HF 947

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying provisions governing 
  1.3             the retirement plan for correctional employees under 
  1.4             the Minnesota state retirement system; appropriating 
  1.5             money; amending Minnesota Statutes 1994, sections 
  1.6             352.90; 352.91, subdivisions 1, 2, 3b, 4, and by 
  1.7             adding subdivisions; 352.92, subdivision 2; repealing 
  1.8             Minnesota Statutes 1994, section 352.91, subdivision 3.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 352.90, is 
  1.11  amended to read: 
  1.12     352.90 [POLICY.] 
  1.13     It is the policy of the legislature to provide special 
  1.14  retirement benefits and contributions for certain correctional 
  1.15  employees who may be required to retire at an early age because 
  1.16  they lose the mental or physical capacity required to maintain 
  1.17  the safety, security, discipline, and custody of inmates at 
  1.18  state adult correctional facilities or of patients at the 
  1.19  Minnesota security hospital or at the Minnesota sexual 
  1.20  psychopathic personality treatment center.  
  1.21     Sec. 2.  Minnesota Statutes 1994, section 352.91, 
  1.22  subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [QUALIFYING JOBS.] "Covered correctional 
  1.24  service" means:  (1) services service performed on, before, or 
  1.25  after July 1, 1973, by a state employee, as defined in section 
  1.26  352.01, employed at a state correctional facility, the Minnesota 
  1.27  security hospital, or the Minnesota sexual psychopathic 
  2.1   personality treatment center as an attendant guard, attendant 
  2.2   guard supervisor, correctional captain, correctional counselor 
  2.3   I, correctional counselor II, correctional counselor III, 
  2.4   correctional counselor IV, correctional lieutenant, correctional 
  2.5   officer, correctional sergeant, director of attendant guards, 
  2.6   and guard farmer garden, provided the employee was employed in 
  2.7   the position on July 1, 1973, or after; (2) services performed 
  2.8   before July 1, 1973, by an employee covered under clause (1) in 
  2.9   a position classified as a houseparent, special schools 
  2.10  counselor, shop instructor, or guard instructor; and (3) 
  2.11  services performed before July 1, 1973, in a position listed in 
  2.12  clause (1) and positions classified as houseparent, guard 
  2.13  instructor, and guard farmer dairy, by a person employed on July 
  2.14  1, 1973, in a position classified as a license plant manager, 
  2.15  prison industry lead supervisor (general, metal fabricating and 
  2.16  foundry), prison industry supervisor, food service manager, 
  2.17  prison farmer supervisor, prison farmer assistant supervisor, or 
  2.18  rehabilitation therapist employed at the Minnesota security 
  2.19  hospital.  However, an employee is not covered under sections 
  2.20  352.91 to 352.951 if first employed after July 1, 1973, and 
  2.21  because of age could not acquire sufficient service to qualify 
  2.22  for an annuity as a correctional employee: 
  2.23     (1) a corrections officer 1; 
  2.24     (2) a corrections officer 2; 
  2.25     (3) a corrections officer 3; 
  2.26     (4) a corrections officer supervisor; 
  2.27     (5) a corrections officer 4; 
  2.28     (6) a corrections captain; 
  2.29     (7) a security counselor; or 
  2.30     (8) a security counselor lead. 
  2.31     Sec. 3.  Minnesota Statutes 1994, section 352.91, 
  2.32  subdivision 2, is amended to read: 
  2.33     Subd. 2.  [TEACHING, MAINTENANCE, AND TRADES.] "Covered 
  2.34  correctional service" also means service rendered at any time by 
  2.35  state employees as special teachers, maintenance personnel, and 
  2.36  members of trades certified by the commissioner of employee 
  3.1   relations as being regularly engaged in rehabilitation, 
  3.2   treatment, custody, or supervision of inmates employed at the a 
  3.3   Minnesota correctional facility-St. Cloud, the Minnesota 
  3.4   correctional facility-Stillwater and the Minnesota correctional 
  3.5   facility-Shakopee on or after July 1, 1974, other than any 
  3.6   employees who are age 62 or older as of July 1, 1974.  Effective 
  3.7   the first payroll period after June 1, 1980, or the date of 
  3.8   initial employment in covered correctional service, whichever is 
  3.9   later, "covered correctional service" also includes those 
  3.10  employees of the Minnesota correctional facility-Lino Lakes and 
  3.11  the employees of any other adult state correctional facility 
  3.12  which may be established, who perform covered correctional 
  3.13  service after June 1, 1980.  "Special teacher" also includes the 
  3.14  classifications of facility educational administrator and 
  3.15  supervisor facility, or of patients at the Minnesota security 
  3.16  hospital or at the Minnesota sexual psychopathic personality 
  3.17  treatment center. 
  3.18     Sec. 4.  Minnesota Statutes 1994, section 352.91, is 
  3.19  amended by adding a subdivision to read: 
  3.20     Subd. 2a.  [SPECIAL TEACHERS.] "Covered correctional 
  3.21  service" also means service rendered by a state employee as a 
  3.22  special teacher employed by the department of corrections or by 
  3.23  the department of human services at a security unit, provided 
  3.24  that at least 75 percent of the employee's working time is spent 
  3.25  in direct contact with inmates or patients and the fact of this 
  3.26  direct contact is certified to the executive director by the 
  3.27  appropriate commissioner, unless the person elects to retain the 
  3.28  current retirement coverage under section 11. 
  3.29     Sec. 5.  Minnesota Statutes 1994, section 352.91, 
  3.30  subdivision 3b, is amended to read: 
  3.31     Subd. 3b.  [OLDER EMPLOYEES FORMERLY EXCLUDED.] "Covered 
  3.32  correctional service" also means service performed by certain 
  3.33  state employees in positions usually covered by this section 
  3.34  who:  (1) were excluded by law from coverage between July 1973 
  3.35  and July 1980; (2) were age 45 or over when hired; (3) are were 
  3.36  state employees on March 26, 1986; and (4) elect who elected 
  4.1   coverage.  Eligible employees who elect coverage must file 
  4.2   written notice of their election with the director before July 
  4.3   1, 1986.  An employee who did not elect coverage before July 1, 
  4.4   1986, is not covered by the correctional retirement plan, even 
  4.5   if the employee's employment classification may be considered to 
  4.6   be covered correctional service under another subdivision of 
  4.7   this section. 
  4.8      Sec. 6.  Minnesota Statutes 1994, section 352.91, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 3c.  [NURSING PERSONNEL.] (a) "Covered correctional 
  4.11  service" means service by a state employee in one of the 
  4.12  employment positions at a correctional facility or at the 
  4.13  Minnesota security hospital specified in paragraph (b), provided 
  4.14  that at least 75 percent of the employee's working time is spent 
  4.15  in direct contact with inmates or patients and the fact of this 
  4.16  direct contact is certified to the executive director by the 
  4.17  appropriate commissioner, unless the person elects to retain the 
  4.18  current retirement coverage under section 11. 
  4.19     (b) The employment positions are as follows: 
  4.20     (1) registered nurse - senior; 
  4.21     (2) registered nurse; 
  4.22     (3) registered nurse - principal; and 
  4.23     (4) licensed practical nurse 2. 
  4.24     Sec. 7.  Minnesota Statutes 1994, section 352.91, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 3d.  [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered 
  4.27  correctional service" means service by a state employee in one 
  4.28  of the employment positions at a correctional facility or at the 
  4.29  Minnesota security hospital specified in paragraph (b), provided 
  4.30  that at least 75 percent of the employee's working time is spent 
  4.31  in direct contact with inmates or patients and the fact of this 
  4.32  direct contact is certified to the executive director by the 
  4.33  appropriate commissioner, unless the person elects to retain the 
  4.34  current retirement coverage under section 11. 
  4.35     (b) The employment positions are as follows:  baker, 
  4.36  chemical dependency counselor supervisor, chief cook, cook, cook 
  5.1   coordinator, corrections behavior therapist, corrections 
  5.2   behavior therapist specialist, corrections parent education 
  5.3   coordinator, corrections security caseworker, corrections 
  5.4   security caseworker career, corrections teaching assistant, 
  5.5   dentist, electrician supervisor, general repair worker, 
  5.6   library/information research services specialist, library 
  5.7   information research services specialist senior, plumber 
  5.8   supervisor, psychologist 3, recreation therapist, recreation 
  5.9   therapist coordinator, recreation program assistant, recreation 
  5.10  therapist senior, stores clerk senior, water treatment plant 
  5.11  operator, work therapy technician, work therapy assistant, work 
  5.12  therapy program coordinator. 
  5.13     Sec. 8.  Minnesota Statutes 1994, section 352.91, 
  5.14  subdivision 4, is amended to read: 
  5.15     Subd. 4.  [CERTIFICATION PROCEDURE FOR ADDITIONAL 
  5.16  POSITIONS.] Upon the recommendation of the commissioner of 
  5.17  corrections or the commissioner of human services, whichever is 
  5.18  the appropriate employing authority, with the approval of the 
  5.19  legislative advisory committee and with notification to and 
  5.20  receipt of comments from the legislative commission on pensions 
  5.21  and retirement, the commissioner of employee relations may 
  5.22  certify additional civil service classifications positions at a 
  5.23  state correctional or security hospital facilities facility, the 
  5.24  Minnesota security hospital, or the Minnesota sexual 
  5.25  psychopathic personality treatment center to the executive 
  5.26  director of the Minnesota state retirement system as positions 
  5.27  rendering covered correctional service.  The commissioner of 
  5.28  corrections and the commissioner of human services must 
  5.29  establish, in writing, a set of criteria upon which to base a 
  5.30  recommendation for certifying additional civil service 
  5.31  classifications as rendering covered correctional service. 
  5.32     Sec. 9.  Minnesota Statutes 1994, section 352.91, is 
  5.33  amended by adding a subdivision to read: 
  5.34     Subd. 5.  [CORRECTION OF ERRORS.] (a) If it is determined 
  5.35  that an employee should have been covered by the correctional 
  5.36  retirement plan but was placed in the general employees 
  6.1   retirement plan or teachers retirement association in error, the 
  6.2   commissioner of corrections or the commissioner of human 
  6.3   services must report the error to the executive director of the 
  6.4   Minnesota state retirement system.  The service must be properly 
  6.5   credited under the correctional employees retirement plan for a 
  6.6   period of not to exceed five years before the date on which the 
  6.7   commissioner of corrections or human services notifies the 
  6.8   executive director of the Minnesota state retirement system in 
  6.9   writing or five years from the date on which an employee 
  6.10  requests, in writing, the applicable department to determine if 
  6.11  the person has appropriate retirement plan coverage, whichever 
  6.12  is earlier.  If the error covers more than a five-year period, 
  6.13  the service before the five-year period must remain under the 
  6.14  plan originally credited the service.  The employee shall pay 
  6.15  the difference between the employee contributions actually paid 
  6.16  during the five-year period and what should have been paid under 
  6.17  the correctional employees retirement plan.  The department 
  6.18  making the error shall pay to the correctional employees 
  6.19  retirement plan an amount equal to the difference in the present 
  6.20  value of accrued retirement benefits caused by the change in 
  6.21  coverage after subtracting the amount paid by the employee.  
  6.22  Calculation of this amount must be made by the executive 
  6.23  director of the Minnesota state retirement system using the 
  6.24  applicable preretirement interest rate specified in section 
  6.25  356.215, subdivision 4d, and the mortality table adopted for the 
  6.26  Minnesota state retirement system.  The calculation must assume 
  6.27  continuous future service in the correctional employees 
  6.28  retirement plan until the employee would reach the age eligible 
  6.29  for normal retirement.  The calculation must also assume a 
  6.30  future salary history that includes annual salary increases at 
  6.31  the salary increase rate or rates specified in section 356.215, 
  6.32  subdivision 4d. 
  6.33     (b) If an employee was covered under the correctional 
  6.34  employees retirement plan, but it is determined that the person 
  6.35  should have been covered under the general employees retirement 
  6.36  plan, the error must be corrected if written notification is 
  7.1   provided to the employee and the executive director of the 
  7.2   Minnesota state retirement system within three years of the date 
  7.3   on which the coverage was improperly started.  The difference in 
  7.4   employee and employer contributions actually paid to the 
  7.5   correctional employees retirement plan in excess of the amount 
  7.6   that should have been paid to the general employees retirement 
  7.7   plan must be refunded to the employee and the employer paying 
  7.8   the additional contributions. 
  7.9      Sec. 10.  Minnesota Statutes 1994, section 352.92, 
  7.10  subdivision 2, is amended to read: 
  7.11     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] (a) In lieu of employer 
  7.12  contributions payable under section 352.04, subdivision 3, the 
  7.13  employer shall contribute for covered correctional employees an 
  7.14  amount equal to 6.27 6.75 percent of salary.  
  7.15     (b) By January 1 of each year, the board of directors shall 
  7.16  report to the legislative commission on pensions and retirement, 
  7.17  the chair of the committee on appropriations of the house of 
  7.18  representatives, and the chair of the committee on finance of 
  7.19  the senate on the amount raised by the employer and employee 
  7.20  contribution rates in effect and whether the total amount is 
  7.21  less than, the same as, or more than the actuarial requirement 
  7.22  determined under section 356.215. 
  7.23     Sec. 11.  [TEMPORARY PROVISION; ELECTION TO RETAIN 
  7.24  RETIREMENT COVERAGE.] 
  7.25     (a) An employee in a position specified as qualifying under 
  7.26  sections 4, 6, and 7, may elect to retain coverage under the 
  7.27  general employees retirement plan of the Minnesota state 
  7.28  retirement system or the teachers retirement association, or may 
  7.29  elect to have coverage transferred to and to contribute to the 
  7.30  correctional employees retirement plan.  An employee electing to 
  7.31  participate in the correctional employees retirement plan shall 
  7.32  begin making contributions to the correctional plan beginning 
  7.33  the first full pay period after June 30, 1996, or the first full 
  7.34  pay period following filing of their election to transfer 
  7.35  coverage to the correctional employees retirement plan, 
  7.36  whichever is later.  The election to retain coverage or to 
  8.1   transfer coverage must be made in writing by the person on a 
  8.2   form prescribed by the executive director of the Minnesota state 
  8.3   retirement system and must be filed with the executive director 
  8.4   no later than December 31, 1996. 
  8.5      (b) An employee failing to make an election by December 15, 
  8.6   1996, must be notified by certified mail by the executive 
  8.7   director of the Minnesota state retirement system or of the 
  8.8   teachers retirement association, whichever applies, of the 
  8.9   deadline to make a choice.  A person who does not submit an 
  8.10  election form must continue coverage in the general employees 
  8.11  retirement plan or the teachers retirement association, 
  8.12  whichever applies, and forfeits all rights to transfer 
  8.13  retirement coverage to the correctional employees retirement 
  8.14  plan. 
  8.15     (c) The election to retain coverage in the general employee 
  8.16  retirement plan or the teachers retirement association or the 
  8.17  election to transfer retirement coverage to the correctional 
  8.18  employees retirement plan is irrevocable once it is filed with 
  8.19  the executive director. 
  8.20     Sec. 12.  [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN 
  8.21  PERSONS.] 
  8.22     Subdivision 1.  [ELECTION OF PRIOR STATE SERVICE 
  8.23  COVERAGE.] (a) An employee who has future retirement coverage 
  8.24  transferred to the correctional employees retirement plan under 
  8.25  sections 4, 6, and 7, and who does not elect to retain general 
  8.26  state employee retirement plan or teachers retirement 
  8.27  association coverage is entitled to elect to obtain prior 
  8.28  service credit for eligible state service performed on or after 
  8.29  July 1, 1975, and before the first day of the first full pay 
  8.30  period beginning after June 30, 1996, with the department of 
  8.31  corrections or with the department of human services at the 
  8.32  Minnesota security hospital.  All prior service credit must be 
  8.33  purchased.  
  8.34     (b) Eligible state service with the department of 
  8.35  corrections or with the department of human services is any 
  8.36  prior period of continuous service on or after July 1, 1975, 
  9.1   performed as an employee of the department of corrections or of 
  9.2   the department of human services that would have been eligible 
  9.3   for the correctional employees retirement plan coverage under 
  9.4   sections 4, 6, and 7, if that prior service had been performed 
  9.5   after the first day of the first full pay period beginning after 
  9.6   June 30, 1996, rather than before that date.  Service is 
  9.7   continuous if there has been no period of discontinuation of 
  9.8   eligible state service for a period greater than 180 calendar 
  9.9   days. 
  9.10     (c) The department of corrections or the department of 
  9.11  human services, whichever applies, shall certify eligible state 
  9.12  service to the executive director of the Minnesota state 
  9.13  retirement system. 
  9.14     (d) A covered correctional plan employee employed on July 
  9.15  1, 1996, who has past service in a job classification covered 
  9.16  under section 4, 6, or 7, on July 1, 1996, is entitled to 
  9.17  purchase the past service if the applicable department certifies 
  9.18  that the employee met the eligibility requirements for 
  9.19  coverage.  The employee must make the additional employee 
  9.20  contributions under section 9.  Payments for past service must 
  9.21  be completed by September 30, 1998.  
  9.22     Subd. 2.  [PAYMENT FOR PRIOR SERVICE.] (a) An employee 
  9.23  electing to obtain prior service credit under subdivision 1 must 
  9.24  pay an additional employee contribution for that prior service 
  9.25  except for any period of time that the employee was a member of 
  9.26  the basic program of the teachers retirement association.  The 
  9.27  additional member contribution is the contribution differential 
  9.28  percentage applied to the actual salary paid to the employee 
  9.29  during the period of the prior eligible state service, plus 
  9.30  interest at the rate of six percent per annum, compounded 
  9.31  annually.  The contribution differential percentage is the 
  9.32  difference between 4.9 percent of salary and the applicable 
  9.33  employee contribution rate of the general state employees 
  9.34  retirement plan or the teachers retirement association during 
  9.35  the prior eligible state service. 
  9.36     (b) The additional member contribution must be paid only in 
 10.1   a lump sum.  Payment must accompany the election to obtain prior 
 10.2   service credit.  No election or payment may be made by the 
 10.3   person or accepted by the executive director after September 30, 
 10.4   1998. 
 10.5      Subd. 3.  [TRANSFER OF ASSETS.] Assets must be transferred 
 10.6   from the teachers retirement association or the general state 
 10.7   employees retirement plan, whichever applies, to the 
 10.8   correctional employees retirement plan in an amount equal to the 
 10.9   present value of benefits earned under the general employees 
 10.10  retirement plan or the teachers retirement plan, whichever 
 10.11  applies, for each employee transferring to the correctional 
 10.12  employees retirement plan, as determined by the actuary retained 
 10.13  by the legislative commission on pensions and retirement in 
 10.14  accordance with Minnesota Statutes, section 356.215, multiplied 
 10.15  by the accrued liability funding ratio of active members as 
 10.16  derived from the most recent actuarial valuation prepared by the 
 10.17  commission-retained actuary.  The transfer of assets must be 
 10.18  made within 45 days after the employee elects to transfer 
 10.19  coverage to the correctional employees retirement plan. 
 10.20     Subd. 4.  [EFFECT OF THE ASSET TRANSFER.] Upon the transfer 
 10.21  of assets in subdivision 3, service credit in the general state 
 10.22  employees plan of the Minnesota state retirement system or the 
 10.23  teachers retirement association, whichever applies, is forfeited 
 10.24  and may not be reinstated.  The service credit and transferred 
 10.25  assets must be credited to the correctional employees retirement 
 10.26  plan. 
 10.27     Subd. 5.  [COUNSELING.] (a) The commissioners of 
 10.28  corrections, human services, and employee relations, and the 
 10.29  executive directors of the Minnesota state retirement system and 
 10.30  teachers retirement association have the joint responsibility of 
 10.31  providing affected employees of the department of corrections or 
 10.32  the department of human services with appropriate and timely 
 10.33  retirement and related benefit counseling. 
 10.34     (b) Counseling must include the anticipated impact of the 
 10.35  retirement coverage change on the person's future retirement 
 10.36  benefit amounts, future retirement eligibility, future 
 11.1   applicability of mandatory retirement laws, and future 
 11.2   postemployment insurance coverage. 
 11.3      (c) The commissioners of corrections and human services 
 11.4   must consult with the appropriate collective bargaining agents 
 11.5   of the affected employees regarding the content, form, and 
 11.6   timing of the counseling required by this section. 
 11.7      Sec. 13.  [TRANSITIONAL PROVISION; RETENTION OF CERTAIN 
 11.8   RIGHTS.] 
 11.9      (a) Nothing in this act may be considered to restrict the 
 11.10  entitlement of a person under state law to repay a previously 
 11.11  taken refund of employee or member contributions to a Minnesota 
 11.12  public pension plan if all qualifying requirements are met. 
 11.13     (b) The period of correctional employees retirement plan 
 11.14  contributions, plus interest, must be restored upon the 
 11.15  repayment of the appropriate refund amount if the service was 
 11.16  correctional employees retirement plan covered service on the 
 11.17  date when the service was rendered or on the date when the 
 11.18  refund was taken. 
 11.19     Sec. 14.  [EARLY RETIREMENT INCENTIVE.] 
 11.20     This section applies to an employee who has future 
 11.21  retirement coverage transferred to the correctional employee 
 11.22  retirement plan under sections 4, 6, and 7, and who is at least 
 11.23  55 years old on the effective date of sections 4, 6, and 7.  
 11.24  That employee may participate in a health insurance early 
 11.25  retirement incentive available under the terms of a collective 
 11.26  bargaining agreement in effect on the day before the effective 
 11.27  date of sections 4, 6, and 7, notwithstanding any provision of 
 11.28  the collective bargaining agreement that limits participation to 
 11.29  persons who select the option during the payroll period in which 
 11.30  their 55th birthday occurs.  A person selecting the health 
 11.31  insurance early retirement incentive under this section must 
 11.32  retire by the later of September 30, 1996, or within the pay 
 11.33  period following the time at which the person has at least three 
 11.34  years of covered correctional service, including any purchased 
 11.35  service credit.  An employee meeting this criteria who wishes to 
 11.36  extend the person's employment must do so under Minnesota 
 12.1   Statutes, section 43A.34, subdivision 3.  
 12.2      Sec. 15.  [APPROPRIATION.] 
 12.3      $....... is appropriated to the department of human 
 12.4   services and $....... is appropriated to the department of 
 12.5   corrections to fund the additional employer contributions 
 12.6   associated with these changes in the membership of the 
 12.7   correctional employees retirement plan. 
 12.8      Sec. 16.  [REPEALER.] 
 12.9      Minnesota Statutes 1994, section 352.91, subdivision 3, is 
 12.10  repealed.  
 12.11     Sec. 17.  [EFFECTIVE DATE.] 
 12.12     Sections 1 to 16 are effective on the first day of the 
 12.13  first full pay period beginning after June 30, 1996.