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HF 1256

as introduced - 87th Legislature (2011 - 2012) Posted on 03/22/2011 09:02am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to retirement; modifying member and employer contribution rates;
amending Minnesota Statutes 2010, sections 3A.03, subdivision 1; 352.04,
subdivisions 2, 3; 352.92, subdivisions 1, 2; 352D.04, subdivision 2; 353.27,
subdivisions 2, 3; 353E.03; 354.42, subdivisions 2, 3; 354A.12, subdivisions
1, 2a; 490.123, subdivisions 1a, 1b.

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

ARTICLE 1

MINNESOTA STATE RETIREMENT SYSTEM

Section 1.

Minnesota Statutes 2010, section 3A.03, subdivision 1, is amended to read:


Subdivision 1.

Percentage.

(a) Every member of the legislature shall contributedeleted text begin .deleted text end new text begin :new text end

new text begin (1) before the first day of the first pay period
beginning on or after July 1, 2011
new text end
nine percent of total salarynew text begin ; and
new text end
new text begin (2) on or after the first day of the first pay
period beginning after June 30, 2011
new text end
new text begin 12 percent of total salary.
new text end

(b) The contribution must be made by payroll deduction and must be paid into the
state treasury and deposited in the general fund.

(c) The director must record the periodic contributions of each member of the
legislature and must credit each contribution to the member's account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 352.04, subdivision 2, is amended to read:


Subd. 2.

Employee contributions.

(a) The employee contribution to the fund must
be equal to the following percent of salary:

deleted text begin before July 1, 2007
deleted text end
deleted text begin 4.00
deleted text end
deleted text begin from July 1, 2007, to June 30, 2008
deleted text end
deleted text begin 4.25
deleted text end
deleted text begin from July 1, 2008, to June 30, 2009
deleted text end
deleted text begin 4.50
deleted text end
deleted text begin from July 1, 2009, to June 30, 2010
deleted text end
deleted text begin 4.75
deleted text end
deleted text begin from July 1, 2010, and thereafter deleted text end new text begin before the first
day of the first pay period beginning on or after
July 1, 2011
new text end
5.00deleted text begin .
deleted text end
new text begin on or after the first day of the first pay period
beginning after June 30, 2011
new text end
new text begin 8.00.
new text end

(b) These contributions must be made by deduction from salary as provided in
subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 352.04, subdivision 3, is amended to read:


Subd. 3.

Employer contributions.

The employer contribution to the fund must be
equal to the following percent of salary:

deleted text begin before July 1, 2007
deleted text end
deleted text begin 4.00
deleted text end
deleted text begin from July 1, 2007, to June 30, 2008
deleted text end
deleted text begin 4.25
deleted text end
deleted text begin from July 1, 2008, to June 30, 2009
deleted text end
deleted text begin 4.50
deleted text end
deleted text begin from July 1, 2009, to June 30, 2010
deleted text end
deleted text begin 4.75
deleted text end
deleted text begin from July 1, 2010, and thereafter deleted text end new text begin before the first
day of the first pay period beginning on or after
July 1, 2011
new text end
5.00deleted text begin .
deleted text end
new text begin on or after the first day of the first pay period
after June 30, 2011
new text end
new text begin 2.00.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 352.92, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

(a) Employee contributions of covered
correctional employees must be in an amount equal to the following percent of salary:

deleted text begin before July 1, 2007
deleted text end
deleted text begin 5.69
deleted text end
deleted text begin from July 1, 2007, to June 30, 2008
deleted text end
deleted text begin 6.40
deleted text end
deleted text begin from July 1, 2008, to June 30, 2009
deleted text end
deleted text begin 7.00
deleted text end
deleted text begin from July 1, 2009, to June 30, 2010
deleted text end
deleted text begin 7.70
deleted text end
deleted text begin from July 1, 2010, and thereafter deleted text end new text begin before the first
day of the first pay period beginning on or after
July 1, 2011
new text end
8.60deleted text begin .
deleted text end
new text begin on or after the first day of the first pay period
after June 30, 2011
new text end
new text begin 11.60.
new text end

(b) These contributions must be made by deduction from salary as provided in
section 352.04, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 5.

Minnesota Statutes 2010, section 352.92, subdivision 2, is amended to read:


Subd. 2.

Employer contributions.

The employer shall contribute for covered
correctional employees an amount equal to the following percent of salary:

deleted text begin before July 1, 2007
deleted text end
deleted text begin 7.98
deleted text end
deleted text begin from July 1, 2007, to June 30, 2008
deleted text end
deleted text begin 9.10
deleted text end
deleted text begin from July 1, 2008, to June 30, 2009
deleted text end
deleted text begin 10.10
deleted text end
deleted text begin from July 1, 2009, to June 30, 2010
deleted text end
deleted text begin 11.10
deleted text end
from July 1, 2010, deleted text begin and thereafterdeleted text end new text begin to the last day
of the last payroll period before July 1, 2011
new text end
12.10deleted text begin .
deleted text end
new text begin on or after the first day of the first pay period
after June 30, 2011
new text end
new text begin 9.10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, 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 2, or 352.045, subdivision 3.

(c) The employer contribution is an amount equal to six percent of salarynew text begin before the
first day of the first pay period beginning on or after July 1, 2011, and three percent of
salary on or after the first day of the first pay period beginning after June 30, 2011
new text end .

(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 (16), 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 7.

Minnesota Statutes 2010, section 490.123, subdivision 1a, is amended to read:


Subd. 1a.

Member contribution rates.

(a) A judge who is covered by the federal
Old Age, Survivors, Disability, and Health Insurance Program and whose service does not
exceed the service credit limit in section 490.121, subdivision 22, shall contribute to the
fund from each salary payment a sum equal to 8.00 percent of salarynew text begin before the first day of
the first pay period beginning on or after July 1, 2011, and 11 percent of salary on or after
the first day of the first pay period beginning after June 30, 2011
new text end .

(b) The contribution under this subdivision is payable by salary deduction.
The deduction must be made by the state court administrator under section 352.04,
subdivisions 4, 5, and 8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 8.

Minnesota Statutes 2010, section 490.123, subdivision 1b, is amended to read:


Subd. 1b.

Employer contribution rate.

(a) The employer contribution rate to
the fund on behalf of a judge is 20.5 percent of salarynew text begin before the first day of the first
pay period beginning on or after July 1, 2011, and 17.5 percent of salary on or after the
first day of the first pay period beginning after June 30, 2011
new text end . The employer obligation
continues after a judge exceeds the service credit limit in section 490.121, subdivision 22.

(b) The employer contribution must be paid by the state court administrator. The
employer contribution is payable at the same time as member contributions are made
under subdivision 1a or as employee contributions are made to the unclassified program
governed by chapter 352D for judges whose service exceeds the limit in section 490.121,
subdivision 22, are remitted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 2

OTHER RETIREMENT PLANS

Section 1.

Minnesota Statutes 2010, section 353.27, subdivision 2, is amended to read:


Subd. 2.

General employees retirement plan; employee contribution.

(a) For
a basic member of the general employees retirement plan of the Public Employees
Retirement Association, the employee contribution is 9.10 percent of salarynew text begin before the
first day of the first pay period beginning on or after July 1, 2011, and 12.10 percent
of salary after the first day of the first pay period beginning after June 30, 2011
new text end . For a
coordinated member of the general employees retirement plan of the Public Employees
Retirement Association, the employee contribution is the following percentage of salary
plus any contribution rate adjustment under subdivision 3b:

Effective before January 1, 2011
6.00
Effective after December 31, 2010
6.25
new text begin Effective on the first day of the first pay period
beginning on or after July 1, 2011
new text end
new text begin 9.25
new text end

(b) These contributions must be made by deduction from salary as defined in section
353.01, subdivision 10, in the manner provided in subdivision 4. If any portion of a
member's salary is paid from other than public funds, the member's employee contribution
must be based on the total salary received by the member from all sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 353.27, subdivision 3, is amended to read:


Subd. 3.

General employees retirement plan; employer contribution.

(a) For
a basic member of the general employees retirement plan of the Public Employees
Retirement Association, the employer contribution is 9.10 percent of salarynew text begin before the first
day of the first pay period beginning on or after July 1, 2011, and 6.1 percent of salary
after the first day of the first pay period beginning after June 30, 2011
new text end . For a coordinated
member of the general employees retirement plan of the Public Employees Retirement
Association, the employer contribution is the following percentage of salary plus any
contribution rate adjustment under subdivision 3b:

Effective before January 1, 2011
6.00
Effective after December 31, 2010
6.25
new text begin Effective on the first day of the first pay period
beginning on or after July 1, 2011
new text end
new text begin 3.25
new text end

(b) This contribution must be made from funds available to the employing
subdivision by the means and in the manner provided in section 353.28.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 353E.03, is amended to read:


353E.03 CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.

Subdivision 1.

Member contributions.

A member of the local government
correctional service retirement plan shall make an employee contribution in an amount
equal to 5.83 percent of salarynew text begin until the last day of the last pay period occurring before
July 1, 2011, and is 8.83 percent of salary effective on the first day of the first pay period
beginning on or after July 1, 2011
new text end .

Subd. 2.

Employer contributions.

The employer shall contribute for a member
of the local government correctional service retirement plan an amount equal to 8.75
percent of salarynew text begin until the last day of the last pay period occurring before July 1, 2011,
and is 5.75 percent of salary effective on the first day of the first pay period beginning
on or after July 1, 2011
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 354.42, subdivision 2, is amended to read:


Subd. 2.

Employee contribution.

(a) For a basic member, the employee
contribution to the fund is the following percentage of the member's salary:

before July 1, 2011
9.0 percent
from July 1, 2011, until June 30, 2012
deleted text begin 9.5deleted text end new text begin 12.5new text end percent
from July 1, 2012, until June 30, 2013
deleted text begin 10.0deleted text end new text begin 13.0new text end percent
from July 1, 2013, until June 30, 2014
deleted text begin 10.5deleted text end new text begin 13.5new text end percent
after June 30, 2014
deleted text begin 11.0deleted text end new text begin 14.0new text end percent

(b) For a coordinated member, the employee contribution is the following percentage
of the member's salary:

before July 1, 2011
5.5 percent
from July 1, 2011, until June 30, 2012
deleted text begin 6.0deleted text end new text begin 9.0new text end percent
from July 1, 2012, until June 30, 2013
deleted text begin 6.5deleted text end new text begin 9.5new text end percent
from July 1, 2013, until June 30, 2014
deleted text begin 7.0deleted text end new text begin 10.0new text end percent
after June 30, 2014
deleted text begin 7.5deleted text end new text begin 10.5new text end percent

(c) 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.

(d) 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.

(e) 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 5.

Minnesota Statutes 2010, 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 following percentage
of salary of each basic member:

Period
Coordinated Member
Basic Member
before July 1, 2011
5.5 percent
9.5 percent
from July 1, 2011, until June 30, 2012
deleted text begin 6.0deleted text end new text begin 3.0new text end percent
deleted text begin 10.0deleted text end new text begin 7.0new text end percent
from July 1, 2012, until June 30, 2013
deleted text begin 6.5deleted text end new text begin 3.5new text end percent
deleted text begin 10.5deleted text end new text begin 7.5new text end percent
from July 1, 2013, until June 30, 2014
deleted text begin 7.0deleted text end new text begin 4.0new text end percent
deleted text begin 11.0deleted text end new text begin 8.0new text end percent
after June 30, 2014
deleted text begin 7.5deleted text end new text begin 4.5new text end percent
deleted text begin 11.5deleted text end new text begin 8.5new text end percent

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 is a basic member.

(b) 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
before July 1, 2011
5.5 percent
9.5 percent
from July 1, 2011, until June 30, 2012
deleted text begin 6.0deleted text end new text begin 3.0new text end percent
deleted text begin 10.0deleted text end new text begin 7.0new text end percent
from July 1, 2012, until June 30, 2013
deleted text begin 6.5deleted text end new text begin 3.5new text end percent
deleted text begin 10.5deleted text end new text begin 7.5new text end percent
from July 1, 2013, until June 30, 2014
deleted text begin 7.0deleted text end new text begin 4.0new text end percent
deleted text begin 11.0deleted text end new text begin 8.0new text end percent
after June 30, 2014
deleted text begin 7.5deleted text end new text begin 4.5new text end percent
deleted text begin 11.5deleted text end new text begin 8.5new text end percent

(c) 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.

(d) After June 30, 2015, if a contribution rate revision is made under subdivisions
4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted
accordingly.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, section 354A.12, subdivision 1, is amended to read:


Subdivision 1.

Employee contributions.

(a) The contribution required to be paid
by each member of a teachers retirement fund association is the percentage of total salary
specified below for the applicable association and program:

Association and Program
Percentage of Total Salary
Duluth Teachers Retirement Fund Association
old law and new law
coordinated programs
before July 1, 2011
5.5 percent
effective July 1, 2011
deleted text begin 6.0deleted text end new text begin 9.0new text end percent
effective July 1, 2012
deleted text begin 6.5deleted text end new text begin 9.5new text end percent
St. Paul Teachers Retirement Fund Association
basic program before July 1, 2011
deleted text begin 8deleted text end new text begin 8.0new text end percent
basic program after June 30, 2011
deleted text begin 8.25deleted text end new text begin 11.25new text end percent
basic program after June 30, 2012
deleted text begin 8.5deleted text end new text begin 11.5new text end percent
basic program after June 30, 2013
deleted text begin 8.75deleted text end new text begin 11.75new text end percent
basic program after June 30, 2014
deleted text begin 9.0deleted text end new text begin 12.0new text end percent
coordinated program before July 1, 2011
5.5 percent
coordinated program after June 30, 2011
deleted text begin 5.75deleted text end new text begin 8.75new text end percent
coordinated program after June 30, 2012
deleted text begin 6.0deleted text end new text begin 9.0new text end percent
coordinated program after June 30, 2013
deleted text begin 6.25deleted text end new text begin 9.25new text end percent
coordinated program after June 30, 2014
deleted text begin 6.50deleted text end new text begin 9.5new text end percent

(b) Contributions shall be made by deduction from salary and must be remitted
directly to the respective teachers retirement fund association at least once each month.

(c) When an employee contribution rate changes for a fiscal year, the new
contribution rate is effective for the entire salary paid by the employer with the first
payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 7.

Minnesota Statutes 2010, section 354A.12, subdivision 2a, is amended to read:


Subd. 2a.

Employer regular and additional contributions.

(a) The employing
units shall make the following employer contributions to teachers retirement fund
associations:

(1) for any coordinated member of one of the following teachers retirement fund
associations in a city of the first class, the employing unit shall make a regular employer
contribution to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided below:

Duluth Teachers Retirement Fund Association
before July 1, 2011
5.79 percent
effective July 1, 2011
deleted text begin 6.29deleted text end new text begin 3.29new text end percent
effective July 1, 2012
deleted text begin 6.79deleted text end new text begin 3.79new text end percent
St. Paul Teachers Retirement Fund Association
before July 1, 2011
4.50 percent
after June 30, 2011
deleted text begin 4.75deleted text end new text begin 1.75new text end percent
after June 30, 2012
deleted text begin 5.0deleted text end new text begin 2.0new text end percent
after June 30, 2013
deleted text begin 5.25deleted text end new text begin 2.25new text end percent
after June 30, 2014
deleted text begin 5.5deleted text end new text begin 2.5new text end percent

(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount according to the schedule below:

before July 1, 2011
8.0 percent of salary
after June 30, 2011
deleted text begin 8.25deleted text end new text begin 5.25new text end percent of salary
after June 30, 2012
deleted text begin 8.5deleted text end new text begin 5.5new text end percent of salary
after June 30, 2013
deleted text begin 8.75deleted text end new text begin 5.75new text end percent of salary
after June 30, 2014
deleted text begin 9.0deleted text end new text begin 6.0new text end percent of salary

(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;

(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit shall make an additional employer contribution to the respective fund
in an amount equal to the applicable percentage of the coordinated member's salary,
as provided below:

St. Paul Teachers Retirement Fund Association
3.84 percent

(b) The regular and additional employer contributions must be remitted directly to
the respective teachers retirement fund association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.

(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.

(d) When an employer contribution rate changes for a fiscal year, the new
contribution rate is effective for the entire salary paid by the employer with the first
payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end