Minnesota Legislature
HF 2115
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
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A bill for an act
relating to retirement; statewide and major public
pension plans; defining final average salary; amending
Minnesota Statutes 2004, sections 352.01, by adding a
subdivision; 352.115, subdivisions 2, 3; 352.87,
subdivision 3; 352.93, subdivision 1; 352C.021, by
adding a subdivision; 353.01, by adding a subdivision;
353.29, subdivision 3; 353.33, subdivision 3; 353.651,
subdivision 3; 353.656, subdivision 1; 354.05, by
adding a subdivision; 354.44, subdivision 6; 354A.011,
by adding a subdivision; 354A.31, subdivisions 4, 4a;
422A.01, by adding a subdivision; 422A.15, subdivision
1; 422A.16, subdivision 9; 490.121, subdivision 21;
repealing Minnesota Statutes 2004, sections 352C.031,
subdivision 3; 353.29, subdivision 2; 353.651,
subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 352.01, is
amended by adding a subdivision to read:
new text begin Subd. 14a. new text end
new text begin Average salary. new text end
new text begin
(a) "Average salary" means
the average of the highest five successive years of salary upon
which the employee has made contributions to the retirement fund
by payroll deductions. Average salary must be based upon all
allowable service if this service is less than five years.
new text end
new text begin
(b) "Average salary" does not include the payment of
accrued unused annual leave or overtime paid at time of final
separation from state service if paid in a lump sum nor does it
include the reduced salary, if any, paid during the period the
employee is entitled to workers' compensation benefit payments
for temporary disability.
new text end
new text begin
(c) For an employee covered by the correctional state
employees retirement plan, "average salary" means the average of
the monthly salary during the employee's highest five successive
years of salary as an employee covered by the general state
employees retirement plan, or the correctional state employees
retirement plan, or by a combination of the two. If the total
of the covered service is less than five years, the
determination of average salary must be based on all allowable
service.
new text end
Sec. 2.
Minnesota Statutes 2004, section 352.115,
subdivision 2, is amended to read:
Subd. 2.
deleted text begin average salary deleted text end new text begin normal retirement annuitynew text end .
The
retirement annuity hereunder payable at normal retirement age or
thereafter must be computed in accordance with the applicable
provisions of the formula stated in subdivision 3, on the basis
of the employee's average salary for the period of allowable
service. This retirement annuity is known as the "normal"
retirement annuity.
deleted text begin
For each year of allowable service, "average salary" of an
employee in determining a retirement annuity means the average
of the highest five successive years of salary upon which the
employee has made contributions to the retirement fund by
payroll deductions. Average salary must be based upon all
allowable service if this service is less than five years.
deleted text end
deleted text begin
"Average salary" does not include the payment of accrued
unused annual leave or overtime paid at time of final separation
from state service if paid in a lump sum nor does it include the
reduced salary, if any, paid during the period the employee is
entitled to workers' compensation benefit payments for temporary
disability.
deleted text end
Sec. 3.
Minnesota Statutes 2004, section 352.115,
subdivision 3, is amended to read:
Subd. 3.
Retirement annuity formula.
(a) This paragraph,
in conjunction with section 352.116, subdivision 1, applies to a
person who became a covered employee or a member of a pension
fund listed in section 356.30, subdivision 3, before July 1,
1989, unless paragraph (b), in conjunction with section 352.116,
subdivision 1a, produces a higher annuity amount, in which case
paragraph (b) will apply. The employee's average salary, as
defined in new text begin section 352.01,new text end subdivision deleted text begin 2 deleted text end new text begin 14anew text end , multiplied by the
percent specified in section 356.315, subdivision 1, per year of
allowable service for the first ten years and the percent
specified in section 356.315, subdivision 2, for each later year
of allowable service and pro rata for completed months less than
a full year shall determine the amount of the retirement annuity
to which the employee is entitled.
(b) This paragraph applies to a person who has become at
least 55 years old and first became a covered employee after
June 30, 1989, and to any other covered employee who has become
at least 55 years old and whose annuity amount, when calculated
under this paragraph and in conjunction with section 352.116,
subdivision 1a, is higher than it is when calculated under
paragraph (a), in conjunction with section 352.116, subdivision
1. The employee's average salary, as defined in new text begin section 352.01,
new text end
subdivision deleted text begin 2 deleted text end new text begin 14anew text end , multiplied by the percent specified in
section 356.315, subdivision 2, for each year of allowable
service and pro rata for months less than a full year shall
determine the amount of the retirement annuity to which the
employee is entitled.
Sec. 4.
Minnesota Statutes 2004, section 352.87,
subdivision 3, is amended to read:
Subd. 3.
Retirement annuity formula.
A person specified
in subdivision 1 deleted text begin will have deleted text end new text begin is entitled to receive new text end a retirement
annuity applicable for allowable service credit under this
section calculated by multiplying the employee's average salary,
as defined in section deleted text begin 352.115 deleted text end new text begin 352.01new text end , subdivision deleted text begin 2 deleted text end new text begin 14anew text end , by the
percent specified in section 356.315, subdivision 2a, for each
year or portions of a year of allowable service credit. No
reduction for retirement deleted text begin prior to deleted text end new text begin before the new text end normal retirement
age, as specified in section 352.01, subdivision 25, applies to
service to which this section applies.
Sec. 5.
Minnesota Statutes 2004, section 352.93,
subdivision 1, is amended to read:
Subdivision 1.
Basis of annuity; when to apply.
After
separation from state service, an employee covered under section
352.91 who has reached age 55 years and has credit for at least
three years of covered correctional service new text begin or a combination of
covered correctional service new text end and deleted text begin regular Minnesota deleted text end new text begin general
employees new text end state retirement deleted text begin System deleted text end new text begin plan new text end service is entitled upon
application to a retirement annuity under this sectionnew text begin ,new text end based
only on covered correctional employees' service. Application
may be made no earlier than 60 days before the date the employee
is eligible to retire by reason of both age and service
requirements.
deleted text begin
In this section, "average salary" means the average of the
monthly salary during the employee's highest five successive
years of salary as an employee covered by the Minnesota State
Retirement System. Average salary must be based upon all
allowable service if this service is less than five years.
deleted text end
Sec. 6.
Minnesota Statutes 2004, section 352C.021, is
amended by adding a subdivision to read:
new text begin Subd. 1a. new text end
new text begin Average salary. new text end
new text begin
"Average salary," for purposes
of calculating the normal retirement annuity under section
352C.031, subdivision 4, means the average of the highest five
successive years of salary upon which contributions have been
made under section 352C.09.
new text end
Sec. 7.
Minnesota Statutes 2004, section 353.01, is
amended by adding a subdivision to read:
new text begin Subd. 17a. new text end
new text begin Average salary. new text end
new text begin
(a) "Average salary," for
purposes of calculating a retirement annuity under section
353.29, subdivision 3, means an amount equivalent to the average
of the highest salary of the member, police officer, or
firefighter, whichever applies, upon which employee
contributions were paid for any five successive years of
allowable service, based on dates of salary periods as listed on
salary deduction reports. Average salary must be based upon all
allowable service if this service is less than five years.
new text end
new text begin
(b) "Average salary" may not include any reduced salary
paid during a period in which the employee is entitled to
benefit payments from workers' compensation for temporary
disability, unless the average salary is higher, including this
period.
new text end
Sec. 8.
Minnesota Statutes 2004, section 353.29,
subdivision 3, is amended to read:
Subd. 3.
Retirement annuity formula.
(a) This paragraph,
in conjunction with section 353.30, subdivisions 1, 1a, 1b, and
1c, applies to any member who first became a public employee or
a member of a pension fund listed in section 356.30, subdivision
3, before July 1, 1989, unless paragraph (b), in conjunction
with section 353.30, subdivision 5, produces a higher annuity
amount, in which case paragraph (b) will apply. The average
salary as defined in new text begin section 353.01,new text end subdivision deleted text begin 2 deleted text end new text begin 17anew text end ,
multiplied by the percent specified in section 356.315,
subdivision 3, for each year of allowable service for the first
ten years and thereafter by the percent specified in section
356.315, subdivision 4, per year of allowable service and
completed months less than a full year for the "basic member,"
and the percent specified in section 356.315, subdivision 1, for
each year of allowable service for the first ten years and
thereafter by the percent specified in section 356.315,
subdivision 2, per year of allowable service and completed
months less than a full year for the "coordinated member," shall
determine the amount of the "normal" retirement annuity.
(b) This paragraph applies to a member who has become at
least 55 years old and first became a public employee after June
30, 1989, and to any other member whose annuity amount, when
calculated under this paragraph and in conjunction with section
353.30, subdivision 5, is higher than it is when calculated
under paragraph (a), in conjunction with section 353.30,
subdivisions 1, 1a, 1b, and 1c. The average salary, as defined
in new text begin section 353.01,new text end subdivision deleted text begin 2 deleted text end new text begin 17anew text end , multiplied by the percent
specified in section 356.315, subdivision 4, for each year of
allowable service and completed months less than a full year for
a basic member and the percent specified in section 356.315,
subdivision 2, per year of allowable service and completed
months less than a full year for a coordinated member, shall
determine the amount of the normal retirement annuity.
Sec. 9.
Minnesota Statutes 2004, section 353.33,
subdivision 3, is amended to read:
Subd. 3.
Computation of benefits.
This disability
benefit is an amount equal to the normal annuity payable to a
member who has reached normal retirement age with the same
number of years of allowable service and the same average
salary, as provided in new text begin section 353.01, subdivision 17a, and
new text end
section 353.29, deleted text begin subdivisions 2 and deleted text end new text begin subdivision new text end 3.
A basic member shall receive a supplementary monthly
benefit of $25 to age 65 or the five-year anniversary of the
effective date of the disability benefit, whichever is later.
If the disability benefits under this subdivision exceed
the average salary as defined in section deleted text begin 353.29 deleted text end new text begin 353.01new text end ,
subdivision deleted text begin 2 deleted text end new text begin 17anew text end , the disability benefits must be reduced to an
amount equal to deleted text begin said deleted text end new text begin the new text end average salary.
Sec. 10.
Minnesota Statutes 2004, section 353.651,
subdivision 3, is amended to read:
Subd. 3.
Retirement annuity formula.
The average salary
as defined in new text begin section 353.01,new text end subdivision deleted text begin 2 deleted text end new text begin 17anew text end , multiplied by
the percent specified in section 356.315, subdivision 6, per
year of allowable service determines the amount of the normal
retirement annuity. If the member has earned allowable service
for performing services other than those of a police officer or
firefighter, the annuity representing deleted text begin such deleted text end new text begin that new text end service deleted text begin is deleted text end new text begin must
be new text end computed under sections 353.29 and 353.30.
Sec. 11.
Minnesota Statutes 2004, section 353.656,
subdivision 1, is amended to read:
Subdivision 1.
In line of duty; computation of benefits.
A member of the police and fire plan who becomes disabled and
physically unfit to perform duties as a police officer,
firefighter, or paramedic as defined under section 353.64,
subdivision 10, as a direct result of an injury, sickness, or
other disability incurred in or arising out of any act of duty,
which has or is expected to render the member physically or
mentally unable to perform the duties as a police officer,
firefighter, or paramedic as defined under section 353.64,
subdivision 10, for a period of at least one year, shall receive
disability benefits during the period of such disability. The
benefits must be in an amount equal to 60 percent of the
"average salary" as defined in section deleted text begin 353.651 deleted text end new text begin 353.01new text end ,
subdivision deleted text begin 2 deleted text end new text begin 17anew text end , plus an additional percent specified in
section 356.315, subdivision 6, of that average salary for each
year of service in excess of 20 years. If the disability under
this subdivision occurs before the member has at least five
years of allowable service credit in the police and fire plan,
the disability benefit must be computed on the "average salary"
from which deductions were made for contribution to the police
and fire fund.
Sec. 12.
Minnesota Statutes 2004, section 354.05, is
amended by adding a subdivision to read:
new text begin Subd. 13a. new text end
new text begin Average salary. new text end
new text begin
(a) "Average salary," for the
purpose of determining the member's retirement annuity, means
the average salary upon which contributions were made for the
highest five successive years of formula service credit.
new text end
new text begin
(b) "Average salary" may not include any more than the
equivalent of 60 monthly salary payments.
new text end
new text begin
(c) "Average salary" must be based upon all years of
formula service credit if this service credit is less than five
years.
new text end
Sec. 13.
Minnesota Statutes 2004, section 354.44,
subdivision 6, is amended to read:
Subd. 6.
Computation of formula program retirement
annuity.
(a) The formula retirement annuity must be computed in
accordance with the applicable provisions of the formulas stated
in paragraph (b) or (d) on the basis of each member's average
salary new text begin under section 354.05, subdivision 13a,new text end for the period of
the member's formula service credit.
deleted text begin
For all years of formula service credit, "average salary,"
for the purpose of determining the member's retirement annuity,
means the average salary upon which contributions were made and
upon which payments were made to increase the salary limitation
provided in Minnesota Statutes 1971, section 354.511, for the
highest five successive years of formula service credit
provided, however, that such "average salary" shall not include
any more than the equivalent of 60 monthly salary payments.
Average salary must be based upon all years of formula service
credit if this service credit is less than five years.
deleted text end
(b) This paragraph, in conjunction with paragraph (c),
applies to a person who first became a member of the association
or a member of a pension fund listed in section 356.30,
subdivision 3, before July 1, 1989, unless paragraph (d), in
conjunction with paragraph (e), produces a higher annuity
amount, in which case paragraph (d) applies. The average salary
as defined in deleted text begin paragraph (a) deleted text end new text begin section 354.05, subdivision 13anew text end ,
multiplied by the following percentages per year of formula
service credit shall determine the amount of the annuity to
which the member qualifying therefor is entitled:
Coordinated Member Basic Member
Each year of service the percent the percent
during first ten specified in specified in
section 356.315, section 356.315,
subdivision 1, subdivision 3,
per year per year
Each year of service the percent the percent
thereafter specified in specified in
section 356.315, section 356.315,
subdivision 2, subdivision 4,
per year per year
(c)(i) This paragraph applies only to a person who first
became a member of the association or a member of a pension fund
listed in section 356.30, subdivision 3, before July 1, 1989,
and whose annuity is higher when calculated under paragraph (b),
in conjunction with this paragraph than when calculated under
paragraph (d), in conjunction with paragraph (e).
(ii) Where any member retires prior to normal retirement
age under a formula annuity, the member shall be paid a
retirement annuity in an amount equal to the normal annuity
provided in paragraph (b) reduced by one-quarter of one percent
for each month that the member is under normal retirement age at
the time of retirement except that for any member who has 30 or
more years of allowable service credit, the reduction shall be
applied only for each month that the member is under age 62.
(iii) Any member whose attained age plus credited allowable
service totals 90 years is entitled, upon application, to a
retirement annuity in an amount equal to the normal annuity
provided in paragraph (b), without any reduction by reason of
early retirement.
(d) This paragraph applies to a member who has become at
least 55 years old and first became a member of the association
after June 30, 1989, and to any other member who has become at
least 55 years old and whose annuity amount when calculated
under this paragraph and in conjunction with paragraph (e), is
higher than it is when calculated under paragraph (b), in
conjunction with paragraph (c). The average salary, as defined
in deleted text begin paragraph (a) deleted text end new text begin section 354.05, subdivision 13a,new text end multiplied by
the percent specified by section 356.315, subdivision 4, for
each year of service for a basic member and by the percent
specified in section 356.315, subdivision 2, for each year of
service for a coordinated member shall determine the amount of
the retirement annuity to which the member is entitled.
(e) This paragraph applies to a person who has become at
least 55 years old and first becomes a member of the association
after June 30, 1989, and to any other member who has become at
least 55 years old and whose annuity is higher when calculated
under paragraph (d) in conjunction with this paragraph than when
calculated under paragraph (b), in conjunction with paragraph
(c). An employee who retires under the formula annuity before
the normal retirement age shall be paid the normal annuity
provided in paragraph (d) reduced so that the reduced annuity is
the actuarial equivalent of the annuity that would be payable to
the employee if the employee deferred receipt of the annuity and
the annuity amount were augmented at an annual rate of three
percent compounded annually from the day the annuity begins to
accrue until the normal retirement age.
(f) No retirement annuity is payable to a former employee
with a salary that exceeds 95 percent of the governor's salary
unless and until the salary figures used in computing the
highest five successive years average salary under paragraph (a)
have been audited by the Teachers Retirement Association and
determined by the executive director to comply with the
requirements and limitations of section 354.05, subdivisions 35
and 35a.
Sec. 14.
Minnesota Statutes 2004, section 354A.011, is
amended by adding a subdivision to read:
new text begin Subd. 7a. new text end
new text begin Average salary. new text end
new text begin
"Average salary," for purposes
of computing a normal coordinated program retirement annuity
under section 354A.31, subdivision 4 or 4a, means an amount
equal to the average salary upon which contributions were made
for the highest five successive years of service credit but may
not in any event include any more than the equivalent of 60
monthly salary payments. Average salary must be based upon all
years of service credit if this service credit is less than five
years.
new text end
Sec. 15.
Minnesota Statutes 2004, section 354A.31,
subdivision 4, is amended to read:
Subd. 4.
Computation of the normal coordinated retirement
annuity; minneapolis and st. paul funds.
(a) This subdivision
applies to the coordinated programs of the Minneapolis Teachers
Retirement Fund Association and the St. Paul Teachers Retirement
Fund Association.
(b) The normal coordinated retirement annuity deleted text begin shall be deleted text end new text begin is
new text end
an amount equal to a retiring coordinated member's average
salary new text begin under section 354A.011, subdivision 7a,new text end multiplied by the
retirement annuity formula percentage. deleted text begin Average salary for
purposes of this section shall mean an amount equal to the
average salary upon which contributions were made for the
highest five successive years of service credit, but which shall
not in any event include any more than the equivalent of 60
monthly salary payments. Average salary must be based upon all
years of service credit if this service credit is less than five
years.
deleted text end
(c) This paragraph, in conjunction with subdivision 6,
applies to a person who first became a member or a member in a
pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, unless paragraph (d), in conjunction with
subdivision 7, produces a higher annuity amount, in which case
paragraph (d) will apply. The retirement annuity formula
percentage for purposes of this paragraph is the percent
specified in section 356.315, subdivision 1, per year for each
year of coordinated service for the first ten years and the
percent specified in section 356.315, subdivision 2, for each
year of coordinated service thereafter.
(d) This paragraph applies to a person who has become at
least 55 years old and who first becomes a member after June 30,
1989, and to any other member who has become at least 55 years
old and whose annuity amount, when calculated under this
paragraph and in conjunction with subdivision 7 is higher than
it is when calculated under paragraph (c), in conjunction with
the provisions of subdivision 6. The retirement annuity formula
percentage for purposes of this paragraph is the percent
specified in section 356.315, subdivision 2, for each year of
coordinated service.
Sec. 16.
Minnesota Statutes 2004, section 354A.31,
subdivision 4a, is amended to read:
Subd. 4a.
Computation of the normal coordinated
retirement annuity; duluth fund.
(a) This subdivision applies
to the new law coordinated program of the Duluth Teachers
Retirement Fund Association.
(b) The normal coordinated retirement annuity is an amount
equal to a retiring coordinated member's average salary new text begin under
section 354A.011, subdivision 7a,new text end multiplied by the retirement
annuity formula percentage. deleted text begin Average salary for purposes of this
section means an amount equal to the average salary upon which
contributions were made for the highest five successive years of
service credit, but may not in any event include any more than
the equivalent of 60 monthly salary payments. Average salary
must be based upon all years of service credit if this service
credit is less than five years.
deleted text end
(c) This paragraph, in conjunction with subdivision 6,
applies to a person who first became a member or a member in a
pension fund listed in section 356.30, subdivision 3, before
July 1, 1989, unless paragraph (d), in conjunction with
subdivision 7, produces a higher annuity amount, in which case
paragraph (d) applies. The retirement annuity formula
percentage for purposes of this paragraph is the percent
specified in section 356.315, subdivision 1, per year for each
year of coordinated service for the first ten years and the
percent specified in section 356.315, subdivision 2, for each
subsequent year of coordinated service.
(d) This paragraph applies to a person who is at least 55
years old and who first becomes a member after June 30, 1989,
and to any other member who is at least 55 years old and whose
annuity amount, when calculated under this paragraph and in
conjunction with subdivision 7, is higher than it is when
calculated under paragraph (c) in conjunction with subdivision
6. The retirement annuity formula percentage for purposes of
this paragraph is the percent specified in section 356.315,
subdivision 2, for each year of coordinated service.
Sec. 17.
Minnesota Statutes 2004, section 422A.01, is
amended by adding a subdivision to read:
new text begin Subd. 4a. new text end
new text begin Average salary. new text end
new text begin
(a) "Average salary" means the
arithmetic average annual salary, wages or compensation of the
member from the city for any five calendar years out of the last
ten calendar years of service, except as provided for in section
422A.16, which may include the year in which the employee
retires, as selected by the employee.
new text end
new text begin
(b) A member with more than five calendar years of service
but less than ten calendar years may select any five calendar
years of service to determine the average salary. A member with
less than five years of service with the city shall use all
earnings to determine the average salary.
new text end
Sec. 18.
Minnesota Statutes 2004, section 422A.15,
subdivision 1, is amended to read:
Subdivision 1.
Formula pension and annuity.
Except as
otherwise provided in subdivision 3, each contributing member
who, at the time of retirement, fulfills the conditions
necessary to enable the member to retiredeleted text begin , shall deleted text end new text begin is entitled to
new text end
receive deleted text begin what shall be known as deleted text end a "formula pension and annuity"
equal to two percent for each year of allowable service for the
first ten years and thereafter 2.5 percent per year of allowable
service of the deleted text begin arithmetic deleted text end average deleted text begin annual deleted text end salarydeleted text begin , wages or
compensation of the member from the city for any five calendar
years out of the last ten calendar years of service except as
provided for in section 422A.16, which may include the year in
which the employee retires, as selected by the employeedeleted text end ,
multiplied by the years of service credited by the retirement
fund. The formula pension and annuity deleted text begin shall deleted text end new text begin must new text end be computed on
the single life plan but subject to the option selections
provided for in section 422A.17.
In order to be entitled to the formula pension and annuity
herein provided for, the retiring employee at the time of
cessation of employment and of actual retirement deleted text begin shall deleted text end new text begin must new text end have
attained the age of 60 years or have been employed by the city
not less than 30 years, or meet the qualifications provided for
in section 422A.16, and in addition thereto have contributed to
the retirement fund at the percentage rate prescribed by the
retirement law applicable when the salary, wages or compensation
was paid on all salaries, wages, or compensation received from
the city or from an applicable employing unit. The years of
service to be applied in the formula pension and annuity deleted text begin shall
deleted text end new text begin
must new text end be found and determined by the retirement board, except
that no credit deleted text begin shall deleted text end new text begin may new text end be allowed for any year in which a back
charge is owing at time of retirement and the earnings from any
year in which a back charge is owing deleted text begin shall deleted text end new text begin may new text end not be used in
determining the average deleted text begin annual deleted text end salary.
Sec. 19.
Minnesota Statutes 2004, section 422A.16,
subdivision 9, is amended to read:
Subd. 9.
Incompetency or death of member.
Any member of
the contributing class who becomes permanently separated from
the service of the city under subdivision 8, may, by an
instrument in writing, filed with the municipal employees
retirement board within 30 days after deleted text begin such deleted text end new text begin the new text end separation
becomes permanent, elect to allow the member contributions
to deleted text begin such deleted text end new text begin the new text end fund to the date of separation to remain on deposit
in deleted text begin such deleted text end new text begin the new text end fund, and in deleted text begin such deleted text end new text begin the new text end event the member deleted text begin shall be
deleted text end new text begin
is new text end entitled to receive a retirement allowance at age 65,
provided the member, or someone acting in the member's behalf if
the member be incompetent, deleted text begin shall deleted text end new text begin must new text end make new text begin a new text end written application
for deleted text begin such deleted text end new text begin the new text end retirement allowance in the same manner provided
for in section 422A.17 and in accordance with the provisions of
section 422A.15, subdivision 1new text begin ,new text end except for determining
average deleted text begin annual deleted text end salary. deleted text begin A member with more than five calendar
years of service but less than ten calendar years may select any
five calendar years of service to determine the average annual
salary. A member with less than five years of service with the
city shall use all earnings to determine the average annual
salary.
deleted text end
If the contributing member dies before reaching the age of
65 years, or having attained the age of 65 years without having
made the election provided for herein, the net accumulated
amount of deductions from the member's salary, pay or
compensation, plus interest, to the member's credit on date of
death deleted text begin shall be paid deleted text end new text begin is payable new text end to deleted text begin such deleted text end new text begin the new text end person or persons as
have been nominated by written designation filed with the
retirement board, in deleted text begin such deleted text end new text begin the new text end form deleted text begin as deleted text end new text begin that new text end the retirement board
deleted text begin
shall require deleted text end new text begin requiresnew text end .
If the employee fails to make a designation, or if the
person or persons designated by deleted text begin such deleted text end new text begin the new text end employee predeceases
deleted text begin
such deleted text end new text begin the new text end employee, the net accumulated credit to deleted text begin such deleted text end new text begin the
new text end
employee's account on date of death deleted text begin shall be paid deleted text end new text begin is payable new text end to
deleted text begin
such deleted text end new text begin the new text end employee's estate.
The provisions of subdivisions 4, 5new text begin ,new text end and 6 deleted text begin shall deleted text end also apply
to any member qualifying for benefits under this subdivision,
except for purposes of this subdivision the age referred to in
subdivision 4 deleted text begin shall be deleted text end new text begin is new text end 65 years.
Sec. 20.
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 salary deleted text begin payable deleted text end new text begin paid new text end to a
judge in the highest five years of the last ten years deleted text begin prior to
deleted text end new text begin
before new text end the event of maturity of benefits, divided by fivedeleted text begin ;
provided, however, that deleted text end new text begin .new text end If the number of years of service 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
counteddeleted text begin , and deleted text end new text begin .new text end If the number of years new text begin of service new text end is less than
five, the aggregate salary deleted text begin in such deleted text end new text begin during the new text end period deleted text begin shall deleted text end new text begin 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. 21. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2004, sections 352C.031, subdivision 3;
353.29, subdivision 2; and 353.651, subdivision 2, are repealed.
new text end
Sec. 22. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 21 are effective July 1, 2005.
new text end