SF 1445

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; modifying provisions governing 
  1.3             the Duluth teachers retirement fund; allowing service 
  1.4             credit purchases for members collecting workers' 
  1.5             compensation; providing a partial increase for certain 
  1.6             postretirement adjustments; modifying annuity formula 
  1.7             percentages; amending Minnesota Statutes 2000, 
  1.8             sections 354A.011, subdivision 15a; 354A.27, by adding 
  1.9             a subdivision; and 354A.31, subdivisions 4a, 5, 6, and 
  1.10            7; proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 354A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 354A.011, 
  1.14  subdivision 15a, is amended to read: 
  1.15     Subd. 15a.  [NORMAL RETIREMENT AGE.] "Normal retirement 
  1.16  age" means age 65 for a person who first became a member of the 
  1.17  coordinated program of the Minneapolis or St. Paul teachers 
  1.18  retirement fund association or the new law coordinated program 
  1.19  of the Duluth teachers retirement fund association or a member 
  1.20  of a pension fund listed in section 356.30, subdivision 3, 
  1.21  before July 1, 1989 or is a member of the new law coordinated 
  1.22  program of the Duluth teachers retirement fund association.  For 
  1.23  a person who first became a member of the coordinated program of 
  1.24  the Minneapolis or St. Paul teachers retirement fund association 
  1.25  or the new law coordinated program of the Duluth teachers 
  1.26  retirement fund association after June 30, 1989, normal 
  1.27  retirement age means the higher of age 65 or retirement age, as 
  1.28  defined in United States Code, title 42, section 416(l), as 
  2.1   amended, but not to exceed age 66.  For a person who is a member 
  2.2   of the basic program of the Minneapolis or St. Paul teachers 
  2.3   retirement fund association or the old law coordinated program 
  2.4   of the Duluth teachers retirement fund association, normal 
  2.5   retirement age means the age at which a teacher becomes eligible 
  2.6   for a normal retirement annuity computed upon meeting the age 
  2.7   and service requirements specified in the applicable provisions 
  2.8   of the articles of incorporation or bylaws of the respective 
  2.9   teachers retirement fund association. 
  2.10     Sec. 2.  [354A.108] [PAYMENT BY TEACHERS COLLECTING 
  2.11  WORKERS' COMPENSATION.] 
  2.12     A member of the Duluth teachers retirement fund association 
  2.13  receiving temporary workers' compensation payments and a reduced 
  2.14  salary or no salary from the employer is entitled to purchase 
  2.15  allowable service credit for the period of time that the member 
  2.16  is receiving the workers' compensation payments.  The required 
  2.17  amount payable by the member is calculated first by determining 
  2.18  the differential salary amount, which is the difference between 
  2.19  salary received, if any, during the period of time the member is 
  2.20  collecting workers' compensation payments, and the salary the 
  2.21  member received immediately prior to collecting the workers' 
  2.22  compensation payments.  The employee shall pay an amount equal 
  2.23  to the employee contribution rate under section 354A.12, 
  2.24  subdivision 1, multiplied by the differential salary amount.  If 
  2.25  the teacher makes the employee payment pursuant to this section, 
  2.26  the employing unit shall make an employer payment to the Duluth 
  2.27  teachers retirement fund association equal to the employer 
  2.28  contribution rate under section 354A.12, subdivision 2a, 
  2.29  multiplied by the differential salary amount.  Payments made 
  2.30  under this subdivision are payable without interest if paid by 
  2.31  June 30 of the year the workers' compensation payments are 
  2.32  received by the member, or if paid after June 30 must include 
  2.33  interest at the rate of 8.5 percent per year and must be 
  2.34  completed within one year of the termination of the workers' 
  2.35  compensation payments to the member. 
  2.36     Sec. 3.  Minnesota Statutes 2000, section 354A.27, is 
  3.1   amended by adding a subdivision to read: 
  3.2      Subd. 7.  [PARTIAL POSTRETIREMENT ADJUSTMENT.] An annuitant 
  3.3   or benefit recipient who has been receiving an annuity or 
  3.4   benefit for at least one full month, but less than 12 full 
  3.5   months as of the current June 30, is eligible to receive a 
  3.6   partial increase of the total postretirement adjustment 
  3.7   determined in subdivisions 5 and 6.  The board shall determine 
  3.8   those annuitants and benefit recipients who are eligible to 
  3.9   receive a partial postretirement adjustment.  The percentage 
  3.10  increase of the partial postretirement adjustment payable to 
  3.11  each annuitant or benefit recipient eligible for a partial 
  3.12  adjustment shall be calculated by first determining a partial 
  3.13  percentage that bears the same ratio to the full adjustment 
  3.14  percentage determined in subdivisions 5 and 6 as the number of 
  3.15  full months of annuity or benefit receipt as of the current June 
  3.16  30 bears to 12 full months.  The partial percentage determined 
  3.17  shall then be applied to the amount of the monthly annuity or 
  3.18  benefit payable to each annuitant or benefit recipient eligible 
  3.19  to receive a partial postretirement adjustment.  The partial 
  3.20  postretirement increase is payable to all eligible annuitants or 
  3.21  benefit recipients on the following January 1. 
  3.22     Sec. 4.  Minnesota Statutes 2000, section 354A.31, 
  3.23  subdivision 4a, is amended to read: 
  3.24     Subd. 4a.  [COMPUTATION OF THE NORMAL COORDINATED 
  3.25  RETIREMENT ANNUITY; DULUTH FUND.] (a) This subdivision applies 
  3.26  to the new law coordinated program of the Duluth teachers 
  3.27  retirement fund association. 
  3.28     (b) The normal coordinated retirement annuity is an amount 
  3.29  equal to a retiring coordinated member's average salary 
  3.30  multiplied by the retirement annuity formula percentage.  
  3.31  Average salary for purposes of this section means an amount 
  3.32  equal to the average salary upon which contributions were made 
  3.33  for the highest five successive years of service credit, but may 
  3.34  not in any event include any more than the equivalent of 60 
  3.35  monthly salary payments.  Average salary must be based upon all 
  3.36  years of service credit if this service credit is less than five 
  4.1   years. 
  4.2      (c) This paragraph, in conjunction with subdivision 6, 
  4.3   applies to a person who first became a member of the Duluth 
  4.4   teachers retirement fund association or a member in a pension 
  4.5   fund listed in section 356.30, subdivision 3, before July 1, 
  4.6   1989, unless paragraph (d), in conjunction with subdivision 7, 
  4.7   produces a higher annuity amount, in which case paragraph (d) 
  4.8   applies.  The retirement annuity formula percentage for purposes 
  4.9   of this paragraph is the percent specified in section 356.19, 
  4.10  subdivision 1, per year for each year of coordinated service for 
  4.11  the first ten years is 1.3 percent per year for service before 
  4.12  July 1, 2001, and 1.5 percent per year for service on or after 
  4.13  July 1, 2001, and the percent specified in section 356.19, 
  4.14  subdivision 2, for each subsequent year of coordinated service, 
  4.15  1.8 percent per year of service before July 1, 2001, and 2.0 
  4.16  percent per year for service on or after July 1, 2001. 
  4.17     (d) This paragraph applies to a person who is at least 55 
  4.18  years old and who first becomes a member after June 30, 1989, 
  4.19  and to any other member who is at least 55 years old and whose 
  4.20  annuity amount, when calculated under this paragraph and in 
  4.21  conjunction with subdivision 7, is higher than it is when 
  4.22  calculated under paragraph (c) in conjunction with subdivision 
  4.23  6.  The retirement annuity formula percentage for purposes of 
  4.24  this paragraph is the percent specified in section 356.19, 
  4.25  subdivision 2, 1.8 percent for each year of coordinated service 
  4.26  before July 1, 2001, and 2.0 percent for each year of service on 
  4.27  or after July 1, 2001. 
  4.28     Sec. 5.  Minnesota Statutes 2000, section 354A.31, 
  4.29  subdivision 5, is amended to read: 
  4.30     Subd. 5.  [UNREDUCED NORMAL RETIREMENT ANNUITY.] Upon 
  4.31  retirement at normal retirement age with at least three years of 
  4.32  service credit, a coordinated member of the Minneapolis and St. 
  4.33  Paul teacher retirement fund associations shall be entitled to a 
  4.34  normal retirement annuity calculated pursuant to subdivision 4.  
  4.35  Upon retirement at normal retirement age with at least three 
  4.36  years of service credit, a coordinated member of the Duluth 
  5.1   teachers retirement fund association shall be entitled to a 
  5.2   normal retirement annuity calculated pursuant to subdivision 4a. 
  5.3      Sec. 6.  Minnesota Statutes 2000, section 354A.31, 
  5.4   subdivision 6, is amended to read: 
  5.5      Subd. 6.  [REDUCED RETIREMENT ANNUITY.] This subdivision 
  5.6   applies only to a person who first became a coordinated 
  5.7   member of the Minneapolis and St. Paul teacher retirement fund 
  5.8   associations or a member of a pension fund listed in section 
  5.9   356.30, subdivision 3, before July 1, 1989, or a member of the 
  5.10  new law coordinated program of the Duluth teachers retirement 
  5.11  fund association, and whose annuity is higher when calculated 
  5.12  using the retirement annuity formula percentage in subdivision 
  5.13  4, paragraph (b), in conjunction with this subdivision than when 
  5.14  calculated under subdivision 4, paragraph (c), in conjunction 
  5.15  with subdivision 7. 
  5.16     (a) Upon retirement at an age before normal retirement age 
  5.17  with three years of service credit or prior to age 62 with at 
  5.18  least 30 years of service credit, a coordinated member shall be 
  5.19  entitled to a retirement annuity in an amount equal to the 
  5.20  normal retirement annuity calculated using the retirement 
  5.21  annuity formula percentage in subdivision 4, paragraph (b), 
  5.22  reduced by one-quarter of one percent for each month that the 
  5.23  coordinated member is under normal retirement age if the 
  5.24  coordinated member has less than 30 years of service credit or 
  5.25  is under the age of 62 if the coordinated member has at least 30 
  5.26  years of service credit.  
  5.27     (b) Any coordinated member whose attained age plus credited 
  5.28  allowable service totals 90 years is entitled, upon application, 
  5.29  to a retirement annuity in an amount equal to the normal 
  5.30  retirement annuity calculated using the retirement annuity 
  5.31  formula percentage in subdivision 4, paragraph (b), without any 
  5.32  reduction by reason of early retirement. 
  5.33     Sec. 7.  Minnesota Statutes 2000, section 354A.31, 
  5.34  subdivision 7, is amended to read: 
  5.35     Subd. 7.  [ACTUARIAL REDUCTION FOR EARLY RETIREMENT.] This 
  5.36  subdivision applies to a person member who has become at least 
  6.1   55 years old and first becomes a coordinated member of the 
  6.2   Minneapolis and St. Paul teacher retirement fund associations 
  6.3   after June 30, 1989, to a member of the new law coordinated plan 
  6.4   of the Duluth teachers retirement fund association, and to any 
  6.5   other coordinated member who has become at least 55 years old 
  6.6   and whose annuity is higher when calculated using the retirement 
  6.7   annuity formula percentage in subdivision 4, paragraph (c), in 
  6.8   conjunction with this subdivision than when calculated under 
  6.9   subdivision 4, paragraph (b), in conjunction with subdivision 
  6.10  6.  A coordinated member who retires before the full benefit age 
  6.11  shall be paid the retirement annuity calculated using the 
  6.12  retirement annuity formula percentage in subdivision 4, 
  6.13  paragraph (c), reduced so that the reduced annuity is the 
  6.14  actuarial equivalent of the annuity that would be payable to the 
  6.15  member if the member deferred receipt of the annuity and the 
  6.16  annuity amount were augmented at an annual rate of three percent 
  6.17  compounded annually from the day the annuity begins to accrue 
  6.18  until the normal retirement age. 
  6.19     Sec. 8.  [DULUTH OLD PLAN BYLAWS; AUTHORITY GRANTED TO 
  6.20  INCREASE FORMULAS.] 
  6.21     In accordance with Minnesota Statutes, section 354A.12, 
  6.22  subdivision 4, approval is granted for the Duluth teachers 
  6.23  retirement fund association to amend its articles of 
  6.24  incorporation or bylaws by increasing the formula percentage 
  6.25  used in computing annuities for old law coordinated program 
  6.26  members in the Duluth teachers retirement fund association to 
  6.27  1.55 percent for each year of credited service.  
  6.28     Sec. 9.  [EFFECTIVE DATE.] 
  6.29     Sections 1 to 8 are effective May 1, 2001.