HF 2597

as introduced - 88th Legislature (2013 - 2014) Posted on 03/03/2014 02:54pm

A bill for an act
relating to retirement; making technical changes to amortization state aid and
supplemental state aid; amending Minnesota Statutes 2013 Supplement, sections
423A.02, subdivision 3; 423A.022, subdivisions 2, 3.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3,
is amended to read:

Subd. 3.

Reallocation of amortization state aid.

(a) Seventy percent of the
difference between $5,720,000 and the current year amortization aid distributed under
subdivision 1 that is not distributed for any reason to a municipality must be distributed
by the commissioner of revenue according to this paragraph. The commissioner shall
distribute 50 percent of the amounts derived under this paragraph to the Teachers
Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
actuarial accrued liabilities of the respective funds. These payments must be made on July
15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
Teachers Retirement Fund Association becomes fully funded, the association's eligibility
for its portion of this aid ceases. Amounts remaining in the undistributed balance account
at the end of the biennium if aid eligibility ceases cancel to the general fund.

(b) In order to receive amortization aid under paragraph (a), before June 30 annually
Independent School District No. 625, St. Paul, must make an additional contribution of
$800,000 each year to the St. Paul Teachers Retirement Fund Association.

(c) Thirty percent of the difference between $5,720,000 and the current year
amortization aid under subdivision deleted text begin 1a deleted text end new text begin 1 new text end that is not distributed for any reason to a
municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as
additional funding to support a minimum fire state aid amount for volunteer firefighter
relief associations.

Sec. 2.

Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is
amended to read:

Subd. 2.

Allocation.

Of the total amount appropriated as supplemental state aid:

(1) deleted text begin 58.065 deleted text end new text begin 58.064 new text end percent must be paid to the executive director of the Public
Employees Retirement Association for deposit in the public employees police and fire
retirement fund established by section 353.65, subdivision 1;

(2) 35.484 percent must be paid to municipalities other than municipalities solely
employing firefighters with retirement coverage provided by the public employees police
and fire retirement plan which qualified to receive fire state aid in that calendar year,
allocated in proportion to the most recent amount of fire state aid paid under section
69.021, subdivision 7, for the municipality bears to the most recent total fire state aid
for all municipalities other than the municipalities solely employing firefighters with
retirement coverage provided by the public employees police and fire retirement plan
paid under section 69.021, subdivision 7, with the allocated amount for fire departments
participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
paid to the executive director of the Public Employees Retirement Association for deposit
in the fund established by section 353G.02, subdivision 3, and credited to the respective
account and with the balance paid to the treasurer of each municipality for transmittal
within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
association for deposit in its special fund; and

(3) 6.452 percent must be paid to the executive director of the Minnesota State
Retirement System for deposit in the state patrol retirement fund.

Sec. 3.

Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, is
amended to read:

Subd. 3.

Reporting deleted text begin ; definitions deleted text end .

deleted text begin (a) deleted text end On or before September 1, annually, the
executive director of the Public Employees Retirement Association shall report to the
commissioner of revenue the following:

(1) the municipalities which employ firefighters with retirement coverage by the
public employees police and fire retirement plan;

(2) the number of firefighters with public employees police and fire retirement plan
coverage employed by each municipality;

(3) the fire departments covered by the voluntary statewide lump-sum volunteer
firefighter retirement plan; and

(4) any other information requested by the commissioner to administer the police
and firefighter retirement supplemental state aid program.

deleted text begin (b) For this subdivision, (i) the number of firefighters employed by a municipality
who have public employees police and fire retirement plan coverage means the number
of firefighters with public employees police and fire retirement plan coverage that were
employed by the municipality for not less than 30 hours per week for a minimum of six
months prior to December 31 preceding the date of the payment under this section and, if
the person was employed for less than the full year, prorated to the number of full months
employed; and (ii) the number of active police officers certified for police state aid receipt
under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
police officers meeting the definition of peace officer in section 69.011, subdivision 1,
counted as provided and limited by section 69.011, subdivisions 2 and 2b.
deleted text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 1 and 2 are effective retroactively from July 1, 2013.
new text end

new text begin (b) Section 3 is effective the day following final enactment.
new text end