SF 2490

as introduced - 91st Legislature (2019 - 2020) Posted on 03/15/2019 09:34am

A bill for an act
relating to retirement; public employees police and fire retirement plan; revising
the annual municipal contribution related to the former Minneapolis firefighters
and police relief associations; amending Minnesota Statutes 2018, section 353.665,
subdivision 8, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 353.665, subdivision 8, is amended to read:

Subd. 8.

Member and employer contributions.

(a) Except as provided in paragraph
(b), (c), or (d), the employee contribution rate for merged former consolidation account
active members is the rate specified in section 353.65, subdivision 2, and the regular
municipal contribution rate on behalf of merged former consolidation account active members
is the rate specified in section 353.65, subdivision 3.

(b) With respect to active members of the merged former Minneapolis Firefighters Relief
Association and the merged former Minneapolis Police Relief Association, there are no
employee contributions payable and the employer contribution on behalf of those active
members is at the rate specified in section 353.65, subdivision 3, applied to the active
member's salary. deleted text begin In addition, an additional municipal contribution is payable by the city of
Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as
sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded
present value figure calculated as required by Minnesota Statutes 2012, section 353.667,
subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision 6,
paragraph (a). If the postretirement or preretirement interest rate actuarial assumption
applicable to the public employees police and fire retirement plan under section 356.215,
subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
deleted text end deleted text begin 356.215, subdivision 8, the remainder present value of future benefits amount calculation
under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes
2012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must
be revised and the amortization contribution by the city of Minneapolis for the balance of
the amortization period must be redetermined by the actuary retained under section 356.214
and certified by the executive director to the city of Minneapolis.
deleted text end

(c) If there are assets of the former Fairmont Police Relief Association in excess of the
present value of future benefits as of June 29, 2012, these assets must be credited to an
interest-bearing suspense account within the public employees police and fire retirement
fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015,
and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must
be credited with the same rate of investment return as the public employees police and fire
retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate
actuarial assumption applicable to the public employees police and fire retirement plan
under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
Statutes 2010, section 356.215, subdivision 8, the remainder present value of future benefits
amount calculation under paragraph (a), updated for the passage of time, must be revised
and the amortization contribution by the city of Fairmont for the balance of the amortization
period must be redetermined by the actuary retained under section 356.214 and certified by
the executive director to the city of Fairmont.

(d) If there was a remainder present value of future benefits amounts under Minnesota
Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of Virginia shall pay
an additional municipal contribution annually on or before December 31 sufficient to
amortize on a level annual dollar basis by December 31, 2020, that remainder present value
of future benefits amounts of the former Virginia fire department consolidation account. If,
after June 29, 2012, the postretirement or preretirement interest rate actuarial assumption
applicable to the public employees police and fire retirement plan under section 356.215,
subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
356.215, subdivision 8, the remainder present value of future benefits amount calculation
under paragraph (a), updated for the passage of time, must be revised and any amortization
contribution by the city of Virginia for the balance of the amortization period must be
redetermined by the actuary retained under section 356.214 and certified by the executive
director to the city of Virginia.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 353.665, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin City of Minneapolis contribution for firefighters and police. new text end

new text begin (a) Until July
15, 2018, the city of Minneapolis shall make a contribution annually to the public employees
police and fire retirement plan on July 15, set at the amount calculated as of December 30,
2011, as sufficient to amortize, on a level annual dollar basis by December 31, 2031, the
unfunded present value figure calculated as required by Minnesota Statutes 2012, sections
353.667, subdivision 6, paragraph (a), and 353.668, subdivision 6, paragraph (a).
new text end

new text begin (b) Beginning July 15, 2019, and every July 15 thereafter until and including July 15,
2031, the city of Minneapolis shall make a contribution annually to the public employees
police and fire retirement plan equal to $3,188,735, attributable to the former Minneapolis
Firefighters Relief Association, and $4,489,837, attributable to the former Minneapolis
Police Relief Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end