HF 1627

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; public employees police and 
  1.3             fire fund; providing for an administrative hearing on 
  1.4             the question of alleged incorrect tax documentation on 
  1.5             a disability benefit; appropriating money. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [PUBLIC EMPLOYEES POLICE AND FIRE FUND; 
  1.8   RESOLUTION OF DISPUTE OVER INCOME TAX DOCUMENTATION FOR A 
  1.9   DISABILITY BENEFIT.] 
  1.10     Subdivision 1.  [QUALIFIED DISABILITANT.] The provisions of 
  1.11  this section apply to a person who: 
  1.12     (1) was born on May 20, 1948; 
  1.13     (2) was employed as a police officer by the city of St. 
  1.14  Cloud from February 4, 1974, to June 30, 1989; 
  1.15     (3) became disabled from service as a police officer; and 
  1.16     (4) is a recipient of a disability benefit from the public 
  1.17  employees police and fire fund. 
  1.18     Subd. 2.  [ADMINISTRATIVE HEARING.] (a) The public 
  1.19  employees retirement association shall conduct an administrative 
  1.20  hearing under Minnesota Statutes, sections 14.57 to 14.62, to 
  1.21  determine whether the public employees police and fire plan 
  1.22  disabilitant referenced in subdivision 1 is entitled to the 
  1.23  payment of damages related to alleged inaccurate federal and 
  1.24  state income tax documentation provided by the public employees 
  1.25  retirement association. 
  2.1      (b) The administrative hearing must make the following 
  2.2   factual determinations:  
  2.3      (1) whether or not the public employees police and fire 
  2.4   plan disability benefit payable to the disabilitant referenced 
  2.5   in subdivision 1 was taxable under the federal Internal Revenue 
  2.6   Code for the tax years in dispute; 
  2.7      (2) whether or not the disabilitant referenced in 
  2.8   subdivision 1 overpaid any federal or state income tax on the 
  2.9   person's disability benefit for the tax years in dispute and the 
  2.10  amount of any overpayment; 
  2.11     (3) whether or not the disabilitant referenced in 
  2.12  subdivision 1 incurred any direct, reasonable, and necessary 
  2.13  accounting or related expenses before May 1, 1996, in attempting 
  2.14  to determine the amount of overpaid federal and state income tax 
  2.15  on the person's disability benefit and in filing any amended tax 
  2.16  returns required to remedy that overpayment; and 
  2.17     (4) whether or not any overpayment of federal or state 
  2.18  income tax on the disability benefit of the disabilitant 
  2.19  referenced in subdivision 1 was primarily or substantially on 
  2.20  account of incorrect or incomplete tax documentation provided to 
  2.21  the disabilitant by the public employees retirement association. 
  2.22     (c) The expense of the administrative hearing must be paid 
  2.23  by the public employees retirement association. 
  2.24     Subd. 3.  [DAMAGES; APPROPRIATION.] (a) If, as a result of 
  2.25  the administrative hearing required under subdivision 2, the 
  2.26  disabilitant referenced in subdivision 1 is determined not to 
  2.27  have a taxable public employee police and fire plan disability 
  2.28  benefit under the federal Internal Revenue Code for the tax 
  2.29  years in dispute, to have overpaid federal and state income 
  2.30  taxes on the disability benefit on account of erroneous, 
  2.31  incorrect, or incomplete tax documentation provided by the 
  2.32  public employees retirement association, and to have incurred 
  2.33  direct, necessary, and reasonable accounting and related 
  2.34  expenses in connection with the tax returns for the tax years in 
  2.35  dispute, the disabilitant is entitled to a reimbursement of any 
  2.36  overpayment of federal and state income taxes on the disability 
  3.1   benefit for tax years in dispute for which filing an amended tax 
  3.2   return is not permitted, a reimbursement of any direct, 
  3.3   reasonable, and necessary accounting and related fees 
  3.4   attributable to identifying tax overpayments on the disability 
  3.5   benefit and filing amended tax returns, and the payment of 
  3.6   interest on those amounts from the date the taxes or expenses 
  3.7   were incurred until the date of payment at an annual compounded 
  3.8   rate of 8.5 percent. 
  3.9      (b) The appropriation under this subdivision may not exceed 
  3.10  $15,000. 
  3.11     (c) Any amounts payable under paragraph (a) are 
  3.12  appropriated from the public employees police and fire fund. 
  3.13     Sec. 2.  [EFFECTIVE DATE.] 
  3.14     Section 1 is effective the day following final enactment.