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HF 4429

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/29/2024 02:57pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/29/2024

Current Version - as introduced

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A bill for an act
relating to retirement; Public Employees Retirement Association; general employees
retirement plan; local government correctional service retirement plan; modifying
the limitation on disability benefit payments by eliminating an offset for income
received from workers' compensation; eliminating a reporting requirement related
to income received from workers' compensation; amending Minnesota Statutes
2022, sections 353.33, subdivisions 7, 7a; 353E.06, subdivision 6; Minnesota
Statutes 2023 Supplement, section 353.335, subdivision 1; repealing Minnesota
Statutes 2022, section 353.33, subdivision 5; Minnesota Statutes 2023 Supplement,
section 353.335, subdivision 2.

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

Section 1.

Minnesota Statutes 2022, section 353.33, subdivision 7, is amended to read:


Subd. 7.

deleted text begin Partial reemploymentdeleted text end new text begin Limitation on disability benefit paymentsnew text end .

new text begin (a) new text end If,
following a work or non-work-related injury or illness, a deleted text begin disabled persondeleted text end new text begin member new text end who
remains totally and permanently disabled as defined in section 353.01, subdivision 19, has
deleted text begin incomedeleted text end new text begin earnings new text end from employment that is not substantial gainful activity deleted text begin and the rate of
earnings from that employment are less than
deleted text end new text begin , the amount of the member's disability benefit
must be reduced as described in paragraph (b) if the total of the disability benefit and earnings
exceeds the greater of:
new text end

new text begin (1)new text end the new text begin base monthly new text end salary rate new text begin the member had been receiving new text end at the date of disabilitynew text begin ;new text end
or

new text begin (2)new text end the new text begin base monthly new text end salary rate currently paid new text begin by the employing governmental subdivision
new text end for new text begin similar new text end positions deleted text begin similar to the employment position held by the disabled person
immediately before becoming disabled, whichever is greater, the executive director shall
continue
deleted text end new text begin .
new text end

new text begin (b) If paragraph (a) applies,new text end the new text begin member's new text end disability benefit deleted text begin in an amount that, when
added to the earnings and any workers' compensation benefit, does
deleted text end new text begin must be reduced until
the disability benefit plus the monthly earnings from employment do
new text end not exceed the deleted text begin salary
rate at the date of disability or the salary currently paid for positions similar to the
employment position held by the disabled person immediately before becoming disabled,
whichever is higher
deleted text end new text begin greater of the salaries described in paragraph (a), clause (1) or (2)new text end .

deleted text begin The disability benefit under this subdivision may not exceed the disability benefit
originally allowed, plus any postretirement adjustments payable after December 31, 1988,
in accordance with Minnesota Statutes 2008, section 11A.18, subdivision 10, or Minnesota
Statutes 2008, section 356.41, through January 1, 2009, and thereafter as provided in section
356.415. No deductions for the retirement fund may be taken from the salary of a disabled
person who is receiving a disability benefit as provided in this subdivision.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 353.33, subdivision 7a, is amended to read:


Subd. 7a.

Trial work period.

(a) This subdivision applies only to the Public Employees
Retirement Association general employees retirement plan.

(b) If, following a work or non-work-related injury or illness, a deleted text begin disableddeleted text end member new text begin receiving
disability benefits
new text end attempts to return to work for deleted text begin theirdeleted text end new text begin the member's new text end previous public employer
or attempts to return to a similar position with another public employer, on a full-time or
less than full-time basis, the deleted text begin Public Employees Retirementdeleted text end association deleted text begin shalldeleted text end new text begin must new text end continue
paying the disability benefit for a period not to exceed six months. The disability benefit
must continue in an amount that, when added to the subsequent employment earnings deleted text begin and
workers' compensation benefit
deleted text end , does not exceed the new text begin base monthly new text end salary new text begin the member had
been receiving
new text end at the date of disability or the new text begin base monthly new text end salary new text begin rate new text end currently paid for
similar positions, whichever is higher.

(c) No deductions for the general employees retirement plan may be taken from the
salary of a disabled person who is attempting to return to work under this provision unless
the member waives further disability benefits.

(d) A member only may return to employment and continue disability benefit payments
once while receiving disability benefits from the general employees retirement plandeleted text begin
administered by the Public Employees Retirement Association
deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 353.335, subdivision 1, is amended
to read:


Subdivision 1.

Reemployment earnings reporting required.

Unless waived by the
executive director, a disability benefit recipient must report all earnings from reemployment
deleted text begin and from income from workers' compensationdeleted text end to the association annually by May 15 in a
format prescribed by the executive director. If the form is not submitted by May 15, benefits
must be suspended effective June 1. If, upon receipt of the form, the executive director
determines that the disability benefit recipient is eligible for continued payment, benefits
must be reinstated retroactive to June 1. The executive director may waive the requirements
in this section if the medical evidence supports that the disability benefit recipient will not
have earnings from reemployment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2022, section 353E.06, subdivision 6, is amended to read:


Subd. 6.

deleted text begin Resumption of employmentdeleted text end new text begin Limitation on disability benefit paymentsnew text end .

new text begin (a)
new text end If a deleted text begin disabled employeedeleted text end new text begin member receiving disability benefits new text end resumes a gainful occupation
deleted text begin from whichdeleted text end new text begin with new text end earnings deleted text begin are less thandeleted text end new text begin , the amount of the member's disability benefit must
be reduced as described in paragraph (b) if the total of the disability benefit and earnings
exceeds the greater of:
new text end

new text begin (1)new text end the new text begin base new text end monthly salary deleted text begin receiveddeleted text end new text begin rate the member had been receiving new text end at the date of
disabilitynew text begin ;new text end or

new text begin (2)new text end the new text begin base new text end monthly salary new text begin rate new text end currently paid new text begin by the employing governmental subdivision
new text end for similar positionsdeleted text begin , or should the employee be entitled to receive workers' compensation
benefits,
deleted text end new text begin .
new text end

new text begin (b) If paragraph (a) applies,new text end the new text begin member's new text end disability benefit must be deleted text begin continued in an
amount that, when added to such earnings during the months of employment, and workers'
compensation benefits, if applicable, does
deleted text end new text begin reduced until the disability benefit plus the
monthly earnings from employment do
new text end not exceed the deleted text begin monthly salary received at the date
of disability or the monthly salary currently payable for the same employment position or
an employment position substantially similar to the one the person held as of the date of
the disability, whichever is
deleted text end greaternew text begin of the salaries described in paragraph (a), clause (1) or
(2)
new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 353.33, subdivision 5, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 353.335, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 24-07369

353.33 TOTAL AND PERMANENT DISABILITY BENEFITS.

Subd. 5.

Benefits paid under workers' compensation law.

(a) Disability benefits paid shall be coordinated with any amounts, other than those amounts excluded under paragraph (b), received or receivable under workers' compensation law in either periodic or lump-sum payments from the employer under applicable workers' compensation laws, after deduction of amount of attorney fees, authorized under applicable workers' compensation laws, paid by a disabilitant. If the total of the single life annuity actuarial equivalent disability benefit and the workers' compensation benefit exceeds: (1) the salary the disabled member received as of the date of the disability or (2) the salary currently payable for the same employment position or an employment position substantially similar to the one the person held as of the date of the disability, whichever is greater, the disability benefit must be reduced to that amount which, when added to the workers' compensation benefits, does not exceed the greater of the salaries described in clauses (1) and (2).

(b) Permanent partial disability payments provided for in section 176.101, subdivision 2a, and retraining payments provided for in section 176.102, subdivision 11, must not be offset from disability payments due under paragraph (a) if the amounts of the permanent partial or retraining payments are reported to the executive director in a manner specified by the executive director.

353.335 DISABILITANT EARNINGS REPORTS.

Subd. 2.

Workers' compensation reporting not required.

Notwithstanding subdivision 1, a recipient of disability benefits from the police and fire plan must not be required to report to the association any workers' compensation received by the recipient.