as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; modifying public employees 1.3 retirement association provisions; amending Minnesota 1.4 Statutes 1998, sections 353.01, subdivisions 2, 2a, 1.5 2b, 7, 10, 11a, 11b, 12, 32, and by adding 1.6 subdivisions; 353.27, subdivisions 4, 10, 11, and 12; 1.7 and 353.64, subdivisions 1 and 2; repealing Minnesota 1.8 Statutes 1998, section 353.64, subdivision 3. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 1998, section 353.01, 1.11 subdivision 2, is amended to read: 1.12 Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an 1.13 employee performing personal services for a governmental 1.14 subdivision under subdivision 6, whose salary is paid, in whole 1.15 or in part, from revenue derived from taxation, fees, 1.16 assessments, or from other sources. The termalsoincludes 1.17specialclasses of persons listed in subdivision 2a,but1.18 excludesspecialclasses of persons listed in subdivision 2b, 1.19 and may include classes of persons listed in subdivision 2d for 1.20 purposes of membership in the association. Public employee does 1.21 not include independent contractors and their employees. 1.22 Sec. 2. Minnesota Statutes 1998, section 353.01, 1.23 subdivision 2a, is amended to read: 1.24 Subd. 2a. [INCLUDED EMPLOYEES.] Public employeeswhose1.25salary fromfilling positions with one governmental subdivision 1.26exceeds $425 in any month shallthat are reasonably expected to 1.27 receive or have received compensation for hours at the minimum 2.1 levels as defined in this subdivision must participate as 2.2 members of the association unless the provisions of paragraph (5) 2.3 apply.If the salary of an employee is less than $425 in a2.4subsequent month, the employee retains membership eligibility.2.5The followingEmployees who are members retain their membership 2.6 even if during their employment with a governmental subdivision 2.7 their total number of compensated hours in a business year as 2.8 defined under subdivision 39, fall below the minimum thresholds 2.9 defined in this subdivision. Paragraphs (1) to (9) shall apply 2.10 when determining the membership eligibility of persons who are 2.11 considered public employees:. 2.12 (1)employees whose annual salary from one governmental2.13subdivision exceeds a stipulation prepared in advance, in2.14writing, to be not more than $5,100 per calendar year or per2.15school year for school employees for employment expected to be2.16of a full year's duration or more than the prorated portion of2.17$5,100 per employment period expected to be of less than a full2.18year's duration. If compensation from one governmental2.19subdivision to an employee under this clause exceeds $5,100 per2.20calendar year or school year after being stipulated in advance2.21not to exceed that amount, the stipulation is no longer valid2.22and contributions must be made on behalf of the employee under2.23section 353.27, subdivision 12, from the month in which the2.24employee's salary first exceeded $425;A governmental 2.25 subdivision that is not a school district must, when 2.26 establishing or filling an employment position, determine if the 2.27 position is likely to receive compensation for 975 hours or more 2.28 in a business year. If expected to do so, the employee in the 2.29 position must begin participation as a member of the association 2.30 immediately upon appointment. 2.31 (2)employees whose total salary from concurrent2.32nontemporary positions in one governmental subdivision exceeds2.33$425 in any month;A governmental subdivision that is a school 2.34 district must, when establishing or filling an employment 2.35 position, determine if the position is likely to receive 2.36 compensation for 720 hours or more in a business year. If 3.1 expected to do so, the employee in the position must begin 3.2 participation as a member of the association immediately upon 3.3 appointment. 3.4 (3)elected officers for service to which they were elected3.5by the public-at-large, or persons appointed to fill a vacancy3.6in an elective office, who elect to participate by filing an3.7application for membership, but not for service on a joint or3.8regional board that is a governmental subdivision under3.9subdivision 6, paragraph (a), unless the salary earned for that3.10service exceeds $425 in any month. The option to become a3.11member, once exercised, may not be withdrawn during the3.12incumbency of the person in office;A governmental subdivision 3.13 that has determined that an employment position is not expected 3.14 to meet the eligibility thresholds in this subdivision must 3.15 monitor the number of hours that have been compensated for the 3.16 position. In monitoring the number of hours compensated for the 3.17 position, the governmental subdivision must maintain records 3.18 documenting the number of compensated hours from the point the 3.19 position was filled through the end of each business year. When 3.20 the number of compensated hours meets or exceeds the applicable 3.21 threshold defined in this subdivision, the governmental 3.22 subdivision must enroll the employee holding the position as a 3.23 member of the association beginning with the first full pay 3.24 period following the period in which the threshold was met. 3.25 (4)members who are appointed by the governor to be a state3.26department head and elect not to be covered by the Minnesota3.27state retirement system under section 352.021;When a public 3.28 employee is hired for, or holds, more than one position for a 3.29 single governmental subdivision, that governmental subdivision 3.30 must determine the employee's eligibility for membership in the 3.31 association by combining the total number of hours the employee 3.32 has been or is reasonably expected to be compensated for in 3.33 eligible positions the employee holds with the employing 3.34 governmental subdivision. The employee shall be enrolled as a 3.35 member of the association immediately upon appointment as 3.36 specified in paragraphs (1) and (2), unless paragraph (3) 4.1 applies. 4.2 (5)employees of elected officers;Any employee who is or 4.3 becomes a member of the association after July 1, 1999, shall 4.4 continue to participate in the association when the employee 4.5 receives compensation in the same position with the same 4.6 governmental subdivision unless: 4.7 (i) the employment relationship ceases for 12 or more 4.8 consecutive calendar months due to termination or layoff; or 4.9 (ii) the employee is receiving an annuity under section 4.10 353.30 or disability benefit under section 353.33. 4.11 (6) Persons whoelectelected to remain members under 4.12 section 480.181, subdivision 2;, are considered public employees. 4.13 (7)employees of a school district who receive separate4.14salaries for driving their own buses;Notwithstanding the 4.15 requirements for participation as a member of the public 4.16 employees retirement association as outlined in this 4.17 subdivision, a public employee who qualified for membership and 4.18 was a member of one of the association's defined benefit plans 4.19 as of June 30, 1999, retains that membership until the 4.20 individual terminates public employment or membership as 4.21 specified in subdivisions 11a and 11b. 4.22 (8)employees of the Minnesota association of townships4.23when the board of the association, at its option, certifies to4.24the executive director that its employees are to be included for4.25purposes of retirement coverage, in which case coverage of all4.26employees of the association is permanent;4.27(9) employees of a county historical society who are county4.28employees;4.29(10) employees of a county historical society located in4.30the county whom the county, at its option, certifies to the4.31executive director to be county employees for purposes of4.32retirement coverage under this chapter, which status must be4.33accorded to all similarly situated county historical society4.34employees and, once established, must continue as long as a4.35person is an employee of the county historical society and is4.36not excluded under subdivision 2b; and5.1(11)Employees who became members before July 1, 1988, 5.2 based on the total salary of positions held in more than one 5.3 governmental subdivision.retain membership if they were members 5.4 on June 30, 1999. 5.5 (9) Elected officials who serve on a joint or regional 5.6 board that is a governmental subdivision under subdivision 6, 5.7 paragraph (a), and who are not directly elected to their 5.8 positions on the regional or joint board by voters in the 5.9 political subdivisions covered by the region, are deemed public 5.10 employees as defined under subdivision 2 and must become members 5.11 of the association when they meet the qualifications in this 5.12 subdivision. 5.13 Sec. 3. Minnesota Statutes 1998, section 353.01, 5.14 subdivision 2b, is amended to read: 5.15 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 5.16 employees shall not participate as members of the association 5.17 with retirement coverage by the public employees retirement plan 5.18 or the public employees police and fire retirement 5.19 plan regardless of the number of hours for which they are 5.20 compensated in a business year: 5.21 (1)elected public officers, or persons appointed to fill a5.22vacancy in an elective office, who do not elect to participate5.23in the association by filing an application for membership;5.24(2)election officers or election judges; 5.25(3)(2) patient and inmate personnel who perform services 5.26 in charitable, penal, or correctional institutions of a 5.27 governmental subdivision; 5.28(4) employees who are hired for a temporary position under5.29subdivision 12a, and employees who resign from a nontemporary5.30position and accept a temporary position within 30 days in the5.31same governmental subdivision, but not those employees who are5.32hired for an unlimited period but are serving a probationary5.33period. If the period of employment extends beyond six5.34consecutive months and the employee earns more than $425 from5.35one governmental subdivision in any one calendar month, the5.36department head shall report the employee for membership and6.1require employee deductions be made on behalf of the employee6.2under section 353.27, subdivision 4.6.3Membership eligibility of an employee who resigns or is6.4dismissed from a temporary position and within 30 days accepts6.5another temporary position in the same governmental subdivision6.6is determined on the total length of employment rather than on6.7each separate position. Membership eligibility of an employee6.8who holds concurrent temporary and nontemporary positions in one6.9governmental subdivision is determined by the length of6.10employment and salary of each separate position;6.11(5) employees whose actual salary from one governmental6.12subdivision does not exceed $425 per month, or whose annual6.13salary from one governmental subdivision does not exceed a6.14stipulation prepared in advance, in writing, that the salary6.15must not exceed $5,100 per calendar year or per school year for6.16school employees for employment expected to be of a full year's6.17duration or more than the prorated portion of $5,100 per6.18employment period for employment expected to be of less than a6.19full year's duration;6.20(6)(3) employees who are employed by reason of work 6.21 emergency caused by fire, flood, storm, or similar disaster; 6.22(7)(4) employees who by virtue of their employment in one 6.23 governmental subdivision are required by law to be a member of 6.24 and to contribute to any of the plans or funds administered by 6.25 the Minnesota state retirement system, the teachers retirement 6.26 association, the Duluth teachers retirement fund association, 6.27 the Minneapolis teachers retirement association, the St. Paul 6.28 teachers retirement fund association, the Minneapolis employees 6.29 retirement fund, or any police or firefighters relief 6.30 association governed by section 69.77 that has not consolidated 6.31 with the public employees retirement association, or any police 6.32 or firefighters relief association that has consolidated with 6.33 the public employees retirement association but whose members 6.34 have not elected the type of benefit coverage provided by the 6.35 public employees police and fire fund under sections 353A.01 to 6.36 353A.10. This clause must not be construed to prevent a person 7.1 from being a member of and contributing to the public employees 7.2 retirement association and also belonging to and contributing to 7.3 another public pension fund for other service occurring during 7.4 the same period of time. A person who meets the definition of 7.5 "public employee" in subdivision 2 by virtue of other service 7.6 occurring during the same period of time becomes a member of the 7.7 association unless contributions are made to another public 7.8 retirement fund on the salary based on the other service or to 7.9 the teachers retirement association by a teacher as defined in 7.10 section 354.05, subdivision 2; 7.11(8)(5) persons who are excluded from coverage under the 7.12 federal Old Age, Survivors, Disability, and Health Insurance 7.13 Program for the performance of service as specified in United 7.14 States Code, title 42, section 410(a)(8)(A), as amended through 7.15 January 1, 1987, if no irrevocable election of coverage has been 7.16 made under section 3121(r) of the Internal Revenue Code of 1954, 7.17 as amended; 7.18(9) full-time students who are enrolled and are regularly7.19attending classes at an accredited school, college, or7.20university and who are part-time employees as defined by a7.21governmental subdivision;7.22(10)(6) resident physicians, medical interns, and 7.23 pharmacist residents and pharmacist interns who are serving in a 7.24 degree or residency program in public hospitals; 7.25(11)(7) students who are serving in an internship or 7.26 residency program sponsored by an accredited educational 7.27 institution; 7.28(12)(8) persons who hold a part-time adult supplementary 7.29 technical college license who render part-time teaching service 7.30 in a technical college; 7.31(13)(9) foreign citizens working for a governmental 7.32 subdivision with a work permit of less than three years, or an 7.33 H-1b visa valid for less than three years of employment. Upon 7.34 notice to the association that the work permit or visa extends 7.35 beyond the three-year period, the foreign citizens are eligible 7.36 for membership from the date of the extension; 8.1(14)(10) public hospital employees who elected not to 8.2 participate as members of the association before 1972 and who 8.3 did not elect to participate from July 1, 1988, to October 1, 8.4 1988; 8.5(15)(11) except as provided in section 353.86, volunteer 8.6 ambulance service personnel, as defined in subdivision 35, but 8.7 persons who serve as volunteer ambulance service personnel may 8.8 still qualify as public employees under subdivision 2 and may be 8.9 members of the public employees retirement association and 8.10 participants in the public employees retirement fund or the 8.11 public employees police and fire fund on the basis of 8.12 compensation received from public employment service other than 8.13 service as volunteer ambulance service personnel; 8.14(16)(12) except as provided in section 353.87, volunteer 8.15 firefighters, as defined in subdivision 36, engaging in 8.16 activities undertaken as part of volunteer firefighter duties; 8.17 provided that a person who is a volunteer firefighter may still 8.18 qualify as a public employee under subdivision 2 and may be a 8.19 member of the public employees retirement association and a 8.20 participant in the public employees retirement fund or the 8.21 public employees police and fire fund on the basis of 8.22 compensation received from public employment activities other 8.23 than those as a volunteer firefighter; and 8.24(17)(13) pipefitters and associated trades personnel 8.25 employed by independent school district No. 625, St. Paul, with 8.26 coverage by the pipefitters local 455 pension plan under a 8.27 collective bargaining agreement who were either first employed 8.28 after May 1, 1997, or, if first employed before May 2, 1997, 8.29 elected to be excluded under Laws 1997, chapter 241, article 2, 8.30 section 12. 8.31 Sec. 4. Minnesota Statutes 1998, section 353.01, is 8.32 amended by adding a subdivision to read: 8.33 Subd. 2d. [OPTIONAL MEMBERSHIP.] The classes of public 8.34 employees in this section may become members of the association 8.35 under the conditions specified: 8.36 (1) elected officers for service to which they were elected 9.1 by the public-at-large, or persons appointed to fill a vacancy 9.2 in an elective office, who elect to participate by filing a 9.3 written election for membership. To be eligible to participate 9.4 as members of the association, elected officers must meet the 9.5 conditions in subdivision 2a. The option to become a member, 9.6 once exercised, may not be withdrawn during the incumbency of 9.7 the person in office; 9.8 (2) employees of a county historical society located in the 9.9 county whom the county, at its option, certifies to the 9.10 executive director to be county employees for purposes of 9.11 retirement coverage under this chapter, which status must be 9.12 accorded to all similarly situated county historical society 9.13 employees and, once established, must continue as long as a 9.14 person is an employee of the county historical society and is 9.15 not excluded under subdivision 2b; 9.16 (3) city managers as defined in section 353.028, 9.17 subdivision 1, who do not elect to be excluded from membership 9.18 in the association under section 353.028, subdivision 2; 9.19 (4) employees of labor organizations as defined in section 9.20 353.017, subdivision 1, who elect to participate under section 9.21 353.017, subdivision 2; 9.22 (5) employees of the Minnesota association of townships 9.23 when the board of the association, at its option, certifies to 9.24 the executive director that its employees are to be included for 9.25 purposes of retirement coverage, in which case coverage of all 9.26 employees of the association is permanent; and 9.27 (6) members who are appointed by the governor to be a state 9.28 department head and elect not to be covered by the Minnesota 9.29 state retirement system under section 352.021. 9.30 Sec. 5. Minnesota Statutes 1998, section 353.01, 9.31 subdivision 7, is amended to read: 9.32 Subd. 7. [MEMBER.] "Member" means a person who accepts 9.33 employment as a "public employee" under subdivision 2,is an9.34employeewho works in one or more positions that require or 9.35 allow membership in the association under subdivision 2a or 9.36 2d, for whom contributions have been withheld, and who is not 10.1 covered by the plan established in chapter 353D. A person who 10.2 is a member remains a member while performing services as a 10.3 public employee and while on an authorized leave of absence or 10.4 an authorized temporary layoff. 10.5 Sec. 6. Minnesota Statutes 1998, section 353.01, 10.6 subdivision 10, is amended to read: 10.7 Subd. 10. [SALARY.] (a) For the purposes of determining 10.8 the amount of employee deductions and employer contributions, 10.9 and computing retirement, disability, and survivor benefits, and 10.10 refunds available to members under this chapter, "salary" means: 10.11 (1) periodic compensation of a public employee, before 10.12 deductions for deferred compensation, supplemental retirement 10.13 plans, or other voluntary salary reduction programs, and also 10.14 means "wages" and includes net income from fees; and 10.15 (2) for a public employee who has prior service covered by 10.16 a local police or firefighters' relief association that has 10.17 consolidated with the public employees retirement association 10.18 and who has elected coverage under the public employees police 10.19 and fire fund benefit plan under section 353A.08 following the 10.20 consolidation, "salary" means the rate of salary upon which 10.21 member contributions to the special fund of the relief 10.22 association were made prior to the effective date of the 10.23 consolidation as specified by law and by bylaw provisions 10.24 governing the relief association on the date of the initiation 10.25 of the consolidation procedure and the actual periodic 10.26 compensation of the public employee after the effective date of 10.27 consolidation. 10.28 (b) Salary does not mean: 10.29 (1) fees paid to district court reporters, unused annual or 10.30 sick leave payments, in lump-sum or periodic payments, severance 10.31 payments, reimbursement of expenses, lump-sum settlements not 10.32 attached to a specific earnings period, or workers' compensation 10.33 payments; 10.34 (2) employer-paid amounts used by an employee toward the 10.35 cost of insurance coverage, employer-paid fringe benefits, 10.36 flexible spending accounts, cafeteria plans, health care expense 11.1 accounts, day care expenses, or any payments in lieu of any 11.2 employer-paid group insurance coverage, including the difference 11.3 between single and family rates that may be paid to a member 11.4 with single coverage and certain amounts determined by the 11.5 executive director to be ineligible; 11.6 (3) the amount equal to that which the employing 11.7 governmental subdivision would otherwise pay toward single or 11.8 family insurance coverage for a covered employee when, through a 11.9 contract or agreement with some but not all employees, the 11.10 employer: 11.11 (i) discontinues, or for new hires does not provide, 11.12 payment toward the cost of the employee's selected insurance 11.13 coverages under a group plan offered by the employer; 11.14 (ii) makes the employee solely responsible for all 11.15 contributions toward the cost of the employee's selected 11.16 insurance coverages under a group plan offered by the employer, 11.17 including any amount the employer makes toward other employees' 11.18 selected insurance coverages under a group plan offered by the 11.19 employer; and 11.20 (iii) provides increased salary rates for employees who do 11.21 not have any employer-paid group insurance coverages; and 11.22 (4) except as provided in section 353.86 or 353.87, 11.23 compensation of any kind paid to volunteer ambulance service 11.24 personnel or volunteer firefighters, as defined in subdivisions 11.25 35 and 36. 11.26 Sec. 7. Minnesota Statutes 1998, section 353.01, 11.27 subdivision 11a, is amended to read: 11.28 Subd. 11a. [TERMINATION OF PUBLIC SERVICE.] "Termination 11.29 of public service" means the withdrawal of a member from public 11.30 service that had provided membership and occurs when a member 11.31 resigns or is dismissed from public service or when a position 11.32 or positions held by a member are abolished by the employing 11.33 governmental subdivision, as evidenced by appropriatewritten11.34 record transmitted to the association, and does not within 3011.35days of resignation or dismissal return to a nontemporary11.36employment position in the same governmental subdivision. 12.1 Sec. 8. Minnesota Statutes 1998, section 353.01, 12.2 subdivision 11b, is amended to read: 12.3 Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination 12.4 of membership" means the conclusion of membership in the 12.5 association and occurs: 12.6 (1) upon termination of public service under subdivision 12.7 11a; 12.8 (2) when amember who is a part-time employee is excluded12.9from membership as a full-time student under subdivision 2b,12.10clause (9);12.11(3) when a member does not return to work within 30 days of12.12the expiration of an authorized temporary layoffgovernmental 12.13 subdivision no longer authorizes: 12.14 (i) layoff under subdivision 12; or 12.15 (ii) an authorized leave of absence under subdivision 31.12.16If the employee subsequently returns to a position in the same12.17governmental subdivision, the employee shall not again be12.18required to earn a salary in excess of $425 per month, unless12.19the employee has taken a refund of accumulated employee12.20deductions plus interest under section 353.34, subdivision 1;or12.21 (3) when a member applies for and accepts a refund of 12.22 member contributions as allowed under section 353.34, 12.23 subdivision 7; or 12.24 (4) when a person files a written election to discontinue 12.25 employee deductions under section 353.27, subdivision 7, 12.26 paragraph (a), clause (1). 12.27 (b) The termination of membership shall be recorded in the 12.28 association records upon receipt of an appropriate notice from 12.29 the governmental subdivision. If within 12 months the employee 12.30 subsequently receives compensation in the position previously 12.31 held in the same governmental subdivision, the employee shall 12.32 not again be required to requalify for membership coverage and 12.33 meet the thresholds in subdivision 2a. 12.34 Sec. 9. Minnesota Statutes 1998, section 353.01, 12.35 subdivision 12, is amended to read: 12.36 Subd. 12. [AUTHORIZED TEMPORARY LAYOFF.] "Authorized 13.1 temporary layoff," including seasonal leave of absence, means a 13.2 limited suspension of public service for a period authorized by 13.3 the employing governmental subdivisionfor a period not13.4exceeding three months in any calendar year, as evidenced by13.5appropriate record of the employer and promptly transmitted to13.6the associationprovided the employer upon expiration of the 13.7 layoff period can recall the employee to the position previously 13.8 held. The association shall credit the member with allowable 13.9 service for an authorized temporary layoff as provided in 13.10 subdivision 16, paragraph (f). 13.11 Sec. 10. Minnesota Statutes 1998, section 353.01, 13.12 subdivision 32, is amended to read: 13.13 Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means 13.14 any public employee, including any public hospital employee, 13.15 covered by any agreement or modification made between the state 13.16 and the Secretary of Health, Education and Welfare, making the 13.17 provisions of the federal Old Age, Survivors and Disability 13.18 Insurance Act applicable to the member if membership eligibility 13.19 criteria are met under this chapter. Coordinated member also 13.20 means a basic member who terminates public service under 13.21 subdivision 11a, reenters public servicein a nontemporary13.22position,after having been out of public employment for 30 or 13.23 more days, and meets the membership eligibility criteria under 13.24 this chapter. 13.25 Sec. 11. Minnesota Statutes 1998, section 353.01, is 13.26 amended by adding a subdivision to read: 13.27 Subd. 38. [COMPENSATED HOURS.] "Compensated hours" means 13.28 the number of hours worked in the position or positions held by 13.29 a public employee. Compensated hours also includes but is not 13.30 limited to compensation the employee receives for: overtime or 13.31 compensatory hours worked; paid holidays; and paid leaves of 13.32 absence including used sick, personal, and vacation leave. 13.33 Sec. 12. Minnesota Statutes 1998, section 353.01, is 13.34 amended by adding a subdivision to read: 13.35 Subd. 39. [BUSINESS YEAR.] "Business year" means the first 13.36 full pay period through the last full pay period of a 14.1 governmental subdivision's 12-month calendar or fiscal year. 14.2 Sec. 13. Minnesota Statutes 1998, section 353.27, 14.3 subdivision 4, is amended to read: 14.4 Subd. 4. [EMPLOYERS REPORTING REQUIREMENTS; CONTRIBUTIONS; 14.5 MEMBER STATUS.] (a) A representative authorized by the head of 14.6 each department shall deduct employee contributions from the 14.7 salary of eachmemberemployee who qualifies for membership 14.8 under this chapter and issue or approve one warrant or payment 14.9 through electronic funds transfer for the aggregate amount of 14.10 the employee contributions, the employer contributions and the 14.11 additional employer contributions to be received within 20 14.12 calendar days in the office of the association, except that if 14.13 the 20th calendar day falls on a weekend or holiday, the 14.14 contribution payment must be received by the first business day 14.15 following the 20th calendar day. The head of each department or 14.16 a designee shall,for each pay periodin which employee14.17contributions are deducted,submit to the association a salary 14.18 deduction report,in theformformat prescribed by the executive 14.19 director, showing. Data to be submitted as part of salary 14.20 deduction reporting may include but are not limited to: 14.21(a)(1) the legal names andthe association membership14.22numbers, listed in alphabetical order,social security numbers 14.23 of employees who are members;(b) the legal names of all new14.24public employees and the effective dates of appointment; (c)14.25 (2) the amount of each employee's salary deduction;(d)14.26 (3) the amount of salary from which each deduction was 14.27 made;(e) effective dates of member terminations of public14.28service accompanied by the applicable status code as set by the14.29association for those terminations caused by death or14.30retirement; (f) effective dates of all temporary layoffs and14.31leaves of absence accompanied by the applicable status code as14.32set by the association; and (g)14.33 (4) the beginning and ending dates of the payroll period 14.34 covered and the date of actual payment; and 14.35 (5) adjustments or corrections covering past pay periods. 14.36Reports of contributions must be accompanied by a membership15.1enrollment formEmployers must furnish the data required for 15.2 enrollment for each new employee who qualifies for membership in 15.3 theformformat prescribed by the executive director. 15.4 The required enrollmentforms fromdata on new employees must be 15.5collected by the employer andsubmitted to the 15.6 associationwithin 30 days following the date of15.7employment.prior to or concurrent with the submission of the 15.8 initial employee salary deduction. The employer shall also 15.9 report to the association all member employment status changes, 15.10 such as leaves of absence, terminations, and death, and the 15.11 effective dates of those changes, on an ongoing basis for the 15.12 payroll cycle in which they occur. The employer shall furnish 15.13such additionaldata, forms, and reportson magnetic media on15.14other formsas may berequestedrequired by the executive 15.15 director for proper operation of the retirement system. Before 15.16 modifying or adding new computerized reporting requirements, the 15.17 executive director shall give advance written notice to 15.18 governmental subdivisions to allow time for system modifications. 15.19 (b) Notwithstanding paragraph (a), the association may 15.20 provide for less frequent reporting and payments for small 15.21 employers. 15.22 Sec. 14. Minnesota Statutes 1998, section 353.27, 15.23 subdivision 10, is amended to read: 15.24 Subd. 10. [EMPLOYER EXCLUSION REPORTS.] When requested, 15.25 the head of a department or a designee shallannuallyfurnish 15.26 the executive director withanaccurate and complete data on the 15.27 exclusion ofreport listing only thoseemployees in potentially 15.28 PERA-eligible positions who were not reported as members of the 15.29 association and whoworkedreceived compensation during the 15.30school year for school employees and calendar year for nonschool15.31employees. The department head must certify the accuracy and15.32completeness of the exclusion report to the associationbusiness 15.33 year of a governmental employer. The executive director shall 15.34 prescribe the manner andformsformat, including standardized 15.35 exclusion codes, to be used by a governmental subdivision in 15.36 preparing and filing exclusionreportsdata or records. The 16.1 executive director shall also check the exclusionreport16.2 information to ascertain whether any omissions have been made by 16.3 a department head in the reporting of new public employees for 16.4 membership. For the purpose of evaluating membership exclusions 16.5 made by governmental subdivisions, the executive director 16.6 may authorize the collection of data, such as a public 16.7 employee's name, social security number, and total number of 16.8 compensated hours that have been awarded to the employee. To 16.9 collect this information, the executive director may delegate an 16.10 association employee under section 353.03, subdivision 3a, 16.11 paragraph (b), clause (5), to conduct a field audit to review 16.12 the payroll records of a governmental subdivision and may 16.13 collect information from other sources that may have the 16.14 information including, but not limited to, the Minnesota 16.15 department of economic security. 16.16 Sec. 15. Minnesota Statutes 1998, section 353.27, 16.17 subdivision 11, is amended to read: 16.18 Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED 16.19 INFORMATION.] All governmental subdivisions shall furnish 16.20 promptly such other information relative to the employment 16.21 status of all employees or former employees, including but not 16.22 limited to payroll abstracts pertaining to all past and present 16.23 employees, as may be requested by the association or its 16.24 executive director, including schedules of salaries and 16.25 compensated hours applicable to various categories of 16.26 employment. In the event payroll abstract records have been 16.27 lost or destroyed or are unavailable, for whatever reason or in 16.28 whatever manner, so that such schedules of salaries or 16.29 compensated hours cannot be furnishedtherefrom, the employing 16.30 governmental subdivision, in lieu thereof,shall instead furnish 16.31 to the association an estimate of the earnings and compensated 16.32 hours of any employee or former employee for any period as may 16.33 be requested by the association or its executive director. 16.34 Should the association receive such schedules of estimated 16.35 earnings and compensated hours, the executive director is hereby 16.36 authorized to use the same as a basis for making whatever 17.1 computations might be necessary for determining obligations of 17.2 the employee and employer to the retirement fund. If estimates 17.3 are not furnished by the employer pursuant to the request of the 17.4 association or its executive director, the association may 17.5 estimate the obligations of the employee and employer to the 17.6 retirement fund based upon such records as are in its 17.7 possession. Where payroll abstracts have been lost or 17.8 destroyed, the governmental agency need not furnish any 17.9 information pertaining to employment prior to July 1, 1963. The 17.10 association shall make no estimate of any obligation of any 17.11 employee, former employee, or employer covering employment prior 17.12 to July 1, 1963. 17.13 Sec. 16. Minnesota Statutes 1998, section 353.27, 17.14 subdivision 12, is amended to read: 17.15 Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In 17.16 the case of omission of required deductions from the salary of 17.17 an employee, the department head or a designee shall 17.18 immediately, upon discovery, report the employee for membership 17.19 and deduct the employee deductions under subdivision 4. Upon17.20receipt of billing from the association,in the current pay 17.21 period or the pay period immediately following the discovery of 17.22 the omission. Payment for the omitted obligations shall be made 17.23 according to reporting procedures and methods established by the 17.24 executive director. 17.25 (b) When the entire omission period does not exceed 60 17.26 days, the governmental subdivision may report and submit payment 17.27 of the omitted employee deductions and omitted employer 17.28 contributions through the reporting processes under subdivision 17.29 4. 17.30 (c) When the omission period exceeds 60 days, the 17.31 governmental subdivision shall furnish to the association 17.32 sufficient data and documentation upon which obligations for 17.33 omitted employee and employer contributions can be calculated. 17.34 The omitted employee deductions must be deducted from the 17.35 employee'snextsubsequent salary payment or payments and 17.36 remitted to the association. The employee shall pay omitted 18.1 employee deductions due for the 60 days prior to the end of the 18.2 last pay period in the omission period during which salary was 18.3 earned. The employer shall pay any remaining omitted employee 18.4 deductions and any omitted employer contributions, plus 18.5 cumulative interest at an annual rate of 8.5 percent compounded 18.6 annually, from the date or dates each omitted employee 18.7 contribution was first payable. 18.8(b)(d) An employer shall not hold an employee liable for 18.9 omitted employee deductions beyond the pay period dates under 18.10 paragraph(a)(c), nor attempt to recover from the employee 18.11 those employee deductions paid by the employer on behalf of the 18.12 employee. Omitted deductions due under paragraph (a) which are 18.13 not paid by the employee constitute a liability of the employer 18.14 that failed to deduct the omitted deductions from the employee's 18.15 salary. The employer shall make payment with interest at an 18.16 annual rate of 8.5 percent compounded annually. Omitted 18.17 employee deductions are no longer due if an employee terminates 18.18 public service before making payment of omitted employee 18.19 deductions to the association, but the employer remains liable 18.20 to pay omitted employer contributions plus interest at an annual 18.21 rate of 8.5 percent compounded annually from the date the 18.22 contributions were first payable. 18.23(c)(e) The association may not commence action for the 18.24 recovery, or accept payment except as provided under subdivision 18.25 12a, of omitted employee deductions and employer contributions 18.26 after the expiration of three calendar years after the calendar 18.27 year in which the contributions and deductions were omitted.No18.28payment may be made or accepted unless the association has18.29already commenced action for recovery of omitted deductions.An 18.30 action for recovery commences on the date of the mailing of any 18.31 written correspondence from the association requesting 18.32 information from the governmental subdivision upon which to 18.33 determine whether or not omitted deductions occurred. 18.34 Sec. 17. Minnesota Statutes 1998, section 353.64, 18.35 subdivision 1, is amended to read: 18.36 Subdivision 1. [POLICE AND FIRE FUND MEMBERSHIP; INCLUDED 19.1 POSITIONS; GENERAL.] A governmental subdivision under section 19.2 353.01, subdivision 6, may enroll an employee as a member of the 19.3 police and fire fund who is hired to or holds a position as: 19.4(a)(1) a full-time police officer or a person in charge of 19.5 a designated police department or sheriff's office who by virtue 19.6 of that employment is required by the employing governmental 19.7 subdivision to be and is licensed by the Minnesota peace officer 19.8 standards and training board under sections 626.84 to 626.863, 19.9 who is charged with the prevention and detection of crime, who 19.10 has the full power of arrest, who is assigned to be a designated 19.11 police or sheriff's department, and whose primary job is the 19.12 enforcement of the general criminal laws of the state. 19.13 Full-time police officers who as part of their positions are 19.14 periodically assigned to employment duties not within the scope 19.15 of this subdivision may contribute as members of the police and 19.16 fire fund for both the primary and secondary services that are 19.17 provided to the employing governmental subdivision; 19.18 (2) a full-time firefighter or a person in charge of a 19.19 designated fire company or companies who is engaged in the 19.20 hazards of firefighting. Full-time firefighters who as part of 19.21 their positions are periodically assigned to employment duties 19.22 not within the scope of this subdivision may contribute as 19.23 members of the police and fire fund for both the primary and 19.24 secondary services that are provided to the employing 19.25 governmental subdivision; 19.26 (3) a police officer serving on less than a full-time basis 19.27 who by virtue of that employment is required by the employing 19.28 governmental subdivision to be and is licensed by the Minnesota 19.29 peace officers standards and training board under sections 19.30 626.84 to 626.863, who is charged with the prevention and 19.31 detection of crime, who has the full power of arrest, who is 19.32 assigned to a designated police or sheriff's department, and 19.33 whose primary job is the enforcement of the general criminal 19.34 laws of the state, if the governing body of the department or 19.35 its designee adopts and submits to the executive director a 19.36 resolution declaring that the primary position held by the 20.1 person is that of a police officer as defined under this 20.2 paragraph; 20.3 (4) a firefighter serving on less than a full-time basis 20.4 who is engaged in the hazards of firefighting and who is 20.5 assigned to a designated fire company or companies if the 20.6 governing body of the department or its designee adopts and 20.7 submits to the executive director a resolution declaring that 20.8 the primary position held by the person is that of a firefighter 20.9 as defined under this paragraph; 20.10 (5) a person who prior to July 1, 1961, was a member of the 20.11 police and fire fund, by virtue of being a police officer or 20.12 firefighter, shall, as long as the person remains in either 20.13 position, continue membership in the fund.; 20.14(b)(6) a person who was employed by a governmental 20.15 subdivision as a police officer and was a member of the police 20.16 and fire fund on July 1, 1978, by virtue of being a police 20.17 officer as defined by this section on that date, and if employed 20.18 by the same governmental subdivision in a position in the same 20.19 department in which the person was employed on that date, shall 20.20 continue membership in the fund whether or not that person has 20.21 the power of arrest by warrant after that date.; 20.22(c)(7) a person who was employed by a governmental 20.23 subdivision as a police officer or a firefighter, whichever 20.24 applies, was an active member of the local police or salaried 20.25 firefighters relief association located in that governmental 20.26 subdivision by virtue of that employment as of the effective 20.27 date of the consolidation as authorized by sections 353A.01 to 20.28 353A.10, and has elected coverage by the public employees police 20.29 and fire fund benefit plan, shall become a member of the police 20.30 and fire fund after that date if employed by the same 20.31 governmental subdivision in a position in the same department in 20.32 which the person was employed on that date.; or 20.33(d)(8) any other employee serving on a full-time basis as 20.34 a police officer or firefighter on or after July 1, 1961, shall 20.35 become a member of the public employees police and fire fund. 20.36(e) An employee serving on less than a full-time basis as a21.1police officer shall become a member of the public employees21.2police and fire fund only after a resolution stating that the21.3employee should be covered by the police and fire fund is21.4adopted by the governing body of the governmental subdivision21.5employing the person declaring that the position which the21.6person holds is that of a police officer.21.7(f) An employee serving on less than a full-time basis as a21.8firefighter shall become a member of the public employees police21.9and fire fund only after a resolution stating that the employee21.10should be covered by the police and fire fund is adopted by the21.11governing body of the governmental subdivision employing the21.12person declaring that the position which the person holds is21.13that of a firefighter.21.14(g) A police officer or firefighter employed by a21.15governmental subdivision who by virtue of that employment is21.16required by law to be a member of and to contribute to any21.17police or firefighter relief association governed by section21.1869.77 which has not consolidated with the public employees21.19police and fire fund and any police officer or firefighter of a21.20relief association that has consolidated with the association21.21for which the employee has not elected coverage by the public21.22employees police and fire fund benefit plan as provided in21.23sections 353A.01 to 353A.10 shall not become a member of the21.24public employees police and fire fund.21.25 Sec. 18. Minnesota Statutes 1998, section 353.64, 21.26 subdivision 2, is amended to read: 21.27 Subd. 2. [POLICE AND FIRE MEMBERSHIP; EXCLUDED POSITIONS.] 21.28Before a governing body may declare a position to be that of a21.29police officer, the duties of the person so employed must, as a21.30minimum, include employment as an officer of a designated police21.31department or sheriff's office or person in charge of a21.32designated police department or sheriff's office whose primary21.33job it is to enforce the law, who is licensed by the Minnesota21.34board of peace officer standards and training under sections21.35626.84 to 626.863, who is engaged in the hazards of protecting21.36the safety and property of others, and who has the power to22.1arrest by warrant. A police officer who is periodically22.2assigned to employment duties not within the scope of this22.3subdivision may contribute to the public employees police and22.4fire fund for all service, if a resolution declaring that the22.5primary position held by the person is that of a police officer,22.6is adopted by the governing body of the department, and is22.7promptly submitted to the executive director.A police officer 22.8 or firefighter employed by a governmental subdivision who by 22.9 virtue of that employment is required by law to be a member of 22.10 and to contribute to any police or firefighter relief 22.11 association governed by section 69.77 which has not consolidated 22.12 with the public employees police and fire fund and any police 22.13 officer or firefighter of a relief association that has 22.14 consolidated with the association for which the employee has not 22.15 elected coverage by the public employees police and fire fund 22.16 benefit plan as provided in sections 353A.01 to 353A.10 shall 22.17 not become a member of the public employees police and fire fund. 22.18 Sec. 19. [REPEALER.] 22.19 Minnesota Statutes 1998, section 353.64, subdivision 3, is 22.20 repealed. 22.21 Sec. 20. [EFFECTIVE DATE.] 22.22 Sections 1 to 19 are effective July 1, 1999.