4.3   section the formula percentages used by any covered fund, except 
  4.4   the public employees police and fire fund and the correctional 
  4.5   employees retirement program, must not exceed 2-1/2 percent per 
  4.6   year of service for any year of service or fraction thereof.  
  4.7   The formula percentage used by the public employees police and 
  4.8   fire fund must not exceed 2.65 percent per year of service for 
  4.9   any year of service or fraction thereof.  
  4.10     (h) Any period of time for which a person has credit in 
  4.11  more than one of the covered funds must be used only once for 
  4.12  the purpose of determining total allowable service.  
  4.13     (i) If the period of duplicated service credit is more than 
  4.14  six months, or the person has credit for more than six months 
  4.15  with each of the funds, each fund shall apply its formula to a 
  4.16  prorated service credit for the period of duplicated service 
  4.17  based on a fraction of the salary on which deductions were paid 
  4.18  to that fund for the period divided by the total salary on which 
  4.19  deductions were paid to all funds for the period.  
  4.20     (j) If the period of duplicated service credit is less than 
  4.21  six months, or when added to other service credit with that fund 
  4.22  is less than six months, the service credit must be ignored and 
  4.23  a refund of contributions made to the person in accord with that 
  4.24  fund's refund provisions.  
  4.25     Sec. 6.  [EFFECTIVE DATE.] 
  4.26     Sections 1 and 2 are effective the first full pay period 
  4.27  after July 1, 1995.  All other sections are effective July 1, 
  4.28  1995.