HF 1474

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying retirement plan 
  1.3             provisions governing Minnesota state colleges and 
  1.4             universities employees; amending Minnesota Statutes 
  1.5             2002, sections 354.05, subdivisions 2, 35; 354.07, 
  1.6             subdivision 9; 354.091; 354.51, by adding a 
  1.7             subdivision; 354.52, by adding a subdivision; 354B.20, 
  1.8             subdivisions 4, 6; 354B.23, subdivision 1; 354B.32; 
  1.9             354C.11, subdivision 2. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 354.05, 
  1.12  subdivision 2, is amended to read: 
  1.13     Subd. 2.  [TEACHER.] (a) "Teacher" means: 
  1.14     (1) a person who renders service as a teacher, supervisor, 
  1.15  principal, superintendent, librarian, nurse, counselor, social 
  1.16  worker, therapist, or psychologist in a public school of the 
  1.17  state located outside of the corporate limits of a city of the 
  1.18  first class, or in any charter school, irrespective of the 
  1.19  location of the school, or in any charitable, penal, or 
  1.20  correctional institutions of a governmental subdivision, or who 
  1.21  is engaged in educational administration in connection with the 
  1.22  state public school system, but excluding the University of 
  1.23  Minnesota, whether the position be a public office or an 
  1.24  employment, not including members or officers of any general 
  1.25  governing or managing board or body; 
  1.26     (2) an employee of the teachers retirement association; 
  1.27     (3) a person who renders teaching service on a part-time 
  2.1   basis and who also renders other services for a single employing 
  2.2   unit.  A person whose teaching service comprises at least 50 
  2.3   percent of the combined employment salary is a member of the 
  2.4   association for all services with the single employing unit.  If 
  2.5   the person's teaching service comprises less than 50 percent of 
  2.6   the combined employment salary, the executive director must 
  2.7   determine whether all or none of the combined service is covered 
  2.8   by the association; or 
  2.9      (4) a person who is not covered by the plans established 
  2.10  under chapter 352D, 354A, or 354B and who is employed by the 
  2.11  board of trustees of the Minnesota state colleges and 
  2.12  universities system in an unclassified position as: 
  2.13     (i) a president, vice-president, or dean; 
  2.14     (ii) a manager or a professional in an academic or an 
  2.15  academic support program other than specified in item (i); 
  2.16     (iii) an administrative or a service support faculty 
  2.17  position; or 
  2.18     (iv) a teacher or a research assistant. 
  2.19     (b) "Teacher" does not mean: 
  2.20     (1) a person who works for a school or institution as an 
  2.21  independent contractor as defined by the Internal Revenue 
  2.22  Service; 
  2.23     (2) a person employed in subsidized on-the-job training, 
  2.24  work experience or public service employment as an enrollee 
  2.25  under the federal Comprehensive Employment and Training Act from 
  2.26  and after March 30, 1978, unless the person has, as of the later 
  2.27  of March 30, 1978, or the date of employment, sufficient service 
  2.28  credit in the retirement association to meet the minimum vesting 
  2.29  requirements for a deferred retirement annuity, or the employer 
  2.30  agrees in writing on forms prescribed by the executive director 
  2.31  to make the required employer contributions, including any 
  2.32  employer additional contributions, on account of that person 
  2.33  from revenue sources other than funds provided under the federal 
  2.34  Comprehensive Training and Employment Act, or the person agrees 
  2.35  in writing on forms prescribed by the executive director to make 
  2.36  the required employer contribution in addition to the required 
  3.1   employee contribution; 
  3.2      (3) a person holding a part-time adult supplementary 
  3.3   technical college license who renders part-time teaching service 
  3.4   or a customized trainer as defined by the Minnesota state 
  3.5   colleges and universities system in a technical college if (i) 
  3.6   the service is incidental to the regular nonteaching occupation 
  3.7   of the person; and (ii) the applicable technical college 
  3.8   employer stipulates annually in advance that the part-time 
  3.9   teaching service or customized training service will not exceed 
  3.10  300 hours in a fiscal year and retains the stipulation in its 
  3.11  records; and (iii) the part-time teaching service or customized 
  3.12  training service actually does not exceed 300 hours in a fiscal 
  3.13  year; or 
  3.14     (4) a person exempt from licensure under section 122A.30. 
  3.15     Sec. 2.  Minnesota Statutes 2002, section 354.05, 
  3.16  subdivision 35, is amended to read: 
  3.17     Subd. 35.  [SALARY.] (a) "Salary" means the periodic 
  3.18  compensation, upon which member contributions are required 
  3.19  before deductions for deferred compensation, supplemental 
  3.20  retirement plans, or other voluntary salary reduction programs. 
  3.21     (b) "Salary" does not mean: 
  3.22     (1) lump sum annual leave payments; 
  3.23     (2) lump sum wellness and sick leave payments; 
  3.24     (3) employer-paid amounts used by an employee toward the 
  3.25  cost of insurance coverage, employer-paid fringe benefits, 
  3.26  flexible spending accounts, cafeteria plans, health care expense 
  3.27  accounts, day care expenses, or any payments in lieu of any 
  3.28  employer-paid group insurance coverage, including the difference 
  3.29  between single and family rates that may be paid to a member 
  3.30  with single coverage and certain amounts determined by the 
  3.31  executive director to be ineligible; 
  3.32     (4) any form of payment made in lieu of any other 
  3.33  employer-paid fringe benefit or expense; 
  3.34     (5) any form of severance payments; 
  3.35     (6) workers' compensation payments; 
  3.36     (7) disability insurance payments including self-insured 
  4.1   disability payments; 
  4.2      (8) payments to school principals and all other 
  4.3   administrators for services in addition to the normal work year 
  4.4   contract if these additional services are performed on an 
  4.5   extended duty day, Saturday, Sunday, holiday, annual leave day, 
  4.6   sick leave day, or any other nonduty day; 
  4.7      (9) payments under section 356.24, subdivision 1, clause 
  4.8   (4); and 
  4.9      (10) payments made under section 122A.40, subdivision 12, 
  4.10  except for payments for sick leave accumulated under the 
  4.11  provisions of a uniform school district policy that applies 
  4.12  equally to all similarly situated persons in the district; and 
  4.13     (11) payments to persons employed in the Minnesota state 
  4.14  colleges and universities system in a faculty position or in an 
  4.15  eligible unclassified administrative position if the person's 
  4.16  initial appointment is specified as constituting less than 25 
  4.17  percent of a full academic year, exclusive of summer session, 
  4.18  for the applicable institution. 
  4.19     Sec. 3.  Minnesota Statutes 2002, section 354.07, 
  4.20  subdivision 9, is amended to read: 
  4.21     Subd. 9.  All school districts, the Minnesota state 
  4.22  colleges and universities, community colleges and other 
  4.23  employers of members of the association are obligated to 
  4.24  distribute to their employees ballots for the election of 
  4.25  members to the board of trustees, pamphlets, brochures, 
  4.26  documents or any other material containing association 
  4.27  information which are prepared by the executive director or the 
  4.28  board and are delivered to the employers for distribution. 
  4.29     Sec. 4.  Minnesota Statutes 2002, section 354.091, is 
  4.30  amended to read: 
  4.31     354.091 [SERVICE CREDIT.] 
  4.32     (a) In computing service credit, no teacher shall receive 
  4.33  credit for more than one year of teaching service for any fiscal 
  4.34  year.  Commencing July 1, 1961: 
  4.35     (1) if a teacher teaches less than five hours in a day, 
  4.36  service credit must be given for the fractional part of the day 
  5.1   as the term of service performed bears to five hours; 
  5.2      (2) if a teacher teaches five or more hours in a day, 
  5.3   service credit must be given for only one day; 
  5.4      (3) if a teacher teaches at least 170 full days in any 
  5.5   fiscal year, service credit must be given for a full year of 
  5.6   teaching service; and 
  5.7      (4) if a teacher teaches for only a fractional part of the 
  5.8   year, service credit must be given for such fractional part of 
  5.9   the year as the period of service performed bears to 170 days. 
  5.10     (b) A teacher shall receive a full year of service credit 
  5.11  based on the number of days in the employer's full school year 
  5.12  if it is less than 170 days.  Teaching service performed before 
  5.13  July 1, 1961, must be computed under the law in effect at the 
  5.14  time it was performed. 
  5.15     (c) A teacher does not lose or gain retirement service 
  5.16  credit as a result of the employer converting to a flexible or 
  5.17  alternate work schedule.  If the employer converts to a flexible 
  5.18  or alternate work schedule, the forms for reporting and the 
  5.19  procedures for determining service credit must be determined by 
  5.20  the executive director with the approval of the board of 
  5.21  trustees.  
  5.22     (d) For all services rendered on or after July 1, 2002, 
  5.23  service credit for all members employed by the Minnesota state 
  5.24  colleges and universities system shall be determined: 
  5.25     (1) for full-time employees, by the definition of full time 
  5.26  contained in the collective bargaining agreement for those units 
  5.27  listed in section 179A.10, subdivision 2, or the applicable 
  5.28  personnel or salary plan for those positions designated in 
  5.29  section 179A.10, subdivision 1; 
  5.30     (2) for part-time employees, by the appropriate proration 
  5.31  of full-time equivalency based on the provisions contained in 
  5.32  the collective bargaining agreement for those units listed in 
  5.33  section 179A.10, subdivision 2, or the applicable personnel or 
  5.34  salary plan for those positions designated in section 179A.10, 
  5.35  subdivision 1, and applicable procedures of the Minnesota state 
  5.36  colleges and universities system; and 
  6.1      (3) in no case shall a member receive more than one year of 
  6.2   service credit for any fiscal year. 
  6.3      Sec. 5.  Minnesota Statutes 2002, section 354.51, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 6.  [MEMBER CONTRIBUTIONS.] Members currently 
  6.6   employed in the Minnesota state colleges and universities system 
  6.7   who had previous salary meeting the terms of section 354.05, 
  6.8   subdivision 35, paragraph (b), clause (11), may elect to make 
  6.9   member contributions for this salary to receive associated 
  6.10  service credit as follows: 
  6.11     (1) the election to make member contributions must be in 
  6.12  writing on a form provided by the executive director; 
  6.13     (2) the election must be made within 60 days of the start 
  6.14  of the member's covered employment; 
  6.15     (3) the member shall have a time period of one year from 
  6.16  the date of the election to pay into the fund the normal 
  6.17  employee contributions in effect at the time on all salary 
  6.18  earned from initial appointment until the start of covered 
  6.19  employment plus interest at an annual rate of 8.5 percent 
  6.20  compounded annually to the end of the month in which payment is 
  6.21  made and the interest shall be credited to the fund; and 
  6.22     (4) the employing unit shall pay, within 60 days of payment 
  6.23  notification, the normal employer contributions in effect at the 
  6.24  time on all salary earned by the member from initial appointment 
  6.25  until the start of covered employment plus interest at an annual 
  6.26  rate of 8.5 percent compounded annually to the end of the month 
  6.27  in which payment is made and the interest shall be credited to 
  6.28  the fund. 
  6.29     Sec. 6.  Minnesota Statutes 2002, section 354.52, is 
  6.30  amended by adding a subdivision to read: 
  6.31     Subd. 4c.  [MNSCU SERVICE CREDIT REPORTING.] For all 
  6.32  part-time service rendered on or after July 1, 2002, the service 
  6.33  credit reporting requirement in subdivision 4b for all part-time 
  6.34  employees of the Minnesota state colleges and universities 
  6.35  system shall be met by the Minnesota state colleges and 
  6.36  universities system reporting to the association on or before 
  7.1   July 31 of each year the final calculation of each part-time 
  7.2   member's service credit for the immediately preceding fiscal 
  7.3   year based on the employee's assignments for the fiscal year. 
  7.4      Sec. 7.  Minnesota Statutes 2002, section 354B.20, 
  7.5   subdivision 4, is amended to read: 
  7.6      Subd. 4.  [COVERED EMPLOYMENT.] (a) "Covered employment" 
  7.7   means employment by a person eligible for coverage by this 
  7.8   retirement program under section 354B.21 in a faculty position 
  7.9   or in an eligible unclassified administrative position. 
  7.10     (b) "Covered employment" does not mean employment specified 
  7.11  in paragraph (a) by a faculty member employed in a state 
  7.12  university or a community college the Minnesota state colleges 
  7.13  and universities system if the person's initial appointment is 
  7.14  specified as constituting less than 25 percent of a full 
  7.15  academic year, exclusive of summer session, for the applicable 
  7.16  institution. 
  7.17     Sec. 8.  Minnesota Statutes 2002, section 354B.20, 
  7.18  subdivision 6, is amended to read: 
  7.19     Subd. 6.  [ELIGIBLE UNCLASSIFIED ADMINISTRATIVE POSITION.] 
  7.20  "Eligible unclassified administrative position" means the 
  7.21  following: 
  7.22     (1) the chancellor of the board; 
  7.23     (2) a president of a state college or university; or 
  7.24     (3) an excluded administrator employed in a state 
  7.25  university or college, by the board, or by the higher education 
  7.26  services office; or 
  7.27     (4) other managers and professionals in academic and 
  7.28  academic support programs in the unclassified service employed 
  7.29  in a state university or college, by the board, or by the higher 
  7.30  education services office. 
  7.31     Sec. 9.  Minnesota Statutes 2002, section 354B.23, 
  7.32  subdivision 1, is amended to read: 
  7.33     Subdivision 1.  [MEMBER CONTRIBUTION RATE.] (a) Except as 
  7.34  provided in paragraph (b), The member contribution rate for 
  7.35  participants in the individual retirement account plan is 4.5 
  7.36  percent of salary. 
  8.1      (b) For participants in the individual retirement account 
  8.2   plan who were otherwise eligible to elect retirement coverage in 
  8.3   the state unclassified employees retirement program, the member 
  8.4   contribution rate is the rate specified in section 352D.04, 
  8.5   subdivision 2, paragraph (a). 
  8.6      Sec. 10.  Minnesota Statutes 2002, section 354B.32, is 
  8.7   amended to read: 
  8.8      354B.32 [TRANSFER OF FUNDS TO IRAP.] 
  8.9      A participant in the individual retirement account plan 
  8.10  established in this chapter who has less than ten years of 
  8.11  allowable service under the teachers retirement association or 
  8.12  the teachers retirement fund association may elect to transfer 
  8.13  an amount equal to the participant's accumulated member 
  8.14  contributions to the teachers retirement association or the 
  8.15  teachers retirement fund association, plus compound interest at 
  8.16  the rate of six percent per annum, to the individual retirement 
  8.17  account plan.  The transfers are irrevocable fund to fund 
  8.18  transfers, and in no event may the participant receive direct 
  8.19  payment of the money transferred prior to retirement termination 
  8.20  of employment.  If a participant elects the contribution 
  8.21  transfer, all of the participant's allowable and formula service 
  8.22  credit in the teachers retirement association or the teachers 
  8.23  retirement fund association associated with the transferred 
  8.24  amount is forfeited. 
  8.25     The executive director of the teachers retirement 
  8.26  association and the chief administrative officers of the 
  8.27  teachers retirement fund associations, in cooperation with the 
  8.28  chancellor of the Minnesota state colleges and universities 
  8.29  system, shall notify participants who are eligible to transfer 
  8.30  of their right to transfer and the amount that they are eligible 
  8.31  to transfer, and shall, upon request, provide forms to implement 
  8.32  the transfer.  The chancellor of the Minnesota state colleges 
  8.33  and universities system shall assist the teachers retirement 
  8.34  association and the teachers retirement fund associations in 
  8.35  developing transfer forms and in implementing the transfers.  
  8.36     Authority to elect a transfer under this section expires on 
  9.1   July 1, 2004. 
  9.2      Sec. 11.  Minnesota Statutes 2002, section 354C.11, 
  9.3   subdivision 2, is amended to read: 
  9.4      Subd. 2.  [ELIGIBILITY.] (a) An individual must participate 
  9.5   in the supplemental retirement plan if the individual is 
  9.6   employed by the board of trustees in the unclassified service of 
  9.7   the state and has completed at least two years with a full-time 
  9.8   contract of applicable unclassified employment with the board or 
  9.9   an applicable predecessor board in any of the positions 
  9.10  specified in paragraph (b). 
  9.11     (b) Eligible positions or employment classifications are: 
  9.12     (1) an unclassified administrative position as defined in 
  9.13  section 354B.20, subdivision 6; 
  9.14     (2) an employment classification included in one of the 
  9.15  following collective bargaining units under section 179A.10, 
  9.16  subdivision 2: 
  9.17     (i) the state university instructional unit; 
  9.18     (ii) the state college instructional unit; and 
  9.19     (iii) the state university administrative unit; or 
  9.20     (3) an unclassified employee of the board: 
  9.21     (i) included in the general professional unit or 
  9.22  supervisory employees unit under section 179A.10, subdivision 2; 
  9.23  or 
  9.24     (ii) excluded from those units due to its confidential 
  9.25  status under section 179A.10, subdivision 1, clause (8).  
  9.26     Sec. 12.  [EFFECTIVE DATE.] 
  9.27     Sections 1 to 11 are effective July 1, 2003.