stricken = removed, old language. underscored = added, new language.
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relating to public pensions; imposing an insurance surcharge; modifying pension
aids; providing pension funding;amending Minnesota Statutes 2012, section
69.021, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 297I.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2012, section 69.021, is amended by adding a
subdivision to read:
1.9 Subd. 12. Surcharge aid accounts. (a) A surcharge fire pension aid account is
1.10established in the general fund to receive amounts as provided under section 297I.07,
1.11subdivision 3, clause (1). The commissioner shall administer the account and allocate
1.12money in the account as follows:
1.13(1) 17.342 percent as supplemental state pension funding paid to the executive
1.14director of the Public Employees Retirement Association for deposit in the public
1.15employees police and fire retirement fund established by section 353.65, subdivision 1;
1.16(2) 8.658 percent to municipalities employing firefighters with retirement coverage
1.17by the public employees police and fire retirement plan, allocated in proportion to
1.18the relationship that the preceding June 30 number of firefighters employed by each
1.19municipality who have public employees police and fire retirement plan coverage bears
1.20to the total preceding June 30 number of municipal firefighters covered by the public
1.21employees police and fire retirement plan; and
1.22(3) 74 percent for municipalities other than the municipalities receiving a
1.23disbursement under clause (2) which qualified to receive fire state aid in that calendar year,
1.24allocated in proportion to the most recent amount of fire state aid paid under subdivision 7
1.25for the municipality bears to the most recent total fire state aid for all municipalities other
2.1than the municipalities receiving a disbursement under clause (2) paid under subdivision
2.27, with the allocated amount for fire departments participating in the voluntary statewide
2.3lump-sum volunteer firefighter retirement plan paid to the executive director of the Public
2.4Employees Retirement Association for deposit in the fund established by section 353G.02,
2.5subdivision 3, and credited to the respective account and with the balance paid to the
2.6treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of
2.7the applicable volunteer firefighter relief association for deposit in its special fund.
2.8(b) A surcharge police pension aid account is established in the general fund
2.9to receive amounts as provided by section 297I.07, subdivision 3, clause (2). The
2.10commissioner shall administer the account and allocate money in the account as follows:
2.11(1) one-third to be distributed as police state aid as provided under subdivision 7a; and
2.12(2) two-thirds to be apportioned, on the basis of the number of active police officers
2.13certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:
2.14(i) the executive director of the Public Employees Retirement Association for
2.15deposit as a supplemental state pension funding aid in the public employees police and fire
2.16retirement fund established by section 353.65, subdivision 1; and
2.17(ii) the executive director of the Minnesota State Retirement System for deposit as a
2.18supplemental state pension funding aid in the state patrol retirement fund.
2.19(c) On or before September 1, annually, the executive director of the Public
2.20Employees Retirement Association shall report to the commissioner the following:
2.21(1) the municipalities which employ firefighters with retirement coverage by the
2.22public employees police and fire retirement plan;
2.23(2) the number of firefighters with public employees police and fire retirement plan
2.24employed by each municipality;
2.25(3) the fire departments covered by the voluntary statewide lump-sum volunteer
2.26firefighter retirement plan; and
2.27(4) any other information requested by the commissioner to administer the surcharge
2.28fire pension aid account.
2.29(d) For this subdivision, (i) the number of firefighters employed by a municipality
2.30who have public employees police and fire retirement plan coverage means the number
2.31of firefighters with public employees police and fire retirement plan coverage that were
2.32employed by the municipality for not less than 30 hours per week for a minimum of six
2.33months prior to December 31 preceding the date of the payment under this section and, if
2.34the person was employed for less than the full year, prorated to the number of full months
2.35employed; and, (ii) the number of active police officers certified for police state aid receipt
2.36under section 69.011, subdivisions 2 and 2b means, for each municipality, the number of
3.1police officers meeting the definition of peace officer in section 69.011, subdivision 1,
3.2counted as provided and limited by section 69.011, subdivisions 2 and 2b.
3.3(e) The payments under this section shall be made on October 1 each year, based
3.4on the amount in the surcharge fire pension aid account and the amount in the surcharge
3.5police pension aid account on the preceding June 30, with interest at 1 percent for each
3.6month, or portion of a month, that the amount remains unpaid after October 1. The
3.7amounts necessary to make the payments under this subdivision are annually appropriated
3.8to the commissioner from the surcharge fire and police pension aid accounts. Any
3.9necessary adjustments shall be made to subsequent payments.
3.10(f) The provisions of this chapter that prevent municipalities and relief associations
3.11from being eligible for, or receiving state aid under this chapter until the applicable
3.12financial reporting requirements have been complied with, apply to the amounts payable
3.13to municipalities and relief associations under this subdivision.
3.14EFFECTIVE DATE.This section is effective beginning in the fiscal year beginning
3.15July 1, 2013.
Sec. 2. [297I.07] SURCHARGE ON HOMEOWNERS AND AUTO POLICIES.
3.17 Subdivision 1. Surcharge on policies. (a) Each licensed insurer engaged in writing
3.18insurance shall collect a surcharge equal to $5 per calendar year for each policy issued
3.19or renewed during that calendar year for:
3.20(1) homeowners insurance authorized in section 60A.06, subdivision 1, clause
3.22(2) automobile insurance as defined in section 65B.14, subdivision 2.
3.23(b) The surcharge amount collected under this subdivision must not be considered
3.24premium for any other purpose. The surcharge amount must be separately stated on either a
3.25billing or policy declaration or document containing similar information sent to an insured.
3.26 Subd. 2. Collection and administration. The commissioner shall administer the
3.27surcharge imposed by this section in the same manner as the taxes imposed by this chapter.
3.28 Subd. 3. Deposit of revenues. The commissioner shall deposit revenues from the
3.29surcharge under this section as follows:
3.30(1) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
3.31(1), in a surcharge fire pension aid account in the general fund; and
3.32(2) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
3.33(2), in a surcharge police pension aid account in the general fund.
3.34 Subd. 4. Surcharge termination. The surcharge imposed under subdivision
3.351 ends on the December 31 next following the actuarial valuation date on which the
4.1assets of the retirement plan on a market value equals or exceeds 90 percent of the total
4.2actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation
4.3prepared under section 356.215 and the Standards for Actuarial Work promulgated by the
4.4Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan
4.5or the public employees police and fire retirement plan, whichever occurs last.
4.6EFFECTIVE DATE.This section is effective for policies issued after June 30, 2013.