HF 2518

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minneapolis and St. Paul 
  1.3             teachers retirement funds; providing supplemental 
  1.4             contributions to reduce the unfunded actuarial accrued 
  1.5             liability; reallocating levy authority to special 
  1.6             school district No. 1 and independent school district 
  1.7             No. 625; reallocating direct state aid; amending 
  1.8             Minnesota Statutes 1994, sections 124.916, subdivision 
  1.9             3; 354A.12, subdivisions 2, 3a, 3c, and by adding 
  1.10            subdivisions; Minnesota Statutes 1995 Supplement, 
  1.11            section 354A.12, subdivision 3b. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 124.916, 
  1.14  subdivision 3, is amended to read: 
  1.15     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
  1.16  excess levy authorized in 1976 any district within a city of the 
  1.17  first class which was authorized in 1975 to make a retirement 
  1.18  levy under Minnesota Statutes 1974, section 275.127 and chapter 
  1.19  422A may levy an amount per pupil unit which is equal to the 
  1.20  amount levied in 1975 payable 1976, under Minnesota Statutes 
  1.21  1974, section 275.127 and chapter 422A, divided by the number of 
  1.22  pupil units in the district in 1976-1977. 
  1.23     (2) In 1979 and each year thereafter, any district which 
  1.24  qualified in 1976 for an extra levy under clause (1) shall be 
  1.25  allowed to levy the same amount as levied for retirement in 1978 
  1.26  under this clause reduced each year by ten percent of the 
  1.27  difference between the amount levied for retirement in 1971 
  1.28  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
  2.1   422.54 and the amount levied for retirement in 1975 under 
  2.2   Minnesota Statutes 1974, section 275.127 and chapter 422A. 
  2.3      (3) In 1991 and each year thereafter, a district to which 
  2.4   this subdivision applies may levy an additional amount required 
  2.5   for contributions to the Minneapolis employees retirement fund 
  2.6   as a result of the maximum dollar amount limitation on state 
  2.7   contributions to the fund imposed under section 422A.101, 
  2.8   subdivision 3.  The additional levy shall not exceed the most 
  2.9   recent amount certified by the board of the Minneapolis 
  2.10  employees retirement fund as the district's share of the 
  2.11  contribution requirement in excess of the maximum state 
  2.12  contribution under section 422A.101, subdivision 3.  
  2.13     (4) For taxes payable in 1994 and thereafter, special 
  2.14  school district No. 1, Minneapolis, and independent school 
  2.15  district No. 625, St. Paul, may levy for the increase in the 
  2.16  employer retirement fund contributions, under Laws 1992, chapter 
  2.17  598, article 5, section 1.  Notwithstanding section 121.904, the 
  2.18  entire amount of this levy may be recognized as revenue for the 
  2.19  fiscal year in which the levy is certified.  This levy shall not 
  2.20  be considered in computing the aid reduction under section 
  2.21  124.155. 
  2.22     (5) If the employer retirement fund contributions under 
  2.23  section 354A.12, subdivision 2a, are increased for fiscal year 
  2.24  1994 or later fiscal years, special school district No. 1, 
  2.25  Minneapolis, and independent school district No. 625, St. Paul, 
  2.26  may levy in payable 1994 or later an amount equal to the amount 
  2.27  derived by applying the net increase in the employer retirement 
  2.28  fund contribution rate of the respective teacher retirement fund 
  2.29  association between fiscal year 1993 and the fiscal year 
  2.30  beginning in the year after the levy is certified to the total 
  2.31  covered payroll of the applicable teacher retirement fund 
  2.32  association.  Notwithstanding section 121.904, the entire amount 
  2.33  of this levy may be recognized as revenue for the fiscal year in 
  2.34  which the levy is certified.  This levy shall not be considered 
  2.35  in computing the aid reduction under section 124.155.  If an 
  2.36  applicable school district levies under this paragraph, they may 
  3.1   not levy under paragraph (4). 
  3.2      (6) In addition to the levy authorized under paragraph (5), 
  3.3   special school district No. 1, Minneapolis, may also levy 
  3.4   payable in 1996 or later an amount equal to the contributions 
  3.5   under section 354A.12, subdivision 2c, and may also levy in 
  3.6   payable 1994 or later an amount equal to the state aid 
  3.7   contribution under section 354A.12, subdivision 3b.  Independent 
  3.8   school district No. 625, St. Paul, may levy payable in 1996 or 
  3.9   later an amount equal to the supplemental contributions under 
  3.10  section 354A.12, subdivision 2d.  Notwithstanding section 
  3.11  121.904, the entire amount of this levy these levies may be 
  3.12  recognized as revenue for the fiscal year in which the levy is 
  3.13  certified.  This levy These levies shall not be considered in 
  3.14  computing the aid reduction under section 124.155. 
  3.15     Sec. 2.  Minnesota Statutes 1994, section 354A.12, 
  3.16  subdivision 2, is amended to read: 
  3.17     Subd. 2.  [RETIREMENT CONTRIBUTION LEVY DISALLOWED.] Except 
  3.18  as provided in subdivision subdivisions 2c and 3b, paragraph 
  3.19  (d), with respect to the city of Minneapolis and special school 
  3.20  district No. 1 and in subdivision 2d with respect to independent 
  3.21  school district No. 625, notwithstanding any law to the 
  3.22  contrary, levies for teachers retirement fund associations in 
  3.23  cities of the first class, including levies for any employer 
  3.24  social security taxes for teachers covered by the Duluth 
  3.25  teachers retirement fund association or the Minneapolis teachers 
  3.26  retirement fund association or the St. Paul teachers retirement 
  3.27  fund association, are disallowed. 
  3.28     Sec. 3.  Minnesota Statutes 1994, section 354A.12, is 
  3.29  amended by adding a subdivision to read: 
  3.30     Subd. 2c.  [SCHOOL DISTRICT SUPPLEMENTAL CONTRIBUTIONS TO 
  3.31  MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Beginning 
  3.32  in fiscal year 1997, and annually thereafter, special school 
  3.33  district No. 1 shall pay supplemental contributions in the 
  3.34  following amounts to the Minneapolis teachers retirement fund 
  3.35  association to reduce the unfunded actuarial accrued liability 
  3.36  of the Minneapolis teachers retirement fund association 
  4.1   according to the actuarial valuation of the fund prepared by the 
  4.2   commission-retained actuary pursuant to section 356.215: 
  4.3      (1) an amount equal to 70 percent of the difference between 
  4.4   the total 1995 financial requirements and the total current year 
  4.5   financial requirements of the Minneapolis employees retirement 
  4.6   fund payable by the city of Minneapolis pursuant to section 
  4.7   422A.101, subdivision 1a, provided that the number is negative.  
  4.8   The amount payable shall be determined according to the recent 
  4.9   valuation of the Minneapolis employees retirement fund prepared 
  4.10  by the pension commission actuary; 
  4.11     (2) an amount equal to 70 percent of the difference between 
  4.12  the total 1995 employer contributions and the total current year 
  4.13  employer contributions payable under section 422A.101, 
  4.14  subdivision 2, clause (c), on behalf of employees of special 
  4.15  school district No. 1 who are covered by the Minneapolis 
  4.16  employees retirement fund.  The amount payable shall be 
  4.17  determined according to the recent valuation of the Minneapolis 
  4.18  employees retirement fund prepared by the pension commission 
  4.19  actuary. 
  4.20     (b) Special school district No. 1 may levy for supplemental 
  4.21  contributions to the Minneapolis teachers retirement fund 
  4.22  association under this subdivision only to the extent permitted 
  4.23  under section 124.916, subdivision 3. 
  4.24     Sec. 4.  Minnesota Statutes 1994, section 354A.12, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 2d.  [SCHOOL DISTRICT SUPPLEMENTAL CONTRIBUTIONS TO 
  4.27  ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION.] (a) Beginning in 
  4.28  fiscal year 1997, and annually thereafter, independent school 
  4.29  district No. 625 shall pay a supplemental contribution to the 
  4.30  St. Paul teachers retirement fund association to reduce the 
  4.31  unfunded actuarial accrued liability of the St. Paul teachers 
  4.32  retirement fund association according to actuarial valuation of 
  4.33  the fund prepared by the commission-retained actuary under 
  4.34  section 356.215.  The supplemental contribution shall be an 
  4.35  amount equal to the state contribution to the St. Paul teachers 
  4.36  retirement fund association as specified by section 354A.12, 
  5.1   subdivision 3a, paragraph (c). 
  5.2      (b) Independent school district No. 625 may levy for 
  5.3   supplemental contributions to the St. Paul teachers retirement 
  5.4   fund association under this subdivision only to the extent 
  5.5   permitted under section 124.916, subdivision 3. 
  5.6      Sec. 5.  Minnesota Statutes 1994, section 354A.12, 
  5.7   subdivision 3a, is amended to read: 
  5.8      Subd. 3a.  [SPECIAL DIRECT STATE AID TO ST. PAUL TEACHERS 
  5.9   RETIREMENT FUND ASSOCIATION.] (a) The state shall pay to the St. 
  5.10  Paul teachers retirement fund association $500,000 in fiscal 
  5.11  year 1994.  In each subsequent fiscal year, the payment to the 
  5.12  St. Paul teachers retirement fund association must be increased 
  5.13  at the same rate as the increase in the general education 
  5.14  revenue formula allowance under section 124A.22, subdivision 2, 
  5.15  in subsequent fiscal years. 
  5.16     (b) The direct state aid is payable October 1 annually.  
  5.17  The commissioner of finance shall pay the direct state aid.  The 
  5.18  amount required under this subdivision paragraph (a) is 
  5.19  appropriated annually to the commissioner of finance. 
  5.20     (c) In addition to the direct state aid payable under 
  5.21  paragraph (a), the state shall pay to the St. Paul teachers 
  5.22  retirement fund association annually an amount equal to 30 
  5.23  percent of the difference of $11,005,000 and the actual state 
  5.24  contribution to the Minneapolis employees retirement fund under 
  5.25  sections 356.865 and 422A.101, subdivision 3, for the current 
  5.26  fiscal year.  Payments under this paragraph shall be made in 
  5.27  four equal installments, occurring annually on March 15, July 
  5.28  15, September 15, and November 15. 
  5.29     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  5.30  354A.12, subdivision 3b, is amended to read: 
  5.31     Subd. 3b.  [SPECIAL DIRECT STATE MATCHING AND STATE AID TO 
  5.32  THE MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.] (a) 
  5.33  Special school district No. 1 may make an additional employer 
  5.34  contribution to the Minneapolis teachers retirement fund 
  5.35  association.  The city of Minneapolis may make a contribution to 
  5.36  the Minneapolis teachers retirement fund association.  This 
  6.1   contribution may be made by a levy of the board of estimate and 
  6.2   taxation of the city of Minneapolis, and the levy, if made, is 
  6.3   classified as that of a special taxing district for purposes of 
  6.4   sections 275.065 and 276.04, and for all other property tax 
  6.5   purposes. 
  6.6      (b) For every $1,000 contributed in equal proportion by 
  6.7   special school district No. 1 and by the city of Minneapolis to 
  6.8   the Minneapolis teachers retirement fund association under 
  6.9   paragraph (a), the state shall pay to the Minneapolis teachers 
  6.10  retirement fund association $1,000, but not to exceed $2,500,000 
  6.11  in total in fiscal year 1994.  The total amount available for 
  6.12  each subsequent fiscal year must be increased at the same rate 
  6.13  as the increase in the general education revenue formula 
  6.14  allowance under section 124A.22, subdivision 2, in subsequent 
  6.15  fiscal years.  The superintendent of special school district No. 
  6.16  1, the mayor of the city of Minneapolis, and the executive 
  6.17  director of the Minneapolis teachers retirement fund association 
  6.18  shall jointly certify to the commissioner of finance the total 
  6.19  amount that has been contributed by special school district No. 
  6.20  1 and by the city of Minneapolis to the Minneapolis teachers 
  6.21  retirement fund association.  Any certification to the 
  6.22  commissioner of children, families, and learning must be made 
  6.23  quarterly.  If the total certifications for a fiscal year exceed 
  6.24  the maximum annual direct state matching aid amount in any 
  6.25  quarter, the amount of direct state matching aid payable to the 
  6.26  Minneapolis teachers retirement fund association must be limited 
  6.27  to the balance of the maximum annual direct state matching aid 
  6.28  amount available.  The amount required under this paragraph, 
  6.29  subject to the maximum direct state matching aid amount, is 
  6.30  appropriated annually to the commissioner of finance. 
  6.31     (c) The commissioner of finance may prescribe the form of 
  6.32  the certifications required under paragraph (b). 
  6.33     (d) In addition to the direct matching aid payable under 
  6.34  paragraph (b), the state shall pay direct state aid to the 
  6.35  Minneapolis teachers retirement fund association annually an 
  6.36  amount equal to 70 percent of the difference between $11,005,000 
  7.1   and the actual state contribution to the Minneapolis employees 
  7.2   retirement fund under sections 356.865 and 422A.101, subdivision 
  7.3   3, for the current fiscal year.  Payments under this paragraph 
  7.4   shall be made in four equal installments, occurring annually on 
  7.5   March 15, July 15, September 15, and November 15. 
  7.6      Sec. 7.  Minnesota Statutes 1994, section 354A.12, 
  7.7   subdivision 3c, is amended to read: 
  7.8      Subd. 3c.  [TERMINATION OF SUPPLEMENTAL CONTRIBUTIONS AND 
  7.9   DIRECT STATE MATCHING AND STATE AID.] (a) The supplemental 
  7.10  contributions payable to the Minneapolis teachers retirement 
  7.11  fund association by special school district No. 1 under 
  7.12  subdivisions 2c and 2d to the St. Paul teachers retirement fund 
  7.13  association by independent school district No. 625, the direct 
  7.14  state aid under subdivision 3a to the St. Paul teachers 
  7.15  retirement association, and the direct matching and state aid 
  7.16  under subdivision 3b to the Minneapolis teachers retirement fund 
  7.17  association terminates for the respective fund at the end of the 
  7.18  fiscal year in which the accrued liability funding ratio for 
  7.19  that fund, as determined in the most recent actuarial report for 
  7.20  that fund by the actuary retained by the legislative commission 
  7.21  on pensions and retirement, equals or exceeds the accrued 
  7.22  liability funding ratio for the teachers retirement association, 
  7.23  100 percent of the assets of the respective fund as determined 
  7.24  in the most recent actuarial report for the teachers retirement 
  7.25  association by the actuary retained by the legislative 
  7.26  commission on pensions and retirement. 
  7.27     (b) If the direct matching or state aid is terminated for 
  7.28  the St. Paul teachers retirement fund association or the 
  7.29  Minneapolis teachers retirement fund association under paragraph 
  7.30  (a), it may not again be received by that fund. 
  7.31     (c) If either the Minneapolis teachers retirement fund 
  7.32  association or the St. Paul teachers retirement fund association 
  7.33  remain underfunded when the provisions of paragraph (b) become 
  7.34  effective, then any state aid not distributed to the association 
  7.35  that is fully funded must be immediately transferred to the 
  7.36  association that remains underfunded. 
  8.1      Sec. 8.  [EFFECTIVE DATE.] 
  8.2      Sections 1 to 7 are effective the day following final 
  8.3   enactment and apply to aid payments beginning in calendar year 
  8.4   1996. 
  8.5