SF 3658

as introduced - 91st Legislature (2019 - 2020) Posted on 05/28/2020 09:27am

A bill for an act
relating to retirement; city of St. Paul; Independent School District No. 625, St.
Paul; Public Employees Retirement Association; authorizing contributions to the
PERA general plan and to multiemployer plans; proposing coding for new law in
Minnesota Statutes, chapter 356.

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

Section 1.

new text begin [356.27] CITY OF ST. PAUL AND INDEPENDENT SCHOOL DISTRICT
NO. 625, ST. PAUL; TRADE UNION AGREEMENTS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
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new text begin (b) "Building and construction trades" means categories of employees who perform
building construction, maintenance, or inspection services, including:
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new text begin (1) bricklayers;
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new text begin (2) carpenters;
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new text begin (3) cement masons;
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new text begin (4) electricians;
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new text begin (5) elevator constructors;
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new text begin (6) glaziers;
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new text begin (7) laborers;
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new text begin (8) operating engineers;
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new text begin (9) painters;
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new text begin (10) pipefitters;
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new text begin (11) plasterers;
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new text begin (12) plumbers;
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new text begin (13) roofers;
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new text begin (14) sheet metal workers; and
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new text begin (15) sprinkler fitters.
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new text begin Building and construction trades does not include machinists or teamsters.
new text end

new text begin (c) "Employers" means the city of St. Paul and Independent School District No. 625,
St. Paul.
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new text begin (d) "Grandfathered trades employees" means trades employees on whose behalf an
employer made contributions on or before June 30, 2020, to PERA and to one or more
multiemployer plans other than as provided in section 356.24, subdivision 1, clause (8), (9),
or (10).
new text end

new text begin (e) "Multiemployer plan" means a plan or fund subject to the federal Employee
Retirement Income Security Act of 1974, as amended, to which more than one employer
is required to contribute and that is maintained pursuant to one or more collective bargaining
agreements between one or more labor organizations and more than one employer. For
purposes of this section, a multiemployer plan may be: (1) either a defined benefit pension
plan or a defined contribution retirement plan; and (2) either a plan that covers one or more
local units in the state of Minnesota or a plan that covers union employees nationwide.
new text end

new text begin (f) "PERA" means the Public Employees Retirement Association general plan established
under chapter 353.
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new text begin (g) "Trades employees" means employees principally employed in one of the building
and construction trades.
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new text begin Subd. 2. new text end

new text begin Negotiating over contributions to multiemployer plans authorized. new text end

new text begin The
employers are authorized to negotiate with labor organizations representing trades employees'
collective bargaining agreements that provide for contributions to multiemployer plans on
the basis of hours worked or paid. Any provision must identify each multiemployer plan to
which contributions are to be made and, beginning with any such collective bargaining
agreement or renewal thereof entered into after July 1, 2020, must include the employer
identification number and plan number unique to the plan.
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new text begin Subd. 3. new text end

new text begin Participation in PERA. new text end

new text begin (a) In connection with services performed for an
employer under a collective bargaining agreement authorized by subdivision 2, a trades
employee first hired by the employer on or after July 1, 2020, shall not participate in PERA,
except for a trades employee whose employer makes contributions on behalf of the trades
employee to PERA and to one or more multiemployer plans as provided in section 356.24,
subdivision 1, clause (8), (9), or (10).
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new text begin (b) Grandfathered trades employees shall continue to participate in PERA according to
chapter 353 and in one or more multiemployer plans pursuant to a collective bargaining
agreement authorized by subdivision 2. Participation shall not be subject to section 356.24.
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new text begin Subd. 4. new text end

new text begin Employer's reporting obligation. new text end

new text begin (a) If an employer negotiates a collective
bargaining agreement authorized by subdivision 2 that covers grandfathered trades
employees, the employer shall annually submit a report that satisfies the requirements of
paragraph (b) to the executive director of the Legislative Commission on Pensions and
Retirement annually, no later than 60 days after the end of the employer's fiscal year.
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new text begin (b) The report shall provide for each labor organization the number of grandfathered
trades employees for whom the employer made contributions during the prior fiscal year.
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new text begin (c) After receiving a report from an employer, the executive director of the Legislative
Commission on Pensions and Retirement may request additional information that the
employer shall promptly provide.
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new text begin (d) The reporting obligation expires upon submission of a report for the last fiscal year
in which the employer makes a contribution to PERA with respect to a grandfathered trades
employee.
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new text begin EFFECTIVE DATE. new text end

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