SF 710

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; determining average salary for 
  1.3             certain public employees. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [AVERAGE SALARY.] 
  1.6      Subdivision 1.  [DEFINITION.] For purposes of this section, 
  1.7   "average salary" means the average of the highest five 
  1.8   successive years of salary upon which an employee has made 
  1.9   contributions to a Minnesota public pension fund. 
  1.10     Subd. 2.  [APPLICATION.] This section applies to a public 
  1.11  employee who is within five years or less of the employee's 
  1.12  normal retirement age.  "Normal retirement age" means age 65 for 
  1.13  a person who first became a member of a pension fund listed in 
  1.14  Minnesota Statutes, section 356.30, subdivision 3, before July 
  1.15  1, 1989.  For a person who first became a member of a listed 
  1.16  fund after June 30, 1989, normal retirement age means the higher 
  1.17  of age 65 or retirement age as defined in United States Code, 
  1.18  title 42, section 416(1), as amended, but not to exceed age 66. 
  1.19     Subd. 3.  [DETERMINATION OF AVERAGE 
  1.20  SALARY.] Notwithstanding any salary and wage rate freeze that 
  1.21  may be imposed by a law enacted during the 2003 legislative 
  1.22  session, for purposes of calculating the retirement annuity of a 
  1.23  public employee covered by this section, the employee's average 
  1.24  salary must be determined as if the employee's actual salary or 
  2.1   wage rate had increased during each year of the freeze by an 
  2.2   amount equal to the average of any increases during the five 
  2.3   years immediately preceding the freeze. 
  2.4      Sec. 2.  [EFFECTIVE DATE.] 
  2.5      Section 1 is effective the day following final enactment.