SF 1075

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 or of eligibility to retire under the rule 
  1.13  of 90.  "Normal retirement age" means age 65 for a person who 
  1.14  first became a member of a pension fund listed in Minnesota 
  1.15  Statutes, section 356.30, subdivision 3, before July 1, 1989.  
  1.16  For a person who first became a member of a listed fund after 
  1.17  June 30, 1989, normal retirement age means the higher of age 65 
  1.18  or retirement age as defined in United States Code, title 42, 
  1.19  section 416(1), as amended, but not to exceed age 66.  
  1.20  "Eligibility to retire under the rule of 90" means eligibility 
  1.21  to retire under Minnesota Statutes, section 352.116, subdivision 
  1.22  1, paragraph (b); 353.30, subdivision 1a; 354.44, subdivision 6, 
  1.23  clause (3), item (iii); or 354A.31, subdivision 6, paragraph (b).
  1.24     Subd. 3.  [DETERMINATION OF AVERAGE SALARY.] 
  2.1   Notwithstanding any salary and wage rate freeze that may be 
  2.2   imposed by a law enacted during the 2003 legislative session, 
  2.3   for purposes of calculating the retirement annuity of a public 
  2.4   employee covered by this section, the employee's average salary 
  2.5   must be determined as if the employee's actual salary or wage 
  2.6   rate had increased during each year of the freeze by an amount 
  2.7   equal to the average of any increases during the five years 
  2.8   immediately preceding the freeze. 
  2.9      Subd. 4.  [EMPLOYER AND EMPLOYEE CONTRIBUTIONS.] 
  2.10  Notwithstanding any other law to the contrary, employer and 
  2.11  employee contributions to the appropriate pension fund for a 
  2.12  public employee covered by this section for any year of a salary 
  2.13  and wage rate freeze must be based on an amount equal to what 
  2.14  the employee's salary or wage rate in that year would have been 
  2.15  had the salary or wage rate increased over the previous year's 
  2.16  level by an amount equal to the average of any increases during 
  2.17  the five years immediately preceding the freeze. 
  2.18     Sec. 2.  [EFFECTIVE DATE.] 
  2.19     Section 1 is effective the day following final enactment.