1.1 CONFERENCE COMMITTEE REPORT ON H.F. NO. 3127
1.2 A bill for an act
1.3 relating to retirement; various retirement plans;
1.4 clarifying the laws applicable to the remaining local
1.5 police and paid firefighter pension plans; repealing
1.6 obsolete local police and paid firefighter pension
1.7 plan laws; authorizing service credit purchase for
1.8 certain strike periods; providing public employee
1.9 pension coverage for certain foreign citizens;
1.10 clarifying membership eligibility and allowable
1.11 service credit for the public employees retirement
1.12 association; requiring membership for charter school
1.13 teachers in the teachers retirement association;
1.14 providing for the payment of unpaid closed charter
1.15 school retirement contributions from charter school
1.16 lease aid; eliminating contribution rate increases in
1.17 the local government correctional service retirement
1.18 plan; establishing provisions relating to employees of
1.19 the Kanabec hospital if the hospital is privatized;
1.20 extending the expiration date for certain prior
1.21 service credit purchase authorizations; recodifying
1.22 social security coverage provisions; implementing
1.23 recommended changes in salary actuarial assumptions;
1.24 clarifying the restrictions on supplemental and local
1.25 pension plans for plans funded from accumulated sick
1.26 and vacation leave; reorganizing the revising various
1.27 general retirement provisions; instructing the revisor
1.28 of statutes; authorizing the commissioner of
1.29 administration to lease pension fund facilities to
1.30 deferred compensation service providers; authorizing
1.31 certain volunteer firefighters to receive service
1.32 pensions or disability benefits without terminating
1.33 active service; creating the coordinated program of
1.34 the legislators retirement plan; providing a second
1.35 social security referendum for legislators; modifying
1.36 Minneapolis police optional annuity provision;
1.37 modifying voluntary unpaid leave of absence provision
1.38 for state employees; providing for an extension of the
1.39 rule of 90 benefit tier for the teachers retirement
1.40 association and the Duluth teachers retirement fund
1.41 association; changing the effective date for certain
1.42 modifications to the judges retirement plan; amending
1.43 Minnesota Statutes 2000, sections 69.77; 69.80;
1.44 353.01, by adding a subdivision; 353.64, subdivision
1.45 7a; 353A.08, subdivision 6a; 353E.02, subdivision 1,
2.1 by adding a subdivision; 353E.03; 353F.02, subdivision
2.2 4; 354.05, subdivision 38; 354.44, subdivision 6;
2.3 354A.011, subdivisions 15A, 27; 354A.31, subdivisions
2.4 4a, 5, 6, 7; 355.01, subdivisions 1, 3, 6, 8, by
2.5 adding subdivisions; 355.02; 355.03; 355.05; 355.07;
2.6 355.08; 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a;
2.7 356.215, as amended; 356.216; 356.217; 356.219;
2.8 356.22; 356.23; 356.24, subdivisions 1b, 1c, 2;
2.9 356.245; 356.25; 356.30; 356.302; 356.303; 356.32;
2.10 356.40; 356.41; 356.50; 356.55, as amended; 356.551;
2.11 356.611; 356.65, subdivision 2; 356.87; 356.89,
2.12 subdivision 3; 423A.17; 423A.171; 423B.09, subdivision
2.13 6; 424A.02, subdivision 1; 424A.09; Minnesota Statutes
2.14 2001 Supplement, sections 352.01, subdivision 11;
2.15 353.01, subdivisions 2a, 2b, 11b, 16; 353.27,
2.16 subdivisions 4, 11; 354.05, subdivisions 2, 13;
2.17 356.24, subdivision 1; 356.555; 356.62; 356.65,
2.18 subdivision 1; Laws 1997, chapter 202, article 2,
2.19 section 61, as amended; Laws 1999, chapter 222,
2.20 article 16, section 16; Laws 2000, chapter 461,
2.21 article 10, section 3, as amended; Laws 2000, chapter
2.22 461, article 12, section 20; Laws 2000, chapter 461,
2.23 article 18, section 10; Laws 2001, First Special
2.24 Session chapter 10, article 6, section 21; proposing
2.25 coding for new law in Minnesota Statutes, chapters 3A;
2.26 355; 356; proposing coding for new law as Minnesota
2.27 Statutes, chapter 356B; repealing Minnesota Statutes
2.28 2000, sections 69.25; 69.26; 69.27; 69.28; 69.29;
2.29 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40;
2.30 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47;
2.31 69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62;
2.32 69.78; 297I.10, subdivision 2; 355.01, subdivisions 2,
2.33 4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15;
2.34 355.16; 355.17; 355.201; 355.202; 355.203; 355.204;
2.35 355.205; 355.206; 355.207; 355.208; 355.209; 355.21;
2.36 355.22; 355.23; 355.24; 355.25; 355.26; 355.27;
2.37 355.28; 355.281; 355.282; 355.283; 355.284; 355.285;
2.38 355.286; 355.287; 355.288; 355.29; 355.291; 355.292;
2.39 355.293; 355.294; 355.295; 355.296; 355.297; 355.298;
2.40 355.299; 355.30; 355.311; 355.391; 355.392; 355.393;
2.41 355.41; 355.42; 355.43; 355.44; 355.45; 355.46;
2.42 355.48; 355.49; 355.50; 355.51; 355.52; 355.54;
2.43 355.55; 355.56; 355.57; 355.58; 355.59; 355.60;
2.44 355.61; 355.621; 355.622; 355.623; 355.624; 355.625;
2.45 355.626; 355.627; 355.628; 355.71; 355.72; 355.73;
2.46 355.74; 355.75; 355.76; 355.77; 355.78; 355.79;
2.47 355.80; 355.81; 355.90; 356.19; 356.305; 356.306;
2.48 356.31; 356.325; 356.35; 356.36; 356.37; 356.371,
2.49 subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45;
2.50 356.451; 356.452; 356.453; 356.454; 356.455; 356.615;
2.51 356.71; 356.80; 356.81; 356.86; 356.865; 356.88;
2.52 356.89; 423.37; 423.371; 423.372; 423.373; 423.374;
2.53 423.375; 423.377; 423.378; 423.379; 423.38; 423.381;
2.54 423.382; 423.383; 423.384; 423.385; 423.386; 423.387;
2.55 423.388; 423.389; 423.39; 423.391; 423.392; 423.801;
2.56 423.802; 423.803; 423.804; 423.805; 423.806; 423.808;
2.57 423.809; 423.810; 423.812; 423.813; 423.814; 423.90;
2.58 423A.03; 424.01; 424.02; 424.03; 424.04; 424.05;
2.59 424.06; 424.08; 424.14; 424.15; 424.16; 424.165;
2.60 424.17; 424.18; 424.19; 424.20; 424.21; 424.22;
2.61 424.23; 424.24; 424.25; 424.27; 424.28; 424.29;
2.62 Minnesota Statutes 2001 Supplement, sections 353.01,
2.63 subdivision 39; 356.371, subdivision 1; 356.866;
2.64 Special Session Laws 1889, chapter 425; Special
2.65 Session Laws 1891, chapter 11; Laws 1897, chapters
2.66 389; 390; Laws 1915, chapter 68; Laws 1917, chapter
2.67 196; Laws 1919, chapters 68, 515; Laws 1921, chapter
2.68 118; Laws 1923, chapter 54; Laws 1925, chapter 197;
2.69 Laws 1931, chapter 48; Laws 1933, chapter 122; Laws
2.70 1935, chapters 92; 192; 208; 259; Laws 1937, chapters
2.71 132; 197; 253; Laws 1939, chapters 124; 304; Laws
3.1 1941, chapters 74; 182; 196; Laws 1943, chapters 170;
3.2 267; 397; 413; 432; Laws 1945, chapters 74; 182; 277;
3.3 300; Laws 1947, chapters 40; 43; 101; 274; 329; Laws
3.4 1949, chapters 87; 144; 153; 154; 164; 191; 235; 281;
3.5 378; Laws 1951, chapters 43; 45; 48; 144; 233; 243;
3.6 420; 435; 499; Laws 1953, chapters 37; 44; 91; 235;
3.7 253; 348; 391; 401; 406; Laws 1955, chapters 42; 49;
3.8 75; 151; 187; 188; 293; 294; 348; 375; 827; Laws 1957,
3.9 chapters 10; 16; 36; 127; 144; 164; 256; 257; 455;
3.10 630; 793; Laws 1959, chapters 108; 131; 191; 207; 208;
3.11 211; 437; Laws 1961, chapters 186; 290; 295; 300; 343;
3.12 376; 399; 434; 435, section 2; 443; 620; 631; 747;
3.13 Extra Session Laws 1961, chapters 28; 80; Laws 1963,
3.14 chapters 36; 208; 221; 271; 443; 453; 454; 464; 619;
3.15 636; 643; 670; 715; Laws 1965, chapters 174; 179; 190;
3.16 418; 457; 458; 465; 498; 536; 540; 594; 604; 605; 636;
3.17 790; Laws 1967, chapters 644; 678; 702; 708; 730; 732;
3.18 736; 751; 775; 783; 798; 807; 816; 848; Laws 1969,
3.19 chapters 138; 442; 443; 552; 576; 594; 614; 641; 668;
3.20 669; 670; 671; 672; 686; 694; 716; 849; 1087; Laws
3.21 1971, chapters 51; 178; 407; 549; 614; 807; 809; 810;
3.22 Extra Session Laws 1971, chapter 41; Laws 1973,
3.23 chapters 286; 287; 346; 359; 432; 433; 587; Laws 1974,
3.24 chapters 251; 382; Laws 1975, chapters 120; 121; 127;
3.25 254, sections 1, 2, 3, 4, 5, 6; 368, section 54; 389;
3.26 408; 423; 424; 425; Laws 1976, chapters 36; 78; 85;
3.27 99; 247; Laws 1977, chapters 83; 164, sections 1, 3;
3.28 169; 270; 275; 374, sections 1, 2, 3, 4, 5, 6, 7, 8,
3.29 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,
3.30 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35,
3.31 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48,
3.32 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60; 429,
3.33 section 62; Laws 1978, chapters 563, sections 12, 13,
3.34 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27,
3.35 28, 29, 30; 579; 648; 690, sections 9, 10; 793,
3.36 section 96; Laws 1979, chapters 131, section 3; 216,
3.37 sections 27, 28, 29, 30, 31, 34, 35, 36, 37, 38, 39,
3.38 40, 41, 42, 43, 44; Laws 1980, chapters 341, sections
3.39 2, 3, 4, 5, 6, 9, 10; 600, sections 11, 12, 13, 14,
3.40 15, 16, 17, 18, 22; 607, article XV, section 23; Laws
3.41 1981, chapter 68, sections 31, 32, 33, 34, 35, 36, 37,
3.42 41, 42, 43; Laws 1981, chapter 224, sections 236, 237,
3.43 239, 240, 243, 244, 247, 248, 252, 253, 258, 259, 260,
3.44 261, 263, 264, 265, 266, 267, 268, 270, 272, 273; Laws
3.45 1981, chapter 297, sections 1, 2; Laws 1982, chapters
3.46 402; 443; 574, sections 3, 4, 5, 6, 8; 578, article
3.47 II, section 1, subdivision 8, article III, section 18;
3.48 610, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17,
3.49 18, 19, 20; Laws 1983, chapters 47; 74; 84, section 1;
3.50 291, sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17;
3.51 Laws 1984, chapter 574, sections 18, 19, 20, 22, 23,
3.52 24, 25, 26, 33; Laws 1985, chapters 259, sections 5,
3.53 6; 261, sections 14, 15, 16, 18, 20, 32, 33, 34, 35,
3.54 36; Laws 1985, First Special Session chapter 16,
3.55 article 2, section 6; Laws 1986, chapters 359,
3.56 sections 22, 23, 24, 25; 458, sections 23, 34; Laws
3.57 1987, chapter 372, article 2, sections 7, 8, 9, 10,
3.58 12; Laws 1988, chapter 709, articles 8, section 5; 9,
3.59 section 5; Laws 1989, chapter 319, article 11,
3.60 sections 2, 3, 4, 12; Laws 1990, chapter 589, article
3.61 1, section 7; Laws 1991, chapters 96; 269, article 2,
3.62 sections 12, 13; Laws 1992, chapters 392, section 1;
3.63 393, section 1; 422; 431, section 1; 448; 455; 563,
3.64 sections 3, 4, 5; 586, section 1; Laws 1993, chapters
3.65 72; 110; 112, section 2; 126; 202, article 1; Laws
3.66 1994, chapters 409; 410; 474; 490; 541, section 3;
3.67 Laws 1995, chapter 262, article 10, section 4; Laws
3.68 1996, chapter 448, article 2, section 1; Laws 1997,
3.69 chapter 233, article 1, section 58; Laws 1997, chapter
3.70 241, article 2, sections 2, 3, 4, 5, 6, 9, 10, 11, 13,
3.71 14, 15, 20; Laws 1999, chapter 222, article 3, section
4.1 6; Laws 2000, chapter 461, article 10, section 2.
4.2 May 17, 2002
4.3 The Honorable Steve Sviggum
4.4 Speaker of the House of Representatives
4.6 The Honorable Don Samuelson
4.7 President of the Senate
4.9 We, the undersigned conferees for H.F. No. 3127, report
4.10 that we have agreed upon the items in dispute and recommend as
4.11 follows:
4.12
4.13 That the Senate recede from its amendments and that H.F. No.
4.14 3127 be further amended as follows:
4.15 Delete everything after the enacting clause and insert:
4.16 "ARTICLE 1
4.17 LOCAL POLICE AND PAID
4.18 FIRE RELIEF ASSOCIATION
4.19 GOVERNING LAW CLARIFICATION
4.20 Section 1. Minnesota Statutes 2000, section 69.77, is
4.21 amended to read:
4.22 69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION
4.23 GUIDELINES ACT.]
4.24 Subdivision 1. [AUTHORIZED CONDITIONED EMPLOYER SUPPORT
4.25 FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the
4.26 contrary, only if the municipality and the relief association
4.27 comply with the provisions of this section, a municipality may
4.28 contribute public funds, including any applicable police or fire
4.29 state aid, or levy property taxes for the support of a police or
4.30 firefighters' relief association, enumerated in subdivision 1a,
4.31 however organized, which provides retirement coverage or pays a
4.32 service pension to a retired police officer or firefighter or a
4.33 retirement benefit to a surviving dependent of either an active
4.34 or retired police officer or firefighter, for the operation and
4.35 maintenance of the relief association only if the municipality
4.36 and the relief association comply with the provisions of this
4.37 section.
4.38 (b) The commissioner shall not include in the apportionment
4.39 of police or fire state aid to the county auditor pursuant to
5.1 under section 69.021, subdivision 6, any municipality in which
5.2 there exists a local police or salaried firefighters' relief
5.3 association as enumerated in subdivision 1a which does not
5.4 comply with the provisions of this section or the provisions of
5.5 any applicable special law relating to the funding or financing
5.6 of the association and that municipality shall may not qualify
5.7 initially to receive, or be entitled subsequently to retain,
5.8 state aid pursuant to under sections 69.011 to 69.051 until the
5.9 reason for the disqualification is remedied, whereupon the
5.10 municipality, if otherwise qualified, shall be is entitled to
5.11 again receive state aid for the year occurring immediately
5.12 subsequent to the year in which the disqualification is remedied.
5.13 (c) The state auditor and the commissioner shall determine
5.14 if a municipality with a local police or salaried firefighters'
5.15 relief association fails to comply with the provisions of this
5.16 section or the funding or financing provisions of any applicable
5.17 special law.
5.18 Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of
5.19 this section shall apply to the following local retirement funds
5.20 plans:
5.21 (1) any police pension fund or relief association which is
5.22 established pursuant to chapter 423 the Bloomington firefighters
5.23 relief association;
5.24 (2) any salaried firefighters' pension fund or relief
5.25 association which is established pursuant to chapter 424 the
5.26 Fairmont police relief association;
5.27 (3) any pension fund or relief association which is
5.28 established pursuant to this chapter which has five or more
5.29 members who receive compensation for services rendered in the
5.30 employment covered by the pension fund or relief association and
5.31 which provides for retirement coverage or a service pension
5.32 based on the compensation paid to members for that service the
5.33 Minneapolis firefighters relief association;
5.34 (4) any pension fund or relief association which is
5.35 established and operates in whole or in part pursuant to special
5.36 legislation and which provides for retirement coverage or a
6.1 service pension based on the compensation paid to members for
6.2 service as police officers or firefighters or which provides for
6.3 retirement coverage or a service pension to volunteer
6.4 firefighters based on the compensation paid to or the service
6.5 pension provided by a pension fund or relief association located
6.6 in the same municipality for police officers employed by the
6.7 municipality but not covered by clause (1), (2) or (3) the
6.8 Minneapolis police relief association; and
6.9 (5) any governmental subdivision retirement fund
6.10 established pursuant to any law providing for retirement
6.11 coverage to police officers or salaried firefighters or a
6.12 retirement benefit to their dependents and not otherwise
6.13 described in this subdivision the Virginia fire department
6.14 relief association.
6.15 Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for
6.16 in subdivision 1 shall does not apply to a relief association
6.17 enumerated in subdivision 1a if the requirements of subdivisions
6.18 2a 3 to 2h 10 are met.
6.19 Subd. 2a 3. [MINIMUM MEMBER CONTRIBUTION.] Each active
6.20 member of the relief association shall must pay into the special
6.21 fund of the association during a year of covered service, a
6.22 contribution for retirement coverage, including survivorship
6.23 benefits, of not less than eight percent of the maximum rate of
6.24 salary upon which retirement coverage is credited and service
6.25 pension and retirement benefit amounts are determined. The
6.26 member contributions shall must be made by payroll deduction
6.27 from the salary of the member by the municipality, and
6.28 shall must be transmitted by the municipality to the relief
6.29 association as soon as practical. The relief association shall
6.30 deposit the member contribution to the credit of the special
6.31 fund of the relief association. The member contribution
6.32 requirement specified in this subdivision shall does not apply
6.33 to any members who are volunteer firefighters.
6.34 Subd. 2b 4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS;
6.35 MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief
6.36 association shall determine the financial requirements of the
7.1 relief association and minimum obligation of the municipality
7.2 for the following calendar year in accordance with the
7.3 requirements of this subdivision. The financial requirements of
7.4 the relief association and the minimum obligation of the
7.5 municipality shall must be determined on or before the
7.6 submission date established by the municipality pursuant to
7.7 under subdivision 2c 5.
7.8 (b) The financial requirements of the relief association
7.9 for the following calendar year shall must be based on the most
7.10 recent actuarial valuation or survey of the special fund of the
7.11 association if more than one fund is maintained by the
7.12 association, or of the association, if only one fund is
7.13 maintained, prepared in accordance with sections 356.215,
7.14 subdivisions 4 to 4k and 356.216, as required pursuant to under
7.15 subdivision 2h 10. If an actuarial estimate is prepared by the
7.16 actuary of the relief association as part of obtaining a
7.17 modification of the benefit plan of the relief association and
7.18 the modification is implemented, the actuarial estimate shall
7.19 must be used in calculating the subsequent financial
7.20 requirements of the relief association.
7.21 (c) If the relief association has an unfunded actuarial
7.22 accrued liability as reported in the most recent actuarial
7.23 valuation or survey, the total of the amounts
7.24 calculated pursuant to under clauses (a), (b), and (c)
7.25 shall (1), (2), and (3) constitute the financial requirements of
7.26 the relief association for the following year. If the relief
7.27 association does not have an unfunded actuarial accrued
7.28 liability as reported in the most recent actuarial valuation or
7.29 survey, the amount calculated pursuant to under clauses (a) and
7.30 (b) shall (1) and (2) constitute the financial requirements of
7.31 the relief association for the following year. The financial
7.32 requirement elements are:
7.33 (a) (1) the normal level cost requirement for the following
7.34 year, expressed as a dollar amount, which shall must be
7.35 determined by applying the normal level cost of the relief
7.36 association as reported in the actuarial valuation or survey and
8.1 expressed as a percentage of covered payroll to the estimated
8.2 covered payroll of the active membership of the relief
8.3 association, including any projected increase change in the
8.4 active membership, for the following year.;
8.5 (b) (2) for the Bloomington fire department relief
8.6 association, the Fairmont police relief association, and the
8.7 Virginia fire department relief association, to the dollar
8.8 amount of normal cost thus determined shall under clause (1)
8.9 must be added an amount equal to the dollar amount of the
8.10 administrative expenses of the special fund of the association
8.11 if more than one fund is maintained by the association, or of
8.12 the association if only one fund is maintained, for the most
8.13 recent year, multiplied by the factor of 1.035. For a relief
8.14 association in a municipality, The administrative expenses are
8.15 those authorized under section 69.80. No amount of
8.16 administrative expenses under this clause shall are to be
8.17 included in the financial requirements of a the Minneapolis
8.18 firefighters relief association in a city of the first class
8.19 with a population of more than 300,000. or the Minneapolis
8.20 police relief association; and
8.21 (c) (3) to the dollar amount of normal cost and expenses
8.22 determined under clauses (a) and (b) shall (1) and (2) must be
8.23 added an amount equal to the level annual dollar amount which is
8.24 sufficient to amortize the unfunded actuarial accrued liability
8.25 by December 31, 2010, as determined from the actuarial valuation
8.26 or survey of the fund, using an interest assumption set at the
8.27 applicable rate specified in section 356.215, subdivision 4d.
8.28 The amortization date specified in this clause shall apply
8.29 applies to all local police or salaried firefighters' relief
8.30 associations and shall supersede that date supersedes any
8.31 amortization date specified in any applicable special law.
8.32 (d) The minimum obligation of the municipality shall be is
8.33 an amount equal to the financial requirements of the relief
8.34 association reduced by the estimated amount of member
8.35 contributions from covered salary anticipated for the following
8.36 calendar year and the estimated amounts anticipated for the
9.1 following calendar year from the applicable state aid program
9.2 established pursuant to under sections 69.011 to 69.051
9.3 receivable by the relief association after any allocation
9.4 made pursuant to under section 69.031, subdivision 5, clause
9.5 (2), subclause (c) paragraph (b), clause (2), or 423A.01,
9.6 subdivision 2, clause (6), from the local police and salaried
9.7 firefighters' relief association amortization aid program
9.8 established pursuant to under section 423A.02 and, subdivision
9.9 1, from the supplementary amortization state-aid program
9.10 established under Laws 1984, chapter 564, section 48, and Laws
9.11 1985, chapter 261, section 17 section 423A.02, subdivision 1a,
9.12 and from the additional amortization state aid under section
9.13 423A.02, subdivision 1b.
9.14 Subd. 2c 5. [DETERMINATION SUBMISSION.] The officers of
9.15 the relief association shall submit the determination of the
9.16 financial requirements of the relief association and of the
9.17 minimum obligation of the municipality to the governing body on
9.18 or before the date established by the municipality, which shall
9.19 may not be earlier than August 1 and shall may not be later than
9.20 September 1 of each year. The governing body of the
9.21 municipality shall must ascertain whether or not the
9.22 determinations were prepared in accordance with law.
9.23 Subd. 2d 6. [MUNICIPAL PAYMENT.] (a) The municipality
9.24 shall provide for and shall pay, each year, at least the amount
9.25 of the minimum obligation of the municipality to the relief
9.26 association.
9.27 (b) If there is any deficiency in the municipal payment to
9.28 meet the minimum obligation of the municipality as of the end of
9.29 any calendar year, the amount of the deficiency shall must be
9.30 added to the minimum obligation of the municipality for the
9.31 following year calculated pursuant to under subdivision 2b 4 and
9.32 shall must include interest at the compound rate of six percent
9.33 per annum compounded from the date that the municipality was
9.34 required to make payment pursuant to under this subdivision
9.35 until the date that the municipality actually makes the required
9.36 payment.
10.1 Subd. 2e 7. [BUDGET INCLUSION.] (a) The municipality shall
10.2 provide in the annual municipal budget for at least the minimum
10.3 obligation of the municipality calculated pursuant to under
10.4 subdivision 2b 4.
10.5 (b) The municipality may levy taxes for the payment of the
10.6 minimum obligation of the municipality without any limitation as
10.7 to rate or amount and irrespective of limitations imposed by
10.8 other provisions of law upon the rate or amount of taxation when
10.9 the balance of the special fund or any fund of the relief
10.10 association has attained a specified minimum asset level. In
10.11 addition, any taxes levied pursuant to under this section shall
10.12 may not cause the amount or rate of other taxes levied in that
10.13 year or to be levied in a subsequent year by the municipality
10.14 which are subject to a limitation as to rate or amount to be
10.15 reduced.
10.16 (c) If the municipality does not include the full amount of
10.17 the minimum obligation of the municipality in the levy that the
10.18 municipality certified to the county auditor in any year, the
10.19 officers of the relief association shall certify the amount of
10.20 any deficiency to the county auditor. Upon verifying the
10.21 existence of any deficiency in the levy certified by the
10.22 municipality, the county auditor shall spread a levy over the
10.23 taxable property of the municipality in the amount of the
10.24 deficiency certified to by the officers of the relief
10.25 association.
10.26 Subd. 2f 8. [ACCELERATED AMORTIZATION.] Any sums of money
10.27 paid by the municipality to the relief association in excess of
10.28 the minimum obligation of the municipality in any year shall
10.29 must be used to amortize any unfunded actuarial accrued
10.30 liabilities of the relief association.
10.31 Subd. 2g 9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION
10.32 INVESTMENT AUTHORITY.] (a) The funds of the association must be
10.33 invested in securities that are authorized investments under
10.34 section 356A.06, subdivision 6 or 7, whichever
10.35 applies. Notwithstanding the foregoing, Up to 75 percent of the
10.36 market value of the assets of the fund may be invested in
11.1 open-end investment companies registered under the federal
11.2 Investment Company Act of 1940, if the portfolio investments of
11.3 the investment companies comply with the type of securities
11.4 authorized for investment under section 356A.06, subdivision 7.
11.5 Securities held by the association before June 2, 1989, that do
11.6 not meet the requirements of this subdivision may be retained
11.7 after that date if they were proper investments for the
11.8 association on that date.
11.9 (b) The governing board of the association may select and
11.10 appoint investment agencies to act for and in its behalf or may
11.11 certify special fund assets for investment by the state board of
11.12 investment under section 11A.17. The governing board of the
11.13 association may certify general fund assets of the relief
11.14 association for investment by the state board of investment in
11.15 fixed income pools or in a separately managed account at the
11.16 discretion of the state board of investment as provided in
11.17 section 11A.14. The governing board of the association may
11.18 select and appoint a qualified private firm to measure
11.19 management performance and return on investment, and the firm
11.20 shall use the formula or formulas developed by the state board
11.21 under section 11A.04, clause (11).
11.22 Subd. 2h 10. [ACTUARIAL VALUATION REQUIRED.] The
11.23 association shall obtain an actuarial valuation showing the
11.24 condition of the special fund of the relief association pursuant
11.25 to under sections 356.215 and 356.216 and any applicable
11.26 standards for actuarial work established by the legislative
11.27 commission on pensions and retirement. The actuarial valuation
11.28 must be made as of December 31 of every year. A copy of the
11.29 actuarial valuation shall must be filed with the director of the
11.30 legislative reference library, the governing body of the
11.31 municipality in which the association is organized, the
11.32 executive director of the legislative commission on pensions and
11.33 retirement, and the state auditor, not later than July 1 of the
11.34 following year.
11.35 Subd. 2i 11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES
11.36 REQUIRED.] Any amendment to the bylaws or articles of
12.1 incorporation of a relief association which increases or
12.2 otherwise affects the retirement coverage provided by or the
12.3 service pensions or retirement benefits payable from any police
12.4 or firefighters' relief association enumerated in subdivision 1a
12.5 shall is not be effective until it is ratified by the
12.6 municipality in which the relief association is located. The
12.7 officers of the relief association shall not seek municipal
12.8 ratification prior to before obtaining either an updated
12.9 actuarial valuation including the proposed amendment or an
12.10 estimate of the expected actuarial impact of the proposed
12.11 amendment prepared by the actuary of the relief association and
12.12 submitting that actuarial valuation or estimate to the clerk of
12.13 the municipality.
12.14 Subd. 3 12. [CITATION.] This section may be cited as the
12.15 "Police and Firefighters' Relief Associations Guidelines Act of
12.16 1969."
12.17 Sec. 2. Minnesota Statutes 2000, section 69.80, is amended
12.18 to read:
12.19 69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.]
12.20 (a) Notwithstanding any provision of law to the contrary,
12.21 the payment of the following necessary, reasonable and direct
12.22 expenses of maintaining, protecting and administering the
12.23 special fund, when provided for in the bylaws of the association
12.24 and approved by the board of trustees, shall constitute
12.25 constitutes authorized administrative expenses of a police,
12.26 salaried firefighters', or volunteer firefighters' relief
12.27 association organized under any law of this state:
12.28 (a) (1) office expense, including, but not limited to,
12.29 rent, utilities, equipment, supplies, postage, periodical
12.30 subscriptions, furniture, fixtures, and salaries of
12.31 administrative personnel;
12.32 (b) (2) salaries of the president, secretary, and treasurer
12.33 of the association, or their designees, and any other official
12.34 of the relief association to whom a salary is payable under
12.35 bylaws or articles of incorporation in effect on January 1,
12.36 1986, and their itemized expenses incurred as a result of
13.1 fulfilling their responsibilities as administrators of the
13.2 special fund;
13.3 (c) (3) tuition, registration fees, organizational dues,
13.4 and other authorized expenses of the officers or members of the
13.5 board of trustees incurred in attending educational conferences,
13.6 seminars, or classes relating to the administration of the
13.7 relief association;
13.8 (d) (4) audit, actuarial, medical, legal, and investment
13.9 and performance evaluation expenses;
13.10 (e) (5) reimbursement to the officers and members of the
13.11 board of trustees, or their designees, for reasonable and
13.12 necessary expenses actually paid and incurred in the performance
13.13 of their duties as officers or members of the board; and
13.14 (f) (6) premiums on fiduciary liability insurance and
13.15 official bonds for the officers, members of the board of
13.16 trustees, and employees of the relief association.
13.17 (b) Any other expenses of the relief association shall must
13.18 be paid from the general fund of the association, if one
13.19 exists. If a relief association has only one fund, that
13.20 fund shall be deemed to be is the special fund for purposes of
13.21 this section. If a relief association has a special fund and a
13.22 general fund, and any expense of the relief association that is
13.23 directly related to the purposes for which both funds were
13.24 established, the payment of that expense shall must be
13.25 apportioned between the two funds on the basis of the benefits
13.26 derived by each fund.
13.27 Sec. 3. Minnesota Statutes 2000, section 353A.08,
13.28 subdivision 6a, is amended to read:
13.29 Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A
13.30 person who was an active member of a local police or
13.31 firefighters relief association upon its consolidation with the
13.32 public employees retirement association, and who was otherwise
13.33 eligible for automatic service credit for military service under
13.34 sections Minnesota Statutes 2000, section 423.57 and 424.23, and
13.35 who has not elected the type of benefit coverage provided by the
13.36 public employees police and fire fund at the time of
14.1 consolidation, must make employee contributions under section
14.2 353.01, subdivision 16, paragraph (h), to receive allowable
14.3 service credit from the association for a military service leave
14.4 after the effective date of the consolidation. A person who
14.5 later elects, under subdivision 3, to retain benefit coverage
14.6 under the bylaws of the local relief association is eligible for
14.7 a refund from the association at the time of retirement. The
14.8 association shall refund the employee contributions plus
14.9 interest at the rate of six percent, compounded quarterly, from
14.10 the date on which contributions were made until the first day of
14.11 the month in which the refund is paid. The employer shall
14.12 receive a refund of the employer contributions. The association
14.13 shall not pay a refund to a person who later elects, under
14.14 subdivision 3, the type of benefit coverage provided by the
14.15 public employees police and fire fund or to the person's
14.16 employer.
14.17 Sec. 4. Minnesota Statutes 2000, section 423A.17, is
14.18 amended to read:
14.19 423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON
14.20 REMARRIAGE.]
14.21 (a) Notwithstanding a provision of section 69.48; 423.387,
14.22 subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or
14.23 424.24, subdivision 1, or other law, article of incorporation,
14.24 or bylaw governing a local police or salaried firefighters
14.25 relief association to the contrary, the governing body of a
14.26 municipality may mandate the applicable local police or salaried
14.27 firefighters relief association to provide that a surviving
14.28 spouse benefit is payable for the life of the surviving spouse
14.29 and remains payable even in the event of the remarriage of the
14.30 surviving spouse.
14.31 (b) If the surviving spouse benefit change described in
14.32 paragraph (a) is made, the change applies to a surviving spouse
14.33 benefit payable on the effective date of the change and to the
14.34 potential surviving spouses of all active, deferred, or retired
14.35 members of the relief association who have that status on the
14.36 effective date of the change.
15.1 (c) In addition, if the surviving spouse benefit change
15.2 described in paragraph (a) is made a person who formerly was
15.3 receiving surviving spouse benefits from the relief association
15.4 and who had those benefits discontinued by virtue of the
15.5 remarriage is entitled, upon application, to a resumption of the
15.6 surviving spouse benefit, beginning with the last day of the
15.7 month following receipt of the application by the secretary of
15.8 the relief association. Nothing in this section authorizes the
15.9 payment of a benefit amount to an estate.
15.10 (d) The change must be made by a municipal resolution
15.11 adopted by a majority vote of the municipality. The resolution
15.12 must be filed by the secretary of the relief association with
15.13 the executive director of the legislative commission on pensions
15.14 and retirement, the state auditor, and the secretary of state.
15.15 Sec. 5. Minnesota Statutes 2000, section 423A.171, is
15.16 amended to read:
15.17 423A.171 [BYLAW AMENDMENTS.]
15.18 (a) Notwithstanding a provision of section 69.48; 423.387,
15.19 subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;
15.20 423B.10; or 424.24, subdivision 1, or other law governing a
15.21 local police or salaried firefighters' relief association to the
15.22 contrary, the board of trustees of a local relief association
15.23 governed by section 69.77 or its successor board under chapter
15.24 353A or 353B, with municipal approval as provided in section
15.25 69.77, subdivision 2i 11, may amend the bylaws of the relief
15.26 association to provide that a surviving spouse benefit is
15.27 payable to a surviving spouse who married a deferred or retired
15.28 member after the member's retirement, provided the marriage
15.29 occurred at least five years before the death of the member.
15.30 (b) If the surviving spouse benefit change described in
15.31 paragraph (a) is made, the change applies to a surviving spouse
15.32 benefit payable on the effective date of the change and to the
15.33 potential surviving spouses of all deferred or retired members
15.34 of the relief association who have that status on the effective
15.35 date of the change.
15.36 (c) The bylaw amendment is not effective until a certified
16.1 copy of the amendment and the municipal approval has been filed
16.2 by the municipal clerk with the executive director of the
16.3 legislative commission on pensions and retirement, the state
16.4 auditor, and the secretary of state.
16.5 (d) Notwithstanding the provisions of section 353B.11, a
16.6 surviving spouse benefit change made under this section for a
16.7 relief association that has consolidated with the public
16.8 employees retirement association is effective upon approval by
16.9 the public employees retirement association and the municipality
16.10 pursuant to under paragraph (c).
16.11 Sec. 6. Minnesota Statutes 2000, section 424A.09, is
16.12 amended to read:
16.13 424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.]
16.14 This chapter shall supersede supersedes any special law
16.15 applicable to any municipal volunteer firefighters' relief
16.16 association or independent nonprofit firefighting corporation
16.17 specifically authorizing the relief association or nonprofit
16.18 firefighting corporation to exceed the service pension
16.19 limitations contained in Minnesota Statutes 1978, sections 69.06
16.20 and 69.691. Any relief association which amended its bylaws to
16.21 provide for a full pro rata service pension amount at the
16.22 specified retirement age with 15 years service credit or 75
16.23 percent of the pro rata service pension amount at the specified
16.24 retirement age with ten years of service pursuant to under
16.25 Minnesota Statutes 1978, section 69.06, may continue to provide
16.26 the specified service pension amounts at the applicable years of
16.27 credited service to any member who has credit for at least ten
16.28 or 15 years, whichever is the applicable minimum service period
16.29 specified in the bylaws governing the relief association, on or
16.30 before December 31, 1979 notwithstanding section 424A.02.
16.31 Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF
16.32 ASSOCIATION.]
16.33 To the extent that Minnesota Statutes 2000, chapter 424,
16.34 applied to the Bloomington firefighters relief association on
16.35 the day before the effective date of section 5, Minnesota
16.36 Statutes 2000, chapter 424, continues to apply to the
17.1 Bloomington firefighters relief association after that date.
17.2 Sec. 8. [REVISOR INSTRUCTIONS.]
17.3 (a) In the next and subsequent editions of Minnesota
17.4 Statutes, the revisor of statutes shall not print Minnesota
17.5 Statutes, sections 423.41 to 423.62, but shall denote those
17.6 sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]."
17.7 (b) In the next and subsequent editions of Minnesota
17.8 Statutes, the revisor of statutes shall, in each section
17.9 indicated in column A, replace the cross-reference specified in
17.10 column B with the cross-reference set forth in column C:
17.11 Column A Column B Column C
17.12 69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3
17.13 69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4
17.14 69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5
17.15 299A.465, subd. 5 424.03 Minnesota Statutes,
17.16 2000, 424.03
17.17 353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3
17.18 353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3
17.19 356.216 69.77, subd. 2b 69.77, subd. 4
17.20 356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9
17.21 423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4
17.22 423A.18 69.77, subd. 2i 69.77, subd. 11
17.23 423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11
17.24 423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3
17.25 423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4
17.26 423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5
17.27 423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6
17.28 423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7
17.29 423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8
17.30 423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4
17.31 Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.]
17.32 Subdivision 1. [FIRST CLASS CITY FIRE;
17.33 REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26;
17.34 69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39;
17.35 69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48;
17.36 69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed.
18.1 Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota
18.2 Statutes 2000, sections 423.37; 423.371; 423.372; 423.373;
18.3 423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381;
18.4 423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388;
18.5 423.389; 423.39; 423.391; and 423.392, are repealed.
18.6 Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota
18.7 Statutes 2000, sections 423.801; 423.802; 423.803; 423.804;
18.8 423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813;
18.9 423.814; and 423.90, are repealed.
18.10 Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota
18.11 Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05;
18.12 424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18;
18.13 424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27;
18.14 424.28; and 424.29, are repealed.
18.15 Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters
18.16 170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and
18.17 281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters
18.18 44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws
18.19 1963, chapter 643; Laws 1984, chapter 574, section 23; Laws
18.20 1985, chapter 261, section 36; and Laws 1993, chapter 72, are
18.21 repealed.
18.22 Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter
18.23 174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section
18.24 36, are repealed.
18.25 Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174;
18.26 Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and
18.27 Laws 1981, chapter 224, sections 263 and 264, are repealed.
18.28 Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170;
18.29 Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws
18.30 1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter
18.31 418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980,
18.32 chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections
18.33 268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490,
18.34 are repealed.
18.35 Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter
18.36 432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9
19.1 and 10; and Laws 1981, chapter 224, sections 268 and 270, are
19.2 repealed.
19.3 Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965,
19.4 chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563,
19.5 section 17; Laws 1980, chapter 341, section 6; Laws 1981,
19.6 chapter 224, section 240; and Laws 1993, chapter 202, article 1,
19.7 are repealed.
19.8 Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter
19.9 437, is repealed.
19.10 Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967,
19.11 chapter 736; and Laws 1978, chapter 563, section 18, are
19.12 repealed.
19.13 Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630;
19.14 Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981,
19.15 chapter 68, section 43; Laws 1982, chapter 578, article II,
19.16 section 1, subdivision 8; Laws 1984, chapter 574, sections 18
19.17 and 20; Laws 1985, chapter 261, section 18; and Laws 1986,
19.18 chapter 458, section 23, are repealed.
19.19 Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter
19.20 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124;
19.21 Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953,
19.22 chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter
19.23 631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976,
19.24 chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131,
19.25 section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws
19.26 1991, chapter 269, article 2, section 12, are repealed.
19.27 Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter
19.28 74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959,
19.29 chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810;
19.30 Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978,
19.31 chapters 563, section 27, and 648; Laws 1979, chapter 131,
19.32 section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and
19.33 224, section 261; and Laws 1991, chapter 269, article 2, section
19.34 12, are repealed.
19.35 Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter
19.36 196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961,
20.1 chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and
20.2 Laws 1969, chapter 716, are repealed.
20.3 Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965,
20.4 chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374,
20.5 sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51,
20.6 52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563,
20.7 sections 29 and 30; and Laws 1981, chapter 224, section 267, are
20.8 repealed.
20.9 Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977,
20.10 chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
20.11 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29,
20.12 30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126,
20.13 are repealed.
20.14 Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter
20.15 378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971,
20.16 chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26;
20.17 Laws 1981, chapter 224, sections 252 and 253; and Laws 1983,
20.18 chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are
20.19 repealed.
20.20 Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter
20.21 85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1;
20.22 and Laws 1984, chapter 574, section 26, are repealed.
20.23 Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter
20.24 619; Laws 1969, chapter 1087; and Laws 1980, chapter 607,
20.25 article XV, section 23, are repealed.
20.26 Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196;
20.27 Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961,
20.28 chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179;
20.29 Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976,
20.30 chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws
20.31 1992, chapter 448, section 1; and Laws 1994, chapter 474, are
20.32 repealed.
20.33 Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter
20.34 68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925,
20.35 chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153;
20.36 Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959,
21.1 chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws
21.2 1980, chapter 600, section 11; and Laws 1992, chapter 448, are
21.3 repealed.
21.4 Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter
21.5 208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124;
21.6 Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws
21.7 1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter
21.8 293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws
21.9 1969, chapter 552, are repealed.
21.10 Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter
21.11 636; and Laws 1969, chapter 670, are repealed.
21.12 Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter
21.13 43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957,
21.14 chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws
21.15 1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter
21.16 574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws
21.17 1985, First Special Session chapter 16, article 2, section 6;
21.18 and Laws 1993, chapter 112, section 2, are repealed.
21.19 Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter
21.20 259, sections 5 and 6; Laws 1985, First Special Session chapter
21.21 16, article 2, section 6, are repealed.
21.22 Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter
21.23 594, is repealed.
21.24 Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter
21.25 83, is repealed.
21.26 Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter
21.27 192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947,
21.28 chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws
21.29 1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter
21.30 686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5
21.31 and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section
21.32 260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2,
21.33 sections 7, 8, and 9; and Laws 1991, chapter 269, article 2,
21.34 sections 12 and 13, are repealed.
21.35 Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter
21.36 48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945,
22.1 chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws
22.2 1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter
22.3 793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969,
22.4 chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws
22.5 1987, chapter 372, article 2, section 7; and Laws 1991, chapter
22.6 269, article 2, section 12, are repealed.
22.7 Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter
22.8 144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971,
22.9 chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981,
22.10 chapter 224, sections 258 and 259; and Laws 1989, chapter 319,
22.11 article 11, section 3, are repealed.
22.12 Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter
22.13 407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter
22.14 224, sections 258 and 259; Laws 1986, chapter 458, section 34;
22.15 and Laws 1987, chapter 372, article 2, section 12, are repealed.
22.16 Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter
22.17 499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969,
22.18 chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563,
22.19 sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36,
22.20 37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224,
22.21 section 236; and Laws 1982, chapter 578, article III, section
22.22 18, are repealed.
22.23 Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter
22.24 277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19;
22.25 Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44;
22.26 Laws 1980, chapter 600, section 16; Laws 1981, chapter 224,
22.27 section 243; and Laws 1982, chapter 578, article III, section
22.28 18, are repealed.
22.29 Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter
22.30 174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections
22.31 265 and 266; and Laws 1985, chapter 261, section 20, are
22.32 repealed.
22.33 Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter
22.34 348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961,
22.35 chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359;
22.36 Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984,
23.1 chapter 574, section 24, are repealed.
23.2 Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter
23.3 174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8;
23.4 and Laws 1994, chapter 410, are repealed.
23.5 Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter
23.6 348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter
23.7 464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20
23.8 and 21; Laws 1980, chapter 607, article XV, section 23; Laws
23.9 1981, chapter 224, section 244; and Laws 1997, chapter 241,
23.10 article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are
23.11 repealed.
23.12 Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter
23.13 455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16;
23.14 Laws 1980, chapter 607, article XV, section 23; Laws 1981,
23.15 chapter 224, section 239; and Laws 1991, chapter 96, are
23.16 repealed.
23.17 Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter
23.18 131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14;
23.19 Laws 1980, chapter 600, sections 18 and 22; and Laws 1981,
23.20 chapter 224, section 237, are repealed.
23.21 Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter
23.22 641; Laws 1975, chapter 368, section 54; Laws 1978, chapters
23.23 563, section 23; and 793, section 96; Laws 1980, chapter 600,
23.24 sections 18 and 22; and Laws 1981, chapter 224, section 248, are
23.25 repealed.
23.26 Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter
23.27 343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974,
23.28 chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690,
23.29 sections 9 and 10; and Laws 1982, chapter 402, are repealed.
23.30 Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter
23.31 432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984,
23.32 chapter 574, section 25; and Laws 1999, chapter 222, article 3,
23.33 section 6, are repealed.
23.34 Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967,
23.35 chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563,
23.36 section 22; Laws 1981, chapter 224, section 247; and Laws 1985,
24.1 chapter 261, sections 32, 33, 34, and 35, are repealed.
24.2 Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963,
24.3 chapter 454; Laws 1980, chapter 600, section 17; Laws 1984,
24.4 chapter 574, section 19; and Laws 1990, chapter 589, article 1,
24.5 section 7, are repealed.
24.6 Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter
24.7 196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957,
24.8 chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter
24.9 221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708;
24.10 Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287;
24.11 Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws
24.12 1981, chapter 68, section 35; Laws 1989, chapter 319, article
24.13 11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4,
24.14 and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article
24.15 2, section 1; and Laws 1997, chapter 241, article 2, sections 11
24.16 and 15, are repealed.
24.17 Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889,
24.18 chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters
24.19 389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws
24.20 1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter
24.21 151; Laws 1961, chapters 434 and 435, section 2; Laws 1963,
24.22 chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442,
24.23 668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286;
24.24 Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981,
24.25 chapter 68, section 34; Laws 1983, chapter 47; Laws 1988,
24.26 chapter 709, article 8, section 5; Laws 1989, chapter 319,
24.27 article 11, sections 2 and 12; Laws 1992, chapters 393, section
24.28 1; 563, section 5; and 586, section 1; Laws 1994, chapter 409;
24.29 Laws 1996, chapter 448, article 2, section 1; and Laws 1997,
24.30 chapter 241, article 2, sections 11 and 15, are repealed.
24.31 Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943,
24.32 chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281;
24.33 Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406;
24.34 Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963,
24.35 chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and
24.36 Laws 1971, chapter 178, are repealed.
25.1 Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994,
25.2 chapter 541, section 3, is repealed.
25.3 Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981,
25.4 chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws
25.5 1985, chapter 261, section 14; and Laws 1992, chapter 431,
25.6 section 1, are repealed.
25.7 Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters
25.8 92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws
25.9 1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6,
25.10 and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989,
25.11 chapter 319, article 11, section 4; and Laws 1992, chapter 392,
25.12 section 1, are repealed.
25.13 Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961,
25.14 chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610,
25.15 sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20;
25.16 and Laws 1984, chapter 574, section 33, are repealed.
25.17 Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965,
25.18 chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297,
25.19 sections 1 and 2; Laws 1987, chapter 372, article 2, section 10;
25.20 and Laws 1995, chapter 262, article 10, section 4, are repealed.
25.21 Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws
25.22 1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter
25.23 848, are repealed.
25.24 Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter
25.25 108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter
25.26 429, section 62; Laws 1986, chapter 359, sections 22, 23, 24,
25.27 and 25; and Laws 1988, chapter 709, article 9, section 5, are
25.28 repealed.
25.29 Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000,
25.30 sections 69.78; 297I.10, subdivision 2; and 423A.03, are
25.31 repealed.
25.32 Sec. 10. [EFFECTIVE DATE.]
25.33 Sections 1 to 9 are effective on July 1, 2002.
25.34 ARTICLE 2
25.35 RETIREMENT PLAN ALLOWABLE SERVICE
25.36 CREDIT FOR STRIKE PERIODS
26.1 Section 1. Minnesota Statutes 2001 Supplement, section
26.2 352.01, subdivision 11, is amended to read:
26.3 Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means:
26.4 (1) Service by an employee for which on or before July 1,
26.5 1957, the employee was entitled to allowable service credit on
26.6 the records of the system by reason of employee contributions in
26.7 the form of salary deductions, payments in lieu of salary
26.8 deductions, or in any other manner authorized by Minnesota
26.9 Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
26.10 (2) Service by an employee for which on or before July 1,
26.11 1961, the employee chose to obtain credit for service by making
26.12 payments to the fund under Minnesota Statutes 1961, section
26.13 352.24.
26.14 (3) Except as provided in clauses (8) and (9), service by
26.15 an employee after July 1, 1957, for any calendar month in which
26.16 the employee is paid salary from which deductions are made,
26.17 deposited, and credited in the fund, including deductions made,
26.18 deposited, and credited as provided in section 352.041.
26.19 (4) Except as provided in clauses (8) and (9), service by
26.20 an employee after July 1, 1957, for any calendar month for which
26.21 payments in lieu of salary deductions are made, deposited, and
26.22 credited in the fund, as provided in section 352.27 and
26.23 Minnesota Statutes 1957, section 352.021, subdivision 4.
26.24 For purposes of clauses (3) and (4), except as provided in
26.25 clauses (8) and (9), any salary paid for a fractional part of
26.26 any calendar month, including the month of separation from state
26.27 service, is deemed the compensation for the entire calendar
26.28 month.
26.29 (5) The period of absence from their duties by employees
26.30 who are temporarily disabled because of injuries incurred in the
26.31 performance of duties and for which disability the state is
26.32 liable under the workers' compensation law until the date
26.33 authorized by the director for the commencement of payments of a
26.34 total and permanent disability benefit from the retirement fund.
26.35 (6) Service covered by a refund repaid as provided in
26.36 section 352.23 or 352D.05, subdivision 4, except service
27.1 rendered as an employee of the adjutant general for which the
27.2 person has credit with the federal civil service retirement
27.3 system.
27.4 (7) Service before July 1, 1978, by an employee of the
27.5 transit operating division of the metropolitan transit
27.6 commission or by an employee on an authorized leave of absence
27.7 from the transit operating division of the metropolitan transit
27.8 commission who is employed by the labor organization which is
27.9 the exclusive bargaining agent representing employees of the
27.10 transit operating division, which was credited by the
27.11 metropolitan transit commission-transit operating division
27.12 employees retirement fund or any of its predecessor plans or
27.13 funds as past, intermediate, future, continuous, or allowable
27.14 service as defined in the metropolitan transit
27.15 commission-transit operating division employees retirement fund
27.16 plan document in effect on December 31, 1977.
27.17 (8) Service after July 1, 1983, by an employee who is
27.18 employed on a part-time basis for less than 50 percent of full
27.19 time, for which the employee is paid salary from which
27.20 deductions are made, deposited, and credited in the fund,
27.21 including deductions made, deposited, and credited as provided
27.22 in section 352.041 or for which payments in lieu of salary
27.23 deductions are made, deposited, and credited in the fund as
27.24 provided in section 352.27 shall be credited on a fractional
27.25 basis either by pay period, monthly, or annually based on the
27.26 relationship that the percentage of salary earned bears to a
27.27 full-time salary, with any salary paid for the fractional
27.28 service credited on the basis of the rate of salary applicable
27.29 for a full-time pay period, month, or a full-time year. For
27.30 periods of part-time service that is duplicated service credit,
27.31 section 356.30, subdivision 1, clauses (i) and (j), govern.
27.32 Allowable service determined and credited on a fractional
27.33 basis shall be used in calculating the amount of benefits
27.34 payable, but service as determined on a fractional basis must
27.35 not be used in determining the length of service required for
27.36 eligibility for benefits.
28.1 (9) Any period of authorized leave of absence without pay
28.2 that does not exceed one year and for which the employee
28.3 obtained credit by payment to the fund in lieu of salary
28.4 deductions. To obtain credit, the employee shall pay an amount
28.5 equal to the employee and employer contribution rate in section
28.6 352.04, subdivisions 2 and 3, multiplied by the employee's
28.7 hourly rate of salary on the date of return from leave of
28.8 absence and by the days and months of the leave of absence
28.9 without pay for which the employee wants allowable service
28.10 credit. The employing department, at its option, may pay the
28.11 employer amount on behalf of its employees. Payments made under
28.12 this clause must include interest at an annual rate of 8.5
28.13 percent compounded annually from the date of termination of the
28.14 leave of absence to the date payment is made unless payment is
28.15 completed within one year of the return from leave of absence.
28.16 (10) A period purchased under section 356.555.
28.17 (11) A period of time during which the employee was on
28.18 strike without pay, not to exceed a period of one year, if the
28.19 employee makes a payment in lieu of salary deductions or makes a
28.20 prior service credit purchase payment, whichever applies. If
28.21 the payment is made within 12 months, the payment by the
28.22 employee must be an amount equal to the employee and employer
28.23 contribution rates set forth in section 352.04, subdivisions 2
28.24 and 3, applied to the employee's rate of salary in effect on the
28.25 conclusion of the strike for the period of the strike without
28.26 pay, plus compound interest at a monthly rate of 0.71 percent
28.27 from the last day of the strike until the date of payment. If
28.28 the payment by the employee is not made within 12 months, the
28.29 payment must be in an amount equal to the payment amount
28.30 determined under section 356.55 or 356.551, whichever applies.
28.31 Sec. 2. Minnesota Statutes 2001 Supplement, section
28.32 353.01, subdivision 16, is amended to read:
28.33 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a)
28.34 "Allowable service" means:
28.35 (1) service during years of actual membership in the course
28.36 of which employee contributions were made, periods covered by
29.1 payments in lieu of salary deductions under section 353.35;
29.2 (2) service in years during which the public employee was
29.3 not a member but for which the member later elected, while a
29.4 member, to obtain credit by making payments to the fund as
29.5 permitted by any law then in effect;
29.6 (3) a period of authorized leave of absence with pay from
29.7 which deductions for employee contributions are made, deposited,
29.8 and credited to the fund;
29.9 (4) a period of authorized personal, parental, or medical
29.10 leave of absence without pay, including a leave of absence
29.11 covered under the federal Family Medical Leave Act, that does
29.12 not exceed one year, and during or for which a member obtained
29.13 full or fractional service credit for each month in the leave
29.14 period by payments to the fund made in place of salary
29.15 deductions. The payments must be made in an amount or amounts
29.16 based on the member's average salary on which deductions were
29.17 paid for the last six months of public service, or for that
29.18 portion of the last six months while the member was in public
29.19 service, to apply to the period in either case that immediately
29.20 precedes the commencement of the leave of absence. If the
29.21 employee elects to pay the employee contributions for the period
29.22 of any authorized personal, parental, or medical leave of
29.23 absence without pay, or for any portion of the leave, the
29.24 employee shall also, as a condition to the exercise of the
29.25 election, pay to the fund an amount equivalent to the required
29.26 employer and the additional employer contributions, if any, for
29.27 the employee. The payment must be made within one year from the
29.28 expiration of the leave of absence or within 20 days after
29.29 termination of public service under subdivision 11a. The
29.30 employer, if by appropriate action of its governing body, which
29.31 is made a part of its official records, and which is adopted
29.32 before the date of the first payment of the employee
29.33 contribution, may certify to the association in writing its
29.34 commitment to pay the employer and additional employer
29.35 contributions from the proceeds of a tax levy made under section
29.36 353.28. Payments under this paragraph must include interest at
30.1 an annual rate of 8.5 percent compounded annually from the date
30.2 of the termination of the leave of absence to the date payment
30.3 is made. An employee shall return to public service and render
30.4 a minimum of three months of allowable service in order to be
30.5 eligible to pay employee and employer contributions for a
30.6 subsequent authorized leave of absence without pay. Upon
30.7 payment, the employee must be granted allowable service credit
30.8 for full calendar months or fractions of a month during the
30.9 leave period as described in paragraph (d), clauses (1) and (2),
30.10 based on the salary or the compensated hours used in computing
30.11 the payment amount;
30.12 (5) a periodic, repetitive leave that is offered to all
30.13 employees of a governmental subdivision. The leave program may
30.14 not exceed 208 hours per annual normal work cycle as certified
30.15 to the association by the employer. A participating member
30.16 obtains service credit by making employee contributions in an
30.17 amount or amounts based on the member's average salary that
30.18 would have been paid if the leave had not been taken. The
30.19 employer shall pay the employer and additional employer
30.20 contributions on behalf of the participating member. The
30.21 employee and the employer are responsible to pay interest on
30.22 their respective shares at the rate of 8.5 percent a year,
30.23 compounded annually, from the end of the normal cycle until full
30.24 payment is made. An employer shall also make the employer and
30.25 additional employer contributions, plus 8.5 percent interest,
30.26 compounded annually, on behalf of an employee who makes employee
30.27 contributions but terminates public service. The employee
30.28 contributions must be made within one year after the end of the
30.29 annual normal working cycle or within 20 days after termination
30.30 of public service, whichever is sooner. The association shall
30.31 prescribe the manner and forms to be used by a governmental
30.32 subdivision in administering a periodic, repetitive leave. Upon
30.33 payment, the member must be granted allowable service credit for
30.34 full calendar months or fractions of a month during the leave
30.35 period as described in paragraph (d), clauses (1) and (2), based
30.36 on the salary or the compensated hours used in computing the
31.1 payment amount;
31.2 (6) an authorized temporary layoff under subdivision 12.
31.3 For temporary layoffs that begin before January 1, 2002,
31.4 allowable service credit is limited to three months allowable
31.5 service per authorized temporary layoff in one calendar year.
31.6 For temporary layoffs that begin on or after January 1, 2002,
31.7 allowable service credit for the calendar month in which the
31.8 member does not receive salary due to the layoff must be
31.9 determined using the following formula:
31.10 (i) members who earned one month of allowable service
31.11 credit for each of the nine calendar months of compensated
31.12 employment with the governmental subdivision authorizing the
31.13 layoff that immediately preceded the layoff shall receive one
31.14 month of allowable service credit, limited to three months of
31.15 allowable service credit per year, for each month of the
31.16 temporary layoff; or
31.17 (ii) members who earned less than nine months of allowable
31.18 service credit in the year of compensated employment with the
31.19 governmental subdivision authorizing the layoff that immediately
31.20 preceded the layoff shall receive allowable service credit on a
31.21 fractional basis for each month of the authorized layoff,
31.22 limited to three months of allowable service credit, determined
31.23 by dividing the total number of months of service credit earned
31.24 for the compensated employment by nine and multiplying the
31.25 resulting number by the total number of months in the layoff
31.26 period that are not compensated; or
31.27 (7) a period during which a member is on an authorized
31.28 leave of absence to enter military service in the armed forces
31.29 of the United States, provided that the member returns to public
31.30 service upon discharge from military service under section
31.31 192.262 and pays into the fund employee contributions based upon
31.32 the employee's salary at the date of return from military
31.33 service. Payment must be made within three times the length of
31.34 the military leave period, or five years of the date of
31.35 discharge from the military service, whichever is less. The
31.36 amount of these contributions must be in accord with the
32.1 contribution rates and salary limitations, if any, in effect
32.2 during the leave, plus interest at an annual rate of 8.5 percent
32.3 compounded annually from the date of return to public service to
32.4 the date payment is made. The matching employer contribution
32.5 and additional employer contribution under section 353.27,
32.6 subdivisions 3 and 3a, must be paid by the governmental
32.7 subdivision employing the member upon return to public service
32.8 if the member makes the employee contributions. The
32.9 governmental subdivision involved may appropriate money for
32.10 those payments. A member may not receive credit for a voluntary
32.11 extension of military service at the instance of the member
32.12 beyond the initial period of enlistment, induction, or call to
32.13 active duty. Upon payment, the employee must be granted
32.14 allowable service credit for full calendar months or fractions
32.15 of a month during the leave period as described in paragraph
32.16 (d), clauses (1) and (2), based on the salary or compensated
32.17 hours used in computing the payment amount.; or
32.18 (8) a period of time during which a member who is a state
32.19 employee was on strike without pay, not to exceed a period of
32.20 one year, if the member makes a payment in lieu of salary
32.21 deductions or makes a prior service credit purchase payment,
32.22 whichever applies. If the payment is made within 12 months, the
32.23 payment by the member must be an amount equal to the employee,
32.24 employer, and employer additional contribution rates set forth
32.25 in section 353.27, subdivisions 2, 3, and 3a, applied to the
32.26 employee's rate of salary in effect on the conclusion of the
32.27 strike for the period of the strike without pay, plus compound
32.28 interest at a monthly rate of 0.71 percent from the last day of
32.29 the strike until the date of payment. If the payment by the
32.30 employee is not made within 12 months, the payment must be in an
32.31 amount equal to the payment amount determined under section
32.32 356.55 or 356.551, whichever applies.
32.33 (b) For calculating benefits under sections 353.30, 353.31,
32.34 353.32, and 353.33 for state officers and employees displaced by
32.35 the Community Corrections Act, chapter 401, and transferred into
32.36 county service under section 401.04, "allowable service" means
33.1 combined years of allowable service as defined in paragraph (a),
33.2 clauses (1) to (6), and section 352.01, subdivision 11.
33.3 (c) For a public employee who has prior service covered by
33.4 a local police or firefighters relief association that has
33.5 consolidated with the public employees retirement association or
33.6 to which section 353.665 applies, and who has elected the type
33.7 of benefit coverage provided by the public employees police and
33.8 fire fund either under section 353A.08 following the
33.9 consolidation or under section 353.665, subdivision 4,
33.10 "applicable service" is a period of service credited by the
33.11 local police or firefighters relief association as of the
33.12 effective date of the consolidation based on law and on bylaw
33.13 provisions governing the relief association on the date of the
33.14 initiation of the consolidation procedure.
33.15 (d) For persons who, after January 1, 2002, either first
33.16 become members or terminated membership under subdivision 11b,
33.17 and again become members, of the public employees retirement
33.18 plan, the public employees police and fire plan under this
33.19 chapter, or the local government correctional employee
33.20 retirement plan under chapter 353E, whichever applies,
33.21 "allowable service" means credit for compensated hours from
33.22 which deductions are made, or for which payments are made in
33.23 lieu of salary deductions as provided under this subdivision,
33.24 and which are deposited and credited in the fund as provided in
33.25 section 353.27, determined as follows:
33.26 (1) one month of allowable service credit for each month
33.27 during which the employee has received salary for 80 or more
33.28 compensated hours; or
33.29 (2) a fraction of one month of allowable service for each
33.30 month for which the employee has received salary for less than
33.31 80 compensated hours equal to the percentage relationship that
33.32 the number of compensated hours bear to 80 hours.
33.33 (e) Elected officials and other public employees who are
33.34 compensated solely on an annual basis shall be granted a full
33.35 year of credit for each year for which compensation is earned.
33.36 (f) Allowable service that is determined and credited on a
34.1 fractional basis must be used only in calculating the amount of
34.2 benefits payable. In determining the length of service required
34.3 for vesting, a member shall be granted a month of service credit
34.4 for each month in which the member received compensation from
34.5 which employee contributions were deducted. For periods of
34.6 part-time service that are duplicated service credit, section
34.7 356.30, subdivision 1, paragraphs (g) and (h), govern.
34.8 (g) No member shall receive more than 12 months of
34.9 allowable service credit in a year either for vesting purposes
34.10 or for benefit calculation purposes.
34.11 (h) "Allowable service" also means a period purchased under
34.12 section 356.555.
34.13 Sec. 3. Minnesota Statutes 2001 Supplement, section
34.14 354.05, subdivision 13, is amended to read:
34.15 Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means:
34.16 (1) Any service rendered by a teacher for which on or
34.17 before July 1, 1957, the teacher's account in the retirement
34.18 fund was credited by reason of employee contributions in the
34.19 form of salary deductions, payments in lieu of salary
34.20 deductions, or in any other manner authorized by Minnesota
34.21 Statutes 1953, sections 135.01 to 135.13, as amended by Laws
34.22 1955, chapters 361, 549, 550, 611, or
34.23 (2) Any service rendered by a teacher for which on or
34.24 before July 1, 1961, the teacher elected to obtain credit for
34.25 service by making payments to the fund pursuant to Minnesota
34.26 Statutes 1980, section 354.09 and section 354.51, or
34.27 (3) Any service rendered by a teacher after July 1, 1957,
34.28 for any calendar month when the member receives salary from
34.29 which deductions are made, deposited and credited in the fund,
34.30 or
34.31 (4) Any service rendered by a person after July 1, 1957,
34.32 for any calendar month where payments in lieu of salary
34.33 deductions are made, deposited and credited into the fund as
34.34 provided in Minnesota Statutes 1980, section 354.09, subdivision
34.35 4, and section 354.53, or
34.36 (5) Any service rendered by a teacher for which the teacher
35.1 elected to obtain credit for service by making payments to the
35.2 fund pursuant to Minnesota Statutes 1980, section 354.09,
35.3 subdivisions 1 and 4, sections 354.50, 354.51, Minnesota
35.4 Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes
35.5 1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973
35.6 Supplement, section 354.09, subdivision 3, or
35.7 (6) Both service during years of actual membership in the
35.8 course of which contributions were currently made and service in
35.9 years during which the teacher was not a member but for which
35.10 the teacher later elected to obtain credit by making payments to
35.11 the fund as permitted by any law then in effect, or
35.12 (7) Any service rendered where contributions were made and
35.13 no allowable service credit was established because of the
35.14 limitations contained in Minnesota Statutes 1957, section
35.15 135.09, subdivision 2, as determined by the ratio between the
35.16 amounts of money credited to the teacher's account in a fiscal
35.17 year and the maximum retirement contribution allowable for that
35.18 year, or
35.19 (8) A period purchased under section 356.555., or
35.20 (9) A period of time during which a teacher who is a state
35.21 employee was on strike without pay, not to exceed a period of
35.22 one year, if the teacher makes a payment in lieu of salary
35.23 deductions or makes a prior service credit purchase payment,
35.24 whichever applies. If the payment is made within 12 months, the
35.25 payment by the teacher must be an amount equal to the employee
35.26 and employer contribution rates set forth in section 354.42,
35.27 subdivisions 2 and 3, applied to the teacher's rate of salary in
35.28 effect on the conclusion of the strike for the period of the
35.29 strike without pay, plus compound interest at a monthly rate of
35.30 0.71 percent from the last day of the strike until the date of
35.31 payment. If the payment by the employee is not made within 12
35.32 months, the payment must be in an amount equal to the payment
35.33 amount determined under section 356.55 or 356.551, whichever
35.34 applies.
35.35 Sec. 4. [EFFECTIVE DATE.]
35.36 (a) Sections 1, 2, and 3 are effective retroactive to July
36.1 1, 2001.
36.2 (b) The authority to obtain credit for allowable service
36.3 under section 1, clause (11); section 2, paragraph (a), clause
36.4 (8); and section 3, clause (9), expires 12 months after the date
36.5 of enactment.
36.6 ARTICLE 3
36.7 PERA MEMBERSHIP ELIGIBILITY
36.8 AND SERVICE CREDIT PRORATION
36.9 Section 1. Minnesota Statutes 2001 Supplement, section
36.10 353.01, subdivision 2a, is amended to read:
36.11 Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose
36.12 salary from one governmental subdivision exceeds $425 in any
36.13 month shall participate as members of the association. If the
36.14 salary is less than $425 in a subsequent month, the employee
36.15 retains membership eligibility. Eligible public employees shall
36.16 participate as members of the association with retirement
36.17 coverage by the public employees retirement plan or the public
36.18 employees police and fire retirement plan under this chapter, or
36.19 the local government correctional employees retirement plan
36.20 under chapter 353E, whichever applies, as a condition of their
36.21 employment on the first day of employment unless they:
36.22 (1) are specifically excluded under subdivision 2b;
36.23 (2) do not exercise their option to elect retirement
36.24 coverage in the association as provided in subdivision 2d,
36.25 paragraph (a); or
36.26 (3) are employees of the governmental subdivisions listed
36.27 in subdivision 2d, paragraph (b), where the governmental
36.28 subdivision has not elected to participate as a governmental
36.29 subdivision covered by the association.
36.30 (b) A public employee who was a member of the association
36.31 on June 30, 2002, based on employment that qualified for
36.32 membership coverage by the public employees retirement plan or
36.33 the public employees police and fire plan under this chapter, or
36.34 the local government correctional employees retirement plan
36.35 under chapter 353E as of June 30, 2002, retains that membership
36.36 until the employee terminates public employment under
37.1 subdivision 11a or terminates membership under subdivision 11b.
37.2 Sec. 2. Minnesota Statutes 2001 Supplement, section
37.3 353.01, subdivision 2b, is amended to read:
37.4 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
37.5 employees are not eligible to participate as members of the
37.6 association with retirement coverage by the public employees
37.7 retirement plan, the local government correctional employees
37.8 retirement plan under chapter 353E, or the public employees
37.9 police and fire retirement plan:
37.10 (1) public officers, other than county sheriffs, who are
37.11 elected to a governing body, or persons who are appointed to
37.12 fill a vacancy in an elective office of a governing body, whose
37.13 term of office first commences on or after July 1, 2002, for the
37.14 service to be rendered in that elective position. Elected
37.15 governing body officials who were active members of the
37.16 association's coordinated or basic retirement plans as of June
37.17 30, 2002, continue participation throughout incumbency in office
37.18 until termination of public service occurs as defined in
37.19 subdivision 11a;
37.20 (2) election officers or election judges;
37.21 (3) patient and inmate personnel who perform services for a
37.22 governmental subdivision;
37.23 (4) employees who are hired for a temporary position under
37.24 subdivision 12a, and employees who resign from a nontemporary
37.25 position and accept a temporary position within 30 days in the
37.26 same governmental subdivision. An employer must not apply the
37.27 definition of temporary position so as to exclude employees who
37.28 are hired to fill positions that are permanent or that are for
37.29 an unspecified period but who are serving a probationary period
37.30 at the start of the employment. If the period of employment
37.31 extends beyond six consecutive months and the employee earns
37.32 more than $425 from one governmental subdivision in any calendar
37.33 month, the department head shall report the employee for
37.34 membership and require employee deductions be made on behalf of
37.35 the employee under section 353.27, subdivision 4.
37.36 The membership eligibility of an employee who resigns or is
38.1 dismissed from a temporary position and within 30 days accepts
38.2 another temporary position in the same governmental subdivision
38.3 is determined on the total length of employment rather than on
38.4 each separate position. Membership eligibility of an employee
38.5 who holds concurrent temporary and nontemporary positions in one
38.6 governmental subdivision is determined by the length of
38.7 employment and salary of each separate position;
38.8 (5) employees who are employed by reason of work emergency
38.9 caused by fire, flood, storm, or similar disaster;
38.10 (6) employees who by virtue of their employment in one
38.11 governmental subdivision are required by law to be a member of
38.12 and to contribute to any of the plans or funds administered by
38.13 the Minnesota state retirement system, the teachers retirement
38.14 association, the Duluth teachers retirement fund association,
38.15 the Minneapolis teachers retirement association, the St. Paul
38.16 teachers retirement fund association, the Minneapolis employees
38.17 retirement fund, or any police or firefighters relief
38.18 association governed by section 69.77 that has not consolidated
38.19 with the public employees retirement association, or any local
38.20 police or firefighters consolidation account but who have not
38.21 elected the type of benefit coverage provided by the public
38.22 employees police and fire fund under sections 353A.01 to
38.23 353A.10, or any persons covered by section 353.665, subdivision
38.24 4, 5, or 6, who have not elected public employees police and
38.25 fire plan benefit coverage. This clause must not be construed
38.26 to prevent a person from being a member of and contributing to
38.27 the public employees retirement association and also belonging
38.28 to and contributing to another public pension fund for other
38.29 service occurring during the same period of time. A person who
38.30 meets the definition of "public employee" in subdivision 2 by
38.31 virtue of other service occurring during the same period of time
38.32 becomes a member of the association unless contributions are
38.33 made to another public retirement fund on the salary based on
38.34 the other service or to the teachers retirement association by a
38.35 teacher as defined in section 354.05, subdivision 2;
38.36 (7) persons who are members of a religious order and are
39.1 excluded from coverage under the federal Old Age, Survivors,
39.2 Disability, and Health Insurance Program for the performance of
39.3 service as specified in United States Code, title 42, section
39.4 410(a)(8)(A), as amended through January 1, 1987, if no
39.5 irrevocable election of coverage has been made under section
39.6 3121(r) of the Internal Revenue Code of 1954, as amended;
39.7 (8) employees who at the time they are hired by a of a
39.8 governmental subdivision who have not reached the age of 23 and
39.9 are enrolled on a full-time basis to attend or are attending
39.10 classes on a full-time basis at an accredited school, college,
39.11 or university in an undergraduate, graduate, or
39.12 professional-technical program, or a public or charter high
39.13 school, if the employment is predicated on the student status of
39.14 the individual;
39.15 (9) resident physicians, medical interns, and pharmacist
39.16 residents and pharmacist interns who are serving in a degree or
39.17 residency program in public hospitals;
39.18 (10) students who are serving in an internship or residency
39.19 program sponsored by an accredited educational institution;
39.20 (11) persons who hold a part-time adult supplementary
39.21 technical college license who render part-time teaching service
39.22 in a technical college;
39.23 (12) except for employees of Hennepin county, foreign
39.24 citizens working for a governmental subdivision with a work
39.25 permit of less than three years, or an H-1b visa valid for less
39.26 than three years of employment. Upon notice to the association
39.27 that the work permit or visa extends beyond the three-year
39.28 period, the foreign citizens are eligible to be reported for
39.29 membership from the date of the extension;
39.30 (13) public hospital employees who elected not to
39.31 participate as members of the association before 1972 and who
39.32 did not elect to participate from July 1, 1988, to October 1,
39.33 1988;
39.34 (14) except as provided in section 353.86, volunteer
39.35 ambulance service personnel, as defined in subdivision 35, but
39.36 persons who serve as volunteer ambulance service personnel may
40.1 still qualify as public employees under subdivision 2 and may be
40.2 members of the public employees retirement association and
40.3 participants in the public employees retirement fund or the
40.4 public employees police and fire fund, whichever applies, on the
40.5 basis of compensation received from public employment service
40.6 other than service as volunteer ambulance service personnel;
40.7 (15) except as provided in section 353.87, volunteer
40.8 firefighters, as defined in subdivision 36, engaging in
40.9 activities undertaken as part of volunteer firefighter duties;
40.10 provided that a person who is a volunteer firefighter may still
40.11 qualify as a public employee under subdivision 2 and may be a
40.12 member of the public employees retirement association and a
40.13 participant in the public employees retirement fund or the
40.14 public employees police and fire fund, whichever applies, on the
40.15 basis of compensation received from public employment activities
40.16 other than those as a volunteer firefighter;
40.17 (16) pipefitters and associated trades personnel employed
40.18 by independent school district No. 625, St. Paul, with coverage
40.19 under a collective bargaining agreement by the pipefitters local
40.20 455 pension plan who were either first employed after May 1,
40.21 1997, or, if first employed before May 2, 1997, elected to be
40.22 excluded under Laws 1997, chapter 241, article 2, section 12;
40.23 (17) electrical workers, plumbers, carpenters, and
40.24 associated trades personnel employed by independent school
40.25 district No. 625, St. Paul, or the city of St. Paul, who have
40.26 retirement coverage under a collective bargaining agreement by
40.27 the electrical workers local 110 pension plan, the united
40.28 association plumbers local 34 pension plan, or the carpenters
40.29 local 87 pension plan who were either first employed after May
40.30 1, 2000, or, if first employed before May 2, 2000, elected to be
40.31 excluded under Laws 2000, chapter 461, article 7, section 5;
40.32 (18) bricklayers, allied craftworkers, cement masons,
40.33 glaziers, glassworkers, painters, allied tradesworkers, and
40.34 plasterers employed by the city of St. Paul or independent
40.35 school district No. 625, St. Paul, with coverage under a
40.36 collective bargaining agreement by the bricklayers and allied
41.1 craftworkers local 1 pension plan, the cement masons local 633
41.2 pension plan, the glaziers and glassworkers local L-1324 pension
41.3 plan, the painters and allied trades local 61 pension plan, or
41.4 the Twin Cities plasterers local 265 pension plan who were
41.5 either first employed after May 1, 2001, or if first employed
41.6 before May 2, 2001, elected to be excluded under Laws 2001,
41.7 First Special Session chapter 10, article 10, section 6;
41.8 (19) plumbers employed by the metropolitan airports
41.9 commission, with coverage under a collective bargaining
41.10 agreement by the plumbers local 34 pension plan, who either were
41.11 first employed after May 1, 2001, or if first employed before
41.12 May 2, 2001, elected to be excluded under Laws 2001, First
41.13 Special Session chapter 10, article 10, section 6;
41.14 (20) employees who are hired after June 30, 2002, to fill
41.15 seasonal positions under subdivision 12b which are limited in
41.16 duration by the employer to 185 consecutive calendar days or
41.17 less in each business year of employment with the governmental
41.18 subdivision;
41.19 (21) persons who are provided supported employment or
41.20 work-study positions by a governmental subdivision and who
41.21 participate in an employment or industries program maintained
41.22 for the benefit of these persons where the governmental
41.23 subdivision limits the position's duration to three years or
41.24 less, including persons participating in a federal or state
41.25 subsidized on-the-job training, work experience, senior citizen,
41.26 youth, or unemployment relief program where the training or work
41.27 experience is not provided as a part of, or for, future
41.28 permanent public employment;
41.29 (22) independent contractors and the employees of
41.30 independent contractors; and
41.31 (23) reemployed annuitants of the association during the
41.32 course of that reemployment.
41.33 Sec. 3. Minnesota Statutes 2001 Supplement, section
41.34 353.01, subdivision 11b, is amended to read:
41.35 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination
41.36 of membership" means the conclusion of membership in the
42.1 association and occurs:
42.2 (1) upon termination of public service under subdivision
42.3 11a;
42.4 (2) when a member does not return to work within 30 days of
42.5 the expiration of an authorized temporary layoff under
42.6 subdivision 12 or an authorized leave of absence under
42.7 subdivision 31 as evidenced by the appropriate record filed by
42.8 the governmental subdivision; or
42.9 (3) when a person files a written election to discontinue
42.10 employee deductions under section 353.27, subdivision 7,
42.11 paragraph (a), clause (1).
42.12 (b) The termination of membership must be reported to the
42.13 association by the governmental subdivision.
42.14 (c) If the employee subsequently returns to a position in
42.15 the same governmental subdivision, the employee shall not again
42.16 be required to earn a salary in excess of $425 per month to
42.17 qualify for membership, unless the employee has taken a refund
42.18 of accumulated employee deduction plus interest under section
42.19 353.34, subdivision 1.
42.20 Sec. 4. Minnesota Statutes 2001 Supplement, section
42.21 353.01, subdivision 16, is amended to read:
42.22 Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a)
42.23 "Allowable service" means:
42.24 (1) service during years of actual membership in the course
42.25 of which employee contributions were made, periods covered by
42.26 payments in lieu of salary deductions under section 353.35;
42.27 (2) service in years during which the public employee was
42.28 not a member but for which the member later elected, while a
42.29 member, to obtain credit by making payments to the fund as
42.30 permitted by any law then in effect;
42.31 (3) a period of authorized leave of absence with pay from
42.32 which deductions for employee contributions are made, deposited,
42.33 and credited to the fund;
42.34 (4) a period of authorized personal, parental, or medical
42.35 leave of absence without pay, including a leave of absence
42.36 covered under the federal Family Medical Leave Act, that does
43.1 not exceed one year, and during or for which a member obtained
43.2 full or fractional service credit for each month in the leave
43.3 period by payments to the fund made in place of salary
43.4 deductions. The payments must be made in an amount or amounts
43.5 based on the member's average salary on which deductions were
43.6 paid for the last six months of public service, or for that
43.7 portion of the last six months while the member was in public
43.8 service, to apply to the period in either case that immediately
43.9 precedes the commencement of the leave of absence. If the
43.10 employee elects to pay the employee contributions for the period
43.11 of any authorized personal, parental, or medical leave of
43.12 absence without pay, or for any portion of the leave, the
43.13 employee shall also, as a condition to the exercise of the
43.14 election, pay to the fund an amount equivalent to the required
43.15 employer and the additional employer contributions, if any, for
43.16 the employee. The payment must be made within one year from the
43.17 expiration of the leave of absence or within 20 days after
43.18 termination of public service under subdivision 11a, whichever
43.19 is earlier. The employer, if by appropriate action of its
43.20 governing body, which is made a part of its official records,
43.21 and which is adopted before the date of the first payment of the
43.22 employee contribution, may certify to the association in writing
43.23 its commitment to pay the employer and additional employer
43.24 contributions from the proceeds of a tax levy made under section
43.25 353.28. Payments under this paragraph must include interest at
43.26 an annual rate of 8.5 percent compounded annually from the date
43.27 of the termination of the leave of absence to the date payment
43.28 is made. An employee shall return to public service and render
43.29 a minimum of three months of allowable service in order to be
43.30 eligible to pay employee and employer contributions for a
43.31 subsequent authorized leave of absence without pay. Upon
43.32 payment, the employee must be granted allowable service credit
43.33 for full calendar months or fractions of a month during the
43.34 leave purchased period as described in paragraph (d), clauses (1)
43.35 and (2), based on the salary or the compensated hours used in
43.36 computing the payment amount;
44.1 (5) a periodic, repetitive leave that is offered to all
44.2 employees of a governmental subdivision. The leave program may
44.3 not exceed 208 hours per annual normal work cycle as certified
44.4 to the association by the employer. A participating member
44.5 obtains service credit by making employee contributions in an
44.6 amount or amounts based on the member's average salary that
44.7 would have been paid if the leave had not been taken. The
44.8 employer shall pay the employer and additional employer
44.9 contributions on behalf of the participating member. The
44.10 employee and the employer are responsible to pay interest on
44.11 their respective shares at the rate of 8.5 percent a year,
44.12 compounded annually, from the end of the normal cycle until full
44.13 payment is made. An employer shall also make the employer and
44.14 additional employer contributions, plus 8.5 percent interest,
44.15 compounded annually, on behalf of an employee who makes employee
44.16 contributions but terminates public service. The employee
44.17 contributions must be made within one year after the end of the
44.18 annual normal working cycle or within 20 days after termination
44.19 of public service, whichever is sooner. The association shall
44.20 prescribe the manner and forms to be used by a governmental
44.21 subdivision in administering a periodic, repetitive leave. Upon
44.22 payment, the member must be granted allowable service credit for
44.23 full calendar months or fractions of a month during the leave
44.24 purchased period as described in paragraph (d), clauses (1) and
44.25 (2), based on the salary or the compensated hours used in
44.26 computing the payment amount;
44.27 (6) an authorized temporary layoff under subdivision 12.
44.28 For temporary layoffs that begin before January 1, 2002,
44.29 allowable service credit is, limited to three months allowable
44.30 service per authorized temporary layoff in one calendar year.
44.31 For temporary layoffs that begin on or after January 1, 2002,
44.32 allowable service credit for the calendar month in which the
44.33 member does not receive salary due to the layoff must be
44.34 determined using the following formula:
44.35 (i) members who earned one month of allowable service
44.36 credit for each of the nine calendar months of compensated
45.1 employment with the governmental subdivision authorizing the
45.2 layoff that immediately preceded the layoff shall receive one
45.3 month of allowable service credit, limited to three months of
45.4 allowable service credit per year, for each month of the
45.5 temporary layoff; or
45.6 (ii) members who earned less than nine months of allowable
45.7 service credit in the year of compensated employment with the
45.8 governmental subdivision authorizing the layoff that immediately
45.9 preceded the layoff shall receive allowable service credit on a
45.10 fractional basis for each month of the authorized layoff,
45.11 limited to three months of allowable service credit, determined
45.12 by dividing the total number of months of service credit earned
45.13 for the compensated employment by nine and multiplying the
45.14 resulting number by the total number of months in the layoff
45.15 period that are not compensated An employee who has received the
45.16 maximum service credit allowed for an authorized temporary
45.17 layoff must return to public service and must obtain a minimum
45.18 of three months of allowable service subsequent to the layoff in
45.19 order to receive allowable service for a subsequent authorized
45.20 temporary layoff; or
45.21 (7) a period during which a member is on an authorized
45.22 leave of absence to enter military service in the armed forces
45.23 of the United States, provided that if the member returns to
45.24 public service upon discharge from military service under
45.25 section 192.262 and pays into the fund employee contributions
45.26 based upon the employee's salary at the date of return from
45.27 military service. Payment must be made within a period that is
45.28 three times the length of the military leave period, or within
45.29 five years of the date of discharge from the military service,
45.30 whichever is less. Payment may not be accepted following 20
45.31 days after termination of public service under subdivision 11a.
45.32 The amount of these contributions must be in accord with the
45.33 contribution rates and salary limitations, if any, in effect
45.34 during the leave, plus interest at an annual rate of 8.5 percent
45.35 compounded annually from the date of return to public service to
45.36 the date payment is made. The matching corresponding employer
46.1 contribution, and additional employer contribution under section
46.2 353.27, subdivisions 3 and 3a, if applicable, must be paid by
46.3 the governmental subdivision employing the member upon the
46.4 person's return to public service if the member makes the
46.5 employee contributions. The governmental subdivision involved
46.6 may appropriate money for those payments. A member may not
46.7 receive credit for a voluntary extension of military service at
46.8 the instance of the member beyond the initial period of
46.9 enlistment, induction, or call to active duty. Upon payment,
46.10 the employee must be granted allowable service credit for full
46.11 calendar months or fractions of a month during the leave
46.12 purchased period as described in paragraph (d), clauses (1) and
46.13 (2), based on the salary or compensated hours used in computing
46.14 the payment amount.
46.15 (b) For calculating benefits under sections 353.30, 353.31,
46.16 353.32, and 353.33 for state officers and employees displaced by
46.17 the Community Corrections Act, chapter 401, and transferred into
46.18 county service under section 401.04, "allowable service"
46.19 means the combined years of allowable service as defined in
46.20 paragraph (a), clauses (1) to (6), and section 352.01,
46.21 subdivision 11.
46.22 (c) For a public employee who has prior service covered by
46.23 a local police or firefighters relief association that has
46.24 consolidated with the public employees retirement association or
46.25 to which section 353.665 applies, and who has elected the type
46.26 of benefit coverage provided by the public employees police and
46.27 fire fund either under section 353A.08 following the
46.28 consolidation or under section 353.665, subdivision 4,
46.29 "applicable service" is a period of service credited by the
46.30 local police or firefighters relief association as of the
46.31 effective date of the consolidation based on law and on bylaw
46.32 provisions governing the relief association on the date of the
46.33 initiation of the consolidation procedure.
46.34 (d) For persons who, after January 1, 2002, either first
46.35 become members or terminated membership under subdivision 11b,
46.36 and again become members, of the public employees retirement
47.1 plan, the public employees police and fire plan under this
47.2 chapter, or the local government correctional employee
47.3 retirement plan under chapter 353E, whichever applies,
47.4 "allowable service" means credit for compensated hours from
47.5 which deductions are made, or for which payments are made in
47.6 lieu of salary deductions as provided under this subdivision,
47.7 and which are deposited and credited in the fund as provided in
47.8 section 353.27, determined as follows:
47.9 (1) one month of allowable service credit for each month
47.10 during which the employee has received salary for 80 or more
47.11 compensated hours; or
47.12 (2) a fraction of one month of allowable service for each
47.13 month for which the employee has received salary for less than
47.14 80 compensated hours equal to the percentage relationship that
47.15 the number of compensated hours bear to 80 hours.
47.16 (e) Elected officials and other public employees who are
47.17 compensated solely on an annual basis shall be granted a full
47.18 year of credit for each year for which compensation is earned.
47.19 (f) Allowable service that is determined and credited on a
47.20 fractional basis must be used only in calculating the amount of
47.21 benefits payable. In determining the length of service required
47.22 for vesting, a member shall be granted a month of service credit
47.23 for each month in which the member received compensation from
47.24 which employee contributions were deducted. For periods of
47.25 part-time service that are duplicated service credit, section
47.26 356.30, subdivision 1, paragraphs (g) and (h), govern.
47.27 (g) No member shall may receive more than 12 months of
47.28 allowable service credit in a year either for vesting purposes
47.29 or for benefit calculation purposes.
47.30 (h) (e) "Allowable service" also means a period purchased
47.31 under section 356.555.
47.32 Sec. 5. Minnesota Statutes 2000, section 353.01, is
47.33 amended by adding a subdivision to read:
47.34 Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS'
47.35 COMPENSATION.] (a) A member who is receiving temporary workers'
47.36 compensation payments related to the member's service to the
48.1 public employer and who either is receiving a reduced salary
48.2 from the employer during that period or is receiving no salary
48.3 from the employer during that period is entitled to receive
48.4 allowable service and salary credit for the period of time that
48.5 the member is receiving the workers' compensation payments upon
48.6 making the payments specified in this subdivision.
48.7 (b) The differential salary amount is the difference
48.8 between the average rate of salary received by the member, if
48.9 any, during the period of time that the member is collecting
48.10 temporary workers' compensation payments and the average rate of
48.11 salary of the member on which contributions to the applicable
48.12 plan were made during the period of the last six months of
48.13 covered employment occurring immediately before beginning to
48.14 collect the temporary workers' compensation payments, applied to
48.15 the member's normal employment period, measured in hours or
48.16 otherwise, as applicable.
48.17 (c) To receive eligible service credit, the member shall
48.18 pay an amount equal to the applicable employee contribution rate
48.19 under section 353.27, subdivision 2; 353.65, subdivision 2; or
48.20 353E.03, subdivision 1, as applicable, multiplied by the
48.21 differential salary amount; plus an employer equivalent payment
48.22 equal to the applicable employer contribution rate in section
48.23 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
48.24 subdivision 2, as applicable, multiplied by the differential
48.25 salary amount; plus, if applicable, an equivalent employer
48.26 additional amount equal to the additional employer contribution
48.27 rate in section 353.27, subdivision 3a, multiplied by the
48.28 differential salary amount.
48.29 (d) The employer may, by appropriate action of its
48.30 governing body and documented in its official records, pay the
48.31 employer equivalent contributions and, as applicable, the
48.32 equivalent employer additional contributions on behalf of the
48.33 member.
48.34 (e) Payment under this subdivision must include interest on
48.35 the contribution amount or amounts, whichever applies, at an 8.5
48.36 percent annual rate, prorated for applicable months from the
49.1 date on which the temporary workers' compensation payments
49.2 terminate to the date on which the payment or payments are
49.3 received by the executive director. Payment under this
49.4 subdivision must be completed within one year after the
49.5 termination of the temporary workers' compensation payments to
49.6 the member, or within 20 days after the termination of public
49.7 service by the employee under subdivision 11a, whichever is
49.8 earlier.
49.9 Sec. 6. Minnesota Statutes 2001 Supplement, section
49.10 353.27, subdivision 4, is amended to read:
49.11 Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS;
49.12 MEMBER STATUS.] (a) A representative authorized by the head of
49.13 each department shall deduct employee contributions from the
49.14 salary of each employee who qualifies for membership under this
49.15 chapter and remit payment in a manner prescribed by the
49.16 executive director for the aggregate amount of the employee
49.17 contributions, the employer contributions and the additional
49.18 employer contributions to be received within 14 calendar days.
49.19 The head of each department or the person's designee shall for
49.20 each pay period submit to the association a salary deduction
49.21 report in the format prescribed by the executive director. Data
49.22 required to be submitted as part of salary deduction reporting
49.23 must include, but are not limited to:
49.24 (1) the legal names and social security numbers of
49.25 employees who are members;
49.26 (2) the amount of each employee's salary deduction;
49.27 (3) the amount of salary from which each deduction was
49.28 made;
49.29 (4) the beginning and ending dates of the payroll period
49.30 covered and the date of actual payment; and
49.31 (5) adjustments or corrections covering past pay periods;
49.32 and
49.33 (6) the number of compensated hours of each employee during
49.34 the payroll period.
49.35 (b) Employers must furnish the data required for enrollment
49.36 for each new employee who qualifies for membership in the format
50.1 prescribed by the executive director. The required enrollment
50.2 data on new employees must be submitted to the association prior
50.3 to or concurrent with the submission of the initial employee
50.4 salary deduction. The employer shall also report to the
50.5 association all member employment status changes, such as leaves
50.6 of absence, terminations, and death, and shall report the
50.7 effective dates of those changes, on an ongoing basis for the
50.8 payroll cycle in which they occur. The employer shall furnish
50.9 data, forms, and reports as may be required by the executive
50.10 director for proper administration of the retirement system.
50.11 Before implementing new or different computerized reporting
50.12 requirements, the executive director shall give appropriate
50.13 advance notice to governmental subdivisions to allow time for
50.14 system modifications.
50.15 (c) Notwithstanding paragraph (a), the association may
50.16 provide for less frequent reporting and payments for small
50.17 employers.
50.18 Sec. 7. Minnesota Statutes 2001 Supplement, section
50.19 353.27, subdivision 11, is amended to read:
50.20 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED
50.21 INFORMATION.] All governmental subdivisions shall furnish
50.22 promptly such other information relative to the employment
50.23 status of all employees or former employees, including but not
50.24 limited to payroll abstracts pertaining to all past and present
50.25 employees, as may be requested by the association or its
50.26 executive director, including schedules of salaries applicable
50.27 to various categories of employment, and the number of actual or
50.28 estimated compensated hours for employees. In the event payroll
50.29 abstract records have been lost or destroyed, for whatever
50.30 reason or in whatever manner, so that such schedules of salaries
50.31 cannot be furnished therefrom, the employing governmental
50.32 subdivision, in lieu thereof, shall furnish to the association
50.33 an estimate of the earnings of any employee or former employee
50.34 for any period as may be requested by the association or its
50.35 executive director. Should the association receive such
50.36 schedules of estimated earnings, the executive director is
51.1 hereby authorized to use the same as a basis for making whatever
51.2 computations might be necessary for determining obligations of
51.3 the employee and employer to the retirement fund. If estimates
51.4 are not furnished by the employer pursuant to the request of the
51.5 association or its executive director, the association may
51.6 estimate the obligations of the employee and employer to the
51.7 retirement fund based upon such records as are in its
51.8 possession. Where payroll abstracts have been lost or
51.9 destroyed, the governmental agency need not furnish any
51.10 information pertaining to employment prior to July 1, 1963. The
51.11 association shall make no estimate of any obligation of any
51.12 employee, former employee, or employer covering employment prior
51.13 to July 1, 1963.
51.14 Sec. 8. Minnesota Statutes 2000, section 353.64,
51.15 subdivision 7a, is amended to read:
51.16 Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN
51.17 TRANSIT POLICE OFFICERS.] A person who is employed as a
51.18 full-time police officer on or after the first day of the first
51.19 payroll period after July 1, 1993, by the metropolitan council
51.20 and who is not eligible for coverage under the agreement with
51.21 the Secretary of the federal Department of Health and Human
51.22 Services making the provisions of the federal Old Age,
51.23 Survivors, and Disability Insurance Act because the person's
51.24 position is excluded from application under United States Code,
51.25 sections 418(d)(5)(A) and 418(d)(8)(D), and under section
51.26 355.07, is a member of the public employees police and fire fund
51.27 and is considered to be a police officer within the meaning of
51.28 this section. The metropolitan council shall deduct the
51.29 employee contribution from the salary of each full-time police
51.30 officer as required by section 353.65, subdivision 2, shall make
51.31 the employer contribution for each full-time police officer as
51.32 required by section 353.65, subdivision 3, and shall meet the
51.33 employer recording and reporting requirements in section 353.65,
51.34 subdivision 4.
51.35 Sec. 9. [REPEALER.]
51.36 Minnesota Statutes 2001 Supplement, section 353.01,
52.1 subdivision 39, is repealed.
52.2 Sec. 10. [APPLICATION.]
52.3 Section 8 applies in the counties of Anoka, Carver, Dakota,
52.4 Hennepin, Ramsey, Scott, and Washington.
52.5 Sec. 11. [EFFECTIVE DATE.]
52.6 (a) Except as provided in paragraphs (c) and (d), sections
52.7 1, 2, and 3 are effective on July 1, 2002.
52.8 (b) Sections 4, 6, 7, and 9 are effective retroactively
52.9 from January 1, 2002.
52.10 (c) The amendment to Minnesota Statutes, section 353.01,
52.11 subdivision 2b, clause (12), in section 2, is effective on the
52.12 day after the date on which the governing body of Hennepin
52.13 county and the chief clerical officer of the county complete in
52.14 a timely manner their compliance with Minnesota Statutes,
52.15 section 645.021, subdivisions 2 and 3.
52.16 (d) The amendments to Minnesota Statutes, section 353.01,
52.17 subdivision 2b, clauses (8) and (20), are effective
52.18 retroactively from January 1, 2002.
52.19 (e) Section 5 is effective on the day following final
52.20 enactment.
52.21 (f) Section 8 is effective July 1, 2002, and applies to
52.22 salaries earned by part-time metropolitan transit police
52.23 officers after June 30, 2002.
52.24 ARTICLE 4
52.25 PERA LOCAL GOVERNMENT CORRECTIONAL
52.26 RETIREMENT PLAN MODIFICATIONS
52.27 Section 1. Minnesota Statutes 2000, section 353E.02,
52.28 subdivision 1, is amended to read:
52.29 Subdivision 1. [RETIREMENT COVERAGE.] Local government
52.30 correctional service employees are The members of the local
52.31 government correctional service retirement plan established by
52.32 this chapter are:
52.33 (1) local government correctional service employees as
52.34 defined in subdivision 2; and
52.35 (2) medical center protection officers as defined in
52.36 subdivision 2a.
53.1 Sec. 2. Minnesota Statutes 2000, section 353E.02, is
53.2 amended by adding a subdivision to read:
53.3 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A
53.4 medical center protection officer, for purposes of subdivision
53.5 1, is a person whom the employer certifies:
53.6 (1) is employed by the Hennepin county medical center as a
53.7 protection officer;
53.8 (2) is directly responsible for the direct security of the
53.9 medical center;
53.10 (3) is expected to respond to any incidents within the
53.11 medical center as part of the person's regular employment duties
53.12 and is trained to do so; and
53.13 (4) is a "public employee" as defined in section 353.01,
53.14 but is not a member of the public employees police and fire plan.
53.15 (b) The certification required under paragraph (a) must be
53.16 made in writing on a form prescribed by the executive director
53.17 of the public employees retirement association.
53.18 Sec. 3. Minnesota Statutes 2000, section 353E.03, is
53.19 amended to read:
53.20 353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.]
53.21 Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the
53.22 local government correctional service employee retirement plan
53.23 shall make an employee contribution in an amount equal to 6.01
53.24 5.83 percent of salary.
53.25 Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall
53.26 contribute for a member of the local government correctional
53.27 service employee retirement plan an amount equal to 9.02 8.75
53.28 percent of salary.
53.29 Sec. 4. Laws 2000, chapter 461, article 10, section 3, as
53.30 amended by Laws 2001, First Special Session chapter 10, article
53.31 3, section 28, is amended to read:
53.32 Sec. 3. [EFFECTIVE DATE.]
53.33 Section 1 is effective on the day following final enactment.
53.34 Section 2 is effective on the first day of the first full pay
53.35 period beginning after January 1, 2003.
53.36 Sec. 5. [REPEALER.]
54.1 Laws 2000, chapter 461, article 10, section 2, is repealed.
54.2 Sec. 6. [EFFECTIVE DATE.]
54.3 (a) Sections 1, 2, and 3 are effective on July 1, 2002.
54.4 (b) Section 4 is effective on the day following final
54.5 enactment.
54.6 (c) Section 5 is effective on August 1, 2002.
54.7 ARTICLE 5
54.8 PENSION COVERAGE FOR
54.9 PRIVATIZED PUBLIC HOSPITALS
54.10 Section 1. Minnesota Statutes 2000, section 353F.02,
54.11 subdivision 4, is amended to read:
54.12 Subd. 4. [MEDICAL FACILITY.] "Medical facility" means:
54.13 (1) the Glencoe area health center;
54.14 (2) the Luverne public hospital; and
54.15 (3) the Waconia-Ridgeview medical center.; and
54.16 (4) the Kanabec hospital.
54.17 Sec. 2. [EFFECTIVE DATE.]
54.18 Section 1 is effective upon the latter of:
54.19 (1) the day after the governing body of Kanabec county and
54.20 its chief clerical officer timely complete their compliance with
54.21 Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
54.22 (2) the first day of the month next following certification
54.23 to the Kanabec county board by the executive director of the
54.24 public employees retirement association that the actuarial
54.25 accrued liability of the special benefit coverage proposed for
54.26 extension to the privatized Kanabec hospital employees under
54.27 section 1 does not exceed the actuarial gain otherwise to be
54.28 accrued by the public employees retirement association, as
54.29 calculated by the consulting actuary retained by the legislative
54.30 commission on pensions and retirement. The cost of the
54.31 actuarial calculations must be borne by the Kanabec hospital.
54.32 ARTICLE 6
54.33 CLOSED CHARTER SCHOOL
54.34 UNPAID RETIREMENT CONTRIBUTIONS
54.35 Section 1. Minnesota Statutes 2001 Supplement, section
54.36 354.05, subdivision 2, is amended to read:
55.1 Subd. 2. [TEACHER.] (a) "Teacher" means:
55.2 (1) a person who renders service as a teacher, supervisor,
55.3 principal, superintendent, librarian, nurse, counselor, social
55.4 worker, therapist, or psychologist in the a public schools
55.5 school of the state located outside of the corporate limits of
55.6 the cities a city of the first class, or in any charter school,
55.7 irrespective of the location of the school, or in any
55.8 charitable, penal, or correctional institutions of a
55.9 governmental subdivision, or who is engaged in educational
55.10 administration in connection with the state public school
55.11 system, but excluding the University of Minnesota, whether the
55.12 position be a public office or an employment, not including
55.13 members or officers of any general governing or managing board
55.14 or body;
55.15 (2) an employee of the teachers retirement association;
55.16 (3) a person who renders teaching service on a part-time
55.17 basis and who also renders other services for a single employing
55.18 unit. A person whose teaching service comprises at least 50
55.19 percent of the combined employment salary is a member of the
55.20 association for all services with the single employing unit. If
55.21 the person's teaching service comprises less than 50 percent of
55.22 the combined employment salary, the executive director must
55.23 determine whether all or none of the combined service is covered
55.24 by the association; or
55.25 (4) a person who is not covered by the plans established
55.26 under chapter 352D, 354A, or 354B and who is employed by the
55.27 board of trustees of the Minnesota state colleges and
55.28 universities system in an unclassified position as:
55.29 (i) a president, vice-president, or dean;
55.30 (ii) a manager or a professional in an academic or an
55.31 academic support program other than specified in item (i);
55.32 (iii) an administrative or a service support faculty
55.33 position; or
55.34 (iv) a teacher or a research assistant.
55.35 (b) Teacher "Teacher" does not mean:
55.36 (1) a person who works for a school or institution as an
56.1 independent contractor as defined by the Internal Revenue
56.2 Service;
56.3 (2) a person employed in subsidized on-the-job training,
56.4 work experience or public service employment as an enrollee
56.5 under the federal Comprehensive Employment and Training Act from
56.6 and after March 30, 1978, unless the person has, as of the later
56.7 of March 30, 1978, or the date of employment, sufficient service
56.8 credit in the retirement association to meet the minimum vesting
56.9 requirements for a deferred retirement annuity, or the employer
56.10 agrees in writing on forms prescribed by the executive director
56.11 to make the required employer contributions, including any
56.12 employer additional contributions, on account of that person
56.13 from revenue sources other than funds provided under the federal
56.14 Comprehensive Training and Employment Act, or the person agrees
56.15 in writing on forms prescribed by the executive director to make
56.16 the required employer contribution in addition to the required
56.17 employee contribution;
56.18 (3) a person holding a part-time adult supplementary
56.19 technical college license who renders part-time teaching service
56.20 or a customized trainer as defined by the Minnesota state
56.21 colleges and universities system in a technical college if (i)
56.22 the service is incidental to the regular nonteaching occupation
56.23 of the person; and (ii) the applicable technical college
56.24 stipulates annually in advance that the part-time teaching
56.25 service or customized training service will not exceed 300 hours
56.26 in a fiscal year and retains the stipulation in its records; and
56.27 (iii) the part-time teaching service or customized training
56.28 service actually does not exceed 300 hours in a fiscal year; or
56.29 (4) a person exempt from licensure under section 122A.30.
56.30 Sec. 2. Minnesota Statutes 2000, section 354A.011,
56.31 subdivision 27, is amended to read:
56.32 Subd. 27. [TEACHER.] (a) "Teacher" means any person who
56.33 renders service in for a public school district, other than a
56.34 charter school, located in the corporate limits of one of the
56.35 cities of the first class which was so classified on January 1,
56.36 1979, as any of the following:
57.1 (a) (1) a full-time employee in a position for which a
57.2 valid license from the state department of children, families,
57.3 and learning is required;
57.4 (b) (2) an employee of the teachers retirement fund
57.5 association located in the city of the first class unless the
57.6 employee has exercised the option pursuant to Laws 1955, chapter
57.7 10, section 1, to retain membership in the Minneapolis employees
57.8 retirement fund established pursuant to chapter 422A;
57.9 (c) (3) a part-time employee in a position for which a
57.10 valid license from the state department of children, families,
57.11 and learning is required; or
57.12 (d) (4) a part-time employee in a position for which a
57.13 valid license from the state department of children, families,
57.14 and learning is required who also renders other nonteaching
57.15 services for the school district, unless the board of trustees
57.16 of the teachers retirement fund association determines that the
57.17 combined employment is on the whole so substantially dissimilar
57.18 to teaching service that the service shall may not be covered by
57.19 the association.
57.20 (b) The term shall does not mean any person who renders
57.21 service in the school district as any of the following:
57.22 (1) an independent contractor or the employee of an
57.23 independent contractor;
57.24 (2) an employee who is a full-time teacher covered by the
57.25 teachers retirement association or by another teachers
57.26 retirement fund association established pursuant to this chapter
57.27 or chapter 354;
57.28 (3) an employee exempt from licensure pursuant to section
57.29 122A.30;
57.30 (4) an employee who is a teacher in a technical college
57.31 located in a city of the first class unless the person elects
57.32 coverage by the applicable first class city teacher retirement
57.33 fund association under section 354B.21, subdivision 2; or
57.34 (5) a teacher employed by a charter school, irrespective of
57.35 the location of the school; or
57.36 (6) an employee who is a part-time teacher in a technical
58.1 college in a city of the first class and who has elected
58.2 coverage by the applicable first class city teacher retirement
58.3 fund association under section 354B.21, subdivision 2, but (i)
58.4 the teaching service is incidental to the regular nonteaching
58.5 occupation of the person; (ii) the applicable technical college
58.6 stipulates annually in advance that the part-time teaching
58.7 service will not exceed 300 hours in a fiscal year; and (iii)
58.8 the part-time teaching actually does not exceed 300 hours in the
58.9 fiscal year to which the certification applies.
58.10 Sec. 3. Minnesota Statutes 2000, section 354A.12,
58.11 subdivision 3d, is amended to read:
58.12 Subd. 3d. [SUPPLEMENTAL ADMINISTRATIVE EXPENSE
58.13 ASSESSMENT.] (a) The active and retired membership of the
58.14 Minneapolis teachers retirement fund association and of the St.
58.15 Paul teachers retirement fund association is responsible for
58.16 defraying supplemental administrative expenses other than
58.17 investment expenses of the respective teacher retirement fund
58.18 association.
58.19 (b) Investment expenses of the teachers retirement fund
58.20 association are those expenses incurred by or on behalf of the
58.21 retirement fund in connection with the investment of the assets
58.22 of the retirement fund other than investment security
58.23 transaction costs. Other administrative expenses are all
58.24 expenses incurred by or on behalf of the retirement fund for all
58.25 other retirement fund functions other than the investment of
58.26 retirement fund assets. Investment and other administrative
58.27 expenses must be accounted for using generally accepted
58.28 accounting principles and in a manner consistent with the
58.29 comprehensive annual financial report of the teachers retirement
58.30 fund association for the immediately previous fiscal year under
58.31 section 356.20.
58.32 (c) Supplemental administrative expenses other than
58.33 investment expenses of a first class city teacher retirement
58.34 fund association are those expenses for the fiscal year that:
58.35 (1) exceed, for the St. Paul teachers retirement fund
58.36 association $443,745, or for the Minneapolis teacher retirement
59.1 fund association $671,513, plus, in each case, an additional
59.2 amount derived by applying the percentage increase in the
59.3 consumer price index for urban wage earners and clerical workers
59.4 all items index published by the Bureau of Labor Statistics of
59.5 the United States Department of Labor since July 1, 2001, to the
59.6 applicable dollar amount; and
59.7 (2) exceed the amount computed by applying the most recent
59.8 percentage of pay administrative expense amount, other than
59.9 investment expenses, for the teachers retirement association
59.10 governed by chapter 354 to the covered payroll of the respective
59.11 teachers retirement fund association for the fiscal year.
59.12 (d) The board of trustees of each first class city teachers
59.13 retirement fund association shall allocate the total dollar
59.14 amount of supplemental administrative expenses other than
59.15 investment expenses determined under paragraph (c), clause (2),
59.16 among the various active and retired membership groups of the
59.17 teachers retirement fund association and shall assess the
59.18 various membership groups their respective share of the
59.19 supplemental administrative expenses other than investment
59.20 expenses, in amounts determined by the board of trustees. The
59.21 supplemental administrative expense assessments must be paid by
59.22 the membership group in a manner determined by the board of
59.23 trustees of the respective teachers retirement association.
59.24 Supplemental administrative expenses payable by the active
59.25 members of the pension plan must be picked up by the employer in
59.26 accordance with section 356.62.
59.27 (e) With respect to the St. Paul teachers retirement fund
59.28 association, the supplemental administrative expense assessment
59.29 must be fully disclosed to the various active and retired
59.30 membership groups of the teachers retirement fund association.
59.31 The chief administrative officer of the St. Paul teachers
59.32 retirement fund association shall prepare a supplemental
59.33 administrative expense assessment disclosure notice, which must
59.34 include the following:
59.35 (1) the total amount of administrative expenses of the St.
59.36 Paul teachers retirement fund association, the amount of the
60.1 investment expenses of the St. Paul teachers retirement fund
60.2 association, and the net remaining amount of administrative
60.3 expenses of the St. Paul teachers retirement fund association;
60.4 (2) the amount of administrative expenses for the St. Paul
60.5 teachers retirement fund association that would be equivalent to
60.6 the teachers retirement association noninvestment administrative
60.7 expense level described in paragraph (c);
60.8 (3) the total amount of supplemental administrative
60.9 expenses required for assessment calculated under paragraph (c);
60.10 (4) the portion of the total amount of the supplemental
60.11 administrative expense assessment allocated to each membership
60.12 group and the rationale for that allocation;
60.13 (5) the manner of collecting the supplemental
60.14 administrative expense assessment from each membership group,
60.15 the number of assessment payments required during the year, and
60.16 the amount of each payment or the procedure used to determine
60.17 each payment; and
60.18 (6) any other information that the chief administrative
60.19 officer determines is necessary to fairly portray the manner in
60.20 which the supplemental administrative expense assessment was
60.21 determined and allocated.
60.22 (f) The disclosure notice must be provided annually in the
60.23 annual report of the association.
60.24 (g) The supplemental administrative expense assessments
60.25 must be deposited in the applicable teachers retirement fund
60.26 upon receipt.
60.27 (h) Any omitted active membership group assessments that
60.28 remain undeducted and unpaid to the teachers retirement fund
60.29 association for 90 days must be paid by the respective school
60.30 district. The school district may recover any omitted active
60.31 membership group assessment amounts that it has previously
60.32 paid. The teachers retirement fund association shall deduct any
60.33 omitted retired membership group assessment amounts from the
60.34 benefits next payable after the discovery of the omitted amounts.
60.35 Sec. 4. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL
60.36 RETIREMENT CONTRIBUTIONS.]
61.1 Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of
61.2 Minnesota shall make any unpaid employee, employer, and employer
61.3 additional contributions to the applicable retirement
61.4 association for teaching or other service in a designated
61.5 charter school which closed before April 1, 2002, without having
61.6 paid the required contributions to the retirement association.
61.7 (b) By June 1, 2002, the chief administrative officer of
61.8 the retirement association shall certify to the commissioner of
61.9 children, families, and learning the amount of accrued
61.10 contributions, plus applicable interest, which were not paid by
61.11 each designated charter school before its closure. On July 1,
61.12 2002, the commissioner of children, families, and learning shall
61.13 pay the amounts certified from the state total building lease
61.14 aid otherwise payable under Minnesota Statutes, section 124D.11,
61.15 subdivision 4a, to the affected retirement associations. The
61.16 forecasted amount of charter school lease aid must not be
61.17 adjusted to reflect the amount remitted under this section.
61.18 Rather, charter school lease aid must be prorated by the amount
61.19 remitted. The commissioner shall remit directly to the
61.20 retirement association the amounts certified under this
61.21 section. The applicable retirement association shall credit
61.22 employee contribution payments to the applicable member accounts
61.23 and shall credit to the applicable members allowable and formula
61.24 service and covered salary for the period when the teaching or
61.25 other service was actually performed in the charter school.
61.26 State payments representing unpaid employee contributions must
61.27 be considered accumulated employee or member deductions for
61.28 purposes of Minnesota Statutes, section 353.34; 354.49; or
61.29 354A.37.
61.30 Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section
61.31 applies to the following public retirement associations
61.32 providing retirement coverage for employees in charter schools:
61.33 (1) the teachers retirement association;
61.34 (2) the Minneapolis teachers retirement fund association;
61.35 (3) the St. Paul teachers retirement fund association;
61.36 (4) the Duluth teachers retirement fund association; and
62.1 (5) the public employees retirement association.
62.2 Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section
62.3 applies to the Frederick Douglass charter school and any other
62.4 charter school that is determined by the commissioner of
62.5 children, families, and learning to have closed before April 1,
62.6 2002.
62.7 Sec. 5. [CONTINUING RECOVERY AUTHORITY.]
62.8 Nothing in section 4 relieves the sponsor of a closed
62.9 charter school and the operator of a closed charter school from
62.10 any financial responsibility that those parties may have to pay
62.11 unpaid employee, employer, or employer additional contributions
62.12 to the applicable public retirement plans. The commissioner of
62.13 revenue shall undertake all reasonable efforts to recover these
62.14 amounts. Any recovered amounts must be deposited in the general
62.15 fund and are appropriated to the department of children,
62.16 families, and learning to offset the payment of unpaid
62.17 contributions under section 4.
62.18 Sec. 6. [EFFECTIVE DATE.]
62.19 (a) Sections 1 and 2 are effective on July 1, 2002.
62.20 (b) Sections 4 and 5 are effective on the day following
62.21 final enactment.
62.22 ARTICLE 7
62.23 TEACHER RETIREMENT PLANS
62.24 SERVICE CREDIT PURCHASE
62.25 DEADLINE EXTENSION
62.26 Section 1. Laws 1999, chapter 222, article 16, section 16,
62.27 is amended to read:
62.28 Sec. 16. [REPEALER.]
62.29 Sections 1 to 13 are repealed on May 16, 2002 2003.
62.30 Sec. 2. Laws 2000, chapter 461, article 12, section 20, is
62.31 amended to read:
62.32 Sec. 20. [EFFECTIVE DATE.]
62.33 (a) Sections 4, 5, and 11 to 20 are effective on the day
62.34 following final enactment.
62.35 (b) Sections 1, 2, 3, and 6 to 10 are effective on the day
62.36 following final enactment and apply retroactively to a faculty
63.1 member of the Lake Superior College who was granted an extended
63.2 leave of absence under article 19, section 4, of the united
63.3 technical college educators master agreement for the 1999-2000
63.4 academic year prior to March 20, 2000.
63.5 (c) Sections 5, 11, and 14, paragraph (c), expire on May
63.6 16, 2002 2003.
63.7 Sec. 3. Laws 2001, First Special Session chapter 10,
63.8 article 6, section 21, is amended to read:
63.9 Sec. 21. [EXPIRATION DATE.]
63.10 (a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17,
63.11 18, 19, and 20 expire May 16, 2003.
63.12 (b) Sections 9 and 15 expire May 16, 2002 2003.
63.13 Sec. 4. [EFFECTIVE DATE.]
63.14 Sections 1 to 3 are effective on the day following final
63.15 enactment.
63.16 ARTICLE 8
63.17 RECODIFICATION OF SOCIAL
63.18 SECURITY COVERAGE PROVISIONS
63.19 Section 1. Minnesota Statutes 2000, section 355.01,
63.20 subdivision 1, is amended to read:
63.21 Subdivision 1. [IN GENERAL.] For the purposes of this
63.22 chapter, as amended, each of the terms defined in this section
63.23 have has the meanings meaning ascribed to them herein.
63.24 Sec. 2. Minnesota Statutes 2000, section 355.01, is
63.25 amended by adding a subdivision to read:
63.26 Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional
63.27 officer" means a person who serves as the governor, lieutenant
63.28 governor, attorney general, secretary of state, state auditor,
63.29 or state treasurer, who is duly elected and who was sworn into
63.30 office.
63.31 Sec. 3. Minnesota Statutes 2000, section 355.01, is
63.32 amended by adding a subdivision to read:
63.33 Subd. 2b. [DIRECTOR.] "Director" means the executive
63.34 director of the public employees retirement association.
63.35 Sec. 4. Minnesota Statutes 2000, section 355.01, is
63.36 amended by adding a subdivision to read:
64.1 Subd. 2c. [DULUTH TEACHER.] "Duluth teacher" means a
64.2 person employed by independent school district No. 709, Duluth,
64.3 who holds a position covered by the Duluth teachers retirement
64.4 fund association established under chapter 354A.
64.5 Sec. 5. Minnesota Statutes 2000, section 355.01, is
64.6 amended by adding a subdivision to read:
64.7 Subd. 2d. [EDUCATIONAL EMPLOYEE.] "Educational employee"
64.8 means an employee of the state of Minnesota or of a public
64.9 subdivision of the state who performs services in a position
64.10 covered by the teachers retirement association under chapter 354.
64.11 Sec. 6. Minnesota Statutes 2000, section 355.01, is
64.12 amended by adding a subdivision to read:
64.13 Subd. 2e. [EMPLOYEE.] "Employee" means a person employed
64.14 by the state of Minnesota or by a political subdivision of the
64.15 state and includes an officer of the state of Minnesota or of a
64.16 political subdivision of the state.
64.17 Sec. 7. Minnesota Statutes 2000, section 355.01, is
64.18 amended by adding a subdivision to read:
64.19 Subd. 2f. [EMPLOYEE TAX.] "Employee tax" means the tax
64.20 imposed by section 3101 of the Internal Revenue Code of 1986.
64.21 Sec. 8. Minnesota Statutes 2000, section 355.01,
64.22 subdivision 3, is amended to read:
64.23 Subd. 3. [EMPLOYMENT.] The term (a) "Employment" means any
64.24 service performed by an employee in the employ of the state, or
64.25 any political subdivision thereof, for such that employer,
64.26 except:
64.27 (1) service which in the absence of an agreement entered
64.28 into under this chapter, as amended, would constitute
64.29 "employment" as defined in the Social Security act; or
64.30 (2) service which under the Social Security Act may is not
64.31 permitted to be included in an agreement between the state and
64.32 the federal Secretary of Health, Education, and Welfare Human
64.33 Services entered into under this chapter, as amended.
64.34 (b) Service which under the Social Security Act may is
64.35 permitted to be included in an agreement only upon certification
64.36 by the governor in accordance with section 218(d) (3) of that
65.1 act shall must be included in the term "employment" if and when
65.2 the governor issues, with respect to such that service, a the
65.3 appropriate federal certificate to the federal Secretary of
65.4 Health, Education, and Welfare Human Services.
65.5 Sec. 9. Minnesota Statutes 2000, section 355.01, is
65.6 amended by adding a subdivision to read:
65.7 Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal
65.8 Insurance Contributions Act" means subchapters A and B of
65.9 chapter 21 of the Internal Revenue Code of 1986, as amended
65.10 through December 31, 2000.
65.11 Sec. 10. Minnesota Statutes 2000, section 355.01, is
65.12 amended by adding a subdivision to read:
65.13 Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer"
65.14 means any political subdivision as defined in section 218 of the
65.15 Social Security Act. The term includes a city, county, town,
65.16 hospital district, or other body, politic and corporate, located
65.17 in Minnesota.
65.18 Sec. 11. Minnesota Statutes 2000, section 355.01, is
65.19 amended by adding a subdivision to read:
65.20 Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education
65.21 employee" means an employee of the state of Minnesota who
65.22 performs services in a Minnesota state colleges and universities
65.23 system in a position covered by the individual retirement
65.24 account plan under section 354B.21 and who remains a member of
65.25 the teachers retirement association for purposes of social
65.26 security coverage only.
65.27 Sec. 12. Minnesota Statutes 2000, section 355.01, is
65.28 amended by adding a subdivision to read:
65.29 Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means
65.30 an officer or employee of a public hospital who performs
65.31 services in a position covered by the public employees
65.32 retirement association under chapter 353.
65.33 Sec. 13. Minnesota Statutes 2000, section 355.01, is
65.34 amended by adding a subdivision to read:
65.35 Subd. 3e. [JUDGE.] "Judge" means a judge as defined in
65.36 section 490.121, subdivision 3.
66.1 Sec. 14. Minnesota Statutes 2000, section 355.01, is
66.2 amended by adding a subdivision to read:
66.3 Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the
66.4 legislature who is duly elected and who was sworn into office.
66.5 Sec. 15. Minnesota Statutes 2000, section 355.01, is
66.6 amended by adding a subdivision to read:
66.7 Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local
66.8 governmental subdivision" means:
66.9 (1) a political subdivision as defined in section 218(b) of
66.10 the Social Security Act;
66.11 (2) an instrumentality of the state;
66.12 (3) an instrumentality of one or more of the political
66.13 subdivisions of the state, including the league of Minnesota
66.14 cities;
66.15 (4) an instrumentality of the state and one or more of its
66.16 political subdivisions;
66.17 (5) a governmental subdivision as defined in section
66.18 353.01, subdivision 6; and
66.19 (6) any instrumentality established under a joint powers
66.20 agreement under section 471.59 wherein the instrumentality is
66.21 responsible for the employment and the payment of the salaries
66.22 of the employees of the instrumentality.
66.23 Sec. 16. Minnesota Statutes 2000, section 355.01, is
66.24 amended by adding a subdivision to read:
66.25 Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher"
66.26 means a person employed by special school district No. 1,
66.27 Minneapolis, who holds a position covered by the Minneapolis
66.28 teachers retirement fund association established under chapter
66.29 354A.
66.30 Sec. 17. Minnesota Statutes 2000, section 355.01, is
66.31 amended by adding a subdivision to read:
66.32 Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision"
66.33 means any political subdivision as defined in section 218(b) of
66.34 the Social Security Act, and includes any instrumentality of the
66.35 state, any instrumentality of one or more of its political
66.36 subdivisions, including the league of Minnesota municipalities,
67.1 any instrumentality of the state and one or more of its
67.2 political subdivisions, and an instrumentality established under
67.3 a joint powers agreement under section 471.59, wherein the
67.4 instrumentality is responsible for the employment and payment of
67.5 the salaries of employees of the instrumentality.
67.6 Sec. 18. Minnesota Statutes 2000, section 355.01, is
67.7 amended by adding a subdivision to read:
67.8 Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an
67.9 officer or an employee of a local governmental subdivision of
67.10 the state who performs services in a position covered by the
67.11 public employees retirement association established under
67.12 chapter 353.
67.13 Sec. 19. Minnesota Statutes 2000, section 355.01, is
67.14 amended by adding a subdivision to read:
67.15 Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a
67.16 hospital that is owned or operated by a governmental employer or
67.17 a combination of governmental employers, or a hospital that is
67.18 an integral part of a governmental employer or of a combination
67.19 of governmental employers.
67.20 Sec. 20. Minnesota Statutes 2000, section 355.01, is
67.21 amended by adding a subdivision to read:
67.22 Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a
67.23 person employed by independent school district No. 625, St.
67.24 Paul, who holds a position covered by the St. Paul teachers
67.25 retirement fund association established under chapter 354A.
67.26 Sec. 21. Minnesota Statutes 2000, section 355.01,
67.27 subdivision 6, is amended to read:
67.28 Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.] The
67.29 term "Secretary of Health, Education, and Welfare Human Services"
67.30 means the secretary of the federal Department of Health and
67.31 Human Services and includes any individual to whom the Secretary
67.32 of Health, Education, and Welfare Human Services has delegated
67.33 any functions under the Social Security Act with respect to
67.34 coverage under such act of employees of states and their
67.35 political subdivisions.
67.36 Sec. 22. Minnesota Statutes 2000, section 355.01,
68.1 subdivision 8, is amended to read:
68.2 Subd. 8. [SOCIAL SECURITY ACT.] The term "Social Security
68.3 Act" means the Act of Congress approved August 14, 1935, chapter
68.4 531, Statutes at Large, volume 49, page 620, officially cited as
68.5 the "Social Security Act," as such act has been and may from
68.6 time to time be amended (including the relevant regulations and
68.7 requirements issued pursuant thereto).
68.8 Sec. 23. Minnesota Statutes 2000, section 355.01, is
68.9 amended by adding a subdivision to read:
68.10 Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special
68.11 authority or district" means a municipal housing and
68.12 redevelopment authority organized under sections 469.001 to
68.13 469.047, a soil and water conservation district organized under
68.14 chapter 103C, a port authority organized under sections 469.048
68.15 to 469.068, an economic development authority organized under
68.16 sections 469.090 to 469.108, or a hospital district organized or
68.17 reorganized under sections 447.31 to 447.37.
68.18 Sec. 24. Minnesota Statutes 2000, section 355.01, is
68.19 amended by adding a subdivision to read:
68.20 Subd. 12. [SPECIAL AUTHORITY OR DISTRICT
68.21 EMPLOYEE.] "Special authority or district employee" means an
68.22 employee, other than an elected official, of a municipal housing
68.23 and redevelopment authority organized under sections 469.001 to
68.24 469.047, of a soil and water conservation district organized
68.25 under chapter 103C, of a port authority organized under sections
68.26 469.048 to 469.068, of an economic development authority
68.27 organized under sections 469.090 to 469.108, or of a hospital
68.28 district organized or reorganized under sections 447.31 to
68.29 447.37.
68.30 Sec. 25. Minnesota Statutes 2000, section 355.01, is
68.31 amended by adding a subdivision to read:
68.32 Subd. 13. [STATE EMPLOYEE.] "State employee" means an
68.33 employee of the state of Minnesota or of a political subdivision
68.34 who performs services in a position covered by the general state
68.35 employees retirement plan of the Minnesota state retirement
68.36 system governed by chapter 352, except any position for which
69.1 the compensation is on a fee basis.
69.2 Sec. 26. Minnesota Statutes 2000, section 355.01, is
69.3 amended by adding a subdivision to read:
69.4 Subd. 14. [WAGES.] "Wages" means all remuneration for
69.5 employment, including the cash value of all remuneration paid in
69.6 any medium other than cash. The term does not include that part
69.7 of the remuneration which, even if it were for employment within
69.8 the meaning of the Federal Insurance Contributions Act, would
69.9 not constitute wages within the meaning of that act.
69.10 Sec. 27. Minnesota Statutes 2000, section 355.02, is
69.11 amended to read:
69.12 355.02 [AGREEMENTS.]
69.13 Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency
69.14 director, with the approval of the governor, is hereby
69.15 authorized to enter into an agreement on behalf of the state
69.16 with the federal Secretary of Health, Education, and Welfare
69.17 Human Services, consistent with the terms and provisions of this
69.18 chapter, as amended, for the purpose of extending the benefits
69.19 of the federal old age and, survivors, and disability insurance
69.20 system to employees of the state or any political subdivision
69.21 thereof with respect to services specified in such the agreement
69.22 which constitute "employment," whenever so specifically
69.23 authorized by the statutory provisions of this state pertaining
69.24 to any coverage group of such employees to which the agreement
69.25 may become applicable under the Social Security Act.
69.26 Pursuant to such (b) Under this specific authorization the
69.27 agreement may contain such those provisions relating to
69.28 coverage, benefits, contributions, effective date, modification
69.29 and termination of the agreement, administration, and other
69.30 appropriate provisions as the state agency director and the
69.31 federal Secretary of Health, Education, and Welfare Human
69.32 Services shall agree upon, but, except as may be otherwise
69.33 required by or under the Social Security Act as to the services
69.34 to be covered, such agreement shall must provide in effect that:
69.35 (1) benefits will be provided for employees whose services
69.36 are covered by the agreement (and their dependents and
70.1 survivors) on the same basis as though such those services
70.2 constituted employment within the meaning of title II of the
70.3 Social Security Act;
70.4 (2) the state or other employer will pay to the federal
70.5 Secretary of the Treasury, at such time or times as may be
70.6 prescribed under the Social Security Act, contributions with
70.7 respect to wages, equal to the sum of the taxes which would be
70.8 imposed by the Federal Insurance Contributions Act if the
70.9 services covered by the agreement constituted employment within
70.10 the meaning of that act;
70.11 (3) Such the agreement shall be is effective with respect
70.12 to services in employment covered by the agreement performed
70.13 after a date specified therein but in no event may it be
70.14 effective with respect to any such services performed prior to
70.15 the first day of the calendar year in which such agreement is
70.16 entered into or in which the modification of the agreement
70.17 making it applicable to such services, is entered into except
70.18 that an agreement or modification entered into prior to January
70.19 1, 1960, may be effective with respect to services performed
70.20 after December 31, 1955, or after a later date specified in such
70.21 agreement or modification; and
70.22 (4) all services which constitute employment and are
70.23 performed in the employ of the state or any of its political
70.24 subdivisions by employees thereof, may be covered by such the
70.25 agreement whenever so specifically authorized by the statutory
70.26 provisions of this state pertaining to any coverage group of
70.27 such employees to which the agreement may become applicable
70.28 under the Social Security Act.
70.29 Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any
70.30 instrumentality jointly created by this state and any other
70.31 state or states is hereby authorized, upon the granting of like
70.32 authority by such the other state or states, to:
70.33 (1) to enter into an agreement with the federal Secretary
70.34 of Health, Education, and Welfare Human Services whereby the
70.35 benefits of the federal old age and, survivors, and disability
70.36 insurance system shall be are extended to employees of such the
71.1 instrumentality,;
71.2 (2) to require its employees to pay (and for that purpose
71.3 to deduct from their wages) contributions equal to the amounts
71.4 which they would be required to pay under section 355.03,
71.5 subdivision 1, if they were covered by an agreement made
71.6 pursuant to under subdivision 1,; and
71.7 (3) to make payments to the federal Secretary of the
71.8 Treasury in accordance with such that agreement, including
71.9 payments from its own funds, and otherwise to comply with such
71.10 those agreements. Such
71.11 (b) The agreements shall must, to the extent practicable,
71.12 be consistent with the terms and provisions of subdivision 1 and
71.13 other provisions of this chapter, as amended.
71.14 Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The
71.15 following groups must be covered by an agreement or a
71.16 modification to an agreement between the state agency and the
71.17 federal Secretary of Health and Human Services:
71.18 (1) constitutional officers;
71.19 (2) Duluth teachers;
71.20 (3) educational employees;
71.21 (4) higher education employees;
71.22 (5) hospital employees;
71.23 (6) judges;
71.24 (7) legislators;
71.25 (8) Minneapolis teachers;
71.26 (9) public employees;
71.27 (10) St. Paul teachers;
71.28 (11) special authority or district employees; and
71.29 (12) state employees.
71.30 Sec. 28. Minnesota Statutes 2000, section 355.03, is
71.31 amended to read:
71.32 355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.]
71.33 Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every
71.34 employee of the state, or of any of its political subdivisions,
71.35 whose services are covered by the agreement entered into under
71.36 section 355.02 shall be required to must pay for the period
72.1 of such the coverage, into the contribution fund established by
72.2 section 355.04, contributions, with respect to wages, equal to
72.3 the amount of the employee's tax which would be imposed by the
72.4 Federal Insurance Contributions Act if such those services
72.5 constituted employment within the meaning of that act.
72.6 Such This liability shall arise arises in consideration of the
72.7 employee's retention in the service of the state, or any of its
72.8 political subdivisions, or the employee's entry upon such that
72.9 service, after the enactment of this chapter, as amended.
72.10 Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by
72.11 this section shall must be collected by the covered employee's
72.12 employer by deducting the amount of the contribution from wages
72.13 as and when paid, but. The failure to make such deduction shall
72.14 does not relieve the employee from liability for such
72.15 contribution.
72.16 Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer
72.17 contributions that are required under the agreement must be paid
72.18 by the applicable employing unit.
72.19 (b) Employer contributions on behalf of St. Paul teachers,
72.20 Duluth teachers, Minneapolis teachers, or education employees
72.21 may be paid from normal school operating funds. Employer
72.22 contributions on behalf of state employees must be paid by the
72.23 applicable department or agency from its appropriation or other
72.24 revenue, in the same proportion as salaries are paid, and must
72.25 be charged as an administrative cost of the state governmental
72.26 unit.
72.27 (c) Employing units may pay the employer contribution from
72.28 taxes collected or from other governmental revenue. An
72.29 employing unit may include in its tax levy the amount necessary
72.30 to pay its social security obligations. If the taxes authorized
72.31 to be levied cause the total levy amount to exceed any
72.32 limitation on the power of the employing unit to levy taxes, the
72.33 unit may still levy the necessary amount. The employing unit,
72.34 in the event of a deficit, may issue debt obligations, payable
72.35 in not more than two years, in an amount which may cause its
72.36 indebtedness to exceed any limitation without holding an
73.1 election and may levy taxes to amortize the indebtedness. The
73.2 authorized social security expenditures must not be included in
73.3 computing the cost of government for purposes of any home rule
73.4 charter or other charter.
73.5 (d) If the required employer contribution for social
73.6 security is increased and, as a result of that increase, there
73.7 is insufficient money available to a state governmental unit,
73.8 there is appropriated to the state department or agency from the
73.9 general fund the amount required to meet the deficiency, based
73.10 on certifications from the director to the commissioner of
73.11 finance. The transfer of the appropriated amount may only occur
73.12 after the commissioner of finance notifies the chair and ranking
73.13 minority member of the house committee on ways and means and the
73.14 chair and ranking minority member of the senate finance
73.15 committee of the amount to be transferred.
73.16 (e) For members of the general state employees retirement
73.17 plan of the Minnesota state retirement system who are employed
73.18 by the state horticultural society, the department of Minnesota
73.19 for the disabled American veterans organization, the department
73.20 of Minnesota of the veterans of foreign wars organization, the
73.21 Minnesota crop improvement association, the Minnesota historical
73.22 society, the armory building commission, and the
73.23 Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project,
73.24 the applicable employing unit must pay the employer contribution
73.25 from any revenue source that it has.
73.26 Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the
73.27 correct amount of the contribution imposed by this section is
73.28 paid or deducted with respect to any remuneration, proper
73.29 adjustments, or refund if adjustment is impracticable, shall
73.30 must be made, without interest, in such manner and at such times
73.31 as the state agency shall prescribe director prescribes.
73.32 Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that
73.33 are due under this chapter, with compound interest at the rate
73.34 of six percent per annum, may be recovered by legal action in a
73.35 court of competent jurisdiction against an employing unit that
73.36 is liable for the amount. The director may request that the
74.1 delinquent payment and interest amount be deducted from any
74.2 other money that is payable to the applicable employing unit by
74.3 any department or agency of the state. An action for the
74.4 recovery of delinquent payments is not subject to any statutory
74.5 provision that would otherwise limit the time within which an
74.6 action may be commenced.
74.7 Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.]
74.8 An employing unit which employs a member of a covered group
74.9 must reimburse the state agency for its pro rata share of the
74.10 cost of the administration of the agency with respect to social
74.11 security coverage in accordance with the rules of the director
74.12 pertaining to this reimbursement.
74.13 Sec. 30. [355.036] [REPORTS.]
74.14 An employing unit which employs a member of a covered group
74.15 must make any reports in the form required and must include the
74.16 information that the director requires. An employing unit also
74.17 must comply with the reporting requirements that the director or
74.18 the federal Secretary of Health and Human Services may from time
74.19 to time determine are necessary to ensure the correctness and
74.20 verification of relevant information.
74.21 Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.]
74.22 The proceeds of the special benefit taxes that are
74.23 authorized to be levied for redevelopment purposes under section
74.24 469.033, subdivision 6, may be used to defray all or part of the
74.25 costs incurred by any housing and redevelopment authority under
74.26 this chapter.
74.27 Sec. 32. Minnesota Statutes 2000, section 355.05, is
74.28 amended to read:
74.29 355.05 [RULES.]
74.30 The state agency shall make and publish such director may
74.31 promulgate those rules, not inconsistent with the provisions of
74.32 this chapter, as amended, as it finds necessary or appropriate
74.33 to the efficient administration of the functions with which it
74.34 is charged under this chapter, as amended.
74.35 Sec. 33. Minnesota Statutes 2000, section 355.07, is
74.36 amended to read:
75.1 355.07 [DECLARATION OF POLICY.]
75.2 (a) In order to extend to employees of the state and, its
75.3 political subdivisions, and its other governmental employers,
75.4 and to the dependents and survivors of such the employees of
75.5 those employing units, the basic protection accorded to others
75.6 by the old age and, survivors, and disability insurance system
75.7 embodied in the Social Security Act, it is hereby declared to be
75.8 the policy of the legislature, subject to the limitations of
75.9 this chapter, that these steps are taken to provide protection
75.10 to employees of the state and its political subdivisions on as
75.11 broad a basis as may be authorized by the legislature and is
75.12 permitted under the Social Security Act.
75.13 (b) It is also the policy of the legislature that the
75.14 protection afforded employees in positions covered by a
75.15 retirement system on the date an agreement under this chapter is
75.16 made applicable to service performed in those positions, or
75.17 receiving periodic benefits under the retirement system at that
75.18 time, will not be impaired as a result of making the agreement
75.19 so applicable or as a result of legislative enactment in
75.20 anticipation thereof when combined with the benefits accorded
75.21 the employee by the Social Security Act.
75.22 (c) To this end, the agreement referred to in section
75.23 355.02 shall must not be made applicable to any service
75.24 performed in any position covered by a retirement system unless
75.25 a referendum is first held by secret ballot in which a majority
75.26 of "eligible employees," as defined in section 218(d) (3) of the
75.27 Social Security Act, vote in favor thereof, or unless a
75.28 retirement system is divided in two divisions or parts, one of
75.29 which is composed of positions of members of the system who
75.30 desire coverage and one of which is composed of positions of
75.31 members of the system who do not desire coverage under section
75.32 218(d) (3) of the Social Security Act, in accordance with
75.33 subsections (6) and (7) thereof.
75.34 (d) Nothing in any provision of this chapter shall
75.35 authorize authorizes the extension of the insurance system
75.36 established by this chapter, as amended, to service in any
76.1 police officer's or firefighter's position or in any position
76.2 covered by a retirement system applicable exclusively to
76.3 positions in one or more law enforcement or fire fighting units,
76.4 agencies or departments.
76.5 Sec. 34. Minnesota Statutes 2000, section 355.08, is
76.6 amended to read:
76.7 355.08 [APPLICATION OF SOCIAL SECURITY ACT.]
76.8 The provisions of the Social Security Act, and all acts
76.9 amendatory thereof, shall govern relative to employees of the
76.10 state and, its political subdivisions, and its other
76.11 governmental employers subject to Minnesota Statutes, this
76.12 chapter 355, as amended, anything in said this chapter to the
76.13 contrary notwithstanding.
76.14 Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.]
76.15 (a) The public retirement plans enumerated in paragraph (b)
76.16 must be divided into two parts in accordance with section
76.17 218(d)(6)(c) of the Social Security Act, with one part composed
76.18 of plan members who did not elect social security coverage in
76.19 the applicable referendum and the other part composed of plan
76.20 members who did elect social security coverage in the applicable
76.21 referendum.
76.22 (b) The applicable public retirement plans are:
76.23 (1) the elective state officers retirement plan;
76.24 (2) the judges retirement plan;
76.25 (3) the legislators retirement plan;
76.26 (4) the Minneapolis teachers retirement fund association;
76.27 (5) the general employees retirement plan of the public
76.28 employees retirement association;
76.29 (6) the St. Paul teachers retirement fund association; and
76.30 (7) the teachers retirement association.
76.31 (c) Plan participants and persons electing participation
76.32 under section 354B.21 remain members of the teachers retirement
76.33 association for purposes of social security coverage only, and
76.34 remain covered by the applicable agreement entered into under
76.35 section 355.01, but are not members of the teachers retirement
76.36 association for any other purpose while employed in covered
77.1 employment.
77.2 Sec. 36. [REPEALER.]
77.3 Minnesota Statutes 2000, sections 355.01, subdivisions 2,
77.4 4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16;
77.5 355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206;
77.6 355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24;
77.7 355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283;
77.8 355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291;
77.9 355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298;
77.10 355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41;
77.11 355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50;
77.12 355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59;
77.13 355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625;
77.14 355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74;
77.15 355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and
77.16 355.90, are repealed.
77.17 Sec. 37. [EFFECTIVE DATE.]
77.18 Sections 1 to 36 are effective on July 1, 2002.
77.19 ARTICLE 9
77.20 PUBLIC PENSION PLAN
77.21 ACTUARIAL ASSUMPTION REVISIONS
77.22 Section 1. Minnesota Statutes 2000, section 356.215,
77.23 subdivision 4d, is amended to read:
77.24 Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The
77.25 actuarial valuation must use the applicable following
77.26 preretirement interest assumption and the applicable following
77.27 postretirement interest assumption:
77.28 preretirement postretirement
77.29 interest rate interest rate
77.30 plan assumption assumption
77.31 general state employees
77.32 retirement plan 8.5% 6.0%
77.33 correctional state employees
77.34 retirement plan 8.5 6.0
77.35 state patrol retirement plan 8.5 6.0
77.36 legislators retirement plan 8.5 6.0
77.37 elective state officers
77.38 retirement plan 8.5 6.0
77.39 judges retirement plan 8.5 6.0
77.40 general public employees
77.41 retirement plan 8.5 6.0
77.42 public employees police and fire
77.43 retirement plan 8.5 6.0
77.44 local government correctional
78.1 service retirement plan 8.5 6.0
78.2 teachers retirement plan 8.5 6.0
78.3 Minneapolis employees
78.4 retirement plan 6.0 5.0
78.5 Duluth teachers retirement plan 8.5 8.5
78.6 Minneapolis teachers retirement
78.7 plan 8.5 8.5
78.8 St. Paul teachers retirement
78.9 plan 8.5 8.5
78.10 Minneapolis police relief
78.11 association 6.0 6.0
78.12 other local Fairmont police relief
78.13 associations association 5.0 5.0
78.14 Minneapolis fire department
78.15 relief association 6.0 6.0
78.16 other local salaried firefighters
78.17 Virginia fire department
78.18 relief associations association 5.0 5.0
78.19 local monthly benefit volunteer
78.20 firefighters relief associations 5.0 5.0
78.21 (b) The actuarial valuation must use the applicable
78.22 following single rate future salary increase assumption or the
78.23 applicable following graded rate future salary increase
78.24 assumption:
78.25 (1) single rate future salary increase assumption
78.26 future salary
78.27 plan increase assumption
78.28 legislators retirement plan 5.0%
78.29 elective state officers retirement
78.30 plan 5.0
78.31 judges retirement plan 5.0
78.32 Minneapolis police relief association 4.0
78.33 other local Fairmont police relief
78.34 associations association 3.5
78.35 Minneapolis fire department relief
78.36 association 4.0
78.37 other local salaried firefighters
78.38 Virginia fire department
78.39 relief associations association 3.5
78.40 (2) modified single rate future salary increase assumption
78.41 future salary
78.42 plan increase assumption
78.43 Minneapolis employees the prior calendar year
78.44 retirement plan amount increased first by
78.45 1.0198 percent to prior
78.46 fiscal year date and
78.47 then increased by 4.0
78.48 percent annually for
78.49 each future year
78.50 (3) select and ultimate future salary increase assumption
78.51 or graded rate future salary increase assumption
78.52 future salary
78.53 plan increase assumption
78.54 general state employees select calculation and
78.55 retirement plan assumption A
78.56 correctional state employees
78.57 retirement plan assumption H
78.58 state patrol retirement plan assumption H
78.59 general public employees select calculation and
78.60 retirement plan assumption B
79.1 public employees police and fire
79.2 fund retirement plan assumption C
79.3 local government correctional service
79.4 retirement plan assumption H
79.5 teachers retirement plan assumption D
79.6 Duluth teachers retirement plan assumption E
79.7 Minneapolis teachers retirement plan assumption F
79.8 St. Paul teachers retirement plan assumption G
79.9
79.10 The select calculation: is,
79.11 during the ten-year select period, 0.2 a designated percent
79.12 is multiplied by the result of ten minus T, where T is
79.13 the number of completed years of service, and is added
79.14 to the applicable future salary increase assumption. The
79.15 designated percent is 0.2 percent for the correctional state
79.16 employees retirement plan, the state patrol retirement
79.17 plan, the public employees police and fire plan, and the
79.18 local government correctional service plan; 0.3 percent
79.19 for the general state employees retirement plan, the
79.20 general public employees retirement plan, the teachers
79.21 retirement plan, the Duluth teachers retirement fund
79.22 association, and the St. Paul teachers retirement fund
79.23 association; and 0.4 percent for the Minneapolis teachers
79.24 retirement fund association.
79.25
79.26 The ultimate future salary increase assumption is:
79.27
79.28 age A B C D E F G H
79.29 16 6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
79.30 6.50 6.90
79.31 17 6.90 6.90 11.50 8.15 8.00 7.50 7.25 7.7500
79.32 6.50 6.90
79.33 18 6.85 6.85 11.50 8.10 8.00 7.50 7.25 7.7500
79.34 6.50 6.90
79.35 19 6.80 6.80 11.50 8.05 8.00 7.50 7.25 7.7500
79.36 6.50 6.90
79.37 20 6.75 6.75 11.50 8.00 8.00 7.50 7.25 7.7500
79.38 6.40 6.00 6.90 6.50 6.90
79.39 21 6.70 6.70 11.50 7.95 8.00 7.50 7.25 7.1454
79.40 6.75 6.40 6.00 6.90 6.50 6.90
79.41 22 6.65 6.65 11.00 7.90 8.00 7.50 7.25 7.0725
79.42 6.75 6.40 6.00 6.90 6.50 6.90
79.43 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544
79.44 24 6.66 6.55 10.00 7.80 7.80 7.30 7.20 7.0363
79.45 6.75 6.40 6.00 6.80 6.50 6.80
79.46 25 6.50 6.50 9.50 7.75 7.70 7.20 7.15 7.0000
79.47 6.75 6.40 6.00 6.75 6.50 6.75
79.48 26 6.45 6.45 9.20 7.70 7.60 7.10 7.10 7.0000
79.49 6.75 6.36 6.00 6.70 6.50 6.70
79.50 27 6.40 6.40 8.90 7.65 7.50 7.00 7.05 7.0000
79.51 6.75 6.32 6.00 6.65 6.50 6.65
79.52 28 6.35 6.35 8.60 7.60 7.40 6.90 7.00 7.0000
79.53 6.75 6.28 6.00 6.60 6.50 6.60
79.54 29 6.30 6.30 8.30 7.55 7.30 6.80 6.95 7.0000
79.55 6.75 6.24 6.00 6.55 6.50 6.55
79.56 30 6.25 6.30 8.00 7.50 7.20 6.70 6.90 7.0000
79.57 6.75 6.20 6.00 6.50 6.50 6.50
79.58 31 6.20 6.25 7.80 7.45 7.10 6.60 6.85 7.0000
79.59 6.75 6.16 6.00 6.45 6.50 6.45
79.60 32 6.15 6.21 7.60 7.40 7.00 6.50 6.80 7.0000
79.61 6.75 6.12 6.00 6.40 6.50 6.40
79.62 33 6.10 6.17 7.40 7.30 6.90 6.40 6.75 7.0000
79.63 6.75 6.08 6.00 6.35 6.50 6.35
79.64 34 6.05 6.09 7.20 7.10 6.80 6.30 6.70 7.0000
79.65 6.75 6.04 6.00 6.30 6.50 6.30
79.66 35 6.00 6.05 7.00 7.00 6.70 6.20 6.65 7.0000
79.67 6.75 6.00 6.00 6.25 6.50 6.25
79.68 36 6.95 6.01 6.80 6.85 6.60 6.10 6.60 6.9019
79.69 6.75 5.96 6.00 6.20 6.50 6.20
79.70 37 5.90 5.97 6.60 6.70 6.50 6.00 6.55 6.8074
79.71 6.75 5.92 6.00 6.15 6.50 6.15
80.1 38 5.85 5.93 6.40 6.55 6.40 5.90 6.50 6.7125
80.2 6.75 5.88 5.90 6.10 6.50 6.10
80.3 39 5.80 5.89 6.20 6.40 6.30 5.80 6.40 6.6054
80.4 6.75 5.84 5.80 6.05 6.50 6.05
80.5 40 5.75 5.85 6.00 6.25 6.20 5.70 6.30 6.5000
80.6 6.75 5.80 5.70 6.00 6.50 6.00
80.7 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540
80.8 6.75 5.76 5.60 5.90 6.50 5.95
80.9 42 5.65 5.77 5.80 5.95 6.00 5.50 6.10 6.2087
80.10 6.75 5.72 5.50 5.80 6.50 5.90
80.11 43 5.60 5.73 5.70 5.80 5.90 5.45 6.00 6.0622
80.12 6.65 5.68 5.40 5.70 6.50 5.85
80.13 44 5.55 5.69 5.60 5.65 5.80 5.40 5.90 5.9048
80.14 6.55 5.64 5.30 5.60 6.50 5.80
80.15 45 5.50 5.65 5.50 5.50 5.70 5.35 5.80 5.7500
80.16 6.45 5.60 5.20 5.50 6.50 5.75
80.17 46 5.45 5.62 5.45 5.45 5.60 5.30 5.70 5.6940
80.18 6.35 5.56 5.10 5.40 6.40 5.70
80.19 47 5.40 5.59 5.40 5.40 5.50 5.25 5.65 5.6375
80.20 6.25 5.52 5.00 5.30 6.30
80.21 48 5.35 5.56 5.35 5.35 5.45 5.20 5.60 5.5822
80.22 6.15 5.48 5.00 5.20 6.20
80.23 49 5.30 5.53 5.30 5.30 5.40 5.15 5.55 5.5404
80.24 6.05 5.44 5.00 5.10 6.10
80.25 50 5.25 5.50 5.25 5.25 5.35 5.10 5.50 5.5000
80.26 5.95 5.40 5.00 5.00 6.00
80.27 51 5.20 5.45 5.25 5.20 5.30 5.05 5.45 5.4384
80.28 5.85 5.36 5.00 5.00 5.90
80.29 52 5.15 5.40 5.25 5.15 5.25 5.00 5.40 5.3776
80.30 5.75 5.32 5.00 5.00 5.80
80.31 53 5.10 5.35 5.25 5.10 5.25 5.00 5.35 5.3167
80.32 5.65 5.28 5.00 5.00 5.70
80.33 54 5.05 5.30 5.25 5.05 5.25 5.00 5.30 5.2826
80.34 5.55 5.24 5.00 5.00 5.60
80.35 55 5.00 5.25 5.25 5.00 5.25 5.00 5.25 5.2500
80.36 5.45 5.20 5.00 5.50
80.37 56 5.00 5.20 5.25 5.00 5.25 5.00 5.25 5.2500
80.38 5.35 5.16 5.00 5.40 5.20
80.39 57 5.00 5.15 5.25 5.00 5.25 5.00 5.25 5.2500
80.40 5.25 5.12 5.00 5.30 5.15
80.41 58 5.00 5.10 5.25 5.00 5.25 5.00 5.25 5.2500
80.42 5.25 5.08 5.10 5.00 5.20 5.10
80.43 59 5.00 5.05 5.25 5.00 5.25 5.00 5.25 5.2500
80.44 5.25 5.04 5.20 5.00 5.10 5.05
80.45 60 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.46 5.25 5.30 5.00 5.00
80.47 61 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.48 5.25 5.40 5.00 5.00
80.49 62 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.50 5.25 5.50 5.00 5.00
80.51 63 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.52 5.25 5.60 5.00 5.00
80.53 64 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.54 5.25 5.70 5.00 5.00
80.55 65 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.56 5.25 5.70 5.00 5.00
80.57 66 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.58 5.25 5.70 5.00 5.00
80.59 67 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.60 5.25 5.70 5.00 5.00
80.61 68 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.62 5.25 5.70 5.00 5.00
80.63 69 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.64 5.25 5.70 5.00 5.00
80.65 70 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
80.66 5.25 5.70 5.00 5.00
80.67 71 5.00 5.00 5.00
80.68 5.25 5.70
80.69 (c) The actuarial valuation must use the applicable
81.1 following payroll growth assumption for calculating the
81.2 amortization requirement for the unfunded actuarial accrued
81.3 liability where the amortization retirement is calculated as a
81.4 level percentage of an increasing payroll:
81.5 payroll growth
81.6 plan assumption
81.7 general state employees retirement plan 5.00%
81.8 correctional state employees retirement plan 5.00
81.9 state patrol retirement plan 5.00
81.10 legislators retirement plan 5.00
81.11 elective state officers retirement plan 5.00
81.12 judges retirement plan 5.00
81.13 general public employees retirement plan 6.00
81.14 public employees police and fire
81.15 retirement plan 6.00
81.16 local government correctional service
81.17 retirement plan 6.00
81.18 teachers retirement plan 5.00
81.19 Duluth teachers retirement plan 5.00
81.20 Minneapolis teachers retirement plan 5.00
81.21 St. Paul teachers retirement plan 5.00
81.22 Sec. 2. [EFFECTIVE DATE.]
81.23 Section 1 is effective on June 30, 2002.
81.24 ARTICLE 10
81.25 AUTHORIZATION OF ADDITIONAL
81.26 SUPPLEMENTAL RETIREMENT PLANS
81.27 Section 1. Minnesota Statutes 2001 Supplement, section
81.28 356.24, subdivision 1, is amended to read:
81.29 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful
81.30 for a school district or other governmental subdivision or state
81.31 agency to levy taxes for, or contribute public funds to a
81.32 supplemental pension or deferred compensation plan that is
81.33 established, maintained, and operated in addition to a primary
81.34 pension program for the benefit of the governmental subdivision
81.35 employees other than:
81.36 (1) to a supplemental pension plan that was established,
81.37 maintained, and operated before May 6, 1971;
81.38 (2) to a plan that provides solely for group health,
81.39 hospital, disability, or death benefits;
81.40 (3) to the individual retirement account plan established
81.41 by chapter 354B;
81.42 (4) to a plan that provides solely for severance pay under
81.43 section 465.72 to a retiring or terminating employee;
81.44 (5) for employees other than personnel employed by the
82.1 board of trustees of the Minnesota state colleges and
82.2 universities and covered under the higher education supplemental
82.3 retirement plan under chapter 354C, if provided for in a
82.4 personnel policy of the public employer or in the collective
82.5 bargaining agreement between the public employer and the
82.6 exclusive representative of public employees in an appropriate
82.7 unit, in an amount matching employee contributions on a dollar
82.8 for dollar basis, but not to exceed an employer contribution of
82.9 $2,000 a year per employee;
82.10 (i) to the state of Minnesota deferred compensation plan
82.11 under section 352.96; or
82.12 (ii) in payment of the applicable portion of the
82.13 contribution made to any investment eligible under section
82.14 403(b) of the Internal Revenue Code, if the employing unit has
82.15 complied with any applicable pension plan provisions of the
82.16 Internal Revenue Code with respect to the tax-sheltered annuity
82.17 program during the preceding calendar year;
82.18 (6) for personnel employed by the board of trustees of the
82.19 Minnesota state colleges and universities and not covered by
82.20 clause (5), to the supplemental retirement plan under chapter
82.21 354C, if provided for in a personnel policy or in the collective
82.22 bargaining agreement of the public employer with the exclusive
82.23 representative of the covered employees in an appropriate unit,
82.24 in an amount matching employee contributions on a dollar for
82.25 dollar basis, but not to exceed an employer contribution of
82.26 $2,700 a year for each employee;
82.27 (7) to a supplemental plan or to a governmental trust to
82.28 save for postretirement health care expenses qualified for
82.29 tax-preferred treatment under the Internal Revenue Code, if
82.30 provided for in a personnel policy or in the collective
82.31 bargaining agreement of a public employer with the exclusive
82.32 representative of the covered employees in an appropriate unit;
82.33 or
82.34 (8) to the laborer's national industrial pension fund for
82.35 the employees of a governmental subdivision who are covered by a
82.36 collective bargaining agreement that provides for coverage by
83.1 that fund and that sets forth a fund contribution rate, but not
83.2 to exceed an employer contribution of $2,000 per year per
83.3 employee;
83.4 (9) to the plumbers' and pipefitters' national pension fund
83.5 for the employees of a governmental subdivision who are covered
83.6 by a collective bargaining agreement that provides for coverage
83.7 by that fund and that sets forth a fund contribution rate, but
83.8 not to exceed an employer contribution of $2,000 per year per
83.9 employee;
83.10 (10) to the international union of operating engineers
83.11 pension fund for the employees of a governmental subdivision who
83.12 are covered by a collective bargaining agreement that provides
83.13 for coverage by that fund and that sets forth a fund
83.14 contribution rate, but not to exceed an employer contribution of
83.15 $2,000 per year per employee; or
83.16 (11) to a supplemental plan organized and operated under
83.17 the federal Internal Revenue Code, as amended, that is wholly
83.18 and solely funded by the employee's accumulated sick leave,
83.19 accumulated vacation leave, and accumulated severance pay.
83.20 Sec. 2. Minnesota Statutes 2000, section 356.25, is
83.21 amended to read:
83.22 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS;
83.23 EXCLUSIONS.]
83.24 Notwithstanding any other provision of law or charter, no
83.25 city, county, public agency or instrumentality, or other
83.26 political subdivision shall, after August 1, 1975, is required
83.27 or permitted to establish for any of its employees any local
83.28 pension plan or fund financed in whole or in part from public
83.29 funds, other than:
83.30 (1) a supplemental pension or deferred compensation plan
83.31 authorized under section 356.24; or
83.32 (2) a volunteer firefighter's relief association
83.33 established pursuant to under chapter 424A and governed by
83.34 sections 69.771 to 69.776.
83.35 Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST
83.36 ACTIONS.]
84.1 Any supplemental pension plan that is organized and
84.2 operated under section 401(a) of the federal Internal Revenue
84.3 Code, as amended, that is wholly and solely funded by an
84.4 employee's accumulated sick leave, accumulated vacation leave,
84.5 and accumulated severance pay, and that was established before
84.6 the effective date of this act and any contributions to the plan
84.7 that may be characterized as public funds within the meaning of
84.8 Minnesota Statutes, section 356.24, are hereby ratified and
84.9 validated.
84.10 Sec. 4. [EFFECTIVE DATE.]
84.11 Sections 1 to 3 are effective on the day following final
84.12 enactment.
84.13 ARTICLE 11
84.14 GENERAL RETIREMENT LAW
84.15 REORGANIZATION AND RECODIFICATION
84.16 PUBLIC RETIREMENT PLAN PURPOSE
84.17 Section 1. Minnesota Statutes 2000, section 356.001, is
84.18 amended to read:
84.19 356.001 [PURPOSE OF PUBLIC PLANS.]
84.20 Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND
84.21 BENEFICIARIES.] (a) The public plans and funds specified in
84.22 subdivision 4 are established to provide for the retirement of
84.23 their members and to provide funds for the beneficiaries of
84.24 members in the event of death of a member.
84.25 (b) The public plans and funds are established and shall
84.26 must be maintained for the exclusive benefit of the members and
84.27 the beneficiaries of the members. Except as provided in
84.28 subdivisions 2 and 3, no part of the moneys of the plans and
84.29 funds shall may revert to the plan or fund or be used for or
84.30 diverted to purposes other than the exclusive benefit of the
84.31 members or their beneficiaries.
84.32 Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable,
84.33 and direct expenses of maintaining, protecting, and
84.34 administering the public plan or fund, as authorized in the laws
84.35 governing the plan or fund, shall must be considered as
84.36 expenditures for the exclusive benefit of the members or their
85.1 beneficiaries.
85.2 Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a
85.3 public plan or fund as defined in subdivision 4 is terminated or
85.4 the plan or fund provisions are amended, no part of the moneys
85.5 held in the plan or fund shall may be used for or diverted to
85.6 any purpose other than the exclusive benefit of the members or
85.7 their beneficiaries, except as provided in this subdivision.
85.8 (b) If a plan or fund is terminated, all affected members
85.9 have a nonforfeitable interest in their benefits that were
85.10 accrued and funded to date. The value of the accrued benefits
85.11 to be credited to the account of each affected member shall must
85.12 be calculated as of the date of termination and the funding
85.13 ratio of the plan or fund must be applied to the accrued benefit
85.14 of each affected member.
85.15 (c) The board of trustees of the plan or fund shall then,
85.16 as soon as administratively feasible following the termination,
85.17 pay each eligible member or beneficiary on behalf of a member
85.18 the amount in the member's account in a lump sum. In the case
85.19 of a member whose whereabouts is unknown, the board shall notify
85.20 the member at the last known address by certified mail with
85.21 return receipt requested advising the member of the member's
85.22 right to a pending distribution. If the member cannot be
85.23 located in this manner, the board shall establish a custodial
85.24 account for the member's benefit in a federally insured bank,
85.25 savings association, or credit union in which the member's
85.26 account balance shall must be deposited. If the board receives
85.27 proof of death of a member that is satisfactory to the board,
85.28 the account balance shall must be paid to the beneficiary of the
85.29 member.
85.30 Subd. 4. [COVERED PLANS AND FUNDS.] This section applies
85.31 to all public pension and retirement plans and funds established
85.32 pursuant to under the laws of the state of Minnesota that
85.33 receive contributions from moneys derived from taxation.
85.34 Subd. 5. [CONSTRUCTION.] Nothing contained in this section
85.35 shall may be construed to authorize, or otherwise imply, a
85.36 legislative policy or intent favoring the termination of any
86.1 plan or fund to which this section applies.
86.2 PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL,
86.3 AND INVESTMENT REPORTING
86.4 Sec. 2. Minnesota Statutes 2000, section 356.20,
86.5 subdivision 1, is amended to read:
86.6 Subdivision 1. [REPORT REQUIRED.] (a) The governing or
86.7 managing board or administrative officials of the public pension
86.8 and retirement funds enumerated in subdivision 2 shall annually
86.9 prepare and file a financial report following the close of each
86.10 fiscal year.
86.11 (b) This requirement shall also apply applies to any plan
86.12 or fund which may be a successor to any organization so
86.13 enumerated or to any newly formed retirement plan, fund or
86.14 association operating under the control or supervision of any
86.15 public employee group, governmental unit, or institution
86.16 receiving a portion of its support through legislative
86.17 appropriations.
86.18 (c) The report shall must be prepared under the supervision
86.19 and at the direction of the management of each fund and shall
86.20 must be signed by the presiding officer of the managing board of
86.21 the fund and the chief administrative official of the fund.
86.22 Sec. 3. Minnesota Statutes 2000, section 356.20,
86.23 subdivision 2, is amended to read:
86.24 Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This
86.25 section applies to the following public pension plans:
86.26 (1) the general state employees retirement fund. plan of
86.27 the Minnesota state retirement system;
86.28 (2) the general employees retirement plan of the public
86.29 employees retirement fund. association;
86.30 (3) the teachers retirement association.;
86.31 (4) the state patrol retirement fund. plan;
86.32 (5) the Minneapolis teachers retirement fund association.;
86.33 (6) the St. Paul teachers retirement fund association.;
86.34 (7) the Duluth teachers retirement fund association.;
86.35 (8) the Minneapolis employees retirement fund.;
86.36 (9) the University of Minnesota faculty retirement plan.;
87.1 (10) the University of Minnesota faculty supplemental
87.2 retirement plan.;
87.3 (11) the judges retirement fund.;
87.4 (12) Any a police or firefighter's relief association
87.5 enumerated specified or described in section 69.77, subdivision
87.6 1a, or 69.771, subdivision 1.;
87.7 (13) the public employees police and fire fund. plan of the
87.8 public employees retirement association;
87.9 (14) the correctional state employees retirement plan of
87.10 the Minnesota state retirement system correctional officers
87.11 retirement fund.; and
87.12 (15) public employees the local government correctional
87.13 service retirement plan of the public employees retirement
87.14 association.
87.15 Sec. 4. Minnesota Statutes 2000, section 356.20,
87.16 subdivision 3, is amended to read:
87.17 Subd. 3. [FILING REQUIREMENT.] The financial report is a
87.18 public record. A copy of the report or a synopsis of the report
87.19 containing the information required by this section shall must
87.20 be distributed annually to each member of the fund and to the
87.21 governing body of each governmental subdivision of the state
87.22 which makes employers contributions thereto or in whose behalf
87.23 taxes are levied for the employers' contribution. A signed copy
87.24 of the report shall must be delivered to the executive director
87.25 of the legislative commission on pensions and retirement and to
87.26 the legislative reference library not later than six months
87.27 after the close of each fiscal year or one month following the
87.28 completion and delivery to the retirement fund of the actuarial
87.29 valuation report of the fund by the actuary retained by the
87.30 legislative commission on pensions and retirement, if
87.31 applicable, whichever is later.
87.32 Sec. 5. Minnesota Statutes 2000, section 356.20,
87.33 subdivision 4, is amended to read:
87.34 Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial
87.35 report required by this section must contain financial
87.36 statements and disclosures that indicate the financial
88.1 operations and position of the retirement plan and fund. The
88.2 report must conform with generally accepted governmental
88.3 accounting principles, applied on a consistent basis. The
88.4 report must be audited. The report must include, as part of its
88.5 exhibits or footnotes, an actuarial disclosure item based on the
88.6 actuarial valuation calculations prepared by the
88.7 commission-retained actuary or by the actuary retained by the
88.8 retirement fund or plan, if applicable, according to applicable
88.9 actuarial requirements enumerated in section 356.215, and
88.10 specified in the most recent standards for actuarial work
88.11 adopted by the legislative commission on pensions and
88.12 retirement. The accrued assets, the accrued liabilities,
88.13 including accrued reserves, and the unfunded actuarial accrued
88.14 liability of the fund or plan must be disclosed. The disclosure
88.15 item must contain a declaration by the actuary retained by the
88.16 legislative commission on pensions and retirement or the actuary
88.17 retained by the fund or plan, whichever applies, specifying that
88.18 the required reserves for any retirement, disability, or
88.19 survivor benefits provided under a benefit formula are computed
88.20 in accordance with the entry age actuarial cost method and with
88.21 the most recent applicable standards for actuarial work adopted
88.22 by the legislative commission on pensions and retirement.
88.23 (a) (b) Assets of the fund or plan contained in the
88.24 disclosure item must include the following statement of the
88.25 actuarial value of current assets as defined in section 356.215,
88.26 subdivision 1:
88.27 Value Value
88.28 at cost at market
88.29 Cash, cash equivalents, and
88.30 short-term securities ......... .........
88.31 Accounts receivable ......... .........
88.32 Accrued investment income ......... .........
88.33 Fixed income investments ......... .........
88.34 Equity investments other
88.35 than real estate ......... .........
88.36 Real estate investments ......... .........
89.1 Equipment ......... .........
89.2 Equity in the Minnesota
89.3 postretirement investment
89.4 fund ......... .........
89.5 Other ......... .........
89.6
89.7 Total assets
89.8 Value at cost .........
89.9 Value at market .........
89.10 Value of current assets .........
89.11 (b) (c) The unfunded actuarial accrued liability of the
89.12 fund or plan contained in the disclosure item must include the
89.13 following measures of unfunded actuarial accrued liability,
89.14 using the value of current assets:
89.15 (1) unfunded actuarial accrued liability, determined by
89.16 subtracting the current assets and the present value of future
89.17 normal costs from the total current and expected future benefit
89.18 obligations; and
89.19 (2) unfunded pension benefit obligation, determined by
89.20 subtracting the current assets from the actuarial present value
89.21 of credited projected benefits.
89.22 If the current assets of the fund or plan exceed the
89.23 actuarial accrued liabilities, the excess must be disclosed and
89.24 indicated as a surplus.
89.25 (c) (d) The pension benefit obligations schedule included
89.26 in the disclosure must contain the following information on the
89.27 benefit obligations:
89.28 (1) the pension benefit obligation, determined as the
89.29 actuarial present value of credited projected benefits on
89.30 account of service rendered to date, separately identified as
89.31 follows:
89.32 (i) for annuitants;
89.33 retirement annuities;
89.34 disability benefits;
89.35 surviving spouse and child benefits;
89.36 (ii) for former members without vested rights;
90.1 (iii) for deferred annuitants' benefits, including
90.2 any augmentation;
90.3 (iv) for active employees;
90.4 accumulated employee contributions,
90.5 including allocated investment income;
90.6 employer-financed benefits vested;
90.7 employer-financed benefits nonvested;
90.8 total pension benefit obligation; and
90.9 (2) if there are additional benefits not appropriately
90.10 covered by the foregoing items of benefit obligations, a
90.11 separate identification of the obligation.
90.12 (d) (e) Any additional statements or exhibits or more
90.13 detailed or subdivided itemization of a disclosure item that
90.14 will enable the management of the fund to portray a true
90.15 interpretation of the fund's financial condition must be
90.16 included in the additional statements or exhibits.
90.17 Sec. 6. Minnesota Statutes 2000, section 356.20,
90.18 subdivision 4a, is amended to read:
90.19 Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS
90.20 RELIEF ASSOCIATION.] For any police or firefighter's relief
90.21 association referred to in subdivision 2, clause (12), a
90.22 financial report duly filed pursuant to and meeting the
90.23 requirements of section 69.051 shall must be deemed to have met
90.24 the requirements of subdivision 4.
90.25 Sec. 7. Minnesota Statutes 2000, section 356.215, as
90.26 amended by Laws 2001, First Special Session chapter 10, article
90.27 11, section 18, is amended to read:
90.28 356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.]
90.29 Subdivision 1. [DEFINITIONS.] (a) For the purposes of
90.30 sections 3.85 and 356.20 to 356.23, each of the terms in the
90.31 following paragraphs have the meaning given.
90.32 (b) "Actuarial valuation" means a set of calculations
90.33 prepared by the actuary retained by the legislative commission
90.34 on pensions and retirement if so required under section 3.85, or
90.35 otherwise, by an approved actuary, to determine the normal cost
90.36 and the accrued actuarial liabilities of a benefit plan,
91.1 according to the entry age actuarial cost method and based upon
91.2 stated assumptions including, but not limited to rates of
91.3 interest, mortality, salary increase, disability, withdrawal,
91.4 and retirement and to determine the payment necessary to
91.5 amortize over a stated period any unfunded accrued actuarial
91.6 liability disclosed as a result of the actuarial valuation of
91.7 the benefit plan.
91.8 (c) "Approved actuary" means a person who is regularly
91.9 engaged in the business of providing actuarial services and who
91.10 has at least 15 years of service to major public employee
91.11 pension or retirement funds or who is a fellow in the society of
91.12 actuaries.
91.13 (d) "Entry age actuarial cost method" means an actuarial
91.14 cost method under which the actuarial present value of the
91.15 projected benefits of each individual currently covered by the
91.16 benefit plan and included in the actuarial valuation is
91.17 allocated on a level basis over the service of the individual,
91.18 if the benefit plan is governed by section 69.773, or over the
91.19 earnings of the individual, if the benefit plan is governed by
91.20 any other law, between the entry age and the assumed exit age,
91.21 with the portion of this the actuarial present value which is
91.22 allocated to the valuation year to be the normal cost and the
91.23 portion of this the actuarial present value not provided for at
91.24 the valuation date by the actuarial present value of future
91.25 normal costs to be the actuarial accrued liability, with
91.26 aggregation in the calculation process to be the sum of the
91.27 calculated result for each covered individual and with
91.28 recognition given to any different benefit formulas which may
91.29 apply to various periods of service.
91.30 (e) "Experience study" means a report providing experience
91.31 data and an actuarial analysis of the adequacy of the actuarial
91.32 assumptions on which actuarial valuations are based.
91.33 (f) "Current assets" means:
91.34 (1) for the July 1, 1999, actuarial valuation, the value of
91.35 all assets at cost, including realized capital gains or losses,
91.36 plus one-third of any unrealized capital gains or losses;
92.1 (2) for the July 1, 2000, actuarial valuation, the market
92.2 value of all assets as of June 30, 2000, reduced by:
92.3 (i) 60 percent of the difference between the market value
92.4 of all assets as of June 30, 1999, and the actuarial value of
92.5 assets used in the July 1, 1999, actuarial valuation, and
92.6 (ii) 80 percent of the difference between the actual net
92.7 change in the market value of assets between June 30, 1999, and
92.8 June 30, 2000, and the computed increase in the market value of
92.9 assets between June 30, 1999, and June 30, 2000, if the assets
92.10 had increased at the percentage preretirement interest rate
92.11 assumption used in the July 1, 1999, actuarial valuation;
92.12 (3) for the July 1, 2001, actuarial valuation, the market
92.13 value of all assets as of June 30, 2001, reduced by:
92.14 (i) 30 percent of the difference between the market value
92.15 of all assets as of June 30, 1999, and the actuarial value of
92.16 assets used in the July 1, 1999, actuarial valuation;
92.17 (ii) 60 percent of the difference between the actual net
92.18 change in the market value of assets between June 30, 1999, and
92.19 June 30, 2000, and the computed increase in the market value of
92.20 assets between June 30, 1999, and June 30, 2000, if the assets
92.21 had increased at the percentage preretirement interest rate
92.22 assumption used in the July 1, 1999, actuarial valuation; and
92.23 (iii) 80 percent of the difference between the actual net
92.24 change in the market value of assets between June 30, 2000, and
92.25 June 30, 2001, and the computed increase in the market value of
92.26 assets between June 30, 2000, and June 30, 2001, if the assets
92.27 had increased at the percentage preretirement interest rate
92.28 assumption used in the July 1, 2000, actuarial valuation;
92.29 (4) (2) for the July 1, 2002, actuarial valuation, the
92.30 market value of all assets as of June 30, 2002, reduced by:
92.31 (i) ten percent of the difference between the market value
92.32 of all assets as of June 30, 1999, and the actuarial value of
92.33 assets used in the July 1, 1999, actuarial valuation;
92.34 (ii) 40 percent of the difference between the actual net
92.35 change in the market value of assets between June 30, 1999, and
92.36 June 30, 2000, and the computed increase in the market value of
93.1 assets between June 30, 1999, and June 30, 2000, if the assets
93.2 had increased at the percentage preretirement interest rate
93.3 assumption used in the July 1, 1999, actuarial valuation;
93.4 (iii) 60 percent of the difference between the actual net
93.5 change in the market value of assets between June 30, 2000, and
93.6 June 30, 2001, and the computed increase in the market value of
93.7 assets between June 30, 2000, and June 30, 2001, if the assets
93.8 had increased at the percentage preretirement interest rate
93.9 assumption used in the July 1, 2000, actuarial valuation; and
93.10 (iv) 80 percent of the difference between the actual net
93.11 change in the market value of assets between June 30, 2001, and
93.12 June 30, 2002, and the computed increase in the market value of
93.13 assets between June 30, 2001, and June 30, 2002, if the assets
93.14 had increased at the percentage preretirement interest rate
93.15 assumption used in the July 1, 2001, actuarial valuation; or
93.16 (5) (3) for any actuarial valuation after July 1, 2002, the
93.17 market value of all assets as of the preceding June 30, reduced
93.18 by:
93.19 (i) 20 percent of the difference between the actual net
93.20 change in the market value of assets between the June 30 that
93.21 occurred three years earlier and the June 30 that occurred four
93.22 years earlier and the computed increase in the market value of
93.23 assets over that fiscal year period if the assets had increased
93.24 at the percentage preretirement interest rate assumption used in
93.25 the actuarial valuation for the July 1 that occurred four years
93.26 earlier;
93.27 (ii) 40 percent of the difference between the actual net
93.28 change in the market value of assets between the June 30 that
93.29 occurred two years earlier and the June 30 that occurred three
93.30 years earlier and the computed increase in the market value of
93.31 assets over that fiscal year period if the assets had increased
93.32 at the percentage preretirement interest rate assumption used in
93.33 the actuarial valuation for the July 1 that occurred three years
93.34 earlier;
93.35 (iii) 60 percent of the difference between the actual net
93.36 change in the market value of assets between the June 30 that
94.1 occurred one year earlier and the June 30 that occurred two
94.2 years earlier and the computed increase in the market value of
94.3 assets over that fiscal year period if the assets had increased
94.4 at the percentage preretirement interest rate assumption used in
94.5 the actuarial valuation for the July 1 that occurred two years
94.6 earlier; and
94.7 (iv) 80 percent of the difference between the actual net
94.8 change in the market value of assets between the immediately
94.9 prior June 30 and the June 30 that occurred one year earlier and
94.10 the computed increase in the market value of assets over that
94.11 fiscal year period if the assets had increased at the percentage
94.12 preretirement interest rate assumption used in the actuarial
94.13 valuation for the July 1 that occurred one year earlier.
94.14 (g) "Unfunded actuarial accrued liability" means the total
94.15 current and expected future benefit obligations, reduced by the
94.16 sum of current assets and the present value of future normal
94.17 costs.
94.18 (h) "Pension benefit obligation" means the actuarial
94.19 present value of credited projected benefits, determined as the
94.20 actuarial present value of benefits estimated to be payable in
94.21 the future as a result of employee service attributing an equal
94.22 benefit amount, including the effect of projected salary
94.23 increases and any step rate benefit accrual rate differences, to
94.24 each year of credited and expected future employee service.
94.25 Subd. 2. [REQUIREMENTS.] (a) It is the policy of the
94.26 legislature that it is necessary and appropriate to determine
94.27 annually the financial status of tax supported retirement and
94.28 pension plans for public employees. To achieve this goal:
94.29 (1) the legislative commission on pensions and retirement
94.30 shall have prepared by the actuary retained by the commission
94.31 annual actuarial valuations of the retirement plans enumerated
94.32 in section 3.85, subdivision 11, paragraph (b), and quadrennial
94.33 experience studies of the retirement plans enumerated in section
94.34 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7);
94.35 and
94.36 (2) the commissioner of finance may have prepared by the
95.1 actuary retained by the commission, two years after each set of
95.2 quadrennial experience studies, quadrennial projection
95.3 valuations of at least one of the retirement plans enumerated in
95.4 section 3.85, subdivision 11, paragraph (b), for which the
95.5 commissioner determines that the analysis may be beneficial.
95.6 (b) The governing or managing board or administrative
95.7 officials of each public pension and retirement fund or plan
95.8 enumerated in section 356.20, subdivision 2, clauses (9), (10),
95.9 and (12), shall have prepared by an approved actuary annual
95.10 actuarial valuations of their respective funds as provided in
95.11 this section. This requirement also applies to any fund or plan
95.12 that is the successor to any organization enumerated in section
95.13 356.20, subdivision 2, or to the governing or managing board or
95.14 administrative officials of any newly formed retirement fund,
95.15 plan, or association operating under the control or supervision
95.16 of any public employee group, governmental unit, or institution
95.17 receiving a portion of its support through legislative
95.18 appropriations, and any local police or fire fund coming within
95.19 the provisions of to which section 356.216 applies.
95.20 Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A
95.21 quadrennial projection valuation required authorized under
95.22 subdivision 2 is intended to serve as an additional analytical
95.23 tool with which policy makers may assess the future funding
95.24 status of public plans through forecasting and testing various
95.25 potential outcomes over time if certain plan assumptions or
95.26 valuation methods were to be modified.
95.27 (b) In consultation with the retirement fund directors, the
95.28 state economist, the state demographer, the commissioner of
95.29 finance, and the commissioner of employee relations, the actuary
95.30 retained by the legislative commission on pensions and
95.31 retirement shall perform the quadrennial projection valuations
95.32 on behalf of the commissioner of finance, testing future
95.33 implications for plan funding by modifying assumptions and
95.34 methods currently in place. The commission-retained actuary
95.35 shall provide advice to the commissioner as to the periods over
95.36 which such projections should be made, the nature and scope of
96.1 the scenarios to be analyzed, and the measures of funding status
96.2 to be employed, and shall report the results of these analyses
96.3 in the same manner as for quadrennial experience studies.
96.4 Subd. 3. [REPORTS.] (a) The actuarial valuations required
96.5 annually must be made as of the beginning of each fiscal year.
96.6 (b) Two copies of the valuation must be delivered to the
96.7 executive director of the legislative commission on pensions and
96.8 retirement, to the commissioner of finance and to the
96.9 legislative reference library, not later than the first day of
96.10 the sixth month occurring after the end of the previous fiscal
96.11 year.
96.12 (c) Two copies of a quadrennial experience study must be
96.13 filed with the executive director of the legislative commission
96.14 on pensions and retirement, with the commissioner of finance,
96.15 and with the legislative reference library, not later than the
96.16 first day of the 11th month occurring after the end of the last
96.17 fiscal year of the four-year period which the experience study
96.18 covers.
96.19 (d) For actuarial valuations and experience studies
96.20 prepared at the direction of the legislative commission on
96.21 pensions and retirement, two copies of the document must be
96.22 delivered to the governing or managing board or administrative
96.23 officials of the applicable public pension and retirement fund
96.24 or plan.
96.25 Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The
96.26 actuarial valuation must be made in conformity with the
96.27 requirements of the definition contained in subdivision 1 and
96.28 the most recent standards for actuarial work adopted by the
96.29 legislative commission on pensions and retirement.
96.30 (b) The actuarial valuation must measure all aspects of the
96.31 benefit plan of the fund in accordance with changes in benefit
96.32 plans, if any, and salaries reasonably anticipated to be in
96.33 force during the ensuing fiscal year. The actuarial valuation
96.34 must be prepared in accordance with the entry age actuarial cost
96.35 method. The actuarial valuation required under this section
96.36 must include the information required in subdivisions 4a 5 to 4k
97.1 15.
97.2 Subd. 4a 5. [NORMAL COST.] For a fund providing benefits
97.3 in whole or in part under a defined benefit plan, the actuarial
97.4 valuation must indicate the level normal cost of the benefits
97.5 provided by under the laws governing the fund as of the date of
97.6 the valuation, calculated in accordance with the entry age
97.7 actuarial cost method. The normal cost must be expressed as a
97.8 level percentage of the present value of future payrolls of the
97.9 active participants of the fund as of the date of the valuation.
97.10 Subd. 4b 6. [ACCRUED LIABILITY.] For a fund providing
97.11 benefits under a defined benefit plan, the actuarial valuation
97.12 must contain an exhibit indicating the actuarial accrued
97.13 liabilities of the fund. This figure is the present value of
97.14 future benefits, reduced by the present value of future normal
97.15 costs, calculated in accordance with the entry age actuarial
97.16 cost method.
97.17 Subd. 4c 7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For
97.18 each fund providing benefits under the a money purchase or
97.19 defined contribution plan, the actuarial valuation shall must
97.20 contain an exhibit indicating the member contributions
97.21 accumulated at interest, as apportioned to members accounts, to
97.22 the date of the valuation. These accumulations shall must be
97.23 separately tabulated in a manner which properly reflects any
97.24 differences in money purchase or defined contribution annuity
97.25 rates which may apply.
97.26 Subd. 4d 8. [INTEREST AND SALARY ASSUMPTIONS.] (a) The
97.27 actuarial valuation must use the applicable following
97.28 preretirement interest assumption and the applicable following
97.29 postretirement interest assumption:
97.30 preretirement postretirement
97.31 interest rate interest rate
97.32 plan assumption assumption
97.33 general state employees
97.34 retirement plan 8.5% 6.0%
97.35 correctional state employees
97.36 retirement plan 8.5 6.0
97.37 state patrol retirement plan 8.5 6.0
97.38 legislators retirement plan 8.5 6.0
97.39 elective state officers
97.40 retirement plan 8.5 6.0
97.41 judges retirement plan 8.5 6.0
97.42 general public employees
98.1 retirement plan 8.5 6.0
98.2 public employees police and fire
98.3 retirement plan 8.5 6.0
98.4 local government correctional
98.5 service retirement plan 8.5 6.0
98.6 teachers retirement plan 8.5 6.0
98.7 Minneapolis employees
98.8 retirement plan 6.0 5.0
98.9 Duluth teachers retirement plan 8.5 8.5
98.10 Minneapolis teachers retirement
98.11 plan 8.5 8.5
98.12 St. Paul teachers retirement
98.13 plan 8.5 8.5
98.14 Minneapolis police relief
98.15 association 6.0 6.0
98.16 other local Fairmont police relief
98.17 associations association 5.0 5.0
98.18 Minneapolis fire department
98.19 relief association 6.0 6.0
98.20 other local salaried firefighters
98.21 Virginia fire department
98.22 relief associations association 5.0 5.0
98.23 local monthly benefit volunteer
98.24 firefighters relief associations 5.0 5.0
98.25 (b) The actuarial valuation must use the applicable
98.26 following single rate future salary increase assumption, the
98.27 applicable following modified single rate future salary increase
98.28 assumption, or the applicable following graded rate future
98.29 salary increase assumption:
98.30 (1) single rate future salary increase assumption
98.31 future salary
98.32 plan increase assumption
98.33 legislators retirement plan 5.0%
98.34 elective state officers retirement
98.35 plan 5.0
98.36 judges retirement plan 5.0
98.37 Minneapolis police relief association 4.0
98.38 other local Fairmont police relief
98.39 associations association 3.5
98.40 Minneapolis fire department relief
98.41 association 4.0
98.42 other local salaried firefighters
98.43 Virginia fire department
98.44 relief associations association 3.5
98.45 (2) modified single rate future salary increase assumption
98.46 future salary
98.47 plan increase assumption
98.48 Minneapolis employees the prior calendar year
98.49 retirement plan amount increased first by
98.50 1.0198 percent to prior
98.51 fiscal year date and
98.52 then increased by 4.0
98.53 percent annually for
98.54 each future year
98.55 (3) select and ultimate future salary increase assumption
98.56 or graded rate future salary increase assumption
98.57 future salary
98.58 plan increase assumption
98.59 general state employees select calculation and
99.1 retirement plan assumption A
99.2 correctional state employees
99.3 retirement plan assumption H
99.4 state patrol retirement plan assumption H
99.5 general public employees select calculation and
99.6 retirement plan assumption B
99.7 public employees police and fire
99.8 fund retirement plan assumption C
99.9 local government correctional service
99.10 retirement plan assumption H
99.11 teachers retirement plan assumption D
99.12 Duluth teachers retirement plan assumption E
99.13 Minneapolis teachers retirement plan assumption F
99.14 St. Paul teachers retirement plan assumption G
99.15
99.16 The select calculation is:
99.17 during the ten-year select period, 0.2 a designated percent
99.18 is multiplied by the result of ten minus T, where T is
99.19 the number of completed years of service, and is added
99.20 to the applicable future salary increase assumption. The
99.21 designated percent is 0.2 percent for the correctional state
99.22 employees retirement plan, the state patrol retirement
99.23 plan, the public employees police and fire plan, and the
99.24 local government correctional service plan; 0.3 percent
99.25 for the general state employees retirement plan, the
99.26 general public employees retirement plan, the teachers
99.27 retirement plan, the Duluth teachers retirement fund
99.28 association, and the St. Paul teachers retirement fund
99.29 association; and 0.4 percent for the Minneapolis teachers
99.30 retirement fund association.
99.31
99.32 The ultimate future salary increase assumption is:
99.33
99.34 age A B C D E F G H
99.35 16 6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
99.36 6.50 6.90
99.37 17 6.90 6.90 11.50 8.15 8.00 7.50 7.25 7.7500
99.38 6.50 6.90
99.39 18 6.85 6.85 11.50 8.10 8.00 7.50 7.25 7.7500
99.40 6.50 6.90
99.41 19 6.80 6.80 11.50 8.05 8.00 7.50 7.25 7.7500
99.42 6.50 6.90
99.43 20 6.75 6.75 11.50 8.00 8.00 7.50 7.25 7.7500
99.44 6.40 6.00 6.90 6.50 6.90
99.45 21 6.70 6.70 11.50 7.95 8.00 7.50 7.25 7.1454
99.46 6.75 6.40 6.00 6.90 6.50 6.90
99.47 22 6.65 6.65 11.00 7.90 8.00 7.50 7.25 7.0725
99.48 6.75 6.40 6.00 6.90 6.50 6.90
99.49 23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544
99.50 24 6.66 6.55 10.00 7.80 7.80 7.30 7.20 7.0363
99.51 6.75 6.40 6.00 6.80 6.50 6.80
99.52 25 6.50 6.50 9.50 7.75 7.70 7.20 7.15 7.0000
99.53 6.75 6.40 6.00 6.75 6.50 6.75
99.54 26 6.45 6.45 9.20 7.70 7.60 7.10 7.10 7.0000
99.55 6.75 6.36 6.00 6.70 6.50 6.70
99.56 27 6.40 6.40 8.90 7.65 7.50 7.00 7.05 7.0000
99.57 6.75 6.32 6.00 6.65 6.50 6.65
99.58 28 6.35 6.35 8.60 7.60 7.40 6.90 7.00 7.0000
99.59 6.75 6.28 6.00 6.60 6.50 6.60
99.60 29 6.30 6.30 8.30 7.55 7.30 6.80 6.95 7.0000
99.61 6.75 6.24 6.00 6.55 6.50 6.55
99.62 30 6.25 6.30 8.00 7.50 7.20 6.70 6.90 7.0000
99.63 6.75 6.20 6.00 6.50 6.50 6.50
99.64 31 6.20 6.25 7.80 7.45 7.10 6.60 6.85 7.0000
99.65 6.75 6.16 6.00 6.45 6.50 6.45
99.66 32 6.15 6.21 7.60 7.40 7.00 6.50 6.80 7.0000
99.67 6.75 6.12 6.00 6.40 6.50 6.40
99.68 33 6.10 6.17 7.40 7.30 6.90 6.40 6.75 7.0000
99.69 6.75 6.08 6.00 6.35 6.50 6.35
99.70 34 6.05 6.09 7.20 7.10 6.80 6.30 6.70 7.0000
99.71 6.75 6.04 6.00 6.30 6.50 6.30
100.1 35 6.00 6.05 7.00 7.00 6.70 6.20 6.65 7.0000
100.2 6.75 6.00 6.00 6.25 6.50 6.25
100.3 36 6.95 6.01 6.80 6.85 6.60 6.10 6.60 6.9019
100.4 6.75 5.96 6.00 6.20 6.50 6.20
100.5 37 5.90 5.97 6.60 6.70 6.50 6.00 6.55 6.8074
100.6 6.75 5.92 6.00 6.15 6.50 6.15
100.7 38 5.85 5.93 6.40 6.55 6.40 5.90 6.50 6.7125
100.8 6.75 5.88 5.90 6.10 6.50 6.10
100.9 39 5.80 5.89 6.20 6.40 6.30 5.80 6.40 6.6054
100.10 6.75 5.84 5.80 6.05 6.50 6.05
100.11 40 5.75 5.85 6.00 6.25 6.20 5.70 6.30 6.5000
100.12 6.75 5.80 5.70 6.00 6.50 6.00
100.13 41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540
100.14 6.75 5.76 5.60 5.90 6.50 5.95
100.15 42 5.65 5.77 5.80 5.95 6.00 5.50 6.10 6.2087
100.16 6.75 5.72 5.50 5.80 6.50 5.90
100.17 43 5.60 5.73 5.70 5.80 5.90 5.45 6.00 6.0622
100.18 6.65 5.68 5.40 5.70 6.50 5.85
100.19 44 5.55 5.69 5.60 5.65 5.80 5.40 5.90 5.9048
100.20 6.55 5.64 5.30 5.60 6.50 5.80
100.21 45 5.50 5.65 5.50 5.50 5.70 5.35 5.80 5.7500
100.22 6.45 5.60 5.20 5.50 6.50 5.75
100.23 46 5.45 5.62 5.45 5.45 5.60 5.30 5.70 5.6940
100.24 6.35 5.56 5.10 5.40 6.40 5.70
100.25 47 5.40 5.59 5.40 5.40 5.50 5.25 5.65 5.6375
100.26 6.25 5.52 5.00 5.30 6.30
100.27 48 5.35 5.56 5.35 5.35 5.45 5.20 5.60 5.5822
100.28 6.15 5.48 5.00 5.20 6.20
100.29 49 5.30 5.53 5.30 5.30 5.40 5.15 5.55 5.5404
100.30 6.05 5.44 5.00 5.10 6.10
100.31 50 5.25 5.50 5.25 5.25 5.35 5.10 5.50 5.5000
100.32 5.95 5.40 5.00 5.00 6.00
100.33 51 5.20 5.45 5.25 5.20 5.30 5.05 5.45 5.4384
100.34 5.85 5.36 5.00 5.00 5.90
100.35 52 5.15 5.40 5.25 5.15 5.25 5.00 5.40 5.3776
100.36 5.75 5.32 5.00 5.00 5.80
100.37 53 5.10 5.35 5.25 5.10 5.25 5.00 5.35 5.3167
100.38 5.65 5.28 5.00 5.00 5.70
100.39 54 5.05 5.30 5.25 5.05 5.25 5.00 5.30 5.2826
100.40 5.55 5.24 5.00 5.00 5.60
100.41 55 5.00 5.25 5.25 5.00 5.25 5.00 5.25 5.2500
100.42 5.45 5.20 5.00 5.50
100.43 56 5.00 5.20 5.25 5.00 5.25 5.00 5.25 5.2500
100.44 5.35 5.16 5.00 5.40 5.20
100.45 57 5.00 5.15 5.25 5.00 5.25 5.00 5.25 5.2500
100.46 5.25 5.12 5.00 5.30 5.15
100.47 58 5.00 5.10 5.25 5.00 5.25 5.00 5.25 5.2500
100.48 5.25 5.08 5.10 5.00 5.20 5.10
100.49 59 5.00 5.05 5.25 5.00 5.25 5.00 5.25 5.2500
100.50 5.25 5.04 5.20 5.00 5.10 5.05
100.51 60 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.52 5.25 5.30 5.00 5.00
100.53 61 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.54 5.25 5.40 5.00 5.00
100.55 62 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.56 5.25 5.50 5.00 5.00
100.57 63 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.58 5.25 5.60 5.00 5.00
100.59 64 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.60 5.25 5.70 5.00 5.00
100.61 65 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.62 5.25 5.70 5.00 5.00
100.63 66 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.64 5.25 5.70 5.00 5.00
100.65 67 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.66 5.25 5.70 5.00 5.00
100.67 68 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.68 5.25 5.70 5.00 5.00
100.69 69 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
100.70 5.25 5.70 5.00 5.00
100.71 70 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
101.1 5.25 5.70 5.00 5.00
101.2 71 5.00 5.00 5.00
101.3 5.25 5.70
101.4 (c) The actuarial valuation must use the applicable
101.5 following payroll growth assumption for calculating the
101.6 amortization requirement for the unfunded actuarial accrued
101.7 liability where the amortization retirement is calculated as a
101.8 level percentage of an increasing payroll:
101.9 payroll growth
101.10 plan assumption
101.11 general state employees retirement plan 5.00%
101.12 correctional state employees retirement plan 5.00
101.13 state patrol retirement plan 5.00
101.14 legislators retirement plan 5.00
101.15 elective state officers retirement plan 5.00
101.16 judges retirement plan 5.00
101.17 general public employees retirement plan 6.00
101.18 public employees police and fire
101.19 retirement plan 6.00
101.20 local government correctional service
101.21 retirement plan 6.00
101.22 teachers retirement plan 5.00
101.23 Duluth teachers retirement plan 5.00
101.24 Minneapolis teachers retirement plan 5.00
101.25 St. Paul teachers retirement plan 5.00
101.26 Subd. 4e 9. [OTHER ASSUMPTIONS.] The actuarial valuation
101.27 must use assumptions concerning mortality, disability,
101.28 retirement, withdrawal, retirement age, and any other relevant
101.29 demographic or economic factor. These assumptions must be set
101.30 at levels consistent with those determined in the most recent
101.31 quadrennial experience study completed under subdivision 5 16,
101.32 if required, or representative of the best estimate of future
101.33 experience, if a quadrennial experience study is not required.
101.34 The actuarial valuation must contain an exhibit indicating any
101.35 actuarial assumptions used in preparing the valuation report.
101.36 Subd. 4f 10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE
101.37 INFORMATION.] The actuarial valuation must contain those
101.38 actuarial calculations that are necessary to allow the
101.39 retirement plan administration or participating employing units
101.40 to prepare the pension-related portions of annual financial
101.41 reporting that meet generally accepted accounting principles for
101.42 the public sector.
101.43 Subd. 4g 11. [AMORTIZATION CONTRIBUTIONS.] (a) In addition
101.44 to the exhibit indicating the level normal cost, the actuarial
101.45 valuation must contain an exhibit indicating the additional
102.1 annual contribution sufficient to amortize the unfunded
102.2 actuarial accrued liability. For funds governed by chapters 3A,
102.3 352, 352B, 352C, 353, 354, 354A, and 490, the additional
102.4 contribution must be calculated on a level percentage of covered
102.5 payroll basis by the established date for full funding in effect
102.6 when the valuation is prepared. For funds governed by chapter
102.7 3A, sections 352.90 through 352.951, chapters 352B, 352C,
102.8 sections 353.63 through 353.68, and chapters 353C, 354A, and
102.9 490, the level percent additional contribution must be
102.10 calculated assuming annual payroll growth of 6.5 percent. For
102.11 funds governed by sections 352.01 through 352.86 and chapter
102.12 354, the level percent additional contribution must be
102.13 calculated assuming an annual payroll growth of five percent.
102.14 For the fund governed by sections 353.01 through 353.46, the
102.15 level percent additional contribution must be calculated
102.16 assuming an annual payroll growth of six percent. For all other
102.17 funds, the additional annual contribution must be calculated on
102.18 a level annual dollar amount basis.
102.19 (b) For any fund other than the Minneapolis employees
102.20 retirement fund and the public employees retirement association
102.21 general plan, if there has not been a change in the actuarial
102.22 assumptions used for calculating the actuarial accrued liability
102.23 of the fund, a change in the benefit plan governing annuities
102.24 and benefits payable from the fund, a change in the actuarial
102.25 cost method used in calculating the actuarial accrued liability
102.26 of all or a portion of the fund, or a combination of the three,
102.27 which change or changes by itself or by themselves without
102.28 inclusion of any other items of increase or decrease produce a
102.29 net increase in the unfunded actuarial accrued liability of the
102.30 fund, the established date for full funding is the first
102.31 actuarial valuation date occurring after June 1, 2020.
102.32 (c) For any fund or plan other than the Minneapolis
102.33 employees retirement fund and the public employees retirement
102.34 association general plan, if there has been a change in any or
102.35 all of the actuarial assumptions used for calculating the
102.36 actuarial accrued liability of the fund, a change in the benefit
103.1 plan governing annuities and benefits payable from the fund, a
103.2 change in the actuarial cost method used in calculating the
103.3 actuarial accrued liability of all or a portion of the fund, or
103.4 a combination of the three, and the change or changes, by itself
103.5 or by themselves and without inclusion of any other items of
103.6 increase or decrease, produce a net increase in the unfunded
103.7 actuarial accrued liability in the fund, the established date
103.8 for full funding must be determined using the following
103.9 procedure:
103.10 (i) the unfunded actuarial accrued liability of the fund
103.11 must be determined in accordance with the plan provisions
103.12 governing annuities and retirement benefits and the actuarial
103.13 assumptions in effect before an applicable change;
103.14 (ii) the level annual dollar contribution or level
103.15 percentage, whichever is applicable, needed to amortize the
103.16 unfunded actuarial accrued liability amount determined under
103.17 item (i) by the established date for full funding in effect
103.18 before the change must be calculated using the interest
103.19 assumption specified in subdivision 4d 8 in effect before the
103.20 change;
103.21 (iii) the unfunded actuarial accrued liability of the fund
103.22 must be determined in accordance with any new plan provisions
103.23 governing annuities and benefits payable from the fund and any
103.24 new actuarial assumptions and the remaining plan provisions
103.25 governing annuities and benefits payable from the fund and
103.26 actuarial assumptions in effect before the change;
103.27 (iv) the level annual dollar contribution or level
103.28 percentage, whichever is applicable, needed to amortize the
103.29 difference between the unfunded actuarial accrued liability
103.30 amount calculated under item (i) and the unfunded actuarial
103.31 accrued liability amount calculated under item (iii) over a
103.32 period of 30 years from the end of the plan year in which the
103.33 applicable change is effective must be calculated using the
103.34 applicable interest assumption specified in subdivision 4d 8 in
103.35 effect after any applicable change;
103.36 (v) the level annual dollar or level percentage
104.1 amortization contribution under item (iv) must be added to the
104.2 level annual dollar amortization contribution or level
104.3 percentage calculated under item (ii);
104.4 (vi) the period in which the unfunded actuarial accrued
104.5 liability amount determined in item (iii) is amortized by the
104.6 total level annual dollar or level percentage amortization
104.7 contribution computed under item (v) must be calculated using
104.8 the interest assumption specified in subdivision 4d 8 in effect
104.9 after any applicable change, rounded to the nearest integral
104.10 number of years, but not to exceed 30 years from the end of the
104.11 plan year in which the determination of the established date for
104.12 full funding using the procedure set forth in this clause is
104.13 made and not to be less than the period of years beginning in
104.14 the plan year in which the determination of the established date
104.15 for full funding using the procedure set forth in this clause is
104.16 made and ending by the date for full funding in effect before
104.17 the change; and
104.18 (vii) the period determined under item (vi) must be added
104.19 to the date as of which the actuarial valuation was prepared and
104.20 the date obtained is the new established date for full funding.
104.21 (d) For the Minneapolis employees retirement fund, the
104.22 established date for full funding is June 30, 2020.
104.23 (e) For the general employees retirement plan of the public
104.24 employees retirement association general plan, the established
104.25 date for full funding is June 30, 2031.
104.26 (f) For the retirement plans for which the annual actuarial
104.27 valuation indicates an excess of valuation assets over the
104.28 actuarial accrued liability, the valuation assets in excess of
104.29 the actuarial accrued liability must be recognized as a
104.30 reduction in the current contribution requirements by an amount
104.31 equal to the amortization of the excess expressed as a level
104.32 percentage of pay over a 30-year period beginning anew with each
104.33 annual actuarial valuation of the plan.
104.34 Subd. 4h 12. [ACTUARIAL GAINS AND LOSSES.] The actuarial
104.35 valuation must contain an exhibit consisting of an analysis by
104.36 the actuary explaining the net increase or decrease in the
105.1 unfunded actuarial accrued liability since the last valuation.
105.2 The explanation must subdivide the net increase or decrease in
105.3 the unfunded actuarial accrued liability into at least the
105.4 following parts:
105.5 (a) (1) increases or decreases in the unfunded actuarial
105.6 accrued liability because of changes in benefits;
105.7 (b) (2) increases and decreases in the unfunded actuarial
105.8 accrued liability because of changes in actuarial assumptions;
105.9 (c) (3) increases or decreases in the unfunded actuarial
105.10 accrued liability attributable to actuarial gains or losses
105.11 resulting from any experience deviations from the assumptions on
105.12 which the valuation is based, as follows:
105.13 (i) actual investment earnings;
105.14 (ii) actual postretirement mortality rates;
105.15 (iii) actual salary increase rates; and
105.16 (iv) the remainder of the increase or decrease not
105.17 attributable to any separate source;
105.18 (d) (4) increases or decreases in unfunded actuarial
105.19 accrued liability because of other reasons, including the effect
105.20 of any amortization contribution paid or additional amortization
105.21 contribution previously calculated but unpaid; and
105.22 (e) (5) increases or decreases in unfunded actuarial
105.23 accrued liability because of changes in eligibility requirements
105.24 or groups included in the membership of the fund.
105.25 Subd. 4i 13. [MEMBERSHIP TABULATION.] (a) The actuarial
105.26 valuation must contain a tabulation of active membership and
105.27 annuitants in the fund. If the membership of a fund is under
105.28 more than one general benefit program, a separate tabulation
105.29 must be made for each general benefit program.
105.30 (b) The tabulations must be prepared by the administration
105.31 of the pension fund and must contain the following information:
105.32 (1) Active members Number
105.33 As of last valuation date
105.34 New entrants
105.35 Total
105.36 Separations from active service
106.1 Refund of contributions
106.2 Separation with deferred annuity
106.3 Separation with neither refund
106.4 nor deferred annuity
106.5 Disability
106.6 Death
106.7 Retirement with service annuity
106.8 Total separations
106.9 As of current valuation date
106.10 (2) Annuitants Number
106.11 As of last valuation date
106.12 New entrants
106.13 Total
106.14 Terminations
106.15 Deaths
106.16 Other
106.17 Total terminations
106.18 As of current valuation date
106.19 (c) The tabulation required under paragraph (b), clause
106.20 (2), must be made separately for each of the following classes
106.21 of benefit recipients:
106.22 (1) service retirement annuitants;
106.23 (2) disability benefit recipients;
106.24 (3) survivor benefit recipients; and
106.25 (4) deferred annuitants.
106.26 Subd. 4j 14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial
106.27 valuation must indicate the administrative expenses of the fund,
106.28 expressed both in dollars and as a percentage of covered payroll.
106.29 (b) Administrative expenses are the costs incurred by the
106.30 retirement plans in the course of operating the plan, excluding
106.31 investment expenses. Investment expenses include all expenses
106.32 incurred for the retention of professional external investment
106.33 managers and professional investment consultants, custodian bank
106.34 fees, investment transaction costs, and the costs incurred by
106.35 the retirement plans to manage investment portfolios or assets
106.36 internally. Investment expenses must be deducted from the
107.1 investment return used in the actuarial valuation, and must not
107.2 be included in administrative expenses when calculating the
107.3 allowance for expenses.
107.4 Subd. 4k 15. [BENEFIT PLAN SUMMARY.] The actuarial
107.5 valuation must contain a summary of the principal provisions of
107.6 the benefit plan upon which the valuation is based.
107.7 Subd. 5 16. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A
107.8 quadrennial experience study, if required, must contain an
107.9 actuarial analysis by the approved actuary of the experience of
107.10 the fund and a comparison of the experience with the actuarial
107.11 assumptions on which the most recent actuarial valuation of the
107.12 retirement fund was based.
107.13 Subd. 6 17. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.]
107.14 (a) The actuarial valuation or quadrennial experience study must
107.15 be made and any actuarial consulting services for a retirement
107.16 fund or plan must be provided by an approved actuary. The
107.17 actuarial valuation or quadrennial experience study must include
107.18 a signed written declaration that it has been prepared according
107.19 to sections 356.20 to 356.23 and according to the most recent
107.20 standards for actuarial work adopted by the legislative
107.21 commission on pensions and retirement.
107.22 (b) Actuarial valuations, or experience studies prepared by
107.23 an approved actuary retained by a retirement fund or plan must
107.24 be submitted to the legislative commission on pensions and
107.25 retirement within ten days of the submission of the document to
107.26 the retirement fund or plan.
107.27 Subd. 7 18. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a)
107.28 The actuarial assumptions used for the preparation of actuarial
107.29 valuations under this section that are other than those set
107.30 forth in this section may be changed only with the approval of
107.31 the legislative commission on pensions and retirement.
107.32 (b) A change in the applicable actuarial assumptions may be
107.33 proposed by the governing board of the applicable pension fund
107.34 or relief association, by the actuary retained by the
107.35 legislative commission on pensions and retirement, by the
107.36 actuarial advisor to a pension fund governed by chapter 352,
108.1 353, 354, or 354A, or by the actuary retained by a local police
108.2 or firefighters relief association governed by sections 69.77 or
108.3 69.771 to 69.776, if one is retained.
108.4 Sec. 8. Minnesota Statutes 2000, section 356.216, is
108.5 amended to read:
108.6 356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
108.7 AND FIRE FUNDS.]
108.8 (a) The provisions of section 356.215 governing that govern
108.9 the contents of actuarial valuations shall must apply to any
108.10 local police or fire pension fund or relief association required
108.11 to make an actuarial report under this section, except as
108.12 follows:
108.13 (1) in calculating normal cost and other requirements, if
108.14 required to be expressed as a level percentage of covered
108.15 payroll, the salaries used in computing covered payroll shall
108.16 must be the maximum rate of salary from on which retirement and
108.17 survivorship credits and amounts of benefits are determined and
108.18 from which any member contributions are calculated and deducted;
108.19 (2) in lieu of the amortization date specified in section
108.20 356.215, subdivision 4g 11, the appropriate amortization target
108.21 date specified in section 69.77, subdivision 2b, or 69.773,
108.22 subdivision 4, clause (c), shall must be used in calculating any
108.23 required amortization contribution;
108.24 (3) in addition to the tabulation of active members and
108.25 annuitants provided for in section 356.215, subdivision 4i 13,
108.26 the member contributions for active members for the calendar
108.27 year and the prospective annual retirement annuities under the
108.28 benefit plan for active members shall must be reported;
108.29 (4) actuarial valuations required pursuant to under section
108.30 69.773, subdivision 2, shall must be made at least every four
108.31 years and actuarial valuations required pursuant to under
108.32 section 69.77 shall be made annually; and
108.33 (5) the actuarial balance sheet showing accrued assets
108.34 valued at market value if the actuarial valuation is required to
108.35 be prepared at least every four years or valued as current
108.36 assets under section 356.215, subdivision 1, clause (6), or
109.1 paragraph (b), whichever applies, if the actuarial valuation is
109.2 required to be prepared annually, actuarial accrued liabilities,
109.3 and the unfunded actuarial accrued liability shall must include
109.4 the following required reserves:
109.5 (a) (i) For active members
109.6 1. Retirement benefits
109.7 2. Disability benefits
109.8 3. Refund liability due to death or withdrawal
109.9 4. Survivors' benefits
109.10 (b) (ii) For deferred annuitants' benefits
109.11 (c) (iii) For former members without vested rights
109.12 (d) (iv) For annuitants
109.13 1. Retirement annuities
109.14 2. Disability annuities
109.15 3. Surviving spouses' annuities
109.16 4. Surviving children's annuities
109.17 In addition to those required reserves, separate items
109.18 shall must be shown for additional benefits, if any, which may
109.19 not be appropriately included in the reserves listed above.; and
109.20 (6) actuarial valuations shall be are due by the first day
109.21 of the seventh month after the end of the fiscal year which the
109.22 actuarial valuation covers.
109.23 (b) For a the Minneapolis firefighters relief association
109.24 or the Minneapolis police relief association in a city of the
109.25 first class with a population of more than 300,000, the
109.26 following provisions additionally apply:
109.27 (1) in calculating the actuarial balance sheet, unfunded
109.28 actuarial accrued liability, and amortization contribution of
109.29 the relief association, "current assets" means the value of all
109.30 assets at cost, including realized capital gains and losses,
109.31 plus or minus, whichever applies, the average value of total
109.32 unrealized capital gains or losses for the most recent
109.33 three-year period ending with the end of the plan year
109.34 immediately preceding the actuarial valuation report
109.35 transmission date; and
109.36 (2) in calculating the applicable portions of the actuarial
110.1 valuation, an annual preretirement interest assumption of six
110.2 percent, an annual postretirement interest assumption of six
110.3 percent, and an annual salary increase assumption of four
110.4 percent must be used.
110.5 Sec. 9. Minnesota Statutes 2000, section 356.217, is
110.6 amended to read:
110.7 356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.]
110.8 (a) The cost of any requested benefit projections prepared
110.9 by the commission-retained actuary relating to the Minnesota
110.10 postretirement investment fund for at the request of the state
110.11 board of investment is payable by the state board of investment.
110.12 (b) Actuarial valuations under section 356.215, for July 1,
110.13 1991, and thereafter, are not required to have an individual
110.14 commentary section. The commentary section, if omitted from the
110.15 individual plan actuarial valuation valuations, must be included
110.16 in an appropriate generalized format as part of the report to
110.17 the legislature under section 3.85, subdivision 11.
110.18 (c) Actuarial valuations under section 356.215, for July 1,
110.19 1991, and thereafter, are not required to contain separate
110.20 actuarial valuation results for basic and coordinated programs
110.21 unless each program has a membership of at least ten percent of
110.22 the total membership of the fund. Actuarial valuations under
110.23 section 356.215, for July 1, 1991, and thereafter, are not
110.24 required to contain cash flow forecasts.
110.25 (d) Actuarial valuations of the public employees police and
110.26 fire fund local consolidation accounts for July 1, 1991, and
110.27 thereafter, are not required to contain separate tabulations or
110.28 summaries of active member, service retirement, disability
110.29 retirement, and survivor data for each local consolidation
110.30 account.
110.31 (e) The commission-retained actuary is:
110.32 (1) required to publish experience findings for those
110.33 retirement plans for which experience findings are required only
110.34 on a quadrennial basis for the four-year period ending June 30,
110.35 1992, and every four years thereafter;
110.36 (2) not required to prepare a separate experience analysis
111.1 or publish separate experience findings for basic and
111.2 coordinated programs if separate actuarial valuation results for
111.3 the programs are not required; and
111.4 (3) not required to calculate investment rate of return
111.5 experience results on any basis other than current asset value
111.6 as defined in section 356.215, subdivision 1, clause
111.7 (6) paragraph (f).
111.8 Sec. 10. Minnesota Statutes 2000, section 356.219, is
111.9 amended to read:
111.10 356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT
111.11 PORTFOLIO AND PERFORMANCE INFORMATION.]
111.12 Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated
111.13 in subdivision 4, the state board of investment, on behalf of
111.14 the public pension funds and programs for which it is the
111.15 investment authority, and any Minnesota public pension plan that
111.16 is not fully invested through the state board of investment,
111.17 including a local police or firefighters' relief association
111.18 governed by sections 69.77 or 69.771 to 69.775, shall report the
111.19 information specified in subdivision 3 to the state auditor.
111.20 The state auditor may prescribe a form or forms for the purposes
111.21 of the reporting requirements contained in this section.
111.22 (b) A local police or firefighters' relief association
111.23 governed by section 69.77 or sections 69.771 to 69.775 is fully
111.24 invested during a given calendar year for purposes of this
111.25 section if all assets of the applicable pension plan beyond
111.26 sufficient cash equivalent investments to cover six months
111.27 expected expenses are invested under section 11A.17. The board
111.28 of any fully invested public pension plan remains responsible
111.29 for submitting investment policy statements and subsequent
111.30 revisions as required by subdivision 3, paragraph (a).
111.31 (c) For purposes of this section, the state board of
111.32 investment is considered to be the investment authority for any
111.33 Minnesota public pension fund required to be invested by the
111.34 state board of investment under section 11A.23, or for any
111.35 Minnesota public pension fund authorized to invest in the
111.36 supplemental investment fund under section 11A.17 and which is
112.1 fully invested by the state board of investment.
112.2 Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of
112.3 this section, "asset class" means any of the following asset
112.4 groupings as authorized in applicable law, bylaws, or articles
112.5 of incorporation:
112.6 (1) cash and any cash equivalent investments with
112.7 maturities of one year or less when issued;
112.8 (2) debt securities with maturities greater than one year
112.9 when issued, including but not limited to mortgage participation
112.10 certificates and pools, asset backed securities, guaranteed
112.11 investment contracts, and authorized government and corporate
112.12 obligations of corporations organized under laws of the United
112.13 States or any state, or the Dominion of Canada or its provinces;
112.14 (3) stocks or convertible issues of any corporation
112.15 organized under laws of the United States or any state, or the
112.16 Dominion of Canada or its provinces, or any corporation listed
112.17 on the New York Stock Exchange or the American Stock Exchange;
112.18 (4) international stocks or convertible issues;
112.19 (5) international debt securities; and
112.20 (6) real estate and venture capital.
112.21 (b) If the pension plan is investing under section 69.77,
112.22 subdivision 2g, section 69.775, or any other applicable law, in
112.23 open-end investment companies registered under the federal
112.24 Investment Company Act of 1940, or in the Minnesota supplemental
112.25 investment fund under section 11A.17, this investment must be
112.26 included under an asset class indicated in paragraph (a),
112.27 clauses (1) through (6), as appropriate. If the investment
112.28 vehicle includes underlying securities from more than one asset
112.29 class as indicated by paragraph (a), clauses (1) through (6),
112.30 the investment may be treated as a separate asset class.
112.31 Subd. 3. [CONTENT OF REPORTS.] (a) The report required by
112.32 subdivision 1 must include a written statement of the investment
112.33 policy in effect on June 30, 1997, if that statement has not
112.34 been previously submitted. Following that date, subsequent
112.35 reports must include investment policy changes and the effective
112.36 date of each policy change rather than a complete statement of
113.1 investment policy, unless the state auditor requests submission
113.2 of a complete current statement. The report must also include
113.3 the information required by the following paragraphs, as
113.4 applicable.
113.5 (b) If a public pension plan has a total market value of
113.6 $10,000,000 or more as of the beginning of the calendar year,
113.7 the report required by subdivision 1 must include the market
113.8 value of the total portfolio and the market value of each
113.9 investment account, investment portfolio, or asset class
113.10 included in the pension fund as of the beginning of the calendar
113.11 year and for each month, and the amount and date of each
113.12 injection and withdrawal to the total portfolio and to each
113.13 investment account, investment portfolio, or asset class. If a
113.14 public pension plan once files a report under this paragraph, it
113.15 must continue reporting under this paragraph for any subsequent
113.16 year in which the public pension plan is not fully invested as
113.17 specified in subdivision 1, paragraph (b), even if asset values
113.18 drop below $10,000,000 in market value in a that subsequent year.
113.19 (c) For public pension plans to which paragraph (b)
113.20 applies, the report required by subdivision 1 must also include
113.21 a calculation of the total time-weighted rate of return
113.22 available from index-matching investments assuming the asset
113.23 class performance targets and target asset mix indicated in the
113.24 written statement of investment policy. The provided
113.25 information must include a description of indices used in the
113.26 analyses and an explanation of why those indices are
113.27 appropriate. This paragraph does not apply to any fully
113.28 invested plan, as defined by subdivision 1, paragraph (b).
113.29 Reporting by the state board of investment under this paragraph
113.30 is limited to information on the Minnesota public pension plans
113.31 required to be invested by the state board of investment under
113.32 section 11A.23.
113.33 (d) If a public pension plan has a total market value of
113.34 less than $10,000,000 as of the beginning of the calendar year
113.35 and was never required to file under paragraph (b), the report
113.36 required by subdivision 1 must include the amount and date of
114.1 each total portfolio injection and withdrawal. In addition, the
114.2 report must include the market value of the total portfolio as
114.3 of the beginning of the calendar year and for each quarter.
114.4 (e) Any public pension plan reporting under paragraph (b)
114.5 or (d) may include computed time-weighted rates of return with
114.6 the report, in addition to all other required information, as
114.7 applicable. If these returns are supplied, the individual who
114.8 computed the returns must certify that the returns are net of
114.9 all costs and fees, including investment management fees, and
114.10 that the procedures used to compute the returns are consistent
114.11 with bank administration institute studies of investment
114.12 performance measurement and association of investment management
114.13 and research presentation standards.
114.14 (f) For public pension plans reporting under paragraph (d),
114.15 the public pension plan must retain supporting information
114.16 specifying the date and amount of each injection and withdrawal
114.17 to each investment account and investment portfolio. The public
114.18 pension plan must also retain the market value of each
114.19 investment account and investment portfolio at the beginning of
114.20 the calendar year and for each quarter. Information that is
114.21 required to be collected and retained for any given year or
114.22 years under this paragraph must be submitted to the office of
114.23 the state auditor if the office of the state auditor requests in
114.24 writing that the information be submitted by a public pension
114.25 plan or plans, or be submitted by the state board of investment
114.26 for any plan or plans for which the state board of investment is
114.27 the investment authority under this section. If the state
114.28 auditor requests information under this subdivision, and the
114.29 public plan fails to comply, the pension plan will be is subject
114.30 to penalties under subdivision 5, unless penalties are waived by
114.31 the state auditor under that subdivision.
114.32 Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu
114.33 of requirements in subdivision 3, the applicable administration
114.34 for the individual retirement account plans under chapters 354B
114.35 and 354D and for the University of Minnesota faculty retirement
114.36 plan shall submit computed time-weighted rates of return to the
115.1 office of the state auditor. These time-weighted rates of
115.2 return must cover the most recent complete calendar year, and
115.3 must be computed separately for each investment option available
115.4 to plan members. To the extent feasible, the returns must be
115.5 computed net of all investment costs, fees, and charges, so that
115.6 the computed return reflects the net time-weighted return
115.7 available to the investor. If this is not practical, the
115.8 existence of any remaining investment cost, fee, or charge which
115.9 could further lower the net return must be disclosed. The
115.10 procedures used to compute the returns must be consistent with
115.11 bank administration institute studies of investment performance
115.12 measurement and association of investment management and
115.13 research presentation standards, or, if applicable, securities
115.14 exchange commission requirements. The individual who computes
115.15 the returns must certify that the supplied returns comply with
115.16 this subdivision. The applicable plan administrator must also
115.17 submit, with the return information, the total amounts invested
115.18 by the plan members, in aggregate, in each investment option as
115.19 of the last day of the calendar year.
115.20 Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply
115.21 with the reporting requirements of this section shall must
115.22 result in a withholding of all state aid or state appropriation
115.23 to which the pension plan may otherwise be directly or
115.24 indirectly entitled until the pension plan has complied with the
115.25 reporting requirements. The state auditor shall instruct the
115.26 commissioners of revenue and finance to withhold any state aid
115.27 or state appropriation from any pension plan that fails to
115.28 comply with the reporting requirements contained in this
115.29 section, until the pension plan has complied with the reporting
115.30 requirements. The state auditor may waive the withholding of
115.31 state aid or state appropriations if the state auditor
115.32 determines in writing that compliance would create an excessive
115.33 hardship for the pension plan.
115.34 Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state
115.35 auditor shall prepare an annual report to the legislature on the
115.36 investment performance of the various public pension plans
116.1 subject to this section. The content of the report is specified
116.2 in paragraphs (b) to (e).
116.3 (b) For each public pension plan reporting under
116.4 subdivision 3, paragraph (b), the state auditor shall compute
116.5 and report total portfolio and asset class time-weighted rates
116.6 of return, net of all investment-related costs and fees.
116.7 (c) For each public pension plan reporting under
116.8 subdivision 3, paragraph (d), the state auditor shall compute
116.9 and report total portfolio time-weighted rates of return, net of
116.10 all costs and fees. If the state auditor has requested data for
116.11 a plan under subdivision 3, paragraph (f), the state auditor may
116.12 also compute and report asset class time-weighted rates of
116.13 return, net of all costs and fees.
116.14 (d) The report by the state auditor must include the
116.15 information submitted by the pension plans under subdivision 3,
116.16 paragraph (c), or a synopsis of that information.
116.17 (e) The report by the state auditor may also include a
116.18 presentation of multiyear performance, information collected
116.19 under subdivision 4, and any other information or analysis
116.20 deemed appropriate by the state auditor.
116.21 Subd. 7. [EXPENSE OF REPORT.] All administrative expenses
116.22 incurred relating to the investment report by the state auditor
116.23 described in subdivision 6 must be borne by the office of the
116.24 state auditor and may not be charged back to the entities
116.25 described in subdivisions 1 or 4.
116.26 Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter
116.27 relief associations, police relief associations, and volunteer
116.28 firefighter relief associations, the information required under
116.29 this section must be submitted by the due date for reports
116.30 required under section 69.051, subdivision 1 or 1a, as
116.31 applicable. If a relief association satisfies the definition of
116.32 a fully invested plan under subdivision 1, paragraph (b), for
116.33 the calendar year covered by the report required under section
116.34 69.051, subdivision 1 or 1a, as applicable, the chief
116.35 administrative officer of the covered pension plan shall certify
116.36 that compliance on a form prescribed by the state auditor. The
117.1 state auditor shall transmit annually to the state board of
117.2 investment a list or lists of covered pension plans which
117.3 submitted certifications, in order to facilitate reporting by
117.4 the state board of investment under paragraph (c) of this
117.5 subdivision.
117.6 (b) For the Minneapolis teachers retirement fund
117.7 association, the St. Paul teachers retirement fund association,
117.8 the Duluth teachers retirement fund association, the Minneapolis
117.9 employees retirement fund, the University of Minnesota faculty
117.10 supplemental retirement plan, and the applicable administrators
117.11 for the University of Minnesota faculty retirement plan and the
117.12 individual retirement account plans under chapters 354B and
117.13 354D, the information required under this section must be
117.14 submitted to the state auditor by June 1 of each year.
117.15 (c) The state board of investment, on behalf of pension
117.16 funds specified in subdivision 1, paragraph (c), must report
117.17 information required under this section by September 1 of each
117.18 year.
117.19 Sec. 11. Minnesota Statutes 2000, section 356.22, is
117.20 amended to read:
117.21 356.22 [INTERPRETATION.]
117.22 Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No
117.23 provision in sections 356.20 to 356.23 shall may be construed to
117.24 in any way to limit any of the enumerated pension and retirement
117.25 funds from furnishing additional actuarial valuations or
117.26 experience studies, or additional data and actuarial
117.27 calculations, as may be requested by the legislature or any
117.28 standing committee or by the legislative commission on pensions
117.29 and retirement.
117.30 Subd. 2. [ACCELERATED AMORTIZATION.] No provision in
117.31 sections 356.20 to 356.23 shall may be construed to preclude any
117.32 public pension and retirement fund enumerated in section 356.20,
117.33 subdivision 2, from requesting, or the legislature from
117.34 providing for, the amortization of any unfunded actuarial
117.35 accrued liability in a shorter period of time than by the
117.36 established date for full funding as determined pursuant to
118.1 under section 356.215, subdivision 4g 11.
118.2 Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature
118.3 or any committee or commission thereof now in existence or
118.4 hereafter created which has assigned to it the subject of public
118.5 pensions or public retirement plans may require actuarial
118.6 valuations and experience studies in conformity with the
118.7 provisions of sections 356.20 to 356.23 from any public pension
118.8 and retirement plan or fund, whether enumerated in sections
118.9 356.20 to 356.23 or otherwise.
118.10 Sec. 12. Minnesota Statutes 2000, section 356.23, is
118.11 amended to read:
118.12 356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND
118.13 VALUATIONS.]
118.14 Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any
118.15 supplemental actuarial valuations prepared on behalf of any
118.16 governing or managing board of any pension and retirement fund
118.17 enumerated in section 356.20, subdivision 2, by an approved
118.18 actuary, shall must be prepared in accordance with the
118.19 applicable provisions of sections 356.20 to 356.23 and with the
118.20 standards adopted by the legislative commission on pensions and
118.21 retirement. Any pension and retirement fund which prepares an
118.22 alternative actuarial valuation under subdivision 2 shall also
118.23 must have a supplemental actuarial valuation prepared.
118.24 Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition
118.25 to the financial reports and actuarial valuations required by
118.26 sections 356.20 to 356.23, the governing or managing board of
118.27 any fund concerned may submit alternative reports and actuarial
118.28 valuations for distribution to the legislature, any of its
118.29 committees, or the legislative commission on pensions and
118.30 retirement on a different basis or on different assumptions than
118.31 are specified in sections 356.20 to 356.23. The assumptions and
118.32 basis of any alternative reports and valuations shall must be
118.33 clearly stated in the document.
118.34 LIMITATIONS ON SUPPLEMENTAL AND
118.35 LOCAL RETIREMENT PLANS
118.36 Sec. 13. Minnesota Statutes 2001 Supplement, section
119.1 356.24, subdivision 1, is amended to read:
119.2 Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful
119.3 for a school district or other governmental subdivision or state
119.4 agency to levy taxes for, or to contribute public funds to a
119.5 supplemental pension or deferred compensation plan that is
119.6 established, maintained, and operated in addition to a primary
119.7 pension program for the benefit of the governmental subdivision
119.8 employees other than:
119.9 (1) to a supplemental pension plan that was established,
119.10 maintained, and operated before May 6, 1971;
119.11 (2) to a plan that provides solely for group health,
119.12 hospital, disability, or death benefits;
119.13 (3) to the individual retirement account plan established
119.14 by chapter 354B;
119.15 (4) to a plan that provides solely for severance pay under
119.16 section 465.72 to a retiring or terminating employee;
119.17 (5) for employees other than personnel employed by the
119.18 board of trustees of the Minnesota state colleges and
119.19 universities and covered under the higher education supplemental
119.20 retirement plan under chapter 354C, if the supplemental plan
119.21 coverage is provided for in a personnel policy of the public
119.22 employer or in the collective bargaining agreement between the
119.23 public employer and the exclusive representative of public
119.24 employees in an appropriate unit, in an amount matching employee
119.25 contributions on a dollar for dollar basis, but not to exceed an
119.26 employer contribution of $2,000 a year per employee;
119.27 (i) to the state of Minnesota deferred compensation plan
119.28 under section 352.96; or
119.29 (ii) in payment of the applicable portion of the
119.30 contribution made to any investment eligible under section
119.31 403(b) of the Internal Revenue Code, if the employing unit has
119.32 complied with any applicable pension plan provisions of the
119.33 Internal Revenue Code with respect to the tax-sheltered annuity
119.34 program during the preceding calendar year;
119.35 (6) for personnel employed by the board of trustees of the
119.36 Minnesota state colleges and universities and not covered by
120.1 clause (5), to the supplemental retirement plan under chapter
120.2 354C, if the supplemental plan coverage is provided for in a
120.3 personnel policy or in the collective bargaining agreement of
120.4 the public employer with the exclusive representative of the
120.5 covered employees in an appropriate unit, in an amount matching
120.6 employee contributions on a dollar for dollar basis, but not to
120.7 exceed an employer contribution of $2,700 a year for each
120.8 employee;
120.9 (7) to a supplemental plan or to a governmental trust to
120.10 save for postretirement health care expenses qualified for
120.11 tax-preferred treatment under the Internal Revenue Code, if the
120.12 supplemental plan coverage is provided for in a personnel policy
120.13 or in the collective bargaining agreement of a public employer
120.14 with the exclusive representative of the covered employees in an
120.15 appropriate unit; or
120.16 (8) to the laborer's national industrial pension fund for
120.17 the employees of a governmental subdivision who are covered by a
120.18 collective bargaining agreement that provides for coverage by
120.19 that fund and that sets forth a fund contribution rate, but not
120.20 to exceed an employer contribution of $2,000 per year per
120.21 employee;
120.22 (9) to the plumbers' and pipefitters' national pension fund
120.23 for the employees of a governmental subdivision who are covered
120.24 by a collective bargaining agreement that provides for coverage
120.25 by that fund and that sets forth a fund contribution rate, but
120.26 not to exceed an employer contribution of $2,000 per year per
120.27 employee;
120.28 (10) to the international union of operating engineers
120.29 pension fund for the employees of a governmental subdivision who
120.30 are covered by a collective bargaining agreement that provides
120.31 for coverage by that fund and that sets forth a fund
120.32 contribution rate, but not to exceed an employer contribution of
120.33 $2,000 per year per employee; or
120.34 (11) to a supplemental plan organized and operated under
120.35 the federal Internal Revenue Code, as amended, that is wholly
120.36 and solely funded by the employee's accumulated sick leave,
121.1 accumulated vacation leave, and accumulated severance pay.
121.2 Sec. 14. Minnesota Statutes 2000, section 356.24,
121.3 subdivision 1b, is amended to read:
121.4 Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for
121.5 unrepresented employees or, a collective bargaining agreement
121.6 for represented employees, or a school board for school district
121.7 employees may establish limits on the number of vendors of plans
121.8 covered by the exceptions set forth in subdivision 1 that it
121.9 will utilize and conditions under which the those vendors may
121.10 contact employees both during working hours and after working
121.11 hours.
121.12 Sec. 15. Minnesota Statutes 2000, section 356.24,
121.13 subdivision 1c, is amended to read:
121.14 Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) Any
121.15 insurance company, mutual fund company, or similar company
121.16 providing investments eligible under section 403(b) of the
121.17 Internal Revenue Code and eligible to receive employer
121.18 contributions under this section may request the state board of
121.19 investment, in conjunction with the department of commerce, to
121.20 review the financial standing of the company, the
121.21 competitiveness of its investment options and returns, and the
121.22 level of all charges and fees impacting those returns.
121.23 (b) The state board of investment may establish a fee for
121.24 each review. The state board of investment must maintain and
121.25 have available a list of all reviewed companies.
121.26 (c) In reviewing companies under this section, the state
121.27 board of investment must not be considered to be acting as a
121.28 fiduciary or to be engaged in a fiduciary activity under chapter
121.29 356A or common law.
121.30 Sec. 16. Minnesota Statutes 2000, section 356.24,
121.31 subdivision 2, is amended to read:
121.32 Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT
121.33 CHANGES.] No change in benefits or employer contributions in a
121.34 supplemental pension plan to which this section applies that
121.35 occurs after May 6, 1971, is effective without prior legislative
121.36 authorization.
122.1 Sec. 17. Minnesota Statutes 2000, section 356.245, is
122.2 amended to read:
122.3 356.245 [LOCAL ELECTED OFFICIALS.]
122.4 An elected official who is covered by section 353.01,
122.5 subdivision 2a, is eligible to participate in the state of
122.6 Minnesota deferred compensation plan under section 356.24. A
122.7 The applicable local governmental unit may make the matching
122.8 employer contributions authorized by that section on the part of
122.9 a participating elected official.
122.10 Sec. 18. Minnesota Statutes 2000, section 356.25, is
122.11 amended to read:
122.12 356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS;
122.13 EXCLUSIONS.]
122.14 Notwithstanding any other provision of law or charter to
122.15 the contrary, no city, county, public agency or instrumentality,
122.16 or other political subdivision shall, after August 1, 1975, is
122.17 required or permitted to establish for any of its employees any
122.18 a local pension plan or fund financed in whole or in part from
122.19 public funds, other than a volunteer firefighter's relief
122.20 association that is established pursuant to under chapter 424A
122.21 and is governed by sections 69.771 to 69.776.
122.22 PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS
122.23 Sec. 19. Minnesota Statutes 2000, section 356.30, is
122.24 amended to read:
122.25 356.30 [COMBINED SERVICE ANNUITY.]
122.26 Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a)
122.27 Notwithstanding any provisions of the laws governing the
122.28 retirement plans enumerated in subdivision 3, a person who has
122.29 met the qualifications of paragraph (b) may elect to receive a
122.30 retirement annuity from each enumerated retirement plan in which
122.31 the person has at least one-half year of allowable service,
122.32 based on the allowable service in each plan, subject to the
122.33 provisions of paragraph (c).
122.34 (b) A person may receive, upon retirement, a retirement
122.35 annuity from each enumerated retirement plan in which the person
122.36 has at least one-half year of allowable service, and
123.1 augmentation of a deferred annuity calculated under the laws
123.2 governing each public pension plan or fund named in subdivision
123.3 3, from the date the person terminated all public service if:
123.4 (1) the person has allowable service totaling an amount
123.5 that allows the person to receive an annuity in any two or more
123.6 of the enumerated plans; and
123.7 (2) the person has not begun to receive an annuity from any
123.8 enumerated plan or the person has made application for benefits
123.9 from each applicable plan and the effective dates of the
123.10 retirement annuity with each plan under which the person chooses
123.11 to receive an annuity are within a one-year period.
123.12 (c) The retirement annuity from each plan must be based
123.13 upon the allowable service, accrual rates, and average salary in
123.14 the applicable plan except as further specified or modified in
123.15 the following clauses:
123.16 (1) the laws governing annuities must be the law in effect
123.17 on the date of termination from the last period of public
123.18 service under a covered retirement plan with which the person
123.19 earned a minimum of one-half year of allowable service credit
123.20 during that employment;
123.21 (2) the "average salary" on which the annuity from each
123.22 covered plan in which the employee has credit in a formula plan
123.23 shall must be based on the employee's highest five successive
123.24 years of covered salary during the entire service in covered
123.25 plans;
123.26 (3) the accrual rates to be used by each plan must be those
123.27 percentages prescribed by each plan's formula as continued for
123.28 the respective years of allowable service from one plan to the
123.29 next, recognizing all previous allowable service with the other
123.30 covered plans;
123.31 (4) the allowable service in all the plans must be combined
123.32 in determining eligibility for and the application of each
123.33 plan's provisions in respect to reduction in the annuity amount
123.34 for retirement prior to normal retirement age; and
123.35 (5) the annuity amount payable for any allowable service
123.36 under a nonformula plan of a covered plan must not be affected,
124.1 but such service and covered salary must be used in the above
124.2 calculation.
124.3 (d) This section does not apply to any person whose final
124.4 termination from the last public service under a covered plan is
124.5 prior to was before May 1, 1975.
124.6 (e) For the purpose of computing annuities under this
124.7 section, the accrual rates used by any covered plan, except the
124.8 public employees police and fire plan, the judges' retirement
124.9 fund, and the state patrol retirement plan, must not exceed the
124.10 percent specified in section 356.19 356.315, subdivision 4, per
124.11 year of service for any year of service or fraction thereof.
124.12 The formula percentage used by the judges' retirement fund must
124.13 not exceed the percent percentage rate specified in section
124.14 356.19 356.315, subdivision 8, per year of service for any year
124.15 of service or fraction thereof. The accrual rate used by the
124.16 public employees police and fire plan and the state patrol
124.17 retirement plan must not exceed the percent percentage rate
124.18 specified in section 356.19 356.315, subdivision 6, per year of
124.19 service for any year of service or fraction thereof. The
124.20 accrual rate or rates used by the legislators retirement plan
124.21 and the elective state officers retirement plan must not exceed
124.22 2.5 percent, but this limit does not apply to the adjustment
124.23 provided under section 3A.02, subdivision 1, paragraph (c), or
124.24 352C.031, paragraph (b).
124.25 (f) Any period of time for which a person has credit in
124.26 more than one of the covered plans must be used only once for
124.27 the purpose of determining total allowable service.
124.28 (g) If the period of duplicated service credit is more than
124.29 one-half year, or the person has credit for more than one-half
124.30 year, with each of the plans, each plan must apply its formula
124.31 to a prorated service credit for the period of duplicated
124.32 service based on a fraction of the salary on which deductions
124.33 were paid to that fund for the period divided by the total
124.34 salary on which deductions were paid to all plans for the period.
124.35 (h) If the period of duplicated service credit is less than
124.36 one-half year, or when added to other service credit with that
125.1 plan is less than one-half year, the service credit must be
125.2 ignored and a refund of contributions made to the person in
125.3 accord with that plan's refund provisions.
125.4 Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service
125.5 credit in one of the funds retirement plans enumerated in
125.6 subdivision 3 and who is employed or was formerly employed in a
125.7 position covered by one of these funds covered plans but also
125.8 has received a refund from any other of these funds covered
125.9 plans, may repay the refund to the respective fund plan under
125.10 terms and conditions that are consistent with the laws governing
125.11 the other fund plan, except that the person need not be a
125.12 currently contributing member of the fund plan to which the
125.13 refund is repaid at the time the repayment is made. Unless
125.14 otherwise provided by statute, the repayment of a refund under
125.15 this subdivision may only be made within six months following
125.16 termination of employment from a position covered by one of the
125.17 funds covered plans enumerated in subdivision 3 or before the
125.18 date of retirement from the fund plan to which the refund is
125.19 repaid, whichever is earlier.
125.20 Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of
125.21 prior service is made under the provisions of Laws 1988, chapter
125.22 709, article 3, or any similar special or general law provision
125.23 which allows a purchase of service credit in any of the funds
125.24 retirement plans enumerated in subdivision 3, the amount of
125.25 required reserves calculated as prescribed in Laws 1988, chapter
125.26 709, article 3, must be paid to each fund plan based on the
125.27 amount of benefit increase payable from that fund plan as a
125.28 result of the purchase of prior service.
125.29 Subd. 3. [COVERED FUNDS PLANS.] This section applies to
125.30 the following retirement funds plans:
125.31 (1) the general state employees retirement fund plan of the
125.32 Minnesota state retirement system, established pursuant to under
125.33 chapter 352;
125.34 (2) the correctional state employees retirement program
125.35 plan of the Minnesota state retirement system,
125.36 established pursuant to under chapter 352;
126.1 (3) the unclassified employees retirement plan program,
126.2 established pursuant to under chapter 352D;
126.3 (4) the state patrol retirement fund plan, established
126.4 pursuant to under chapter 352B;
126.5 (5) the legislators retirement plan, established pursuant
126.6 to under chapter 3A;
126.7 (6) the elective state officers' retirement plan,
126.8 established pursuant to under chapter 352C;
126.9 (7) the general employees retirement plan of the public
126.10 employees retirement association, established pursuant to under
126.11 chapter 353;
126.12 (8) the public employees police and fire fund retirement
126.13 plan of the public employees retirement association, established
126.14 pursuant to under chapter 353;
126.15 (9) public employees the local government correctional
126.16 service retirement plan of the public employees retirement
126.17 association, established pursuant to under chapter 353E;
126.18 (10) the teachers retirement association, established
126.19 pursuant to under chapter 354;
126.20 (11) the Minneapolis employees retirement fund, established
126.21 pursuant to under chapter 422A;
126.22 (12) the Minneapolis teachers retirement fund association,
126.23 established pursuant to under chapter 354A;
126.24 (13) the St. Paul teachers retirement fund association,
126.25 established pursuant to under chapter 354A;
126.26 (14) the Duluth teachers retirement fund association,
126.27 established pursuant to under chapter 354A; and
126.28 (15) the judges' retirement fund, established by sections
126.29 490.121 to 490.132.
126.30 Sec. 20. Minnesota Statutes 2000, section 356.302, is
126.31 amended to read:
126.32 356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.]
126.33 Subdivision 1. [DEFINITIONS.] (a) The terms used in this
126.34 section are defined in this subdivision.
126.35 (b) "Average salary" means the highest average of covered
126.36 salary for the appropriate period of credited service that is
127.1 required for the calculation of a disability benefit by the
127.2 covered retirement plan and that is drawn from any period of
127.3 credited service and successive years of covered salary in a
127.4 covered retirement plan.
127.5 (c) "Covered retirement plan" or "plan" means a retirement
127.6 plan listed in subdivision 7.
127.7 (d) "Duty-related" means a disabling illness or injury that
127.8 occurred while the person was actively engaged in employment
127.9 duties or that arose out of the person's active employment
127.10 duties.
127.11 (e) "General employee retirement plan" means a covered
127.12 retirement plan listed in subdivision 7, clauses (1) to (8) and
127.13 (13).
127.14 (f) "Occupationally disabled" means the condition of having
127.15 a medically determinable physical or mental impairment that
127.16 makes a person unable to satisfactorily perform the minimum
127.17 requirements of the person's employment position or a
127.18 substantially similar employment position.
127.19 (g) "Public safety employee retirement plan" means a
127.20 covered retirement plan listed in subdivision 7, clauses (9) to
127.21 (11) (12).
127.22 (h) "Totally and permanently disabled" means the condition
127.23 of having a medically determinable physical or mental impairment
127.24 that makes a person unable to engage in any substantial gainful
127.25 activity and that is expected to continue or has continued for a
127.26 period of at least one year or that is expected to result
127.27 directly in the person's death.
127.28 Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of
127.29 law to the contrary governing any covered retirement plan, a
127.30 member of a covered retirement plan may receive a combined
127.31 service disability benefit from each covered retirement plan in
127.32 which the person has credit for at least one-half year of
127.33 allowable service if that person meets the applicable qualifying
127.34 conditions. Subdivision 3 applies to a member of a general
127.35 employee retirement plan. Subdivision 4 applies to a member of
127.36 a public safety employee retirement plan. Subdivision 5 applies
128.1 to a member of a covered retirement plan with both general
128.2 employee and public safety employee retirement plan service.
128.3 Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.]
128.4 A disabled member of a covered retirement plan who has credit
128.5 for allowable service in a combination of general employee
128.6 retirement plans is entitled to a combined service disability
128.7 benefit if the member:
128.8 (1) is less than 65 years of age on the date of the
128.9 application for the disability benefit;
128.10 (2) has become totally and permanently disabled;
128.11 (3) has credit for allowable service in any combination of
128.12 general employee retirement plans totaling at least three years;
128.13 (4) has credit for at least one-half year of allowable
128.14 service with the current general employee retirement plan before
128.15 the commencement of the disability;
128.16 (5) has at least three continuous years of allowable
128.17 service credit by the general employee retirement plan or has at
128.18 least a total of three years of allowable service credit by a
128.19 combination of general employee retirement plans in a 72-month
128.20 period during which no interruption of allowable service credit
128.21 from a termination of employment exceeded 29 days; and
128.22 (6) is was not receiving a retirement annuity or disability
128.23 benefit from any covered general employee retirement plan at the
128.24 time of the commencement of the disability.
128.25 Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A
128.26 disabled member of a covered retirement plan who has credit for
128.27 allowable service in a combination of public safety employee
128.28 retirement plans is entitled to a combined service disability
128.29 benefit if the member:
128.30 (1) has become occupationally disabled;
128.31 (2) has credit for allowable service in any combination of
128.32 public safety employee retirement plans totaling at least one
128.33 year if the disability is duty-related or totaling at least
128.34 three years if the disability is not duty-related;
128.35 (3) has credit for at least one-half year of allowable
128.36 service with the current public safety employee retirement plan
129.1 before the commencement of the disability; and
129.2 (4) is was not receiving a retirement annuity or disability
129.3 benefit from any covered public safety employee retirement plan
129.4 at the time of the commencement of the disability.
129.5 Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY
129.6 REQUIREMENTS.] A disabled member of a covered retirement plan
129.7 who has credit for allowable service in a combination of both a
129.8 public safety employee retirement plans plan and general
129.9 employee retirement plans plan must meet the qualifying
129.10 requirements in subdivisions 3 and 4 to receive a combined
129.11 service disability benefit from the applicable general employee
129.12 and public safety employee retirement plans, except that the
129.13 person need only be a member of a covered retirement plan at the
129.14 time of the commencement of the disability and that the minimum
129.15 allowable service requirements of subdivisions 3, clauses (3)
129.16 and (5), and 4, clauses (3) and (4), may be met in any
129.17 combination of covered retirement plans.
129.18 Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT
129.19 COMPUTATION.] (a) The combined service disability benefit from
129.20 each covered retirement plan must be based on the allowable
129.21 service in each retirement plan, except as specified in
129.22 paragraphs (b) to (f).
129.23 (b) The disability benefit must be governed by the law in
129.24 effect for each covered retirement plan on the date of the
129.25 commencement of the member's most recent qualifying disability
129.26 as a member of a covered retirement plan.
129.27 (c) All plans must base the disability benefit on the same
129.28 average salary figure to the extent practicable.
129.29 (d) If the method of the covered retirement plan used to
129.30 compute a disability benefit varies based on the length of
129.31 allowable service credit, the benefit accrual formula
129.32 percentages used by the plan must recognize the allowable
129.33 service credit in the plan as a continuation of any previous
129.34 allowable service credit with other covered retirement plans.
129.35 (e) If the covered retirement plan is a defined benefit or
129.36 formula plan and the method used to compute a disability benefit
130.1 does not vary based on the length of allowable service credit,
130.2 the portion of the specified benefit amount from the plan must
130.3 bear the same proportion to the total specified benefit amount
130.4 as the allowable service credit in that plan bears to the total
130.5 allowable service credit in all covered retirement plans. If
130.6 the covered retirement plan is a defined contribution or
130.7 nonformula plan, the disability benefit amount for allowable
130.8 service under the plan is not affected, but the service and the
130.9 covered salary under the plan must be used as applicable in
130.10 calculations by other covered retirement plans.
130.11 (f) A period for which a person has allowable service
130.12 credit in more than one covered retirement plan must be used
130.13 only once in determining the total allowable service credit for
130.14 calculating the combined service disability benefit, with any
130.15 period of duplicated service credit handled under as provided in
130.16 section 356.30, subdivision 1, clause (3), items (i) and
130.17 (j) paragraphs (g) and (h).
130.18 (g) If a person is entitled to a minimum benefit payable
130.19 from one of the public pension plans named enumerated in section
130.20 356.30, subdivision 3, the person may receive additional credit
130.21 for only those years of service in another covered pension plan
130.22 that, when added to the years of service in the pension plan
130.23 that is paying the minimum benefit, exceed the years of service
130.24 on which the minimum benefit is based.
130.25 (h) A partially employed recipient of a disability benefit
130.26 must have any current reemployment income plus the total
130.27 disability payment payments from all plans listed enumerated in
130.28 subdivision 7 added together, and then compared to their final
130.29 salary rate as a public employee. If current income plus the
130.30 total disability payments exceed the final salary of the person
130.31 at the time of retirement, then disability benefit payments from
130.32 all the plans will must be reduced on a prorated basis relative
130.33 to the years of service in each fund so that earnings plus
130.34 benefit payments do not exceed their the final salary rate.
130.35 Subd. 7. [COVERED RETIREMENT PLANS.] This section applies
130.36 to the following retirement plans:
131.1 (1) the general state employees retirement fund plan of the
131.2 Minnesota state retirement system, established by chapter 352;
131.3 (2) the unclassified state employees retirement plan
131.4 program of the Minnesota state retirement system, established by
131.5 chapter 352D;
131.6 (3) the general employees retirement plan of the public
131.7 employees retirement association, established by chapter 353;
131.8 (4) the teachers retirement association, established by
131.9 chapter 354;
131.10 (5) the Duluth teachers retirement fund association,
131.11 established by chapter 354A;
131.12 (6) the Minneapolis teachers retirement fund association,
131.13 established by chapter 354A;
131.14 (7) the St. Paul teachers retirement fund association,
131.15 established by chapter 354A;
131.16 (8) the Minneapolis employees retirement fund, established
131.17 by chapter 422A;
131.18 (9) the state correctional employees retirement plan of the
131.19 Minnesota state retirement system, established by chapter 352;
131.20 (10) the state patrol retirement fund plan, established by
131.21 chapter 352B;
131.22 (11) the public employees police and fire fund plan of the
131.23 public employees retirement association, established by chapter
131.24 353;
131.25 (12) public employees the local government correctional
131.26 service retirement plan of the public employees retirement
131.27 association, established by chapter 353E; and
131.28 (13) the judges' retirement fund plan, established by
131.29 sections 490.121 to 490.132.
131.30 Sec. 21. Minnesota Statutes 2000, section 356.303, is
131.31 amended to read:
131.32 356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.]
131.33 Subdivision 1. [DEFINITIONS.] (a) The terms used in this
131.34 section are defined in this subdivision.
131.35 (b) "Average salary" means the highest average of covered
131.36 salary for the appropriate period of credited service that is
132.1 required for the calculation of a survivor annuity or a survivor
132.2 benefit, whichever applies, by the covered retirement plan and
132.3 that is drawn from any period of credited service and covered
132.4 salary in a covered retirement plan.
132.5 (c) "Covered retirement plan" or "plan" means a retirement
132.6 plan listed enumerated in subdivision 4.
132.7 (d) "Deceased member" means a person who on the date of
132.8 death was an active member of a covered retirement plan and who
132.9 has reached the minimum age, if any, that is required by the
132.10 covered retirement plan as part of qualifying for a survivor
132.11 annuity or survivor benefit.
132.12 (e) "Surviving child" means a child of a deceased member
132.13 (1) who is unmarried,; (2) who has not reached age 18, or, if a
132.14 full-time student, who has not reached a higher age as specified
132.15 in by the applicable covered retirement plan,; and (3) if
132.16 specified by that plan, who was actually dependent on the
132.17 deceased member for a specified proportion of support before the
132.18 deceased member's death. "Surviving child" includes a natural
132.19 child, an adopted child, or a child of a deceased member who is
132.20 conceived during the member's lifetime and who is born after the
132.21 member's death.
132.22 (f) "Surviving spouse" means the legally married husband or
132.23 wife, whichever applies, of the deceased member who was residing
132.24 with the deceased member on the date of death and who, if
132.25 specified by the applicable covered retirement plan, had been
132.26 married to the deceased member for a specified period of time
132.27 before the death of the deceased member.
132.28 (g) "Survivor annuity" means the entitlement to a future
132.29 amount payable to a survivor as the remainder interest of an
132.30 optional annuity form implied by law as having been chosen by a
132.31 deceased member before the date of death and effective on the
132.32 date of death or provided automatically.
132.33 (h) "Survivor benefit" means an entitlement to a future
132.34 amount payable to a survivor that is not included in the
132.35 definition of a survivor annuity.
132.36 Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding
133.1 any provision of law to the contrary governing a covered
133.2 retirement plan, a person who is the survivor of a deceased
133.3 member of a covered retirement plan may receive a combined
133.4 service survivor benefit from each covered retirement plan in
133.5 which the deceased member had credit for at least one-half year
133.6 of allowable service if the deceased member:
133.7 (1) had credit for sufficient allowable service in any
133.8 combination of covered retirement plans to meet any minimum
133.9 allowable service credit requirement of the covered retirement
133.10 fund for qualification for a survivor benefit or annuity;
133.11 (2) had credit for at least one-half year of allowable
133.12 service with the most recent covered retirement plan before the
133.13 date of death and was an active member of that covered
133.14 retirement plan on the date of death; and
133.15 (3) was not receiving a retirement annuity from any covered
133.16 retirement plan on the date of death.
133.17 Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.]
133.18 (a) The combined service survivor annuity or survivor benefit
133.19 from each covered retirement plan must be based on the allowable
133.20 service in each covered retirement plan, except as provided by
133.21 paragraphs (b) to (f).
133.22 (b) The survivor annuity or survivor benefit must be
133.23 governed by the law in effect for each covered retirement plan
133.24 on the date of the death of the deceased member.
133.25 (c) All plans must base the survivor annuity or survivor
133.26 benefit on the same average salary figure if the annuity or
133.27 benefit is salary related.
133.28 (d) If the method of the covered retirement plan used to
133.29 compute a survivor benefit or annuity varies based on the length
133.30 of allowable service credit, the benefit accrual formula
133.31 percentages used by the plan must recognize the allowable
133.32 service credit in the plan as a continuation of any previous
133.33 allowable service credit with other covered retirement plans.
133.34 (e) If the covered retirement plan is a defined benefit or
133.35 formula plan and the method used to compute a survivor benefit
133.36 or annuity does not vary based on the length of allowable
134.1 service credit, the portion of the specified benefit or annuity
134.2 amount from the covered retirement plan must bear the same
134.3 proportion to the total specified benefit or annuity amount as
134.4 the allowable service credit in that plan bears to the total
134.5 allowable service credit in all covered retirement plans. If
134.6 the covered retirement plan is a defined contribution or
134.7 nonformula plan, the survivor benefit amount for allowable
134.8 service under the plan is not affected, but the service and
134.9 covered salary under the plan must be used in calculations by
134.10 other covered retirement plans.
134.11 (f) A period for which a person has deceased member had
134.12 allowable service credit in more than one covered retirement
134.13 plan must be used only once in determining the total allowable
134.14 service credit for calculating the combined service survivor
134.15 annuity or survivor benefit. A period of duplicated service
134.16 credit must be handled as provided in section 356.30,
134.17 subdivision 1, clause (3), items (i) and (j) paragraphs (g) and
134.18 (h).
134.19 (g) If a person is entitled to a minimum benefit payable
134.20 from a public pension plan named in section 356.30, subdivision
134.21 3, the person may receive additional credit for only those years
134.22 of service in another covered pension plan that, when added to
134.23 the years of service in the pension plan that is paying the
134.24 minimum benefit, exceed the years of service on which the
134.25 minimum benefit is based.
134.26 Subd. 4. [COVERED RETIREMENT PLANS.] This section applies
134.27 to the following retirement plans:
134.28 (1) the legislators retirement plan, established by chapter
134.29 3A;
134.30 (2) the general state employees retirement fund plan of the
134.31 Minnesota state retirement system, established by chapter 352;
134.32 (3) the correctional state employees retirement plan of the
134.33 Minnesota state retirement system, established by chapter 352;
134.34 (4) the state patrol retirement fund plan, established by
134.35 chapter 352B;
134.36 (5) the elective state officers retirement plan,
135.1 established by chapter 352C;
135.2 (6) the unclassified state employees retirement plan
135.3 program, established by chapter 352D;
135.4 (7) the general employees retirement plan of the public
135.5 employees retirement association, established by chapter 353;
135.6 (8) the public employees police and fire fund plan of the
135.7 public employees retirement association, established by chapter
135.8 353;
135.9 (9) public employees the local government correctional
135.10 service retirement plan of the public employees retirement
135.11 association, established by chapter 353E;
135.12 (10) the teachers retirement association, established by
135.13 chapter 354;
135.14 (11) the Duluth teachers retirement fund association,
135.15 established by chapter 354A;
135.16 (12) the Minneapolis teachers retirement fund association,
135.17 established by chapter 354A;
135.18 (13) the St. Paul teachers retirement fund association,
135.19 established by chapter 354A;
135.20 (14) the Minneapolis employees retirement fund, established
135.21 by chapter 422A; and
135.22 (15) the judges' retirement fund, established by sections
135.23 490.121 to 490.132.
135.24 RETIREMENT ANNUITIES
135.25 Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA
135.26 PERCENTAGES.]
135.27 Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable
135.28 benefit accrual rate is 1.2 percent.
135.29 Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable
135.30 benefit accrual rate is 1.7 percent.
135.31 Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit
135.32 accrual rate is 2.0 percent.
135.33 Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit
135.34 accrual rate is 2.2 percent.
135.35 Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit
135.36 accrual rate is 2.7 percent.
136.1 Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable
136.2 benefit accrual rate is 2.4 percent.
136.3 Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.]
136.4 The applicable benefit accrual rate is 1.9 percent.
136.5 Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN
136.6 MEMBERS.] The applicable benefit accrual rate is 3.0 percent.
136.7 Subd. 7. [JUDGES PLAN.] The applicable benefit accrual
136.8 rate is 2.7 percent.
136.9 Subd. 8. [JUDGES PLAN.] The applicable benefit accrual
136.10 rate is 3.2 percent.
136.11 Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After
136.12 January 2, 1998, benefit accrual rate increases under this
136.13 section must apply only to allowable service or formula service
136.14 rendered after the effective date of the benefit accrual rate
136.15 increase.
136.16 Sec. 23. Minnesota Statutes 2000, section 356.32, is
136.17 amended to read:
136.18 356.32 [PROPORTIONATE ANNUITY AT AGE 65.]
136.19 Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a)
136.20 Notwithstanding any provision to the contrary of the laws
136.21 governing any of the retirement funds referred to enumerated in
136.22 subdivision 2, any person who is an active member of any
136.23 applicable fund, who has credit for at least one year but less
136.24 than ten years of allowable service in one or more of
136.25 the applicable funds covered plans, and who terminates active
136.26 service pursuant to under a mandatory retirement law or policy
136.27 or at age 65 or older, or at the normal retirement age if this
136.28 age is not age 65, for any reason shall be is entitled upon
136.29 making written application on the form prescribed by executive
136.30 director or executive secretary the chief administrative officer
136.31 of the fund plan to a proportionate retirement annuity from each
136.32 applicable fund covered plan in which the person has allowable
136.33 service credit.
136.34 (b) The proportionate annuity shall must be calculated
136.35 under the applicable laws governing annuities based upon
136.36 allowable service credit at the time of retirement and the
137.1 person's average salary for the highest five successive years of
137.2 allowable service or the average salary for the entire period of
137.3 allowable service if less than five years.
137.4 (c) Nothing in this section shall prevent prevents the
137.5 imposition of the appropriate early retirement reduction of an
137.6 annuity which commences prior to before the normal retirement
137.7 age.
137.8 Subd. 2. [COVERED FUNDS RETIREMENT PLANS.] The provisions
137.9 of this section shall apply to the following retirement
137.10 funds plans:
137.11 (1) the general state employees retirement fund plan of the
137.12 Minnesota state retirement system, established pursuant to under
137.13 chapter 352;
137.14 (2) the correctional state employees retirement program
137.15 plan of the Minnesota state retirement system, established
137.16 pursuant to under chapter 352;
137.17 (3) the state patrol retirement fund plan,
137.18 established pursuant to under chapter 352B;
137.19 (4) the general employees retirement plan of the public
137.20 employees retirement fund association, established pursuant to
137.21 under chapter 353;
137.22 (5) the public employees police and fire fund plan of the
137.23 public employees retirement association, established pursuant to
137.24 under chapter 353;
137.25 (6) the teachers retirement association, established
137.26 pursuant to under chapter 354;
137.27 (7) the Minneapolis employees retirement fund, established
137.28 pursuant to under chapter 422A;
137.29 (8) the Duluth teachers retirement fund association,
137.30 established pursuant to under chapter 354A;
137.31 (9) the Minneapolis teachers retirement fund association,
137.32 established pursuant to under chapter 354A; and
137.33 (10) the St. Paul teachers retirement fund association,
137.34 established pursuant to under chapter 354A.
137.35 Sec. 24. Minnesota Statutes 2000, section 356.40, is
137.36 amended to read:
138.1 356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.]
138.2 (a) Notwithstanding any law to the contrary, all annuities
138.3 and benefits payable on and after December 1, 1977 by a covered
138.4 retirement fund, as defined in section 356.30, subdivision 3,
138.5 shall must be paid in advance for each month during the first
138.6 week of that month. The bylaws of municipal local retirement
138.7 funds shall must be amended accordingly.
138.8 (b) In no event, however, shall may this section authorize
138.9 more than one payment in any one month where the law governing
138.10 the applicable retirement fund as of June 30, 1977 already
138.11 provides for the full payment or accrual of annuities and
138.12 benefits in advance for each month or as of the first day of the
138.13 month, nor shall it authorize the payment of both a retirement
138.14 annuity and a surviving spouse's benefit in one month where the
138.15 law governing the applicable retirement fund provides for the
138.16 payment of the retired member's retirement annuity to the
138.17 surviving spouse for the month in which the retired member dies.
138.18 Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS
138.19 CLAUSE.]
138.20 The intent of the legislature in sections 352.01,
138.21 subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38;
138.22 and 354A.011, subdivision 15a, is to create a normal retirement
138.23 age for persons first covered by those sections after May 16,
138.24 1989, that is the same as the retirement age in the federal
138.25 Social Security law, including future amendments to that law.
138.26 If a court determines that the legislature may not incorporate
138.27 by reference the future changes in federal Social Security law,
138.28 the legislature reserves the right to amend the appropriate
138.29 sections to make the normal retirement age conform to the
138.30 retirement age in the federal Social Security law. No person
138.31 first covered by any of those sections after May 16, 1989, has a
138.32 right to a normal retirement age that is less than the
138.33 retirement age in the federal Social Security law.
138.34 Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT
138.35 ANNUITIES.]
138.36 (a) The public employees retirement association and the
139.1 Minnesota state retirement system are permitted to combine
139.2 payments to retirees. The total payment must be equal to the
139.3 amount that is payable if payments were kept separate. The
139.4 retiree must agree, in writing, to have the payment combined.
139.5 (b) Each plan must calculate the benefit amounts under the
139.6 laws governing the plan and the required reserves and future
139.7 mortality losses or gains must be paid or accrued to the plan
139.8 from which the service was earned. Each plan must account for
139.9 its portion of the payment separately, and there may be no
139.10 additional actuarial liabilities realized by either plan.
139.11 (c) The plan making the payment would be responsible for
139.12 issuing one payment and making address changes, tax withholding
139.13 changes, and other administrative functions needed to process
139.14 the payment.
139.15 SURVIVOR BENEFITS
139.16 Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR
139.17 SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.]
139.18 Subdivision 1. [DEFINITIONS.] (a) Each of the words or
139.19 terms defined in this subdivision has the meaning indicated.
139.20 (b) "Public pension plan" means any retirement plan or fund
139.21 enumerated in section 356.20, subdivision 2, or 356.30,
139.22 subdivision 3, any relief association governed by section 69.77
139.23 or sections 69.771 to 69.775, any retirement plan governed by
139.24 chapter 354B or 354C, the Hennepin county supplemental
139.25 retirement plan governed by sections 383B.46 to 383B.52, or any
139.26 housing and redevelopment authority retirement plan.
139.27 (c) "Public pension plan member" means a person who is a
139.28 participant covered by a public pension plan; a former
139.29 participant of a public pension plan who has sufficient service
139.30 to be entitled to receive a future retirement annuity or service
139.31 pension; a recipient of a retirement annuity, service pension,
139.32 or disability benefit from a public pension plan; or a former
139.33 participant of a public pension plan who has member or employee
139.34 contributions to the person's credit in the public pension plan.
139.35 (d) "Survivor" means the surviving spouse, a former spouse,
139.36 a surviving child, a joint annuitant, a designated recipient of
140.1 a second or remainder portion of an optional annuity form, a
140.2 beneficiary, or the estate of a deceased public pension plan
140.3 member, as those terms are commonly understood or defined in the
140.4 benefit plan document of the public pension plan.
140.5 (e) "Survivor benefit" means a surviving spouse benefit,
140.6 surviving child benefit, second or remainder portion of an
140.7 optional annuity form, a death benefit, a funeral benefit, or a
140.8 refund of member or employee contributions payable on account of
140.9 the death of a public pension plan member as provided for in the
140.10 benefit plan document of the public pension plan.
140.11 Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY
140.12 CHARGE.] During the pendency of a charge of a survivor of a
140.13 felony that caused the death of a public pension plan member, of
140.14 criminal liability for a death by wrongful act felony, or of
140.15 conspiracy to commit a death by wrongful act felony, the
140.16 entitlement of that survivor to receive a survivor benefit is
140.17 suspended.
140.18 Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY
140.19 CONVICTION.] On final conviction of a survivor of a felony that
140.20 caused the death of a public pension plan member, of criminal
140.21 liability for a death by wrongful act felony, or of conspiracy
140.22 to commit a death by wrongful act felony, the entitlement of
140.23 that survivor to receive a survivor benefit is forfeited,
140.24 including entitlement for any previously suspended survivor
140.25 benefits under subdivision 2.
140.26 Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The
140.27 charge of one survivor under subdivision 2 or the conviction of
140.28 one survivor under subdivision 3 does not affect the entitlement
140.29 of another survivor to a survivor benefit.
140.30 Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly
140.31 benefits or a refund of the balance of a participant or former
140.32 participant's account have already been paid to an individual
140.33 who is later charged or convicted as described under this
140.34 section, the executive director or chief administrative officer
140.35 of the public pension plan shall attempt to recover the amounts
140.36 paid. Payment may be made to the next beneficiary or survivor
141.1 only in an amount equal to the amount recovered and in the
141.2 amount of any future payments that would legally accrue to
141.3 another survivor under the applicable laws of the retirement
141.4 plan.
141.5 Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If
141.6 the benefit plan document governing the public pension plan does
141.7 not provide for the disposition of forfeited benefits, survivor
141.8 benefits forfeited under this section must be deposited in the
141.9 general fund of the state.
141.10 Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.]
141.11 Subdivision 1. [RESTORATION UPON TERMINATION OF
141.12 REMARRIAGE.] Notwithstanding any provision to the contrary of
141.13 the laws governing any of the retirement plans enumerated in
141.14 subdivision 2, any person who was receiving a surviving spouse's
141.15 benefit from any of those plans and whose benefit terminated
141.16 solely because of remarriage is, if the remarriage terminates
141.17 for any reason, again entitled upon reapplication to a surviving
141.18 spouse's benefit; provided, however, that the person is not
141.19 entitled to retroactive payments for the period of remarriage.
141.20 The benefit resumes at the level which the person would have
141.21 been receiving if there had been no remarriage. This section
141.22 applies prospectively to any person who first becomes entitled
141.23 to receive a surviving spouse's benefit on or after May 18,
141.24 1975, and also applies retroactively to any person who first
141.25 became entitled to receive a surviving spouse's benefit before
141.26 May 18, 1975; provided, however, that no person is entitled to
141.27 retroactive payments for any period of time before May 18, 1975.
141.28 Subd. 2. [COVERED FUNDS.] The provisions of this section
141.29 apply to the following retirement funds:
141.30 (1) the general employees retirement plan of the public
141.31 employees retirement association established under chapter 353;
141.32 (2) the public employees police and fire plan of the public
141.33 employees retirement association established under chapter 353;
141.34 (3) the state patrol retirement plan established under
141.35 chapter 352B;
141.36 (4) the legislators retirement plan established under
142.1 chapter 3A;
142.2 (5) the elective state officers retirement plan established
142.3 under chapter 352C;
142.4 (6) the teachers retirement association established under
142.5 chapter 354; and
142.6 (7) the Minneapolis employees retirement fund established
142.7 under chapter 422A.
142.8 POSTRETIREMENT INCREASES
142.9 Sec. 29. Minnesota Statutes 2000, section 356.41, is
142.10 amended to read:
142.11 356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND
142.12 SURVIVOR BENEFITS.]
142.13 Disability benefits payable to a disabilitant, if not
142.14 otherwise included in the participation in the Minnesota
142.15 postretirement investment fund, and survivor benefits payable to
142.16 a survivor from any public pension fund plan which participates
142.17 in the Minnesota postretirement investment fund shall must be
142.18 adjusted in the same manner, at the same times and in the same
142.19 amounts as are benefits payable from the Minnesota
142.20 postretirement investment fund to eligible benefit recipients of
142.21 that public pension fund plan. If a disability benefit is not
142.22 included in the participation in the Minnesota postretirement
142.23 investment fund, the disability benefit is recomputed as a
142.24 retirement annuity and the recipient would have been eligible
142.25 for an adjustment pursuant to under this section if the
142.26 disability benefit was not recomputed, the recipient will
142.27 continue to be remains eligible for the adjustment pursuant to
142.28 under this section after the recomputation. For the survivor of
142.29 a deceased annuitant who receives a survivor benefit
142.30 calculated pursuant to under a prior law rather than the second
142.31 portion of a joint and survivor annuity, any period of receipt
142.32 of a retirement annuity by the annuitant shall must be utilized
142.33 in determining the period of receipt for eligibility to receive
142.34 an adjustment pursuant to under this section. No recipient
142.35 shall, however, be is entitled to more than one adjustment
142.36 pursuant to under this section or section 11A.18 applicable to
143.1 one benefit at one time by reason of this section.
143.2 Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM
143.3 PAYMENTS.]
143.4 Subdivision 1. [ENTITLEMENT.] A person who is receiving a
143.5 retirement annuity, a disability benefit, or a surviving
143.6 spouse's annuity or benefit from a retirement fund specified in
143.7 subdivision 3, clauses (1) to (8), is entitled to receive a
143.8 postretirement adjustment from the applicable retirement fund in
143.9 the amount specified in subdivision 2, if the annuity or benefit
143.10 was computed under:
143.11 (1) the laws in effect before June 1, 1973, if the person
143.12 is receiving an annuity or benefit from the retirement fund
143.13 specified in subdivision 3, clause (4);
143.14 (2) the laws in effect before July 1, 1973, if the person
143.15 is receiving an annuity or benefit from a retirement fund
143.16 specified in subdivision 3, clause (1), (2), (3), or (5);
143.17 (3) the metropolitan transit commission transit operating
143.18 division employees retirement fund plan document in effect on or
143.19 before December 31, 1977, if the person is receiving a
143.20 retirement annuity, a disability benefit, or a surviving
143.21 spouse's annuity or benefit from the retirement fund specified
143.22 in subdivision 3, clause (5);
143.23 (4) the laws in effect before May 1, 1974, and before any
143.24 adjustment under Laws 1987, chapter 372, article 3, if the
143.25 person is receiving an annuity or benefit from the retirement
143.26 fund specified in subdivision 3, clause (6);
143.27 (5) the laws in effect before January 1, 1970, if the
143.28 person is receiving an annuity or benefit from the retirement
143.29 fund specified in subdivision 3, clause (7); or
143.30 (6) the laws in effect before June 30, 1971, if the person
143.31 is receiving an annuity or benefit from the retirement fund
143.32 specified in subdivision 3, clause (8).
143.33 Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.]
143.34 (a) For any person receiving an annuity or benefit on November
143.35 30, 1989, and entitled to receive a postretirement adjustment
143.36 under subdivision 1, the postretirement adjustment is a lump-sum
144.1 payment calculated under paragraph (b) or (c).
144.2 (b) For coordinated plan annuity or benefit recipients, the
144.3 postretirement adjustment in 1989 is $25 for each full year of
144.4 allowable service credited to the person by the respective
144.5 retirement fund. In 1990 and each following year, the
144.6 postretirement adjustment is the amount payable in the preceding
144.7 year increased by the same percentage applied to regular
144.8 annuities paid from the postretirement fund or, for the
144.9 retirement funds specified in subdivision 3, clauses (6), (7),
144.10 and (8), by the same percentage applied under the articles of
144.11 incorporation and bylaws of these funds.
144.12 (c) For basic plan annuity or benefit recipients, the
144.13 postretirement adjustment in 1989 is the greater of:
144.14 (1) $25 for each full year of allowable service credited to
144.15 the person by the respective retirement fund; or
144.16 (2) the difference between:
144.17 (i) the product of $400 times the number of full years of
144.18 allowable service credited to the person by the respective
144.19 retirement fund; and
144.20 (ii) the sum of the benefits payable to the person from any
144.21 Minnesota public employee pension plan, and cash benefits
144.22 payable to the person from the Social Security Administration.
144.23 In 1990 and each following year, each eligible basic plan
144.24 annuity or benefit recipient shall receive the amount received
144.25 in the preceding year increased by the same percentage applied
144.26 to regular annuities paid from the postretirement fund or, for
144.27 the retirement funds specified in subdivision 3, clauses (6),
144.28 (7), and (8), by the same percentage applied under the articles
144.29 of incorporation and bylaws of these funds.
144.30 (d) The postretirement adjustment provided for in this
144.31 section must be paid on December 1 to those persons receiving an
144.32 annuity or benefit on the preceding November 30. This section
144.33 does not authorize the payment of a postretirement adjustment to
144.34 an estate if the annuity or benefit recipient dies before the
144.35 November 30 eligibility date. The postretirement adjustment
144.36 provided for in this section must be paid automatically unless
145.1 the intended recipient files a written notice with the
145.2 retirement fund requesting that the postretirement adjustment
145.3 not be paid or returns the amount of adjustment to the
145.4 retirement fund. Written notice of the waiver of the
145.5 postretirement adjustment is irrevocable for the year during
145.6 which it was made.
145.7 Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement
145.8 adjustment provided in this section applies to the following
145.9 retirement funds:
145.10 (1) the general employees retirement plans of the public
145.11 employees retirement association;
145.12 (2) the public employees police and fire plan of the public
145.13 employees retirement association;
145.14 (3) the teachers retirement association;
145.15 (4) the state patrol retirement plan;
145.16 (5) the state employees retirement plan of the Minnesota
145.17 state retirement system;
145.18 (6) the Minneapolis teachers retirement fund association
145.19 established under chapter 354A;
145.20 (7) the St. Paul teachers retirement fund association
145.21 established under chapter 354A; and
145.22 (8) the Duluth teachers retirement fund association
145.23 established under chapter 354A.
145.24 Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM
145.25 PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.]
145.26 Subdivision 1. [ENTITLEMENT.] Any person who is receiving
145.27 either an annuity that was computed under the laws in effect
145.28 before March 5, 1974, or a "$2 bill and annuity" annuity from
145.29 the Minneapolis employees retirement fund is entitled to receive
145.30 a supplemental benefit lump-sum payment from the retirement fund
145.31 in the amount specified in subdivision 2.
145.32 Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving
145.33 an annuity or benefit on November 30, 1991, and entitled to
145.34 receive a supplemental benefit lump-sum payment under
145.35 subdivision 1, the payment is $28 for each full year of
145.36 allowable service credited to the person by the retirement fund.
146.1 In 1992 and each following year, each eligible benefit
146.2 recipient is entitled to receive the amount received in the
146.3 preceding year increased by the same percentage applied on the
146.4 most recent January 1 to regular annuities paid from the
146.5 Minneapolis employees retirement fund.
146.6 (b) The payment provided for in this section is payable on
146.7 December 1, 1991, to those persons receiving an annuity or
146.8 benefit on November 30, 1991. In subsequent years, the payment
146.9 must be made on December 1 to those persons receiving an annuity
146.10 or benefit on the preceding November 30. This section does not
146.11 authorize payment to an estate if the annuity or benefit
146.12 recipient dies before the November 30 eligibility date. The
146.13 payment provided for in this section must be paid automatically
146.14 unless the intended recipient files a written notice with the
146.15 retirement fund requesting that it not be paid.
146.16 Subd. 3. [STATE APPROPRIATION.] Payments under this
146.17 section are the responsibility of the Minneapolis employees
146.18 retirement fund. A separate state aid is provided toward the
146.19 level dollar amortized cost of the payments. For state fiscal
146.20 years 1992 to 2001 inclusive, there is appropriated annually
146.21 $550,000 from the general fund to the commissioner of finance to
146.22 be added, in quarterly installments, to the annual state
146.23 contribution amount determined under section 422A.101,
146.24 subdivision 3. After fiscal year 2001, any difference between
146.25 the cumulative benefit amounts actually paid under this section
146.26 after fiscal year 1991 and the amounts paid to the retirement
146.27 fund by the state under this subdivision, plus investment
146.28 earnings on the aid, shall be included by the retirement fund
146.29 board and the actuary retained by the legislative commission on
146.30 pensions and retirement in determining the financial
146.31 requirements of the fund and contributions under section
146.32 422A.101.
146.33 Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT
146.34 AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.]
146.35 Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT
146.36 CONVERSION.] For benefits paid after December 31, 2001, to
147.1 eligible persons under sections 356.42 and 356.43, the amount of
147.2 the most recent lump-sum benefit payable to an eligible
147.3 recipient under sections 356.86 and 356.865 must be divided by
147.4 12. The result must be added to the monthly annuity or benefit
147.5 otherwise payable to an eligible recipient, must become a
147.6 permanent part of the benefit recipient's pension, and must be
147.7 included in any pension benefit subject to future increases.
147.8 Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA
147.9 POSTRETIREMENT INVESTMENT FUND.] Public employee retirement
147.10 funds participating in the state board of investment
147.11 postretirement investment fund shall transfer the required
147.12 reserves for the postretirement conversion under subdivision 1
147.13 to the postretirement investment fund by January 31, 2002.
147.14 REFUNDS
147.15 Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN
147.16 REFUND.]
147.17 (a) Notwithstanding any provision of law to the contrary, a
147.18 member of a pension plan listed in section 356.30, subdivision
147.19 3, with at least two years of forfeited service taken from a
147.20 single pension plan, may repay a portion of all refunds. A
147.21 partial refund repayment must comply with this section.
147.22 (b) The minimum portion of a refund repayment is one-third
147.23 of the total service credit period of all refunds taken from a
147.24 single plan.
147.25 (c) The cost of the partial refund repayment is the product
147.26 of the cost of the total repayment multiplied by the ratio of
147.27 the restored service credit to the total forfeited service
147.28 credit. The total repayment amount includes interest at the
147.29 annual rate of 8.5 percent, compounded annually, from the refund
147.30 date to the date repayment is received.
147.31 (d) The restored service credit must be allocated based on
147.32 the relationship the restored service bears to the total service
147.33 credit period for all refunds taken from a single pension plan.
147.34 (e) This section does not authorize a public pension plan
147.35 member to repay a refund if the law governing the plan does not
147.36 authorize the repayment of a refund of member contributions.
148.1 Sec. 34. [356.441] [REPAYMENT OF REFUNDS.]
148.2 Repayment of a refund and interest on that refund permitted
148.3 under laws governing any public pension plan in Minnesota may be
148.4 made with funds distributed from a plan qualified under the
148.5 federal Internal Revenue Code of 1986, section 401(a), as
148.6 amended through December 31, 1988, or an annuity qualified under
148.7 the federal Internal Revenue Code of 1986, section 403(a).
148.8 Repayment may also be made with funds distributed from an
148.9 individual retirement account used solely to receive a
148.10 nontaxable rollover from that type of a plan or annuity. The
148.11 repaid refund must be separately accounted for as member
148.12 contributions not previously taxed. Before accepting any
148.13 transfers to which this section applies, the executive director
148.14 must require the member to provide written documentation to
148.15 demonstrate that the amounts to be transferred are eligible for
148.16 a tax-free rollover and qualify for that treatment under the
148.17 federal Internal Revenue Code of 1986.
148.18 OPTIONAL ANNUITY FORMS
148.19 Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY;
148.20 PROCEDURE FOR ELECTING ANNUITY FORM.]
148.21 Subdivision 1. [DEFINITIONS.] As used in this section,
148.22 each of the following terms shall have the meaning given.
148.23 (a) "Annuity form" means the payment procedure and duration
148.24 of a retirement annuity or disability benefit available to a
148.25 member of a public pension fund, based on the period over which
148.26 a retirement annuity or disability benefit is payable,
148.27 determined by the number of persons to whom the retirement
148.28 annuity or disability benefit is payable, and the amount of the
148.29 retirement annuity or disability benefit which is payable to
148.30 each person.
148.31 (b) "Joint and survivor optional annuity" means an optional
148.32 annuity form which provides a retirement annuity or disability
148.33 benefit to a retired member and the spouse of the member on a
148.34 joint basis during the lifetime of the retired member and all or
148.35 a portion of the original retirement annuity or disability
148.36 benefit amount to the surviving spouse in the event of the death
149.1 of the retired member.
149.2 (c) "Optional annuity form" means an annuity form which is
149.3 elected by a member and is not provided automatically as the
149.4 standard annuity form of the public pension plan.
149.5 (d) "Public pension plan" means a public pension plan as
149.6 defined under section 356.615, paragraph (b).
149.7 (e) "Retirement annuity" means a series of monthly payments
149.8 to which a former or retired member of a public pension fund is
149.9 entitled due to attaining a specified age and acquiring credit
149.10 for a specified period of service, which includes a retirement
149.11 annuity, retirement allowance, or service pension.
149.12 (f) "Disability benefit" means a series of monthly payments
149.13 to which a former or disabled member of a public pension fund is
149.14 entitled due to a physical or mental inability to engage in
149.15 specified employment.
149.16 Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.]
149.17 Every public pension plan which provides for an annuity form
149.18 other than a single life retirement annuity as an option which
149.19 can be elected by an active, disabled, or retiring member shall
149.20 provide as a part of, or accompanying the annuity application
149.21 form, a written statement summarizing the optional annuity forms
149.22 which are available, a general indication of the consequences of
149.23 selecting one annuity form over another, a calculation of the
149.24 actuarial reduction in the amount of the retirement annuity
149.25 which would be required for each optional annuity form, and the
149.26 procedure to be followed to obtain more information from the
149.27 public pension fund concerning the optional annuity forms
149.28 provided by the plan.
149.29 Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a)
149.30 If a public pension plan provides optional retirement annuity
149.31 forms which include a joint and survivor optional retirement
149.32 annuity form potentially applicable to the surviving spouse of a
149.33 member, the executive director of the public pension plan shall
149.34 send a copy of the written statement required by subdivision 2
149.35 to the spouse of the member before the member's election of an
149.36 optional retirement annuity.
150.1 (b) Following the election of a retirement annuity by the
150.2 member, a copy of the completed retirement annuity application
150.3 and retirement annuity beneficiary form, if applicable, must be
150.4 sent by the public pension plan to the spouse of the retiring
150.5 member. A signed acknowledgment must be required from the
150.6 spouse confirming receipt of a copy of the completed retirement
150.7 annuity application and retirement annuity beneficiary form,
150.8 unless the spouse's signature confirming the receipt is on the
150.9 annuity application form. If the required signed acknowledgment
150.10 is not received from the spouse within 30 days, the public
150.11 pension plan must send another copy of the completed retirement
150.12 annuity application and retirement annuity beneficiary form, if
150.13 applicable, to the spouse by certified mail with restricted
150.14 delivery.
150.15 Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL
150.16 ANNUITY FORM RECIPIENT.]
150.17 Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding
150.18 any provision to the contrary of the laws, articles of
150.19 incorporation, or bylaws governing a covered retirement plan
150.20 specified in subdivision 3, a retiring member may designate a
150.21 qualified supplemental needs trust under subdivision 2 as the
150.22 remainder recipient on an optional retirement annuity form for a
150.23 period not to exceed the lifetime of the beneficiary of the
150.24 supplemental needs trust.
150.25 Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS
150.26 TRUST.] A qualified supplemental needs trust is a trust that:
150.27 (1) was established on or after July 1, 1992;
150.28 (2) was established solely for the benefit of one person
150.29 who has a disability under federal Social Security
150.30 Administration supplemental security income or retirement,
150.31 survivors, and disability insurance disability determination
150.32 standards and who was determined as such before the creation of
150.33 the trust;
150.34 (3) is funded, in whole or in part, by the primary
150.35 recipient of the optional annuity form and, unless the trust is
150.36 a Zebley trust, is not funded by the beneficiary, the
151.1 beneficiary's spouse, or a person who is required to pay a sum
151.2 to or for the trust beneficiary under the terms of litigation or
151.3 a litigation settlement;
151.4 (4) is established to cover reasonable living expenses and
151.5 other basic needs of the disabilitant, in whole or in part, in
151.6 instances when public assistance does not provide sufficiently
151.7 for these needs;
151.8 (5) is not permitted to make disbursement to replace or
151.9 reduce public assistance otherwise available;
151.10 (6) is irrevocable;
151.11 (7) terminates upon the death of the disabled person for
151.12 whose benefit it was established; and
151.13 (8) is determined by the executive director to be a trust
151.14 that contains excluded assets for purposes of the qualification
151.15 for public entitlement benefits under the applicable federal and
151.16 state laws and regulations.
151.17 Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of
151.18 this section apply to the following retirement plans:
151.19 (1) the general state employees retirement plan of the
151.20 Minnesota state retirement system established under chapter 352;
151.21 (2) the correctional state employees retirement plan of the
151.22 Minnesota state retirement system established under chapter 352;
151.23 (3) the state patrol retirement plan established under
151.24 chapter 352B;
151.25 (4) the legislators retirement plan established under
151.26 chapter 3A;
151.27 (5) the judges retirement plan established under chapter
151.28 490;
151.29 (6) the general employees retirement plan of the public
151.30 employees retirement association established under chapter 353;
151.31 (7) the public employees police and fire plan of the public
151.32 employees retirement association established under chapter 353;
151.33 (8) the teachers retirement plan established under chapter
151.34 354;
151.35 (9) the Duluth teachers retirement fund association
151.36 established under chapter 354A;
152.1 (10) the St. Paul teachers retirement fund association
152.2 established under chapter 354A;
152.3 (11) the Minneapolis teachers retirement fund association
152.4 established under chapter 354A;
152.5 (12) the Minneapolis employees retirement plan established
152.6 under chapter 422A;
152.7 (13) the Minneapolis firefighters relief association
152.8 established under chapter 423C;
152.9 (14) the Minneapolis police relief association established
152.10 under chapter 423B; and
152.11 (15) the local government correctional service retirement
152.12 plan of the public employees retirement association established
152.13 under chapter 353E.
152.14 REEMPLOYED ANNUITANT EARNINGS DISPOSITION
152.15 Sec. 37. [356.47] [DISPOSITION OF AMOUNT IN EXCESS OF
152.16 REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.]
152.17 Subdivision 1. [APPLICATION.] This section applies to the
152.18 balance of annual retirement annuities on the amount of
152.19 retirement annuity reductions after reemployed annuitant
152.20 earnings limitations for retirement plans governed by section
152.21 352.115, subdivision 10; 353.37; 354.44, subdivision 5; or
152.22 354A.31, subdivision 3.
152.23 Subd. 2. [RECORDKEEPING; REPORTING.] The chief
152.24 administrative officer of each retirement plan shall keep
152.25 records for each reemployed annuitant of the amount of the
152.26 annuity reduction. This amount must be reported to each member
152.27 at least once each year.
152.28 Subd. 3. [PAYMENT.] (a) Upon the retired member attaining
152.29 the age of 65 years or upon the first day of the month next
152.30 following the month occurring one year after the termination of
152.31 the reemployment that gave rise to the limitation, whichever is
152.32 later, and the filing of a written application, the retired
152.33 member is entitled to the payment, in a lump sum, of the value
152.34 of the person's amount under subdivision 2, plus interest at the
152.35 compound annual rate of six percent from the date that the
152.36 amount was deducted from the retirement annuity to the date of
153.1 payment.
153.2 (b) The written application must be on a form prescribed by
153.3 the chief administrative officer of the applicable retirement
153.4 plan.
153.5 (c) If the retired member dies before the payment provided
153.6 for in paragraph (a) is made, the amount is payable, upon
153.7 written application, to the deceased person's surviving spouse,
153.8 or if none, to the deceased person's designated beneficiary, or
153.9 if none, to the deceased person's estate.
153.10 MARRIAGE DISSOLUTION RETIREMENT
153.11 COVERAGE INFORMATION
153.12 Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT
153.13 OF MARRIAGE DISSOLUTION.]
153.14 Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE
153.15 DISSOLUTION.] (a) Upon receipt of a written request by a person
153.16 with access to the data under subdivision 3 who cites this
153.17 statute, a public or private pension plan administrator must
153.18 provide the court and the parties to a marriage dissolution
153.19 action involving a plan member or former plan member with
153.20 information regarding pension benefits or rights of the plan
153.21 member or former plan member. The pension plan shall provide
153.22 this information upon the request of the court or a party to the
153.23 action without requiring a signed authorization from the plan
153.24 member or former plan member.
153.25 (b) The information must include the pension benefits or
153.26 rights of the plan member or former plan member as of the first
153.27 day of the month following the date of the request, or as of the
153.28 end of the previous fiscal year for the plan, and as of the date
153.29 of valuation of marital assets under section 518.58, if the
153.30 person requesting the information specifies that date. The
153.31 information must include the accrued service credit of the
153.32 person, the credited salary of the person for the most current
153.33 five-year period, a summary of the benefit plan, and any other
153.34 information relevant to the calculation of the present value of
153.35 the benefits or rights.
153.36 Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.]
154.1 If a marriage dissolution decree rendered by a court of
154.2 competent jurisdiction prior to August 1, 1987, provided a
154.3 procedure for the distribution of future pension plan payments,
154.4 upon request the applicable pension plan administrator shall
154.5 provide on a timely basis to the court and the parties to the
154.6 action, the required information to implement that procedure
154.7 without requiring a signed authorization from the plan member or
154.8 former plan member.
154.9 Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision
154.10 of chapter 13 to the contrary, an administrator may release
154.11 private or confidential data on individuals to the court, the
154.12 parties to a marriage dissolution, their attorneys, and an
154.13 actuary appointed under section 518.582, to the extent necessary
154.14 to comply with this section, but only if the administrator has
154.15 received a copy of the legal petition showing that an action for
154.16 marriage dissolution has commenced and a copy of the affidavit
154.17 of service showing that the petition has been served on the
154.18 responding party to the action.
154.19 SERVICE AND SALARY CREDIT UPON
154.20 WRONGFUL DISCHARGE
154.21 Sec. 39. Minnesota Statutes 2000, section 356.50, is
154.22 amended to read:
154.23 356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN
154.24 THE EVENT OF WRONGFUL DISCHARGE.]
154.25 (a) A person who is wrongfully discharged from public
154.26 employment that gave rise to coverage by a public employee
154.27 pension plan listed enumerated in section 356.30, subdivision 3,
154.28 is entitled to obtain allowable service credit from the
154.29 applicable public employee pension plan for the applicable
154.30 period caused by the wrongful discharge.
154.31 (b) A person is wrongfully discharged for purposes of this
154.32 section if:
154.33 (1) the person has been determined by a court of competent
154.34 jurisdiction or by an arbitrator in binding arbitration,
154.35 whichever applies, to have been wrongfully discharged from
154.36 public employment;
155.1 (2) the person received an award of back pay with respect
155.2 to that discharge; and
155.3 (3) the award does not include any amount for any lost or
155.4 interrupted public pension plan coverage.
155.5 (b) (c) To obtain the public pension plan allowable service
155.6 credit, the person shall pay the required member contribution
155.7 amount. The required member contribution amount is the member
155.8 contribution rate or rates in effect for the pension plan during
155.9 the period of service covered by the back pay award, applied to
155.10 the unpaid gross salary amounts of the back pay award including
155.11 reemployment insurance, workers' compensation or wages from
155.12 other sources which reduced the back award. No contributions
155.13 shall be made under this clause for compensation covered by a
155.14 public pension plan listed in section 356.30, subdivision 3, for
155.15 employment during the removal period. The person shall pay the
155.16 required member contribution amount within 60 days of the date
155.17 of receipt of the back pay award, within 60 days of April 14,
155.18 1992, or within 60 days of a billing from the retirement fund,
155.19 whichever is later.
155.20 (c) (d) The public employer who wrongfully discharged the
155.21 public employee must pay an employer contribution on the back
155.22 pay award. The employer contribution must be based on the
155.23 employer contribution rate or rates in effect for the pension
155.24 plan during the period of service covered by the back pay award,
155.25 applied to the salary amount on which the member contribution
155.26 amount was determined under paragraph (b) (c). Interest on both
155.27 the required member and employer contribution amount must be
155.28 paid by the employer at the annual compound rate of 8.5 percent
155.29 per year, expressed monthly, between the date the contribution
155.30 amount would have been paid to the date of actual payment. The
155.31 employer payment must be made within 30 days of the payment
155.32 under paragraph (b) (c).
155.33 Sec. 40. Minnesota Statutes 2000, section 356.55, as
155.34 amended by Laws 2001, First Special Session chapter 10, article
155.35 6, section 16, is amended to read:
155.36 356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT
156.1 DETERMINATION PROCEDURE.]
156.2 Subdivision 1. [APPLICATION.] (a) Unless the prior service
156.3 credit purchase authorization special law or general statute
156.4 provision explicitly specifies a different purchase payment
156.5 amount determination procedure, this section governs the
156.6 determination of the prior service credit purchase payment
156.7 amount of any prior service credit purchase.
156.8 (b) The purchase payment amount determination procedure
156.9 must recognize any service credit accrued to the purchaser in a
156.10 pension plan listed enumerated in section 356.30, subdivision 3.
156.11 (c) Any service credit in a Minnesota defined benefit
156.12 public employee pension plan available to be reinstated by the
156.13 purchaser through the repayment of a refund of member or
156.14 employee contributions previously received must be repaid in
156.15 full before any purchase of prior service credit payment is made
156.16 under this section.
156.17 Subd. 2. [DETERMINATION.] (a) Unless the prior service
156.18 credit purchase minimum purchase payment amount determined under
156.19 paragraph (d) is greater, the prior service credit purchase
156.20 amount is the result obtained by subtracting the amount
156.21 determined under paragraph (c) from the amount determined under
156.22 paragraph (b).
156.23 (b) The present value of the unreduced single life
156.24 retirement annuity, with the purchase of the additional service
156.25 credit included, must be calculated as follows:
156.26 (1) the age at first eligibility for an unreduced single
156.27 life retirement annuity, including the purchase of the
156.28 additional service credit, must be determined;
156.29 (2) the length of total service credit, including the
156.30 period of the purchase of the additional service credit, at the
156.31 age determined under clause (1) must be determined;
156.32 (3) the highest five successive years average salary at the
156.33 age determined under clause (1), assuming five percent annual
156.34 compounding salary increases from the most current annual salary
156.35 amount at the age determined under clause (1), must be
156.36 determined;
157.1 (4) using the benefit accrual rate or rates applicable to
157.2 the prospective purchaser of the service credit based on the
157.3 prospective purchaser's actual date of entry into covered
157.4 service, the length of service determined under clause (2), and
157.5 the final average salary determined under clause (3), the annual
157.6 unreduced single life retirement annuity amount must be
157.7 determined;
157.8 (5) the actuarial present value of the projected annual
157.9 unreduced single life retirement annuity amount determined under
157.10 clause (4) at the age determined under clause (1), using the
157.11 same actuarial factor that the plan would use to determine
157.12 actuarial equivalence for optional annuity forms and related
157.13 purposes, must be determined; and
157.14 (6) the discounted value of the amount determined under
157.15 clause (5) to the date of the prospective purchase, using an
157.16 interest rate of 8.5 percent and no mortality probability
157.17 decrement, must be determined.
157.18 (c) The present value of the unreduced single life
157.19 retirement annuity, without the purchase of the additional
157.20 service credit included, must be calculated as follows:
157.21 (1) the age at first eligibility for an unreduced single
157.22 life retirement annuity, not including the purchase of
157.23 additional service credit, must be determined;
157.24 (2) the length of accrued service credit, without the
157.25 period of the purchase of the additional service credit, at the
157.26 age determined under clause (1), must be determined;
157.27 (3) the highest five successive years average salary at the
157.28 age determined under clause (1), assuming five percent annual
157.29 compounding salary increases from the most current annual salary
157.30 amount to the age determined under clause (1), must be
157.31 determined;
157.32 (4) using the benefit accrual rate or rates applicable to
157.33 the prospective purchaser of the service credit based on the
157.34 prospective purchaser's actual date of entry into covered
157.35 service the length of service credit determined under clause
157.36 (2), and the final average salary determined under clause (3),
158.1 the annual unreduced single life retirement annuity amount must
158.2 be determined;
158.3 (5) the actuarial present value of the projected annual
158.4 unreduced single life retirement annuity amount determined under
158.5 clause (4) at the age determined under clause (1), using the
158.6 same actuarial factor that the plan would use to determine
158.7 actuarial equivalence for optional annuity forms and related
158.8 purposes, must be determined;
158.9 (6) the discounted value of the amount determined under
158.10 clause (5) to the date of the prospective purchase, using an
158.11 interest rate of 8.5 percent and no mortality probability
158.12 decrement, must be determined; and
158.13 (7) the net value of the discounted value determined under
158.14 clause (6), must be determined by applying a service ratio,
158.15 where the numerator is the total length of credited service
158.16 determined under paragraph (b), clause (2), reduced by the
158.17 period of the additional service credit proposed to be
158.18 purchased, and where the denominator is the total length of
158.19 service credit determined under clause (2).
158.20 (d) The minimum prior service credit purchase payment
158.21 amount is the amount determined by multiplying the most current
158.22 annual salary of the prospective purchaser by the combined
158.23 current employee, employer, and any additional employer
158.24 contribution rates for the applicable pension plan and by
158.25 multiplying that result by the number of years of service or
158.26 fractions of years of service of the potential service credit
158.27 purchase.
158.28 Subd. 3. [SOURCE OF DETERMINATION.] The prior service
158.29 credit purchase payment amounts under subdivision 2 must be
158.30 calculated by the chief administrative officer of the public
158.31 pension plan using a prior service credit purchase payment
158.32 amount determination process that has been verified for accuracy
158.33 and consistency under this section by the commission-retained
158.34 actuary. That verification must be in writing and must occur
158.35 before the first prior service credit purchase for the plan
158.36 under this section is accepted and every five years thereafter
159.1 or whenever the preretirement interest rate, postretirement
159.2 interest rate, payroll growth, or mortality actuarial assumption
159.3 for the applicable pension plan is modified under section
159.4 356.215, whichever occurs first.
159.5 Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A
159.6 public pension plan may establish a fee to be charged to the
159.7 prospective purchaser for processing a prior service credit
159.8 purchase application and the prior service credit purchase
159.9 payment amount calculation. The fee must be established by the
159.10 governing board of the pension plan and must be uniform for
159.11 comparable service credit purchase situations or actuarial
159.12 calculation requests. The prior service credit purchase
159.13 processing fee structure must be published by the chief
159.14 administrative officer of the applicable retirement plan in the
159.15 State Register.
159.16 Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless
159.17 the prior service credit purchase authorization special law or
159.18 general statute provision explicitly specifies otherwise, the
159.19 prior service credit purchase payment amount determined under
159.20 subdivision 2 is payable by the purchaser, but. However, the
159.21 former employer of the purchaser or the current employer of the
159.22 purchaser may, at its discretion, pay all or a portion of the
159.23 purchase payment amount in excess of an amount equal to the
159.24 employee contribution rate or rates in effect during the prior
159.25 service period applied to the actual salary rates in effect
159.26 during the prior service period, plus annual compound interest
159.27 at the rate of 8.5 percent from the date on which the
159.28 contributions would have been made if made contemporaneous with
159.29 the service period to the date on which the payment is actually
159.30 made.
159.31 Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a)
159.32 As part of the regular data reporting provided to the consulting
159.33 actuary retained by the legislative commission on pensions and
159.34 retirement annually, the chief administrative officer of each
159.35 public pension plan that has accepted a prior service credit
159.36 purchase payment under this section shall report for any
160.1 purchase, the purchaser, the purchaser's employer, the age of
160.2 the purchaser, the period of the purchase, the purchaser's
160.3 prepurchase accrued service credit, the purchaser's postpurchase
160.4 accrued service credit, the purchaser's prior service credit
160.5 payment, the prior service credit payment made by the
160.6 purchaser's employer, and the amount of the additional benefit
160.7 or annuity purchased.
160.8 (b) As a supplemental report to the regular annual
160.9 actuarial valuation for the applicable public pension plan
160.10 prepared by the consulting actuary retained by the legislative
160.11 commission on pensions and retirement, there must be the actuary
160.12 shall provide a comparison for each purchase showing the total
160.13 prior service credit payment received from all sources and the
160.14 increased public pension plan actuarial accrued liability
160.15 resulting from each purchase.
160.16 Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION
160.17 PROCEDURE.] (a) This section expires and is repealed on July 1,
160.18 2003.
160.19 (b) Authority for any public pension plan to accept a prior
160.20 service credit payment that is calculated in a timely fashion
160.21 under this section expires on October 1, 2003.
160.22 Sec. 41. Minnesota Statutes 2000, section 356.551, is
160.23 amended to read:
160.24 356.551 [POST JULY 1, 2001 2003, PRIOR SERVICE CREDIT
160.25 PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.]
160.26 (a) Subdivision 1. [APPLICATION.] Unless the prior service
160.27 credit purchase authorization special law or general statute
160.28 provision explicitly specifies a different purchase payment
160.29 amount determination procedure, and if section 356.55 has
160.30 expired, this section governs the determination of the prior
160.31 service credit purchase payment amount of any prior service
160.32 credit purchase.
160.33 (b) Subd. 2. [DETERMINATION.] The prior service credit
160.34 purchase amount is an amount equal to the actuarial present
160.35 value, on the date of payment, as calculated by the chief
160.36 administrative officer of the pension plan and reviewed by the
161.1 actuary retained by the legislative commission on pensions and
161.2 retirement, of the amount of the additional retirement annuity
161.3 obtained by the acquisition of the additional service credit in
161.4 this section. Calculation of this amount must be made using the
161.5 preretirement interest rate applicable to the public pension
161.6 plan specified in section 356.215, subdivision 4d, and the
161.7 mortality table adopted for the public pension plan. The
161.8 calculation must assume continuous future service in the public
161.9 pension plan until, and retirement at, the age at which the
161.10 minimum requirements of the fund for normal retirement or
161.11 retirement with an annuity unreduced for retirement at an early
161.12 age, including section 356.30, are met with the additional
161.13 service credit purchased. The calculation must also assume a
161.14 full-time equivalent salary, or actual salary, whichever is
161.15 greater, and a future salary history that includes annual salary
161.16 increases at the applicable salary increase rate for the plan
161.17 specified in section 356.215, subdivision 4d. Payment must be
161.18 made in one lump sum within one year of the prior service credit
161.19 authorization. Payment of the amount calculated under this
161.20 section must be made by the applicable eligible person.
161.21 However, the current employer or the prior employer may, at its
161.22 discretion, pay all or any portion of the payment amount that
161.23 exceeds an amount equal to the employee contribution rates in
161.24 effect during the period or periods of prior service applied to
161.25 the actual salary rates in effect during the period or periods
161.26 of prior service, plus interest at the rate of 8.5 percent a
161.27 year compounded annually from the date on which the
161.28 contributions would otherwise have been made to the date on
161.29 which the payment is made. If the employer agrees to payments
161.30 under this paragraph subdivision, the purchaser must make the
161.31 employee payments required under this paragraph subdivision
161.32 within 290 days of the prior service credit authorization. If
161.33 that employee payment is made, the employer payment under
161.34 this paragraph subdivision must be remitted to the chief
161.35 administrative officer of the public pension plan within 60 days
161.36 of receipt by the chief administrative officer of the employee
162.1 payments specified under this paragraph subdivision.
162.2 (c) Subd. 3. [DOCUMENTATION.] The prospective purchaser
162.3 must provide any relevant documentation required by the chief
162.4 administrative officer of the public pension plan to determine
162.5 eligibility for the prior service credit under this section.
162.6 (d) Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.]
162.7 Service credit for the purchase period must be granted by the
162.8 public pension plan to the purchaser upon receipt of the
162.9 purchase payment amount specified in paragraph (b) subdivision 2.
162.10 Sec. 42. Minnesota Statutes 2001 Supplement, section
162.11 356.555, is amended to read:
162.12 356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.]
162.13 Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.]
162.14 (a) Notwithstanding any provision to the contrary of the laws
162.15 governing a covered pension plan enumerated in subdivision 4, a
162.16 member of the pension plan who has at least three years of
162.17 allowable service covered by the applicable pension plan and who
162.18 was granted by the employer a parental leave of absence as
162.19 defined in paragraph (b), or who was granted by the employer a
162.20 family leave of absence as defined in paragraph (c), or who had
162.21 a parental or family-related break in employment, as defined in
162.22 paragraph (d), for which the person did not previously receive
162.23 service credit or for which the person did not receive or
162.24 purchase service credit from another defined benefit public
162.25 employee pension plan, is entitled to purchase the actual period
162.26 of the leave or of the break in service, up to five years, of
162.27 allowable service credit in the applicable retirement plan. The
162.28 purchase payment amount is governed by section 356.55.
162.29 (b) For purposes of this section, a parental leave of
162.30 absence is a temporary period of interruption of or separation
162.31 from active employment for the purposes of handling maternity or
162.32 paternity duties that has been approved by the employing unit
162.33 and that includes the right of reinstatement to employment.
162.34 (c) For purposes of this section, a family leave of absence
162.35 is a family leave under United States Code, title 42, section
162.36 12631, as amended.
163.1 (d) For purposes of this section, a parental or
163.2 family-related break in employment is a period following a
163.3 termination of active employment primarily for the purpose of
163.4 the birth of a child, the adoption of a child, or the provision
163.5 of care to a near relative or in-law, after which the person
163.6 returned to the prior employing unit or to an employing unit
163.7 covered by the same pension plan that provided retirement
163.8 coverage immediately prior to the termination of employment.
163.9 Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who
163.10 desires to purchase service credit under subdivision 1 must
163.11 apply for the service credit purchase with the chief
163.12 administrative officer of the enumerated pension plan.
163.13 (b) The application must include all necessary
163.14 documentation of the qualifications of the person to make the
163.15 purchase, signed written permission to allow the chief
163.16 administrative officer to request and receive necessary
163.17 verification of all applicable facts and eligibility
163.18 requirements, and any other relevant information that the chief
163.19 administrative officer may require.
163.20 Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula
163.21 service credit in the applicable enumerated pension plan for the
163.22 purchase period must be granted to the purchaser upon receipt of
163.23 the purchase payment amount calculated under section 356.55.
163.24 Payment of the purchase amount must be made before the person
163.25 retires.
163.26 Subd. 4. [COVERED PENSION PLANS.] This section applies to
163.27 the following pension plans:
163.28 (1) the general state employees retirement plan governed by
163.29 chapter 352;
163.30 (2) the correctional state employees retirement plan
163.31 governed by chapter 352;
163.32 (3) the general public employees retirement plan of the
163.33 public employees retirement association governed by chapter 353;
163.34 (4) the public employees police and fire plan governed by
163.35 chapter 353;
163.36 (5) the teachers retirement plan governed by chapter 354;
164.1 (6) the Minneapolis teachers retirement fund association
164.2 governed by chapter 354A;
164.3 (7) the Saint Paul teachers retirement fund association
164.4 governed by chapter 354A;
164.5 (8) the Duluth teachers retirement fund association
164.6 governed by chapter 354A;
164.7 (9) the Minneapolis employees retirement plan governed by
164.8 chapter 422A;
164.9 (10) the Minneapolis police relief association governed by
164.10 chapter 423B; and
164.11 (11) the Minneapolis fire department relief association
164.12 governed by sections 69.25 to 69.53 and augmented by Laws 1959,
164.13 chapters 213, 491, and 568, and other special local legislation
164.14 chapter 423C.
164.15 COVERED SALARY LIMITATION
164.16 Sec. 43. Minnesota Statutes 2000, section 356.611, is
164.17 amended to read:
164.18 356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION
164.19 PURPOSES.]
164.20 Subdivision 1. [STATE SALARY LIMITATIONS.] (a)
164.21 Notwithstanding any provision of law, bylaws, articles of
164.22 incorporation, retirement and disability allowance plan
164.23 agreements, or retirement plan contracts to the contrary, the
164.24 covered salary for pension purposes for a plan participant of a
164.25 covered retirement fund under enumerated in section 356.30,
164.26 subdivision 3, may not exceed 95 percent of the salary
164.27 established for the governor under section 15A.082 at the time
164.28 the person received the salary.
164.29 (b) This section does not apply to a salary paid:
164.30 (1) to the governor;
164.31 (2) to an employee of a political subdivision in a position
164.32 that is excluded from the limit as specified under section
164.33 43A.17, subdivision 9; or
164.34 (3) to a state employee in a position for which the
164.35 commissioner of employee relations has approved a salary rate
164.36 that exceeds 95 percent of the governor's salary.
165.1 (c) The limited covered salary determined under this
165.2 section must be used in determining employee and employer
165.3 contributions and in determining retirement annuities and other
165.4 benefits under the respective covered retirement fund and under
165.5 this chapter.
165.6 Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first
165.7 contributing to a covered pension plan covered under enumerated
165.8 in section 356.30, subdivision 3, on or after July 1, 1995,
165.9 compensation in excess of the limitation set forth in Internal
165.10 Revenue Code 401(a)(17) shall may not be included for
165.11 contribution and benefit computation purposes. The compensation
165.12 limit set forth in Internal Revenue Code 401(a)(17) on June 30,
165.13 1993, shall apply applies to members first contributing before
165.14 July 1, 1995.
165.15 MEMBER CONTRIBUTION EMPLOYER PICK UP
165.16 Sec. 44. Minnesota Statutes 2001 Supplement, section
165.17 356.62, is amended to read:
165.18 356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.]
165.19 (a) For purposes of any public pension plan, as defined in
165.20 section 365.615, paragraph (b), each employer shall pick up the
165.21 employee contributions required pursuant to law or the pension
165.22 plan for all salary payable after December 31, 1982. If the
165.23 United States Treasury department rules that pursuant to under
165.24 section 414(h) of the Internal Revenue Code of 1986, as amended
165.25 through December 31, 1992, that these picked up contributions
165.26 are not includable in the employee's adjusted gross income until
165.27 they are distributed or made available, then these picked up
165.28 contributions shall must be treated as employer contributions in
165.29 determining tax treatment pursuant to under the Internal Revenue
165.30 Code of 1986, as amended through December 31, 1992, and the
165.31 employer shall discontinue withholding federal income taxes on
165.32 the amount of these contributions. The employer shall pay these
165.33 picked up contributions from the same source of funds as is used
165.34 to pay the salary of the employee. The employer shall pick up
165.35 these employee contributions by a reduction in the cash salary
165.36 of the employee.
166.1 (b) Employee contributions that are picked up shall must be
166.2 treated for all purposes of the public pension plan in the same
166.3 manner and to the same extent as employee contributions that
166.4 were made prior to the date on which the employee contributions
166.5 pick up began. The amount of the employee contributions that
166.6 are picked up shall must be included in the salary upon which
166.7 retirement coverage is credited and retirement and survivor's
166.8 benefits are determined. For purposes of this section,
166.9 "employee" means any person covered by a public pension plan.
166.10 For purposes of this section, "employee contributions" include
166.11 any sums deducted from the employee's salary or wages or
166.12 otherwise paid in lieu thereof, regardless of whether they are
166.13 denominated contributions by the public pension plan.
166.14 (c) For any calendar year in which withholding has been
166.15 reduced pursuant to under this section, the employing unit shall
166.16 supply each employee and the commissioner of revenue with an
166.17 information return indicating the amount of the employer's
166.18 picked-up contributions for the calendar year that were not
166.19 subject to withholding. This return shall must be provided to
166.20 the employee not later than January 31 of the succeeding
166.21 calendar year. The commissioner of revenue shall prescribe the
166.22 form of the return and the provisions of section 289A.12 shall
166.23 must apply to the extent not inconsistent with the provisions of
166.24 this section.
166.25 PENSION ASSET AND INVESTMENT
166.26 LIMITATIONS
166.27 Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION
166.28 PLAN ASSETS.]
166.29 (a) Money held by or credited to a public pension plan as
166.30 assets, including employer and employee contributions, state
166.31 aid, appropriations from the state or a governmental
166.32 subdivision, and accrued earnings on investments, constitutes a
166.33 dedicated fund. The dedicated fund may be used exclusively to
166.34 pay retirement annuities, service pensions, disability benefits,
166.35 survivor benefits, refunds of contributions, or other benefits
166.36 provided under the benefit plan document or documents governing
167.1 the public pension plan, and to pay reasonable administrative
167.2 expenses approved by the governing board of the public pension
167.3 plan or by another appropriate authority. No assets of a public
167.4 pension plan may be loaned or transferred to the state or a
167.5 governmental subdivision or be used to amortize an unfunded
167.6 actuarial accrued liability in another public pension plan or
167.7 fund, whether or not the plan providing the assets consolidates
167.8 or has consolidated with the plan receiving the assets. Nothing
167.9 in this section prohibits a public pension plan or the state
167.10 board of investment from investing the assets of a plan as
167.11 authorized by law, including the investment of the assets of
167.12 public pension plans by the state board of investment in a
167.13 commingled investment fund.
167.14 (b) A public pension plan for purposes of this section
167.15 means a pension plan or fund specified in section 356.20,
167.16 subdivision 2, or 356.30, subdivision 3, or a retirement or
167.17 pension plan or fund, including a supplemental retirement plan
167.18 or fund, established, maintained, or supported by a governmental
167.19 subdivision or public body whose revenues are derived from
167.20 taxation, fees, assessments, or other public sources.
167.21 Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.]
167.22 (a) Notwithstanding any law to the contrary, any public
167.23 pension plan whose assets are not invested by the state board of
167.24 investment may invest its funds in Minnesota situs nonfarm real
167.25 estate ownership interests or loans secured by mortgages or
167.26 deeds of trust if the investment is consistent with section
167.27 356A.04.
167.28 (b) Except to the extent authorized in the case of the
167.29 Minneapolis employees retirement fund under section 422A.05,
167.30 subdivision 2c, paragraph (a), an investment otherwise
167.31 authorized by this section must also comply with the
167.32 requirements and limitations of section 11A.24, subdivision 6.
167.33 ABANDONED PENSION FUND AMOUNTS
167.34 Sec. 47. Minnesota Statutes 2001 Supplement, section
167.35 356.65, subdivision 1, is amended to read:
167.36 Subdivision 1. [DEFINITIONS.] For purposes of this
168.1 section, unless the context clearly indicates otherwise, each of
168.2 the following terms shall have has the meanings meaning given to
168.3 them it:
168.4 (a) "Public pension fund" means any public pension plan as
168.5 defined in section 356.615 356.63, paragraph (b), and any
168.6 Minnesota volunteer firefighters relief association which is
168.7 established pursuant to under chapter 424A and governed pursuant
168.8 to under sections 69.771 to 69.776.
168.9 (b) "Unclaimed public pension fund amounts" means any
168.10 amounts representing accumulated member contributions, any
168.11 outstanding unpaid annuity, service pension or other retirement
168.12 benefit payments, including those made on warrants issued by the
168.13 commissioner of finance, which have been issued and delivered
168.14 for more than six months prior to the date of the end of the
168.15 fiscal year applicable to the public pension fund, and any
168.16 applicable interest to the credit of:
168.17 (1) an inactive or former member of a public pension fund
168.18 who is not entitled to a defined retirement annuity and who has
168.19 not applied for a refund of those amounts within five years
168.20 after the last member contribution was made; or
168.21 (2) a deceased inactive or former member of a public
168.22 pension fund if no survivor is entitled to a survivor benefit
168.23 and no survivor, designated beneficiary or legal representative
168.24 of the estate has applied for a refund of those amounts within
168.25 five years after the date of death of the inactive or former
168.26 member.
168.27 Sec. 48. Minnesota Statutes 2000, section 356.65,
168.28 subdivision 2, is amended to read:
168.29 Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed
168.30 public pension fund amounts existing in any public pension
168.31 fund shall be are presumed to be abandoned, but shall are not
168.32 be subject to the provisions of sections 345.31 to 345.60.
168.33 Unless the benefit plan of the public pension fund specifically
168.34 provides for a different disposition of unclaimed or abandoned
168.35 funds or amounts, any unclaimed public pension fund
168.36 amounts shall cancel and shall must be credited to the public
169.1 pension fund. If the unclaimed public pension fund amount
169.2 exceeds $25 and the inactive or former member again becomes a
169.3 member of the applicable public pension fund plan or applies for
169.4 a retirement annuity pursuant to under section 3A.12, 352.72,
169.5 352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16,
169.6 subdivision 8, whichever is applicable, applies, the canceled
169.7 amount shall must be restored to the credit of the person.
169.8 HEALTH INSURANCE WITHHOLDING
169.9 Sec. 49. Minnesota Statutes 2000, section 356.87, is
169.10 amended to read:
169.11 356.87 [HEALTH INSURANCE WITHHOLDING.]
169.12 (a) Upon authorization of a person entitled to receive a
169.13 retirement annuity, disability benefit or survivor benefit, the
169.14 executive director of a public pension fund listed enumerated in
169.15 section 356.20, subdivision 2, shall withhold health insurance
169.16 premium amounts from the retirement annuity, disability benefit
169.17 or survivor benefit, and shall pay the premium amounts to the
169.18 public employees insurance program.
169.19 (b) The public employees insurance program shall reimburse
169.20 a public pension fund for the administrative expense of
169.21 withholding the premium amounts and shall assume liability for
169.22 the failure of a public pension fund to properly withhold the
169.23 premium amounts.
169.24 RETIREMENT PLAN
169.25 ADMINISTRATION
169.26 Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION
169.27 LEGISLATION.]
169.28 (a) Proposed administrative legislation recommended by or
169.29 on behalf of the Minnesota state retirement system, the public
169.30 employees retirement association, the teachers retirement
169.31 association, the Minneapolis employees retirement fund, or a
169.32 first class city teachers retirement fund association must be
169.33 presented to the legislative commission on pensions and
169.34 retirement, the state and local governmental operations
169.35 committee of the senate, and the governmental operations and
169.36 veterans affairs policy committee of the house of
170.1 representatives on or before October 1 of each year in order for
170.2 the proposed administrative legislation to be acted upon during
170.3 the upcoming legislative session. The executive director or the
170.4 deputy executive director of the legislative commission on
170.5 pensions and retirement shall provide written comments on the
170.6 proposed administrative provisions to the public pension plans
170.7 by November 15 of each year.
170.8 (b) Proposed administrative legislation recommended by or
170.9 on behalf of a public employee pension plan or system under
170.10 paragraph (a) must address provisions:
170.11 (1) authorizing allowable service credit for leaves of
170.12 absence and related circumstances;
170.13 (2) governing offsets or deductions from the amount of
170.14 disability benefits;
170.15 (3) authorizing the purchase of allowable service credit
170.16 for prior uncredited periods;
170.17 (4) governing subsequent employment earnings by reemployed
170.18 annuitants; and
170.19 (5) authorizing retroactive effect for retirement annuity
170.20 or benefit applications.
170.21 (c) Where possible and desirable, taking into account the
170.22 differences among the public pension plans in existing law and
170.23 the unique characteristics of the individual public pension fund
170.24 memberships, uniform provisions relating to paragraph (b) for
170.25 all applicable public pension plans must be presented for
170.26 consideration during the legislative session. Supporting
170.27 documentation setting forth the policy rationale for each set of
170.28 uniform provisions must accompany the proposed administrative
170.29 legislation.
170.30 Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.]
170.31 Subdivision 1. [DEFINITIONS.] (a) The definitions in this
170.32 subdivision apply to this section.
170.33 (b) "Boards" mean the board of directors of the Minnesota
170.34 state retirement system, the board of trustees of the public
170.35 employees retirement association, and the board of trustees of
170.36 the teachers retirement association.
171.1 (c) "Commissioner" means the commissioner of administration.
171.2 Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The
171.3 commissioner of administration may provide a building and
171.4 related facilities to be jointly occupied by the board of
171.5 directors of the Minnesota state retirement system, the board of
171.6 trustees of the public employees retirement association, and the
171.7 board of trustees of the teachers retirement association for the
171.8 administration of their public pension systems.
171.9 (b) Design of the facilities is not subject to section
171.10 16B.33. The competitive acquisition process set forth in
171.11 chapter 16C does not apply if the process set forth in
171.12 subdivision 3 is followed.
171.13 (c) The boards and the commissioner must submit the plans
171.14 for a public pension facility under this section to the chair of
171.15 the house ways and means committee and to the chair of the
171.16 senate state government finance committee for their approval
171.17 before the plans are implemented.
171.18 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner
171.19 may enter into a contract for facilities with a contractor to
171.20 furnish the architectural, engineering, and related services as
171.21 well as the labor, materials, supplies, equipment, and related
171.22 construction services on the basis of a request for
171.23 qualifications and competitive responses received through a
171.24 request for proposals process that must include the items listed
171.25 in paragraphs (b) to (i).
171.26 (b) Before issuing a request for qualifications and a
171.27 request for proposals, the commissioner, with the assistance of
171.28 the boards, shall prepare performance criteria and
171.29 specifications that include:
171.30 (1) a general floor plan or layout indicating the general
171.31 dimensions of the public building and space requirements;
171.32 (2) design criteria for the exterior and site area;
171.33 (3) performance specifications for all building systems and
171.34 components to ensure quality and cost efficiencies;
171.35 (4) conceptual floor plans for systems space;
171.36 (5) preferred types of interior finishes, styles of
172.1 windows, lighting and outlets, doors, and features such as
172.2 built-in counters and telephone wiring;
172.3 (6) mechanical and electrical requirements;
172.4 (7) special interior features required; and
172.5 (8) a completion schedule.
172.6 (c) The commissioner shall first solicit statements of
172.7 qualifications from eligible contractors and select more than
172.8 one qualified contractor based upon experience, technical
172.9 competence, past performance, capability to perform, and other
172.10 appropriate facts. Contractors selected under this process must
172.11 be, employ, or have as a partner, member, coventurer, or
172.12 subcontractor, persons licensed and registered under chapter 326
172.13 to provide the services required to design and complete the
172.14 project. The commissioner does not have to select any of the
172.15 respondents if none reasonably fulfill the criteria set forth in
172.16 this paragraph.
172.17 (d) The contractors selected shall be asked to respond to a
172.18 request for proposals. Responses must include site plans,
172.19 design concept, elevation, statement of material to be used,
172.20 floor layouts, a detailed development budget, and a total cost
172.21 to complete the project. The proposal must indicate that the
172.22 contractor obtained at least two proposals from subcontractors
172.23 for each item of work and must set forth how the subcontractors
172.24 were selected. The commissioner, with the assistance of the
172.25 boards, shall evaluate the proposals based upon design, cost,
172.26 quality, aesthetics, and the best overall value to the state
172.27 pension funds. The commissioner need not select any of the
172.28 proposals submitted and reserves the right to reject any and all
172.29 proposals, and may terminate the process or revise the request
172.30 for proposals and solicit new proposals if the commissioner
172.31 determines that the best interests of the pension funds would be
172.32 better served by doing so. Proposals submitted are nonpublic
172.33 data until the contract is awarded.
172.34 (e) The contractor selected must comply with sections
172.35 574.26 to 574.261. Before executing a final contract, the
172.36 contractor selected shall certify a firm construction price and
173.1 completion date.
173.2 (f) The commissioner may consider building sites in the
173.3 city of St. Paul and surrounding suburbs.
173.4 (g) Any land, building, or facility leased, constructed, or
173.5 acquired and any leasehold interest acquired under this section
173.6 must be held by the state in trust for the three retirement
173.7 systems as tenants in common. Each retirement system fund must
173.8 consider its interest as a fixed asset of its pension fund in
173.9 accordance with governmental accounting standards.
173.10 (h) The commissioner may lease to another governmental
173.11 subdivision, to a private company under contract with the state
173.12 board of investment, or with the board of directors of the
173.13 Minnesota state retirement system, whichever applies, to provide
173.14 deferred compensation services under section 352.96, any portion
173.15 of the funds' building and lands that is not required for their
173.16 direct use upon terms and conditions they deem to be in the best
173.17 interest of the pension funds. Any income accruing from the
173.18 rentals must be separately accounted for and utilized to offset
173.19 ongoing administrative expenses and any excess must be carried
173.20 forward for future administrative expenses. The commissioner
173.21 may also enter into lease agreements for the establishment of
173.22 satellite offices should the boards find them to be necessary in
173.23 order to assure their members reasonable access to their
173.24 services. The commissioner may lease under section 16B.24 any
173.25 portion of the facilities not required for the direct use of the
173.26 boards.
173.27 (i) The boards shall formulate and adopt a written working
173.28 agreement that sets forth the nature of each retirement system's
173.29 ownership interest, the duties and obligations of each system
173.30 toward the construction, operation, and maintenance costs of its
173.31 facilities, and identifies one retirement fund to serve as
173.32 manager for operating and maintenance purposes. The boards may
173.33 contract with independent third parties for maintenance-related
173.34 activities, services, and supplies, and may use the services of
173.35 the department of administration where economically feasible to
173.36 do so. If the boards cannot agree or resolve a dispute about
174.1 operations or maintenance of the facilities, they may request
174.2 the commissioner of administration to appoint a representative
174.3 from the department's real estate management division to serve
174.4 as arbitrator of the dispute with authority to issue a written
174.5 resolution of the dispute.
174.6 Subd. 4. [REVENUE BONDS.] The commissioner of finance, on
174.7 request of the governor, may sell and issue revenue bonds in an
174.8 aggregate principal amount up to $38,000,000 to achieve the
174.9 purposes described in subdivisions 1 and 2, plus the amount
174.10 needed to pay issuance costs and interest costs and to establish
174.11 necessary reserves to secure the bonds. The commissioner of
174.12 finance may issue bonds for the purpose of refunding bonds
174.13 issued under this subdivision. The bonds may be sold and issued
174.14 on terms and in a manner the commissioner of finance determines
174.15 to be in the best interests of the state. The proceeds of the
174.16 bonds must be credited to a bond proceeds account in the pension
174.17 building fund which the commissioner of finance must create in
174.18 the state treasury.
174.19 Subd. 5. [SECURITY.] The boards may pledge any or all
174.20 assets of the boards as security for the bonds. The bonds and
174.21 the interest on them must be paid solely from and secured by all
174.22 assets of the boards pledged and appropriated for these purposes
174.23 to the debt service fund created in subdivision 6 and any
174.24 investment income on the fund and any reserve established for
174.25 this purpose. The bonds are not public debt, and the full
174.26 faith, credit, and taxing powers of the state are not pledged
174.27 for their payment. The bonds and the interest on them must not
174.28 be paid, directly or indirectly, in whole or in part, from a tax
174.29 of statewide application on any class of property, income,
174.30 transaction, or privilege.
174.31 Subd. 6. [DEBT SERVICE FUND.] There is established in the
174.32 state treasury a separate and special pension building debt
174.33 service fund. Money in the funds managed by the boards is
174.34 appropriated to the boards for transfer to the pension building
174.35 debt service fund. Money appropriated and transferred to the
174.36 fund and investment income on it on hand or required to be
175.1 transferred to the fund must be used and is irrevocably
175.2 appropriated to pay when due the principal of and interest on
175.3 the bonds authorized in subdivision 4.
175.4 Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of
175.5 finance may, for and on behalf of the state, enter into
175.6 covenants and agreements not inconsistent with subdivisions 1 to
175.7 6 as may be necessary or desirable to facilitate the sale and
175.8 issuance of the bonds on terms favorable to the state,
175.9 including, but not limited to, covenants and agreements relating
175.10 to the payment of and security for the bonds, tax exemption, and
175.11 disclosure of information required by federal and state
175.12 securities laws. The covenants and agreements of the
175.13 commissioner of finance constitute an enforceable contract of
175.14 the state and the state pledges and agrees with the holders of
175.15 any bonds that the state will not limit or alter the rights
175.16 vested in the commissioner of finance to fulfill the terms of
175.17 the covenants or agreements made with the holders of the bonds,
175.18 or in any way impair the rights and remedies of the holders
175.19 until the bonds, together with the interest on them, with
175.20 interest on any unpaid installments of interest, and all costs
175.21 and expenses in connection with any action or proceeding by or
175.22 on behalf of the holders, are fully met and discharged. The
175.23 commissioner of finance may include this pledge and agreement of
175.24 the state in any covenant or agreement with the holders of the
175.25 bonds. Sections 16A.672 and 16A.675 apply to the bonds.
175.26 Sec. 52. [CROSS-REFERENCE CHANGES.]
175.27 In the next and subsequent editions of Minnesota Statutes,
175.28 the revisor of statutes shall, in each section indicated in
175.29 column A, replace the cross-reference specified in column B with
175.30 the cross-reference set forth in column C:
175.31 column A column B column C
175.32 3.751, subd. 1 356.89 356B.10
175.33 3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8
175.34 3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8
175.35 3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8
175.36 11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8
176.1 11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8
176.2 11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8
176.3 13.631, subd. 2 356.80 356.49
176.4 69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15
176.5 to 4k
176.6 69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8
176.7 69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8
176.8 69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8
176.9 352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8
176.10 352.115, subd. 3 356.119, subd. 1 356.315, subd. 1
176.11 352.115, subd. 3 356.119, subd. 2 356.315, subd. 2
176.12 352.115, subd. 10 356.58 356.47
176.13 352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8
176.14 352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8
176.15 352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a
176.16 352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8
176.17 352.93, subd. 2 356.119, subd. 5 356.315, subd. 5
176.18 352.95, subd. 1 356.119, subd. 5 356.315, subd. 5
176.19 352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6
176.20 352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8
176.21 352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6
176.22 352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8
176.23 352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8
176.24 352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8
176.25 352C.033 356.215, subd. 4d 356.215, subd. 8
176.26 353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8
176.27 353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8
176.28 clause (4)
176.29 353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8
176.30 353.29, subd. 3 356.119, subd. 3 356.315, subd. 3
176.31 353.29, subd. 3 356.119, subd. 4 356.315, subd. 4
176.32 353.29, subd. 3 356.119, subd. 1 356.315, subd. 1
176.33 353.29, subd. 3 356.119, subd. 2 356.315, subd. 2
176.34 353.29, subd. 4 356.371, subd. 3 356.46, subd. 3
176.35 353.37, subd. 3a 356.58 356.47
176.36 353.651, subd. 3 356.119, subd. 6 356.315, subd. 6
177.1 353.656, subd. 1 356.119, subd. 6 356.315, subd. 6
177.2 353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8
177.3 353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.4 353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8
177.5 353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.6 353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.7 353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8
177.8 353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a
177.9 353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a
177.10 354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8
177.11 354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8
177.12 354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.13 354.44, subd. 5 356.58 356.47
177.14 354.44, subd. 6 356.119, subd. 1 356.315, subd. 1
177.15 354.44, subd. 6 356.119, subd. 2 356.315, subd. 2
177.16 354.44, subd. 6 356.119, subd. 3 356.315, subd. 3
177.17 354.44 356.119 356.315
177.18 354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.19 354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8
177.20 354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8
177.21 354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8
177.22 354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8
177.23 354A.026 356.215, subd. 4g 356.215, subd. 11
177.24 354A.105 356.215, subd. 4d 356.215, subd. 8
177.25 354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8
177.26 354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3
177.27 354A.31, subd. 3 356.58 356.47
177.28 354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1
177.29 354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2
177.30 354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1
177.31 354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2
177.32 354A.34 356.215, subd. 4d 356.215, subd. 8
177.33 422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8
177.34 422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8
177.35 422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8
177.36 422A.101, subd. 3 356.865 356.43
178.1 422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8
178.2 422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8
178.3 422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8
178.4 422A.17 356.215, subd. 4d 356.215, subd. 8
178.5 422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8
178.6 423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8
178.7 clause (4)
178.8 490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8
178.9 490.121, subd. 22 356.119, subd. 7 356.315, subd. 7
178.10 490.124, subd. 1 356.119, subd. 7 356.315, subd. 7
178.11 490.124, subd. 1 356.119, subd. 8 356.315, subd. 8
178.12 490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8
178.13 Sec. 53. [REPEALER.]
178.14 Subdivision 1. [REPEALER OF OBSOLETE
178.15 PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35;
178.16 356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452;
178.17 356.453; 356.454; and 356.455, are repealed.
178.18 Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a)
178.19 Minnesota Statutes 2000, sections 356.19; 356.305; 356.306;
178.20 356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71;
178.21 356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are
178.22 repealed.
178.23 (b) Minnesota Statutes 2001 Supplement, sections 356.371,
178.24 subdivision 1; and 356.866, are repealed.
178.25 Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997,
178.26 chapter 233, article 1, section 58, is repealed.
178.27 Sec. 54. [EFFECTIVE DATE.]
178.28 (a) Sections 1 to 53 are effective July 1, 2002.
178.29 (b) Section 51 is the continuation of the public pension
178.30 facility authority previously contained in Minnesota Statutes
178.31 2000, section 356.89, and may not be considered a grant of
178.32 authority to build or bond for a second building.
178.33 ARTICLE 12
178.34 JOINT RETIREMENT PLAN
178.35 BUILDING LEASE AUTHORITY
178.36 Section 1. Minnesota Statutes 2000, section 356.89,
179.1 subdivision 3, is amended to read:
179.2 Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner
179.3 may enter into a contract for facilities with a contractor to
179.4 furnish the architectural, engineering, and related services as
179.5 well as the labor, materials, supplies, equipment, and related
179.6 construction services on the basis of a request for
179.7 qualifications and competitive responses received through a
179.8 request for proposals process that must include the items listed
179.9 in paragraphs (b) to (i).
179.10 (b) Before issuing a request for qualifications and a
179.11 request for proposals, the commissioner, with the assistance of
179.12 the boards, shall prepare performance criteria and
179.13 specifications that include:
179.14 (1) a general floor plan or layout indicating the general
179.15 dimensions of the public building and space requirements;
179.16 (2) design criteria for the exterior and site area;
179.17 (3) performance specifications for all building systems and
179.18 components to ensure quality and cost efficiencies;
179.19 (4) conceptual floor plans for systems space;
179.20 (5) preferred types of interior finishes, styles of
179.21 windows, lighting and outlets, doors, and features such as
179.22 built-in counters and telephone wiring;
179.23 (6) mechanical and electrical requirements;
179.24 (7) special interior features required; and
179.25 (8) a completion schedule.
179.26 (c) The commissioner shall first solicit statements of
179.27 qualifications from eligible contractors and select more than
179.28 one qualified contractor based upon experience, technical
179.29 competence, past performance, capability to perform, and other
179.30 appropriate facts. Contractors selected under this process must
179.31 be, employ, or have as a partner, member, coventurer, or
179.32 subcontractor, persons licensed and registered under chapter 326
179.33 to provide the services required to design and complete the
179.34 project. The commissioner does not have to select any of the
179.35 respondents if none reasonably fulfill the criteria set forth in
179.36 this paragraph.
180.1 (d) The contractors selected shall be asked to respond to a
180.2 request for proposals. Responses must include site plans,
180.3 design concept, elevation, statement of material to be used,
180.4 floor layouts, a detailed development budget, and a total cost
180.5 to complete the project. The proposal must indicate that the
180.6 contractor obtained at least two proposals from subcontractors
180.7 for each item of work and must set forth how the subcontractors
180.8 were selected. The commissioner, with the assistance of the
180.9 boards, shall evaluate the proposals based upon design, cost,
180.10 quality, aesthetics, and the best overall value to the state
180.11 pension funds. The commissioner need not select any of the
180.12 proposals submitted and reserves the right to reject any and all
180.13 proposals, and may terminate the process or revise the request
180.14 for proposals and solicit new proposals if the commissioner
180.15 determines that the best interests of the pension funds would be
180.16 better served by doing so. Proposals submitted are nonpublic
180.17 data until the contract is awarded.
180.18 (e) The contractor selected must comply with sections
180.19 574.26 to 574.261. Before executing a final contract, the
180.20 contractor selected shall certify a firm construction price and
180.21 completion date.
180.22 (f) The commissioner may consider building sites in the
180.23 city of St. Paul and surrounding suburbs.
180.24 (g) Any land, building, or facility leased, constructed, or
180.25 acquired and any leasehold interest acquired under this section
180.26 must be held by the state in trust for the three retirement
180.27 systems as tenants in common. Each retirement system fund must
180.28 consider its interest as a fixed asset of its pension fund in
180.29 accordance with governmental accounting standards.
180.30 (h) The commissioner may lease to another governmental
180.31 subdivision, or to a private company under contract with the
180.32 state board of investment or with the board of directors of the
180.33 Minnesota state retirement system, whichever applies, to provide
180.34 deferred compensation services under section 352.96, any portion
180.35 of the funds' building and lands that is not required for their
180.36 direct use upon terms and conditions they deem to be in the best
181.1 interest of the pension funds. Any income accruing from the
181.2 rentals must be separately accounted for and utilized to offset
181.3 ongoing administrative expenses and any excess must be carried
181.4 forward for future administrative expenses. The commissioner
181.5 may also enter into lease agreements for the establishment of
181.6 satellite offices should the boards find them to be necessary in
181.7 order to assure their members reasonable access to their
181.8 services. The commissioner may lease under section 16B.24 any
181.9 portion of the facilities not required for the direct use of the
181.10 boards.
181.11 (i) The boards shall formulate and adopt a written working
181.12 agreement that sets forth the nature of each retirement system's
181.13 ownership interest, the duties and obligations of each system
181.14 toward the construction, operation, and maintenance costs of its
181.15 facilities, and identifies one retirement fund to serve as
181.16 manager for operating and maintenance purposes. The boards may
181.17 contract with independent third parties for maintenance-related
181.18 activities, services, and supplies, and may use the services of
181.19 the department of administration where economically feasible to
181.20 do so. If the boards cannot agree or resolve a dispute about
181.21 operations or maintenance of the facilities, they may request
181.22 the commissioner of administration to appoint a representative
181.23 from the department's real estate management division to serve
181.24 as arbitrator of the dispute with authority to issue a written
181.25 resolution of the dispute.
181.26 Sec. 2. [EFFECTIVE DATE.]
181.27 Section 1 is effective July 1, 2002.
181.28 ARTICLE 13
181.29 VOLUNTEER FIREFIGHTER RELIEF
181.30 ASSOCIATIONS SERVICE PENSION ELIGIBILITY
181.31 Section 1. Minnesota Statutes 2000, section 424A.02,
181.32 subdivision 1, is amended to read:
181.33 Subdivision 1. [AUTHORIZATION.] (a) A relief association,
181.34 when its articles of incorporation or bylaws so provide, may pay
181.35 out of the assets of its special fund a service pension to each
181.36 of its members who: (1) separates from active service with the
182.1 fire department; (2) reaches age 50; (3) completes at least five
182.2 years of active service as an active member of the municipal
182.3 fire department to which the relief association is associated;
182.4 (4) completes at least five years of active membership with the
182.5 relief association before separation from active service; and
182.6 (5) complies with any additional conditions as to age, service,
182.7 and membership that are prescribed by the bylaws of the relief
182.8 association. A service pension computed under this section may
182.9 be prorated monthly for fractional years of service, if the
182.10 bylaws or articles of incorporation of the relief association so
182.11 provide. The service pension may be paid whether or not the
182.12 municipality or nonprofit firefighting corporation to which the
182.13 relief association is associated qualifies for fire state aid
182.14 under chapter 69.
182.15 (b) In the case of a member who has completed at least five
182.16 years of active service as an active member of the fire
182.17 department to which the relief association is associated on the
182.18 date that the relief association is established and
182.19 incorporated, the requirement that the member complete at least
182.20 five years of active membership with the relief association
182.21 before separation from active service may be waived by the board
182.22 of trustees of the relief association if the member completes at
182.23 least five years of inactive membership with the relief
182.24 association before the payment of the service pension. During
182.25 the period of inactive membership, the member is not entitled to
182.26 receive disability benefit coverage, is not entitled to receive
182.27 additional service credit towards computation of a service
182.28 pension, and is considered to have the status of a person
182.29 entitled to a deferred service pension under subdivision 7.
182.30 (c) No municipality or nonprofit firefighting corporation
182.31 may delegate the power to take final action in setting a service
182.32 pension or ancillary benefit amount or level to the board of
182.33 trustees of the relief association or to approve in advance a
182.34 service pension or ancillary benefit amount or level equal to
182.35 the maximum amount or level that this chapter would allow rather
182.36 than a specific dollar amount or level.
183.1 (d) No relief association as defined in section 424A.001,
183.2 subdivision 4, may pay a service pension or disability benefit
183.3 to a former member of the relief association if that person has
183.4 not separated from active service with the fire department to
183.5 which the relief association is directly associated, unless:
183.6 (1) the person is employed subsequent to retirement by the
183.7 municipality or the independent nonprofit firefighting
183.8 corporation, whichever applies, to perform duties within the
183.9 municipal fire department or corporation on a full-time basis;
183.10 (2) the governing body of the municipality or of the
183.11 corporation has filed its determination with the board of
183.12 trustees of the relief association that the person's experience
183.13 with and service to the fire department in that person's
183.14 full-time capacity would be difficult to replace; and
183.15 (3) the bylaws of the relief association were amended to
183.16 provide for the payment of a service pension or disability
183.17 benefit for such full-time employees.
183.18 ARTICLE 14
183.19 ADDITIONAL PROVISIONS
183.20 Section 1. Laws 1997, chapter 202, article 2, section 61,
183.21 as amended by Laws 1999, chapter 250, article 1, section 106,
183.22 and Laws 2001, First Special Session chapter 10, article 2,
183.23 section 85, is amended to read:
183.24 Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
183.25 Appointing authorities in state government may allow each
183.26 employee to take an unpaid leave of absence for up to 320 hours
183.27 during the period ending June 30, 2003, and an additional 160
183.28 hours during the period beginning July 1, 2003, and ending June
183.29 30, 2005. Each appointing authority approving such a leave
183.30 shall allow the employee to continue accruing vacation and sick
183.31 leave, be eligible for paid holidays and insurance benefits,
183.32 accrue seniority, and accrue service credit in state retirement
183.33 plans permitting service credits for authorized leaves of
183.34 absence as if the employee had actually been employed during the
183.35 time of the leave. If the leave of absence is for one full pay
183.36 period or longer, any holiday pay shall be included in the first
184.1 payroll warrant after return from the leave of absence. The
184.2 appointing authority shall attempt to grant requests for unpaid
184.3 leaves of absence consistent with the need to continue efficient
184.4 operation of the agency. However, each appointing authority
184.5 shall retain discretion to grant or refuse to grant requests for
184.6 leaves of absence and to schedule and cancel leaves, subject to
184.7 applicable provisions of collective bargaining agreements and
184.8 compensation plans.
184.9 Sec. 2. [CLARIFICATION OF APPROPRIATION.]
184.10 Subdivision 1. [PURPOSE.] This section clarifies treatment
184.11 extended to an individual specified in Laws 2001, chapter 169,
184.12 section 5, and is intended to eliminate any potential windfall
184.13 to the public employees retirement association police and fire
184.14 plan fund and the public employees retirement association
184.15 general employees plan fund that may result from that session
184.16 law.
184.17 Subd. 2. [ELIGIBILITY.] The eligible individual is an
184.18 individual specified in Laws 2001, chapter 169, section 5, who
184.19 was an assistant commissioner in the department of public safety
184.20 from April 30, 1994, through May 31, 1998, while on an
184.21 intergovernmental mobility assignment or assignments to the
184.22 state from the city of St. Paul police department.
184.23 Subd. 3. [SALARY INCREMENT.] The salary increment in any
184.24 applicable year or portion of a year is the difference between
184.25 the salary the eligible individual in subdivision 2 received as
184.26 assistant commissioner and the salary upon which pension
184.27 contributions were made for that year or portion of a year.
184.28 Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits,
184.29 or disability benefits, if applicable, under the public
184.30 employees retirement association police and fire plan and the
184.31 public employees retirement association general plan are to be
184.32 computed based on plan law applicable to the eligible individual
184.33 under subdivision 2 given the eligible individual's termination
184.34 of service date or dates, or the disability benefit accrual date
184.35 or dates as applicable, except for inclusion of salary
184.36 increments under subdivision 3 for purposes of determining
185.1 average salary under sections 353.29, subdivision 2, and
185.2 353.651, subdivision 2.
185.3 Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive
185.4 director of the public employees retirement association is to
185.5 determine the increased actuarial reserves, if any, needed to
185.6 support the annuities from the two applicable public employees
185.7 retirement association retirement funds on the effective date of
185.8 retirement or disability from the applicable plans due to this
185.9 section.
185.10 Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total
185.11 amount determined under subdivision 5, if zero or positive, is
185.12 to be subtracted from the total value of any appropriation
185.13 received by the public employees retirement association under
185.14 Laws 2001, chapter 169, section 5, on the date computations
185.15 under subdivision 5 occur assuming 8.5 percent interest
185.16 compounded annually from the date the appropriation is received
185.17 until the computation date under subdivision 5.
185.18 Subd. 7. [DISPOSITION OF EXCESS.] The amount determined
185.19 under subdivision 6, net of the value of any foregone employer
185.20 contributions, including 8.5 percent interest compounded
185.21 annually relating to the salary increments under subdivision 3,
185.22 if any, is to be redeposited within 30 days following the date
185.23 of that determination in the state's general fund.
185.24 Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law
185.25 to the contrary, the executive director is authorized to place
185.26 amounts received, if any, due to Laws 2001, chapter 169, section
185.27 5, in the public employees retirement association general plan
185.28 fund or the public employees retirement association police and
185.29 fire plan fund, or to allocate amounts between these funds as
185.30 deemed appropriate. Following the determinations required by
185.31 this section, the executive director may again reallocate
185.32 amounts between the two funds to reflect a reasonable allocation
185.33 of the remaining net appropriation amount.
185.34 Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and
185.35 interest paid to the association relating to the salary
185.36 increments referred to in subdivision 3 are authorized for
186.1 deposit in the public employees retirement association police
186.2 and fire plan fund and are ratified.
186.3 Sec. 3. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION
186.4 OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT
186.5 APPLICATION.]
186.6 (a) Notwithstanding Minnesota Statutes, section 353.29,
186.7 subdivision 7, or any other law to the contrary, an eligible
186.8 person described in paragraph (b) may revoke an application for
186.9 a retirement annuity from the public employees police and fire
186.10 plan and may file an application for a disability benefit from
186.11 the public employees police and fire plan, effective the first
186.12 day of the month following the approval of the disability
186.13 application under Minnesota Statutes, section 353.33,
186.14 subdivisions 2 and 4.
186.15 (b) An eligible person is a person who:
186.16 (1) was born on August 6, 1949;
186.17 (2) was employed for 27 years with the city of West St.
186.18 Paul fire department;
186.19 (3) terminated employment with the city of West St. Paul on
186.20 January 31, 2001;
186.21 (4) filed six "first report of injury" documents for back
186.22 injuries with the city of West St. Paul between June 1984 and
186.23 December 2000;
186.24 (5) requested recision of his public employees police and
186.25 fire plan retirement annuity on February 16, 2001, and tendered
186.26 a personal check repaying the initial annuity amount; and
186.27 (6) unsuccessfully appealed to the public employees
186.28 retirement association board of trustees on May 10, 2001, for
186.29 authority to rescind a retirement annuity application and to
186.30 apply for a disability benefit.
186.31 Sec. 4. [MSRS-GENERAL; ACCELERATED OPTIONAL ANNUITY FORM.]
186.32 (a) An eligible person described in paragraph (b) is
186.33 entitled to elect from the general state employees retirement
186.34 plan of the Minnesota state retirement system the actuarial
186.35 equivalent accelerated optional annuity form specified in
186.36 paragraph (c).
187.1 (b) An eligible person is a person who:
187.2 (1) was born on October 13, 1943;
187.3 (2) was employed as a teacher by the Benson public schools
187.4 from August 1967 to June 1969;
187.5 (3) was employed as a teacher by the Richfield public
187.6 schools from January 1, 1971, to June 1973; and
187.7 (4) was initially employed by the office of the legislative
187.8 auditor on October 14, 1985, and remains an employee of the
187.9 office of the legislative auditor.
187.10 (c) The board of directors of the Minnesota state
187.11 retirement system shall establish an accelerated optional
187.12 retirement annuity for the eligible person. The accelerated
187.13 optional retirement annuity form must replicate to the extent
187.14 practicable the accelerated optional retirement annuity form
187.15 that would apply to the eligible person by the teachers
187.16 retirement association. The optional annuity form must be the
187.17 actuarial equivalent of the eligible person's single life
187.18 annuity. The accelerated optional retirement annuity form must
187.19 be established prior to October 1, 2002. The cost of the
187.20 actuarial calculations of the consulting actuary retained by the
187.21 legislative commission on pensions and retirement is payable by
187.22 the general state employees retirement plan and the plan must be
187.23 reimbursed by the eligible person for those costs upon
187.24 notification by the executive director of the Minnesota state
187.25 retirement system.
187.26 Sec. 5. [PRIOR OUT-OF-STATE TEACHING SERVICE CREDIT
187.27 PURCHASE BY PUBLIC EMPLOYEES RETIREMENT ASSOCIATION MEMBER.]
187.28 Subdivision 1. [ELIGIBILITY.] An eligible member is a
187.29 current active member of the public employees retirement
187.30 association general plan who became a member of that plan on
187.31 August 1, 1973, and who was born on December 16, 1944. An
187.32 eligible member may purchase allowable service credit in the
187.33 public employees retirement association general plan as
187.34 specified in this section.
187.35 Subd. 2. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) An
187.36 eligible member specified in subdivision 1 is eligible to
188.1 purchase up to four years of allowable service credit from the
188.2 general employees retirement plan of the public employees
188.3 retirement association for out-of-state teaching service by
188.4 making payment under Minnesota Statutes, section 356.55 or
188.5 356.551, whichever is applicable, provided that the out-of-state
188.6 teaching service was performed for an educational institution
188.7 that was established and operated by another governmental
188.8 jurisdiction and that the eligible member is not entitled to
188.9 receive a current or deferred age and service retirement annuity
188.10 or disability benefit and has not purchased service credit from
188.11 another defined benefit public employee pension plan for that
188.12 out-of-state teaching service.
188.13 (b) For purposes of paragraph (a), "another governmental
188.14 jurisdiction" means another state of the United States or a
188.15 governmental subdivision of another state of the United States.
188.16 Subd. 3. [APPLICATION AND DOCUMENTATION.] An eligible
188.17 member under subdivision 1 who desires to purchase service
188.18 credit under this section must apply with the executive director
188.19 of the public employees retirement association to make the
188.20 purchase. The application must include all necessary
188.21 documentation of the eligible member's qualifications to make
188.22 the purchase, signed written permission to allow the executive
188.23 director to request and receive necessary verification of
188.24 applicable facts and eligibility requirements, and any other
188.25 relevant information that the executive director may require.
188.26 Payment must be made before the eligible member's effective date
188.27 of retirement or before January 1, 2003, whichever is earlier.
188.28 Subd. 4. [SERVICE CREDIT GRANT.] Allowable service credit
188.29 for the purchase period must be granted by the public employees
188.30 retirement association to the purchasing eligible member on
188.31 receipt of the required purchase payment amount.
188.32 Sec. 6. [LUMP SUM PRE-1973 RETIREE POSTRETIREMENT
188.33 ADJUSTMENT IN CERTAIN INSTANCES.]
188.34 (a) Notwithstanding any provision of Minnesota Statutes
188.35 2001 Supplement, section 356.866, or Minnesota Statutes, section
188.36 356.431, to the contrary, an eligible person described in
189.1 paragraph (b) may elect to receive the pre-1973 postretirement
189.2 adjustment in a lump sum payment rather than as an annuity
189.3 increase. The election must be made before September 1, 2002,
189.4 and is irrevocable by the annuitant or benefit recipient. For
189.5 the December 2002 lump sum payment, the amount must be the total
189.6 of the monthly amounts remaining unpaid to the annuitant or the
189.7 benefit recipient after the election.
189.8 (b) An eligible person is a person who:
189.9 (1) was born on December 5, 1908;
189.10 (2) is the survivor of a deceased annuitant of the general
189.11 employees retirement plan of the public employees retirement
189.12 association who was born on March 22, 1904, who retired on May
189.13 1, 1969, and who died on April 9, 1980; and
189.14 (3) waived an annuity from the general employees retirement
189.15 plan of the public employees retirement association in favor of
189.16 a surviving spouse benefit on May 1, 1980.
189.17 Sec. 7. [PERA AND MSRS; SERVICE CREDIT PURCHASE.]
189.18 Subdivision 1. [ELIGIBILITY.] An eligible person is a
189.19 person who:
189.20 (1) served as a legislator representing Hubbard county
189.21 during the 1961-1963 legislative session;
189.22 (2) was employed by the department of natural resources or
189.23 its predecessor at Itasca state park from 1964 to 1980; and
189.24 (3) retired from the general state employees retirement
189.25 plan of the Minnesota state retirement system on July 1, 1980,
189.26 with ten years, six months, and nine days of service credit.
189.27 Subd. 2. [PERA SERVICE CREDIT PURCHASE.] Upon the receipt
189.28 of an amount equal to the member contribution that the eligible
189.29 person would have otherwise made in 1961 and 1962, plus annual
189.30 compound interest on the total equivalent member contribution
189.31 amount at the rate of 8.5 percent from January 1, 1962, to the
189.32 date of payment, an eligible person is entitled to receive two
189.33 years of service credit from the general employees retirement
189.34 plan of the public employees retirement association for prior
189.35 uncredited service as a member of the legislature.
189.36 Subd. 3. [MSRS SERVICE CREDIT PURCHASE.] Upon the receipt
190.1 of an amount equal to the balance of the employee contribution
190.2 that the eligible person would have otherwise made during the
190.3 period 1964 to 1980 if the eligible person was employed on a
190.4 full-time basis, plus annual compound interest on the total
190.5 equivalent employee contribution amount at the rate of 8.5
190.6 percent from January 1, 1972, to the date of payment, an
190.7 eligible person is entitled to receive 5.48 years of service
190.8 credit from the general state employees retirement plan of the
190.9 Minnesota state retirement system for uncredited periods from
190.10 1964 to 1980 between seasonal Itasca state park employment.
190.11 Subd. 4. [COMBINED SERVICE ANNUITY
190.12 APPLICATION.] Notwithstanding the time that has elapsed since
190.13 initial retirement, an eligible person may apply for a
190.14 retirement annuity from the general employees retirement plan of
190.15 the public employees retirement association and may apply for a
190.16 recomputed retirement annuity from the general state employees
190.17 retirement plan of the Minnesota state retirement system under
190.18 Minnesota Statutes, section 356.30.
190.19 Subd. 5. [PAYMENT.] (a) The house of representatives shall
190.20 pay the executive director of the public employees retirement
190.21 association an amount equal to the required reserves needed to
190.22 support the retirement annuity of an eligible person under
190.23 subdivisions 2 and 4, reduced by the amount of the equivalent
190.24 member contribution, plus required interest, under subdivision
190.25 2. Payment must be made within ten days of notification by the
190.26 executive director that the equivalent member contribution
190.27 amount, plus required interest, has been received and of the
190.28 amount due. The payment and the equivalent member contribution
190.29 amount, plus interest, must be deposited in the public employees
190.30 retirement fund and transferred to the Minnesota postretirement
190.31 investment fund.
190.32 (b) The department of natural resources shall pay the
190.33 executive director of the Minnesota state retirement system an
190.34 amount equal to the required reserves needed to support the
190.35 retirement annuity of an eligible person under subdivisions 3
190.36 and 4, reduced by the amount of the equivalent employee
191.1 contribution, plus required interest, under subdivision 3.
191.2 Payment must be made within ten days of notification by the
191.3 executive director that the equivalent employee contribution
191.4 amount, plus required interest, has been received and of the
191.5 amount due. The payment and the equivalent member contribution
191.6 amount, plus interest, must be deposited in the state employees
191.7 retirement fund and transferred to the Minnesota postretirement
191.8 investment fund.
191.9 Subd. 6. [RETIREMENT ANNUITY ACCRUAL.] The retirement
191.10 annuities payable under this section accrue on the first day of
191.11 the month next following final enactment.
191.12 Sec. 8. [PRIOR SERVICE CREDIT PURCHASE REFUND.]
191.13 (a) An eligible person may receive a refund of any prior
191.14 military service credit purchase payment amount paid prior to
191.15 the applicable effective date of the federal Economic Growth and
191.16 Tax Reconciliation Act of 2001 if the eligible person transfers
191.17 pretax funds to the teachers retirement association under
191.18 Minnesota Statutes, section 356.55 or 356.551, whichever
191.19 applies, sufficient to purchase the identical period of prior
191.20 military service credit.
191.21 (b) An eligible person is a person who:
191.22 (1) was born on February 6, 1947;
191.23 (2) served in the United States armed forces from March 19,
191.24 1969, to October 22, 1970;
191.25 (3) had credit for 27 years of service from the teachers
191.26 retirement association as of June 30, 2000; and
191.27 (4) purchased 1.58 years of prior military service credit
191.28 from the teachers retirement association with the payment of
191.29 $23,958.18 on or before April 30, 2001.
191.30 (c) This section is contingent on the teachers retirement
191.31 association applying for and receiving a favorable ruling from
191.32 the federal Internal Revenue Service regarding the payment of
191.33 this refund.
191.34 Sec. 9. [PERA-P&F; EXCEPTION TO DISABILITY APPLICATION
191.35 DEADLINE.]
191.36 (a) Notwithstanding any provision of Minnesota Statutes,
192.1 section 353.33, subdivision 2, to the contrary, an eligible
192.2 person described in paragraph (b) is entitled to file a
192.3 disability benefit application with the general employees
192.4 retirement plan of the public employees retirement association
192.5 or with the public employees police and fire retirement plan
192.6 and, if otherwise qualified, to receive a disability benefit
192.7 from one or both of those retirement plans.
192.8 (b) An eligible person is a person who:
192.9 (1) was born on February 8, 1970;
192.10 (2) was an employee of the city of Bagley from May 1, 1991,
192.11 to May 31, 1992, and was covered by the coordinated program of
192.12 the general employees retirement plan of the public employees
192.13 retirement system;
192.14 (3) was employed as a police officer by the police
192.15 department of the city of Blooming Prairie from January 9, 1995,
192.16 to May 31, 1997, and was covered by the public employees police
192.17 and fire retirement plan;
192.18 (4) was struck by a motor vehicle while assisting with
192.19 traffic management at an accident site on interstate highway 35
192.20 in January 1997 resulting in various broken bones and other
192.21 injuries, necessitating at least eight surgeries;
192.22 (5) was placed on medical leave by the city of Blooming
192.23 Prairie on September 1, 1997, until January 1, 1998, upon
192.24 termination of employment; and
192.25 (6) failed to timely apply for disability benefits due to
192.26 the injuries which were diagnosed to have caused significant
192.27 depression and posttraumatic stress disorder.
192.28 (c) This section expires one year after the date of final
192.29 enactment.
192.30 Sec. 10. [EFFECTIVE DATE.]
192.31 Sections 1 to 9 are effective on the day following final
192.32 enactment.
192.33 ARTICLE 15
192.34 COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN;
192.35 SOCIAL SECURITY REFERENDUM
192.36 Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS
193.1 RETIREMENT PLAN.]
193.2 The coordinated program of the legislators retirement plan
193.3 is created. The provisions of sections 3A.01 to 3A.13 apply to
193.4 the coordinated program.
193.5 [EFFECTIVE DATE.] This section is effective the day
193.6 following final enactment.
193.7 Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.]
193.8 Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any
193.9 member of the legislators retirement plan established under
193.10 chapter 3A who did not elect coverage under an agreement under
193.11 section 218(d) of the Social Security Act as provided for in
193.12 section 355.624 is entitled to elect future social security
193.13 coverage and retroactive coverage for the period consistent with
193.14 applicable federal law, in a second social security referendum.
193.15 Any member who so elects shall become a member of the
193.16 coordinated program of the legislators retirement plan under
193.17 section 3A.15. The governor shall set a date for the referendum
193.18 and shall undertake any duties to amend the state's Social
193.19 Security Act, section 218 agreement, with the secretary of
193.20 health and human services.
193.21 Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY
193.22 TAXES.] For any service by a legislator who is in office on the
193.23 date of the agreement or modification of the agreement with the
193.24 secretary of health and human services, the executive director
193.25 of the Minnesota state retirement system shall cause to be paid
193.26 an amount for each legislator, including an amount for
193.27 retroactive coverage, equal to the taxes which would have been
193.28 imposed on the legislator and state of Minnesota by the Federal
193.29 Insurance Contributions Act had the service been covered at the
193.30 time performed. This payment shall be computed from the date of
193.31 retroactive coverage to the date that deductions are first taken
193.32 from the wages of each legislator for social security coverage.
193.33 Before making a payment on behalf of a legislator, the executive
193.34 director must receive from the legislator the funds necessary to
193.35 make the payment. Nothing in this section shall require a
193.36 legislator to elect retroactive social security coverage.
194.1 Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects
194.2 social security coverage under this section shall have a
194.3 deduction taken from wages in an amount equal to the employer
194.4 and employee contributions required by either subdivision 1 or
194.5 subdivision 2.
194.6 [EFFECTIVE DATE.] This section is effective the day
194.7 following final enactment.
194.8 ARTICLE 16
194.9 MINNEAPOLIS POLICE OPTIONAL ANNUITIES
194.10 Section 1. Minnesota Statutes 2000, section 423B.09,
194.11 subdivision 6, is amended to read:
194.12 Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or
194.13 disabled on the effective date of Laws 1997, chapter 233,
194.14 article 4, section 6, may elect an optional retirement annuity
194.15 within 60 days of the effective date of Laws 1997, chapter 233,
194.16 article 4, section 6, instead of the normal retirement annuity.
194.17 A member who retires or becomes disabled after the effective
194.18 date of Laws 1997, chapter 233, article 4, section 6, may elect
194.19 an optional retirement annuity prior to the receipt of any
194.20 benefits. The optional retirement annuity may be a 50 percent,
194.21 a 75 percent, or a 100 percent joint and survivor annuity
194.22 without reinstatement in the event of the designated beneficiary
194.23 predeceasing the member or a 50 percent, a 75 percent, or a 100
194.24 percent joint and survivor annuity with reinstatement in the
194.25 event of the designated beneficiary predeceasing the member.
194.26 Optional retirement annuity forms must be actuarially equivalent
194.27 to the service pension and automatic survivor coverage otherwise
194.28 payable to the retiring member and the member's
194.29 beneficiaries. A member may only designate the member's spouse
194.30 as the recipient of a joint and survivor annuity and no benefit
194.31 or annuity may be paid to a person who does not meet the
194.32 definition of a surviving spouse member under section 423B.01,
194.33 subdivision 17. Once selected, the optional annuity is
194.34 irrevocable.
194.35 Sec. 2. [EFFECTIVE DATE.]
194.36 Section 1 is effective the day following final enactment
195.1 and applies to all joint annuity options selected by members of
195.2 the Minneapolis police relief association."
195.3 Delete the title and insert:
195.4 "A bill for an act
195.5 relating to retirement; various retirement plans;
195.6 clarifying the laws applicable to the remaining local
195.7 police and paid firefighter pension plans; repealing
195.8 obsolete local police and paid firefighter pension
195.9 plan laws; providing public employee pension coverage
195.10 for certain foreign citizens; clarifying membership
195.11 eligibility and allowable service credit for the
195.12 public employees retirement association; requiring
195.13 membership for charter school teachers in the teachers
195.14 retirement association; providing for the payment of
195.15 unpaid closed charter school retirement contributions
195.16 from charter school lease aid; eliminating
195.17 contribution rate increases in the local government
195.18 correctional service retirement plan; establishing
195.19 provisions relating to employees of the Kanabec
195.20 hospital if the hospital is privatized; extending the
195.21 expiration date for certain prior service credit
195.22 purchase authorizations; recodifying social security
195.23 coverage provisions; implementing recommended changes
195.24 in salary actuarial assumptions; clarifying the
195.25 restrictions on supplemental and local pension plans
195.26 for plans funded from accumulated sick and vacation
195.27 leave; reorganizing and revising various general
195.28 retirement provisions; instructing the revisor of
195.29 statutes; authorizing the commissioner of
195.30 administration to lease pension fund facilities to
195.31 deferred compensation service providers; authorizing
195.32 certain volunteer firefighters to receive service
195.33 pensions or disability benefits without terminating
195.34 active service; amending Minnesota Statutes 2000,
195.35 sections 69.77; 69.80; 353.01, by adding a
195.36 subdivision; 353.64, subdivision 7a; 353A.08,
195.37 subdivision 6a; 353E.02, subdivision 1, by adding a
195.38 subdivision; 353E.03; 353F.02, subdivision 4;
195.39 354A.011, subdivision 27; 354A.12, subdivision 3d;
195.40 355.01, subdivisions 1, 3, 6, 8, by adding
195.41 subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08;
195.42 356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215,
195.43 as amended; 356.216; 356.217; 356.219; 356.22; 356.23;
195.44 356.24, subdivisions 1b, 1c, 2; 356.245; 356.25;
195.45 356.30; 356.302; 356.303; 356.32; 356.40; 356.41;
195.46 356.50; 356.55, as amended; 356.551; 356.611; 356.65,
195.47 subdivision 2; 356.87; 356.89, subdivision 3; 423A.17;
195.48 423A.171; 423B.09, subdivision 6; 424A.02, subdivision
195.49 1; 424A.09; Minnesota Statutes 2001 Supplement,
195.50 sections 352.01, subdivision 11; 353.01, subdivisions
195.51 2a, 2b, 11b, 16; 353.27, subdivisions 4, 11; 354.05,
195.52 subdivisions 2, 13; 356.24, subdivision 1; 356.555;
195.53 356.62; 356.65, subdivision 1; Laws 1997,chapter 202,
195.54 article 2, section 61, as amended; Laws 1999, chapter
195.55 222, article 16, section 16; Laws 2000, chapter 461,
195.56 article 10, section 3, as amended; Laws 2000, chapter
195.57 461, article 12, section 20; Laws 2001, First Special
195.58 Session chapter 10, article 6, section 21; proposing
195.59 coding for new law in Minnesota Statutes, chapters 3A;
195.60 355; 356; proposing coding for new law as Minnesota
195.61 Statutes, chapter 356B; repealing Minnesota Statutes
195.62 2000, sections 69.25; 69.26; 69.27; 69.28; 69.29;
195.63 69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40;
195.64 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47;
195.65 69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62;
195.66 69.78; 297I.10, subdivision 2; 355.01, subdivisions 2,
195.67 4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15;
196.1 355.16; 355.17; 355.201; 355.202; 355.203; 355.204;
196.2 355.205; 355.206; 355.207; 355.208; 355.209; 355.21;
196.3 355.22; 355.23; 355.24; 355.25; 355.26; 355.27;
196.4 355.28; 355.281; 355.282; 355.283; 355.284; 355.285;
196.5 355.286; 355.287; 355.288; 355.29; 355.291; 355.292;
196.6 355.293; 355.294; 355.295; 355.296; 355.297; 355.298;
196.7 355.299; 355.30; 355.311; 355.391; 355.392; 355.393;
196.8 355.41; 355.42; 355.43; 355.44; 355.45; 355.46;
196.9 355.48; 355.49; 355.50; 355.51; 355.52; 355.54;
196.10 355.55; 355.56; 355.57; 355.58; 355.59; 355.60;
196.11 355.61; 355.621; 355.622; 355.623; 355.624; 355.625;
196.12 355.626; 355.627; 355.628; 355.71; 355.72; 355.73;
196.13 355.74; 355.75; 355.76; 355.77; 355.78; 355.79;
196.14 355.80; 355.81; 355.90; 356.19; 356.305; 356.306;
196.15 356.31; 356.325; 356.35; 356.36; 356.37; 356.371,
196.16 subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45;
196.17 356.451; 356.452; 356.453; 356.454; 356.455; 356.615;
196.18 356.71; 356.80; 356.81; 356.86; 356.865; 356.88;
196.19 356.89; 423.37; 423.371; 423.372; 423.373; 423.374;
196.20 423.375; 423.377; 423.378; 423.379; 423.38; 423.381;
196.21 423.382; 423.383; 423.384; 423.385; 423.386; 423.387;
196.22 423.388; 423.389; 423.39; 423.391; 423.392; 423.801;
196.23 423.802; 423.803; 423.804; 423.805; 423.806; 423.808;
196.24 423.809; 423.810; 423.812; 423.813; 423.814; 423.90;
196.25 423A.03; 424.01; 424.02; 424.03; 424.04; 424.05;
196.26 424.06; 424.08; 424.14; 424.15; 424.16; 424.165;
196.27 424.17; 424.18; 424.19; 424.20; 424.21; 424.22;
196.28 424.23; 424.24; 424.25; 424.27; 424.28; 424.29;
196.29 Minnesota Statutes 2001 Supplement, sections 353.01,
196.30 subdivision 39; 356.371, subdivision 1; 356.866;
196.31 Special Laws 1889, chapter 425; Special Laws 1891,
196.32 chapter 11; Laws 1897, chapters 389; 390; Laws 1915,
196.33 chapter 68; Laws 1917, chapter 196; Laws 1919,
196.34 chapters 68, 515; Laws 1921, chapter 118; Laws 1923,
196.35 chapter 54; Laws 1925, chapter 197; Laws 1931, chapter
196.36 48; Laws 1933, chapter 122; Laws 1935, chapters 92;
196.37 192; 208; 259; Laws 1937, chapters 132; 197; 253; Laws
196.38 1939, chapters 124; 304; Laws 1941, chapters 74; 182;
196.39 196; Laws 1943, chapters 170; 267; 397; 413; 432; Laws
196.40 1945, chapters 74; 182; 277; 300; Laws 1947, chapters
196.41 40; 43; 101; 274; 329; Laws 1949, chapters 87; 144;
196.42 153; 154; 164; 191; 235; 281; 378; Laws 1951, chapters
196.43 43; 45; 48; 144; 233; 243; 420; 435; 499; Laws 1953,
196.44 chapters 37; 44; 91; 235; 253; 348; 391; 401; 406;
196.45 Laws 1955, chapters 42; 49; 75; 151; 187; 188; 293;
196.46 294; 348; 375; 827; Laws 1957, chapters 10; 16; 36;
196.47 127; 144; 164; 256; 257; 455; 630; 793; Laws 1959,
196.48 chapters 108; 131; 191; 207; 208; 211; 437; Laws 1961,
196.49 chapters 186; 290; 295; 300; 343; 376; 399; 434; 435,
196.50 section 2; 443; 620; 631; 747; Extra Session Laws
196.51 1961, chapters 28; 80; Laws 1963, chapters 36; 208;
196.52 221; 271; 443; 453; 454; 464; 619; 636; 643; 670; 715;
196.53 Laws 1965, chapters 174; 179; 190; 418; 457; 458; 465;
196.54 498; 536; 540; 594; 604; 605; 636; 790; Laws 1967,
196.55 chapters 644; 678; 702; 708; 730; 732; 736; 751; 775;
196.56 783; 798; 807; 816; 848; Laws 1969, chapters 138; 442;
196.57 443; 552; 576; 594; 614; 641; 668; 669; 670; 671; 672;
196.58 686; 694; 716; 849; 1087; Laws 1971, chapters 51; 178;
196.59 407; 549; 614; 807; 809; 810; Extra Session Laws 1971,
196.60 chapter 41; Laws 1973, chapters 286; 287; 346; 359;
196.61 432; 433; 587; Laws 1974, chapters 251; 382; Laws
196.62 1975, chapters 120; 121; 127; 254, sections 1, 2, 3,
196.63 4, 5, 6; 368, section 54; 389; 408; 423; 424; 425;
196.64 Laws 1976, chapters 36; 78; 85; 99; 247; Laws 1977,
196.65 chapters 83; 164, sections 1, 3; 169; 270; 275; 374,
196.66 sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
196.67 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26,
196.68 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39,
196.69 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52,
196.70 53, 54, 55, 56, 57, 58, 59, 60; 429, section 62; Laws
196.71 1978, chapters 563, sections 12, 13, 14, 16, 17, 18,
197.1 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; 579;
197.2 648; 690, sections 9, 10; 793, section 96; Laws 1979,
197.3 chapters 131, section 3; 216, sections 27, 28, 29, 30,
197.4 31, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44; Laws
197.5 1980, chapters 341, sections 2, 3, 4, 5, 6, 9, 10;
197.6 600, sections 11, 12, 13, 14, 15, 16, 17, 18, 22; 607,
197.7 article XV, section 23; Laws 1981, chapter 68,
197.8 sections 31, 32, 33, 34, 35, 36, 37, 41, 42, 43; Laws
197.9 1981, chapter 224, sections 236, 237, 239, 240, 243,
197.10 244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264,
197.11 265, 266, 267, 268, 270, 272, 273; Laws 1981, chapter
197.12 297, sections 1, 2; Laws 1982, chapters 402; 443; 574,
197.13 sections 3, 4, 5, 6, 8; 578, article II, section 1,
197.14 subdivision 8, article III, section 18; 610, sections
197.15 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20; Laws
197.16 1983, chapters 47; 74; 84, section 1; 291, sections 8,
197.17 9, 10, 11, 12, 13, 14, 15, 16, 17; Laws 1984, chapter
197.18 574, sections 18, 19, 20, 22, 23, 24, 25, 26, 33; Laws
197.19 1985, chapters 259, sections 5, 6; 261, sections 14,
197.20 15, 16, 18, 20, 32, 33, 34, 35, 36; Laws 1985, First
197.21 Special Session chapter 16, article 2, section 6; Laws
197.22 1986, chapters 359, sections 22, 23, 24, 25; 458,
197.23 sections 23, 34; Laws 1987, chapter 372, article 2,
197.24 sections 7, 8, 9, 10, 12; Laws 1988, chapter 709,
197.25 articles 8, section 5; 9, section 5; Laws 1989,
197.26 chapter 319, article 11, sections 2, 3, 4, 12; Laws
197.27 1990, chapter 589, article 1, section 7; Laws 1991,
197.28 chapters 96; 269, article 2, sections 12, 13; Laws
197.29 1992, chapters 392, section 1; 393, section 1; 422;
197.30 431, section 1; 448; 455; 563, sections 3, 4, 5; 586,
197.31 section 1; Laws 1993, chapters 72; 110; 112, section
197.32 2; 126; 202, article 1; Laws 1994, chapters 409; 410;
197.33 474; 490; 541, section 3; Laws 1995, chapter 262,
197.34 article 10, section 4; Laws 1996, chapter 448, article
197.35 2, section 1; Laws 1997, chapter 233, article 1,
197.36 section 58; Laws 1997, chapter 241, article 2,
197.37 sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20;
197.38 Laws 1999, chapter 222, article 3, section 6; Laws
197.39 2000, chapter 461, article 10, section 2."
198.1 We request adoption of this report and repassage of the
198.2 bill.
198.5 House Conferees:
198.8 ......................... .........................
198.9 Harry Mares Steve Smith
198.12 .........................
198.13 Mary Murphy
198.18 Senate Conferees:
198.21 ......................... .........................
198.22 Dean E. Johnson Lawrence J. Pogemiller
198.25 .........................
198.26 Roy W. Terwilliger