HF 3085

as introduced - 89th Legislature (2015 - 2016) Posted on 03/14/2016 03:57pm

A bill for an act
relating to retirement; St. Paul Teachers Retirement Fund Association; financial
solvency measures; increasing contribution rates; revising postretirement
adjustment provisions; amending Minnesota Statutes 2014, section 354A.12,
subdivision 2a; Minnesota Statutes 2015 Supplement, section 354A.29,
subdivision 7; repealing Minnesota Statutes 2015 Supplement, section 354A.29,
subdivisions 8, 9.

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

Section 1.

Minnesota Statutes 2014, section 354A.12, subdivision 2a, is amended to
read:

Subd. 2a.

Employer regular and additional contributions.

(a) The employing
units shall make the following employer contributions to the teachers retirement fund
association:

(1) for any coordinated member of the St. Paul Teachers Retirement Fund
Association, the employing unit shall make a regular employer contribution to the
retirement fund association in an amount equal to the designated percentage of the salary
of the coordinated member as provided below:

	after June 30, 2014	5.5 percent
	after June 30, 2015	6 percent
	after June 30, 2016	6.25 percent
	after June 30, 2017	deleted text begin 6.5 deleted text end new text begin 7.5 new text end percent
	new text begin after June 30, 2018 new text end	new text begin 8.0 percent new text end

(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount according to the schedule below:

	after June 30, 2014	9 percent of salary
	after June 30, 2015	9.5 percent of salary
	after June 30, 2016	9.75 percent of salary
	after June 30, 2017	deleted text begin 10 deleted text end new text begin 11 new text end percent of salary
	new text begin after June 30, 2018 new text end	new text begin 11.5 percent of salary new text end

(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;

(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
the employing unit shall make an additional employer contribution to the respective fund
in an amount equal to 3.84 percent of the coordinated member's salary.

(b) The regular and additional employer contributions must be remitted directly to
the St. Paul Teachers Retirement Fund Association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.

(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.

(d) When an employer contribution rate changes for a fiscal year, the new
contribution rate is effective for the entire salary paid by the employer with the first
payroll cycle reported.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 354A.29, subdivision 7, is
amended to read:

Subd. 7.

Eligibility for deleted text begin payment deleted text end new text begin and calculation new text end of postretirement adjustments.

(a) Annually, after June 30, the board of trustees of the St. Paul Teachers Retirement
Fund Association must determine the amount of any postretirement adjustment using the
procedures in this subdivision deleted text begin and subdivision 8 or 9, whichever is applicable deleted text end .

(b) On January 1, each person who has been receiving an annuity or benefit under
the articles of incorporation, the bylaws, or this chapter, whose effective date of benefit
commencement occurred on or before July 1 of the new text begin immediately preceding new text end calendar year
deleted text begin immediately before the adjustment deleted text end , is eligible to receive a postretirement increase deleted text begin as
specified in subdivision 8 or 9 deleted text end new text begin as determined under paragraph (c), clause (1) or (2),
whichever applies new text end .

new text begin (c) The amount provided for under this subdivision is the full postretirement increase
to be applied as a permanent increase to the regular payment of each eligible member.
new text end

new text begin (1) A one percent postretirement increase shall apply for any eligible member
whose effective date of benefit commencement occurred on or before January 1 of the
immediately preceding calendar year.
new text end

new text begin (2) A one-half of one percent postretirement increase shall apply for any eligible
member whose effective date of benefit commencement occurred after January 1 of the
immediately preceding calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2015 Supplement, section 354A.29, subdivisions 8 and 9, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end