SF 1462

as introduced - 88th Legislature (2013 - 2014) Posted on 03/19/2013 09:24am

A bill for an act
relating to retirement; Minnesota State Retirement System, permitting legislators
to transfer to general state employees retirement plan coverage rather than retain
unclassified state employees retirement program coverage; amending Minnesota
Statutes 2012, sections 352.01, subdivision 2a; 352D.02, subdivisions 1, 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:

Subd. 2a.

Included employees.

(a) "State employee" includes:

(1) employees of the Minnesota Historical Society;

(2) employees of the State Horticultural Society;

(3) employees of the Minnesota Crop Improvement Association;

(4) employees of the adjutant general whose salaries are paid from federal funds and
who are not covered by any federal civilian employees retirement system;

(5) employees of the Minnesota State Colleges and Universities who are employed
under the university or college activities program;

(6) currently contributing employees covered by the system who are temporarily
employed by the legislature during a legislative session or any currently contributing
employee employed for any special service as defined in subdivision 2b, clause (8);

(7) employees of the legislature who are appointed without a limit on the duration
of their employment and persons employed or designated by the legislature or by a
legislative committee or commission or other competent authority to conduct a special
inquiry, investigation, examination, or installation;

(8) trainees who are employed on a full-time established training program
performing the duties of the classified position for which they will be eligible to receive
immediate appointment at the completion of the training period;

(9) employees of the Minnesota Safety Council;

(10) any employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who are employed
by the labor organization which is the exclusive bargaining agent representing employees
of the Transit Operating Division;

(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
Control Commission unless excluded under subdivision 2b or are covered by another
public pension fund or plan under section 473.415, subdivision 3;

(12) judges of the Tax Court;

(13) personnel who were employed on June 30, 1992, by the University of
Minnesota in the management, operation, or maintenance of its heating plant facilities,
whose employment transfers to an employer assuming operation of the heating plant
facilities, so long as the person is employed at the University of Minnesota heating plant
by that employer or by its successor organization;

(14) personnel who are employed as seasonal employees in the classified or
unclassified service;

(15) persons who are employed by the Department of Commerce as a peace officer
in the Insurance Fraud Prevention Division under section 45.0135 who have attained the
mandatory retirement age specified in section 43A.34, subdivision 4;

(16) employees of the University of Minnesota unless excluded under subdivision
2b, clause (3);

(17) employees of the Middle Management Association whose employment began
after July 1, 2007, and to whom section 352.029 does not apply;

(18) employees of the Minnesota Government Engineers Council to whom section
352.029 does not apply; deleted text begin and
deleted text end

(19) employees of the Minnesota Sports Facilities Authority deleted text begin . deleted text end new text begin ; and
new text end

new text begin (20) a legislator who elects under section 4 or section 352D.02 to have coverage
under the general state employees retirement plan.
new text end

(b) Employees specified in paragraph (a), clause (13), are included employees under
paragraph (a) if employer and employee contributions are made in a timely manner in the
amounts required by section 352.04. Employee contributions must be deducted from
salary. Employer contributions are the sole obligation of the employer assuming operation
of the University of Minnesota heating plant facilities or any successor organizations to
that employer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 352D.02, subdivision 1, is amended to read:

Subdivision 1.

Coverage.

(a) deleted text begin Employees enumerated deleted text end new text begin Persons specified new text end in paragraph
(c), clauses (2), (3), (4), (6) to (14), and (16) to (18), if they are in the unclassified service
of the state or Metropolitan Council and are eligible for coverage under the general state
employees retirement plan under chapter 352, are participants in the unclassified program
under this chapter unless the employee gives notice to the executive director of the
Minnesota State Retirement System within one year following the deleted text begin commencement deleted text end new text begin start
new text end of employment in the unclassified service that the employee desires coverage under the
general state employees retirement plan. For the purposes of this chapter, an employee
who does not file notice with the executive director is deemed to have exercised the option
to participate in the unclassified program.

(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified
program under this chapter unless the person was eligible to elect different coverage under
section 3A.07 and elected retirement coverage by the applicable alternative retirement
plan new text begin or elected general state employees retirement plan coverage under subdivision 3
or section 4 new text end . Persons referenced in paragraph (c), clause (15), are participants in the
unclassified program under this chapter for judicial employment in excess of the service
credit limit in section 490.121, subdivision 22.

(c) deleted text begin Enumerated deleted text end Employees and referenced persons are:

(1) the governor, the lieutenant governor, the secretary of state, the state auditor,
and the attorney general;

(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary
of State, State Auditor, Attorney General;

(3) an employee of the State Board of Investment;

(4) the head of a department, division, or agency created by statute in the unclassified
service, an acting department head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;

(5) a member of the legislature;

(6) a full-time unclassified employee of the legislature or a commission or agency of
the legislature who is appointed without a limit on the duration of the employment or a
temporary legislative employee having shares in the supplemental retirement fund as a
result of former employment covered by this chapter, whether or not eligible for coverage
under the Minnesota State Retirement System;

(7) a person who is employed in a position established under section 43A.08,
subdivision 1, clause (3), or in a position authorized under a statute creating or establishing
a department or agency of the state, which is at the deputy or assistant head of department
or agency or director level;

(8) the regional administrator, or executive director of the Metropolitan Council,
general counsel, division directors, operations managers, and other positions as designated
by the council, all of which may not exceed 27 positions at the council and the chair;

(9) the executive director, associate executive director, and not to exceed nine
positions of the Minnesota Office of Higher Education in the unclassified service, as
designated by the Minnesota Office of Higher Education before January 1, 1992, or
subsequently redesignated with the approval of the board of directors of the Minnesota
State Retirement System, unless the person has elected coverage by the individual
retirement account plan under chapter 354B;

(10) the clerk of the appellate courts appointed under article VI, section 2, of the
Constitution of the state of Minnesota, the state court administrator and judicial district
administrators;

(11) the chief executive officers of correctional facilities operated by the Department
of Corrections and of hospitals and nursing homes operated by the Department of Human
Services;

(12) an employee whose principal employment is at the state ceremonial house;

(13) an employee of the Agricultural Utilization Research Institute;

(14) an employee of the State Lottery who is covered by the managerial plan
established under section 43A.18, subdivision 3;

(15) a judge who has exceeded the service credit limit in section 490.121,
subdivision 22;

(16) an employee of Enterprise Minnesota, Inc.;

(17) a person employed by the Minnesota State Colleges and Universities as faculty
or in an eligible unclassified administrative position as defined in section 354B.20,
subdivision 6, who was employed by the former state university or the former community
college system before May 1, 1995, and elected unclassified program coverage prior to
May 1, 1995; and

(18) a person employed by the Minnesota State Colleges and Universities who
was employed in state service before July 1, 1995, who subsequently is employed in an
eligible unclassified administrative position as defined in section 354B.20, subdivision
6, and who elects coverage by the unclassified program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 352D.02, subdivision 3, is amended to read:

Subd. 3.

Transfer to general employees retirement plan.

(a) If permitted under
paragraph (b), an employee referred to in subdivision 1, paragraph (c), clauses (2) to (4),
(6) to (14), and (16) to (18), who is credited with shares in the unclassified program and
has credit for allowable service may elect to terminate participation in the unclassified
program and be covered by the general employees retirement plan.

(b) An employee specified in paragraph (a) is permitted to terminate participation
in the unclassified program and be covered by the general employees retirement plan if
the employee:

(1) was employed before July 1, 2010, and has at least ten years of allowable
service; or

(2) was first employed after June 30, 2010, and has no more than seven years of
allowable service.

new text begin (c) A legislator referred to in subdivision 1, paragraph (c), clause (5), who is credited
with no more than seven years of allowable service may elect to terminate participation in
the unclassified program and be covered by the general state employees retirement plan.
new text end

deleted text begin The election deleted text end new text begin (d) Elections under this subdivision new text end must be in writing on a form
provided by the executive director, and can be made no later than one month following
the termination of covered employment.

deleted text begin (c) deleted text end new text begin (e) new text end If the transfer election is made, the executive director shall redeem the
employee's total shares and credit to the employee's account in the general employees
retirement plan the amount of contributions that would have been credited had the
employee been covered by the general employees retirement plan during the employee's
entire covered employment. The balance of money redeemed and not credited to the
employee's account must be transferred to the general employees retirement plan, except
that the executive director must determine:

(1) the employee contributions paid to the unclassified program; and

(2) the employee contributions that would have been paid to the general employees
retirement plan for the comparable period, if the individual had been covered by that plan.

If clause (1) is greater than clause (2), the difference must be refunded to the
employee as provided in section 352.22. If clause (2) is greater than clause (1), the
difference must be paid by the employee within six months of electing general employees
retirement plan coverage or before the effective date of the annuity, whichever is sooner.

deleted text begin (d) deleted text end new text begin (f) new text end An election under deleted text begin paragraph (b) deleted text end new text begin this subdivision new text end to transfer coverage to the
general employees retirement plan is irrevocable during any period of covered employment.

deleted text begin (e) deleted text end new text begin (g) new text end A person referenced in subdivision 1, paragraph (c), clause (1) deleted text begin , (5), deleted text end or
(15), who is credited with employee shares in the unclassified program is not permitted
to terminate participation in the unclassified program and be covered by the general
employees retirement plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 4. new text begin PLAN ELECTION.
new text end

new text begin (a) Notwithstanding the length of service limitation in section 3 regarding legislative
service, any legislator currently serving on July 1, 2013, covered by the unclassified state
employees retirement program for that service, whose length of legislative service exceeds
seven years, may elect the coverage transfer specified in section 3 before July 1, 2015.
new text end

new text begin (b) Authority to elect a coverage transfer under this section expires July 1, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end