Minnesota Legislature
SF 1664
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to retirement; amending certain correctional employee disability benefit
provisions; defining terms; amending age limits; amending Minnesota Statutes
2006, section 352.95, subdivisions 1, 2, 5, 7, by adding subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 352.95, subdivision 1, is amended to read:
Subdivision 1.
deleted text begin Job-related disabilitydeleted text end new text begin Duty disability computation of benefitnew text end .
A covered correctional employee who becomes disabled deleted text begin and who is expected to be
physically or mentally unfit to perform the duties of the position for at least one year as a
direct result of an injury, sickness, or other disability that incurred in or arose out of any
act of duty that makes the employee physically or mentally unable to perform the dutiesdeleted text end new text begin as
defined under subdivision 1b, clause (1),new text end is entitled to a disability benefit. The disability
benefit deleted text begin maydeleted text end new text begin shallnew text end be based on covered correctional service only. The benefit amount is 50
percent of the average salary defined in section 352.93, plus an additional percent equal
to that specified in section 356.315, subdivision 5, for each year of covered correctional
service in excess of 20 years, ten months, prorated for completed months.
Sec. 2.
Minnesota Statutes 2006, section 352.95, is amended by adding a subdivision
to read:
new text begin Subd. 1b. new text end
new text begin Occupational disability. new text end
new text begin
"Occupational disability," for purposes of
determining eligibility for disability benefits, means a disabling condition that is expected
to prevent a member, for a period of not less than 12 months, from performing the normal
duties of the position held by a person who is a member of the state correctional retirement
plan. Occupational disability benefits are awarded either as:
new text end
new text begin
(1) duty disability, physical or psychological, which means a disabling condition that
is the direct result of an injury incurred during, or a disease arising out of, the performance
of normal duties or the performance of less frequent duties either of which are specific to
the positions covered by the state correctional retirement plan; or
new text end
new text begin
(2) regular disability, physical or psychological, which means a disabling condition
resulting from a disease or an injury that arises from any activities while not at work or
while at work from performing normal or less frequent duties that do not present inherent
dangers specific to the occupations covered by the state correctional retirement plan.
new text end
Sec. 3.
Minnesota Statutes 2006, section 352.95, is amended by adding a subdivision
to read:
new text begin Subd. 1c. new text end
new text begin Normal duties. new text end
new text begin
"Normal duties" means specific tasks designated in the
applicant's job description and which the applicant performs on a day-to-day basis, but
do not include less frequent duties which may be requested to be done by the employer
from time to time.
new text end
Sec. 4.
Minnesota Statutes 2006, section 352.95, is amended by adding a subdivision
to read:
new text begin Subd. 1d. new text end
new text begin Less frequent duties. new text end
new text begin
"Less frequent duties" means tasks designated in
the applicant's job description as either required from time to time or as assigned, but
which are not carried out as part of the normal routine of the applicant's job.
new text end
Sec. 5.
Minnesota Statutes 2006, section 352.95, subdivision 2, is amended to read:
Subd. 2.
deleted text begin Non-job-relateddeleted text end new text begin Regularnew text end disabilitynew text begin benefitnew text end .
A covered correctional
employee whonew text begin was hired prior to July 1, 2007new text end , after rendering at least one year of covered
correctional servicenew text begin or a covered correctional employee who was first hired after June 30,
2007, after rendering at least three years of covered correctional plan servicenew text end , becomes
disabled deleted text begin and who is expected to be physically or mentally unfit to perform the duties of
the position for at least one year because of sickness or injury that occurred while not
engaged in covered employmentdeleted text end new text begin as defined under subdivision 1b, clause (2),new text end is entitled to
a disability benefit based on covered correctional service only. The disability benefit must
be computed as provided in section 352.93, subdivisions 1 and 2deleted text begin ,deleted text end deleted text begin anddeleted text end new text begin . The benefits of a
covered correctional employee who was first hired prior to July 1, 2007, and is determined
to be disabled under this subdivisionnew text end must be computed as though the employee had at
least 15 years of covered correctional service.
Sec. 6.
Minnesota Statutes 2006, section 352.95, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Employer payment of present value. new text end
new text begin
The employer of a disabled
employee who qualifies for a duty disability shall be responsible for the present value
of the benefit. Present value of the disability benefit shall be determined by the state
retirement system as approved by the actuary retained under section 356.214, for the
period beginning with the disability accrual date through the date the disabled employee
would reach age 55. Payment shall be made by the employer of the disabled employee at
the request of the state retirement system.
new text end
Sec. 7.
Minnesota Statutes 2006, section 352.95, subdivision 5, is amended to read:
Subd. 5.
Retirement status at normal retirement age.
The disability benefit
paid to a disabled correctional employee under this section shall terminate at the end of
the month in which the employee reaches age deleted text begin 65deleted text end new text begin 55new text end , or the five-year anniversary of the
effective date of the disability benefit, whichever is later. If the disabled correctional
employee is still disabled when the employee reaches age deleted text begin 65deleted text end new text begin 55new text end , or the five-year
anniversary of the effective date of the disability benefit, whichever is later, the employee
shall be deemed to be a retired employee. If the employee had elected an optional annuity
under subdivision 1a, the employee shall receive an annuity in accordance with the
terms of the optional annuity previously elected. If the employee had not elected an
optional annuity under subdivision 1a, the employee may within 90 days of attaining age
deleted text begin 65deleted text end new text begin 55new text end or reaching the five-year anniversary of the effective date of the disability benefit,
whichever is later, either elect to receive a normal retirement annuity computed in the
manner provided in section 352.93 or elect to receive an optional annuity as provided
in section 352.116, subdivision 3, based on the same length of service as used in the
calculation of the disability benefit. Election of an optional annuity must be made within
90 days before attaining age deleted text begin 65deleted text end new text begin 55new text end or reaching the five-year anniversary of the effective
date of the disability benefit, whichever is later. If an optional annuity is elected, the
optional annuity shall begin to accrue on the first of the month following the month in
which the employee reaches age deleted text begin 65deleted text end new text begin 55new text end or the five-year anniversary of the effective date of
the disability benefit, whichever is later.
Sec. 8.
Minnesota Statutes 2006, section 352.95, subdivision 7, is amended to read:
Subd. 7.
Resumption of employment.
If the disabled employee resumes gainful
worknew text begin other than under subdivision 8new text end , the disability benefit must be continued in an amount
which when added to current earnings and workers' compensation benefits does not exceed
the salary rate of the disabled employee at the date of disability as adjusted by the same
percentage increase in United States average wages used by Social Security in calculating
average indexed monthly earnings for the same period.
Sec. 9.
Minnesota Statutes 2006, section 352.95, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Continuation of correctional plan coverage. new text end
new text begin
An employee who is
determined to be disabled under this section, and has accrued ten or more years of
correctional plan covered service who accepts employment covered by the general
employees retirement plan under section 352.01, may continue coverage under the
correctional employee retirement plan until the employee reaches age 55. An employee
who accepts employment under this subdivision shall have monthly disability benefits
suspended while working in this position.
new text end