HF 3903

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 01:46pm

A bill for an act
relating to retirement; Minnesota State Retirement System; repealing provisions
permitting partial repayment of refunds; making changes of an administrative
nature; amending Minnesota Statutes 2018, sections 352.01, subdivision 26; 352.04,
subdivisions 4, 8, by adding a subdivision; 352.113, subdivision 4; 352.95,
subdivision 3; 352B.011, subdivisions 6, 10; 352B.10, subdivision 2a; 356.24,
subdivision 1, by adding a subdivision; 490.121, subdivision 7c; 490.123,
subdivision 5; 490.124, subdivision 1; Minnesota Statutes 2019 Supplement,
sections 352.04, subdivision 9; 352.113, subdivision 2; 352.23; repealing Minnesota
Statutes 2018, section 356.44.

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

Section 1.

Minnesota Statutes 2018, section 352.01, subdivision 26, is amended to read:

Subd. 26.

Dependent child.

"Dependent child" means new text begin an individual who is new text end a biological
or adopted child of a deceased employee deleted text begin who deleted text end new text begin , new text end has not reached the age of 20 new text begin , new text end and is dependent
upon the employee for more than one-half of the child's support at the time of the employee's
death. It also means a child of the member conceived during the member's lifetime and born
after the member's death new text begin unless a parent-child relationship does not exist under section
524.2-120, subdivision 10 new text end .

Sec. 2.

Minnesota Statutes 2018, section 352.04, subdivision 4, is amended to read:

Subd. 4.

Payroll deductions.

deleted text begin The head of deleted text end Each deleted text begin department deleted text end new text begin employing entity new text end shall have
employee contributions deducted from the salary of each employee covered by the system
on every payroll abstract and shall approve one voucher payable to the commissioner of
management and budget for the aggregate amount deducted on the payroll abstract.
Deductions from salaries of employees paid deleted text begin direct deleted text end new text begin directly new text end by any deleted text begin department, institution,
or agency of the state deleted text end new text begin employing entity new text end must be made by the officer or employee authorized
by law to pay the salaries. deleted text begin The head of any department or agency deleted text end new text begin Any employing entity
new text end having authority to appoint any employee who receives fees as compensation or who receives
compensation on federal payrolls shall collect as the required employee contribution the
applicable amounts required in subdivision 2. Deductions from salary and amounts collected
must be remitted to the director with a statement showing the amount of earnings or fees,
and in the case of fees, the number of transactions, and the amount of each of the deductions
and collections and the names of the employees on whose account they have been made.

Sec. 3.

Minnesota Statutes 2018, section 352.04, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Department deleted text end new text begin Employing entity new text end required to pay omitted salary deductions.

(a)
If deleted text begin a department deleted text end new text begin an employing entity new text end fails to take deductions past due for a period of 60 days
or less from an employee's salary as provided in this section, those deductions must be taken
on later payroll abstracts.

(b) If deleted text begin a department deleted text end new text begin an employing entity new text end fails to take deductions past due for a period in
excess of 60 days from an employee's salary as provided in this section, the deleted text begin department deleted text end new text begin
employing entity new text end , and not the employee, must pay on later payroll abstracts the employee
and employer contributions and interest at the applicable annual rate or rates specified in
section 356.59, subdivision 2, compounded annually, from the date the employee and
employer contributions should have been deducted to the date payment of the total amount
due is paid by the deleted text begin department deleted text end new text begin employing entity new text end .

(c) If deleted text begin a department deleted text end new text begin an employing entity new text end fails to take deductions past due for a period of
60 days or less and the employee is no longer in state service so that the required deductions
cannot be taken from the salary of the employee, the deleted text begin department deleted text end new text begin employing entity new text end must
nevertheless pay the required employer contributions. If any deleted text begin department deleted text end new text begin employing entity
new text end fails to take deductions past due for a period in excess of 60 days and the employee is no
longer in state service, the omitted contributions must be recovered under paragraph (b).

(d) If an employee from whose salary required deductions were past due for a period of
60 days or less leaves state service before the payment of the omitted deductions and
subsequently returns to state service, the unpaid amount is considered the equivalent of a
refund. The employee accrues no right by reason of the unpaid amount, except that the
employee may pay the amount of omitted deductions as provided in section 352.23.

Sec. 4.

Minnesota Statutes 2019 Supplement, section 352.04, subdivision 9, is amended
to read:

Subd. 9.

Erroneous deductions, canceled payments.

(a) Deductions taken from the
salary of an employee for the retirement fund in excess of required amounts must, upon
discovery and verification by the deleted text begin department deleted text end new text begin employing entity new text end making the deduction, be
refunded to the employee. new text begin Employer contributions made in excess of required amounts must
be refunded or credited to the employing entity that made the contribution.
new text end

(b) If a deduction for the retirement fund is taken from a salary payment, and the payment
is canceled or the amount of the payment returned to the funds of the deleted text begin department deleted text end new text begin employing
entity new text end making the payment, the sum deducted, or the part of it required to adjust the
deductions, must be refunded new text begin or credited new text end to the deleted text begin department or institution deleted text end new text begin employing entity
new text end if the deleted text begin department deleted text end new text begin employing entity new text end applies for the refund on a form furnished by the director. deleted text begin
The department's payments must likewise be refunded to the department.
deleted text end

(c) If erroneous employee deductions and employer contributions are caused by an error
in plan coverage involving the plan and any other plans specified in section 356.99, that
section applies. If the employee should have been covered by the plan governed by chapter
352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken
in error must be directly transferred to the applicable employee's account in the correct
retirement plan, with interest at the applicable monthly rate or rates specified in section
356.59, subdivision 2, compounded annually, from the first day of the month following the
month in which coverage should have commenced in the correct defined contribution plan
until the end of the month in which the transfer occurs.

Sec. 5.

Minnesota Statutes 2018, section 352.04, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin "Employing entity" defined. new text end

new text begin In this section, "employing entity" means the
entity that pays a state employee's salary and remits retirement contributions.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 352.113, subdivision 2, is amended
to read:

Subd. 2.

Application; accrual of benefits.

(a) An employee making claim for a total
and permanent disability benefit, or someone acting on behalf of the employee upon proof
of authority satisfactory to the director, shall file a written application for benefits in deleted text begin the deleted text end new text begin an new text end
office of the system deleted text begin on or before the deadline specified in subdivision 4, paragraph (g) deleted text end new text begin or
with a person authorized by the director new text end .

(b) The application must be in a form and manner prescribed by the deleted text begin executive deleted text end director deleted text begin
and include the medical reports required by subdivision 4, paragraph (b) deleted text end . new text begin The completed
application form and supporting documents must be received in an office of the system or
by an authorized person before the expiration of the period specified in subdivision 4,
paragraph (g). In this paragraph, "supporting documents" means:
new text end

new text begin (1) two medical reports as required by subdivision 4, paragraph (b); and
new text end

new text begin (2) a written certification by the employing entity as required by subdivision 4, paragraph
(e).
new text end

new text begin Supporting documents are not required to be original documents except as determined
by the director.
new text end

(c) The benefit shall begin to accrue the day following the start of disability or the day
following the last day paid, whichever is later, but not earlier than 180 days before the date
the application deleted text begin is deleted text end new text begin and supporting documents are new text end filed in an office of the system new text begin or with an
authorized person new text end .

Sec. 7.

Minnesota Statutes 2018, section 352.113, subdivision 4, is amended to read:

Subd. 4.

Medical or psychological examinations; authorization for payment of
benefit.

(a) Any physician, psychologist, chiropractor, physician assistant, new text begin podiatrist, new text end or
nurse practitioner providing any service specified in this section must be licensed.

(b) An applicant shall provide a detailed report signed by a physician, and at least one
additional report signed by a physician, psychologist, chiropractor, physician assistant, new text begin
podiatrist, new text end or nurse practitioner with evidence to support an application for total and
permanent disability. The reports must include an expert opinion regarding whether the
employee is permanently and totally disabled within the meaning of section 352.01,
subdivision 17, and that the disability arose before the employee was placed on any paid or
unpaid leave of absence or terminated public service.

(c) If there is medical evidence that supports the expectation that at some point the person
applying for the disability benefit will no longer be disabled, the decision granting the
disability benefit may provide for a termination date upon which the total and permanent
disability can be expected to no longer exist. When a termination date is part of the decision
granting benefits, prior to the benefit termination the executive director shall review any
evidence provided by the disabled employee to show that the disabling condition for which
benefits were initially granted continues. If the benefits cease, the disabled employee may
follow the appeal procedures described in section 356.96 or may reapply for disability
benefits using the process described in this subdivision.

(d) Any claim to disability must be supported by a report from the employer indicating
that there is no available work that the employee can perform with the disabling condition
and that all reasonable accommodations have been considered. Upon request of the executive
director, an employer shall provide evidence of the steps the employer has taken to attempt
to provide reasonable accommodations and continued employment to the claimant.

(e) The director shall also obtain written certification from the employer stating whether
the employment has ceased or whether the employee is on sick leave of absence because
of a disability that will prevent further service to the employer and that the employee is not
entitled to compensation from the employer.

(f) The medical adviser shall consider the reports of the physician, psychologist,
chiropractor, physician assistant, new text begin podiatrist, new text end or nurse practitioner and any other evidence
supplied by the employee or other interested parties. If the medical adviser finds the employee
totally and permanently disabled, the adviser shall make appropriate recommendation to
the director in writing together with the date from which the employee has been totally
disabled. The director shall then determine if the disability occurred while still in the
employment of the state and constitutes a total and permanent disability as defined in section
352.01, subdivision 17.

(g) A terminated employee may apply for a disability benefit within 18 months of
termination as long as the disability occurred while in the employment of the state. The fact
that an employee is placed on leave of absence without compensation because of disability
does not bar that employee from receiving a disability benefit.

(h) Upon appeal, the board of directors may extend the disability benefit application
deadline in paragraph (g) by an additional 18 months if the terminated employee is
determined by the board of directors to have a cognitive impairment that made it unlikely
that the terminated employee understood that there was an application deadline or that the
terminated employee was able to meet the application deadline.

(i) Unless the payment of a disability benefit has terminated because the employee is
no longer totally disabled, or because the employee has reached normal retirement age as
provided in this section, the disability benefit must cease with the last payment received by
the disabled employee or which had accrued during the lifetime of the employee unless
there is a spouse surviving. In that event, the surviving spouse is entitled to the disability
benefit for the calendar month in which the disabled employee died.

Sec. 8.

Minnesota Statutes 2019 Supplement, section 352.23, is amended to read:

352.23 TERMINATION OF RIGHTS; REPAYMENT OF REFUND.

(a) When any employee accepts a refund as provided in section 352.22, all existing
allowable service credits and all rights and benefits to which the employee was entitled
before accepting the refund terminate.

(b) Terminated service credits and rights must not again be restored until the former
employee acquires at least six months of allowable service credit after taking the last refund
and repays all refunds previously taken from the retirement fund with interest as provided
in paragraph (d). deleted text begin If an employee repays only part of a refund or repays a refund in partial
payments as permitted under paragraph (d), service credit will be restored in accordance
with section 356.44. deleted text end An employee will not be considered as entitled to any other benefit,
including benefits for which the employee may be eligible because of the employee's original
hire date into public employment, until full repayment of all refunds has been made.

(c) Repayment of refunds entitles the employee only to credit for service covered by (1)
salary deductions; (2) payments previously made in lieu of salary deductions as permitted
under law in effect when the payment in lieu of deductions was made; (3) payments made
to obtain credit for service as permitted by laws in effect when payment was made; and (4)
allowable service previously credited while receiving temporary workers' compensation as
provided in section 352.01, subdivision 11, paragraph (a), clause (3).

(d) Payments under this section for repayment of refunds are to be paid with interest at
the applicable annual rate or rates specified in section 356.59, subdivision 2, compounded
annually, from the date the refund was taken until the date the refund is repaid. Repayment
may be made deleted text begin in partial payments consistent with section 356.44 during employment or deleted text end in
a lump sum new text begin during employment or new text end up to six months after termination from service.

Sec. 9.

Minnesota Statutes 2018, section 352.95, subdivision 3, is amended to read:

Subd. 3.

Applying for benefits; accrual.

No application for disability benefits may be
made until after the last day physically on the job. The disability benefit begins to accrue
the day following the last day for which the employee is paid sick leave or annual leave,
but not earlier than 180 days before the date the application is filed. A terminated employee
must file a written application deleted text begin within the time frame specified under section 352.113,
subdivision 4, paragraph (g) deleted text end new text begin in an office of the system or with a person authorized by the
executive director. Applications must comply with section 352.113, subdivision 2, paragraph
(b) new text end .

Sec. 10.

Minnesota Statutes 2018, section 352B.011, subdivision 6, is amended to read:

Subd. 6.

Dependent child.

"Dependent child" means new text begin an individual who is new text end a natural or
adopted unmarried child of a deceased member new text begin and is new text end under the age of 18 years, including
any child of the member conceived during the lifetime of the member and born after the
death of the member new text begin unless a parent-child relationship does not exist under section 524-2.120,
subdivision 10 new text end .

Sec. 11.

Minnesota Statutes 2018, section 352B.011, subdivision 10, is amended to read:

Subd. 10.

Member.

"Member" means:

(1) a State Patrol member currently employed under section 299D.03 by the state, who
is a peace officer under section 626.84, and whose salary or compensation is paid out of
state funds;

(2) a conservation officer employed under section 97A.201, currently employed by the
state, whose salary or compensation is paid out of state funds;

(3) a crime bureau officer who was employed by the crime bureau and was a member
of the Highway Patrolmen's retirement fund on July 1, 1978, whether or not that person has
the power of arrest by warrant after that date, or who is employed as police personnel, with
powers of arrest by warrant under Minnesota Statutes 2009, section 299C.04, and who is
currently employed by the state, and whose salary or compensation is paid out of state funds;

deleted text begin (4) a person who is employed by the state in the Department of Public Safety in a data
processing management position with salary or compensation paid from state funds, who
was a crime bureau officer covered by the State Patrol retirement plan on August 15, 1987,
and who was initially hired in the data processing management position within the department
during September 1987, or January 1988, with membership continuing for the duration of
the person's employment in that position, whether or not the person has the power of arrest
by warrant after August 15, 1987;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end a public safety employee who is a peace officer under section 626.84, subdivision
1, paragraph (c), and who is employed by the Division of Alcohol and Gambling Enforcement
under section 299L.01;

deleted text begin (6) deleted text end new text begin (5) new text end a Fugitive Apprehension Unit officer after October 31, 2000, who is employed
by the Office of Special Investigations of the Department of Corrections and who is a peace
officer under section 626.84;

deleted text begin (7) deleted text end new text begin (6) new text end an employee of the Department of Commerce defined as a peace officer in section
626.84, subdivision 1, paragraph (c), who is employed by the Commerce Fraud Bureau
under section 45.0135 after January 1, 2005, and who has not attained the mandatory
retirement age specified in section 43A.34, subdivision 4; and

deleted text begin (8) deleted text end new text begin (7) new text end an employee of the Department of Public Safety, who is a licensed peace officer
under section 626.84, subdivision 1, paragraph (c), and is employed as the statewide
coordinator of the Violent Crime Coordinating Council.

Sec. 12.

Minnesota Statutes 2018, section 352B.10, subdivision 2a, is amended to read:

Subd. 2a.

Applying for benefits; accrual.

No application for disability benefits shall
be made until after the last day physically on the job. The disability benefit begins to accrue
the day following the last day for which the employee is paid sick leave or annual leave but
not earlier than 180 days before the date the application is filed. A member who is terminated
must file a written application deleted text begin within the time frame specified under section 352.113,
subdivision 4, paragraph (g) deleted text end new text begin in an office of the system or with a person authorized by the
executive director. Applications must comply with section 352.113, subdivision 2, paragraph
(b) new text end .

Sec. 13.

Minnesota Statutes 2018, section 356.24, subdivision 1, is amended to read:

Subdivision 1.

Restriction; exceptions.

It is unlawful for a school district or other
governmental subdivision or state agency to levy taxes for or to contribute public funds to
a supplemental pension or deferred compensation plan that is established, maintained, and
operated in addition to a primary pension program for the benefit of the governmental
subdivision employees other than:

(1) to a supplemental pension plan that was established, maintained, and operated before
May 6, 1971;

(2) to a plan that provides solely for group health, hospital, disability, or death benefits;

(3) to the individual retirement account plan established by chapter 354B;

(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or
terminating employee;

deleted text begin (5) for employees other than personnel employed by the Board of Trustees of the
Minnesota State Colleges and Universities and covered under the Higher Education
Supplemental Retirement Plan under chapter 354C, but including city managers covered
by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph
(a), or by the defined contribution plan of the Public Employees Retirement Association
under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is
provided for in a personnel policy of the public employer or in the collective bargaining
agreement between the public employer and the exclusive representative of public employees
in an appropriate unit or in the individual employment contract between a city and a city
manager, and if for each available investment all fees and historic rates of return for the
prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily
comprehended document not to exceed two pages, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an employer contribution of
one-half of the available elective deferral permitted per year per employee, under the Internal
Revenue Code:
deleted text end

deleted text begin (i) to the state of Minnesota deferred compensation plan under section 352.965;
deleted text end

deleted text begin (ii) in payment of the applicable portion of the contribution made to any investment
eligible under section 403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the Internal Revenue Code with
respect to the tax-sheltered annuity program during the preceding calendar year; or
deleted text end

deleted text begin (iii) any other deferred compensation plan offered by the employer under section 457
of the Internal Revenue Code;
deleted text end

new text begin (5) to a deferred compensation plan defined in subdivision 3;
new text end

(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges
and Universities and not covered by clause (5), to the supplemental retirement plan under
chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in
the collective bargaining agreement of the public employer with the exclusive representative
of the covered employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an employer contribution of
$2,700 a year for each employee;

(7) to a supplemental plan or to a governmental trust to save for postretirement health
care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the
supplemental plan coverage is provided for in a personnel policy or in the collective
bargaining agreement of a public employer with the exclusive representative of the covered
employees in an appropriate unit;

(8) to the laborers national industrial pension fund or to a laborers local pension fund
for the employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $7,000 per year per employee;

(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters
local pension fund for the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by that fund and that sets forth
a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per
employee;

(10) to the international union of operating engineers pension fund for the employees
of a governmental subdivision who are covered by a collective bargaining agreement that
provides for coverage by that fund and that sets forth a fund contribution rate, but not to
exceed an employer contribution of $5,000 per year per employee;

deleted text begin (11) to a supplemental plan organized and operated under the federal Internal Revenue
Code, as amended, that is wholly and solely funded by the employee's accumulated sick
leave, accumulated vacation leave, and accumulated severance pay;
deleted text end

deleted text begin (12) deleted text end new text begin (11) new text end to the International Association of Machinists national pension fund for the
employees of a governmental subdivision who are covered by a collective bargaining
agreement that provides for coverage by that fund and that sets forth a fund contribution
rate, but not to exceed an employer contribution of $5,000 per year per employee;

deleted text begin (13) deleted text end new text begin (12) new text end for employees of United Hospital District, Blue Earth, to the state of Minnesota
deferred compensation program, if the employee makes a contribution, in an amount that
does not exceed the total percentage of covered salary under section 353.27, subdivisions
3 and 3a;

deleted text begin (14) deleted text end new text begin (13) new text end to the alternative retirement plans established by the Hennepin County Medical
Center under section 383B.914, subdivision 5; or

deleted text begin (15) deleted text end new text begin (14) new text end to the International Brotherhood of Teamsters Central States pension plan for
fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission who
are members of the International Brotherhood of Teamsters Local 638 by virtue of that
employment.

Sec. 14.

Minnesota Statutes 2018, section 356.24, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Deferred compensation plan. new text end

new text begin (a) As used in this section, a "deferred
compensation plan" means a plan that satisfies the requirements in this subdivision.
new text end

new text begin (b) The plan is:
new text end

new text begin (1) the Minnesota deferred compensation plan under section 352.965;
new text end

new text begin (2) a tax-sheltered annuity program under section 403(b) of the federal Internal Revenue
Code; or
new text end

new text begin (3) a deferred compensation plan under section 457(b) of the federal Internal Revenue
Code.
new text end

new text begin (c) The plan administrator or custodian discloses at least annually to participants (1) all
fees, including administrative, maintenance, and investment fees, that impact the rate of
return on each investment fund available under the plan, and (2) for each investment fund,
the rates of return for the prior one-, three-, five-, and ten-year periods or for the life of the
fund, if shorter, in an easily understandable document. The plan administrator or custodian
must file a copy of this document with the executive director of the Legislative Commission
on Pensions and Retirement within 30 days of the end of each fiscal year of the plan.
new text end

new text begin (d) Enrollment in the plan is provided for in:
new text end

new text begin (1) a personnel policy of the public employer;
new text end

new text begin (2) a collective bargaining agreement between the public employer and the exclusive
representative of public employees in an appropriate unit; or
new text end

new text begin (3) an individual employment contract between a city and a city manager.
new text end

new text begin (e) The plan covers employees of a school district, state agency, or other governmental
subdivision. The plan may cover city managers covered by an alternative retirement
arrangement under section 353.028, subdivision 3, paragraph (a) or (b), but must not cover
employees of the Board of Trustees of Minnesota State who are covered by the Higher
Education Supplemental Retirement Plan under chapter 354C.
new text end

new text begin (f) Public funds are contributed to the plan only in an amount that matches employee
contributions on a dollar for dollar basis, but not to exceed the lesser of (1) the maximum
authorized under the policy described in paragraph (d) that provides for the plan or program,
or (2) one-half of the annual limit on elective deferrals under section 402(g) of the federal
Internal Revenue Code.
new text end

new text begin (g) Contributions to the plan may include contributions from an employee's sick leave,
accumulated vacation leave, or accumulated severance pay.
new text end

Sec. 15.

Minnesota Statutes 2018, section 490.121, subdivision 7c, is amended to read:

Subd. 7c.

Dependent surviving child.

"Dependent surviving child" means deleted text begin any deleted text end new text begin an
individual who is an unmarried new text end natural or adopted child of a deceased judge deleted text begin who deleted text end new text begin , new text end has not
reached the age of 18 years deleted text begin , deleted text end or new text begin , new text end having reached the age of 18, is under age 22 and deleted text begin who deleted text end is a
full-time student throughout the normal school year, deleted text begin is unmarried, deleted text end and deleted text begin is deleted text end new text begin was new text end actually
dependent for more than one-half of the child's support upon the judge for a period of at
least 90 days new text begin immediately new text end before the judge's death. It also deleted text begin includes deleted text end new text begin means new text end any natural child
of the judge who was born after the death of the judge new text begin unless a parent-child relationship
does not exist under section 524.2-120, subdivision 10 new text end .

Sec. 16.

Minnesota Statutes 2018, section 490.123, subdivision 5, is amended to read:

Subd. 5.

Direct state aid.

(a) The state shall pay $6,000,000 annually to the judges'
retirement fund. The aid is payable each deleted text begin October deleted text end new text begin July new text end 1. deleted text begin The commissioner of management
and budget shall pay the aid specified in this subdivision. deleted text end The amount required is annually
appropriated from the general fund to the deleted text begin commissioner of management and budget deleted text end new text begin judges'
retirement fund new text end .

(b) The aid under paragraph (a) continues until the earlier of:

(1) the first day of the fiscal year following the fiscal year in which the actuarial value
of assets of the fund equals or exceeds 100 percent of the actuarial accrued liabilities as
reported by the actuary retained under section 356.214 in the annual actuarial valuation
prepared under section 356.215; or

(2) July 1, 2048.

Sec. 17.

Minnesota Statutes 2018, section 490.124, subdivision 1, is amended to read:

Subdivision 1.

Retirement annuity.

(a) Except as qualified hereinafter from and after
the mandatory retirement date, the normal retirement date, the early retirement date, or one
year from the disability retirement date, as the case may be, a retiring judge is eligible to
receive a retirement annuity from the judges' retirement fund.

(b) For a tier I program judge, the retirement annuity is an amount equal to:

(1) 2.7 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered
before July 1, 1980; plus

(2) 3.2 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered after
June 30, 1980.

(c) For a tier II program judge who was first appointed or elected as a judge before July
1, 2013, the retirement annuity is an amount equal to:

(1) 3.2 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered
before January 1, 2014; plus

(2) 2.5 percent multiplied by the judge's final average compensation with that result then
multiplied by the number of years and fractions of years of allowable service rendered after
December 31, 2013.

(d) For a tier II program judge who was first appointed or elected as a judge after June
30, 2013, the retirement annuity is an amount equal to deleted text begin the deleted text end new text begin 2.5 new text end percent deleted text begin specified in section
356.315, subdivision 8a, deleted text end multiplied by the judge's final average compensation with that
result then multiplied by the number of years and fractions of years of allowable service.

(e) For a judge in the tier I program, service that exceeds the service credit limit in section
490.121, subdivision 22, must be excluded in calculating the retirement annuity, but the
compensation earned by the judge during this period of judicial service must be used in
determining a judge's final average compensation and calculating the retirement annuity.

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 356.44, new text end new text begin is repealed.
new text end

Sec. 19. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 18 are effective July 1, 2020.
new text end

APPENDIX

Repealed Minnesota Statutes: 20-7199

356.44 PARTIAL PAYMENT OF PENSION PLAN REFUND.

(a) Notwithstanding any provision of law to the contrary, a member of a pension plan listed in section 356.30, subdivision 3, with at least two years of forfeited service taken from a single pension plan, may repay a portion of all refunds. A partial refund repayment must comply with this section.

(b) The minimum portion of a refund repayment is one-third of the total service credit period of all refunds taken from a single plan.

(c) The cost of the partial refund repayment is the product of the cost of the total repayment multiplied by the ratio of the restored service credit to the total forfeited service credit. The total repayment amount includes interest at the applicable annual rate or rates specified in section 356.59, subdivision 2, 3, 4, or 5, whichever applies, compounded annually, from the refund date to the date repayment is received.

(d) The restored service credit must be allocated based on the relationship the restored service bears to the total service credit period for all refunds taken from a single pension plan.

(e) This section does not authorize a public pension plan member to repay a refund if the law governing the plan does not authorize the repayment of a refund of member contributions.