HF 2623

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; modifying provisions governing 
  1.3             refunds upon death with no survivor benefits for 
  1.4             certain groups; changing interest payments for certain 
  1.5             omitted salary deductions; revising language; 
  1.6             clarifying nonduty related disability due to mental 
  1.7             illness; modifying application provisions of the 
  1.8             teachers retirement act; modifying annuity accrual 
  1.9             date provisions for certain teachers; amending 
  1.10            Minnesota Statutes 1994, sections 3A.04, subdivision 
  1.11            4; 352.04, subdivision 8; 352.95, subdivision 2; 
  1.12            352B.10, subdivision 2; 352B.11, subdivision 1; 
  1.13            352C.09, by adding a subdivision; 354.44, subdivisions 
  1.14            3 and 4; and 490.124, by adding a subdivision. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1 
  1.17                         REFUNDS UPON DEATH
  1.18     Section 1.  Minnesota Statutes 1994, section 3A.04, 
  1.19  subdivision 4, is amended to read: 
  1.20     Subd. 4.  [DEATH REFUNDS TO ESTATE.] Upon the death of a 
  1.21  member of the legislature or former legislator who was not 
  1.22  receiving a retirement allowance, without either a surviving 
  1.23  spouse and without any or dependent children, regardless of when 
  1.24  the death occurred, the last designated beneficiary named on a 
  1.25  form filed with the director before the death of the legislator, 
  1.26  or if no designation is filed, the estate of the member or 
  1.27  former legislator, upon application of the representative of the 
  1.28  estate, shall be entitled to a refund of contributions of the 
  1.29  deceased member of the legislature or former legislator plus 
  1.30  interest as provided in section 3A.03, subdivision 2, clause (2).
  2.1      Sec. 2.  Minnesota Statutes 1994, section 352B.11, 
  2.2   subdivision 1, is amended to read: 
  2.3      Subdivision 1.  [REFUND OF PAYMENTS.] A member who has not 
  2.4   received other benefits under this chapter is entitled to a 
  2.5   refund of payments made by salary deduction, plus interest, if 
  2.6   the member is separated, either voluntarily or involuntarily, 
  2.7   from state service that entitled the member to membership.  In 
  2.8   the event of the member's death, if there are no survivor 
  2.9   benefits payable under this chapter, a refund is payable to the 
  2.10  last designated beneficiary on a form filed with the director 
  2.11  before death, or if no designation is filed, the refund is 
  2.12  payable to the member's estate is entitled to the refund.  
  2.13  Interest must be computed at the rate of six percent a year, 
  2.14  compounded annually.  To receive a refund, the member must apply 
  2.15  application must be made on a form prescribed by the executive 
  2.16  director. 
  2.17     Sec. 3.  Minnesota Statutes 1994, section 352C.09, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 3.  [DEATH REFUND.] If a constitutional officer who 
  2.20  has not received other benefits under this chapter dies and 
  2.21  there are no survivor benefits payable under this chapter, a 
  2.22  refund plus interest as provided in section 352C.09, subdivision 
  2.23  2, clause (1), is payable to the last designated beneficiary 
  2.24  named on a form filed with the director before the death of the 
  2.25  constitutional officer, or if no designation is on file, the 
  2.26  refund is payable to the estate of the deceased constitutional 
  2.27  officer. 
  2.28     Sec. 4.  Minnesota Statutes 1994, section 490.124, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subd. 13.  [DEATH REFUND.] If a judge who has not received 
  2.31  other benefits under this chapter dies and there are no survivor 
  2.32  benefits payable under this chapter, a refund plus interest as 
  2.33  provided in section 490.124, subdivision 12, is payable to the 
  2.34  last designated beneficiary named on a form filed with the 
  2.35  director before the death of the judge, or if no designation is 
  2.36  on file, the refund is payable to the estate of the deceased 
  3.1   judge. 
  3.2      Sec. 5.  [EFFECTIVE DATE.] 
  3.3      Sections 1 to 4 are effective July 1, 1996. 
  3.4                              ARTICLE 2
  3.5                  MINNESOTA STATE RETIREMENT SYSTEM 
  3.6      Section 1.  Minnesota Statutes 1994, section 352.04, 
  3.7   subdivision 8, is amended to read: 
  3.8      Subd. 8.  [DEPARTMENT REQUIRED TO PAY OMITTED SALARY 
  3.9   DEDUCTIONS.] (a) If a department fails to take deductions past 
  3.10  due for a period of 60 days or less from an employee's salary as 
  3.11  provided in this section, those deductions must be taken on 
  3.12  later payroll abstracts.  
  3.13     (b) If a department fails to take deductions past due for a 
  3.14  period in excess of 60 days from an employee's salary as 
  3.15  provided in this section, the department, and not the employee, 
  3.16  shall must pay on later payroll abstracts the employee and 
  3.17  employer contributions and an amount equivalent to 8.5 percent 
  3.18  of the total amount due in lieu of interest, or if the delay in 
  3.19  payment exceeds one year, 8.5 percent compound annual interest.  
  3.20     (c) If a department fails to take deductions past due for a 
  3.21  period of 60 days or less and the employee is no longer in state 
  3.22  service so that the required deductions cannot be taken from the 
  3.23  salary of the employee, the department shall must nevertheless 
  3.24  pay the required employer contributions.  If any department 
  3.25  fails to take deductions past due for a period in excess of 60 
  3.26  days and the employee is no longer in state service, the omitted 
  3.27  contributions shall must be recovered under paragraph (b).  
  3.28     (d) If an employee from whose salary required deductions 
  3.29  were past due for a period of 60 days or less leaves state 
  3.30  service before the payment of the omitted deductions and 
  3.31  subsequently returns to state service, the unpaid amount is 
  3.32  considered the equivalent of a refund.  The employee accrues no 
  3.33  right by reason of the unpaid amount, except that the employee 
  3.34  may pay the amount of omitted deductions as provided in section 
  3.35  352.23. 
  3.36     Sec. 2.  Minnesota Statutes 1994, section 352.95, 
  4.1   subdivision 2, is amended to read: 
  4.2      Subd. 2.  [NON-JOB-RELATED DISABILITY.] Any covered 
  4.3   correctional employee who, after at least one year of covered 
  4.4   correctional service, becomes disabled and physically or 
  4.5   mentally unfit to perform the duties of the position because of 
  4.6   sickness or injury occurring while not engaged in covered 
  4.7   employment, is entitled to a disability benefit based on covered 
  4.8   correctional service only.  The disability benefit must be 
  4.9   computed as provided in section 352.93, subdivisions 1 and 2, 
  4.10  and computed as though the employee had at least 15 years of 
  4.11  covered correctional service. 
  4.12     Sec. 3.  Minnesota Statutes 1994, section 352B.10, 
  4.13  subdivision 2, is amended to read: 
  4.14     Subd. 2.  [DISABLED WHILE NOT ON DUTY.] If a member 
  4.15  terminates employment after at least one year of service because 
  4.16  of sickness or injury occurring while not on duty and not 
  4.17  engaged in state work entitling the member to membership, and 
  4.18  the termination is necessary because the member cannot perform 
  4.19  duties, the member is entitled to receive a disability 
  4.20  benefit member becomes disabled and physically or mentally unfit 
  4.21  to perform the duties of the position because of sickness or 
  4.22  injury occurring while not engaged in covered employment, the 
  4.23  member is entitled to disability benefits.  The benefit must be 
  4.24  in the same amount and computed in the same way as if the member 
  4.25  were 55 years old at the date of disability and the annuity were 
  4.26  paid under section 352B.08.  If disability under this clause 
  4.27  occurs after one but before 15 years service, the disability 
  4.28  benefit must be computed as though the member had 15 years 
  4.29  service. 
  4.30     Sec. 4.  [EFFECTIVE DATE.] 
  4.31     Sections 1 to 3 are effective July 1, 1996. 
  4.32                             ARTICLE 3 
  4.33                  TEACHERS RETIREMENT ASSOCIATION 
  4.34     Section 1.  Minnesota Statutes 1994, section 354.44, 
  4.35  subdivision 3, is amended to read: 
  4.36     Subd. 3.  [APPLICATION FOR RETIREMENT.] Application for 
  5.1   retirement must be made by A member may make application for 
  5.2   retirement provided the age and service requirements under 
  5.3   subdivision 1 are satisfied on or before the member's retirement 
  5.4   annuity accrual date under subdivision 4.  The member or by 
  5.5   someone a person authorized to act in the member's behalf on 
  5.6   behalf of the member may make application up to 120 days before 
  5.7   the termination of teaching service.  Application must be made 
  5.8   on a form prescribed by the executive director and is not 
  5.9   complete until all necessary supporting documents are received 
  5.10  by the executive director. 
  5.11     Sec. 2.  Minnesota Statutes 1994, section 354.44, 
  5.12  subdivision 4, is amended to read: 
  5.13     Subd. 4.  [TIME AND MANNER OF PAYMENTS RETIREMENT ANNUITY 
  5.14  ACCRUAL DATE.] A member may make application to the board for a 
  5.15  retirement annuity any time after the member has satisfied the 
  5.16  age and service requirements of this chapter for retirement 
  5.17  except that an application for retirement must not be made more 
  5.18  than 60 days before termination of teaching service.  The An 
  5.19  annuity payment begins to accrue after the termination of 
  5.20  teaching service, or after the application for retirement has 
  5.21  been filed with the board, whichever is later, as follows on the 
  5.22  latest of: 
  5.23     (a) on the 16th day of the month of termination or filing 
  5.24  if the termination or filing occurs on or before the 15th day of 
  5.25  the month,; 
  5.26     (b) on the first day of the month following the month of 
  5.27  termination or filing if the termination or filing occurs on or 
  5.28  after the 16th day of the month, or; 
  5.29     (c) on July 1 for all school principals and other 
  5.30  administrators who receive a full annual contract salary during 
  5.31  the fiscal year for performance of a full year's contract 
  5.32  duties; or 
  5.33     (d) a later date to be the first or 16th day of a month 
  5.34  within the six-month period immediately following the 
  5.35  termination of teaching service as specified by the member. 
  5.36     If an application for retirement is filed with the board 
  6.1   during the six-month period immediately following the 
  6.2   termination of teaching service, the annuity may begin to accrue 
  6.3   as if the application for retirement had been filed with the 
  6.4   board on the date teaching service terminated or a later date 
  6.5   occurring within the six-month period as specified by the member 
  6.6   under clause (d).  An annuity must not begin to accrue more than 
  6.7   one month before the date of final salary receipt. 
  6.8      Sec. 3.  [EFFECTIVE DATE.] 
  6.9      Sections 1 and 2 are effective the day following final 
  6.10  enactment.