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SF 2626

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 09/28/2016 09:18am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to state government; changing certain provisions of the board of directors
for the Minnesota State Retirement System; ratifying labor agreements and
compensation plans; ratifying the salary increase of certain agency directors;
amending Minnesota Statutes 2014, sections 352.03, subdivision 5; 353.03,
subdivision 3a; 354.06, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 352.03, subdivision 5, is amended to read:


Subd. 5.

Executive director; assistant director.

(a) The executive director, in this
chapter called the director, of the system must be appointed by the board on the basis of
fitness, experience in the retirement field, and leadership ability. The director must have
had at least five years' experience on the administrative staff of a major retirement system.

(b) The executive director and assistant director must be in the unclassified service
but appointees may be selected from civil service lists if desired. new text beginNotwithstanding any
law to the contrary, the board must set the salary of the executive director.
new text endThe salary of
the executive director must deleted text beginbe as provided bydeleted text end new text beginnot exceed the limit for a position listed
in
new text endsection 15A.0815new text begin, subdivision 2new text end. The salary of the assistant director must be set in
accordance with section 43A.18, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 2.

Minnesota Statutes 2014, section 353.03, subdivision 3a, is amended to read:


Subd. 3a.

Executive director.

(a) Appointment. The board shall appoint an
executive director on the basis of education, experience in the retirement field, and
leadership ability. The executive director must have had at least five years' experience in
an executive level management position, which has included responsibility for pensions,
deferred compensation, or employee benefits. The executive director serves at the pleasure
of the board. new text beginNotwithstanding any law to the contrary, the board must set the salary of the
executive director.
new text endThe salary of the executive director deleted text beginis as provided bydeleted text endnew text begin must not exceed
the limit for a position listed in
new text end section 15A.0815new text begin, subdivision 2new text end.

(b) Duties. The management of the association is vested in the executive director
who shall be the executive and administrative head of the association. The executive
director shall act as adviser to the board on all matters pertaining to the association and
shall also act as the secretary of the board. The executive director shall:

(1) attend all meetings of the board;

(2) prepare and recommend to the board appropriate rules to carry out the provisions
of this chapter;

(3) establish and maintain an adequate system of records and accounts following
recognized accounting principles and controls;

(4) designate, with the approval of the board, up to two persons who may serve in
the unclassified service and whose salaries are set in accordance with section 43A.18,
subdivision 3
, appoint a confidential secretary in the unclassified service, and appoint
employees to carry out this chapter, who are subject to chapters 43A and 179A in the same
manner as are executive branch employees;

(5) organize the work of the association as the director deems necessary to fulfill
the functions of the association, and define the duties of its employees and delegate to
them any powers or duties, subject to the control of, and under such conditions as, the
executive director may prescribe;

(6) with the approval of the board, contract for the services of an approved actuary,
professional management services, and any other consulting services as necessary to fulfill
the purposes of this chapter. All contracts are subject to chapter 16C. The commissioner
of administration shall not approve, and the association shall not enter into, any contract
to provide lobbying services or legislative advocacy of any kind. Any approved actuary
retained by the executive director shall function as the actuarial advisor of the board
and the executive director. In addition to filing requirements under section 356.214,
any supplemental actuarial valuations or experience studies shall be filed with the
executive director of the Legislative Commission on Pensions and Retirement. Copies
of professional management survey reports shall be transmitted to the secretary of the
senate, the chief clerk of the house of representatives, and the Legislative Reference
Library as provided by section 3.195, and to the executive director of the commission at
the same time as reports are furnished to the board. Only management firms experienced
in conducting management surveys of federal, state, or local public retirement systems
shall be qualified to contract with the director hereunder;

(7) with the approval of the board provide in-service training for the employees
of the association;

(8) make refunds of accumulated contributions to former members and to the
designated beneficiary, surviving spouse, legal representative or next of kin of deceased
members or deceased former members, as provided in this chapter;

(9) determine the amount of the annuities and disability benefits of members covered
by the association and authorize payment of the annuities and benefits beginning as of
the dates on which the annuities and benefits begin to accrue, in accordance with the
provisions of this chapter;

(10) pay annuities, refunds, survivor benefits, salaries, and necessary operating
expenses of the association;

(11) prepare and submit to the board and the legislature an annual financial report
covering the operation of the association, as required by section 356.20;

(12) prepare and submit biennial and annual budgets to the board for its approval
and submit the approved budgets to the Department of Management and Budget for
approval by the commissioner;

(13) reduce all or part of the accrued interest payable under section 353.27,
subdivisions 12, 12a, and 12b
, or 353.28, subdivision 5, upon receipt of proof by the
association of an unreasonable processing delay or other extenuating circumstances of
the employing unit; and notwithstanding section 353.27, subdivision 7, may waive the
payment of accrued interest to the member if a credit has been taken by the employer to
correct an employee deduction taken in error and if the accrued interest is $10 or less.
The executive director shall prescribe and submit for approval by the board the conditions
under which such interest may be reduced; and

(14) with the approval of the board, perform such other duties as may be required for
the administration of the association and the other provisions of this chapter and for the
transaction of its business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 3.

Minnesota Statutes 2014, section 354.06, subdivision 2, is amended to read:


Subd. 2.

President; executive director.

The board shall annually elect one of its
members as president. It shall elect an executive directordeleted text begin, whose salary shall be as provided
by
deleted text endnew text begin. Notwithstanding any law to the contrary, the board must set the salary of the executive
director. The salary of the executive director must not exceed the limit for a position listed
in
new text end section 15A.0815new text begin, subdivision 2new text end. The salary of the assistant executive director who shall
be in the unclassified service, shall be set in accordance with section 43A.18, subdivision
3
. The executive director shall serve during the pleasure of the board and be the executive
officer of the board, with such duties as the board shall prescribe. The board shall employ
all other clerks and employees necessary to properly administer the association. The cost
and expense of administering the provisions of this chapter shall be paid by the association.
The executive director shall be appointed by the board on the basis of fitness, experience
in the retirement field and leadership ability. The executive director shall have had at least
five years of experience on the administrative staff of a major retirement system.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 4. new text beginLABOR AGREEMENTS AND COMPENSATION PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota State University Administrative and Service
Faculty.
new text end

new text begin The labor agreement between the state of Minnesota and the Minnesota State
University Administrative and Service Faculty, approved by the Legislative Coordinating
Commission Subcommittee on Employee Relations on October 29, 2015, is ratified.
new text end

new text begin Subd. 2. new text end

new text begin Inter Faculty Organization. new text end

new text begin The labor agreement between the state of
Minnesota and the Inter Faculty Organization, approved by the Legislative Coordinating
Commission Subcommittee on Employee Relations on October 29, 2015, is ratified.
new text end

new text begin Subd. 3. new text end

new text begin MnSCU Personnel Plan for Administrators. new text end

new text begin The MnSCU Personnel
Plan for Administrators, approved by the Legislative Coordinating Commission
Subcommittee on Employee Relations on October 29, 2015, is ratified.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner's and Managerial Plan amendments. new text end

new text begin The amendments to
the insurance articles of the FY 14-15 Commissioner's Plan and the FY 14-15 Managerial
Plan, approved by the Legislative Coordinating Commission Subcommittee on Employee
Relations on October 29, 2015, are ratified.
new text end

new text begin Subd. 5. new text end

new text begin Minnesota Nurses Association. new text end

new text begin The labor agreement between the
state of Minnesota and the Minnesota Nurses Association, approved by the Legislative
Coordinating Commission Subcommittee on Employee Relations on January 15, 2016,
is ratified.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota Law Enforcement Association. new text end

new text begin The labor agreement between
the state of Minnesota and the Minnesota Law Enforcement Association, approved by the
Legislative Coordinating Commission Subcommittee on Employee Relations on January
15, 2016, is ratified.
new text end

new text begin Subd. 7. new text end

new text begin American Federation of State, County, and Municipal Employees, Unit
8.
new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of
State, County, and Municipal Employees, Unit 8, Corrections Officers, approved by the
Legislative Coordinating Commission Subcommittee on Employee Relations on January
15, 2016, is ratified.
new text end

new text begin Subd. 8. new text end

new text begin State Residential Schools Education Association. new text end

new text begin The labor agreement
between the state of Minnesota and the State Residential Schools Education Association,
approved by the Legislative Coordinating Commission Subcommittee on Employee
Relations on January 15, 2016, is ratified.
new text end

new text begin Subd. 9. new text end

new text begin Minnesota State College Faculty. new text end

new text begin The labor agreement between the
state of Minnesota and the Minnesota State College Faculty, approved by the Legislative
Coordinating Commission Subcommittee on Employee Relations on March 8, 2016,
is ratified.
new text end

Sec. 5. new text beginOTHER AGREEMENTS AND COMPENSATION PLANS.
new text end

new text begin Subdivision 1. new text end

new text begin American Federation of State, County, and Municipal Employees.
new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of State,
County, and Municipal Employees, Council 5, submitted to the Legislative Coordinating
Commission Subcommittee on Employee Relations on October 29, 2015, and implemented
after 30 days as provided in Minnesota Statutes, section 3.855, subdivision 2, is ratified.
new text end

new text begin Subd. 2. new text end

new text begin American Federation of State, County, and Municipal Employees, Unit
225.
new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of
State, County, and Municipal Employees, Unit 225, Radio Communications Operators,
submitted to the Legislative Coordinating Commission Subcommittee on Employee
Relations on October 29, 2015, and implemented after 30 days as provided in Minnesota
Statutes, section 3.855, subdivision 2, is ratified.
new text end

new text begin Subd. 3. new text end

new text begin Minnesota Association of Professional Employees. new text end

new text begin The labor agreement
between the state of Minnesota and the Minnesota Association of Professional Employees,
submitted to the Legislative Coordinating Commission Subcommittee on Employee
Relations on October 29, 2015, and implemented after 30 days as provided in Minnesota
Statutes, section 3.855, subdivision 2, is ratified.
new text end

new text begin Subd. 4. new text end

new text begin Middle Management Association. new text end

new text begin The labor agreement between the state
of Minnesota and the Middle Management Association, submitted to the Legislative
Coordinating Commission Subcommittee on Employee Relations on October 29, 2015,
and implemented after 30 days as provided in Minnesota Statutes, section 3.855,
subdivision 2, is ratified.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner's plan. new text end

new text begin The commissioner's plan for unrepresented
employees, as submitted to the Legislative Coordinating Commission Subcommittee
on Employee Relations on October 29, 2015, as amended by the technical correction
resolution "SER-5" presented to the subcommittee on March 8, 2016, is ratified.
new text end

new text begin Subd. 6. new text end

new text begin Managerial plan. new text end

new text begin The managerial plan, as submitted to the Legislative
Coordinating Commission Subcommittee on Employee Relations on October 29, 2015, as
amended by the technical correction resolution "SER-5" presented to the subcommittee on
March 8, 2016, is ratified.
new text end

new text begin Subd. 7. new text end

new text begin Office of Higher Education Unclassified Personnel Compensation Plan.
new text end

new text begin The Office of Higher Education Unclassified Personnel Compensation Plan, as submitted
to the Legislative Coordinating Commission Subcommittee on Employee Relations on
December 29, 2015, is ratified.
new text end

Sec. 6. new text beginSALARIES OF AGENCY HEADS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota State Retirement System. new text end

new text begin The proposal to increase the
salary of the executive director of the Minnesota State Retirement System, as submitted
to the Legislative Coordinating Commission Subcommittee on Employee Relations on
August 19, 2015, is ratified. The new salary is effective retroactively from July 1, 2015.
new text end

new text begin Subd. 2. new text end

new text begin Public Employees Retirement Association. new text end

new text begin The proposal to increase
the salary of the executive director of the Public Employees Retirement Association,
as submitted to the Legislative Coordinating Commission Subcommittee on Employee
Relations on September 3, 2015, is ratified. The new salary of $144,991 is effective
retroactively from July 1, 2015.
new text end

new text begin Subd. 3. new text end

new text begin Teachers Retirement Association. new text end

new text begin The proposal to increase the salary
of the executive director of the Teachers Retirement Association, as submitted to the
Legislative Coordinating Commission Subcommittee on Employee Relations on August
11, 2015, is ratified. The new salary is effective retroactively from July 1, 2015.
new text end

Sec. 7. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the next and subsequent editions of Minnesota Statutes, the revisor of statutes
shall remove from Minnesota Statutes, section 15A.0815, subdivision 2, the references to
the executive directors of the Public Employees Retirement Association, the Minnesota
State Retirement System, and the Teachers Retirement Association.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 8. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 4 to 6 are effective the day following final enactment. The salary ratified in
section 6, subdivision 1, is effective until modified after July 1, 2016, by the Board of the
Minnesota State Retirement System under Minnesota Statutes, section 352.03, subdivision
5. The salary ratified in section 6, subdivision 2, is effective until modified after July 1,
2016, by the Board of the Public Employee Retirement Association under Minnesota
Statutes, section 353.03, subdivision 3a. The salary ratified in section 6, subdivision 3,
is effective until modified after July 1, 2016, by the Board of the Teachers Retirement
Association under Minnesota Statutes, section 354.06, subdivision 2.
new text end