2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement and public employment; 1.3 modifying benefits for certain former participants in 1.4 the Minnesota state retirement system; authorizing 1.5 additional service credits for certain University of 1.6 Minnesota hospital and clinics employees; authorizing 1.7 additional augmentation for employees of the 1.8 University of Minnesota hospital and clinics who 1.9 terminate participation in the Minnesota state 1.10 retirement system; imposing conditions protecting the 1.11 rights of employees on any integration of the 1.12 University of Minnesota hospital and clinics and 1.13 Fairview hospital and healthcare services; 1.14 appropriating money; proposing coding for new law as 1.15 Minnesota Statutes, chapter 352F; repealing Minnesota 1.16 Statutes 1994, section 268.9783, subdivision 8. 1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.18 ARTICLE 1 1.19 RETIREMENT BENEFITS 1.20 Section 1. [352F.01] [PURPOSE.] 1.21 The purpose of this chapter is to assure, to the extent 1.22 possible, that persons employed at the University of Minnesota 1.23 hospital and clinics will be entitled to receive future 1.24 retirement benefits under the general state employees retirement 1.25 plan of the Minnesota state retirement system commensurate with 1.26 the prior contributions made by them or on their behalf upon the 1.27 integration of the University of Minnesota hospital and clinics 1.28 and Fairview hospital and healthcare services. 1.29 Sec. 2. [352F.02] [DEFINITIONS.] 1.30 Subdivision 1. [DEFINITIONS.] As used in this chapter, 1.31 unless the context or subject matter indicates otherwise, the 2.1 following terms have the meanings given in this section. 2.2 Subd. 2. [ALLOWABLE SERVICE.] "Allowable service" has the 2.3 meaning provided in Minnesota Statutes 1994, section 352.01, 2.4 subdivision 11. 2.5 Subd. 3. [EFFECTIVE DATE.] "Effective date" is the date 2.6 terminated hospital employees transfer employment to Fairview 2.7 under a definitive integration agreement between the University 2.8 of Minnesota and Fairview. 2.9 Subd. 4. [FAIRVIEW.] "Fairview" means Fairview hospital 2.10 and healthcare services, a Minnesota nonprofit corporation, and 2.11 its successors. 2.12 Subd. 5. [SECTION.] "Section" means the designated section 2.13 of Minnesota Statutes. 2.14 Subd. 6. [TERMINATED HOSPITAL EMPLOYEE.] "Terminated 2.15 hospital employee" means a person who: 2.16 (1) was employed on the day before the effective date by 2.17 the University of Minnesota at the University of Minnesota 2.18 hospital and clinics and was paid on a biweekly payroll; 2.19 (2) terminated employment with the University of Minnesota 2.20 on the day before the effective date; and 2.21 (3) was a participant in the general state employees 2.22 retirement plan of the Minnesota state retirement system at the 2.23 time of termination of employment with the University of 2.24 Minnesota. 2.25 Subd. 7. [UNIVERSITY OF MINNESOTA.] "University of 2.26 Minnesota" means University of Minnesota hospital and clinics, 2.27 the hospitals and clinics operated by the regents of the 2.28 University of Minnesota. 2.29 Subd. 8. [YEARS OF ALLOWABLE SERVICE.] "Years of allowable 2.30 service" has the meaning provided in Minnesota Statutes 1994, 2.31 section 352.01, subdivision 16. 2.32 Sec. 3. [352F.03] [VESTING RULE FOR CERTAIN EMPLOYEES.] 2.33 Notwithstanding any provision of chapter 352 to the 2.34 contrary, a terminated hospital employee is eligible to receive 2.35 a retirement annuity under Minnesota Statutes 1994, section 2.36 352.115, without regard to the requirement for three years of 3.1 allowable service. 3.2 Sec. 4. [352F.04] [AUGMENTATION INTEREST RATE FOR 3.3 TERMINATED UNIVERSITY HOSPITAL EMPLOYEES.] 3.4 The deferred annuity of a terminated hospital employee is 3.5 subject to augmentation in accordance with Minnesota Statutes 3.6 1994, section 352.72, subdivision 2, except that the rate of 3.7 interest for this purpose is 5.5 percent compounded annually 3.8 until January 1 following the year in which such person attains 3.9 age 55. From that date to the effective date of retirement, the 3.10 rate is 7.5 percent. These increased augmentation rates are no 3.11 longer applicable for any time after the terminated hospital 3.12 employee becomes covered again by a retirement fund enumerated 3.13 in section 356.30, subdivision 3. These increased deferred 3.14 annuity augmentation rates do not apply to a terminated 3.15 transferred hospital employee who begins receipt of a retirement 3.16 annuity while employed by Fairview. 3.17 Sec. 5. [352F.05] [AUTHORIZATION FOR ADDITIONAL ALLOWABLE 3.18 SERVICE FOR CERTAIN EARLY RETIREMENT PURPOSES.] 3.19 For purpose of determining eligibility for early retirement 3.20 benefits provided under Minnesota Statutes 1994, section 3.21 352.116, subdivision 1, paragraphs (a) and (b), and 3.22 notwithstanding any provision of chapter 352 to the contrary, 3.23 the years of allowable service for a terminated hospital 3.24 employee who transfers to employment at Fairview on the 3.25 effective date and does not apply for a refund of contributions 3.26 under Minnesota Statutes 1994, section 352.22, subdivision 2, or 3.27 any similar provision in future Minnesota Statutes, includes 3.28 service with Fairview following the effective date. Fairview 3.29 shall provide any reports that the executive director of the 3.30 Minnesota state retirement system may reasonably request to 3.31 permit calculation of benefits. 3.32 To be eligible for early retirement benefits under this 3.33 section, the individual must separate from service with 3.34 Fairview. The terminated eligible individual, or an individual 3.35 authorized to act on behalf of that individual, may apply for an 3.36 annuity following application procedures under section 352.115, 4.1 subdivision 7. 4.2 Sec. 6. [352F.06] [APPLICATION OF REEMPLOYED ANNUITANT 4.3 EARNINGS LIMITATIONS.] 4.4 The reemployed annuitant earnings limitations of section 4.5 352.115, subdivision 10, apply to any service by a terminated 4.6 hospital employee as an employee of Fairview. 4.7 Sec. 7. [352F.07] [EFFECT ON REFUND.] 4.8 Notwithstanding any provision of chapter 352 to the 4.9 contrary, terminated hospital employees may receive a refund of 4.10 employee accumulated contributions plus interest at the rate of 4.11 six percent per year compounded annually in accordance with 4.12 Minnesota Statutes 1994, section 352.22, subdivision 2, at any 4.13 time after the transfer of employment to Fairview. If a 4.14 terminated hospital employee has received a refund from a 4.15 pension plan enumerated in section 356.30, subdivision 3, the 4.16 person may not repay that refund unless the person again becomes 4.17 a member of one of those enumerated plans and complies with 4.18 section 356.30, subdivision 2. 4.19 Sec. 8. [352F.08] [COUNSELING SERVICES.] 4.20 The University of Minnesota hospital and clinics and the 4.21 Minnesota state retirement system shall provide terminated 4.22 hospital employees with counseling on their benefits available 4.23 under the general state employees retirement plan of the 4.24 Minnesota state retirement system. 4.25 Sec. 9. [EFFECTIVE DATE.] 4.26 Sections 1 to 8 are effective as of the date employees of 4.27 the University of Minnesota cease to be members of the Minnesota 4.28 state retirement system as a result of an integration agreement 4.29 between the University of Minnesota and Fairview. 4.30 ARTICLE 2 4.31 CONDITIONS FOR INTEGRATION AGREEMENT 4.32 Section 1. [DISLOCATED WORKERS AND WORKERS AT RISK.] 4.33 Fairview and the appropriate exclusive representatives 4.34 shall apply for a grant or grants under Minnesota Statutes, 4.35 chapter 268, and shall follow prescribed guidelines in 4.36 administering the grant or grants in order to provide training 5.1 or retraining for permanent or regular represented and 5.2 unrepresented employees of the University of Minnesota hospital 5.3 and clinics and Fairview hospital and healthcare services who 5.4 become or are at risk of becoming dislocated workers as a result 5.5 of an integration agreement between the university and 5.6 Fairview. Implementation of this section must be assigned to a 5.7 committee comprising: 5.8 (1) one representative of each bargaining unit of employees 5.9 at the University of Minnesota hospital and clinics and Fairview 5.10 hospital and healthcare services, selected by the exclusive 5.11 representatives of those employees under collective bargaining 5.12 agreements in force the day before the effective date of this 5.13 section; and 5.14 (2) an equal number of employer representatives appointed 5.15 by Fairview. 5.16 Subsequent changes in bargaining unit representation on the 5.17 committee, if any, are subject to national labor relations board 5.18 procedures. 5.19 The committee shall apply for grants under Minnesota 5.20 Statutes, chapter 268. Instead, or in addition, it may apply 5.21 for any available federal money for dislocated workers. The 5.22 committee shall select the vendor or vendors to provide training 5.23 or retraining under this section. 5.24 University of Minnesota hospital and clinic employees who 5.25 are laid off as a result of the integration agreement and do not 5.26 become Fairview employees may be given access to the University 5.27 of Minnesota dislocated worker program. The university is 5.28 requested to apply for an additional grant or for additional 5.29 grants under Minnesota Statutes, chapter 268, for University of 5.30 Minnesota hospital and clinics employees who are at risk of 5.31 becoming dislocated workers as a result of the integration 5.32 agreement. 5.33 Sec. 2. [APPROPRIATION.] 5.34 (a) $1,800,000 is appropriated to the commissioner of 5.35 finance, to be held for the board of regents of the University 5.36 of Minnesota for its use in providing transitional funding for 6.1 University of Minnesota hospital and clinics employees who 6.2 become employees of Fairview hospital and healthcare services or 6.3 a new entity as a result of an integration agreement between the 6.4 university and Fairview. Transitional funding must be used 6.5 exclusively for university employees' transitional needs, such 6.6 as, but not limited to, health benefits and educational 6.7 opportunities. The commissioner shall release the money 6.8 appropriated by this section to the regents: 6.9 (1) upon the board's adoption of a transitional funding 6.10 plan agreed to by the exclusive representatives; and 6.11 (2) after the board has matched this appropriation 6.12 dollar-for-dollar. 6.13 (b) If the board of regents has not reached an agreement on 6.14 a transitional funding plan with the exclusive representatives 6.15 by October 1, 1996, the commissioner may release half of the 6.16 appropriated money, and the regents may use half of the 6.17 university's matching amount, for unrepresented employees. If 6.18 no agreement with the exclusive representatives is reached by 6.19 October 1, 1998, the rest of the money may be released and used 6.20 for purposes of this section. 6.21 (c) This appropriation is available until June 30, 1999. 6.22 Sec. 3. [REPEALER.] 6.23 Minnesota Statutes 1994, section 268.9783, subdivision 8, 6.24 is repealed. 6.25 Sec. 4. [EFFECTIVE DATE.] 6.26 Sections 1 to 3 are effective the day following final 6.27 enactment.