SF 1379

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state retirement 
  1.3             system and state patrol retirement fund; increasing 
  1.4             contribution rates; modifying the definition of 
  1.5             "average salary"; amending Minnesota Statutes 2000, 
  1.6             sections 352.04, subdivisions 2 and 3; 352.115, 
  1.7             subdivision 2; 352.92, subdivisions 1 and 2; 352.93, 
  1.8             subdivision 1; and 352B.01, subdivision 11. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 352.04, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [EMPLOYEE CONTRIBUTIONS.] The employee 
  1.13  contribution to the fund must be equal to 4.0 4.45 percent of 
  1.14  salary.  These contributions must be made by deduction from 
  1.15  salary as provided in subdivision 4. 
  1.16     Sec. 2.  Minnesota Statutes 2000, section 352.04, 
  1.17  subdivision 3, is amended to read: 
  1.18     Subd. 3.  [EMPLOYER CONTRIBUTIONS.] The employer 
  1.19  contribution to the fund must be equal to 4.0 4.45 percent of 
  1.20  salary. 
  1.21     Sec. 3.  Minnesota Statutes 2000, section 352.115, 
  1.22  subdivision 2, is amended to read: 
  1.23     Subd. 2.  [AVERAGE SALARY.] The retirement annuity 
  1.24  hereunder payable at normal retirement age or thereafter must be 
  1.25  computed in accordance with the applicable provisions of the 
  1.26  formula stated in subdivision 3, on the basis of the employee's 
  1.27  average salary for the period of allowable service.  This 
  2.1   retirement annuity is known as the "normal" retirement annuity.  
  2.2      For each year of allowable service, "average salary" of an 
  2.3   employee in determining a retirement annuity means the average 
  2.4   of the highest five three successive years of salary upon which 
  2.5   the employee has made contributions to the retirement fund by 
  2.6   payroll deductions.  Average salary must be based upon all 
  2.7   allowable service if this service is less than five three years. 
  2.8      "Average salary" does not include the payment of accrued 
  2.9   unused annual leave or overtime paid at time of final separation 
  2.10  from state service if paid in a lump sum nor does it include the 
  2.11  reduced salary, if any, paid during the period the employee is 
  2.12  entitled to workers' compensation benefit payments for temporary 
  2.13  disability. 
  2.14     Sec. 4.  Minnesota Statutes 2000, section 352.92, 
  2.15  subdivision 1, is amended to read: 
  2.16     Subdivision 1.  [EMPLOYEE CONTRIBUTIONS.] Employee 
  2.17  contributions of covered correctional employees must be in an 
  2.18  amount equal to 5.69 6.34 percent of salary.  
  2.19     Sec. 5.  Minnesota Statutes 2000, section 352.92, 
  2.20  subdivision 2, is amended to read: 
  2.21     Subd. 2.  [EMPLOYER CONTRIBUTIONS.] The employer shall 
  2.22  contribute for covered correctional employees an amount equal to 
  2.23  7.98 8.63 percent of salary. 
  2.24     Sec. 6.  Minnesota Statutes 2000, section 352.93, 
  2.25  subdivision 1, is amended to read: 
  2.26     Subdivision 1.  [BASIS OF ANNUITY; WHEN TO APPLY.] After 
  2.27  separation from state service, an employee covered under section 
  2.28  352.91 who has reached age 55 years and has credit for at least 
  2.29  three years of covered correctional service and regular 
  2.30  Minnesota state retirement system service is entitled upon 
  2.31  application to a retirement annuity under this section based 
  2.32  only on covered correctional employees' service.  Application 
  2.33  may be made no earlier than 60 days before the date the employee 
  2.34  is eligible to retire by reason of both age and service 
  2.35  requirements.  
  2.36     In this section, "average salary" means the average of the 
  3.1   monthly salary during the employee's highest five three 
  3.2   successive years of salary as an employee covered by the 
  3.3   Minnesota state retirement system.  Average salary must be based 
  3.4   upon all allowable service if this service is less than five 
  3.5   three years. 
  3.6      Sec. 7.  Minnesota Statutes 2000, section 352B.01, 
  3.7   subdivision 11, is amended to read: 
  3.8      Subd. 11.  [AVERAGE MONTHLY SALARY.] "Average monthly 
  3.9   salary" means the average of the highest monthly salaries for 
  3.10  five three years of service as a member.  Average monthly salary 
  3.11  must be based upon all allowable service if this service is less 
  3.12  than five three years.  It does not include any amounts of 
  3.13  severance pay or any reduced salary paid during the period the 
  3.14  person is entitled to workers' compensation benefit payments for 
  3.15  temporary disability.  A member on leave of absence receiving 
  3.16  temporary workers' compensation payments and a reduced salary or 
  3.17  no salary from the employer who is entitled to allowable service 
  3.18  credit for the period of absence may make payment to the fund 
  3.19  for the difference between salary received, if any, and the 
  3.20  salary the member would normally receive if not on leave of 
  3.21  absence during the period.  The member shall pay an amount equal 
  3.22  to the member and employer contribution rate under section 
  3.23  352B.02, subdivisions 1b and 1c, on the differential salary 
  3.24  amount for the period of the leave of absence.  The employing 
  3.25  department, at its option, may pay the employer amount on behalf 
  3.26  of the member.  Payment made under this subdivision must include 
  3.27  interest at the rate of 8.5 percent per year, and must be 
  3.28  completed within one year of the return from the leave of 
  3.29  absence. 
  3.30     Sec. 8.  [EFFECTIVE DATE.] 
  3.31     Sections 1 to 7 are effective July 1, 2001.