HF 2112

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; judges' retirement plan;
clarifying and revising various plan provisions;
eliminating obsolete provisions; amending Minnesota
Statutes 2004, sections 490.025, subdivision 5;
490.121, subdivisions 1, 4, 6, 7, 13, 14, 15, 21, 22,
by adding subdivisions; 490.122; 490.123, subdivisions
1, 1a, 1b, 1c, 2, 3; 490.124, subdivisions 1, 2, 3, 4,
5, 6, 8, 9, 10, 11, 12, 13; 490.125, subdivision 1;
490.126; 490.132; 490.133; proposing coding for new
law as Minnesota Statutes, chapter 490A; repealing
Minnesota Statutes 2004, sections 490.021; 490.025,
subdivisions 1, 2, 3, 4, 6; 490.101; 490.102; 490.103;
490.105; 490.106; 490.107; 490.108; 490.109; 490.1091;
490.12; 490.121, subdivisions 2, 3, 5, 8, 9, 10, 11,
12, 16, 17, 18, 19, 20; 490.15; 490.16; 490.18.

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

Section 1.

Minnesota Statutes 2004, section 490.025,
subdivision 5, is amended to read:

Subd. 5.

new text begin service of a retired justice; new text end commissioner.

Upon new text begin the new text end retirement of a justice of the Supreme Court, the court
may appoint the justice new text begin as new text end a commissioner of that court to aid
and assist in the performance of deleted text begin such deleted text end new text begin that portion new text end of its duties
as may be assigned with the new text begin retired new text end justice's consent.

Sec. 2.

Minnesota Statutes 2004, section 490.121,
subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections 490.121
to 490.132, new text begin unless the context clearly indicates otherwise, each
of the new text end terms defined in this section deleted text begin have deleted text end new text begin has new text end the deleted text begin meanings
deleted text end new text begin meaning new text end given deleted text begin them unless the context clearly indicates
otherwise deleted text end new text begin it new text end .

Sec. 3.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Actuarial equivalent. new text end

new text begin "Actuarial equivalent"
means the condition of one annuity or benefit having an equal
actuarial present value as another annuity or benefit,
determined as of a given date with each actuarial present value
based on the appropriate mortality table adopted by the board of
trustees based on the experience of the fund as recommended by
the actuary retained under section 356.214 and using the
applicable preretirement or postretirement interest rate
assumption specified in section 356.215, subdivision 8.
new text end

Sec. 4.

Minnesota Statutes 2004, section 490.121,
subdivision 4, is amended to read:

Subd. 4.

Allowable service.

new text begin (a) new text end "Allowable service"
means any calendar month, subject to the service credit limit in
subdivision 22, served as a judge at any time, deleted text begin or deleted text end new text begin during which
the judge received compensation for that service from the state,
municipality, or county, whichever applies, and for which the
judge made any required member contribution. It also includes
any month new text end served as a referee in probate for all referees in
probate who were in office deleted text begin prior to deleted text end new text begin before new text end January 1, 1974.

new text begin (b) "Allowable service" does not mean service as a retired
judge.
new text end

Sec. 5.

Minnesota Statutes 2004, section 490.121,
subdivision 6, is amended to read:

Subd. 6.

Annuity.

"Annuity" means the payments new text begin that are
new text end made each year to an annuitant from the judges' retirement fund deleted text begin ,
pursuant to the provisions of deleted text end new text begin under new text end sections 490.121 to 490.132.

Sec. 6.

Minnesota Statutes 2004, section 490.121,
subdivision 7, is amended to read:

Subd. 7.

Annuitant.

"Annuitant" means a new text begin former new text end judge, new text begin a
new text end surviving spouse new text begin , new text end or new text begin a new text end dependent child new text begin who is new text end entitled to new text begin and is
receiving new text end an annuity under deleted text begin the provisions of deleted text end sections 490.121 to
490.132.

Sec. 7.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Approved actuary. new text end

new text begin "Approved actuary" means an
actuary who either is a fellow of the society of actuaries or
has at least 15 years of service to major public employee funds
or a firm retaining an actuary with those credentials on its
staff.
new text end

Sec. 8.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Court. new text end

new text begin "Court" means any court of this state
that is established by the Minnesota Constitution and any
municipal, county, or probate court of record. The term also
includes the Conciliation Court of the city of Duluth.
new text end

Sec. 9.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 7c. new text end

new text begin Dependent surviving child. new text end

new text begin "Dependent
surviving child" means any natural or adopted child of a
deceased judge who has not reached the age of 18 years, or
having reached the age of 18, is under age 22 and who is a
full-time student throughout the normal school year, is
unmarried, and is actually dependent for more than one-half of
the child's support upon the judge for a period of at least 90
days before the judge's death. It also includes any natural
child of the judge who was born after the death of the judge.
new text end

Sec. 10.

Minnesota Statutes 2004, section 490.121,
subdivision 13, is amended to read:

Subd. 13.

Disability.

"Disability" means new text begin the new text end permanent
inability new text begin of a judge to continue new text end to perform the functions of
judge by reason of new text begin a medically determinable new text end physical or mental
impairment resulting from new text begin a new text end sickness or new text begin an new text end injury.

Sec. 11.

Minnesota Statutes 2004, section 490.121,
subdivision 14, is amended to read:

Subd. 14.

Disability retirement date.

"Disability
retirement date" means the last day of the first month after new text begin the
date on new text end which the governor determines, upon new text begin receipt of the
new text end voluntary application by the judge or otherwise, that a judge
suffers from a disability new text begin and certifies that determination to
the judge, to the chief justice of the Supreme Court, to the
state court administrator, and to the executive director of the
Minnesota State Retirement System new text end .

Sec. 12.

Minnesota Statutes 2004, section 490.121,
subdivision 15, is amended to read:

Subd. 15.

Disability retirement annuity.

"Disability
retirement annuity" means an annuity to which a judge is
entitled under section 490.124, subdivisions 1 and 4 new text begin , new text end after new text begin the
new text end retirement deleted text begin for reason deleted text end of new text begin the judge because of a new text end disability.

Sec. 13.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 15a. new text end

new text begin Early retirement date. new text end

new text begin "Early retirement date"
means the last day of the month occurring after a judge attains
the age of 60 but before the judge reaches the normal retirement
date.
new text end

Sec. 14.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 15b. new text end

new text begin Early retirement annuity. new text end

new text begin "Early retirement
annuity" means an annuity to which a judge is entitled under
section 490.124, subdivisions 1 and 3, upon retirement by the
judge at an early retirement date.
new text end

Sec. 15.

Minnesota Statutes 2004, section 490.121,
subdivision 21, is amended to read:

Subd. 21.

Final average compensation.

"Final average
compensation" means the total amount of new text begin the new text end salary payable to a
judge in the highest five years new text begin out new text end of the last ten years deleted text begin prior
to deleted text end new text begin before new text end the deleted text begin event of maturity of benefits deleted text end new text begin termination of
judicial service new text end , divided by five deleted text begin ; provided, however, that deleted text end if
the number of years of service new text begin by the judge equals or exceeds
ten. If the number of years of service by the judge new text end is less
than ten, the highest five deleted text begin shall deleted text end new text begin years of salary must new text end be counted
deleted text begin , and deleted text end new text begin . new text end If the number of years new text begin of service by the judge new text end is less
than five, the aggregate salary deleted text begin in such deleted text end new text begin for the new text end period deleted text begin shall deleted text end new text begin of
service must new text end be divided by the number of months in deleted text begin such deleted text end new text begin the
new text end period and multiplied by 12.

Sec. 16.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 21a. new text end

new text begin Judge. new text end

new text begin "Judge" means a judge or a justice of
any court.
new text end

Sec. 17.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 21b. new text end

new text begin Judges' retirement fund. new text end

new text begin "Judges' retirement
fund," "retirement fund," or "fund" means the fund created by
section 490.123.
new text end

Sec. 18.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 21c. new text end

new text begin Mandatory retirement date. new text end

new text begin "Mandatory
retirement date" means the last day of the month in which a
judge has attained 70 years of age.
new text end

Sec. 19.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 21d. new text end

new text begin Normal retirement annuity. new text end

new text begin Except as
otherwise provided in sections 490.121 to 490.132, "normal
retirement annuity" means an annuity to which a judge is
entitled under section 490.124, subdivision 1, upon retirement
on or after the normal retirement date of the judge.
new text end

Sec. 20.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 21e. new text end

new text begin Normal retirement date. new text end

new text begin "Normal retirement
date" means the last day of the month in which a judge attains
the age of 65.
new text end

Sec. 21.

Minnesota Statutes 2004, section 490.121,
subdivision 22, is amended to read:

Subd. 22.

Service credit limit.

"Service credit limit"
means the greater of: (1) 24 years of allowable service
under new text begin this new text end chapter deleted text begin 490 deleted text end ; or (2) for judges with allowable service
rendered deleted text begin prior to deleted text end new text begin before new text end July 1, 1980, the number of years of
allowable service under chapter 490, which, when multiplied by
the percentage listed in section 356.315, subdivision 7 or 8,
whichever is applicable to each year of service, equals 76.8.

Sec. 22.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 23. new text end

new text begin Surviving spouse. new text end

new text begin "Surviving spouse" means the
surviving legally married spouse of a deceased judge.
new text end

Sec. 23.

Minnesota Statutes 2004, section 490.121, is
amended by adding a subdivision to read:

new text begin Subd. 24. new text end

new text begin Survivor's annuity. new text end

new text begin "Survivor's annuity" means
an annuity to which a surviving spouse or dependent child is
entitled under section 490.124, subdivision 9.
new text end

Sec. 24.

Minnesota Statutes 2004, section 490.122, is
amended to read:

490.122 ADMINISTRATION OF JUDGES' RETIREMENT.

new text begin Subdivision 1. new text end

new text begin Administration. new text end

The policy-making,
management, and administrative functions governing the operation
of the judges' retirement fund and the administration
of deleted text begin sections 490.121 to 490.132 deleted text end new text begin this chapter new text end are vested in the
board of directors and executive director of the Minnesota State
Retirement System deleted text begin with such deleted text end new text begin . In administering the plan and
fund, the board and the director have the same new text end duties,
authority, and responsibility as are provided in chapter 352.

new text begin Subd. 2. new text end

new text begin Inapplicability of certain laws. new text end

Except as
otherwise specified, no provision of chapter 352 applies to the
judges' retirement fund or any judge.

new text begin Subd. 3. new text end

new text begin Fiduciary responsibility. new text end

Fiduciary
activities deleted text begin of deleted text end new text begin relating to new text end the uniform new text begin judges' new text end retirement deleted text begin and
Survivors' Annuities for Judges deleted text end new text begin plan new text end must be undertaken in a
manner consistent with chapter 356A.

Sec. 25.

Minnesota Statutes 2004, section 490.123,
subdivision 1, is amended to read:

Subdivision 1.

Fund creation; revenue and authorized
disbursements.

new text begin (a) There is created a special fund to be known
as new text end the "judges' retirement fund" new text begin .
new text end

new text begin (b) The judges' retirement fund new text end must be credited with all
contributions deleted text begin , deleted text end new text begin ; new text end all interest, new text begin dividends, and other investment
proceeds; new text end and all other income authorized by new text begin this chapter or
other applicable new text end law.

new text begin (c) new text end From this fund there are appropriated the payments
authorized by sections 490.121 to 490.132, in the amounts and at
the times provided, including the necessary and reasonable
expenses of the Minnesota State Retirement System in
administering the fund and the transfers to the Minnesota
postretirement investment fund.

Sec. 26.

Minnesota Statutes 2004, 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 new text begin and new text end 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 salary.

(b) A judge new text begin who is new text end not deleted text begin so deleted text end covered new text begin by the federal Old Age,
Survivors, Disability, and Health Insurance Program and new text end 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 8.15 percent of salary.

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

Sec. 27.

Minnesota Statutes 2004, section 490.123,
subdivision 1b, is amended to read:

Subd. 1b.

Employer contribution rate.

new text begin (a) new text end The employer
contribution rate to the fund on behalf of a judge is 20.5
percent of salary deleted text begin and deleted text end new text begin . The employer obligation new text end continues after
a judge exceeds the service credit limit in section 490.121,
subdivision 22.

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

Sec. 28.

Minnesota Statutes 2004, section 490.123,
subdivision 1c, is amended to read:

Subd. 1c.

Additional employer contribution.

deleted text begin In the event
that deleted text end new text begin If new text end the employer contribution under subdivision 1b and the
assets of the judges retirement fund are insufficient to meet
reserve transfers to the Minnesota postretirement investment
fund or payments of survivor benefits deleted text begin before July 1, 1993 deleted text end new text begin in a
month new text end , the necessary amount is appropriated from the general
fund to the executive director of the Minnesota State Retirement
System, upon new text begin the new text end certification new text begin of the required amount new text end by the
executive director to the commissioner of finance.

Sec. 29.

Minnesota Statutes 2004, section 490.123,
subdivision 2, is amended to read:

Subd. 2.

Commissioner of finance.

The commissioner of
finance deleted text begin shall be deleted text end new text begin is the new text end ex officio treasurer of the judges'
retirement fund deleted text begin and the deleted text end new text begin . The new text end commissioner's general bond to the
state deleted text begin shall deleted text end new text begin must new text end be deleted text begin so deleted text end conditioned deleted text begin as deleted text end to cover all liability for
acting as new text begin the new text end treasurer of deleted text begin this deleted text end new text begin the new text end fund. All deleted text begin moneys deleted text end new text begin money
new text end received by the commissioner deleted text begin pursuant to deleted text end new text begin under new text end this section
deleted text begin shall deleted text end new text begin must new text end be set aside in the state treasury to the credit of
the judges' retirement fund. The commissioner shall transmit
monthly to the executive director deleted text begin described in section 352.03,
subdivision 5, deleted text end new text begin of the Minnesota State Retirement System new text end a
detailed statement of all amounts so received and credited to
the fund. The commissioner shall pay out the fund only upon
vouchers new text begin for benefit payments and administrative expenses new text end signed
by deleted text begin said deleted text end new text begin the new text end executive director deleted text begin ; provided that deleted text end new text begin or new text end vouchers for
investment deleted text begin may be deleted text end signed by the deleted text begin secretary deleted text end new text begin executive director new text end of
the State Board of Investment.

Sec. 30.

Minnesota Statutes 2004, section 490.123,
subdivision 3, is amended to read:

Subd. 3.

Investment.

new text begin (a) new text end The new text begin executive new text end director deleted text begin referred
to in subdivision 2 deleted text end new text begin of the Minnesota State Retirement System
new text end shall, from time to time, certify to the State Board of
Investment such portions of the judges' retirement fund as in
the director's judgment may not be required for immediate use.

new text begin (b) new text end Assets from the judges' retirement fund deleted text begin shall deleted text end new text begin must new text end be
transferred to the Minnesota postretirement investment fund for
retirement and disability benefits as provided in sections
11A.18 and 352.119.

new text begin (c) new text end The State Board of Investment shall thereupon invest
and reinvest sums so transferred, or certified, in such
securities as are duly authorized legal investments for such
purposes under section 11A.24 new text begin in compliance with sections
356A.04 and 356A.06 new text end .

Sec. 31.

Minnesota Statutes 2004, section 490.124,
subdivision 1, is amended to read:

Subdivision 1.

Basic retirement annuity.

new text begin (a) new text end Except as
qualified hereinafter from and after new text begin the new text end mandatory retirement
date, new text begin the new text end normal retirement date, new text begin the new text end early retirement date, or
one year from the disability retirement date, as the case may
be, new text begin a retiring judge is eligible to receive new text end a retirement annuity
deleted text begin shall be payable to a retiring judge deleted text end from the judges' retirement
fund deleted text begin in deleted text end new text begin .
new text end

new text begin (b) The retirement annuity is new text end an amount equal to: (1) the
percent specified in section 356.315, subdivision 7, multiplied
by the judge's final average compensation new text begin with that result then
new text end multiplied by the number of years and fractions of years of
allowable service rendered deleted text begin prior to deleted text end new text begin before new text end July 1, 1980; plus
(2) the percent specified in section 356.315, subdivision 8,
multiplied by the judge's final average compensation new text begin with that
result then new text end multiplied by the number of years and fractions of
years of allowable service rendered after June 30, 1980.

new text begin (c) new text end Service that exceeds the service credit limit in
section 490.121, subdivision 22, must be excluded in calculating
the retirement annuity, but new text begin the new text end compensation earned new text begin by the judge
new text end during this new text begin period of judicial new text end service must be used in
determining a judge's final average compensation and calculating
the retirement annuity.

Sec. 32.

Minnesota Statutes 2004, section 490.124,
subdivision 2, is amended to read:

Subd. 2.

Minimum service requirement; extension of
term new text begin in certain instances new text end .

deleted text begin No deleted text end new text begin (a) Unless section 356.30
applies, a new text end judge deleted text begin shall be deleted text end new text begin is not new text end eligible for an annuity at new text begin the
new text end normal new text begin retirement date new text end or new text begin the new text end early retirement date if the judge
has less than five years of allowable service.

new text begin (b) new text end A judge who deleted text begin shall retire deleted text end new text begin retires new text end on or, as permitted
under sections 490.121 to 490.132, after new text begin the judge's new text end mandatory
retirement date, deleted text begin shall be deleted text end new text begin is new text end entitled to a proportionate annuity
based upon the allowable service of the judge at new text begin the new text end date of
retirement.

new text begin (c) new text end A judge who was in office on December 31, 1973, and
thereafter and who, by the date on which the current term
expires, would not be eligible to retire with full benefits
under statutes in effect on December 31, 1973, may apply to the
governor for an extension new text begin in the term of the judge new text end to serve up
to three additional years deleted text begin , stating deleted text end new text begin if the application states new text end the
intention of the judge to retire upon attaining eligibility to
receive a retirement allowance. Notwithstanding section
490.125, the governor shall forthwith make a written order
accepting the retirement application, and extending the term of
office of the judge for the period of time, not to exceed three
years, deleted text begin as may be deleted text end new text begin that is new text end necessary to make the judge eligible
for retirement, solely for purposes of computing benefits
hereunder.

Sec. 33.

Minnesota Statutes 2004, section 490.124,
subdivision 3, is amended to read:

Subd. 3.

Early new text begin reduced new text end retirement.

The retirement
annuity deleted text begin provided by deleted text end new text begin under new text end subdivision 1 of any judge deleted text begin electing
deleted text end new text begin who elects new text end to retire at an early retirement date deleted text begin shall deleted text end new text begin must new text end be
reduced by one-half of one percent per month from the retirement
date to new text begin the new text end normal retirement date.

Sec. 34.

Minnesota Statutes 2004, section 490.124,
subdivision 4, is amended to read:

Subd. 4.

Disability retirement.

new text begin (a) new text end From and after
disability retirement date, a disabled judge deleted text begin shall be deleted text end new text begin is
new text end entitled to continuation of the judge's full salary payable by
the judge's employer, as if the judge's office were not vacated
by retirement, for a period of up to one full year, but in no
event beyond the judge's mandatory retirement date. During this
year the judge deleted text begin will deleted text end new text begin is entitled to new text end earn additional service
credit new text begin in the judges' retirement plan new text end . The salary deleted text begin earned will
be deleted text end new text begin payable to a disabled judge is new text end subject to retirement
deductions and deleted text begin will deleted text end new text begin must new text end be included in computing final average
compensation new text begin of the judge new text end . deleted text begin Thereafter
deleted text end

new text begin (b) At the conclusion of the year of continued salary
following a disability or upon the judge's mandatory retirement
date, whichever is earlier, the disabled judge is entitled to new text end a
disability retirement annuity computed as provided in
subdivision 1 deleted text begin shall be paid, provided that deleted text end new text begin . If the computed
retirement annuity is a smaller amount, new text end the judge deleted text begin shall deleted text end new text begin is
entitled to new text end receive a minimum annuity of 25 percent of the
judge's final average compensation.

Sec. 35.

Minnesota Statutes 2004, section 490.124,
subdivision 5, is amended to read:

Subd. 5.

Deferred benefits.

(a) deleted text begin Any deleted text end new text begin A new text end benefit to which a
judge is entitled under this section may be deferred until new text begin the
new text end early or normal retirement date new text begin or later new text end , notwithstanding new text begin the
new text end termination of deleted text begin such deleted text end new text begin the new text end judge's service prior thereto.

(b) The retirement annuity of, or the survivor benefit
payable on behalf of, a former judge, who terminated service
before July 1, 1997, which is not first payable until after June
30, 1997, must be increased on an actuarial equivalent basis to
reflect the change in the postretirement interest rate actuarial
assumption under section 356.215, subdivision 8, from five
percent to six percent under a calculation procedure and tables
adopted by the board of directors of the Minnesota State
Retirement System and approved by the actuary retained deleted text begin by the
Legislative Commission on Pensions and Retirement deleted text end new text begin under section
356.214 new text end .

Sec. 36.

Minnesota Statutes 2004, section 490.124,
subdivision 6, is amended to read:

Subd. 6.

Part-time judges.

new text begin (a) new text end Notwithstanding other
provisions of this section, except as provided herein, service
by a judge who was not paid an annual salary new text begin for service as a
judge new text end or who served in a jurisdiction in which the judge was
entitled to practice law while serving as a judge deleted text begin shall deleted text end new text begin must new text end be
credited new text begin with allowable service new text end only at one-half of the regular
rate.

new text begin (b) new text end Any period of part time uncredited judicial service may
be credited new text begin as allowable new text end service for the purposes of sections
490.121 to 490.132 only if:

deleted text begin (a) deleted text end new text begin (1) new text end the judge or the judge's employer pays to the
judges' retirement fund a sum equal to the rate of employee tax
specified in the Federal Insurance Contributions Act during the
period of part time service applied to one-half of the average
salary earned during the period of part-time service, plus
accrued new text begin compound new text end interest thereon at the rate of deleted text begin five deleted text end new text begin 8.5
new text end percent per year compounded annually from the new text begin midpoint of the
new text end period of new text begin the new text end service so credited to the date payment is made;

deleted text begin (b) deleted text end new text begin (2) new text end the payment is made in not more than 36 monthly
installments; and

deleted text begin (c) deleted text end new text begin (3) new text end the judge deleted text begin shall elect deleted text end new text begin elects new text end to make the payment
and deleted text begin shall commence deleted text end new text begin commences new text end doing so within 90 days after the
commencement of the judge's first term in office.

Sec. 37.

Minnesota Statutes 2004, section 490.124,
subdivision 8, is amended to read:

Subd. 8.

Exclusive normal retirement benefits.

deleted text begin Any deleted text end new text begin (a)
Except as provided in paragraph (b), a new text end judge who retires after
December 31, 1973, deleted text begin shall be deleted text end new text begin is new text end entitled to a retirement pension,
retirement compensation or other retirement payment under
statutes applicable solely to judges deleted text begin pursuant to deleted text end new text begin under new text end this
section only deleted text begin , except that any such deleted text end new text begin .
new text end

new text begin (b) A new text end judge new text begin who was new text end in office deleted text begin prior to deleted text end new text begin before new text end January 1,
1974, who retires at or after normal retirement age may then
elect to receive during the judge's lifetime a normal retirement
annuity computed on the basis of retirement compensation
provided for such judge new text begin the applicable level of judicial service
new text end under statutes in effect on December 31, 1973, in lieu of the
amount of normal retirement annuity otherwise computed under
sections 490.121 to 490.132.

new text begin (c) new text end For purposes of this subdivision, the Conciliation
Court of the city of Duluth deleted text begin shall be deleted text end new text begin is new text end deemed to have been a
court of record by the statutes in effect on December 31, 1973.

Sec. 38.

Minnesota Statutes 2004, section 490.124,
subdivision 9, is amended to read:

Subd. 9.

Survivors' annuity.

new text begin (a) new text end Upon the death of a
judge deleted text begin prior to deleted text end new text begin before new text end retirement, or upon the death of a person
who has qualified for an annuity new text begin under this section new text end but who
ceases to be a judge deleted text begin prior to deleted text end new text begin before new text end retirement and has new text begin who new text end not
received a refund of contributions deleted text begin pursuant to deleted text end new text begin under new text end subdivision
12, a surviving spouse new text begin is entitled to, new text end or, if there be no
surviving spouse, dependent children, deleted text begin shall deleted text end new text begin are entitled to
new text end receive an annuity, payable monthly, equal new text begin in total new text end to 60
percent of the normal retirement annuity which would have been
payable to the judge or former judge had the date of death been
the normal retirement date deleted text begin , provided that the deleted text end new text begin .
new text end

new text begin (b) The annuity payable to a new text end surviving spouse or new text begin to
new text end dependent children deleted text begin shall receive an annuity deleted text end new text begin is an amount new text end of not
less than 25 percent of the judge's or new text begin the new text end former judge's final
average compensation.

deleted text begin If a judge, whose surviving spouse was not entitled to
survivors benefits provided solely for judges under statutes in
effect prior to January 1, 1974, shall have died prior to
retirement on or after May 23, 1973 and before January 1, 1974,
a surviving spouse and dependent children, if any, shall be
entitled to survivors benefits as provided hereunder as if such
judge had died on January 1, 1974.
deleted text end

Sec. 39.

Minnesota Statutes 2004, section 490.124,
subdivision 10, is amended to read:

Subd. 10.

Prior survivors' benefits; limitation.

new text begin (a)
new text end Benefits provided deleted text begin pursuant to deleted text end new text begin under Minnesota Statutes 2004,
new text end section 490.102, subdivision 6, or 490.1091, for a surviving
spouse of a retired judge, payable after the death of the judge,
deleted text begin shall be deleted text end new text begin are new text end limited to:

deleted text begin (a) deleted text end new text begin (1) new text end spouses of judges who have retired deleted text begin prior to deleted text end new text begin before
new text end January 1, 1974; and

deleted text begin (b) deleted text end new text begin (2) new text end spouses of judges in office on December 31, 1973
and thereafter who elect to continue contributions deleted text begin pursuant to
deleted text end new text begin under new text end section 490.102, subdivision 6 new text begin , new text end or 490.109. The
contributions deleted text begin shall be deleted text end new text begin are new text end in addition to contributions deleted text begin pursuant
to deleted text end new text begin under Minnesota Statutes 2004, new text end section 490.123, and upon
retirement the judge may not elect to receive any optional
annuity pursuant to subdivision 11 unless the judge and the
spouse deleted text begin shall deleted text end waive any benefits deleted text begin pursuant to deleted text end new text begin under Minnesota
Statutes 2002, new text end section 490.102, subdivision 6 new text begin , new text end or 490.1091.

new text begin (b) new text end No other judge in office on or after January 1, 1974,
deleted text begin shall be deleted text end new text begin is new text end required to contribute deleted text begin pursuant to deleted text end new text begin under Minnesota
Statutes 2002, new text end section 490.102, subdivision 6 new text begin , new text end or 490.109.

Sec. 40.

Minnesota Statutes 2004, section 490.124,
subdivision 11, is amended to read:

Subd. 11.

new text begin limitation on survivor benefits; new text end optional
annuities.

new text begin (a) new text end No survivor or death benefits may be paid in
connection with the death of a judge who retires after December
31, 1973, except as otherwise provided in sections 490.121 to
490.132.

new text begin (b) new text end Except as provided in subdivision 10, a judge may elect
to receive, instead of the normal retirement annuity, an
optional retirement annuity in the form of new text begin either (1) new text end an annuity
payable for a period certain and for life after that period, new text begin (2)
new text end a joint and survivor annuity without reinstatement deleted text begin in the event
of deleted text end new text begin if new text end the designated beneficiary deleted text begin predeceasing deleted text end new text begin predeceases new text end the
retired judge, or new text begin (3) new text end a joint and survivor annuity with
reinstatement deleted text begin in the event of deleted text end new text begin if new text end the designated beneficiary
deleted text begin predeceasing deleted text end new text begin predeceases new text end the retired judge.

new text begin (c) new text end An optional retirement annuity must be actuarially
equivalent to a single-life annuity with no term certain and
must be established by the board of directors of the Minnesota
State Retirement System. In establishing these optional
retirement annuity forms, the board shall obtain the written
recommendation of the actuary retained deleted text begin by the Legislative
Commission on Pensions and Retirement deleted text end new text begin under section 356.214 new text end .
The recommendations must be new text begin retained as new text end a part of the permanent
records of the board.

Sec. 41.

Minnesota Statutes 2004, section 490.124,
subdivision 12, is amended to read:

Subd. 12.

Refund.

(a) A person who ceases to be a
judge deleted text begin but who does not qualify for a retirement annuity or other
benefit under section 490.121 deleted text end is entitled to a refund in an
amount new text begin that is new text end equal to all new text begin of new text end the member's employee
contributions to the judges' retirement fund plus interest
computed under section 352.22, subdivision 2.

(b) A refund of contributions under paragraph (a)
terminates all service credits and all rights and benefits of
the judge and the judge's survivors new text begin under this chapter new text end .

new text begin (c) new text end A person who becomes a judge again after taking a
refund under paragraph (a) may reinstate the previously
terminated new text begin allowable new text end service deleted text begin credits deleted text end new text begin credit new text end , rights, and
benefits by repaying the total amount of the previously received
refund. The refund repayment must include interest on the total
amount previously received at an annual rate of 8.5 percent new text begin ,
new text end compounded annually new text begin , new text end from the date on which the refund was
received until the date on which the refund is repaid.

Sec. 42.

Minnesota Statutes 2004, section 490.124,
subdivision 13, is amended to read:

Subd. 13.

Death refund.

If a judge who has not received
other benefits under this chapter dies and there are no survivor
benefits payable under this chapter, a refund plus interest as
provided in subdivision 12 is payable to the last designated
beneficiary named on a form filed with the director before the
death of the judge, or new text begin , new text end if no designation is on file, deleted text begin the refund
is payable deleted text end to the estate of the deceased judge.

Sec. 43.

Minnesota Statutes 2004, section 490.125,
subdivision 1, is amended to read:

Subdivision 1.

Mandatory retirement new text begin age new text end .

Except as
otherwise provided in sections 490.121 to 490.132, deleted text begin each deleted text end new text begin a new text end judge
shall deleted text begin retire deleted text end new text begin terminate active service as a judge new text end on the judge's
mandatory retirement date.

Sec. 44.

Minnesota Statutes 2004, section 490.126, is
amended to read:

490.126 PROCEDURES.

Subdivision 1.

Compulsory retirement.

Proceedings for
compulsory retirement of a judge, if necessary, deleted text begin shall deleted text end new text begin must new text end be
conducted in accordance with rules issued by the Supreme Court
deleted text begin pursuant to deleted text end new text begin under new text end section 490.16.

Subd. 2.

Vacancies.

Any judge may make written
application to the governor for retirement. The governor
thereupon shall direct the judge's retirement by written order
which, when filed in the Office of the Secretary of State, deleted text begin shall
effect deleted text end new text begin effects new text end a vacancy in the office to be filled as provided
by law.

Subd. 3.

Application for annuity or refund.

new text begin An
new text end application for an annuity or new text begin a new text end refund under sections 490.121 to
490.132 may be made by the new text begin potential new text end annuitant or by someone
authorized to act for the new text begin potential new text end annuitant. Every
application for an annuity or refund, deleted text begin with deleted text end new text begin accompanied by a
new text end proof of age and new text begin by a record of new text end years of service when
required, deleted text begin shall deleted text end new text begin must new text end be submitted to the deleted text begin governing
body deleted text end new text begin executive director new text end of the Minnesota State Retirement System
in a form prescribed by deleted text begin it deleted text end new text begin the director new text end .

Subd. 4.

Manner of payment.

Unless otherwise
specifically provided by statute or agreed upon by the annuitant
and the deleted text begin governing body deleted text end new text begin board of directors new text end of the new text begin Minnesota new text end State
Retirement System, annuities payable under sections 490.121 to
490.132 deleted text begin shall deleted text end new text begin must new text end be paid in the manner and at the intervals as
prescribed by the executive director of the new text begin Minnesota new text end State
Retirement System. The annuity deleted text begin shall cease deleted text end new text begin ceases new text end with the last
payment received by the annuitant while living.

Subd. 5.

Exemption from process; no assignment.

None of
the money, annuities, or other benefits provided in this chapter
is assignable either in law or equity or is subject to new text begin state
estate tax, or to new text end execution, levy, attachment, garnishment, or
other legal process, except as provided in section 518.58,
518.581, or 518.6111.

Sec. 45.

Minnesota Statutes 2004, section 490.132, is
amended to read:

490.132 COVERAGE FOR CERTAIN SUPREME COURT JUSTICES.

A judge of the Supreme Court who holds office on or deleted text begin prior
to deleted text end new text begin before new text end January 1, 1974, deleted text begin shall be deleted text end new text begin is new text end covered by the applicable
provisions of new text begin Minnesota Statutes 2004, new text end sections 490.025 to
490.106, deleted text begin shall continue deleted text end new text begin continues new text end to receive all the benefits
thereunder and deleted text begin shall deleted text end new text begin is new text end not deleted text begin be deleted text end covered by the provisions of
sections 490.121 to 490.132 unless the judge had elected, in
writing, to be covered by the provisions of sections 490.121 to
490.132 by notifying the director of the new text begin Minnesota new text end State
Retirement System by January 1, 1974.

Sec. 46.

Minnesota Statutes 2004, section 490.133, is
amended to read:

490.133 RETIREMENT; TRANSITION PROVISIONS; TRANSFER TO
COURT OF APPEALS.

new text begin (a) new text end If a judge to whom or to whose survivors benefits would
be payable under new text begin Minnesota Statutes 2004, new text end sections 490.101 to
490.12, is elected or appointed to the Court of Appeals, that
judge and the judge's survivors deleted text begin , shall deleted text end continue to be eligible
for benefits under those sections and not under sections 490.121
to 490.132.

new text begin (b) new text end In deleted text begin that deleted text end new text begin the new text end case new text begin of a judge to whom paragraph (a)
applies new text end , the service of the judge in the Court of Appeals deleted text begin shall
deleted text end new text begin must new text end be added to the new text begin prior new text end service as district judge, probate
judge, or judge of any other court of record in determining
eligibility and the compensation of a judge of the Court of
Appeals at the time of the judge's death, disability, or
retirement deleted text begin shall be deleted text end new text begin is new text end the "compensation allotted to the office"
for the purposes of calculating benefit amounts.

new text begin (c) new text end All other judges of the Court of Appeals and their
survivors deleted text begin shall be deleted text end new text begin are new text end subject to the retirement and survivor's
annuity provisions of sections 490.121 to 490.132.

Sec. 47.

new text begin [490A.01] BOARD OF JUDICIAL STANDARDS;
ESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; composition. new text end

new text begin The Board on
Judicial Standards is established. The board is a continuation
of the board established by Laws 1971, chapter 909, sections 1
and 2, as amended.
new text end

new text begin Subd. 2. new text end

new text begin Composition; appointment. new text end

new text begin (a) The board
consists of one judge of the Court of Appeals, three trial court
judges, two lawyers who have practiced law in the state for at
least ten years, and four citizens who are not judges, retired
judges, or lawyers.
new text end

new text begin (b) All members must be appointed by the governor with the
advice and consent of the senate. Senate confirmation is not
required for judicial members.
new text end

new text begin Subd. 3. new text end

new text begin Term maximum; membership termination. new text end

new text begin No member
may serve more than two full four-year terms or their equivalent.
Membership terminates if a member ceases to hold the position
that qualified the member for appointment.
new text end

new text begin Subd. 4. new text end

new text begin Member terms; compensation; removal. new text end

new text begin The
membership terms, compensation, removal of members, and filling
of vacancies on the board are as provided in section 15.0575.
new text end

new text begin Subd. 5. new text end

new text begin Executive secretary appointment; salary. new text end

new text begin (a)
The board shall appoint the executive secretary.
new text end

new text begin (b) The salary of the executive secretary of the board is
85 percent of the maximum salary provided for an administrative
law judge under section 15A.083, subdivision 6a.
new text end

Sec. 48.

new text begin [490A.02] JUDICIAL STANDARDS BOARD; POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Judicial disqualification. new text end

new text begin A judge is
disqualified from acting as a judge, without a loss of salary,
while there is pending an indictment or any information charging
the judge with a crime that is punishable as a felony under
either Minnesota law or federal law, or while there is pending a
recommendation to the Supreme Court by the Board on Judicial
Standards for the judge's removal or retirement.
new text end

new text begin Subd. 2. new text end

new text begin Judicial suspension. new text end

new text begin On receipt of a
recommendation of the Board on Judicial Standards or on its own
motion, the Supreme Court may suspend a judge from office
without salary when the judge pleads guilty to or no contest to
or is found guilty of a crime that is punishable as a felony
under either Minnesota law or federal law or any other crime
that involves moral turpitude. If the conviction is reversed,
the suspension terminates and the judge must be paid a salary
for the period of suspension. If the judge is suspended and the
conviction becomes final, the Supreme Court shall remove the
judge from office.
new text end

new text begin Subd. 3. new text end

new text begin Judicial disability. new text end

new text begin On receipt of a
recommendation of the Board on Judicial Standards, the Supreme
Court may retire a judge for a disability that the court
determines seriously interferes with the performance of the
judge's duties and is or is likely to become permanent, and
censure or remove a judge for an action or inaction that may
constitute persistent failure to perform the judge's duties,
incompetence in performing the judge's duties, habitual
intemperance, or conduct prejudicial to the administration of
justice that brings the judicial office of the judge into
disrepute.
new text end

new text begin Subd. 4. new text end

new text begin Authority to reopen matters. new text end

new text begin The board is
specifically empowered to reopen any matter wherein any
information or evidence was previously precluded by a statute of
limitations or by a previously existing provision of time
limitation.
new text end

new text begin Subd. 5. new text end

new text begin Retirement status. new text end

new text begin (a) A judge who is retired
by the Supreme Court must be considered to have retired
voluntarily.
new text end

new text begin (b) This section and section 490A.01 must not affect the
right of a judge who is suspended, retired, or removed hereunder
from qualifying for any pension or other retirement benefits to
which the judge would otherwise be entitled by law to receive.
new text end

new text begin Subd. 6. new text end

new text begin Eligibility for judicial office; practice
law. new text end

new text begin A judge removed by the Supreme Court is ineligible for any
future service in a judicial office. The question of the right
of a removed judge to practice law in this state must be
referred to the proper authority for review.
new text end

new text begin Subd. 7. new text end

new text begin Supreme court rules. new text end

new text begin The Supreme Court shall
make rules to implement this section.
new text end

Sec. 49. new text begin REPEALER; EFFECT ON BENEFIT COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Repealed as obsolete. new text end

new text begin Minnesota Statutes
2004, sections 490.021; 490.025, subdivisions 1, 2, 3, 4, and 6;
490.101; 490.102; 490.103; 490.105; 490.106; 490.107; 490.108;
490.109; 490.1091; 490.12; and 490.121, subdivisions 2, 3, 5, 8,
9, 10, 11, 12, 16, 17, 18, 19, and 20, are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Repealed for relocation as minnesota statutes,
chapter 490a. new text end

new text begin Minnesota Statutes 2004, sections 490.15; 490.16;
and 490.18, are repealed.
new text end

new text begin Subd. 3. new text end

new text begin No benefit diminishment; procedures. new text end

new text begin Sections 1
to 49 are not intended to reduce or increase the entitlement of
active, deferred, or retired judges to retirement annuities or
benefits as of July 1, 2005, as reflected in the records of the
Minnesota State Retirement System. If the executive director of
the Minnesota State Retirement System determines that any
provisions of sections 1 to 49 functions to modify, impair, or
diminish the retirement annuity or benefit entitlement of any
judge that had accrued or earned before July 1, 2005, the
executive director shall certify that determination and a
recommendation as to the required legislative correction to the
chair of the Legislative Commission on Pensions and Retirement,
the chair of the Senate State and Local Governmental Operations
Committee, the chair of the House Governmental Operations and
Veterans Affairs Policy Committee, and the executive director of
the Legislative Commission on Pensions and Retirement on or
before the October 1 next following that determination.
new text end

Sec. 50. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 49 are effective July 1, 2005.
new text end