Minnesota Legislature
SF 489
Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/17/2013 02:02pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 489
1.3relating to retirement; Minnesota State Retirement System, Public Employees
1.4Retirement Association, and former local police and paid firefighter relief
1.5associations; authorizing investments in swaps; clarifying language; removing
1.6obsolete language; revising outdated requirements; revising contribution
1.7rate revision procedures; revising disability standards and disability benefit
1.8administration procedures; merging the elected state officers retirement plan into
1.9the legislators retirement plan; revising pension commission standards provision;
1.10revising pension plan financial report contents provision; clarifying coverage of
1.11student employees and extending duration of excluded work-study positions;
1.12revising military service credit purchase provision for consistency with federal
1.13code; clarifying average salary for benefit purposes; clarifying MERF division
1.14benefit eligibility; adding Lake County Sunrise Home to privatization chapter;
1.15removing legislative approval requirements for privatizations; modifying
1.16legislative notification requirements for privatizations; clarifying privatized
1.17public hospital pension benefit eligibility; making various administrative
1.18changes; eliminating the PERA Social Security leveling optional annuity;
1.19revising and repealing various statutes to reflect the recent mergers of local police
1.20and salaried firefighter relief associations and consolidation accounts with the
1.21public employees police and fire retirement plan; streamlining amortization state
1.22aid programs; extending the deadline for participation in the voluntary statewide
1.23lump-sum volunteer firefighter retirement plan; requiring municipal approval
1.24for deferred service pension interest rate changes by volunteer firefighter relief
1.25association boards of trustees; authorizing a resumption of the payment of a
1.26death benefit to estates of certain White Bear Lake volunteer firefighter relief
1.27association retirees; including Minnesota Association of Professional Employees
1.28in MSRS-General plan coverage; authorizing the termination of nonspousal
1.29survival designations in optional annuity form elections in certain instances;
1.30authorizing certain service credit purchases; providing instructions to the revisor
1.31of statutes;amending Minnesota Statutes 2012, sections 3.85, subdivision 10;
1.323A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions
1.331, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions 1,
1.342, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031, subdivisions
1.351, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77, subdivisions
1.361, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774, subdivision
1.371; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381; 352.01,
1.38subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03, subdivisions
1.394, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4, 6, 8, by adding
1.40subdivisions; 352.115, subdivision 3; 352.22, subdivision 3; 352.87, subdivision
1.413; 352.93, subdivision 2; 352.95, subdivision 1; 352.955, subdivisions 1, 3;
1.42352B.011, subdivision 13; 352B.08, subdivision 2; 352B.10, subdivision 1, by
1.43adding a subdivision; 352D.04, subdivision 2; 353.01, subdivisions 2a, 2b, 6, 10,
2.116, 17a, 29; 353.03, subdivision 3; 353.27, subdivision 7; 353.29, subdivision
2.23; 353.34, subdivisions 1, 2; 353.50, subdivisions 3, 6; 353.64, subdivision 1a;
2.3353.651, subdivision 3; 353.656, subdivisions 1, 1a, 3a; 353.657, subdivisions 2,
2.42a, 3; 353.659; 353.665, subdivisions 1, 5, 8; 353.71, subdivision 1; 353E.04,
2.5subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3, 4, 6, by adding a
2.6subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04; 353F.05; 353F.051,
2.7subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08; 353G.05, subdivision
2.82; 354.07, subdivision 1; 354.44, subdivision 6; 354A.021, subdivision 2;
2.9354A.31, subdivisions 4, 4a; 356.20, subdivisions 2, 4; 356.214, subdivision 1;
2.10356.215, subdivisions 1, 8, 18; 356.216; 356.219, subdivisions 1, 2, 8; 356.30,
2.11subdivisions 1, 3; 356.315, subdivision 9; 356.401, subdivision 3; 356.406,
2.12subdivision 1; 356.415, subdivisions 1, 1a, 1b, 2; 356.48, subdivision 1; 356.635,
2.13subdivision 1; 356A.01, subdivision 19; 356A.06, subdivision 4; 356A.07,
2.14subdivision 2; 423A.02, subdivisions 1, 1b, 2, 3, 3a, 4, 5; 424A.001, subdivision
2.154, by adding a subdivision; 424A.01, subdivision 6; 424A.015, subdivisions 1,
2.164; 424A.016, subdivision 6; 424A.02, subdivisions 7, 9; 424A.10, subdivisions
2.171, 2; 475.52, subdivision 6; 490.121, subdivision 22; 490.124, subdivision
2.181; proposing coding for new law in Minnesota Statutes, chapters 3A; 6;
2.19353F; 356; repealing Minnesota Statutes 2012, sections 3A.02, subdivision 3;
2.2069.021, subdivision 6; 69.77, subdivision 3; 352.955, subdivision 2; 352C.001;
2.21352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3;
2.22353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691;
2.23353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08;
2.24353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04;
2.25353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12;
2.26353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3; 356.315,
2.27subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7, 8; 423A.01; 423A.02, subdivision
2.281a; 423A.04; 423A.05; 423A.07; 423A.10; 423A.11; 423A.12; 423A.13;
2.29423A.14; 423A.15; 423A.16; 423A.17; 423A.171; 423A.18; 423A.19; 423A.20;
2.30423A.21; 423A.22; 424A.10, subdivision 5.
2.31May 17, 2013
2.32The Honorable Sandra L. Pappas
2.33President of the Senate
2.34The Honorable Paul Thissen
2.35Speaker of the House of Representatives
2.36We, the undersigned conferees for S.F. No. 489 report that we have agreed upon the
2.37items in dispute and recommend as follows:
2.38That the House recede from its amendments and that S.F. No. 489 be further
2.39amended as follows:
2.40Delete everything after the enacting clause and insert:
2.43 Section 1. Minnesota Statutes 2012, section 11A.24, subdivision 1, is amended to read:
2.44 Subdivision 1. Securities generally. (a) Pursuant to an investment policy adopted
2.45by the state board, the state board is authorized to purchase, sell, lend, and exchange the
2.46securities specified in this section, for funds or accounts specifically made subject to this
2.47section,. This authority including includes puts and call options, and future contracts,
3.1and swap contracts marked to market, if these options and contracts are traded on a
3.2contract market regulated by a governmental agency or by a financial institution regulated
3.3by a governmental agency. These securities may be owned directly or through shares
3.4in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
3.5limitations as specified in this section.
3.6(b) Any agreement to lend securities must be concurrently collateralized with cash
3.7or securities with a market value of not less than 100 percent of the market value of the
3.8loaned securities at the time of the agreement. Any agreement for put and call options
3.9and futures contracts may only be entered into with a fully offsetting amount of cash or
3.10securities. Only securities authorized by this section, excluding those under subdivision 6,
3.11paragraph (a), clauses (1) to (3), may be accepted as collateral or offsetting securities.
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
3.15 Section 1. Minnesota Statutes 2012, section 3.85, subdivision 10, is amended to read:
3.16 Subd. 10. Standards for pension valuations and cost estimates. The commission
3.17shall adopt standards prescribing specific detailed methods to calculate, evaluate, and
3.18display current and proposed law liabilities, costs, and actuarial equivalents of all public
3.19employee pension plans in Minnesota. These standards shall be consistent with chapter
3.20356 and be updated annually. At a minimum, the standardsmust not shall contain a
3.21valuation requirement requirements that is inconsistent comply with generally accepted
3.22accounting principles applicable to government pension plans. The standards may include
3.23additional financial, funding, or valuation requirements that are not required under
3.24generally accepted accounting principles applicable to government pension plans.
3.25EFFECTIVE DATE.This section is effective the day following final enactment.
3.26 Sec. 2. Minnesota Statutes 2012, section 3A.011, is amended to read:
3.273A.011 ADMINISTRATION OFPLAN PLANS.
3.28 The executive director and the board of directors of the Minnesota State Retirement
3.29System shall administer thelegislators retirement plan plans specified in accordance this
3.30chapter consistent with this chapter andchapter chapters 356 and 356A.
3.31EFFECTIVE DATE.This section is effective July 1, 2013.
3.32 Sec. 3. Minnesota Statutes 2012, section 3A.03, subdivision 3, is amended to read:
4.1 Subd. 3. Legislators retirement fund. (a) The legislators retirement fund, a special
4.2retirement fund, is created within the state treasuryand must be credited with assets equal
4.3to the participation of the legislators retirement plan in the Minnesota postretirement
4.4investment fund as of June 30, 2009, and any investment proceeds on those assets. The
4.5legislators retirement fund must be credited with any investment proceeds on the assets of
4.6the retirement fund.
4.7(b) The payment of annuities under section3A.115 , paragraph (b), is appropriated
4.8from the legislators retirement fund.
4.9EFFECTIVE DATE.This section is effective July 1, 2013.
4.10 Sec. 4. Minnesota Statutes 2012, section 3A.07, is amended to read:
4.113A.07 APPLICATION.
4.12 (a) Except as provided in paragraph (b) and section 3A.17, this chapter applies
4.13to members of the legislature in service after July 1, 1965, who otherwise meet the
4.14requirements of this chapter.
4.15 (b) Members of the legislature who were elected for the first time after June 30,
4.161997, or members of the legislature who were elected before July 1, 1997, and who, after
4.17July 1, 1998, elect not to be members of the plan established by this chapter are covered
4.18by the unclassified employees retirement program governed by chapter 352D.
4.19 (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable
4.20and must be made on a form prescribed by the director. The second chance referendum
4.21election under Laws 2002, chapter 392, article 15, also is irrevocable.
4.22EFFECTIVE DATE.This section is effective July 1, 2013.
4.23 Sec. 5. Minnesota Statutes 2012, section 3A.115, is amended to read:
4.243A.115 RETIREMENT ALLOWANCE APPROPRIATION;
4.25POSTRETIREMENT ADJUSTMENT.
4.26(a) The amount necessary to fund the retirement allowance granted under this
4.27chapter to a former legislator retiring after June 30, 2003, or to that legislator's survivor,
4.28and the retirement allowance granted under section 3A.17 to a former constitutional
4.29officer or the survivor of that constitutional officer is appropriated from the general fund to
4.30the director to pay pension obligations due to the retiree.
4.31(b) The amount necessary to fund the retirement allowance granted under this
4.32chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators
4.33retirement fund created under section3A.03, subdivision 3 , until the assets of the fund
5.1are exhausted and at that time, the amount necessary to fund the retirement allowances
5.2under this paragraph is appropriated from the general fund to the director to pay pension
5.3obligations to the retiree and survivor.
5.4(c) Retirement allowances payable to retired legislators and their survivors under
5.5this chapter must be adjusted as provided in sections3A.02, subdivision 6 , and
356.415 .
5.6EFFECTIVE DATE.This section is effective July 1, 2013.
5.7 Sec. 6. Minnesota Statutes 2012, section 3A.13, is amended to read:
5.83A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH
5.9PREMIUM DEDUCTION.
5.10(a) The provisions of section356.401 apply to the legislators retirement plan plans
5.11specified in this chapter.
5.12(b) The executive director of the Minnesota State Retirement System must, at the
5.13request of a retired legislator or constitutional officer who is enrolled in a health insurance
5.14plan covering state employees, deduct the person's health insurance premiums from the
5.15person's annuity and transfer the amount of the premium to a health insurance carrier
5.16covering state employees.
5.17EFFECTIVE DATE.This section is effective July 1, 2013.
5.18 Sec. 7. Minnesota Statutes 2012, section 3A.15, is amended to read:
5.193A.15COORDINATED PROGRAM PROGRAMS OF THE LEGISLATORS
5.20RETIREMENT PLAN.
5.21The coordinated program of the legislators retirement plan is created. The provisions
5.22of sections3A.01 to
3A.13 apply to the coordinated program and basic programs of the
5.23legislators retirement plan.
5.24EFFECTIVE DATE.This section is effective July 1, 2013.
5.25 Sec. 8. [3A.17] CONSTITUTIONAL OFFICERS.
5.26 Subdivision 1. Application. (a) This section specifies the retirement plan applicable
5.27to a former constitutional officer who was first elected to a constitutional office after July
5.281, 1967, and before July 1, 1997. The plan includes the applicable portions of chapters
5.29352C and 356 in effect on the date on which the person terminated active service as a
5.30constitutional officer.
6.1(b) Nothing in this section, this act, or Laws 2006, chapter 271, article 10, section
6.233, subdivision 2, is intended to increase or reduce the benefits of former constitutional
6.3officers or their survivors or to adversely modify their eligibility for benefits in effect
6.4as of June 30, 2012.
6.5 Subd. 2. Benefit adjustments. Retirement allowances payable to retired
6.6constitutional officers and surviving spouse benefits payable must be adjusted under
6.7section 356.415.
6.8EFFECTIVE DATE.This section is effective July 1, 2013.
6.9 Sec. 9. Minnesota Statutes 2012, section 352.01, subdivision 17b, is amended to read:
6.10 Subd. 17b. Duty disability, physical or psychological. "Duty disability, physical
6.11or psychological," for a correctional employee, means an occupational disability that is
6.12the direct result of an injury incurred during, or a disease arising out of, the performance
6.13of normal duties or the performance of less frequent duties either of whichare present
6.14inherent dangers specific to the correctional employee.
6.15EFFECTIVE DATE.This section is effective the day following final enactment.
6.16 Sec. 10. Minnesota Statutes 2012, section 352.03, subdivision 8, is amended to read:
6.17 Subd. 8. Medical adviser. Thestate commissioner of health or other executive
6.18director may contract with an accredited independent organization specializing in
6.19disability determinations, licensedphysician physicians, or physicians on the staff of the
6.20commissioner of health as designated by the commissionermay designate shall, to be the
6.21medical adviserof to the director system.
6.22EFFECTIVE DATE.This section is effective the day following final enactment.
6.23 Sec. 11. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
6.24to read:
6.25 Subd. 3a. Contribution rate revision; general state employees retirement plan.
6.26(a) Notwithstanding the contribution rates stated in plan law, the employee and employer
6.27contribution rates for the general state employees retirement plan must be adjusted:
6.28(1) if the regular actuarial valuation of the plan under section 356.215 indicates that
6.29there is a contribution sufficiency greater than one percent of covered payroll and that the
6.30sufficiency has existed for at least two consecutive years, the employee and employer
6.31contribution rates must be decreased as determined under paragraph (b) to a level such
7.1that the sufficiency is no greater than one percent of covered payroll based on the most
7.2recent actuarial valuation; or
7.3(2) if the regular actuarial valuation of the plan under section 356.215 indicates that
7.4there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll
7.5and that the deficiency has existed for at least two consecutive years, the employee and
7.6employer contribution rates must be increased as determined under paragraph (c) to a level
7.7such that no deficiency exists based on the most recent actuarial valuation.
7.8(b) If the actuarially required contribution of the plan is less than the total support
7.9provided by the combined employee and employer contribution rates by more than one
7.10percent of covered payroll, the plan employee and employer contribution rates must be
7.11decreased incrementally over one or more years by no more than 0.25 percent of pay
7.12each for employee and employer contribution rates to a level such that there remains a
7.13contribution sufficiency of at least one percent of covered payroll. No contribution rate
7.14decrease may be made until at least two years have elapsed since any adjustment under
7.15this paragraph has been fully implemented.
7.16(c) If the actuarially required contribution exceeds the total support provided by the
7.17employee and employer contribution rates, the employee and employer contribution rates
7.18must be increased equally to eliminate that contribution deficiency. If the contribution
7.19deficiency is:
7.20(1) less than two percent, the incremental increase may be up to 0.25 percent each
7.21for the employee and employer contribution rates;
7.22(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase
7.23may be up to 0.5 percent each for the employee and employer contribution rates; or
7.24(3) greater than four percent, the incremental increase may be up to 0.75 percent
7.25each for the employee and employer contribution.
7.26(d) Any recommended adjustment to the contribution rates must be reported to
7.27the chair and the executive director of the Legislative Commission on Pensions and
7.28Retirement by January 15 following receipt of the most recent annual actuarial valuation
7.29prepared under section356.215 . The report must include draft legislation to revise the
7.30employee and employer contributions stated in plan law. If the Legislative Commission
7.31on Pensions and Retirement does not recommend against the rate change or does not
7.32recommend a modification in the rate change, the recommended adjustment becomes
7.33effective on the first day of the first full payroll period in the fiscal year following receipt
7.34of the most recent actuarial valuation that gave rise to the adjustment.
8.1(e) A contribution sufficiency of up to one percent of covered payroll must be held
8.2in reserve to be used to offset any future actuarially required contributions that are more
8.3than the total combined employee and employer contributions.
8.4(f) Before any reduction in contributions to eliminate a sufficiency in excess of one
8.5percent of covered pay may be recommended, the executive director must review any
8.6need for a change in actuarial assumptions, as recommended by the actuary retained under
8.7section356.214 in the most recent experience study of the general employees retirement
8.8plan prepared under section356.215 and the standards for actuarial work promulgated by
8.9the Legislative Commission on Pensions and Retirement that may result in an increase
8.10in the actuarially required contribution and must report to the Legislative Commission
8.11on Pensions and Retirement any recommendation by the board to use the sufficiency
8.12exceeding one percent of covered payroll to offset the impact of an actuarial assumption
8.13change recommended by the actuary retained under section356.214, subdivision 1 , and
8.14reviewed by the actuary retained by the commission under section356.214, subdivision 4 .
8.15(g) No contribution sufficiency in excess of one percent of covered pay may be
8.16proposed to be used to increase benefits, and no benefit increase may be proposed that
8.17would initiate an automatic adjustment to increase contributions under this subdivision.
8.18Any proposed benefit improvement must include a recommendation, prepared by the
8.19actuary retained under section356.214, subdivision 1 , and reviewed by the actuary
8.20retained by the Legislative Commission on Pensions and Retirement as provided under
8.21section356.214, subdivision 4 , on how the benefit modification will be funded.
8.22EFFECTIVE DATE.This section is effective the day following final enactment.
8.23 Sec. 12. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
8.24to read:
8.25 Subd. 3b. Contribution rate revision; correctional state employees retirement
8.26plan and State Patrol retirement plan. (a) Subdivision 3a applies to the correctional
8.27state employees retirement plan under this chapter and to the State Patrol retirement plan
8.28established under chapter 352B, except as stated in this subdivision.
8.29(b) Any limitations on the amount of contribution rate changes stated in subdivision
8.303a apply only to the amount of the employee contribution revision. The employer
8.31contribution for the correctional state employees retirement plan or the State Patrol
8.32retirement plan, whichever is applicable, must be adjusted so that the employer
8.33contribution is equal to 60 percent of the sum of employee plus employer contributions.
9.1(c) For the State Patrol retirement plan, a contribution sufficiency of up to two
9.2percent of covered payroll, rather than one percent, may be held in reserves without taking
9.3action to reduce employee and employer contributions.
9.4EFFECTIVE DATE.This section is effective the day following final enactment.
9.5 Sec. 13. Minnesota Statutes 2012, section 352.113, subdivision 4, is amended to read:
9.6 Subd. 4. Medical or psychological examinations; authorization for payment of
9.7benefit. (a) Any physician, psychologist, chiropractor, or physician assistant providing
9.8any service specified in this section must be licensed.
9.9(b) An applicant shall providemedical, chiropractic, or psychological a detailed
9.10report signed by a physician, and at least one additional report signed by a physician,
9.11chiropractor, psychologist, or physician assistant with evidence to support an application
9.12for total and permanent disability.
9.13(b) The director shall have the employee examined by at least one additional
9.14licensed chiropractor, physician, or psychologist designated by the medical adviser. The
9.15chiropractors, physicians, or psychologists shall make written reports to the director
9.16concerning the employee's disability including must include an expert opinions as to
9.17 opinion regarding whether the employee is permanently and totally disabled within
9.18the meaning of section352.01, subdivision 17 , and that the disability arose before the
9.19employee was placed on any paid or unpaid leave of absence or terminated public service.
9.20(c) If there is medical evidence that supports the expectation that at some point
9.21the person applying for the disability benefit will no longer be disabled, the decision
9.22granting the disability benefit may provide for a termination date upon which the total and
9.23permanent disability can be expected to no longer exist. When a termination date is part
9.24of the decision granting benefits, prior to the benefit termination the executive director
9.25shall review any evidence provided by the disabled employee to show that the disabling
9.26condition for which benefits were initially granted continues. If the benefits cease, the
9.27disabled employee may follow the appeal procedures described in section 356.96 or may
9.28reapply for disability benefits using the process described in this subdivision.
9.29(d) Any claim to disability must be supported by a report from the employer
9.30indicating that there is no available work that the employee can perform with the disabling
9.31condition and that all reasonable accommodations have been considered. Upon request of
9.32the executive director, an employer shall provide evidence of the steps the employer has
9.33taken to attempt to provide reasonable accommodations and continued employment to
9.34the claimant.
10.1(c) (e) The director shall also obtain written certification from the employer
10.2stating whether the employment has ceased or whether the employee is on sick leave of
10.3absence because of a disability that will prevent further service to the employer andas a
10.4consequence that the employee is not entitled to compensation from the employer.
10.5(d) (f) The medical adviser shall consider the reports of the physicians, physician
10.6assistants, psychologists, and chiropractors and any other evidence supplied by the
10.7employee or other interested parties. If the medical adviser finds the employee totally and
10.8permanently disabled, the adviser shall make appropriate recommendation to the director
10.9in writing together with the date from which the employee has been totally disabled. The
10.10director shall then determine if the disability occurred within 18 months of filing the
10.11application, while still in the employment of the state, and the propriety of authorizing
10.12payment of a disability benefit as provided in this section.
10.13(e) (g) A terminated employee may apply for a disability benefit within 18 months of
10.14termination as long as the disability occurred while in the employment of the state. The
10.15fact that an employee is placed on leave of absence without compensation because of
10.16disability does not bar that employee from receiving a disability benefit.
10.17(f) (h) Unless the payment of a disability benefit has terminated because the
10.18employee is no longer totally disabled, or because the employee has reached normal
10.19retirement age as provided in this section, the disability benefit must cease with the last
10.20payment received by the disabled employee or which had accrued during the lifetime of the
10.21employee unless there is a spouse surviving. In that event, the surviving spouse is entitled
10.22to the disability benefit for the calendar month in which the disabled employee died.
10.23EFFECTIVE DATE.This section is effective the day following final enactment.
10.24 Sec. 14. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
10.25to read:
10.26 Subd. 4a. Independent medical examination or vocational rehabilitation
10.27counseling. Any individual applying for or receiving disability benefits shall submit
10.28to an independent medical examination or an assessment by a certified rehabilitation
10.29counselor if requested by the executive director or designee. The examination must be
10.30paid for by the system.
10.31EFFECTIVE DATE.This section is effective the day following final enactment.
10.32 Sec. 15. Minnesota Statutes 2012, section 352.113, subdivision 6, is amended to read:
11.1 Subd. 6. Regular medical or psychological examinations. At least once each
11.2year during the first five years following the allowance of a disability benefit to any
11.3employee, and at least once in every three-year period thereafter, the director may require
11.4any disabled employee toundergo a provide medical, chiropractic, or psychological
11.5examination evidence to support the continuation of the total and permanent disability.
11.6Theexamination must be made at the place of residence of the employee, or at any place
11.7mutually agreed upon, evidence must be in a form and manner prescribed by the executive
11.8director for review by an expert or experts designated by the medical adviser and engaged
11.9by the director. Ifany examination indicates the medical information provided to the
11.10medical adviser indicates that the employee is no longer permanently and totally disabled,
11.11or is engaged in or can engage in a gainful occupation, payments of the disability benefit
11.12by the fund must be discontinued. The payments must be discontinued as soon as the
11.13employee is reinstated to the payroll following a sick leave of absence, but in no case may
11.14payment be made for more than 60 days after the medical adviser finds that the employee
11.15is no longer permanently and totally disabled.
11.16EFFECTIVE DATE.This section is effective the day following final enactment.
11.17 Sec. 16. Minnesota Statutes 2012, section 352.113, subdivision 8, is amended to read:
11.18 Subd. 8. Refusal of examination. If adisabled employee person applying for a
11.19disability benefit refuses to submit toan expert a medical or psychological examination,
11.20the disability application shall be rejected. If a disability benefit recipient refuses to submit
11.21to a medical or psychological examination as required, payments by the fund must be
11.22discontinued and the director shall revoke all rights of the employee in any disability benefit.
11.23EFFECTIVE DATE.This section is effective the day following final enactment.
11.24 Sec. 17. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
11.25to read:
11.26 Subd. 14. Disabilitant earnings reports. Disability benefit recipients must report
11.27all earnings from reemployment and income from workers' compensation to the system
11.28annually by May 15 in a format prescribed by the executive director. If the form is not
11.29submitted by June 15, benefits must be suspended effective July 1. If the form deemed
11.30acceptable by the executive director is received after the June 15 deadline, benefits shall
11.31be reinstated retroactive to July 1.
11.32EFFECTIVE DATE.This section is effective the day following final enactment.
12.1 Sec. 18. Minnesota Statutes 2012, section 352.22, subdivision 3, is amended to read:
12.2 Subd. 3. Deferred annuity. (a) An employee who has at least three years of
12.3allowable service if employed before July 1, 2010, or who has at least five years of
12.4allowable service if employed after June 30, 2010, when termination occurs may elect
12.5to leave the accumulated contributions in the fund and thereby be entitled to a deferred
12.6retirement annuity. The annuity must be computed under the law in effect when state
12.7service terminated, on the basis of the allowable service credited to the person before
12.8the termination of service.
12.9(b) An employee on layoff or on leave of absence without pay, except a leave of
12.10absence for health reasons, and who does not return to state service must have an annuity,
12.11deferred annuity, or other benefit to which the employee may become entitled computed
12.12under the law in effect on the employee's last working day.
12.13(c) No application for a deferred annuity may be made more than 60 days before
12.14the time the former employee reaches the required age for entitlement to the payment of
12.15the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date
12.16the application is filed in the office of the system, but not (1) before the date on which
12.17the employee reaches the required age for entitlement to the annuity nor (2) before the
12.18day following the termination of state service in a position which is not covered by the
12.19retirement system.
12.20(d) Application for the accumulated contributions left on deposit with the fund may
12.21be made at any time following the date of the termination of service.
12.22(e) Deferred annuities must be augmented as provided in section 352.72, subdivision
12.232.
12.24EFFECTIVE DATE.This section is effective the day following final enactment.
12.25 Sec. 19. Minnesota Statutes 2012, section 352.955, subdivision 1, is amended to read:
12.26 Subdivision 1. Election to transfer prior MSRS-general service credit. (a) An
12.27eligible employee described in paragraph (b) may elect to transfer service credit in the
12.28general state employees retirement plan of the Minnesota State Retirement System to the
12.29correctional state employees retirement plan for eligible prior correctional employment.
12.30 (b) An eligible employee is a person who is covered byLaws 2007, chapter 134,
12.31article 3, section 6, or who became eligible for retirement coverage by the correctional
12.32state employees retirement plan of the Minnesota State Retirement System under Laws
12.332006, chapter 271, article 2, Laws 2007, chapter 134, article 3, or legislation implementing
12.34the recommendations under section352.91, subdivision 4a .
13.1 (c) Eligible prior correctional employment is employment coveredcorrectional
13.2service defined in Laws 2007, chapter 134, article 3, section 6, or is employment by the
13.3Department of Corrections or by the Department of Human Services that preceded the
13.4effective date of the retirement coverage transfer under Laws 2006, chapter 271, article
13.52, Laws 2007, chapter 134, article 3, or legislation implementing the recommendations
13.6under section
352.91, subdivision 4a
13.7the Minnesota State Retirement System, is continuous service, and is certified by the
13.8commissioner of corrections and the commissioner of human services, whichever applies,
13.9and by the commissioner of management and budget to the executive director of the
13.10Minnesota State Retirement System as service that would qualify for correctional state
13.11employees retirement plan coverage under section352.91 , if the service was had been
13.12rendered after the date of coverage transfer.
13.13 (d) The election to transfer past service credit under this section must be made in
13.14writing by the applicable person on a form prescribed by the executive director of the
13.15Minnesota State Retirement System and must be filed with the executive director of the
13.16Minnesota State Retirement System on or before(1) January 1, 2008, or the one year
13.17anniversary of the coverage transfer, whichever is later, or (2) the date of the eligible
13.18employee's termination of state employment, whichever is earlier.
13.19EFFECTIVE DATE.This section is effective the day following final enactment.
13.20 Sec. 20. Minnesota Statutes 2012, section 352.955, subdivision 3, is amended to read:
13.21 Subd. 3. Payment of additional equivalent contributions; post-June 30, 2007,
13.22coverage transfers. (a) An eligible employee who is transferred to plan coverage after
13.23June 30, 2007, and who elects to transfer past service credit under this section must pay
13.24an additional member contribution for that prior service period. The additional member
13.25contribution is the amount computed under paragraph (b), plus the greater of the amount
13.26computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability
13.27attributable to the past service credit transfer.
13.28 (b) The executive director shall compute, for the most recent 12 months of service
13.29credit eligible for transfer, or for the entire period eligible for transfer if less than 12
13.30months, the difference between the employee contribution rate or rates for the general state
13.31employees retirement plan and the employee contribution rate or rates for the correctional
13.32state employees retirement plan applied to the eligible employee's salary during that
13.33transfer period, plus compound interest at a monthly rate of 0.71 percent.
13.34 (c) The executive director shall compute, for any service credit being transferred
13.35on behalf of the eligible employee and not included under paragraph (b), the difference
14.1between the employee contribution rate or rates for the general state employees retirement
14.2plan and the employee contribution rate or rates for the correctional state employees
14.3retirement plan applied to the eligible employee's salary during that transfer period, plus
14.4compound interest at a monthly rate of 0.71 percent.
14.5 (d) The executive director shall compute an amount using the process specified in
14.6paragraph (b), but based on differences in employer contribution rates between the general
14.7state employees retirement plan and the correctional state employees retirement plan
14.8rather than employee contribution rates.
14.9 (e) The executive director shall compute an amount using the process specified in
14.10paragraph (c), but based on differences in employer contribution rates between the general
14.11state employees retirement plan and the correctional state employees retirement plan
14.12rather than employee contribution rates.
14.13 (f) The additional equivalent member contribution under this subdivision must be
14.14paid in a lump sum. Payment must accompany the election to transfer the prior service
14.15credit. No transfer election or additional equivalent member contribution payment may be
14.16made by a person or accepted by the executive director after the one year anniversary date
14.17of the effective date of the retirement coverage transfer, or the date on which the eligible
14.18employee terminates state employment, whichever is earlier.
14.19 (g) If an eligible employee elects to transfer past service credit under this section
14.20and pays the additional equivalent member contribution amount under paragraph (a), the
14.21applicable department shall pay an additional equivalent employer contribution amount.
14.22The additional employer contribution is the amount computed under paragraph (d), plus
14.23the greater of the amount computed under paragraph (e), or 60 percent of the unfunded
14.24actuarial accrued liability attributable to the past service credit transfer.
14.25 (h) The unfunded actuarial accrued liability attributable to the past service credit
14.26transfer is the present value of the benefit obtained by the transfer of the service credit
14.27to the correctional state employees retirement plan reduced by the amount of the asset
14.28transfer under subdivision 4, by the amount of the member contribution equivalent
14.29payment computed under paragraph (b), and by the amount of the employer contribution
14.30equivalent payment computed under paragraph (d).
14.31 (i) The additional equivalent employer contribution under this subdivision must be
14.32paid in a lump sum and must be paid within 30 days of the date on which the executive
14.33director of the Minnesota State Retirement System certifies to the applicable department
14.34that the employee paid the additional equivalent member contribution.
14.35EFFECTIVE DATE.This section is effective the day following final enactment.
15.1 Sec. 21. Minnesota Statutes 2012, section 352B.011, subdivision 13, is amended to read:
15.2 Subd. 13. Surviving spouse. "Surviving spouse" means a member's or former
15.3member's legally married spousewho resided with the member or former member at the
15.4time of deathand was married to the member or former member, for a period of at least
15.5one year, during or before the time of membership.
15.6EFFECTIVE DATE.This section is effective the day following final enactment.
15.7 Sec. 22. Minnesota Statutes 2012, section 352B.10, is amended by adding a
15.8subdivision to read:
15.9 Subd. 7. Disabilitant earnings reports. Disability benefit recipients must report
15.10all earnings from reemployment and income from workers' compensation to the system
15.11annually by May 15 in a format prescribed by the executive director. If the form is not
15.12submitted by June 15, benefits must be suspended effective July 1. If the form deemed
15.13acceptable by the executive director is received after the June 15 deadline, benefits shall
15.14be reinstated retroactive to July 1.
15.15EFFECTIVE DATE.This section is effective the day following final enactment.
15.16 Sec. 23. Minnesota Statutes 2012, section 352D.04, subdivision 2, is amended to read:
15.17 Subd. 2. Contribution rates. (a) The money used to purchase shares under this
15.18section is the employee and employer contributions provided in this subdivision.
15.19 (b) The employee contribution is an amount equal to the percent of salary specified
15.20in section352.04, subdivision 2 , or
352.045, subdivision 3 3a.
15.21 (c) The employer contribution is an amount equal to six percent of salary.
15.22 (d) For members of the legislature, the contributions under this subdivision also must
15.23be made on per diem payments received during a regular or special legislative session, but
15.24may not be made on per diem payments received outside of a regular or special legislative
15.25session, on the additional compensation attributable to a leadership position under section
15.263.099
, subdivision 3, living expense payments under section
3.101 , or special session
15.27living expense payments under section3.103 .
15.28 (e) For a judge who is a member of the unclassified plan under section352D.02 ,
15.29subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
15.30of salary, and there is no employer contribution.
15.31(f) These contributions must be made in the manner provided in section352.04 ,
15.32subdivisions 4, 5, and 6.
15.33EFFECTIVE DATE.This section is effective the day following final enactment.
16.1 Sec. 24. Minnesota Statutes 2012, section 356.20, subdivision 4, is amended to read:
16.2 Subd. 4. Contents of financial report. (a) The financial report required by
16.3this section must contain financial statements and disclosures that indicate the financial
16.4operations and position of the retirement plan and fund. The report must conform with
16.5generally accepted governmental accounting principles, applied on a consistent basis. The
16.6report must be audited.
16.7 (b) The report must include, as part of its exhibits or its footnotes, an actuarial
16.8disclosure item based on a statement that the actuarial valuation calculations prepared
16.9by the actuary retained under section356.214 or by the actuary retained by the
16.10retirement fund or plan, whichever applies,according to comply with applicable actuarial
16.11requirements enumerated in section356.215 , and specified in the most recent standards
16.12for actuarial work adopted by the Legislative Commission on Pensions and Retirement.
16.13The actuarial value of assets, the actuarial accrued liabilities,including accrued reserves,
16.14 and the unfunded actuarial accrued liability of the fund or plan must be disclosed. The
16.15disclosure item report must contain a declaration certification by the actuary retained
16.16under section356.214 or the actuary retained by the fund or plan, whichever applies,
16.17specifying thatthe required reserves for any retirement, disability, or survivor normal
16.18cost and the actuarial accrued liabilities for all benefitsprovided under a benefit formula
16.19 are computed in accordance with the entry age actuarial cost method and in accordance
16.20with the most recent applicable standards for actuarial work adopted by the Legislative
16.21Commission on Pensions and Retirement.
16.22 (c) The report must contain an itemized exhibit describing the administrative
16.23expenses of the plan, including, but not limited to, the following items, classified on a
16.24consistent basis from year to year, and with any further meaningful detail:
16.25 (1) personnel expenses;
16.26 (2) communication-related expenses;
16.27 (3) office building and maintenance expenses;
16.28 (4) professional services fees; and
16.29 (5) other expenses.
16.30 (d) The report must contain an itemized exhibit describing the investment expenses
16.31of the plan, including, but not limited to, the following items, classified on a consistent
16.32basis from year to year, and with any further meaningful detail:
16.33 (1) internal investment-related expenses; and
16.34 (2) external investment-related expenses.
16.35 (e) Any additional statements or exhibits or more detailed or subdivided itemization
16.36of a disclosure item that will enable the management of the plan to portray a true
17.1interpretation of the plan's financial condition must be included in the additional
17.2statements or exhibits.
17.3EFFECTIVE DATE.This section is effective the day following final enactment.
17.4 Sec. 25. Minnesota Statutes 2012, section 356.214, subdivision 1, is amended to read:
17.5 Subdivision 1. Actuary retention. (a) The governing board or managing or
17.6administrative official of each public pension plan and retirement fund or plan enumerated
17.7in paragraph (b) shall contract with an established actuarial consulting firm to conduct
17.8annual actuarial valuations and related services. The principal from the actuarial
17.9consulting firm on the contract must be an approved actuary under section356.215,
17.10subdivision 1 , paragraph (c).
17.11 (b) Actuarial services must include the preparation of actuarial valuations and
17.12related actuarial work for the following retirement plans:
17.13 (1) the teachers retirement plan, Teachers Retirement Association;
17.14 (2) the general state employees retirement plan, Minnesota State Retirement System;
17.15 (3) the correctional employees retirement plan, Minnesota State Retirement System;
17.16 (4) the State Patrol retirement plan, Minnesota State Retirement System;
17.17 (5) the judges retirement plan, Minnesota State Retirement System;
17.18 (6) the general employees retirement plan, Public Employees Retirement
17.19Association, including the MERF division;
17.20 (7) the public employees police and fire plan, Public Employees Retirement
17.21Association;
17.22 (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
17.23Association;
17.24 (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
17.25Association;
17.26 (10) the legislators retirement plan, Minnesota State Retirement System; and
17.27(11) the elective state officers retirement plan, Minnesota State Retirement System;
17.28and
17.29(12) (11) the local government correctional service retirement plan, Public
17.30Employees Retirement Association.
17.31(c) The actuarial valuation for the legislators retirement plan must include a separate
17.32calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
17.33under section 3A.17.
17.34(c) (d) The contracts must require completion of the annual actuarial valuation
17.35calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
18.1as specified in section356.215 , and in conformity with the standards for actuarial work
18.2adopted by the Legislative Commission on Pensions and Retirement.
18.3 The contracts must require completion of annual experience data collection and
18.4processing and a quadrennial published experience study for the plans listed in paragraph
18.5(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
18.6the commission. The experience data collection, processing, and analysis must evaluate
18.7the following:
18.8 (1) individual salary progression;
18.9 (2) the rate of return on investments based on the current asset value;
18.10 (3) payroll growth;
18.11 (4) mortality;
18.12 (5) retirement age;
18.13 (6) withdrawal; and
18.14 (7) disablement.
18.15(d) (e) The actuary shall annually prepare a report to the governing or managing
18.16board or administrative official and the legislature, summarizing the results of the actuarial
18.17valuation calculations. The actuary shall include with the report any recommendations
18.18concerning the appropriateness of the support rates to achieve proper funding of
18.19the retirement plans by the required funding dates. The actuary shall, as part of the
18.20quadrennial experience study, include recommendations on the appropriateness of the
18.21actuarial valuation assumptions required for evaluation in the study.
18.22(e) (f) If the actuarial gain and loss analysis in the actuarial valuation calculations
18.23indicates a persistent pattern of sizable gains or losses, the governing or managing board
18.24or administrative official shall direct the actuary to prepare a special experience study for
18.25a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the
18.26manner provided for in the standards for actuarial work adopted by the commission.
18.27EFFECTIVE DATE.This section is effective July 1, 2013.
18.28 Sec. 26. Minnesota Statutes 2012, section 356.215, subdivision 1, is amended to read:
18.29 Subdivision 1. Definitions. (a) For the purposes of sections3.85 and
356.20 to
18.30356.23
, each of the terms in the following paragraphs has the meaning given.
18.31 (b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
18.32under section356.214 if so required under section
3.85 , or otherwise, by an approved
18.33actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
18.34plan, according to the entry age actuarial cost method and based upon stated assumptions
18.35including, but not limited to rates of interest, mortality, salary increase, disability,
19.1withdrawal, and retirement and to determine the payment necessary to amortize over a
19.2stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
19.3valuation of the benefit plan.
19.4 (c) "Approved actuary" means a person who is regularly engaged in the business of
19.5providing actuarial services and who is a fellow in the Society of Actuaries.
19.6 (d) "Entry age actuarial cost method" means an actuarial cost method under which
19.7the actuarial present value of the projected benefits of each individual currently covered
19.8by the benefit plan and included in the actuarial valuation is allocated on a level basis over
19.9the service of the individual, if the benefit plan is governed by section69.773 , or over the
19.10earnings of the individual, if the benefit plan is governed by any other law, between the
19.11entry age and the assumed exit age, with the portion of the actuarial present value which is
19.12allocated to the valuation year to be the normal cost and the portion of the actuarial present
19.13value not provided for at the valuation date by the actuarial present value of future normal
19.14costs to be the actuarial accrued liability, with aggregation in the calculation process to be
19.15the sum of the calculated result for each covered individual and with recognition given to
19.16any different benefit formulas which may apply to various periods of service.
19.17 (e) "Experience study" means a report providing experience data and an actuarial
19.18analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
19.19based.
19.20 (f) "Actuarial value of assets" means:
19.21(1) For the July 1, 2012, actuarial valuation, the market value of all assets as of
19.22June 30, 2012, reduced by:
19.23(i) 20 percent of the difference between the actual net change in the market value of
19.24assets other than the Minnesota postretirement investment fund between June 30, 2009,
19.25and June 30, 2008, and the computed increase in the market value of assets other than the
19.26Minnesota postretirement investment fund over that fiscal year period if the assets had
19.27earned a rate of return on assets equal to the annual percentage preretirement interest rate
19.28assumption used in the actuarial valuation for July 1, 2008;
19.29(ii) 40 percent of the difference between the actual net change in the market value of
19.30total assets between June 30, 2010, and June 30, 2009, and the computed increase in the
19.31market value of total assets over that fiscal year period if the assets had earned a rate of
19.32return on assets equal to the annual percentage preretirement interest rate assumption used
19.33in the actuarial valuation for July 1, 2009;
19.34(iii) 60 percent of the difference between the actual net change in the market value
19.35of total assets between June 30, 2011, and June 30, 2010, and the computed increase in the
19.36market value of total assets over that fiscal year period if the assets had earned a rate of
20.1return on assets equal to the annual percentage preretirement interest rate assumption used
20.2in the actuarial valuation for July 1, 2010;
20.3(iv) 80 percent of the difference between the actual net change in the market value of
20.4total assets between June 30, 2012, and June 30, 2011, and the computed increase in the
20.5market value of total assets over that fiscal year period if the assets had earned a rate of
20.6return on assets equal to the annual percentage preretirement interest rate assumption used
20.7in the actuarial valuation for July 1, 2011; and
20.8(v) if applicable, 20 percent of the difference between the actual net change in the
20.9market value of the Minnesota postretirement investment fund between June 30, 2009,
20.10and June 30, 2008, and the computed increase in the market value of assets over that fiscal
20.11year period if the assets had increased at 8.5 percent annually.
20.12(2) For the July 1, 2013, and following actuarial valuations, the market value of all
20.13assets as of the preceding June 30, reduced by:
20.14(i) (1) 20 percent of the difference between the actual net change in the market value
20.15of total assets between the June 30 that occurred three years earlier and the June 30 that
20.16occurred four years earlier and the computed increase in the market value of total assets
20.17over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.18annual percentage preretirement interest rate assumption used in the actuarial valuation
20.19for the July 1 that occurred four years earlier;
20.20(ii) (2) 40 percent of the difference between the actual net change in the market value
20.21of total assets between the June 30 that occurred two years earlier and the June 30 that
20.22occurred three years earlier and the computed increase in the market value of total assets
20.23over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.24annual percentage preretirement interest rate assumption used in the actuarial valuation
20.25for the July 1 that occurred three years earlier;
20.26(iii) (3) 60 percent of the difference between the actual net change in the market
20.27value of total assets between the June 30 that occurred one year earlier and the June 30 that
20.28occurred two years earlier and the computed increase in the market value of total assets
20.29over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.30annual percentage preretirement interest rate assumption used in the actuarial valuation
20.31for the July 1 that occurred two years earlier; and
20.32(iv) (4) 80 percent of the difference between the actual net change in the market
20.33value of total assets between the most recent June 30 and the June 30 that occurred
20.34one year earlier and the computed increase in the market value of total assets over that
20.35fiscal year period if the assets had earned a rate of return on assets equal to the annual
21.1percentage preretirement interest rate assumption used in the actuarial valuation for the
21.2July 1 that occurred one year earlier.
21.3 (g) "Unfunded actuarial accrued liability" means the total current and expected
21.4future benefit obligations, reduced by the sum of the actuarial value of assets and the
21.5present value of future normal costs.
21.6 (h) "Pension benefit obligation" means the actuarial present value of credited
21.7projected benefits, determined as the actuarial present value of benefits estimated to be
21.8payable in the future as a result of employee service attributing an equal benefit amount,
21.9including the effect of projected salary increases and any step rate benefit accrual rate
21.10differences, to each year of credited and expected future employee service.
21.11EFFECTIVE DATE.This section is effective the day following final enactment.
21.12 Sec. 27. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
21.13 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
21.14the applicable following preretirement interest assumption and the applicable following
21.15postretirement interest assumption:
21.16(1) select and ultimate interest rate assumption
21.38Except for the legislators retirement plan and theelective state constitutional officers
21.39retirement plan calculation of total plan liabilities, the select preretirement interest rate
21.40assumption for the period after June 30, 2012, through June 30, 2017, is 8.0 percent.
22.1Except for the legislators retirement plan and theelective state constitutional officers
22.2retirement plan calculation of total plan liabilities, the select postretirement interest rate
22.3assumption for the period after June 30, 2012, through June 30, 2017, is 5.5 percent,
22.4except for the Duluth teachers retirement plan and the St. Paul teachers retirement plan,
22.5each with a select postretirement interest rate assumption for the period after June 30,
22.62012, through June 30, 2017, of 8.0 percent.
22.7(2) single rate preretirement and postretirement interest rate assumption
22.13 (b) The actuarial valuation must use the applicable following single rate future salary
22.14increase assumption, the applicable following modified single rate future salary increase
22.15assumption, or the applicable following graded rate future salary increase assumption:
22.16 (1) single rate future salary increase assumption
22.22 (2) age-related future salary increase age-related select and ultimate future salary
22.23increase assumption or graded rate future salary increase assumption
22.28For plans other than the Duluth teachers
22.29retirement plan, the select calculation
22.30is: during the designated select period, a
22.31designated percentage rate is multiplied by
22.32the result of the designated integer minus T,
22.33where T is the number of completed years
22.34of service, and is added to the applicable
22.35future salary increase assumption. The
22.36designated select period is ten years and the
22.37designated integer is ten for all retirement
23.1plans covered by this clause. The designated
23.2percentage rate is 0.3 percent for the St. Paul
23.3Teachers Retirement Fund Association. The
23.4select calculation for the Duluth Teachers
23.5Retirement Fund Association is 8.00 percent
23.6per year for service years one through seven,
23.77.25 percent per year for service years seven
23.8and eight, and 6.50 percent per year for
23.9service years eight and nine.
23.10 The ultimate future salary increase assumption is:
24.26(3) service-related ultimate future salary increase assumption
25.25 (c) The actuarial valuation must use the applicable following payroll growth
25.26assumption for calculating the amortization requirement for the unfunded actuarial
25.27accrued liability where the amortization retirement is calculated as a level percentage
25.28of an increasing payroll:
26.1 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
26.2different salary assumption or a different payroll increase assumption:
26.3 (1) has been proposed by the governing board of the applicable retirement plan;
26.4 (2) is accompanied by the concurring recommendation of the actuary retained under
26.5section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
26.6most recent actuarial valuation report if section356.214 does not apply; and
26.7 (3) has been approved or deemed approved under subdivision 18.
26.8EFFECTIVE DATE.This section is effective July 1, 2013.
26.9 Sec. 28. Minnesota Statutes 2012, section 356.30, subdivision 3, is amended to read:
26.10 Subd. 3. Covered plans. This section applies to the following retirement plans:
26.11(1) the general state employees retirement plan of the Minnesota State Retirement
26.12System, established under chapter 352;
26.13(2) the correctional state employees retirement plan of the Minnesota State
26.14Retirement System, established under chapter 352;
26.15(3) the unclassified employees retirement program, established under chapter 352D;
26.16(4) the State Patrol retirement plan, established under chapter 352B;
26.17(5) the legislators retirement plan, established under chapter 3A, including
26.18constitutional officers as specified in that chapter;
26.19(6) the elective state officers retirement plan, established under chapter 352C;
26.20(7) (6) the general employees retirement plan of the Public Employees Retirement
26.21Association, established under chapter 353, including the MERF division of the Public
26.22Employees Retirement Association;
26.23(8) (7) the public employees police and fire retirement plan of the Public Employees
26.24Retirement Association, established under chapter 353;
26.25(9) (8) the local government correctional service retirement plan of the Public
26.26Employees Retirement Association, established under chapter 353E;
26.27(10) (9) the Teachers Retirement Association, established under chapter 354;
26.28(11) (10) the St. Paul Teachers Retirement Fund Association, established under
26.29chapter 354A;
26.30(12) (11) the Duluth Teachers Retirement Fund Association, established under
26.31chapter 354A; and
26.32(13) (12) the judges retirement fund, established by chapter 490.
26.33EFFECTIVE DATE.This section is effective July 1, 2013.
27.1 Sec. 29. Minnesota Statutes 2012, section 356.401, subdivision 3, is amended to read:
27.2 Subd. 3. Covered retirement plans. The provisions of this section apply to the
27.3following retirement plans:
27.4(1) the legislators retirement plan, established by chapter 3A, including constitutional
27.5officers as specified in that chapter;
27.6(2) the general state employees retirement plan of the Minnesota State Retirement
27.7System, established by chapter 352;
27.8(3) the correctional state employees retirement plan of the Minnesota State
27.9Retirement System, established by chapter 352;
27.10(4) the State Patrol retirement plan, established by chapter 352B;
27.11(5) the elective state officers retirement plan, established by chapter 352C;
27.12(6) (5) the unclassified state employees retirement program, established by chapter
27.13352D;
27.14(7) (6) the general employees retirement plan of the Public Employees Retirement
27.15Association, established by chapter 353, including the MERF division of the Public
27.16Employees Retirement Association;
27.17(8) (7) the public employees police and fire plan of the Public Employees Retirement
27.18Association, established by chapter 353;
27.19(9) (8) the public employees defined contribution plan, established by chapter 353D;
27.20(10) (9) the local government correctional service retirement plan of the Public
27.21Employees Retirement Association, established by chapter 353E;
27.22(11) (10) the voluntary statewide lump-sum volunteer firefighter retirement plan,
27.23established by chapter 353G;
27.24(12) (11) the Teachers Retirement Association, established by chapter 354;
27.25(13) (12) the Duluth Teachers Retirement Fund Association, established by chapter
27.26354A;
27.27(14) (13) the St. Paul Teachers Retirement Fund Association, established by chapter
27.28354A;
27.29(15) (14) the individual retirement account plan, established by chapter 354B;
27.30(16) (15) the higher education supplemental retirement plan, established by chapter
27.31354C; and
27.32(17) (16) the judges retirement fund, established by chapter 490.
27.33EFFECTIVE DATE.This section is effective July 1, 2013.
27.34 Sec. 30. Minnesota Statutes 2012, section 356.415, subdivision 1a, is amended to read:
28.1 Subd. 1a. Annual postretirement adjustments; Minnesota State Retirement
28.2System plans other than State Patrol retirement plan. (a) Retirement annuity, disability
28.3benefit, or survivor benefit recipients of the legislators retirementplan plans, including
28.4constitutional officers as specified in chapter 3A, the general state employees retirement
28.5plan, the correctional state employees retirement plan,the elected state officers retirement
28.6plan, the unclassified state employees retirement program, and the judges retirement plan
28.7are entitled to a postretirement adjustment annually on January 1, as follows:
28.8(1) a postretirement increase of two percent must be applied each year, effective
28.9on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
28.10who has been receiving an annuity or a benefit for at least 18 full months before the
28.11January 1 increase; and
28.12(2) for each annuitant or benefit recipient who has been receiving an annuity or
28.13a benefit for at least six full months, an annual postretirement increase of 1/12 of two
28.14percent for each month that the person has been receiving an annuity or benefit must be
28.15applied, effective January 1, following the calendar year in which the person has been
28.16retired for at least six months, but has been retired for less than 18 months.
28.17(b) The increases provided by this subdivision commence on January 1, 2011.
28.18Increases under this subdivision for the general state employees retirement plan, the
28.19correctional state employees retirement plan, or the judges retirement plan terminate
28.20on December 31 of the calendar year in which the actuarial valuation prepared by the
28.21approved actuary under sections356.214 and
356.215 and the standards for actuarial work
28.22promulgated by the Legislative Commission on Pensions and Retirement indicates that the
28.23market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial
28.24accrued liability of the retirement plan and increases under subdivision 1 recommence
28.25after that date. Increases under this subdivision for the legislators retirement plan or the
28.26elected state officers retirement plan terminate on December 31 of the calendar year in
28.27which the actuarial valuation prepared by the approved actuary under sections356.214 and
28.28356.215
and the standards for actuarial work promulgated by the Legislative Commission
28.29on Pensions and Retirement indicates that the market value of assets of the general state
28.30employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability
28.31of the retirement plan and increases under subdivision 1 recommence after that date.
28.32(c) An increase in annuity or benefit payments under this subdivision must be made
28.33automatically unless written notice is filed by the annuitant or benefit recipient with the
28.34executive director of the applicable covered retirement plan requesting that the increase
28.35not be made.
28.36EFFECTIVE DATE.This section is effective July 1, 2013.
29.1 Sec. 31. Minnesota Statutes 2012, section 356.415, subdivision 2, is amended to read:
29.2 Subd. 2. Covered retirement plans. The provisions of this section apply to the
29.3following retirement plans:
29.4(1) the legislators retirement plan established under chapter 3A, including
29.5constitutional officers as specified in that chapter;
29.6(2) the correctional state employees retirement plan of the Minnesota State
29.7Retirement System established under chapter 352;
29.8(3) the general state employees retirement plan of the Minnesota State Retirement
29.9System established under chapter 352;
29.10(4) the State Patrol retirement plan established under chapter 352B;
29.11(5) the elective state officers retirement plan established under chapter 352C;
29.12(6) (5) the general employees retirement plan of the Public Employees Retirement
29.13Association established under chapter 353, including the MERF division of the Public
29.14Employees Retirement Association;
29.15(7) (6) the public employees police and fire retirement plan of the Public Employees
29.16Retirement Association established under chapter 353;
29.17(8) (7) the local government correctional employees retirement plan of the Public
29.18Employees Retirement Association established under chapter 353E;
29.19(9) (8) the teachers retirement plan established under chapter 354; and
29.20(10) (9) the judges retirement plan established under chapter 490.
29.21EFFECTIVE DATE.This section is effective July 1, 2013.
29.22 Sec. 32. APPLICATION AND INTENT.
29.23Sections 2 to 8 and 25 to 31 merge the remaining provisions of the elective
29.24state officers retirement plan into the legislators retirement plan chapter to achieve
29.25administrative savings, including reduced cost for actuarial calculations. Nothing in those
29.26sections should be interpreted as modifying benefits or benefit eligibility compared to law
29.27in effect immediately before the effective date of this section.
29.28EFFECTIVE DATE.This section is effective July 1, 2013.
29.29 Sec. 33. REPEALER.
29.30(a) Minnesota Statutes 2012, sections 3A.02, subdivision 3; 352C.001; 352C.091,
29.31subdivision 1; and 352C.10, are repealed.
29.32(b) Minnesota Statutes 2012, sections 352.045, subdivisions 3 and 4; and 352.955,
29.33subdivision 2, are repealed.
30.1EFFECTIVE DATE.Paragraph (a) is effective July 1, 2013. Paragraph (b) is
30.2effective the day following final enactment.
30.5 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
30.6 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
30.7to participate as members of the association with retirement coverage by the general
30.8employees retirement plan, the local government correctional employees retirement plan
30.9under chapter 353E, or the public employees police and fire retirement plan:
30.10 (1) persons whose salary from one governmental subdivision never exceeds $425 in
30.11a month;
30.12(2) public officers who are elected to a governing body, city mayors, or persons who
30.13are appointed to fill a vacancy in an elective office of a governing body, whose term of office
30.14commences on or after July 1, 2002, for the service to be rendered in that elective position;
30.15 (3) election officers or election judges;
30.16 (4) patient and inmate personnel who perform services for a governmental
30.17subdivision;
30.18 (5) except as otherwise specified in subdivision 12a, employees who are hired for
30.19a temporary position as defined under subdivision 12a, and employees who resign from
30.20a nontemporary position and accept a temporary position within 30 days in the same
30.21governmental subdivision;
30.22 (6) employees who are employed by reason of work emergency caused by fire,
30.23flood, storm, or similar disaster;
30.24 (7) employees who by virtue of their employment in one governmental subdivision
30.25are required by law to be a member of and to contribute to any of the plans or funds
30.26administered by the Minnesota State Retirement System, the Teachers Retirement
30.27Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers
30.28Retirement Fund Association, or any police or firefighters relief association governed by
30.29section69.77 that has not consolidated with the Public Employees Retirement Association,
30.30or any local police or firefighters consolidation account who have not elected the type of
30.31benefit coverage provided by the public employees police and fire fund under sections
30.32353A.01
to
353A.10 , or any persons covered by section
353.665, subdivision 4 , 5, or 6,
30.33who have not elected public employees police and fire plan benefit coverage. This clause
30.34must not be construed to prevent a person from being a member of and contributing to
30.35the Public Employees Retirement Association and also belonging to and contributing to
31.1another public pension plan or fund for other service occurring during the same period
31.2of time. A person who meets the definition of "public employee" in subdivision 2 by
31.3virtue of other service occurring during the same period of time becomes a member of the
31.4association unless contributions are made to another public retirement fund on the salary
31.5based on the other service or to the Teachers Retirement Association by a teacher as
31.6defined in section354.05, subdivision 2 ;
31.7 (8) persons who are members of a religious order and are excluded from coverage
31.8under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
31.9performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
31.10as amended through January 1, 1987, if no irrevocable election of coverage has been made
31.11under section 3121(r) of the Internal Revenue Code of 1954, as amended;
31.12 (9) employees of a governmental subdivision who have not reached the age of
31.1323 and are enrolled on a full-time basis to attend or are attending classes on a full-time
31.14basis at an accredited school, college, or university in an undergraduate, graduate, or
31.15professional-technical program, or a public or charter high school;
31.16 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
31.17interns who are serving in a degree or residency program in public hospitals or clinics;
31.18 (11) students who are serving for up to five years in an internship or residency program
31.19sponsored by a governmental subdivision, including an accredited educational institution;
31.20 (12) persons who hold a part-time adult supplementary technical college license who
31.21render part-time teaching service in a technical college;
31.22 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
31.23foreign citizens who are employed by a governmental subdivision under a work permit, or
31.24an H-1b visa initially issued or extended for a combined period less than three years of
31.25employment. Upon extension of the employment beyond the three-year period, the foreign
31.26citizens must be reported for membership beginning the first of the month thereafter
31.27provided the monthly earnings threshold as provided under subdivision 2a is met;
31.28 (14) public hospital employees who elected not to participate as members of the
31.29association before 1972 and who did not elect to participate from July 1, 1988, to October
31.301, 1988;
31.31 (15) except as provided in section353.86 , volunteer ambulance service personnel, as
31.32defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
31.33may still qualify as public employees under subdivision 2 and may be members of the
31.34Public Employees Retirement Association and participants in the general employees
31.35retirement plan or the public employees police and fire plan, whichever applies, on the
32.1basis of compensation received from public employment service other than service as
32.2volunteer ambulance service personnel;
32.3 (16) except as provided in section353.87 , volunteer firefighters, as defined in
32.4subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
32.5but a person who is a volunteer firefighter may still qualify as a public employee under
32.6subdivision 2 and may be a member of the Public Employees Retirement Association and
32.7a participant in the general employees retirement plan or the public employees police
32.8and fire plan, whichever applies, on the basis of compensation received from public
32.9employment activities other than those as a volunteer firefighter;
32.10 (17) pipefitters and associated trades personnel employed by Independent School
32.11District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
32.12pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
32.13if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
32.14241, article 2, section 12;
32.15 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
32.16are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
32.17who have retirement coverage under a collective bargaining agreement by the Electrical
32.18Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
32.19or the pension plan applicable to Carpenters Local 87 who were either first employed after
32.20May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
32.21Laws 2000, chapter 461, article 7, section 5;
32.22 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
32.23painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
32.24or Independent School District No. 625, St. Paul, with coverage under a collective
32.25bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
32.26the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
32.27pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
32.28Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
32.29first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
32.30Session chapter 10, article 10, section 6;
32.31 (20) plumbers who are employed by the Metropolitan Airports Commission, with
32.32coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
32.33who either were first employed after May 1, 2001, or if first employed before May 2,
32.342001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
32.3510, section 6;
33.1 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
33.2subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
33.3days or less in each year of employment with the governmental subdivision;
33.4 (22) persons who are provided supported employment or work-study positions by a
33.5governmental subdivision and who participate in an employment or industries program
33.6maintained for the benefit of these persons where the governmental subdivision limits
33.7the position's duration up tothree five years or less, including persons participating in a
33.8federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
33.9unemployment relief program where the training or work experience is not provided as a
33.10part of, or for, future permanent public employment;
33.11 (23) independent contractors and the employees of independent contractors;
33.12 (24) reemployed annuitants of the association during the course of that
33.13reemployment; and
33.14(25) persons appointed to serve on a board or commission of a governmental
33.15subdivision or an instrumentality thereof.
33.16(b) Any person performing the duties of a public officer in a position defined in
33.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
33.18employee of an independent contractor.
33.19EFFECTIVE DATE.This section is effective the day following final enactment.
33.20 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
33.21 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
33.22means:
33.23 (1) service during years of actual membership in the course of which employee
33.24deductions were withheld from salary and contributions were made at the applicable rates
33.25under section353.27 ,
353.65 , or
353E.03 ;
33.26(2) periods of service covered by payments in lieu of salary deductions under
33.27sections353.27, subdivision 12 , and
353.35 ;
33.28 (3) service in years during which the public employee was not a member but for
33.29which the member later elected, while a member, to obtain credit by making payments to
33.30the fund as permitted by any law then in effect;
33.31 (4) a period of authorized leave of absence with pay from which deductions for
33.32employee contributions are made, deposited, and credited to the fund;
33.33 (5) a period of authorized personal, parental, or medical leave of absence without
33.34pay, including a leave of absence covered under the federal Family Medical Leave Act,
33.35that does not exceed one year, and for which a member obtained service credit for each
34.1month in the leave period by payment under section353.0161 to the fund made in place of
34.2salary deductions. An employee must return to public service and render a minimum of
34.3three months of allowable service in order to be eligible to make payment under section
34.4353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
34.5employee must be granted allowable service credit for the purchased period;
34.6 (6) a periodic, repetitive leave that is offered to all employees of a governmental
34.7subdivision. The leave program may not exceed 208 hours per annual normal work cycle
34.8as certified to the association by the employer. A participating member obtains service
34.9credit by making employee contributions in an amount or amounts based on the member's
34.10average salary, excluding overtime pay, that would have been paid if the leave had not been
34.11taken. The employer shall pay the employer and additional employer contributions on
34.12behalf of the participating member. The employee and the employer are responsible to pay
34.13interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
34.14from the end of the normal cycle until full payment is made. An employer shall also make
34.15the employer and additional employer contributions, plus 8.5 percent interest, compounded
34.16annually, on behalf of an employee who makes employee contributions but terminates
34.17public service. The employee contributions must be made within one year after the end of
34.18the annual normal working cycle or within 30 days after termination of public service,
34.19whichever is sooner. The executive director shall prescribe the manner and forms to be
34.20used by a governmental subdivision in administering a periodic, repetitive leave. Upon
34.21payment, the member must be granted allowable service credit for the purchased period;
34.22 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
34.23months allowable service per authorized temporary or seasonal layoff in one calendar year.
34.24An employee who has received the maximum service credit allowed for an authorized
34.25temporary or seasonal layoff must return to public service and must obtain a minimum of
34.26three months of allowable service subsequent to the layoff in order to receive allowable
34.27service for a subsequent authorized temporary or seasonal layoff;
34.28 (8) a period during which a member is absent from employment by a governmental
34.29subdivision by reason of service in the uniformed services, as defined in United States
34.30Code, title 38, section 4303(13), if the member returns to public service with the same
34.31governmental subdivision upon discharge from service in the uniformed service within the
34.32time frames required under United States Code, title 38, section 4312(e), provided that
34.33the member did not separate from uniformed service with a dishonorable or bad conduct
34.34discharge or under other than honorable conditions. The service must be credited if the
34.35member pays into the fund equivalent employee contributions based upon the contribution
34.36rate or rates in effect at the time that the uniformed service was performed multiplied
35.1by the full and fractional years being purchased and applied to the annual salary rate.
35.2The annual salary rate is the average annual salary, excluding overtime pay, during the
35.3purchase period that the member would have received if the member had continued to
35.4be employed in covered employment rather than to provide uniformed service, or, if
35.5the determination of that rate is not reasonably certain, the annual salary rate is the
35.6member's average salary rate, excluding overtime pay, during the 12-month period of
35.7covered employment rendered immediately preceding the period of the uniformed service.
35.8Payment of the member equivalent contributions must be made during a period that begins
35.9with the date on which the individual returns to public employment and that is three times
35.10the length of the military leave period, or within five years of the date of discharge from
35.11the military service, whichever is less. If the determined payment period is less than
35.12one year, the contributions required under this clause to receive service credit may be
35.13made within one year of the discharge date. Payment may not be accepted following 30
35.14days after termination of public service under subdivision 11a. If the member equivalent
35.15contributions provided for in this clause are not paid in full, the member's allowable
35.16service credit must be prorated by multiplying the full and fractional number of years of
35.17uniformed service eligible for purchase by the ratio obtained by dividing the total member
35.18contributions received by the total member contributions otherwise required under this
35.19clause. The equivalent employer contribution, and, if applicable, the equivalent additional
35.20employer contribution must be paid by the governmental subdivision employing the
35.21member if the member makes the equivalent employee contributions. The employer
35.22payments must be made from funds available to the employing unit, using the employer
35.23and additional employer contribution rate or rates in effect at the time that the uniformed
35.24service was performed, applied to the same annual salary rate or rates used to compute the
35.25equivalent member contribution. The governmental subdivision involved may appropriate
35.26money for those payments. The amount of service credit obtainable under this section may
35.27not exceed five years unless a longer purchase period is required under United States Code,
35.28title 38, section 4312. The employing unit shall pay interest on all equivalent member and
35.29employer contribution amounts payable under this clause. Interest must be computed at a
35.30rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the
35.31break in service to the end of the month in which the payment is received. Upon payment,
35.32the employee must be granted allowable service credit for the purchased period; or
35.33(9) a period specified under section353.0162 .
35.34 (b) For calculating benefits under sections353.30 ,
353.31 ,
353.32 , and
353.33 for
35.35state officers and employees displaced by the Community Corrections Act, chapter 401,
35.36and transferred into county service under section401.04 , "allowable service" means the
36.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
36.2section352.01, subdivision 11 .
36.3 (c) For a public employee who has prior service covered by a local police or
36.4firefighters relief association that has consolidated with the Public Employees Retirement
36.5Association under chapter 353A or to which section353.665 applies, and who has
36.6elected the type of benefit coverage provided by the public employees police and fire
36.7fund either under section353A.08 following the consolidation or under section
353.665,
36.8subdivision 4 , "allowable service" is a period of service credited by the local police or
36.9firefighters relief association as of the effective date of the consolidation based on law
36.10and on bylaw provisions governing the relief association on the date of the initiation
36.11of the consolidation procedure.
36.12 (d) No member may receive more than 12 months of allowable service credit in a
36.13year either for vesting purposes or for benefit calculation purposes. For an active member
36.14who was an active member of the former Minneapolis Firefighters Relief Association
36.15on December 29, 2011, "allowable service" is the period of service credited by the
36.16Minneapolis Firefighters Relief Association as reflected in the transferred records of the
36.17association up to December 30, 2011, and the period of service credited under paragraph
36.18(a), clause (1), after December 30, 2011. For an active member who was an active member
36.19of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
36.20service" is the period of service credited by the Minneapolis Police Relief Association as
36.21reflected in the transferred records of the association up to December 30, 2011, and the
36.22period of service credited under paragraph (a), clause (1), after December 30, 2011.
36.23 (e) MS 2002 [Expired]
36.24EFFECTIVE DATE.This section is effective the day following final enactment.
36.25 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
36.26 Subd. 17a. Average salary. (a) "Average salary,"for purposes of calculating a
36.27retirement annuity under section
353.29, subdivision 3
36.28an amount equivalent to the average of the highest salary of the member, police officer,
36.29or firefighter, whichever applies, upon which employee contributions were paid for any
36.30five successive years of allowable service, based on dates of salary periods as listed on
36.31salary deduction reports. Average salary must be based upon all allowable service if
36.32this service is less than five years.
36.33(b) "Average salary" may not include any reduced salary paid during a period
36.34in which the employee is entitled to benefit payments from workers' compensation for
36.35temporary disability, unless the average salary is higher, including this period.
37.1(c) "Average salary," for purposes of calculating benefits for a surviving spouse or
37.2dependent children under section 353.657, subdivision 2 or 3, means the average of the
37.3full-time monthly base salary rate in effect during the last six months of allowable service.
37.4If the employment during the last six months of allowable service was part-time, the
37.5average salary must be prorated based on the actual number of hours worked.
37.6EFFECTIVE DATE.This section is effective the day following final enactment.
37.7 Sec. 4. Minnesota Statutes 2012, section 353.01, subdivision 29, is amended to read:
37.8 Subd. 29. Designated beneficiary. "Designated beneficiary" means the personor,
37.9 organization, trust, or estate designated by a member, former member,disabilitant, or
37.10retired member in writing, signed and filed with the association before the death of the
37.11member, former member, disabilitant, or retired member, or a person legally authorized
37.12to act on behalf of the member or former member to receive a refund of the balance of
37.13the member's or former member's accumulated deductions after death. A beneficiary
37.14designation is valid if it is made in the form prescribed by the executive director and
37.15is received by the association on or before the date of death of the member or former
37.16member. If a beneficiary designation is deemed to be invalid for any reason, any remaining
37.17balance of the member's or former member's accumulated deductions are subject to the
37.18provisions of section 353.32, subdivisions 4 and 5.
37.19EFFECTIVE DATE.This section is effective the day following final enactment.
37.20 Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 7, is amended to read:
37.21 Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except
37.22as provided in paragraph (b), erroneous employee deductions and erroneous employer
37.23contributions and additional employer contributions to the general employees retirement
37.24plan of the Public Employees Retirement Association or to the public employees police
37.25and fire retirement plan for a person who otherwise does not qualify for membership
37.26under this chapter, are considered:
37.27(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
37.28determination of the error by the association, the person may continue membership in the
37.29association while employed in the same position for which erroneous deductions were
37.30taken, or file a written election to terminate membership and apply for a refund upon
37.31termination of public service or defer an annuity under section353.34 ; or
37.32(2) invalid, if the initial erroneous employee deduction began on or after January 1,
37.331990. Upon determination of the error, the association shall refund all erroneous employee
38.1deductions and all erroneous employer contributions as specified in paragraph (e). No
38.2person may claim a right to continued or past membership in the association based on
38.3erroneous deductions which began on or after January 1, 1990.
38.4(b) Erroneous deductions taken from the salary of a person who did not qualify
38.5for membership in the general employees retirement plan of the Public Employees
38.6Retirement Association or in the public employees police and fire retirement plan by
38.7virtue of concurrent employment before July 1, 1978, which required contributions to
38.8another retirement fund or relief association established for the benefit of officers and
38.9employees of a governmental subdivision, are invalid. Upon discovery of the error,
38.10allowable service credit for all invalid service if forfeited and, upon termination of public
38.11service, the association shall refund all erroneous employee deductions to the person, with
38.12interest as determined under section353.34, subdivision 2 , and all erroneous employer
38.13contributions without interest to the employer. This paragraph has both retroactive and
38.14prospective application.
38.15(c) Adjustments to correct employer contributions and employee deductions taken
38.16in error from amounts which are not salary under section353.01, subdivision 10 , must
38.17be made as specified in paragraph (e). The period of adjustment must be limited to the
38.18fiscal year in which the error is discovered by the association and the immediate two
38.19preceding fiscal years.
38.20(d) If there is evidence of fraud or other misconduct on the part of the employee or
38.21the employer, the board of trustees may authorize adjustments to the account of a member
38.22or former member to correct erroneous employee deductions and employer contributions
38.23on invalid salary and the recovery of any overpayments for a period longer than provided
38.24for under paragraph (c).
38.25(e) Upon discovery of the receipt of erroneous employee deductions and employer
38.26contributions under paragraph (a), clause (2), or paragraph (c), the association must require
38.27the employer to discontinue the erroneous employee deductions and erroneous employer
38.28contributions reported on behalf of a member. Upon discontinuation, the association must:
38.29(1) for a member, provide a refund in the amount of the invalid employee deductions
38.30with interest on the invalid employee deductions at the rate specified under section353.34,
38.31subdivision 2 , from the received date of each invalid salary transaction through the date
38.32the credit or refund is made;
38.33(2) for a former member who:
38.34(i) is not receiving a retirement annuity or benefit, return the erroneous employee
38.35deductions to the former member through a refund with interest at the rate specified under
39.1section353.34, subdivision 2 , from the received date of each invalid salary transaction
39.2through the date the credit or refund is made; or
39.3(ii) is receiving a retirement annuity or disability benefit, or a person who is
39.4receiving an optional annuity or survivor benefit, for whom it has been determined an
39.5overpayment must be recovered, adjust the payment amount and recover the overpayments
39.6as provided under this section; and
39.7(3) return the invalid employer contributions reported on behalf of a member or
39.8former member to the employer by providing a credit against future contributions payable
39.9by the employer.
39.10(f) In the event that a salary warrant or check from which a deduction for the
39.11retirement fund was taken has been canceled or the amount of the warrant or check
39.12returned to the funds of the department making the payment, a refund of the sum
39.13deducted, or any portion of it that is required to adjust the deductions, must be made
39.14to the department or institution.
39.15(g) If theaccrual date of any association discovers that a retirement annuity, survivor
39.16benefit, or disability benefitis within the limitation period specified in paragraph (c), and
39.17an overpayment has resulted has been incorrectly calculated by using invalid service or
39.18salary, or due to any erroneous calculation procedure, the association must recalculate
39.19the annuity or benefit payable andrecover any begin payment of the corrected annuity or
39.20benefit effective the first of the month following discovery of the error. Any overpayment
39.21resulting from the incorrect calculation must be recovered as provided under subdivision
39.227b, if the accrual date, or any adjustment in the amount of the annuity or benefit calculated
39.23after the accrual date, except adjustments required under section 353.656, subdivision 4,
39.24falls within the current fiscal year and the two immediate previous fiscal years.
39.25(h) Notwithstanding the provisions of this subdivision, the association may apply
39.26the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
39.27Compliance Resolution System and not issue a refund of erroneous employee deductions
39.28and employer contributions or not recover a small overpayment of benefits if the cost to
39.29correct the error would exceed the amount of the member refund or overpayment.
39.30(i) Any fees or penalties assessed by the federal Internal Revenue Service for any
39.31failure by an employer to follow the statutory requirements for reporting eligible members
39.32and salary must be paid by the employer.
39.33EFFECTIVE DATE.This section is effective the day following final enactment.
39.34 Sec. 6. Minnesota Statutes 2012, section 353.34, subdivision 1, is amended to read:
40.1 Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to
40.2either a refund of accumulated employee deductions under subdivision 2, or to a deferred
40.3annuity under subdivision 3. Application for a refund may not be made before the date of
40.4termination of public service.Except as specified in paragraph (b), A refund must be paid
40.5within 120 days following receipt of the application unless the applicant has again become
40.6a public employee required to be covered by the association.
40.7(b) If an individual was placed on layoff under section353.01 , subdivision 12 or 12c,
40.8a refund is not payable before termination of service under section353.01, subdivision 11a .
40.9(c) An individual who terminates public service covered by the Public Employees
40.10Retirement Association general employees retirement plan, the MERF division, the Public
40.11Employees Retirement Association police and fire retirement plan, or the public employees
40.12local government correctional service retirement plan, and who is employed by a different
40.13employer and who becomes an active member covered by one of the other two plans, may
40.14receive a refund of employee contributions plus annual compound interest from the plan
40.15from which the member terminated service at the applicable rate specified in subdivision 2.
40.16EFFECTIVE DATE.This section is effective the day following final enactment.
40.17 Sec. 7. Minnesota Statutes 2012, section 353.34, subdivision 2, is amended to read:
40.18 Subd. 2. Refund with interest. (a) Except as provided in subdivision 1, any person
40.19who ceases to be a public employee is entitled to receive a refund in an amount equal to
40.20accumulated deductions with annual compound interest to the first day of the month
40.21in which the refund is processed.
40.22(b) For a person who ceases to be a public employee before July 1, 2011, the refund
40.23interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
40.24June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
40.25refund interest is at the rate of four percent.
40.26(c) If a person repays a refund and subsequently applies for another refund, the
40.27repayment amount, including interest, is added to the fiscal year balance in which the
40.28repayment was made.
40.29(d) If the refund payable to a member is based on employee deductions that are
40.30determined to be invalid under section 353.27, subdivision 7, the interest payable on the
40.31invalid employee deductions is four percent.
40.32EFFECTIVE DATE.This section is effective the day following final enactment.
40.33 Sec. 8. Minnesota Statutes 2012, section 353.50, subdivision 3, is amended to read:
41.1 Subd. 3. Service credit and benefit liability transfer. (a) All allowable service
41.2credit and salary credit of the members of the Minneapolis Employees Retirement Fund
41.3as specified in the records of the Minneapolis Employees Retirement Fund through June
41.430, 2010, are transferred to the MERF division of the Public Employees Retirement
41.5Association and are credited by the MERF division.Annuities or benefits of persons
41.6who are active members of the former Minneapolis Employees Retirement Fund on
41.7June 30, 2010, must be calculated under Minnesota Statutes 2008, sections
422A.11;
41.8422A.12;
422A.13;
422A.14;
422A.15;
422A.151;
422A.155;
422A.156;
422A.16;
41.9422A.17;
422A.18;
422A.19;
422A.20; and
422A.23, but are only eligible for automatic
41.10postretirement adjustments after December 31, 2010, under section
356.415.
41.11(b) The liability for the payment of annuities and benefits of the Minneapolis
41.12Employees Retirement Fund retirees and benefit recipients as specified in the records of
41.13the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the
41.14MERF division of the Public Employees Retirement Association on June 30, 2010.
41.15EFFECTIVE DATE.This section is effective the day following final enactment.
41.16 Sec. 9. Minnesota Statutes 2012, section 353.50, subdivision 6, is amended to read:
41.17 Subd. 6. Benefits. (a) Retired, disabled, deferred, and inactive member benefits.
41.18The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive
41.19Minneapolis Employees Retirement Fund members with that status as of June 30, 2010,
41.20with the exception of post-December 31, 2010, postretirement adjustments, which
41.21are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections
41.22422A.11
;
422A.12 ;
422A.13 ;
422A.14 ;
422A.15 ;
422A.151 ;
422A.155 ;
422A.156 ;
41.23422A.16
;
422A.17 ;
422A.18 ;
422A.19 ;
422A.20 ; and
422A.23 , continue in force after the
41.24administrative consolidation under Laws 2010, chapter 359, article 11.
41.25(b) Benefits; benefit eligibility for June 30, 2010, active members. Persons who
41.26were active members of the former Minneapolis Employees Retirement Fund on June
41.2730, 2010, upon satisfying eligibility requirements stated in the applicable sections of
41.28Minnesota Statutes 2008 specified in paragraph (a), are entitled to annuities or benefits
41.29specified in those sections. Eligibility for a formula retirement annuity includes the
41.30requirement in Minnesota Statutes 2008, sections 422A.13 and 422A.16, that the
41.31terminating member has attained retirement age, which is age 60 if the person has at least
41.32ten years of service credit, or any age if the person has 30 or more years of service credit.
41.33(b) (c) Postretirement adjustments. After December 31, 2010, annuities and
41.34benefits from the MERF division are eligible for annual automatic postretirement
41.35adjustments solely under section356.415 .
42.1EFFECTIVE DATE.This section is effective the day following final enactment.
42.2 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2, is amended to read:
42.3 Subd. 2. Benefit amount. (a) The spouse of a deceased member is entitled to
42.4receive a monthly benefit for life equal to the following percentage of the member's
42.5averagefull-time monthly salary rate, as defined in section 353.01, subdivision 17a,
42.6paragraph (c), as a member of the police and fire planin effect over the last six months of
42.7allowable service preceding the month in which death occurred:
42.8 (1) if the death was a line of duty death, 60 percent of thestated average salary
42.9is payable; and
42.10 (2) if the death was not a line of duty death or if death occurred while receiving
42.11disability benefits that accrued before July 1, 2007, 50 percent of thestated average salary
42.12is payable.
42.13 (b)If the member was a part-time employee in the position for which the employee
42.14qualified for participation in the police and fire plan, the monthly survivor benefit is based
42.15on the salary rate in effect for that member's part-time service during the last six months
42.16of allowable service. If the member's status changed from full time to part time for due
42.17to health reasons during the lastyear 12 months of employment, notwithstanding the
42.18definition of average salary in section 353.01, subdivision 17a, paragraph (c), the average
42.19salary used to compute the monthly survivor benefitis must be based on the full-time
42.20salary rate of the position held as a member of the police and fire plan in effect over the
42.21last six months of allowable service preceding the month in which the death occurred.
42.22EFFECTIVE DATE.This section is effective the day following final enactment.
42.23 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
42.24 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
42.25who has attained the age of at least 50 years and either who is vested under section
42.26353.01, subdivision 47
, or who has credit for at least 30 years of allowable service,
42.27regardless of age attained, dies before the annuity or disability benefit becomes payable,
42.28notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
42.29elect to receive a death while eligible survivor benefit.
42.30 (b) Notwithstanding the definition of surviving spouse in section353.01, subdivision
42.3120 , a former spouse of the member, if any, is entitled to a portion of the death while
42.32eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
42.33filed with the association. If there is no surviving spouse or child or children, a former
42.34spouse may be entitled to a lump-sum refund payment under section353.32, subdivision
43.11 , if provided for in a marriage dissolution decree but not a death while eligible survivor
43.2benefit despite the terms of a marriage dissolution decree filed with the association.
43.3 (c) The benefit may be elected instead of a refund with interest under section353.32,
43.4subdivision 1 , or surviving spouse benefits otherwise payable under subdivisions 1 and
43.52. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
43.6which the member could have qualified for on the date of death, computed as provided in
43.7sections 353.651,subdivisions 2 and subdivision 3, and
353.30, subdivision 3 .
43.8 (d) The surviving spouse may apply for the annuity at any time after the date
43.9on which the deceased employee would have attained the required age for retirement
43.10based on the employee's allowable service. Sections353.34, subdivision 3 , and
353.71,
43.11subdivision 2 , apply to a deferred annuity payable under this subdivision.
43.12 (e) No payment accrues beyond the end of the month in which entitlement to
43.13such annuity has terminated. An amount equal to the excess, if any, of the accumulated
43.14contributions which were credited to the account of the deceased employee over and
43.15above the total of the annuities paid and payable to the surviving spouse must be paid to
43.16the deceased member's last designated beneficiary or, if none, to the legal representative of
43.17the estate of such deceased member.
43.18 (f) Any member may request in writing, with the signed consent of the spouse, that
43.19this subdivision not apply and that payment be made only to the designated beneficiary, as
43.20otherwise provided by this chapter.
43.21 (g) For a member who is employed as a full-time firefighter by the Department of
43.22Military Affairs of the state of Minnesota, allowable service as a full-time state Military
43.23Affairs Department firefighter credited by the Minnesota State Retirement System may be
43.24used in meeting the minimum allowable service requirement of this subdivision.
43.25EFFECTIVE DATE.This section is effective the day following final enactment.
43.26 Sec. 12. Minnesota Statutes 2012, section 353.657, subdivision 3, is amended to read:
43.27 Subd. 3. Dependent children. (a) A dependent child, as defined in section353.01,
43.28subdivision 15 , is entitled to receive a monthly benefit equal to ten percent of the member's
43.29averagefull-time monthly salary rate, as defined in section 353.01, subdivision 17a,
43.30paragraph (c), as a member of the police and fire planin effect over the last six months of
43.31allowable service preceding the month in which death occurred.
43.32(b) If the member's status changed from full-time to part-time due to health reasons
43.33during the last 12 months of employment, notwithstanding the definition of average salary
43.34in section 353.01, subdivision 17a, paragraph (c), the average salary used to compute the
43.35monthly dependent child benefit must be based on the full-time salary rate of the position
44.1held as a member of the police and fire plan in effect over the last six months of allowable
44.2service preceding the month in which the death occurred.
44.3 (c) Payments for the benefit of a dependent child must be made to the surviving
44.4parent, or to the legal guardian of the child or to any adult person with whom the child
44.5may at the time be living, provided only that the parent or other person to whom any
44.6amount is to be paid advises the board in writing that the amount will be held or used in
44.7trust for the benefit of the child.
44.8EFFECTIVE DATE.This section is effective the day following final enactment.
44.9 Sec. 13. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:
44.10 Subd. 3. Effective date of privatization. "Effective date of privatization" means
44.11the date that the operation ofthe a medical facility or other public employing unit is
44.12assumed by another employer or the date thatthe a medical facility or other public
44.13employing unit is purchased by another employer and active membership in the Public
44.14Employees Retirement Association consequently terminates.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.
44.16 Sec. 14. Minnesota Statutes 2012, section 353F.02, subdivision 4, is amended to read:
44.17 Subd. 4. Medical facility. "Medical facility" means:
44.18 (1) Bridges Medical Services;
44.19(2) Cedarview Care Center in Steele County;
44.20 (3) the City of Cannon Falls Hospital;
44.21 (4) the Chris Jenson Health and Rehabilitation Center in St. Louis County;
44.22(5) Cornerstone Nursing and Rehabilitation Center in Clearwater CountyMemorial
44.23Hospital doing business as Clearwater Health Services in Bagley;
44.24 (6) the Dassel Lakeside Community Home;
44.25(7) the Douglas County Hospital, with respect to the Mental Health Unit;
44.26 (8) the Fair Oaks Lodge, Wadena;
44.27 (9) the Glencoe Area Health Center;
44.28 (10) Hutchinson Area Health Care;
44.29(11) Lake County Sunrise Home;
44.30(11) (12) the Lakefield Nursing Home;
44.31(12) (13) the Lakeview Nursing Home in Gaylord;
44.32(13) (14) the Luverne Public Hospital;
44.33(14) (15) the Oakland Park Nursing Home;
45.1(15) (16) the RenVilla Nursing Home;
45.2(16) (17) the Rice Memorial Hospital in Willmar, with respect to the Department
45.3of Radiology and the Department of Radiation/Oncology;
45.4(17) (18) the St. Peter Community Health Care Center;
45.5(18) (19) the Traverse Care Center in Traverse County;
45.6(19) (20) the Waconia-Ridgeview Medical Center;
45.7(20) (21) the Weiner Memorial Medical Center, Inc.;
45.8(21) (22) the Wheaton Community Hospital; and
45.9(22) (23) the Worthington Regional Hospital.
45.10EFFECTIVE DATE.This section is effective the day following final enactment if
45.11Minnesota Statutes, section 353F.02, subdivision 4, is not repealed in the 2013 legislative
45.12session.
45.13 Sec. 15. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision
45.14to read:
45.15 Subd. 4a. Privatized former public employer. "Privatized former public employer"
45.16means a medical facility or other employing unit formerly included in the definition of
45.17governmental subdivision under section 353.01, subdivision 6, that is privatized and
45.18whose employees are certified for participation under this chapter.
45.19EFFECTIVE DATE.This section is effective the day following final enactment.
45.20 Sec. 16. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:
45.21 Subd. 6.Terminated medical facility or other Privatized former public
45.22employing unit employee. "Terminated medical facility or other (a) "Privatized former
45.23publicemploying unit employee" means a person who:
45.24(1) was employed by the privatized former public employer on the day before the
45.25effective dateby the medical facility or other public employing unit of privatization; or
45.26(2) terminated employment with themedical facility or other privatized former
45.27publicemploying unit employer on the day before the effective date; and
45.28(3) was a participant in the general employees retirement plan of the Public
45.29Employees Retirement Association at the time of termination of employment with the
45.30medical facility or other privatized former public employing unit employer.
45.31(b) Privatized former public employee does not mean a person who, on the day
45.32before the effective date of privatization, was simultaneously employed with the privatized
45.33former public employer and by a governmental subdivision under section 353.01,
46.1subdivision 6, and who, after the effective date of privatization, continues to accrue
46.2service credit under section 353.01, subdivision 16, through simultaneous employment
46.3with a governmental subdivision.
46.4EFFECTIVE DATE.This section is effective the day following final enactment.
46.5 Sec. 17. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:
46.6 Subdivision 1. Eligibility determination. (a) The chief clerical officer of a
46.7governmental subdivision may submit a resolution from the governing body to the
46.8executive director of the Public Employees Retirement Association which supports
46.9providing coverage under this chapter for employees of that governmental subdivision
46.10who are privatized, and which states that the governing body will pay for actuarial
46.11calculations, as further specified in paragraph (c).
46.12 (b) The governing body must also provide a copy of any applicable purchase or
46.13lease agreement and any other information requested by the executive director to allow the
46.14executive director to verify that under the proposed employer change, the new employer
46.15does not qualify as a governmental subdivision under section353.01, subdivision 6 ,
46.16making the employees ineligible for continued coverage as active members of the general
46.17employees retirement plan of the Public Employees Retirement Association.
46.18 (c) Following receipt of a resolution and a determination by the executive director
46.19that the new employer is not a governmental subdivision, the executive director shall
46.20direct the consulting actuary retained under section356.214 to determine whether the
46.21general employees retirement plan of the Public Employees Retirement Association, if
46.22coverage under this chapter is provided, is expected to receive a net gain or a net loss if
46.23privatization occurs. A net gain is expected if the actuarial liability of the special benefit
46.24coverage provided under this chapter, if extended to the applicable employees under the
46.25privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is
46.26expected if the actuarial accrued liability of the special benefit coverage provided under
46.27this chapter, if extended to the applicable employees under the privatization, is more than
46.28the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
46.29used to make this determination must be within one year of the effective date, as defined
46.30in section
353F.02, subdivision 3 of privatization
46.31EFFECTIVE DATE.This section is effective the day following final enactment.
46.32 Sec. 18. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:
47.1 Subd. 2.Recommendation to legislature Reporting privatizations. (a) If the
47.2actuarial calculations under subdivision 1, paragraph (c), indicatethat privatization can
47.3be approved because a net gain to the general employees retirement plan of the Public
47.4Employees Retirement Association is expecteddue to the privatization, or if paragraph (c)
47.5 (b) applies, the executive director shall, following acceptance of the actuarial calculations
47.6by the board of trustees, forwarda recommendation notice and supporting documentation,
47.7including a copy of the actuary's report and findings, to the chairof the Legislative
47.8Commission on Pensions and Retirement, the chair of the Governmental Operations,
47.9Reform, Technology and Elections Committee of the house of representatives, the chair
47.10of the State and Local Government Operations and Oversight Committee of the senate,
47.11 and the executive director of the Legislative Commission on Pensions and Retirement
47.12 and the chairs and the ranking minority members of the committees with jurisdiction over
47.13governmental operations in the house of representatives and senate.The recommendation
47.14must be in the form of an addition to the definition of "medical facility" under section
47.15353F.02, subdivision 4, or to "other public employing unit" under section
353F.02,
47.16subdivision 5
, whichever is applicable. The recommendation must be forwarded to the
47.17legislature before January 15 for the recommendation to be considered in that year's
47.18legislative session. The recommendation may be included as part of public pension
47.19administrative legislation under section
356B.05.
47.20(b) If a medical facility or other public employing unit listed under section
353F.02,
47.21subdivision 4 or 5, fails to privatize within one year of the final enactment date of the
47.22legislation adding the entity to the applicable definition, its inclusion under this chapter is
47.23voided, and the executive director shall include in the subsequent proposed legislation under
47.24paragraph (a) a recommendation that the applicable entity be stricken from the definition.
47.25(c) (b) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the
47.26executive director shallforward a recommendation recommend to the board of trustees
47.27that the privatization beincluded as an addition under paragraph (a) approved if the chief
47.28clerical officer of the applicable governmental subdivision submits a resolution from
47.29the governing body specifying that a lump sum payment will be made to theexecutive
47.30director Public Employees Retirement Association equal to the net loss, plus interest.
47.31The interest must be computed using the applicable ultimate preretirement interest rate
47.32assumption under section356.215, subdivision 8 , expressed as a monthly rate, from the
47.33date of the actuarial valuation from which the actuarial accrued liability data was used to
47.34determine the net loss in the actuarial study under subdivision 1, to the date of payment,
47.35with annual compounding. Payment must be made on or after the effective datedefined
47.36under section
353F.02
48.1(c) The Public Employees Retirement Association must maintain a list that includes
48.2the names of all privatized former public employers in the association's comprehensive
48.3annual financial report and on the association's Web site. Annually by March 1, the
48.4association must submit to the executive director of the Legislative Commission on
48.5Pensions and Retirement the names of any privatized former public employers approved
48.6since the publication of the previous fiscal year's comprehensive annual financial report.
48.7EFFECTIVE DATE.This section is effective the day following final enactment.
48.8 Sec. 19. Minnesota Statutes 2012, section 353F.03, is amended to read:
48.9353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
48.10Notwithstanding any provision of chapter 353 to the contrary, aterminated medical
48.11facility or other privatized former public employing unit employee is eligible to receive a
48.12retirement annuity under section353.29 of the edition of Minnesota Statutes published
48.13in the year before the year in which the privatization occurred, without regard to the
48.14requirement specified in section353.01, subdivision 47 .
48.15EFFECTIVE DATE.This section is effective the day following final enactment.
48.16 Sec. 20. Minnesota Statutes 2012, section 353F.04, is amended to read:
48.17353F.04 AUGMENTATION INTEREST RATES FORTERMINATED
48.18MEDICAL OR OTHER PRIVATIZED FORMER PUBLIC EMPLOYING UNIT
48.19FACILITY EMPLOYEES.
48.20 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of a
48.21terminated medical facility or other privatized former public employing unit employee is
48.22subject to augmentation under section353.71, subdivision 2 , of the edition of Minnesota
48.23Statutes published in the year in which the privatization occurred, except that the rate of
48.24augmentation is as specified in this subdivision.
48.25 (b) This paragraph applies if thelegislation adding the medical facility or other
48.26employing unit to section
353F.02, subdivision 4 or 5, as applicable, effective date of
48.27privatization wasenacted before July 26, 2005, and became effective before January 1,
48.282008, for the Hutchinson Area Health Care on or before January 1, 2007, for all other
48.29medical facilities and all other employing units and also applies to Hutchinson Area Health
48.30Care with a privatization effective date of January 1, 2008. For aterminated medical
48.31facility or other privatized former public employing unit employee, the augmentation
48.32rate is 5.5 percent compounded annually until January 1 following the year in which the
49.1person attains age 55. From that date to the effective date of retirement, the augmentation
49.2rate is 7.5 percent compounded annually.
49.3 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
49.4before January 1, 2011, the augmentation rate is four percent compounded annually until
49.5January 1, following the year in which the person attains age 55. From that date to the
49.6effective date of retirement, the augmentation rate is six percent compounded annually.
49.7(d) If the effective date of the privatization is after December 31, 2010, the applicable
49.8augmentation rate depends on the result of computations specified in section353F.025,
49.9subdivision 1 . If those computations indicate no loss or a net gain to the fund of the
49.10general employees retirement plan of the Public Employees Retirement Association, the
49.11augmentation rate is 2.0 percent compounded annually until the effective date of retirement.
49.12If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent
49.13augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the
49.14augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
49.15(e) The term "effective date of the privatization" as used in this subdivision means
49.16the "effective date" as defined in section
353F.02, subdivision 3.
49.17 Subd. 2. Exceptions. The increased augmentation rates specified in subdivision
49.181 do not applyif the terminated medical facility or other to a privatized former public
49.19employing unit employee:
49.20(1) beginning the first of the month in which the privatized former public employee
49.21becomes covered again by a retirement plan enumerated in section356.30, subdivision 3 , if
49.22the employee continues to be covered and accrues at least six months of credited service;or
49.23(2) beginning the first of the month after a privatized former public employee
49.24terminates service with the successor entity; or
49.25(2) (3) if the person begins receipt of a retirement annuity while employed by
49.26the employer which assumed operations of or purchased themedical facility or other
49.27 privatized former publicemploying unit or purchased the medical facility or other public
49.28employing unit employer.
49.29EFFECTIVE DATE.This section is effective the day following final enactment.
49.30 Sec. 21. Minnesota Statutes 2012, section 353F.05, is amended to read:
49.31353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE
49.32FOR EARLY RETIREMENT PURPOSES.
49.33(a) For the purpose of determining eligibility for early retirement benefits provided
49.34under section353.30, subdivision 1a , of the edition of Minnesota Statutes published in
50.1the year before the year in which the privatization occurred, and notwithstanding any
50.2provision of chapter 353, to the contrary, the years of allowable service for aterminated
50.3medical facility or other privatized former public employing unit employee who transfers
50.4employment on the effective date of privatization and does not apply for a refund of
50.5contributions under section353.34, subdivision 1 , of the edition of Minnesota Statutes
50.6published in the year before the year in which the privatization occurred, or any similar
50.7provision, includes service with the successor employer to themedical facility or other
50.8 privatized former publicemploying unit employer following the effective date. The
50.9successor employer shall provide any reports that the executive director of the Public
50.10Employees Retirement Association may reasonably request to permit calculation of
50.11benefits.
50.12(b) To be eligible for early retirement benefits under this section, the individual must
50.13separate from service with the successor to the privatized former public employerto the
50.14medical facility. The terminated eligible individual privatized former public employee, or
50.15an individual authorized to act on behalf of thatindividual employee, may apply for an
50.16annuity following application procedures under section353.29, subdivision 4 .
50.17EFFECTIVE DATE.This section is effective the day following final enactment.
50.18 Sec. 22. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:
50.19 Subdivision 1. Eligibility. Aterminated medical facility or other privatized former
50.20publicemploying unit employee who is totally and permanently disabled under Minnesota
50.21Statutes 1998, section353.01, subdivision 19 , and who had a medically documented
50.22preexisting condition of the disability before the termination of coverage, may apply for
50.23a disability benefit.
50.24EFFECTIVE DATE.This section is effective the day following final enactment.
50.25 Sec. 23. Minnesota Statutes 2012, section 353F.052, is amended to read:
50.26353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD
50.27PROVISION.
50.28Notwithstanding any provisions of law to the contrary, subdivisions within section
50.29353.32
of the edition of Minnesota Statutes published in the year before the year in which
50.30a privatization occurred, applicable to the surviving spouse or dependent children of a
50.31former member as defined in section353.01, subdivision 7a , apply to the survivors of a
50.32terminated medical facility or other privatized former public employing unit employee.
51.1EFFECTIVE DATE.This section is effective the day following final enactment.
51.2 Sec. 24. [353F.057] TERMINATION FROM SERVICE REQUIREMENT.
51.3Upon termination of service from the privatized former public employer or any
51.4successor entity after the effective date of privatization, a privatized former public
51.5employee must separate from any employment relationship with the privatized former
51.6public employer or any successor entity for at least 30 days to qualify to receive a
51.7retirement annuity under this chapter.
51.8EFFECTIVE DATE.This section is effective the day following final enactment.
51.9 Sec. 25. Minnesota Statutes 2012, section 353F.06, is amended to read:
51.10353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
51.11LIMITATIONS.
51.12If a privatized former public employee satisfies the separation from service
51.13requirement in section 353F.057 and thereafter resumes employment with the privatized
51.14former public employer or any successor entity or a governmental subdivision under
51.15section 353.01, subdivision 6, the reemployed annuitant earnings limitations of section
51.16353.37
apply to any service by a terminated medical facility or other public employing
51.17unit employee as an employee of the successor employer to the medical facility.
51.18EFFECTIVE DATE.This section is effective the day following final enactment.
51.19 Sec. 26. Minnesota Statutes 2012, section 353F.07, is amended to read:
51.20353F.07 EFFECT ON REFUND.
51.21Notwithstanding any provision of chapter 353 to the contrary,terminated medical
51.22facility or other privatized former public employing unit employees may receive a refund
51.23of employee accumulated contributions plus interest as provided in section353.34,
51.24subdivision 2 , at any time after the transfer of employment to the successor employer of
51.25theterminated medical facility or other privatized former public employing unit employer.
51.26If aterminated medical facility or other privatized former public employing unit employee
51.27has received a refund from a pension plan listed in section356.30, subdivision 3 , the
51.28person may not repay that refund unless the person again becomes a member of one of
51.29those listed plans and complies with section356.30, subdivision 2 .
51.30EFFECTIVE DATE.This section is effective the day following final enactment.
52.1 Sec. 27. Minnesota Statutes 2012, section 353F.08, is amended to read:
52.2353F.08 COUNSELING SERVICES.
52.3Themedical facility or other privatized former public employing unit employer and
52.4the executive director of the Public Employees Retirement Association shall provide
52.5terminated medical facility or other privatized former public employing unit employees
52.6with counseling on their benefits available under the general employees retirement plan
52.7of the Public Employees Retirement Association duringthe 90 days following a period
52.8mutually agreed upon before or after the effective date of privatization.
52.9EFFECTIVE DATE.This section is effective the day following final enactment.
52.10 Sec. 28. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
52.11 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
52.12otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability
52.13benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
52.14postretirement adjustment annually on January 1, as follows:
52.15(1) a postretirement increase of 2.5 percent must be applied each year, effective
52.16January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
52.17been receiving an annuity or a benefit for at least 12 full months prior to the January 1
52.18increase; and
52.19(2) for each annuitant or benefit recipient who has been receiving an annuity or a
52.20benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
52.21percent for each month that the person has been receiving an annuity or benefit must be
52.22applied, effective on January 1 following the calendar year in which the person has been
52.23retired for less than 12 months.
52.24(b) The increases provided by this subdivision commence on January 1, 2010.
52.25(c) An increase in annuity or benefit payments under this section must be made
52.26automatically unless written notice is filed by the annuitant or benefit recipient with the
52.27executive director of the covered retirement plan requesting that the increase not be made.
52.28(d) The retirement annuity payable to a person who retires before becoming eligible
52.29for Social Security benefits and who has elected the optional payment as provided in
52.30section
353.29, subdivision 6, must be treated as the sum of a period certain retirement
52.31annuity and a life retirement annuity for the purposes of any postretirement adjustment.
52.32The period certain retirement annuity plus the life retirement annuity must be the
52.33annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
53.1adjustment granted on the period certain retirement annuity must terminate when the
53.2period certain retirement annuity terminates.
53.3EFFECTIVE DATE.This section is effective January 1, 2014.
53.4 Sec. 29. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
53.5 Subd. 1b. Annual postretirement adjustments; PERA; general employees
53.6retirement plan and local government correctional retirement plan. (a) Retirement
53.7annuity, disability benefit, or survivor benefit recipients of the general employees
53.8retirement plan of the Public Employees Retirement Association and the local government
53.9correctional service retirement plan are entitled to a postretirement adjustment annually
53.10on January 1, as follows:
53.11(1) for January 1, 2011, and each successive January 1 until funding stability is
53.12restored for the applicable retirement plan, a postretirement increase of one percent must
53.13be applied each year, effective on January 1, to the monthly annuity or benefit amount of
53.14each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
53.1512 full months as of the current June 30;
53.16(2) for January 1, 2011, and each successive January 1 until funding stability is
53.17restored for the applicable retirement plan, for each annuitant or benefit recipient who has
53.18been receiving an annuity or a benefit for at least one full month, but less than 12 full
53.19months as of the current June 30, an annual postretirement increase of 1/12 of one percent
53.20for each month the person has been receiving an annuity or benefit must be applied;
53.21(3) for each January 1 following the restoration of funding stability for the applicable
53.22retirement plan, a postretirement increase of 2.5 percent must be applied each year,
53.23effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
53.24recipient who has been receiving an annuity or benefit for at least 12 full months as of
53.25the current June 30; and
53.26(4) for each January 1 following restoration of funding stability for the applicable
53.27retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
53.28a benefit for at least one full month, but less than 12 full months as of the current June
53.2930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
53.30has been receiving an annuity or benefit must be applied.
53.31(b) Funding stability is restored when the market value of assets of the applicable
53.32retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
53.33applicable plan in the most recent prior actuarial valuation prepared under section356.215
53.34and the standards for actuarial work by the approved actuary retained by the Public
53.35Employees Retirement Association under section356.214 .
54.1(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
54.2and (4), the market value of the applicable retirement plan is determined in the next
54.3subsequent actuarial valuation prepared under section356.215 to be less than 90 percent
54.4of the actuarial accrued liability of any of the applicable Public Employees Retirement
54.5Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be
54.6applied as of the next successive January until funding stability is again restored.
54.7(d) An increase in annuity or benefit payments under this section must be made
54.8automatically unless written notice is filed by the annuitant or benefit recipient with the
54.9executive director of the Public Employees Retirement Association requesting that the
54.10increase not be made.
54.11(e) The retirement annuity payable to a person who retires before becoming eligible
54.12for Social Security benefits and who has elected the optional payment, as provided in
54.13section
353.29, subdivision 6, must be treated as the sum of a period-certain retirement
54.14annuity and a life retirement annuity for the purposes of any postretirement adjustment.
54.15The period-certain retirement annuity plus the life retirement annuity must be the
54.16annuity amount payable until age 62 for section
353.29, subdivision 6. A postretirement
54.17adjustment granted on the period-certain retirement annuity must terminate when the
54.18period-certain retirement annuity terminates.
54.19EFFECTIVE DATE.This section is effective January 1, 2014.
54.20 Sec. 30. Minnesota Statutes 2012, section 356.635, subdivision 1, is amended to read:
54.21 Subdivision 1. Retirement benefit commencement. (a) The retirement benefit of a
54.22member who has terminated employment must begin no later than the later of April 1 of
54.23the calendar year following the calendar year that the member attains the federal minimum
54.24distribution age under section 401(a)(9) of the Internal Revenue Code or April 1 of the
54.25calendar year following the calendar year in which the member terminated employment.
54.26(b) The consent requirements of section 411(a)(11) of the Internal Revenue Code do
54.27not apply to the extent that a distribution is required to satisfy the requirements of section
54.28401(a)(9) of the Internal Revenue Code.
54.29EFFECTIVE DATE.This section is effective the day following final enactment.
54.30 Sec. 31. REPEALER.
54.31(a) Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025,
54.32subdivision 3, are repealed.
54.33(b) Minnesota Statutes 2012, section 353.29, subdivision 6, is repealed.
55.1EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
55.2Paragraph (b) is effective January 1, 2014.
55.5 Section 1. Minnesota Statutes 2012, section 352.115, subdivision 3, is amended to read:
55.6 Subd. 3. Retirement annuity formula. (a) This paragraph, in conjunction with
55.7section352.116, subdivision 1 , applies to a person who became a covered employee or a
55.8member of a pension fund listed in section356.30, subdivision 3 , before July 1, 1989,
55.9unless paragraph (b), in conjunction with section352.116, subdivision 1a , produces a
55.10higher annuity amount, in which case paragraph (b)will apply applies. The employee's
55.11average salary, as defined in section352.01, subdivision 14a , multiplied by the 1.2 percent
55.12specified in section
356.315, subdivision 1, per year of allowable service for the first ten
55.13years andthe 1.7 percent specified in section
356.315, subdivision 2, for each later year of
55.14allowable service and pro rata for completed months less than a full yearshall determine
55.15 determines the amount of the retirement annuity to which the employee is entitled.
55.16(b) This paragraph applies to a person who has become at least 55 years old and
55.17first became a covered employee after June 30, 1989, and to any other covered employee
55.18who has become at least 55 years old and whose annuity amount, when calculated under
55.19this paragraph and in conjunction with section352.116, subdivision 1a , is higher than it is
55.20when calculated under paragraph (a), in conjunction with section352.116, subdivision 1 .
55.21The employee's average salary, as defined in section352.01, subdivision 14a , multiplied
55.22bythe 1.7 percent specified in section
356.315, subdivision 2, for each year of allowable
55.23service and pro rata for months less than a full yearshall determine determines the amount
55.24of the retirement annuity to which the employee is entitled.
55.25 Sec. 2. Minnesota Statutes 2012, section 352.87, subdivision 3, is amended to read:
55.26 Subd. 3. Retirement annuity formula. A person specified in subdivision 1 is
55.27entitled to receive a retirement annuity applicable for allowable service credit under this
55.28section calculated by multiplying the employee's average salary, as defined in section
55.29352.01, subdivision 14a
, by the 2.0 percent specified in section
356.315, subdivision 2a,
55.30 for each year or portions of a year of allowable service credit. No reduction for retirement
55.31before the normal retirement age, as specified in section352.01, subdivision 25 , applies
55.32to service to which this section applies.
55.33 Sec. 3. Minnesota Statutes 2012, section 352.93, subdivision 2, is amended to read:
56.1 Subd. 2. Calculating monthly annuity. The monthly annuity under this section
56.2must be determined by multiplying the average monthly salary by the number of years, or
56.3completed months, of covered correctional service bythe 2.4 percent specified in section
56.4356.315, subdivision 5
56.5or 2.2 percent if employed as a correctional state employee after June 30, 2010.
56.6 Sec. 4. Minnesota Statutes 2012, section 352.95, subdivision 1, is amended to read:
56.7 Subdivision 1. Duty disability; computation of benefit. A covered correctional
56.8employee who is determined to have a duty disability, physical or psychological, as
56.9defined under section352.01, subdivision 17b , is entitled to a duty disability benefit. The
56.10duty disability benefit must be based on covered correctional service only. The duty
56.11disability benefit amount is 50 percent of the average salary defined in section352.93 ,
56.12plus an additional 2.4 percentequal to that specified in section
356.315, subdivision 5, if
56.13employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed
56.14as a correctional state employee after June 30, 2010, for each year of covered correctional
56.15service in excess of 20 years, ten months, prorated for completed months.
56.16 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
56.17 Subd. 2. Normal retirement annuity. The annuity must be paid in monthly
56.18installments. The annuityshall be is equal to the amount determined by multiplying the
56.19average monthly salary of the member bythe 3.0 percent specified in section
356.315,
56.20subdivision 6
, for each year and pro rata for completed months of service.
56.21 Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 1, is amended to read:
56.22 Subdivision 1. Duty disability. A member who is determined to qualify for duty
56.23disability as defined in section352B.011, subdivision 7 , is entitled to receive a duty
56.24disability benefit while disabled. The benefits must be paid monthly. The duty disability
56.25benefit is an amount equal to the member's average monthly salary multiplied by 60 percent,
56.26plus an additional 3.0 percentequal to that specified in section
356.315, subdivision 6, for
56.27each year and pro rata for completed months of service in excess of 20 years, if any.
56.28 Sec. 7. Minnesota Statutes 2012, section 353.29, subdivision 3, is amended to read:
56.29 Subd. 3. Retirement annuity formula. (a) This paragraph, in conjunction with
56.30section353.30, subdivisions 1a, 1b, and 1c , applies to any member who first became a
56.31public employee or a member of a pension fund listed in section356.30, subdivision 3 ,
56.32before July 1, 1989, unless paragraph (b), in conjunction with section353.30, subdivision
57.15 , produces a higher annuity amount, in which case paragraph (b) will apply applies. The
57.2average salary as defined in section353.01, subdivision 17a , multiplied by the 2.2 percent
57.3specified insection
356.315, subdivision 3, for each year of allowable service for the
57.4first ten years and thereafter bythe 2.7 percent specified in section
356.315, subdivision
57.54
, per year of allowable service and completed months less than a full year for a basic
57.6member, andthe 1.2 percent specified in section
356.315, subdivision 1, for each year
57.7of allowable service for the first ten years and thereafter bythe 1.7 percent specified in
57.8section
356.315, subdivision 2, per year of allowable service and completed months less
57.9than a full year for a coordinated membershall determine determines the amount of the
57.10normal retirement annuity.
57.11 (b) This paragraph applies to a member who has become at least 55 years old and first
57.12became a public employee after June 30, 1989, and to any other member whose annuity
57.13amount, when calculated under this paragraph and in conjunction with section353.30,
57.14subdivision 5 , is higher than it is when calculated under paragraph (a), in conjunction with
57.15section353.30, subdivisions 1a, 1b, and 1c . The average salary, as defined in section
57.16353.01, subdivision 17a
, multiplied by the 2.7 percent specified in section
356.315,
57.17subdivision 4
, for each year of allowable service and completed months less than a full
57.18year for a basic member andthe 1.7 percent specified in section
356.315, subdivision 2,
57.19 per year of allowable service and completed months less than a full year for a coordinated
57.20member,shall determine determines the amount of the normal retirement annuity.
57.21 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
57.22 Subd. 3. Retirement annuity formula. The average salary as defined in section
57.23353.01, subdivision 17a
, multiplied by the 3.0 percent specified in section
356.315,
57.24subdivision 6
, per year of allowable service determines the amount of the normal
57.25retirement annuity. If the member has earned allowable service for performing services
57.26other than those of a police officer or firefighter, the annuity representing that service must
57.27be computed under sections353.29 and
353.30 .
57.28 Sec. 9. Minnesota Statutes 2012, section 353.656, subdivision 1, is amended to read:
57.29 Subdivision 1. Duty disability; computation of benefits. (a) A member of the
57.30police and fire plan, other than a firefighter covered by section353.6511 , or a police
57.31officer covered by section353.6512 , who is determined to qualify for duty disability as
57.32defined in section353.01 , subdivision 41, shall is entitled to receive disability benefits
57.33during the period of such disability in an amount equal to 60 percent of the average salary
57.34as defined in section353.01, subdivision 17a , plus an additional percentage specified
58.1under section
356.315, subdivision 6, 3.0 percent of that average salary for each year
58.2of service in excess of 20 years.
58.3 (b) To be eligible for a benefit under paragraph (a), the member must have:
58.4 (1) not met the requirements for a retirement annuity under section353.651 ,
58.5subdivision 1; or
58.6 (2) met the requirements under that subdivision, but does not have at least 20 years
58.7of allowable service credit.
58.8 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
58.9period of 60 months from the disability benefit accrual date and at the end of that period
58.10is subject to provisions of subdivision 5a.
58.11 (d) If the disability under this subdivision occurs before the member has at least five
58.12years of allowable service credit in the police and fire plan, the disability benefit must be
58.13computed on the average salary from which deductions were made for contribution to
58.14the police and fire fund.
58.15 Sec. 10. Minnesota Statutes 2012, section 353.656, subdivision 1a, is amended to read:
58.16 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
58.17member of the police and fire plan, other than a firefighter covered by section353.6511 , or
58.18a police officer covered by section353.6512 , whose disabling condition is determined
58.19to be a duty disability that is also a permanent and total disability as defined in section
58.20353.01
, subdivision 19, is entitled to receive, for life, disability benefits in an amount
58.21equal to 60 percent of the average salary as defined in section353.01, subdivision 17a ,
58.22plus an additional 3.0 percentspecified in section
356.315, subdivision 6, of that average
58.23salary for each year of service in excess of 20 years.
58.24 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
58.25under section353.33, subdivision 6 , but the review may be waived if the executive
58.26director receives a written statement from the association's medical advisor that no
58.27improvement can be expected in the member's disabling condition that was the basis for
58.28payment of the benefit under paragraph (a). A member receiving a disability benefit
58.29under this subdivision who is found to no longer be permanently and totally disabled as
58.30defined under section353.01, subdivision 19 , but continues to meet the definition for
58.31receipt of a duty disability under section353.01, subdivision 41 , is subject to subdivision
58.321 upon written notice from the association's medical advisor that the person is no longer
58.33considered permanently and totally disabled.
58.34 (c) If a member approved for disability benefits under this subdivision dies before
58.35attaining normal retirement age as defined in section353.01, subdivision 37 , paragraph
59.1(b), or within 60 months of the effective date of the disability, whichever is later,
59.2the surviving spouse is entitled to receive a survivor benefit under section353.657 ,
59.3subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
59.4condition for which disability benefits were approved, or section353.657, subdivision
59.52, paragraph (a), clause (2), if the death is not directly related to the disabling condition
59.6for which benefits were approved under this subdivision.
59.7 (d) If the election of an actuarial equivalent optional annuity is not made at the time
59.8the permanent and total disability benefit accrues, an election must be made within 90
59.9days before the member attains normal retirement age as defined under section353.01 ,
59.10subdivision 37, paragraph (b), or having collected total and permanent disability benefits
59.11for 60 months, whichever is later. If a member receiving disability benefits who has
59.12dependent children dies, subdivision 6a, paragraph (c), applies.
59.13 Sec. 11. Minnesota Statutes 2012, section 353.656, subdivision 3a, is amended to read:
59.14 Subd. 3a. Total and permanent regular disability; computation of benefits. (a)
59.15A member of the police and fire plan, other than a firefighter covered by section353.6511 ,
59.16or a police officer covered by section353.6512 , whose disabling condition is determined
59.17to be a regular disability under section353.01, subdivision 46 , that is also a permanent
59.18and total disability as defined in section353.01, subdivision 19 , is entitled to receive, for
59.19life, a disability benefit in an amount equal to 45 percent of the average salary as defined
59.20in section353.01, subdivision 17a , plus an additional 3.0 percent specified in section
59.21356.315, subdivision 6, of that average salary for each year of service in excess of 15 years.
59.22 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
59.23under section353.33, subdivision 6 , but the review may be waived if the executive
59.24director receives a written statement from the association's medical advisor that no
59.25improvement can be expected in the member's disabling condition that was the basis for
59.26payment of the benefit under paragraph (a). A member receiving a disability benefit under
59.27this subdivision who is found to no longer be permanently and totally disabled as defined
59.28under section353.01, subdivision 19 , but continues to meet the definition for receipt
59.29of a regular disability under section353.01, subdivision 46 , is subject to subdivision 3
59.30upon written notice from the association's medical advisor that the person is no longer
59.31considered permanently and totally disabled.
59.32 (c) A member approved for disability benefits under this subdivision may elect
59.33to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
59.34election of an actuarial equivalent optional annuity is not made at the time the total and
59.35permanent disability benefit accrues, an election must be made within 90 days before
60.1the member attains normal retirement age as defined in section353.01, subdivision 37 ,
60.2paragraph (b), or having collected disability benefits for 60 months, whichever is later.
60.3No surviving spouse benefits are payable if the member dies during the period in which
60.4a normal total and permanent disability benefit is being paid. If a member receiving
60.5disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
60.6 Sec. 12. Minnesota Statutes 2012, section 353E.04, subdivision 3, is amended to read:
60.7 Subd. 3. Annuity amount. (a) The average salary as defined in subdivision 2,
60.8multiplied bythe 1.9 percent specified in section
356.315, subdivision 5a, for each year of
60.9allowable service, determines the amount of the normal retirement annuity.
60.10(b) If a person has earned allowable service in the general employees retirement plan
60.11of the Public Employees Retirement Association or the public employees police and fire
60.12fund prior to retirement plan before participation under this chapter, the retirement annuity
60.13representing such service must be computed in accordance with the formula specified in
60.14sections353.29 and
353.30 or
353.651 , whichever applies.
60.15 Sec. 13. Minnesota Statutes 2012, section 353E.06, subdivision 1, is amended to read:
60.16 Subdivision 1. Duty disability qualification requirements. A local government
60.17correctional employee who is determined to qualify for a duty disability as defined in
60.18section353E.001, subdivision 1 , is entitled to a disability benefit. The disability benefit
60.19must be based on covered service under this chapter only and is an amount equal to 47.5
60.20percent of the average salary defined in section353E.04, subdivision 2 , plus an additional
60.211.9 percentequal to that specified in section
356.315, subdivision 5a, for each year of
60.22covered service under this chapter in excess of 25 years.
60.23 Sec. 14. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
60.24 Subd. 6. Computation of formula program retirement annuity. (a) The formula
60.25retirement annuity must be computed in accordance with the applicable provisions of the
60.26formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
60.27section354.05, subdivision 13a , for the period of the member's formula service credit.
60.28 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
60.29became a member of the association or a member of a pension fund listed in section
60.30356.30, subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with
60.31paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
60.32average salary as defined in section354.05, subdivision 13a , multiplied by the following
61.1percentages per year of formula service credit shall determine the amount of the annuity to
61.2which the member qualifying therefor is entitled for service rendered before July 1, 2006:
61.10 For service rendered on or after July 1, 2006, the average salary as defined in section
61.11354.05
, subdivision 13a, multiplied by the following percentages per year of service credit,
61.12determines the amount the annuity to which the member qualifying therefor is entitled:
61.20 (c)(i) This paragraph applies only to a person who first became a member of the
61.21association or a member of a pension fund listed in section356.30, subdivision 3 , before
61.22July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
61.23conjunction with this paragraph than when calculated under paragraph (d), in conjunction
61.24with paragraph (e).
61.25 (ii) Where any member retires prior to normal retirement age under a formula
61.26annuity, the member shall be paid a retirement annuity in an amount equal to the normal
61.27annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
61.28that the member is under normal retirement age at the time of retirement except that for
61.29any member who has 30 or more years of allowable service credit, the reduction shall be
61.30applied only for each month that the member is under age 62.
61.31 (iii) Any member whose attained age plus credited allowable service totals 90 years
61.32is entitled, upon application, to a retirement annuity in an amount equal to the normal
61.33annuity provided in paragraph (b), without any reduction by reason of early retirement.
61.34 (d) This paragraph applies to a member who has become at least 55 years old and
61.35first became a member of the association after June 30, 1989, and to any other member
61.36who has become at least 55 years old and whose annuity amount when calculated
61.37under this paragraph and in conjunction with paragraph (e), is higher than it is when
61.38calculated under paragraph (b), in conjunction with paragraph (c). For a basic member,
61.39the average salary, as defined in section354.05, subdivision 13a , multiplied by the 2.7
62.1percentspecified by section
356.315, subdivision 4, for each year of service for a basic
62.2membershall determine determines the amount of the retirement annuity to which the
62.3basic member is entitled. The annuity of a basic member who was a member of the
62.4former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must be
62.5determined according to the annuity formula under the articles of incorporation of the
62.6former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
62.7coordinated member, the average salary, as defined in section354.05 , subdivision 13a,
62.8multiplied bythe 1.7 percent specified in section
356.315, subdivision 2, for each year of
62.9service rendered before July 1, 2006, and bythe 1.9 percent specified in section
356.315,
62.10subdivision 2b, for each year of service rendered on or after July 1, 2006, determines the
62.11amount of the retirement annuity to which the coordinated member is entitled.
62.12 (e) This paragraph applies to a person who has become at least 55 years old and first
62.13becomes a member of the association after June 30, 1989, and to any other member who
62.14has become at least 55 years old and whose annuity is higher when calculated under
62.15paragraph (d) in conjunction with this paragraph than when calculated under paragraph
62.16(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
62.17before the normal retirement age shall be paid the normal annuity provided in paragraph
62.18(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would
62.19be payable to the employee if the employee deferred receipt of the annuity and the annuity
62.20amount were augmented at an annual rate of three percent compounded annually from the
62.21day the annuity begins to accrue until the normal retirement age if the employee became
62.22an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
62.23becomes an employee after June 30, 2006.
62.24 (f) No retirement annuity is payable to a former employee with a salary that exceeds
62.2595 percent of the governor's salary unless and until the salary figures used in computing
62.26the highest five successive years average salary under paragraph (a) have been audited by
62.27the Teachers Retirement Association and determined by the executive director to comply
62.28with the requirements and limitations of section354.05 , subdivisions 35 and 35a.
62.29 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
62.30 Subd. 4. Computation of normal coordinated retirement annuity; St. Paul
62.31fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
62.32Retirement Fund Association.
62.33(b) The normal coordinated retirement annuity is an amount equal to a retiring
62.34coordinated member's average salary under section354A.011, subdivision 7a , multiplied
62.35by the retirement annuity formula percentage.
63.1(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
63.2became a member or a member in a pension fund listed in section356.30, subdivision 3 ,
63.3before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
63.4higher annuity amount, in which case paragraph (d) will apply. The retirement annuity
63.5formula percentage for purposes of this paragraph isthe 1.2 percent specified in section
63.6356.315, subdivision 1, per year for each year of coordinated service for the first ten
63.7years andthe 1.7 percent specified in section
356.315, subdivision 2, for each year of
63.8coordinated service thereafter.
63.9(d) This paragraph applies to a person who has become at least 55 years old and who
63.10first becomes a member after June 30, 1989, and to any other member who has become
63.11at least 55 years old and whose annuity amount, when calculated under this paragraph
63.12and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
63.13(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
63.14percentage for purposes of this paragraph isthe 1.7 percent specified in section
356.315,
63.15subdivision 2
, for each year of coordinated service.
63.16 Sec. 16. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
63.17 Subd. 4a. Computation of normal coordinated retirement annuity; Duluth
63.18fund. (a) This subdivision applies to the new law coordinated program of the Duluth
63.19Teachers Retirement Fund Association.
63.20(b) The normal coordinated retirement annuity is an amount equal to a retiring
63.21coordinated member's average salary under section354A.011, subdivision 7a , multiplied
63.22by the retirement annuity formula percentage.
63.23(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
63.24became a member or a member in a pension fund listed in section356.30, subdivision 3 ,
63.25before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
63.26higher annuity amount, in which case paragraph (d) applies. The retirement annuity
63.27formula percentage for purposes of this paragraph isthe 1.2 percent specified in section
63.28356.315, subdivision 1, per year for each year of coordinated service for the first ten
63.29years andthe 1.7 percent specified in section
356.315, subdivision 2, for each subsequent
63.30year of coordinated service.
63.31(d) This paragraph applies to a person who is at least 55 years old and who first
63.32becomes a member after June 30, 1989, and to any other member who is at least 55 years
63.33old and whose annuity amount, when calculated under this paragraph and in conjunction
63.34with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
63.35with subdivision 6. The retirement annuity formula percentage for purposes of this
64.1paragraph isthe 1.7 percent specified in section
356.315, subdivision 2, for each year of
64.2coordinated service.
64.3 Sec. 17. Minnesota Statutes 2012, section 356.30, subdivision 1, is amended to read:
64.4 Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any
64.5provisions of the laws governing the retirement plans enumerated in subdivision 3, a
64.6person who has met the qualifications of paragraph (b) may elect to receive a retirement
64.7annuity from each enumerated retirement plan in which the person has at least one-half
64.8year of allowable service, based on the allowable service in each plan, subject to the
64.9provisions of paragraph (c).
64.10(b) A person may receive, upon retirement, a retirement annuity from each
64.11enumerated retirement plan in which the person has at least one-half year of allowable
64.12service, and augmentation of a deferred annuity calculated at the appropriate rate under
64.13the laws governing each public pension plan or fund named in subdivision 3, based on
64.14the date of the person's initial entry into public employment from the date the person
64.15terminated all public service if:
64.16(1) the person has allowable service in any two or more of the enumerated plans;
64.17(2) the person has sufficient allowable service in total that equals or exceeds the
64.18applicable service credit vesting requirement of the retirement plan with the longest
64.19applicable service credit vesting requirement; and
64.20(3) the person has not begun to receive an annuity from any enumerated plan or the
64.21person has made application for benefits from each applicable plan and the effective
64.22dates of the retirement annuity with each plan under which the person chooses to receive
64.23an annuity are within a one-year period.
64.24(c) The retirement annuity from each plan must be based upon the allowable service,
64.25accrual rates, and average salary in the applicable plan except as further specified or
64.26modified in the following clauses:
64.27(1) the laws governing annuities must be the law in effect on the date of termination
64.28from the last period of public service under a covered retirement plan with which the person
64.29earned a minimum of one-half year of allowable service credit during that employment;
64.30(2) the "average salary" on which the annuity from each covered plan in which
64.31the employee has credit in a formula plan must be based on the employee's highest five
64.32successive years of covered salary during the entire service in covered plans;
64.33(3) the accrual rates to be used by each plan must be those percentages prescribed by
64.34each plan's formula as continued for the respective years of allowable service from one
64.35plan to the next, recognizing all previous allowable service with the other covered plans;
65.1(4) the allowable service in all the plans must be combined in determining eligibility
65.2for and the application of each plan's provisions in respect to reduction in the annuity
65.3amount for retirement prior to normal retirement age; and
65.4(5) the annuity amount payable for any allowable service under a nonformula plan
65.5of a covered plan must not be affected, but such service and covered salary must be used
65.6in the above calculation.
65.7(d) This section does not apply to any person whose final termination from the last
65.8public service under a covered plan was before May 1, 1975.
65.9(e) For the purpose of computing annuities under this section, the accrual rates
65.10used by any covered plan, except the public employees police and fire plan, the judges
65.11retirement fund, and the State Patrol retirement plan, must not exceedthe 2.7 percent
65.12specified in section
356.315, subdivision 4, per year of service for any year of service or
65.13fraction thereof. The formula percentage used by the judges retirement fund must not
65.14exceedthe percentage rate specified in section
356.315, subdivision 8, 3.2 percent per
65.15year of service for any year of service or fraction thereof. The accrual rate used by the
65.16public employees police and fire plan and the State Patrol retirement plan must not exceed
65.17the percentage rate specified in section
356.315, subdivision 6, 3.0 percent per year of
65.18service for any year of service or fraction thereof. The accrual rate or rates used by the
65.19legislators retirement plan must not exceed 2.5 percent, but this limit does not apply to the
65.20adjustment provided under section3A.02, subdivision 1 , paragraph (c).
65.21(f) Any period of time for which a person has credit in more than one of the covered
65.22plans must be used only once for the purpose of determining total allowable service.
65.23(g) If the period of duplicated service credit is more than one-half year, or the person
65.24has credit for more than one-half year, with each of the plans, each plan must apply its
65.25formula to a prorated service credit for the period of duplicated service based on a fraction
65.26of the salary on which deductions were paid to that fund for the period divided by the total
65.27salary on which deductions were paid to all plans for the period.
65.28(h) If the period of duplicated service credit is less than one-half year, or when
65.29added to other service credit with that plan is less than one-half year, the service credit
65.30must be ignored and a refund of contributions made to the person in accord with that
65.31plan's refund provisions.
65.32 Sec. 18. Minnesota Statutes 2012, section 356.315, subdivision 9, is amended to read:
65.33 Subd. 9. Future benefit accrual rate increases. After January 2, 1998, benefit
65.34accrual rate increases underthis section 352.115, subdivision 3; 352.87, subdivision
65.353; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10,
66.1subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision
66.21, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6;
66.3354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124,
66.4subdivision 1, must apply only to allowable service or formula service rendered after the
66.5effective date of the benefit accrual rate increase.
66.6 Sec. 19. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
66.7 Subd. 22. Service credit limit. "Service credit limit" means the greater of: (1) 24
66.8years of allowable service under this chapter; or (2) for judges with allowable service
66.9rendered before July 1, 1980, the number of years of allowable service under chapter 490,
66.10which, when multiplied by the percentagelisted in section
356.315, subdivision 78
66.11 3.2, whichever is applicable to each year of service, equals 76.8.
66.12 Sec. 20. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
66.13 Subdivision 1. Basic retirement annuity. (a) Except as qualified hereinafter from
66.14and after the mandatory retirement date, the normal retirement date, the early retirement
66.15date, or one year from the disability retirement date, as the case may be, a retiring judge is
66.16eligible to receive a retirement annuity from the judges' retirement fund.
66.17 (b) The retirement annuity is an amount equal to: (1)the 2.7 percent specified in
66.18section
356.315, subdivision 7, multiplied by the judge's final average compensation with
66.19that result then multiplied by the number of years and fractions of years of allowable
66.20service rendered before July 1, 1980; plus (2)the 3.2 percent specified in section
356.315,
66.21subdivision 8
, multiplied by the judge's final average compensation with that result then
66.22multiplied by the number of years and fractions of years of allowable service rendered
66.23after June 30, 1980.
66.24 (c) Service that exceeds the service credit limit in section490.121, subdivision 22 ,
66.25must be excluded in calculating the retirement annuity, but the compensation earned by
66.26the judge during this period of judicial service must be used in determining a judge's final
66.27average compensation and calculating the retirement annuity.
66.28 Sec. 21. REPEALER.
66.29Minnesota Statutes 2012, section 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a,
66.306, 7, and 8, are repealed.
66.31 Sec. 22. EFFECTIVE DATE.
66.32Sections 1 to 21 are effective the day following final enactment.
67.4 Section 1. Minnesota Statutes 2012, section 6.495, subdivision 1, is amended to read:
67.5 Subdivision 1. Audit and examinations. All powers and duties conferred and
67.6imposed upon the state auditor with respect to state, county, and first-class city officers,
67.7institutions, and property are hereby extended to the various fireand police relief
67.8associations in the state. The state auditor shall annually audit the special and general
67.9funds of the relief association or, at the request of the board of trustees or the municipality,
67.10the state auditor may contract for an annual audit by a certified public accountant. The
67.11state auditor may determine that an annual audit is not necessary, in which case the state
67.12auditor shall develop a plan for examination of unaudited relief associations, and shall
67.13prescribe suitable systems of accounts and budgeting, and forms, books, and instructions
67.14concerning the same.
67.15Copies of the written report of the state auditor on the financial condition and
67.16accounts of the relief associationshall must be filed with the board of trustees of the
67.17relief association and the governing body of the municipality associated with the relief
67.18association. If the report discloses malfeasance, misfeasance, or nonfeasance with regard
67.19to relief association funds, copies thereofshall must be filed with the city attorney or county
67.20attorney in the city or county in which the relief association is located, and these officials of
67.21the law shall institute proceedings, civil or criminal, as the law and public interest require.
67.22 Sec. 2. Minnesota Statutes 2012, section 6.495, subdivision 3, is amended to read:
67.23 Subd. 3. Report to commissioner of revenue. The state auditor shall file with
67.24the commissioner of revenue a financial compliance report certifying for each relief
67.25association:
67.26(1) the completion of the annual financial report requiredpursuant to under section
67.2769.051
and the auditing or certification of those financial reports pursuant to under
67.28subdivision 1; and
67.29(2) the receipt of any actuarial valuations requiredpursuant to under section 69.77
67.30or
69.773 or sections 31 to 42.
67.31 Sec. 3. Minnesota Statutes 2012, section 6.67, is amended to read:
67.326.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
67.33 Whenever a public accountant in the course of auditing the books and affairs of a
67.34political subdivision or a local public pension plan governed bysection
69.77, sections
68.169.771
to
69.775 , or chapter 354A or 424A, or sections 31 to 42, discovers evidence
68.2pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or
68.3employee in the conduct of duties and affairs, the public accountant shall promptly make
68.4a report of such discovery to the state auditor and the county attorney of the county in
68.5which the governmental unit is situated and the public accountant shall also furnish a
68.6copy of the report of audit upon completion to said officers. The county attorney shall
68.7act on such report in the same manner as required by law for reports made to the county
68.8attorney by the state auditor.
68.9 Sec. 4. Minnesota Statutes 2012, section 13D.01, subdivision 1, is amended to read:
68.10 Subdivision 1. In executive branch, local government. All meetings, including
68.11executive sessions, must be open to the public
68.12(a) of a state
68.13(1) agency,
68.14(2) board,
68.15(3) commission, or
68.16(4) department,
68.17when required or permitted by law to transact public business in a meeting;
68.18(b) of the governing body of a
68.19(1) school district however organized,
68.20(2) unorganized territory,
68.21(3) county,
68.22(4) statutory or home rule charter city,
68.23(5) town, or
68.24(6) other public body;
68.25(c) of any
68.26(1) committee,
68.27(2) subcommittee,
68.28(3) board,
68.29(4) department, or
68.30(5) commission,
68.31of a public body; and
68.32(d) of the governing body or a committee of:
68.33(1) a statewide public pension plan defined in section356A.01, subdivision 24 ; or
68.34(2) a local public pension plan governed bysection 69.77, sections
69.771 to
69.775 ,
68.35or chapter 354A, or sections 31 to 42.
69.1 Sec. 5. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
69.2 Subdivision 1. Definitions. Unless the language or context clearly indicates that
69.3a different meaning is intended, the following words and terms, for the purposes of this
69.4chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
69.5 (a) "Commissioner" means the commissioner of revenue.
69.6 (b) "Municipality" means:
69.7 (1) a home rule charter or statutory city;
69.8 (2) an organized town;
69.9 (3) a park district subject to chapter 398;
69.10 (4) the University of Minnesota;
69.11 (5) for purposes of the fire state aid program only, an American Indian tribal
69.12government entity located within a federally recognized American Indian reservation;
69.13 (6) for purposes of the police state aid program only, an American Indian tribal
69.14government with a tribal police department which exercises state arrest powers under
69.15section626.90 ,
626.91 ,
626.92 , or
626.93 ;
69.16 (7) for purposes of the police state aid program only, the Metropolitan Airports
69.17Commission; and
69.18 (8) for purposes of the police state aid program only, the Department of Natural
69.19Resources and the Department of Public Safety with respect to peace officers covered
69.20under chapter 352B.
69.21 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
69.22commissioner containing space for reporting by insurers of fire, lightning, sprinkler
69.23leakage and extended coverage premiums received upon risks located or to be performed
69.24in this state less return premiums and dividends.
69.25 (d) "Firetown" means the area serviced by any municipality having a qualified fire
69.26department or a qualified incorporated fire department having a subsidiary volunteer
69.27firefighters' relief association.
69.28 (e) "Market value" means latest available market value of all property in a taxing
69.29jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
69.30taxation obtained from information which appears on abstracts filed with the commissioner
69.31of revenue or equalized by the State Board of Equalization.
69.32 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
69.33commissioner for reporting by each fire and casualty insurer of all premiums received
69.34upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
69.35during the preceding calendar year, with reference to insurance written for insuring against
69.36the perils contained in auto insurance coverages as reported in the Minnesota business
70.1schedule of the annual financial statement which each insurer is required to file with
70.2the commissioner in accordance with the governing laws or rules less return premiums
70.3and dividends.
70.4 (g) "Peace officer" means any person:
70.5 (1) whose primary source of income derived from wages is from direct employment
70.6by a municipality or county as a law enforcement officer on a full-time basis of not less
70.7than 30 hours per week;
70.8 (2) who has been employed for a minimum of six months prior to December 31
70.9preceding the date of the current year's certification under subdivision 2, clause (b);
70.10 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
70.11 (4) who is licensed by the Peace Officers Standards and Training Board and is
70.12authorized to arrest with a warrant; and
70.13 (5) who is a member of the State Patrol retirement plan or the public employees
70.14police and fire fund.
70.15 (h) "Full-time equivalent number of peace officers providing contract service" means
70.16the integral or fractional number of peace officers which would be necessary to provide
70.17the contract service if all peace officers providing service were employed on a full-time
70.18basis as defined by the employing unit and the municipality receiving the contract service.
70.19 (i) "Retirement benefits other than a service pension" means any disbursement
70.20authorized under section424A.05, subdivision 3 , clauses (3) and (4).
70.21 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
70.22(1) for the police state aid programand police relief association financial reports:
70.23(i) the person who was elected or appointed to the specified position or, in the
70.24absence of the person, another person who is designated by the applicable governing body;
70.25(ii) in a park district, the secretary of the board of park district commissioners;
70.26(iii) in the case of the University of Minnesota, the official designated by the Board
70.27of Regents;
70.28(iv) for the Metropolitan Airports Commission, the person designated by the
70.29commission;
70.30(v) for the Department of Natural Resources or the Department of Public Safety, the
70.31respective commissioner;
70.32(vi) for a tribal police department which exercises state arrest powers under section
70.33626.90
,
626.91 ,
626.92 , or
626.93 , the person designated by the applicable American
70.34Indian tribal government; and
70.35(2) for the fire state aid program and fire relief association financial reports, the
70.36person who was elected or appointed to the specified position, or, for governmental
71.1entities other than counties, if the governing body of the governmental entity designates
71.2the position to perform the function, the chief financial official of the governmental entity
71.3or the chief administrative official of the governmental entity.
71.4(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
71.5retirement plan established by chapter 353G.
71.6 Sec. 6. Minnesota Statutes 2012, section 69.011, subdivision 2, is amended to read:
71.7 Subd. 2. Qualification for fire or police state aid. (a) Unless retirement coverage
71.8is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in
71.9order to qualify to receive fire state aid, on or before March 15 annually, in conjunction
71.10with the financial report required pursuant to section69.051 , the clerk of each municipality
71.11having a duly organized fire department as provided in subdivision 4, or the secretary of
71.12each independent nonprofit firefighting corporation having a subsidiary incorporated
71.13firefighters' relief association, whichever is applicable, and the fire chief, shall jointly
71.14certify the existence of the municipal fire department or of the independent nonprofit
71.15firefighting corporation, whichever is applicable, which meets the minimum qualification
71.16requirements set forth in this subdivision, and the fire personnel and equipment of the
71.17municipal fire department or the independent nonprofit firefighting corporation as of the
71.18preceding December 31.
71.19(b) Where retirement coverage is provided by the voluntary statewide lump-sum
71.20volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or
71.21before March 15, annually, the executive director of the Public Employees Retirement
71.22Association shall certify the existence of that coverage for each municipality and the
71.23municipal clerk or independent nonprofit firefighting corporation secretary, whichever
71.24applies, and the applicable fire chief shall certify the fire personnel and fire department
71.25equipment as of the preceding December 31.
71.26(c) Certification must be made to the commissioner on a form prescribed by the
71.27commissioner and shall include any other facts the commissioner may require. The
71.28certification must be made to the commissioner in duplicate. Each copy of the certificate
71.29must be duly executed and is deemed to be an original. The commissioner shall forward
71.30one copy to the auditor of the county wherein the fire department is located and shall
71.31retain one copy.
71.32(d) On or before March 15 annually the clerk of each municipality having a duly
71.33organized police department and having a duly incorporated relief association shall certify
71.34that fact to the county auditor of the county where the police department is located and to
72.1the commissioner on a form prescribed by the commissioner together with the other facts
72.2the commissioner or auditor may require.
72.3(e) (c) Except as provided in subdivision 2b, on or before March 15 annually, in
72.4order to qualify to receive police state aid, the clerk of each municipality and the auditor of
72.5each county employing one or more peace officers as defined in subdivision 1, clause (g),
72.6shall certify the number of such peace officers to the commissioner on forms prescribed by
72.7the commissioner. Credit for officers employed less than a full year must be apportioned.
72.8Each full month of employment of a qualifying officer during the calendar year entitles the
72.9employing municipality or county to credit for 1/12 of the payment for employment of a
72.10peace officer for the entire year. For purposes of sections69.011 to
69.051 , employment
72.11of a peace officer commences when the peace officer is entered on the payroll of the
72.12respective municipal police department or county sheriff's department. No peace officer
72.13may be included in the certification of the number of peace officers by more than one
72.14municipality or county employing unit for the same month.
72.15(d) A certification made under this subdivision must be filed with the commissioner,
72.16must be made on a form prescribed by the commissioner, and must include any other facts
72.17that the commissioner requires.
72.18 Sec. 7. Minnesota Statutes 2012, section 69.011, subdivision 3, is amended to read:
72.19 Subd. 3. Failure to file certificate deemed waiver. (a) If a certification required by
72.20this section is not filed with the commissioner by the due date prescribed by this section,
72.21the commissioner shall notify the county, the municipality, or the nonprofit firefighting
72.22corporation that a portion or all of its current year aid will be forfeited if the certification
72.23is not received within ten days.
72.24(b) The amount of aid forfeited is equal to the amount of state police aid or state fire
72.25aid determined for the county, the municipality, or the nonprofit firefighting corporation
72.26for the current year, multiplied by five percent for each week or fraction of a week that
72.27this certification is late. The penaltywill must be computed beginning ten days after the
72.28postmark date of the commissioner's notification as required under this subdivision. All
72.29forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the
72.30certificate formcannot may not be used as a defense for not filing a failure to file.
72.31 Sec. 8. Minnesota Statutes 2012, section 69.011, subdivision 4, is amended to read:
72.32 Subd. 4. Qualification for fire state aid.Any (a) A municipality in this state
72.33qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and
72.34if it meets the specific requirements of paragraph (c).
73.1(b) Minimum qualifications for fire state aid include the following:
73.2(1) having for more than one year an organized fire department and officially
73.3established by the governing body of the municipality or an independent nonprofit
73.4firefighting corporation created under the nonprofit corporation act of this state and
73.5operating exclusively for firefighting purposes and providing retirement and relief benefits
73.6to its members,; and
73.7(2) having a separate subsidiary incorporated firefighter's reliefand pension
73.8 association providing retirement and relief benefits, or participating in the voluntary
73.9statewide lump-sum volunteer firefighter retirement plan, may qualify to receive state aid
73.10if it meets the following or, if a paid fire department, having retirement coverage by the
73.11public employees police and fire retirement plan.
73.12(c) Minimum requirements for fire state aid also include the following or their
73.13equivalent as determined by the state fire marshalby July 1, 1972:
73.14(a) (1) having ten paid or volunteer firefighters including a fire chief and assistant
73.15fire chief, and;
73.16(b) (2) having regular scheduled meetings and frequent drills including instructions
73.17in firefighting tactics and in the use, care, and operation of all fire apparatus and
73.18equipment, and;
73.19(c) (3) having a motorized fire truck equipped with a motorized pump, 250 gallon or
73.20larger water tank, 300 feet of one inch or larger fire hose in two lines with combination
73.21spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent,
73.22dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
73.23axes, lanterns, fire coats, helmets, and boots, and;
73.24(d) (4) having apparatus suitably housed in a building of good construction with
73.25facilities for care of hose and equipment, and;
73.26(e) (5) having a reliable and adequate method of receiving fire alarms by telephone
73.27or with electric siren and suitable means of sounding an alarm, and;
73.28(f) (6) if response is to be provided outside the corporate limits of the municipality
73.29wherein the fire department is located,the municipality has having another piece of
73.30motorized apparatus to make the response,; and
73.31(g) (7) meeting other requirements that the commissioner establishes by rule.
73.32 Sec. 9. Minnesota Statutes 2012, section 69.021, subdivision 1, is amended to read:
73.33 Subdivision 1. Minnesota Firetown Premium Report and Minnesota Aid to
73.34Police Premium Report. The commissioner shall, at the time of mailing tax forms,
73.35send blank copies of the Minnesota Firetown Premium Report and when applicable the
74.1Minnesota Aid to Police Premium Report to each insurer, including township and farmers
74.2mutual insurance companies licensed to write insurance as described in section69.011,
74.3subdivision 1 , clauses (c) and (f) in this state. These reports shall must contain space
74.4for the insurers name, address, gross premiums less return premiums, dividends, net
74.5premiums, certification and other facts that the commissioner may require.
74.6 Sec. 10. Minnesota Statutes 2012, section 69.021, subdivision 2, is amended to read:
74.7 Subd. 2. Report of premiums. (a) Each insurer, including township and farmers
74.8mutual insurers where applicable, shall return to the commissioner the reports described in
74.9subdivision 1 certified by its secretary and president or chief financial officer.
74.10(b) The Minnesota Firetown Premium Reportshall must contain a true and accurate
74.11statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and
74.12extended coverage insurance of all domestic mutual insurers and the total premiums for
74.13all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all
74.14other insurers, less return premiums and dividends received by them on that business
74.15written or done during the preceding calendar year upon property located within the state
74.16or brought into the state for temporary use. The fire and extended coverage portion of
74.17multiperil and multiple peril package premiums and all other combination premiumsshall
74.18 must be determined by applying percentages determined by the commissioner or by rating
74.19bureaus recognized by the commissioner.
74.20(c) The Minnesota Aid to Police Premium Reportshall must contain a true and
74.21accurate statement of the total premiums, less return premiums and dividends, on all direct
74.22business received by such insurer in this state, or by its agents for it, in cash or otherwise,
74.23during the preceding calendar year, with reference to insurance written for perils described
74.24in section69.011, subdivision 1 , clause (f).
74.25 Sec. 11. Minnesota Statutes 2012, section 69.021, subdivision 3, is amended to read:
74.26 Subd. 3. Penalty for fraudulent, incorrect, incomplete returns and late filing of
74.27report. (a) When it appears to the commissioner that any insurer has made an incomplete or
74.28inaccurate report, the commissioner shall return the report and demand that a complete and
74.29accurate report be filed. If the insurer fails to file a report on or before March 1, annually,
74.30the insurershall be is liable and shall pay $25 for each seven days delinquent, or fraction
74.31thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a
74.32corrected report within 30 days after demand, the insurer is liable for the penalties provided
74.33inthis subdivision paragraph (b) or (c) for knowingly filing an inaccurate or false report.
75.1(b) Any insurerwho which knowingly makes and files an inaccurate or false report
75.2shall be is liable to a fine in an amount of not less than $25 nor more than $1,000, as
75.3determined by the commissioner, and additionally the commissioner of commerce may
75.4revoke the insurer's certificate of authority.
75.5(c) Any person whose duty it is to make the report who fails or refuses to make it
75.6within 30 days after notification by the commissioner shall be fined an amount of not
75.7more than $1,000.
75.8(d) Failure of the insurer to receive a reporting formshall does not excuse the insurer
75.9from filing the report.
75.10 Sec. 12. Minnesota Statutes 2012, section 69.021, subdivision 4, is amended to read:
75.11 Subd. 4. Determination of qualified state aid recipients; certification to
75.12commissioner of management and budget. (a) The commissioner shall determine
75.13which municipalities and independent nonprofit firefighting corporations are qualified to
75.14receive fire state aid directly or are qualified to receive the benefit of fire state aid paid
75.15to the voluntary statewide lump-sum volunteer firefighter retirement plan and which
75.16municipalities and counties are qualified to receive police state aid.
75.17(b) The commissioner shall determine qualification for state aid upon receipt of:
75.18(1) the fire department personnel and equipment certification or the police department
75.19and qualified peace officers certificate, whichever applies, required under section69.011 ;
75.20(2) the financial compliance report required under section6.495, subdivision 3 , if
75.21applicable; and
75.22(3) any other relevant information which comes to the attention of the commissioner.
75.23(c) Upon completion of the determination, on or before October 1, the commissioner
75.24shall calculate the amount of:
75.25(1) the police state aid which each county or municipality is to receive under
75.26subdivisions 5, 6, 7a, and 10; and
75.27(2) the fire state aid which each municipality or nonprofit firefighting corporation
75.28is to receive under subdivisions 5 and 7.
75.29(d) The commissioner shall certify to the commissioner of management and budget
75.30the name of each county or municipality, and the amount of state aid which each county or
75.31municipality is to receive, in the case of police state aid. The commissioner shall certify to
75.32the commissioner of management and budget the name of each municipality or independent
75.33nonprofit firefighting corporation and the amount of state aid which each municipality
75.34or independent nonprofit firefighting corporation is to receive directly or the amount of
76.1state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is
76.2qualified to receive on behalf of the municipality or corporation, in the case of fire state aid.
76.3 Sec. 13. Minnesota Statutes 2012, section 69.021, subdivision 5, is amended to read:
76.4 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
76.5apportionment, before the addition of the minimum fire state aid allocation amount under
76.6subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
76.7upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
76.8the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
76.9must be reduced by the amount required to pay the state auditor's costs and expenses of
76.10the audits or exams of the firefighters relief associations.
76.11The total amount for apportionment in respect to fire state aid must not be less than
76.12two percent of the premiums reported to the commissioner by insurers on the Minnesota
76.13Firetown Premium Report after subtracting the following amounts:
76.14(1) the amount required to pay the state auditor's costs and expenses of the audits or
76.15exams of the firefighters relief associations; and
76.16(2) one percent of the premiums reported by town and farmers' mutual insurance
76.17companies and mutual property and casualty companies with total assets of $5,000,000 or
76.18less.
76.19(b) The total amount for apportionment as police state aid is equal to 104 percent
76.20of the amount of premium taxes paid to the state on the premiums reported to the
76.21commissioner by insurers on the Minnesota Aid to Police Premium Report, reduced by
76.22the amount required to pay the costs and expenses of the state auditor for audits or exams
76.23of police relief associations. The total amount for apportionment in respect to the police
76.24state aid program must not be less than two percent of the amount of premiums reported
76.25to the commissioner by insurers on the Minnesota Aid to Police Premium Reportafter
76.26subtracting the amount required to pay the state auditor's cost and expenses of the audits
76.27or exams of the police relief associations.
76.28(c) The commissioner shall calculate the percentage of increase or decrease reflected
76.29in the apportionment over or under the previous year's available state aid using the same
76.30premiums as a basis for comparison.
76.31(d) In addition to the amount for apportionment of police state aid under paragraph
76.32(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
76.33pay this increase is annually appropriated from the general fund.
76.34 Sec. 14. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
77.1 Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
77.2(a) The commissioner shall apportion the fire state aid relative to the premiums reported
77.3on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
77.4and/or firefighters relief association qualified under section 69.011, subdivision 4.
77.5(b) The commissioner shall calculate an initial fire state aid allocation amount for each
77.6municipality or fire department under paragraph (c) and, if applicable, a minimum fire state
77.7aid allocation amount for each municipality or fire department under paragraph (d). The
77.8municipality or fire department mustreceive be apportioned the larger fire state aid amount.
77.9(c) The initial fire state aid allocation amount is the amount available for
77.10apportionment as fire state aid under subdivision 5, without the inclusion of any additional
77.11funding amount to support a minimum fire state aid amount under section423A.02,
77.12subdivision 3 , allocated one-half in proportion to the population as shown in the last
77.13official statewide federal census for each fire town and one-half in proportion to the market
77.14value of each fire town, including (1) the market value of tax-exempt property and (2) the
77.15market value of natural resources lands receiving in lieu payments under sections477A.11
77.16to
477A.14 , but excluding the market value of minerals. In the case of incorporated or
77.17municipal fire departments furnishing fire protection to other cities, towns, or townships
77.18as evidenced by valid fire service contracts filed with the commissioner, the distribution
77.19must be adjusted proportionately to take into consideration the crossover fire protection
77.20service. Necessary adjustments must be made to subsequent apportionments. In the case
77.21of municipalities or independent fire departments qualifying for the aid, the commissioner
77.22shall calculate the state aid for the municipality or relief association on the basis of the
77.23population and the market value of the area furnished fire protection service by the fire
77.24department as evidenced by duly executed and valid fire service agreements filed with the
77.25commissioner. If one or more fire departments are furnishing contracted fire service to a
77.26city, town, or township, only the population and market value of the area served by each
77.27fire department may be considered in calculating the state aid and the fire departments
77.28furnishing service shall enter into an agreement apportioning among themselves the
77.29percent of the population and the percent of the market value of each shared service area.
77.30The agreement must be in writing and must be filed with the commissioner.
77.31(d) The minimum fire state aid allocation amount is the amount in addition to the
77.32initial fire state allocation amount that is derived from any additional funding amount
77.33to support a minimum fire state aid amount under section423A.02, subdivision 3 , and
77.34allocated to municipalities with volunteer firefighters relief associations or covered by the
77.35voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
77.36of active volunteer firefighters who are members of the relief association as reported
78.1in the annual financial reporting for the calendar year 1993 to the Office of the State
78.2Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
78.3fire departments with volunteer firefighters relief associations receive in total at least a
78.4minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
78.530 firefighters. If a relief association is established after calendar year 1993 and before
78.6calendar year 2000, the number of active volunteer firefighters who are members of the
78.7relief association as reported in the annual financial reporting for calendar year 1998
78.8to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
78.9shall be used in this determination. If a relief association is established after calendar
78.10year 1999, the number of active volunteer firefighters who are members of the relief
78.11association as reported in the first annual financial reporting submitted to the Office of
78.12the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
78.13determination. If a relief association is terminated as a result of providing retirement
78.14coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
78.15firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
78.16of the municipality covered by the statewide plan as certified by the executive director of
78.17the Public Employees Retirement Association to the commissioner and the state auditor,
78.18but not to exceed 30 active firefighters, must be used in this determination.
78.19(e) Unless the firefighters of the applicable fire department are members of the
78.20voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
78.21be paid to the treasurer of the municipality where the fire department is located and the
78.22treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
78.23the aid to the relief association if the relief association has filed a financial report with the
78.24treasurer of the municipality and has met all other statutory provisions pertaining to the
78.25aid apportionment. If the firefighters of the applicable fire department are members of
78.26the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
78.27must be paid to the executive director of the Public Employees Retirement Association
78.28and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
78.29(f) The commissioner may make rules to permit the administration of the provisions
78.30of this section.
78.31(g) Any adjustments needed to correct prior misallocations must be made to
78.32subsequent fire state aid apportionments.
78.33 Sec. 15. Minnesota Statutes 2012, section 69.021, subdivision 7a, is amended to read:
78.34 Subd. 7a. Apportionment of police state aid. (a) Subject to the reduction provided
78.35for under subdivision 10, the commissioner shall apportion the police state aid to each
79.1municipalityand, to the each county, and to the Departments of Natural Resources and
79.2Public Safety in the following manner:
79.3(1) for all municipalities maintaining police departments, counties, the Department
79.4of Natural Resources, and the Department of Public Safety, the police state aid must be
79.5distributed in proportion to the relationship that the total number of peace officers, as
79.6determined under section69.011, subdivision 1 , clause paragraph (g), and subdivision 2,
79.7clause paragraph (b), employed by that employing unit for 12 calendar months and the
79.8proportional or fractional number who were employed less than 12 months bears to the total
79.9number of peace officers employed by all municipalitiesand, counties, the Departments of
79.10Natural Resources and Public Safety, subject to any reduction under subdivision 10;
79.11(2) for each municipality which contracts with the county for police service, a
79.12proportionate amount of the state aid distributed to the county based on the full-time
79.13equivalent number of peace officers providing contract service to that municipality must
79.14be credited against the municipality's contract obligation; and
79.15(3) for each municipality which contracts with another municipality for police
79.16service, a proportionate amount of the state aid distributed to the municipality providing
79.17contract service based on the full-time equivalent number of peace officers providing
79.18contract service to that municipality on a full-time equivalent basis must be credited
79.19against the contract obligation of the municipality receiving contract service.
79.20(b) Any necessary additional adjustments must be made to subsequent police state
79.21aid apportionments.
79.22 Sec. 16. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
79.23 Subd. 8. Population and market value. (a) In computations relating to fire state aid
79.24requiring the use of population figures, only official statewide federal census figuresare
79.25to may be used. Increases or decreases in population disclosed by reason of any special
79.26census must not be taken into consideration.
79.27(b) In calculations relating to fire state aid requiring the use of market value property
79.28figures, only the latest available market value property figures may be used.
79.29 Sec. 17. Minnesota Statutes 2012, section 69.021, subdivision 9, is amended to read:
79.30 Subd. 9. Appeal. (a) In the event that a municipality, a county, a fire relief
79.31association,a police relief association, the Department of Natural Resources, the
79.32Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter
79.33retirement plan, feels itself to be aggrieved, it may request the commissioner to review
80.1and adjust the apportionment of funds within the county in the case of police state aid, or
80.2within the state in the case of fire state aid.
80.3(b) The decision of the commissioner is subject to appeal, review, and adjustment by
80.4the district court in the county in which the applicable municipality, or fire department,
80.5or police department is located or by the Ramsey County District Court with respect to
80.6the Department of Natural Resources, the Department of Public Safety, or the voluntary
80.7statewide lump-sum volunteer firefighter retirement plan.
80.8 Sec. 18. Minnesota Statutes 2012, section 69.021, subdivision 10, is amended to read:
80.9 Subd. 10. Reduction in police state aid apportionment. (a) The commissioner of
80.10revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph
80.11(b), 6, and 7a, for eligible employer units by the amount of any excess police state aid.
80.12(b) "Excess police state aid" is:
80.13(1) for counties and for municipalities in which police retirement coverage is
80.14provided wholly by the public employees police and fire fund and all police officers are
80.15members of the plan governed by sections353.63 to
353.657 , the amount in excess of the
80.16employer's total prior calendar year obligation as defined in paragraph (c), as certified by
80.17the executive director of the Public Employees Retirement Association;
80.18(2) for municipalities in which police retirement coverage is provided in part by the
80.19public employees police and fire fund governed by sections
353.63 to
353.657 and in
80.20part by a local police consolidation account governed by chapter 353A, and established
80.21before March 2, 1999, for which the municipality declined merger under section
353.665,
80.22subdivision 1
, or established after March 1, 1999, the amount in excess of the employer's
80.23total prior calendar year obligation as defined in paragraph (c), plus the amount of the
80.24employer's total prior calendar year obligation under section
353A.09, subdivision 5,
80.25paragraphs (a) and (b), as certified by the executive director of the Public Employees
80.26Retirement Association;
80.27(3) for municipalities in which police retirement coverage is provided by the public
80.28employees police and fire plan governed by sections
353.63 to
353.657, in which police
80.29retirement coverage was provided by a police consolidation account under chapter
80.30353A before July 1, 1999, and for which the municipality has an additional municipal
80.31contribution under section
353.665, subdivision 8, paragraph (b), the amount in excess of
80.32the employer's total prior calendar year obligation as defined in paragraph (c), plus the
80.33amount of any additional municipal contribution under section
353.665, subdivision 8,
80.34paragraph (b), until the year 2010, as certified by the executive director of the Public
80.35Employees Retirement Association;
81.1(4) (2) for municipalities in which police retirement coverage is provided in part by
81.2the public employees police and fire fund governed by sections
353.63 to
353.657 and in
81.3part by a local police relief association governed by sections
69.77 and
423A.01
81.4of Fairmont and Minneapolis, the amount in excess of the employer's total prior calendar
81.5year obligation as defined in paragraph (c), as certified by the executive director of the
81.6public employees retirement association, plus the amount ofthe financial requirements of
81.7the relief association certified to the applicable municipality during the prior calendar year
81.8under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions
81.9deducted from the covered salary of the relief association during the prior calendar year
81.10under section
69.77, subdivision 3, as certified by the chief administrative officer of the
81.11applicable municipality any additional municipal contribution under section 353.668,
81.12subdivision 6, or 353.669, subdivision 6;
81.13(5) (3) for the Metropolitan Airports Commission, the amount in excess of the
81.14commission's total prior calendar year obligation as defined in paragraph (c), as certified
81.15by the executive director of the Public Employees Retirement Association; and
81.16(6) (4) for the Department of Natural Resources and for the Department of Public
81.17Safety, the amount in excess of the employer's total prior calendar year obligation under
81.18section352B.02, subdivision 1c , for plan members who are peace officers under section
81.1969.011, subdivision 1
, clause (g), as certified by the executive director of the Minnesota
81.20State Retirement System.
81.21(c) The employer's total prior calendar year obligation with respect to the public
81.22employees police and fire plan under paragraph (b), clause (1), is the total prior calendar
81.23year obligation under section353.65, subdivision 3 , for police officers as defined in
81.24section353.64, subdivision 2 , and the actual total prior calendar year obligation under
81.25section353.65, subdivision 3 , for firefighters, as defined in section
353.64, subdivision
81.263 , but not to exceed for those firefighters the applicable following amounts employer
81.27calendar year amount:
82.40(d) The total amount of excess police state aid must be deposited in the excess
82.41police state-aid account in the general fund, administered and distributed as provided
82.42in subdivision 11.
83.1 Sec. 19. Minnesota Statutes 2012, section 69.021, subdivision 11, is amended to read:
83.2 Subd. 11. Excess police state-aid holding account. (a) The excess police state-aid
83.3holding account is established in the general fund. The excess police state-aid holding
83.4account must be administered by the commissioner.
83.5 (b) Excess police state aid determined according to subdivision 10, must be
83.6deposited annually in the excess police state-aid holding account.
83.7 (c) From the balance in the excess police state-aid holding account, $900,000 must
83.8be canceled annually to the general fund.
83.9(d) If a police officer stress reduction program is created by law and money is
83.10appropriated for that program, an amount equal to that appropriation must be transferred
83.11to the administrator of that program from the balance in the excess police state-aid holding
83.12account.
83.13(e) (d) On October 1 of each year, one-half of the balance of the excess police
83.14state-aid holding account remaining after thedeductions deduction under paragraphs
83.15 paragraph (c)and (d) is appropriated for additional amortization aid under section
83.16423A.02, subdivision 1b
.
83.17(f) (e) Annually, the remaining balance in the excess police state-aid holding account,
83.18after the deductions under paragraphs (c), and (d), and (e), cancels to the general fund.
83.19 Sec. 20. Minnesota Statutes 2012, section 69.031, subdivision 1, is amended to read:
83.20 Subdivision 1. Commissioner's warrant. (a) The commissioner of management
83.21and budget shall issue to the Public Employees Retirement Association on behalf of
83.22a municipality or independent nonprofit firefighting corporation that is a member of the
83.23voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G,
83.24to the Department of Natural Resources, the Department of Public Safety, orto the
83.25county, municipality, or independent nonprofit firefighting corporation certified to the
83.26commissioner of management and budget by the commissioner a warrant for an amount
83.27equal to the amount of fire state aid or police state aid, whichever applies, certified for the
83.28applicable state aid recipient by the commissioner under section69.021 .
83.29(b) Fire state aid and police state aid is payable on October 1 annually. The amount
83.30of state aid due and not paid by October 1 accrues interest payable to the state aid recipient
83.31at the rate of one percent for each month or part of a month that the amount remains
83.32unpaid after October 1.
83.33 Sec. 21. Minnesota Statutes 2012, section 69.031, subdivision 3, is amended to read:
84.1 Subd. 3. Appropriations. There is hereby appropriated annually from the state
84.2general fund to the commissioner of revenuean amount amounts sufficient to make the
84.3police state aid payments and the fire state aid payments specified in this section and
84.4section69.021 .
84.5 Sec. 22. Minnesota Statutes 2012, section 69.031, subdivision 5, is amended to read:
84.6 Subd. 5. Deposit of state aid. (a) If the municipality or the independent nonprofit
84.7firefighting corporation is covered by the voluntary statewide lump-sum volunteer
84.8firefighter retirement plan under chapter 353G, the executive director shall credit the fire
84.9state aid against future municipal contribution requirements under section353G.08 and
84.10shall notify the municipality or independent nonprofit firefighting corporation of the fire
84.11state aid so credited at least annually. If the municipality or the independent nonprofit
84.12firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.13firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt,
84.14transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief
84.15association if there is one organized and the association has filed a financial report with the
84.16municipality. If the relief association has not filed a financial report with the municipality,
84.17the municipal treasurer shall delay transmission of the fire state aid to the relief association
84.18until the complete financial report is filed. If the municipality or independent nonprofit
84.19firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.20firefighter retirement plan, if there is no relief association organized, or if the association
84.21has dissolved or has been removed as trustees of state aid, then the treasurer of the
84.22municipality shall deposit the money in the municipal treasury and the money may be
84.23disbursed only for the purposes and in the manner set forth in section424A.08 or for the
84.24payment of the employer contribution requirement with respect to firefighters covered by
84.25the public employees police and fire retirement plan under section353.65, subdivision 3 .
84.26(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the
84.27police state aid in the following manner:
84.28(1) For a municipality in which a local police relief association exists and all peace
84.29officers are members of the association, the total state aid must be transmitted to the
84.30treasurer of the relief association within 30 days of the date of receipt, and the treasurer
84.31of the relief association shall immediately deposit the total state aid in the special fund
84.32of the relief association;
84.33(2) (b) For a municipality in which police retirement coverage is provided by the
84.34public employees police and fire fund and all peace officers are members of the fund,
84.35including municipalities covered by section353.665 , the total state aid must be applied
85.1toward the municipality's employer contribution to the public employees police and
85.2fire fund under sections353.65, subdivision 3 , and 353.665 353.668, subdivision 8 6,
85.3paragraph (b) or 353.669, subdivision 6, if applicable; or.
85.4(3) For a municipality other than a city of the first class with a population of more
85.5than 300,000 in which both a police relief association exists and police retirement
85.6coverage is provided in part by the public employees police and fire fund, the municipality
85.7may elect at its option to transmit the total state aid to the treasurer of the relief association
85.8as provided in clause (1), to use the total state aid to apply toward the municipality's
85.9employer contribution to the public employees police and fire fund subject to all the
85.10provisions set forth in clause (2), or to allot the total state aid proportionately to be
85.11transmitted to the police relief association as provided in this subdivision and to apply
85.12toward the municipality's employer contribution to the public employees police and fire
85.13fund subject to the provisions of clause (2) on the basis of the respective number of active
85.14full-time peace officers, as defined in section
69.011, subdivision 1, clause (g).
85.15For a city of the first class with a population of more than 300,000, in addition, the
85.16city may elect to allot the appropriate portion of the total police state aid to apply toward
85.17the employer contribution of the city to the public employees police and fire fund based
85.18on the covered salary of police officers covered by the fund each payroll period and to
85.19transmit the balance to the police relief association; or
85.20(4) For a municipality in which police retirement coverage is provided in part by
85.21the public employees police and fire fund and in part by a local police consolidation
85.22account governed by chapter 353A and established before March 2, 1999, for which the
85.23municipality declined merger under section
353.665, subdivision 1, or established after
85.24March 1, 1999, the total police state aid must be applied towards the municipality's total
85.25employer contribution to the public employees police and fire fund and to the local police
85.26consolidation account under sections
353.65, subdivision 3, and
353A.09, subdivision 5.
85.27(c) The county treasurer, upon receipt of the police state aid for the county, shall
85.28apply the total state aid toward the county's employer contribution to the public employees
85.29police and fire fund under section353.65, subdivision 3 .
85.30(d) The designated Metropolitan Airports Commission official, upon receipt of the
85.31police state aid for the Metropolitan Airports Commission, shall apply the total police
85.32state aid toward the commission's employer contribution for police officers to the public
85.33employees police and fire plan under section353.65, subdivision 3 .
85.34(e) The police state aid apportioned to the Departments of Public Safety and Natural
85.35Resources under section69.021, subdivision 7a , is appropriated to the commissioner of
85.36management and budget for transfer to the funds and accounts from which the salaries of
86.1peace officers certified under section69.011, subdivision 2b , are paid. The commissioner
86.2of revenue shall certify to the commissioners of public safety, natural resources, and
86.3management and budget the amounts to be transferred from the appropriation for police
86.4state aid. The commissioners of public safety and natural resources shall certify to the
86.5commissioner of management and budget the amounts to be credited to each of the funds
86.6and accounts from which the peace officers employed by their respective departments are
86.7paid. Each commissioner shall allocate the police state aid first for employer contributions
86.8for employees funded from the general fund and then for employer contributions for
86.9employees funded from other funds. For peace officers whose salaries are paid from the
86.10general fund, the amounts transferred from the appropriation for police state aid must
86.11be canceled to the general fund.
86.12 Sec. 23. Minnesota Statutes 2012, section 69.041, is amended to read:
86.1369.041 SHORTFALL FROM GENERAL FUND.
86.14(a) If the annual funding requirements of fire or police relief associations or
86.15consolidation accounts under sections69.77,
69.771 to
69.775 , or
353A.09 , or sections
86.1631 to 42, exceed all applicable revenue sources of a given year, including the insurance
86.17premium taxes funding the applicable fire or police state aid as set under section297I.05,
86.18subdivisions 2, 3, and 4 , the shortfall in the annual funding requirements must be paid
86.19from the general fund to the extent appropriated by the legislature.
86.20(b) Nothing in this section may be deemed to relieve any municipality from its
86.21obligation to a relief association or consolidation account under law.
86.22 Sec. 24. Minnesota Statutes 2012, section 69.051, subdivision 1, is amended to read:
86.23 Subdivision 1. Financial report and audit. (a) The board ofeach salaried
86.24firefighters the Bloomington Fire Department Relief Association, police relief association,
86.25 and each volunteer firefighters relief association as defined in section424A.001,
86.26subdivision 4 , with assets of at least $200,000 or liabilities of at least $200,000 in the prior
86.27year or in any previous year, according to the applicable actuarial valuation or according
86.28to the financial report if no valuation is required, shall prepare a financial report covering
86.29the special and general funds of the relief association for the preceding fiscal year, file the
86.30financial report, and submit financial statements.
86.31(b) The financial report must contain financial statements and disclosures which
86.32present the true financial condition of the relief association and the results of relief
86.33association operations in conformity with generally accepted accounting principles and in
87.1compliance with the regulatory, financing and funding provisions of this chapter and any
87.2other applicable laws. The financial report must be countersigned by:
87.3(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
87.4association is located if the relief association is a firefighters relief association which is
87.5directly associated with a municipal fire departmentor is a police relief association; or
87.6(2) by the municipal clerk or clerk-treasurer of the largest municipality in population
87.7which contracts with the independent nonprofit firefighting corporation if the volunteer
87.8firefighter relief association is a subsidiary of an independent nonprofit firefighting
87.9corporation and by the secretary of the independent nonprofit firefighting corporation; or
87.10(3) by the chief financial official of the county in which the volunteer firefighter
87.11relief association is located or primarily located if the relief association is associated with
87.12a fire department that is not located in or associated with an organized municipality.
87.13(c) The financial report must be retained in its office for public inspection and must
87.14be filed with the governing body of the government subdivision in which the associated
87.15fire department is located after the close of the fiscal year. One copy of the financial report
87.16must be furnished to the state auditor after the close of the fiscal year.
87.17(d) Audited financial statements must be attested to by a certified public accountant
87.18or by the state auditor and must be filed with the state auditor within 180 days after the
87.19close of the fiscal year. The state auditor may accept this report in lieu of the report
87.20required in paragraph (c).
87.21 Sec. 25. Minnesota Statutes 2012, section 69.051, subdivision 1a, is amended to read:
87.22 Subd. 1a. Financial statement. (a) The board of each volunteer firefighters relief
87.23association, as defined in section424A.001, subdivision 4 , that is not required to file a
87.24financial report and audit under subdivision 1 must prepare a detailed statement of the
87.25financial affairs for the preceding fiscal year of the relief association's special and general
87.26funds in the style and form prescribed by the state auditor. The detailed statement must
87.27show:
87.28(1) the sources and amounts of all money received;
87.29(2) all disbursements, accounts payable and accounts receivable;
87.30(3) the amount of money remaining in the treasury;
87.31(4) total assets, including a listing of all investments;
87.32(5) the accrued liabilities; and
87.33(6) all other items necessary to show accurately the revenues and expenditures and
87.34financial position of the relief association.
88.1(b) The detailed financial statement required under paragraph (a) must be certified
88.2by an independent public accountant or auditor or by the auditor or accountant who
88.3regularly examines or audits the financial transactions of the municipality. In addition to
88.4certifying the financial condition of the special and general funds of the relief association,
88.5the accountant or auditor conducting the examination shall give an opinion as to the
88.6condition of the special and general funds of the relief association, and shall comment
88.7upon any exceptions to the report. The independent accountant or auditor must have at
88.8least five years of public accounting, auditing, or similar experience, and must not be an
88.9active, inactive, or retired member of the relief association or the fireor police department.
88.10(c) The detailed statement required under paragraph (a) must be countersigned by:
88.11(1) the municipal clerk or clerk-treasurer of the municipality; or
88.12(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
88.13municipality in population which contracts with the independent nonprofit firefighting
88.14corporation if the relief association is a subsidiary of an independent nonprofit firefighting
88.15corporation and by the secretary of the independent nonprofit firefighting corporation; or
88.16(3) by the chief financial official of the county in which the volunteer firefighter
88.17relief association is located or primarily located if the relief association is associated with
88.18a fire department that is not located in or associated with an organized municipality.
88.19(d) The volunteer firefighters' relief association board must file the detailed statement
88.20required under paragraph (a) in the relief association office for public inspection and
88.21present it to thecity council governing body of the municipality within 45 days after the
88.22close of the fiscal year, and must submit a copy of the detailed statement to the state
88.23auditor within 90 days of the close of the fiscal year.
88.24 Sec. 26. Minnesota Statutes 2012, section 69.051, subdivision 1b, is amended to read:
88.25 Subd. 1b. Qualification. The state auditor may, upon a demonstration by a relief
88.26association of hardship or an inability to conform, extend the deadline for reports under
88.27subdivisions 1 or 1a, but not beyond November 30th following the due date. If the
88.28reports are not received by November 30th, the municipality or relief associationwill
88.29forfeit forfeits its current year state aid, and, until the state auditor receives the required
88.30information, the relief association or municipalitywill be is ineligible to receive any
88.31future state aid. A municipality orpolice or firefighters' relief association shall does not
88.32qualify initially to receive, or be entitled subsequently to retain, state aidpursuant to under
88.33this chapter if the financial reporting requirement or the applicable requirements of this
88.34chapter or any other statute or special law have not been complied with or are not fulfilled.
89.1 Sec. 27. Minnesota Statutes 2012, section 69.051, subdivision 2, is amended to read:
89.2 Subd. 2. Treasurers bond.No (a) The treasurer of a the Bloomington Fire
89.3Department Relief Associationgoverned by section 69.77 shall may not enter upon duties
89.4without having given the association a bond in a reasonable amount acceptable to the
89.5municipality for the faithful discharge of duties according to law.
89.6(b) No treasurer of a relief association governed by sections69.771 to
69.776 shall
89.7 may enter upon the duties of the office until the treasurer has given the association a good
89.8and sufficient bond in an amount equal to at least ten percent of the assets of the relief
89.9association; however, the amount of the bond need not exceed $500,000.
89.10 Sec. 28. Minnesota Statutes 2012, section 69.051, subdivision 3, is amended to read:
89.11 Subd. 3. Report by certain municipalities. (a) The chief administrative officer
89.12of each municipality which has an organized fire department but which does not have a
89.13firefighters' relief association governed by section69.77 or sections
69.771 to
69.775 and
89.14which is not exempted under paragraph (b) shall annually prepare a detailed financial
89.15report of the receipts and disbursements by the municipality for fire protection service
89.16during the preceding calendar year, on a form prescribed by the state auditor. The financial
89.17report must contain any information which the state auditor deems necessary to disclose
89.18the sources of receipts and the purpose of disbursements for fire protection service.
89.19The financial report must be signed by the municipal clerk or clerk-treasurer of the
89.20municipality. The financial report must be filed by the municipal clerk or clerk-treasurer
89.21with the state auditor on or before July 1 annually. The municipalityshall does not qualify
89.22initially to receive,or be and is not entitled subsequently to retain, state aid under this
89.23chapter if the financial reporting requirement or the applicable requirements of this chapter
89.24or any other statute or special law have not been complied with or are not fulfilled.
89.25(b) Each municipality that has an organized fire department and provides retirement
89.26coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
89.27retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
89.28retained in the statewide lump-sum volunteer firefighter retirement fund without filing
89.29a detailed financial report if the executive director of the Public Employees Retirement
89.30Association certifies compliance by the municipality with the requirements of sections
89.31353G.04
and
353G.08 , paragraph (e), and certifies conformity by the applicable fire chief
89.32with the requirements of section353G.07 .
89.33 Sec. 29. Minnesota Statutes 2012, section 69.051, subdivision 4, is amended to read:
90.1 Subd. 4. Notification by commissioner and state auditor. (a) The state auditor,
90.2 in performing an audit or examination, shall notify the Legislative Commission on
90.3Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or
90.4nonfeasance in office by relief association officials or municipal officials.
90.5(b) The commissioner shall notify the Legislative Commission on Pensions and
90.6Retirement if the state auditor has not filed the required financial compliance reports
90.7by July 1.
90.8 Sec. 30. Minnesota Statutes 2012, section 69.33, is amended to read:
90.969.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE
90.10COMPANIES.
90.11For purposes of the first class city fire insurance premium tax surcharge aid program
90.12under section 297I.10, the commissioner shall enclose in the annual statement blank that is
90.13sent to all fire insurance companies doing business in this state a blank form containing
90.14the names of all cities of the first class and require these companies, at the time of making
90.15their annual statements to the commissioner, to state on these blanks the amount of
90.16premiums received by them upon properties insured within the corporate limits of the
90.17cities named thereon during the year ending December 31st last past. Thereafter, before
90.18July first each year, the commissioner shall certify to the commissioner of management
90.19and budget the information thus obtained, together with the amount of the tax for the
90.20benefit of the pension plans covering firefighters in cities of the first class paid in such
90.21year by these companies upon these insurance premiums.
90.22 Sec. 31. Minnesota Statutes 2012, section 69.77, subdivision 1, is amended to read:
90.23 Subdivision 1. Conditioned employer support fora the Bloomington Fire
90.24Department Relief Association. (a) Notwithstanding any law to the contrary, only
90.25if themunicipality city of Bloomington and the Bloomington Fire Department Relief
90.26Association comply with the provisions of this section,a municipality the city of
90.27Bloomington may contribute public funds, including any applicable police or fire state
90.28aid, or levy property taxes for the support ofa police or firefighters' the Bloomington
90.29Fire Department Relief Association, enumerated in subdivision 1a, however organized,
90.30which provides retirement coverage or pays a service pension to a retired police officer or
90.31firefighter or a retirement benefit to a surviving dependent of either an active or retired
90.32police officer or firefighter, and for the operation and maintenance of the relief association.
90.33(b) The commissioner shall not include in the apportionment ofpolice or fire state
90.34aidto the county auditor under section
69.021, subdivision 6, any municipality in which
91.1there exists a local police or salaried firefighters' relief association as enumerated in
91.2subdivision 1a which the city of Bloomington if the Bloomington Fire Department Relief
91.3Association does not comply with the provisions of this section or the provisions of any
91.4applicable special law relating to the funding or financing of the association andthat
91.5municipality the city of Bloomington may not qualify initially to receive, or be entitled
91.6subsequently to retain, fire state aid under sections69.011 to
69.051 until the reason
91.7for the disqualification is remedied, whereupon themunicipality city of Bloomington,
91.8if otherwise qualified, is entitled to again receive fire state aid for the year occurring
91.9immediately subsequent to the year in which the disqualification is remedied.
91.10(c) The state auditor and the commissioner shall determine ifa municipality with a
91.11local police or salaried firefighters' relief association fails the city of Bloomington and the
91.12Bloomington Fire Department Relief Association fail to comply with the provisions of
91.13this section or the funding or financing provisions of any applicable special law.
91.14 Sec. 32. Minnesota Statutes 2012, section 69.77, subdivision 2, is amended to read:
91.15 Subd. 2. Inapplicable penalty. The penalty provided for in subdivision 1 does not
91.16apply toa the Bloomington Fire Department Relief Association enumerated in subdivision
91.171a if the requirements of subdivisions 3 to 10 are met.
91.18 Sec. 33. Minnesota Statutes 2012, section 69.77, subdivision 4, is amended to read:
91.19 Subd. 4. Relief association financial requirements; minimum municipal
91.20obligation. (a) The officers of the Bloomington Fire Department Relief Association
91.21shall determine the financial requirements of the relief association and the minimum
91.22obligation of themunicipality city of Bloomington for the following calendar year in
91.23accordance with the requirements of this subdivision. The financial requirements of the
91.24relief association and the minimum obligation of themunicipality city of Bloomington
91.25must be determined on or before the submission date established by themunicipality
91.26 city of Bloomington under subdivision 5.
91.27(b) The financial requirements of the relief association for the following calendar
91.28year must be based on the most recent actuarial valuation or survey of the special fund of
91.29the association if more than one fund is maintained by the association, or of the association,
91.30if only one fund is maintained, prepared in accordance with sections356.215 , subdivisions
91.314 to 15, and356.216 , as required under subdivision 10. If an actuarial estimate is prepared
91.32by the actuary of the relief association as part of obtaining a modification of the benefit
91.33plan of the relief association and the modification is implemented, the actuarial estimate
91.34must be used in calculating the subsequent financial requirements of the relief association.
92.1(c) If the relief association has an unfunded actuarial accrued liability as reported in
92.2the most recent actuarial valuation or survey, the total of the amounts calculated under
92.3clauses (1), (2), and (3), constitute the financial requirements of the relief association for
92.4the following year. If the relief association does not have an unfunded actuarial accrued
92.5liability as reported in the most recent actuarial valuation or survey, the amount calculated
92.6under clauses (1) and (2) constitute the financial requirements of the relief association for
92.7the following year. The financial requirement elements are:
92.8(1) the normal level cost requirement for the following year, expressed as a dollar
92.9amount, which must be determined by applying the normal level cost of the relief
92.10association as reported in the actuarial valuation or survey and expressed as a percentage
92.11of covered payroll to the estimated covered payroll of the active membership of the relief
92.12association, including any projected change in the active membership, for the following
92.13year;
92.14(2)for the Bloomington Fire Department Relief Association, to the dollar amount
92.15of normal cost determined under clause (1) must be added an amount equal to the dollar
92.16amount of the administrative expenses of the special fund of the association if more
92.17than one fund is maintained by the association, or of the association if only one fund is
92.18maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
92.19expenses are those authorized under section69.80 ; and
92.20(3) to the dollar amount of normal cost and expenses determined under clauses
92.21(1) and (2) must be added an amount equal to the level annual dollar amount which
92.22is sufficient to amortize the unfunded actuarial accrued liability as determined from
92.23the actuarial valuation or survey of the fund, using an interest assumption set at the
92.24applicable rate specified in section356.215, subdivision 8 , by that fund's amortization
92.25date as specified in paragraph (d).
92.26(d) The Bloomington Fire Department Relief Association special fund amortization
92.27date is determined under section356.216 , clause (2). The amortization date specified in
92.28this paragraph supersedes any amortization date specified in any applicable special law.
92.29(d) If the actuarial value of the assets of the special fund of the relief association
92.30exceed the actuarial accrued liability as reported in the most recent actuarial valuation of the
92.31special fund of the relief association, the financial requirements of the relief association are
92.32the amounts calculated under paragraph (c), clauses (1) and (2), reduced by one-tenth of the
92.33amount by which the actuarial value of the assets of the special fund of the relief association
92.34exceeds the actuarial accrued liability of the special fund of the relief association.
92.35(e) The minimum obligation of the municipality is an amount equal to the financial
92.36requirements of the relief association reduced by the estimated amount of member
93.1contributions from covered salary anticipated for the following calendar year and the
93.2estimatedamounts amount anticipated for the following calendar year from the applicable
93.3 fire state aid program established under sections69.011 to
69.051 receivable by the relief
93.4association after any allocation made under section69.031, subdivision 5 , paragraph (b),
93.5clause (2), or
423A.01, subdivision 2, paragraph (a), clause (6), from the local police
93.6and salaried firefighters' relief association amortization aid program established under
93.7section
423A.02, subdivision 1, from the supplementary amortization state-aid program
93.8established under section
423A.02, subdivision 1a, and from the additional amortization
93.9state aid under section
423A.02, subdivision 1b
93.10 Sec. 34. Minnesota Statutes 2012, section 69.77, subdivision 5, is amended to read:
93.11 Subd. 5. Determination submission. The officers of the relief association shall
93.12submit the determination of the financial requirements of the relief association and of the
93.13minimum obligation of the municipality to thegoverning body Bloomington City Council
93.14on or before the date established by themunicipality city of Bloomington, which may
93.15not be earlier than August 1 and may not be later than September 1 of each year. The
93.16governing body of the municipality Bloomington City Council must ascertain whether or
93.17not the determinations were prepared in accordance with law.
93.18 Sec. 35. Minnesota Statutes 2012, section 69.77, subdivision 6, is amended to read:
93.19 Subd. 6. Municipal payment. (a) Themunicipality city of Bloomington shall
93.20provide for and shall pay, each year, at least the amount of the minimum obligation of the
93.21municipality city of Bloomington to the Bloomington Fire Department Relief Association.
93.22(b) If there is any deficiency in the municipal payment to meet the minimum
93.23obligation of themunicipality city of Bloomington as of the end of any calendar year, the
93.24amount of the deficiency must be added to the minimum obligation of themunicipality city
93.25of Bloomington for the following year calculated under subdivision 4 and must include
93.26interest at the compound rate of six percent per annum from the date that themunicipality
93.27 city of Bloomington was required to make payment under this subdivision until the date
93.28that themunicipality city of Bloomington actually makes the required payment.
93.29 Sec. 36. Minnesota Statutes 2012, section 69.77, subdivision 7, is amended to read:
93.30 Subd. 7. Budget inclusion. (a) Themunicipality city of Bloomington shall provide
93.31in the annual municipal budget for at least the minimum obligation of the municipality
93.32calculated under subdivision 4.
94.1(b) Themunicipality city of Bloomington may levy taxes for the payment of the
94.2minimum obligation of themunicipality city of Bloomington without any limitation as to
94.3rate or amount and irrespective of limitations imposed by other provisions of law upon the
94.4rate or amount of taxation when the balance of the special fund or any fund of the relief
94.5association has attained a specified minimum asset level. In addition, any taxes levied
94.6under this section may not cause the amount or rate of other taxes levied in that year or to
94.7be levied in a subsequent year by themunicipality city of Bloomington which are subject
94.8to a limitation as to rate or amount to be reduced.
94.9(c) If themunicipality city of Bloomington does not include the full amount of
94.10the minimum obligation of themunicipality city of Bloomington in the levy that the
94.11municipality city of Bloomington certified to the Hennepin County auditor in any year, the
94.12officers of the relief association shall certify the amount of any deficiency to the Hennepin
94.13County auditor. Upon verifying the existence of any deficiency in the levy certified by
94.14themunicipality city of Bloomington, the Hennepin County auditor shall spread a levy
94.15over the taxable property of themunicipality city of Bloomington in the amount of the
94.16deficiency certified to by the officers of the relief association.
94.17 Sec. 37. Minnesota Statutes 2012, section 69.77, subdivision 8, is amended to read:
94.18 Subd. 8. Accelerated amortization. Any sums of money paid by themunicipality
94.19 city of Bloomington to the relief association in excess of the minimum obligation of the
94.20municipality city of Bloomington in any year must be used to amortize any unfunded
94.21actuarial accrued liabilities of the Bloomington Fire Department Relief Association.
94.22 Sec. 38. Minnesota Statutes 2012, section 69.77, subdivision 9, is amended to read:
94.23 Subd. 9. Local paid fire relief association investment authority. (a) Thespecial
94.24fund funds of the association must be invested in securities that are authorized investments
94.25under section356A.06, subdivision 6 or 7, whichever applies.
94.26(b) The governing board of the Bloomington Fire Department Relief Association
94.27may select and appoint a qualified private firm to measure management performance and
94.28return on investment, and the firm must use the formula or formulas developed by the
94.29State Board of Investment under section11A.04 , clause (11). The governing board of the
94.30Bloomington Fire Department Relief Association may certify general fund assets of the
94.31relief association for investment by the State Board of Investment in fixed income pools
94.32or in a separately managed account at the discretion of the State Board of Investment
94.33as provided in section11A.14 .
95.1(c) The governing board of the association may certify general fund assets of the
95.2relief association for investment by the State Board of Investment in fixed income pools
95.3or in a separately managed account at the discretion of the State Board of Investment
95.4as provided in section
11A.14.
95.5 Sec. 39. Minnesota Statutes 2012, section 69.77, subdivision 10, is amended to read:
95.6 Subd. 10. Actuarial valuation required. The governing board of the Bloomington
95.7Fire Department Relief Association shall obtain an actuarial valuation showing the
95.8condition of the special fund of the relief association under sections356.215 and
356.216
95.9andany the applicable standards for actuarial work established by the Legislative
95.10Commission on Pensions and Retirement. The actuarial valuation must be made as of
95.11December 31 of every year. A copy of the actuarial valuation must be filed with the
95.12Director of the Legislative Reference Library, thegoverning body of the municipality in
95.13which the association is organized Bloomington City Council, the executive director of
95.14the Legislative Commission on Pensions and Retirement, and the state auditor, not later
95.15than July 1 of the following year.
95.16 Sec. 40. Minnesota Statutes 2012, section 69.77, subdivision 11, is amended to read:
95.17 Subd. 11. Municipal approval of benefit changes required. Any amendment to
95.18the bylaws or articles of incorporation ofa the Bloomington Fire Department Relief
95.19Association which increases or otherwise affects the retirement coverage provided by or
95.20the service pensions or retirement benefits payable fromany police or firefighters' the
95.21relief associationenumerated in subdivision 1a is not effective until it is ratified by the
95.22municipality in which the relief association is located city of Bloomington. The officers
95.23of the relief association shall not seek municipal ratification before obtaining either an
95.24updated actuarial valuation including the proposed amendment or an estimate of the
95.25expected actuarial impact of the proposed amendment prepared by the actuary of the relief
95.26association and submitting that actuarial valuation or estimate to the Bloomington city
95.27clerkof the municipality.
95.28 Sec. 41. Minnesota Statutes 2012, section 69.77, subdivision 12, is amended to read:
95.29 Subd. 12. Application of other laws to contribution rate. In the absence of any
95.30specific provision to the contrary, no general or special law previously enacted may be
95.31construed as reducing the levy amountor rate of contribution to a police or firefighters the
95.32Bloomington Fire Department Relief Association to which subdivision 1a applies, bya
95.33municipality or member of the association the city of Bloomington, which is required as a
96.1condition for the use of public funds or the levy of taxes for the support of the association.
96.2Each The Bloomington Fire Department Relief Association, the municipality in which
96.3it is organized city of Bloomington, and the officers of each, are authorized to do all
96.4things required by this section as a condition for the use of public funds or the levy of
96.5taxes for the support of the association.
96.6 Sec. 42. Minnesota Statutes 2012, section 69.77, subdivision 13, is amended to read:
96.7 Subd. 13. Citation. This section may be cited as the "Police and Firefighters'
96.8 Bloomington Fire Department ReliefAssociations Association Guidelines Act of 1969."
96.9 Sec. 43. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
96.10 Subdivision 1. Covered relief associations. The applicable provisions of sections
96.1169.771
to
69.776 apply to any firefighters' relief association other than a the Bloomington
96.12Fire Department Relief Associationenumerated in section
69.77, subdivision 1a, which
96.13is organized under any laws of this state, which is composed of volunteer firefighters or
96.14is composed partially of volunteer firefighters and partially of salaried firefighters with
96.15retirement coverage provided by the public employees police and fire fund and which, in
96.16either case, operates subject to the service pension minimum requirements for entitlement
96.17and maximums contained in section424A.02 , or subject to a special law modifying those
96.18requirements or maximums.
96.19 Sec. 44. Minnesota Statutes 2012, section 69.80, is amended to read:
96.2069.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
96.21(a) Notwithstanding any provision of law to the contrary, the payment of the
96.22following necessary, reasonable and direct expenses of maintaining, protecting and
96.23administering the special fund, when provided for in the bylaws of the association and
96.24approved by the board of trustees, constitutes authorized administrative expenses of a
96.25police, salaried firefighters', or volunteer firefighters' relief association organized under
96.26any law of this state or the Bloomington Fire Department Relief Association:
96.27(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
96.28postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
96.29personnel;
96.30(2) salaries of the officers of the association, or their designees, and salaries of the
96.31members of the board of trustees of the association if the salary amounts are approved by
96.32the governing body of the entity that is responsible for meeting any minimum obligation
96.33under section69.77,
69.772 , or
69.773 , or sections 31 to 42, and the itemized expenses
97.1of relief association officers and board members that are incurred as a result of fulfilling
97.2their responsibilities as administrators of the special fund;
97.3(3) tuition, registration fees, organizational dues, and other authorized expenses
97.4of the officers or members of the board of trustees incurred in attending educational
97.5conferences, seminars, or classes relating to the administration of the relief association;
97.6(4) audit, actuarial, medical, legal, and investment and performance evaluation
97.7expenses;
97.8(5) filing and application fees payable by the relief association to federal or other
97.9governmental entities;
97.10(6) reimbursement to the officers and members of the board of trustees, or their
97.11designees, for reasonable and necessary expenses actually paid and incurred in the
97.12performance of their duties as officers or members of the board; and
97.13(7) premiums on fiduciary liability insurance and official bonds for the officers,
97.14members of the board of trustees, and employees of the relief association.
97.15(b) Any other expenses of the relief association must be paid from the general fund
97.16of the association, if one exists. If a relief association has only one fund, that fund is the
97.17special fund for purposes of this section. If a relief association has a special fund and
97.18a general fund, and any expense of the relief association that is directly related to the
97.19purposes for which both funds were established, the payment of that expense must be
97.20apportioned between the two funds on the basis of the benefits derived by each fund.
97.21 Sec. 45. Minnesota Statutes 2012, section 275.70, subdivision 5, is amended to read:
97.22 Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
97.23levied by a local governmental unit for the following purposes or in the following manner:
97.24 (1) to pay the costs of the principal and interest on bonded indebtedness or to
97.25reimburse for the amount of liquor store revenues used to pay the principal and interest
97.26due on municipal liquor store bonds in the year preceding the year for which the levy
97.27limit is calculated;
97.28 (2) to pay the costs of principal and interest on certificates of indebtedness issued for
97.29any corporate purpose except for the following:
97.30 (i) tax anticipation or aid anticipation certificates of indebtedness;
97.31 (ii) certificates of indebtedness issued under sections298.28 and
298.282 ;
97.32 (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
97.33extraordinary expenditures that result from a public emergency; or
98.1 (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
98.2insufficiency in other revenue sources, provided that nothing in this subdivision limits the
98.3special levy authorized under section475.755 ;
98.4 (3) to provide for the bonded indebtedness portion of payments made to another
98.5political subdivision of the state of Minnesota;
98.6 (4) to fund payments made to the Minnesota State Armory Building Commission
98.7under section193.145, subdivision 2 , to retire the principal and interest on armory
98.8construction bonds;
98.9 (5) property taxes approved by voters which are levied against the referendum
98.10market value as provided under section275.61 ;
98.11 (6) to fund matching requirements needed to qualify for federal or state grants or
98.12programs to the extent that either (i) the matching requirement exceeds the matching
98.13requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
98.14exist prior to 2002;
98.15 (7) to pay the expenses reasonably and necessarily incurred in preparing for or
98.16repairing the effects of natural disaster including the occurrence or threat of widespread
98.17or severe damage, injury, or loss of life or property resulting from natural causes, in
98.18accordance with standards formulated by the Emergency Services Division of the state
98.19Department of Public Safety, as allowed by the commissioner of revenue under section
98.20275.74, subdivision 2
;
98.21 (8) pay amounts required to correct an error in the levy certified to the county
98.22auditor by a city or county in a levy year, but only to the extent that when added to the
98.23preceding year's levy it is not in excess of an applicable statutory, special law or charter
98.24limitation, or the limitation imposed on the governmental subdivision by sections275.70
98.25to
275.74 in the preceding levy year;
98.26 (9) to pay an abatement under section469.1815 ;
98.27 (10) to pay any costs attributable to increases in the employer contribution rates under
98.28chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
98.29 (11) to pay the operating or maintenance costs of a county jail as authorized in section
98.30641.01
or
641.262 , or of a correctional facility as defined in section
241.021, subdivision 1 ,
98.31paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
98.32that the amount has been included in the county budget as a direct result of a rule, minimum
98.33requirement, minimum standard, or directive of the Department of Corrections, or to pay
98.34the operating or maintenance costs of a regional jail as authorized in section641.262 . For
98.35purposes of this clause, a district court order is not a rule, minimum requirement, minimum
98.36standard, or directive of the Department of Corrections. If the county utilizes this special
99.1levy, except to pay operating or maintenance costs of a new regional jail facility under
99.2sections641.262 to
641.264 which will not replace an existing jail facility, any amount
99.3levied by the county in the previous levy year for the purposes specified under this clause
99.4and included in the county's previous year's levy limitation computed under section
99.5275.71
, shall be deducted from the levy limit base under section
275.71, subdivision 2 ,
99.6when determining the county's current year levy limitation. The county shall provide the
99.7necessary information to the commissioner of revenue for making this determination;
99.8 (12) to pay for operation of a lake improvement district, as authorized under section
99.9103B.555
. If the county utilizes this special levy, any amount levied by the county in the
99.10previous levy year for the purposes specified under this clause and included in the county's
99.11previous year's levy limitation computed under section275.71 shall be deducted from
99.12the levy limit base under section275.71, subdivision 2 , when determining the county's
99.13current year levy limitation. The county shall provide the necessary information to the
99.14commissioner of revenue for making this determination;
99.15 (13) to repay a state or federal loan used to fund the direct or indirect required
99.16spending by the local government due to a state or federal transportation project or other
99.17state or federal capital project. This authority may only be used if the project is not a
99.18local government initiative;
99.19 (14) to pay for court administration costs as required under section273.1398,
99.20subdivision 4b , less the (i) county's share of transferred fines and fees collected by the
99.21district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
99.22paid to the county in 2004 under section273.1398, subdivision 4c ; however, for taxes
99.23levied to pay for these costs in the year in which the court financing is transferred to the
99.24state, the amount under this clause is limited to the amount of aid the county is certified to
99.25receive under section273.1398, subdivision 4a ;
99.26 (15) to fund apolice or firefighters relief association as required under section
99.2769.77 sections 31 to 42 to the extent that the required amount exceeds the amount levied
99.28for this purpose in 2001;
99.29 (16) for purposes of a storm sewer improvement district under section444.20 ;
99.30 (17) to pay for the maintenance and support of a city or county society for the
99.31prevention of cruelty to animals under section343.11 , but not to exceed in any year
99.32$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
99.33recent federal census, whichever is greater. If the city or county uses this special levy, any
99.34amount levied by the city or county in the previous levy year for the purposes specified
99.35in this clause and included in the city's or county's previous year's levy limit computed
100.1under section275.71 , must be deducted from the levy limit base under section
275.71,
100.2subdivision 2 , in determining the city's or county's current year levy limit;
100.3 (18) for counties, to pay for the increase in their share of health and human service
100.4costs caused by reductions in federal health and human services grants effective after
100.5September 30, 2007;
100.6 (19) for a city, for the costs reasonably and necessarily incurred for securing,
100.7maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
100.8the commissioner of revenue under section275.74, subdivision 2 . A city must have either
100.9(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
100.10the city or in a zip code area of the city that is at least 50 percent higher than the average
100.11foreclosure rate in the metropolitan area, as defined in section473.121 , subdivision 2,
100.12to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
100.13number of foreclosures, as indicated by sheriff sales records, divided by the number of
100.14households in the city in 2007;
100.15 (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
100.16lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
100.17to the Federal Highway Administration;
100.18 (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
100.19personnel. If a local governmental unit did not use this special levy in the previous year its
100.20levy limit base under section275.71 shall be reduced by the amount equal to the amount it
100.21levied for the purposes specified in this clause in the previous year;
100.22 (22) an amount equal to any reductions in the certified aids or credit reimbursements
100.23payable under sections477A.011 to
477A.014 , and section
273.1384 , due to unallotment
100.24under section16A.152 or reductions under another provision of law. The amount of the
100.25levy allowed under this clause for each year is limited to the amount unallotted or reduced
100.26from the aids and credit reimbursements certified for payment in the year following the
100.27calendar year in which the tax levy is certified unless the unallotment or reduction amount
100.28is not known by September 1 of the levy certification year, and the local government has
100.29not adjusted its levy under section275.065, subdivision 6 , or
275.07, subdivision 6 , in
100.30which case that unallotment or reduction amount may be levied in the following year;
100.31(23) to pay for the difference between one-half of the costs of confining sex offenders
100.32undergoing the civil commitment process and any state payments for this purpose pursuant
100.33to section253B.185, subdivision 5 ;
100.34(24) for a county to pay the costs of the first year of maintaining and operating a new
100.35facility or new expansion, either of which contains courts, corrections, dispatch, criminal
100.36investigation labs, or other public safety facilities and for which all or a portion of the
101.1funding for the site acquisition, building design, site preparation, construction, and related
101.2equipment was issued or authorized prior to the imposition of levy limits in 2008. The
101.3levy limit base shall then be increased by an amount equal to the new facility's first full
101.4year's operating costs as described in this clause; and
101.5(25) for the estimated amount of reduction to market value credit reimbursements
101.6under section273.1384 for credits payable in the year in which the levy is payable.
101.7 Sec. 46. Minnesota Statutes 2012, section 297I.10, subdivision 1, is amended to read:
101.8 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct
101.9a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
101.10premiums, less return premiums, on all direct business received by any licensed foreign or
101.11domestic fire insurance company on property in a city of the first class, or by its agents for
101.12it, in cash or otherwise.
101.13(b) By July 31 and December 31 of each year, the commissioner of management
101.14and budget shall pay tothe relief association in each city of the first class a warrant for
101.15an amount equal to the total amount of the surcharge on the premiums collected within
101.16the that city since the previous payment.
101.17(c) The treasurer of therelief association city shall place the money received under
101.18this subdivision inthe a special account or fund of the relief association to defray all or a
101.19a portion of the employer contribution requirement of public employees police and fire
101.20plan coverage for city firefighters.
101.21 Sec. 47. Minnesota Statutes 2012, section 345.381, is amended to read:
101.22345.381 PROPERTY HELD BY MINNESOTA PUBLIC PENSION FUND.
101.23No amounts of money held or owing by a public pension fund enumerated in section
101.24356.20, subdivision 2
, or
356.30, subdivision 3 , or governed by sections 69.77 or
69.771 to
101.2569.776
shall or sections 31 to 42 may be presumed to have been abandoned for purposes of
101.26sections345.41 ,
345.42 ,
345.43 ,
345.47 and
345.48 if the plan governing the public pension
101.27fund includes a provision governing the disposition of unclaimed amounts of money.
101.28 Sec. 48. Minnesota Statutes 2012, section 353.01, subdivision 2a, is amended to read:
101.29 Subd. 2a. Included employees; mandatory membership. (a) Public employees
101.30whose salary exceeds $425 in any month and who are not specifically excluded under
101.31subdivision 2b or who have not been provided an option to participate under subdivision
101.322d, whether individually or by action of the governmental subdivision, must participate as
101.33members of the association with retirement coverage by the general employees retirement
102.1plan under this chapter, the public employees police and fire retirement plan under this
102.2chapter, or the local government correctional employees retirement plan under chapter
102.3353E, whichever applies. Membership commences as a condition of their employment on
102.4the first day of their employment or on the first day that the eligibility criteria are met,
102.5whichever is later. Public employees include but are not limited to:
102.6(1) persons whose salary meets the threshold in this paragraph from employment in
102.7one or more positions within one governmental subdivision;
102.8(2) elected county sheriffs;
102.9(3) persons who are appointed, employed, or contracted to perform governmental
102.10functions that by law or local ordinance are required of a public officer, including, but
102.11not limited to:
102.12(i) town and city clerk or treasurer;
102.13(ii) county auditor, treasurer, or recorder;
102.14(iii) city manager as defined in section353.028 who does not exercise the option
102.15provided under subdivision 2d; or
102.16(iv) emergency management director, as provided under section12.25 ;
102.17(4) physicians under section353D.01, subdivision 2 , who do not elect public
102.18employees defined contribution plan coverage under section353D.02, subdivision 2 ;
102.19(5) full-time employees of the Dakota County Agricultural Society;
102.20(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis
102.21Police Relief Association who are not excluded employees under subdivision 2b due
102.22to coverage by the relief association pension plan and who elected general employee
102.23retirement plan coverage before August 20, 2009;
102.24(7) (6) employees of the Red Wing Port Authority who were first employed by the
102.25Red Wing Port Authority before May 1, 2011, and who are not excluded employees
102.26under subdivision 2b; and
102.27(8) (7) employees of the Seaway Port Authority of Duluth who are not excluded
102.28employees under subdivision 2b.
102.29 (b) A public employee or elected official who was a member of the association on
102.30June 30, 2002, based on employment that qualified for membership coverage by the public
102.31employees retirement plan or the public employees police and fire plan under this chapter,
102.32or the local government correctional employees retirement plan under chapter 353E as of
102.33June 30, 2002, retains that membership for the duration of the person's employment in that
102.34position or incumbency in elected office. Except as provided in subdivision 28, the person
102.35shall participate as a member until the employee or elected official terminates public
102.36employment under subdivision 11a or terminates membership under subdivision 11b.
103.1(c) If the salary of an included public employee is less than $425 in any subsequent
103.2month, the member retains membership eligibility.
103.3(d) For the purpose of participation in the MERF division of the general employees
103.4retirement plan, public employees include employees who were members of the former
103.5Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
103.6members of the MERF division of the association.
103.7 Sec. 49. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
103.8 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
103.9to participate as members of the association with retirement coverage by the general
103.10employees retirement plan, the local government correctional employees retirement plan
103.11under chapter 353E, or the public employees police and fire retirement plan:
103.12 (1) persons whose salary from one governmental subdivision never exceeds $425 in
103.13a month;
103.14(2) public officers who are elected to a governing body, city mayors, or persons who
103.15are appointed to fill a vacancy in an elective office of a governing body, whose term of office
103.16commences on or after July 1, 2002, for the service to be rendered in that elective position;
103.17 (3) election officers or election judges;
103.18 (4) patient and inmate personnel who perform services for a governmental
103.19subdivision;
103.20 (5) except as otherwise specified in subdivision 12a, employees who are hired for
103.21a temporary position as defined under subdivision 12a, and employees who resign from
103.22a nontemporary position and accept a temporary position within 30 days in the same
103.23governmental subdivision;
103.24 (6) employees who are employed by reason of work emergency caused by fire,
103.25flood, storm, or similar disaster;
103.26 (7) employees who by virtue of their employment in one governmental subdivision
103.27are required by law to be a member of and to contribute to any of the plans or funds
103.28administered by the Minnesota State Retirement System, the Teachers Retirement
103.29Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers
103.30Retirement Fund Association, or any police or firefighters relief association governed by
103.31section
69.77 that has not consolidated with the Public Employees Retirement Association,
103.32or any local police or firefighters consolidation account who have not elected the type of
103.33benefit coverage provided by the public employees police and fire fund under sections
103.34353A.01 to
353A.10, or any persons covered by section
353.665, subdivision 4, 5, or 6,
103.35who have not elected public employees police and fire plan benefit coverage. This clause
104.1must not be construed to prevent a person from being a member of and contributing to
104.2the Public Employees Retirement Association and also belonging to and contributing to
104.3another public pension plan or fund for other service occurring during the same period
104.4of time. A person who meets the definition of "public employee" in subdivision 2 by
104.5virtue of other service occurring during the same period of time becomes a member of the
104.6association unless contributions are made to another public retirement fund on the salary
104.7based on the other service or to the Teachers Retirement Association by a teacher as
104.8defined in section354.05, subdivision 2 ;
104.9 (8) persons who are members of a religious order and are excluded from coverage
104.10under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
104.11performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
104.12as amended through January 1, 1987, if no irrevocable election of coverage has been made
104.13under section 3121(r) of the Internal Revenue Code of 1954, as amended;
104.14 (9) employees of a governmental subdivision who have not reached the age of
104.1523 and are enrolled on a full-time basis to attend or are attending classes on a full-time
104.16basis at an accredited school, college, or university in an undergraduate, graduate, or
104.17professional-technical program, or a public or charter high school;
104.18 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
104.19interns who are serving in a degree or residency program in public hospitals or clinics;
104.20 (11) students who are serving in an internship or residency program sponsored
104.21by an accredited educational institution;
104.22 (12) persons who hold a part-time adult supplementary technical college license who
104.23render part-time teaching service in a technical college;
104.24 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
104.25foreign citizens who are employed by a governmental subdivision under a work permit, or
104.26an H-1b visa initially issued or extended for a combined period less than three years of
104.27employment. Upon extension of the employment beyond the three-year period, the foreign
104.28citizens must be reported for membership beginning the first of the month thereafter
104.29provided the monthly earnings threshold as provided under subdivision 2a is met;
104.30 (14) public hospital employees who elected not to participate as members of the
104.31association before 1972 and who did not elect to participate from July 1, 1988, to October
104.321, 1988;
104.33 (15) except as provided in section353.86 , volunteer ambulance service personnel, as
104.34defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
104.35may still qualify as public employees under subdivision 2 and may be members of the
104.36Public Employees Retirement Association and participants in the general employees
105.1retirement plan or the public employees police and fire plan, whichever applies, on the
105.2basis of compensation received from public employment service other than service as
105.3volunteer ambulance service personnel;
105.4 (16) except as provided in section353.87 , volunteer firefighters, as defined in
105.5subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
105.6but a person who is a volunteer firefighter may still qualify as a public employee under
105.7subdivision 2 and may be a member of the Public Employees Retirement Association and
105.8a participant in the general employees retirement plan or the public employees police
105.9and fire plan, whichever applies, on the basis of compensation received from public
105.10employment activities other than those as a volunteer firefighter;
105.11 (17) pipefitters and associated trades personnel employed by Independent School
105.12District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
105.13pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
105.14if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
105.15241, article 2, section 12;
105.16 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
105.17are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
105.18who have retirement coverage under a collective bargaining agreement by the Electrical
105.19Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
105.20or the pension plan applicable to Carpenters Local 87 who were either first employed after
105.21May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
105.22Laws 2000, chapter 461, article 7, section 5;
105.23 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
105.24painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
105.25or Independent School District No. 625, St. Paul, with coverage under a collective
105.26bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
105.27the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
105.28pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
105.29Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
105.30first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
105.31Session chapter 10, article 10, section 6;
105.32 (20) plumbers who are employed by the Metropolitan Airports Commission, with
105.33coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
105.34who either were first employed after May 1, 2001, or if first employed before May 2,
105.352001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
105.3610, section 6;
106.1 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
106.2subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
106.3days or less in each year of employment with the governmental subdivision;
106.4 (22) persons who are provided supported employment or work-study positions
106.5by a governmental subdivision and who participate in an employment or industries
106.6program maintained for the benefit of these persons where the governmental subdivision
106.7limits the position's duration to three years or less, including persons participating in a
106.8federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
106.9unemployment relief program where the training or work experience is not provided as a
106.10part of, or for, future permanent public employment;
106.11 (23) independent contractors and the employees of independent contractors;
106.12 (24) reemployed annuitants of the association during the course of that
106.13reemployment; and
106.14(25) persons appointed to serve on a board or commission of a governmental
106.15subdivision or an instrumentality thereof.
106.16(b) Any person performing the duties of a public officer in a position defined in
106.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
106.18employee of an independent contractor.
106.19 Sec. 50. Minnesota Statutes 2012, section 353.01, subdivision 6, is amended to read:
106.20 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
106.21county, city, town, school district within this state, or a department, unit or instrumentality
106.22of state or local government, or any public body established under state or local
106.23authority that has a governmental purpose, is under public control, is responsible for the
106.24employment and payment of the salaries of employees of the entity, and receives a major
106.25portion of its revenues from taxation, fees, assessments or from other public sources.
106.26 (b) Governmental subdivision also means the Public Employees Retirement
106.27Association, the League of Minnesota Cities, the Association of Metropolitan
106.28Municipalities, charter schools formed under section124D.10 , service cooperatives
106.29exercising retirement plan participation under section123A.21, subdivision 5 , joint powers
106.30boards organized under section471.59, subdivision 11 , paragraph (a), family service
106.31collaboratives and children's mental health collaboratives organized under section471.59 ,
106.32subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
106.33are governmental units that otherwise qualify for retirement plan membership, public
106.34hospitals owned or operated by, or an integral part of, a governmental subdivision or
106.35governmental subdivisions, the Association of Minnesota Counties, the Minnesota
107.1Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
107.2Airports Commission, the University of Minnesota with respect to police officers covered
107.3by the public employees police and fire retirement plan, the Minneapolis Employees
107.4Retirement Fund for employment initially commenced after June 30, 1979, the Range
107.5Association of Municipalities and Schools, soil and water conservation districts, economic
107.6development authorities created or operating under sections469.090 to
469.108 , the Port
107.7Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red Wing
107.8Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake Johanna
107.9Volunteer Fire Department, incorporated, the Red Wing Environmental Learning Center,
107.10the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc., and the
107.11Minneapolis Firefighters Relief Association and Minneapolis Police Relief Association
107.12with respect to staff covered by the Public Employees Retirement Association general plan.
107.13 (c) Governmental subdivision does not mean any municipal housing and
107.14redevelopment authority organized under the provisions of sections469.001 to
469.047 ;
107.15or any port authority organized under sections469.048 to
469.089 other than the Port
107.16Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than
107.17the Red Wing Port Authority; or any hospital district organized or reorganized prior to
107.18July 1, 1975, under sections447.31 to
447.37 or the successor of the district; or the board
107.19of a family service collaborative or children's mental health collaborative organized
107.20under sections124D.23 ,
245.491 to
245.495 , or
471.59 , if that board is not controlled
107.21by representatives of governmental units.
107.22 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
107.23Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
107.24governmental subdivision unless the entity has obtained a written advisory opinion from
107.25the United States Department of Labor or a ruling from the Internal Revenue Service
107.26declaring the entity to be an instrumentality of the state so as to provide that any future
107.27contributions by the entity on behalf of its employees are contributions to a governmental
107.28plan within the meaning of Internal Revenue Code, section 414(d).
107.29 (e) A public body created by state or local authority may request membership on
107.30behalf of its employees by providing sufficient evidence that it meets the requirements in
107.31paragraph (a).
107.32 (f) An entity determined to be a governmental subdivision is subject to the reporting
107.33requirements of this chapter upon receipt of a written notice of eligibility from the
107.34association.
107.35 Sec. 51. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
108.1 Subd. 10. Salary. (a) Subject to the limitations of section356.611 , "salary" means:
108.2 (1) the periodic compensation of a public employee, before deductions for deferred
108.3compensation, supplemental retirement plans, or other voluntary salary reduction
108.4programs, and also means "wages" and includes net income from fees; and
108.5 (2) for a public employee who is covered by a supplemental retirement plan under
108.6section356.24, subdivision 1 , clause (8), (9), or (10), which require all plan contributions
108.7be made by the employer, the contribution to the applicable supplemental retirement plan
108.8when an agreement between the parties establishes that the contribution will either result
108.9in a mandatory reduction of employees' wages through payroll withholdings, or be made
108.10in lieu of an amount that would otherwise be paid as wages; and.
108.11(3) for a public employee who has prior service covered by a local police or
108.12firefighters relief association that has consolidated with the Public Employees Retirement
108.13Association or to which section
353.665 applies and who has elected coverage either
108.14under the public employees police and fire fund benefit plan under section
353A.08
108.15following the consolidation or under section
353.665, subdivision 4, the rate of salary
108.16upon which member contributions to the special fund of the relief association were made
108.17prior to the effective date of the consolidation as specified by law and by bylaw provisions
108.18governing the relief association on the date of the initiation of the consolidation procedure
108.19and the actual periodic compensation of the public employee after the effective date of
108.20consolidation.
108.21 (b) Salary does not mean:
108.22 (1) the fees paid to district court reporters, unused annual vacation or sick leave
108.23payments, in lump-sum or periodic payments, severance payments, reimbursement of
108.24expenses, lump-sum settlements not attached to a specific earnings period, or workers'
108.25compensation payments;
108.26 (2) employer-paid amounts used by an employee toward the cost of insurance
108.27coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
108.28care expense accounts, day care expenses, or any payments in lieu of any employer-paid
108.29group insurance coverage, including the difference between single and family rates that
108.30may be paid to a member with single coverage and certain amounts determined by the
108.31executive director to be ineligible;
108.32 (3) the amount equal to that which the employing governmental subdivision would
108.33otherwise pay toward single or family insurance coverage for a covered employee when,
108.34through a contract or agreement with some but not all employees, the employer:
108.35 (i) discontinues, or for new hires does not provide, payment toward the cost of the
108.36employee's selected insurance coverages under a group plan offered by the employer;
109.1 (ii) makes the employee solely responsible for all contributions toward the cost of
109.2the employee's selected insurance coverages under a group plan offered by the employer,
109.3including any amount the employer makes toward other employees' selected insurance
109.4coverages under a group plan offered by the employer; and
109.5 (iii) provides increased salary rates for employees who do not have any
109.6employer-paid group insurance coverages;
109.7 (4) except as provided in section353.86 or
353.87 , compensation of any kind paid to
109.8volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
109.935 or 36;
109.10 (5) the amount of compensation that exceeds the limitation provided in section
109.11356.611
; and
109.12 (6) amounts paid by a federal or state grant for which the grant specifically
109.13prohibits grant proceeds from being used to make pension plan contributions, unless the
109.14contributions to the plan are made from sources other than the federal or state grant.
109.15 (c) Amounts provided to an employee by the employer through a grievance
109.16proceeding or a legal settlement are salary only if the settlement is reviewed by the
109.17executive director and the amounts are determined by the executive director to be
109.18consistent with paragraph (a) and prior determinations.
109.19 Sec. 52. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
109.20 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
109.21means:
109.22 (1) service during years of actual membership in the course of which employee
109.23deductions were withheld from salary and contributions were made at the applicable rates
109.24under section353.27 ,
353.65 , or
353E.03 ;
109.25(2) periods of service covered by payments in lieu of salary deductions under
109.26sections353.27, subdivision 12 , and
353.35 ;
109.27 (3) service in years during which the public employee was not a member but for
109.28which the member later elected, while a member, to obtain credit by making payments to
109.29the fund as permitted by any law then in effect;
109.30 (4) a period of authorized leave of absence with pay from which deductions for
109.31employee contributions are made, deposited, and credited to the fund;
109.32 (5) a period of authorized personal, parental, or medical leave of absence without
109.33pay, including a leave of absence covered under the federal Family Medical Leave Act,
109.34that does not exceed one year, and for which a member obtained service credit for each
109.35month in the leave period by payment under section353.0161 to the fund made in place of
110.1salary deductions. An employee must return to public service and render a minimum of
110.2three months of allowable service in order to be eligible to make payment under section
110.3353.0161
for a subsequent authorized leave of absence without pay. Upon payment, the
110.4employee must be granted allowable service credit for the purchased period;
110.5 (6) a periodic, repetitive leave that is offered to all employees of a governmental
110.6subdivision. The leave program may not exceed 208 hours per annual normal work cycle
110.7as certified to the association by the employer. A participating member obtains service
110.8credit by making employee contributions in an amount or amounts based on the member's
110.9average salary, excluding overtime pay, that would have been paid if the leave had not been
110.10taken. The employer shall pay the employer and additional employer contributions on
110.11behalf of the participating member. The employee and the employer are responsible to pay
110.12interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
110.13from the end of the normal cycle until full payment is made. An employer shall also make
110.14the employer and additional employer contributions, plus 8.5 percent interest, compounded
110.15annually, on behalf of an employee who makes employee contributions but terminates
110.16public service. The employee contributions must be made within one year after the end of
110.17the annual normal working cycle or within 30 days after termination of public service,
110.18whichever is sooner. The executive director shall prescribe the manner and forms to be
110.19used by a governmental subdivision in administering a periodic, repetitive leave. Upon
110.20payment, the member must be granted allowable service credit for the purchased period;
110.21 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
110.22months allowable service per authorized temporary or seasonal layoff in one calendar year.
110.23An employee who has received the maximum service credit allowed for an authorized
110.24temporary or seasonal layoff must return to public service and must obtain a minimum of
110.25three months of allowable service subsequent to the layoff in order to receive allowable
110.26service for a subsequent authorized temporary or seasonal layoff;
110.27 (8) a period during which a member is absent from employment by a governmental
110.28subdivision by reason of service in the uniformed services, as defined in United States
110.29Code, title 38, section 4303(13), if the member returns to public service with the same
110.30governmental subdivision upon discharge from service in the uniformed service within the
110.31time frames required under United States Code, title 38, section 4312(e), provided that
110.32the member did not separate from uniformed service with a dishonorable or bad conduct
110.33discharge or under other than honorable conditions. The service must be credited if the
110.34member pays into the fund equivalent employee contributions based upon the contribution
110.35rate or rates in effect at the time that the uniformed service was performed multiplied by
110.36the full and fractional years being purchased and applied to the annual salary rate. The
111.1annual salary rate is the average annual salary, excluding overtime pay, during the purchase
111.2period that the member would have received if the member had continued to be employed
111.3in covered employment rather than to provide uniformed service, or, if the determination
111.4of that rate is not reasonably certain, the annual salary rate is the member's average salary
111.5rate, excluding overtime pay, during the 12-month period of covered employment rendered
111.6immediately preceding the period of the uniformed service. Payment of the member
111.7equivalent contributions must be made during a period that begins with the date on which
111.8the individual returns to public employment and that is three times the length of the
111.9military leave period, or within five years of the date of discharge from the military service,
111.10whichever is less. If the determined payment period is less than one year, the contributions
111.11required under this clause to receive service credit may be made within one year of the
111.12discharge date. Payment may not be accepted following 30 days after termination of
111.13public service under subdivision 11a. If the member equivalent contributions provided for
111.14in this clause are not paid in full, the member's allowable service credit must be prorated
111.15by multiplying the full and fractional number of years of uniformed service eligible for
111.16purchase by the ratio obtained by dividing the total member contributions received by the
111.17total member contributions otherwise required under this clause. The equivalent employer
111.18contribution, and, if applicable, the equivalent additional employer contribution must be
111.19paid by the governmental subdivision employing the member if the member makes the
111.20equivalent employee contributions. The employer payments must be made from funds
111.21available to the employing unit, using the employer and additional employer contribution
111.22rate or rates in effect at the time that the uniformed service was performed, applied to the
111.23same annual salary rate or rates used to compute the equivalent member contribution. The
111.24governmental subdivision involved may appropriate money for those payments. The
111.25amount of service credit obtainable under this section may not exceed five years unless a
111.26longer purchase period is required under United States Code, title 38, section 4312. The
111.27employing unit shall pay interest on all equivalent member and employer contribution
111.28amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
111.29compounded annually from the end of each fiscal year of the leave or the break in service
111.30to the end of the month in which the payment is received. Upon payment, the employee
111.31must be granted allowable service credit for the purchased period; or
111.32(9) a period specified under section353.0162 .
111.33 (b) For calculating benefits under sections353.30 ,
353.31 ,
353.32 , and
353.33 for
111.34state officers and employees displaced by the Community Corrections Act, chapter 401,
111.35and transferred into county service under section401.04 , "allowable service" means the
112.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
112.2section352.01, subdivision 11 .
112.3(c) For a public employee who has prior service covered by a local police or
112.4firefighters relief association that has consolidated with the Public Employees Retirement
112.5Association under chapter 353A or to which section
353.665 applies, and who has
112.6elected the type of benefit coverage provided by the public employees police and fire
112.7fund either under section
353A.08 following the consolidation or under section
353.665,
112.8subdivision 4
, "allowable service" is a period of service credited by the local police or
112.9firefighters relief association as of the effective date of the consolidation based on law
112.10and on bylaw provisions governing the relief association on the date of the initiation
112.11of the consolidation procedure.
112.12(d) (c) No member may receive more than 12 months of allowable service credit in a
112.13year either for vesting purposes or for benefit calculation purposes. For an active member
112.14who was an active member of the former Minneapolis Firefighters Relief Association
112.15on December 29, 2011, "allowable service" is the period of service credited by the
112.16Minneapolis Firefighters Relief Association as reflected in the transferred records of the
112.17association up to December 30, 2011, and the period of service credited under paragraph
112.18(a), clause (1), after December 30, 2011. For an active member who was an active member
112.19of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
112.20service" is the period of service credited by the Minneapolis Police Relief Association as
112.21reflected in the transferred records of the association up to December 30, 2011, and the
112.22period of service credited under paragraph (a), clause (1), after December 30, 2011.
112.23(e) (d) MS 2002 [Expired]
112.24 Sec. 53. Minnesota Statutes 2012, section 353.64, subdivision 1a, is amended to read:
112.25 Subd. 1a. Police and fire plan; other members. (a) A person whoprior to July
112.261, 1961, was a member of the police and fire plan, by virtue of being a police officer or
112.27firefighter, shall, as long as the person remains in either position, continue membership in
112.28the plan.
112.29(b) A person who was employed by a governmental subdivision as a police officer
112.30and was a member of the police and fire plan on July 1, 1978, by virtue of being a police
112.31officer as defined by this section on that date, and if employed by the same governmental
112.32subdivision in a position in the same department in which the person was employed on
112.33that date, continues to be a member of the plan, whether or not that person has the power
112.34of arrest by warrant and is licensed by the Peace Officers Standards and Training Board
112.35after that date.
113.1(c) (b) A person who was employed as a correctional officer by Rice county before
113.2July 1, 1998, for the duration of employment in the correctional position held on July 1,
113.31998, continues to be a member of the public employees police and fire plan, whether or
113.4not the person has the power of arrest by warrant and is licensed by the Peace Officers
113.5Standards and Training Board after that date.
113.6(d) A person who was employed by a governmental subdivision as a police officer
113.7or a firefighter, whichever applies, was an active member of the local police or salaried
113.8firefighters relief association located in that governmental subdivision by virtue of that
113.9employment as of the effective date of the consolidation as authorized by sections
113.10353A.01 to
353A.10, and has elected coverage by the public employees police and fire
113.11plan, shall become a member of the police and fire plan after that date if employed by
113.12the same governmental subdivision in a position in the same department in which the
113.13person was employed on that date.
113.14(e) Any police officer or firefighter of a relief association that has consolidated
113.15with the association for which the employee has not elected coverage by the public
113.16employees police and fire plan as provided in sections
353A.01 to
353A.10, or any police
113.17officer or firefighter to whom section
353.665 applies who has not elected coverage by
113.18the public employees police and fire plan as provided in section
353.665, subdivision 4,
113.19must become a member of the public employees police and fire plan, but is not subject
113.20to the provisions of sections
353.651 to
353.659 unless an election for such coverage is
113.21made under section
353.665, subdivision 4.
113.22 Sec. 54. Minnesota Statutes 2012, section 353.659, is amended to read:
113.23353.659 LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT
113.24BENEFITS.
113.25(a) For any person whohas had prior service covered by a local police or firefighters
113.26relief association which hasconsolidated merged with the public employees police and
113.27fire retirementassociation plan and who has elected the type of benefit coverage provided
113.28by the public employees police and fire fund benefit planunder section
353A.08 following
113.29the consolidation as permitted by the applicable law, any the retirement benefits payable
113.30are governed by the applicable provisions of this chapter.
113.31(b) For any person whohas had prior service covered by a local police or firefighters
113.32relief association which hasconsolidated merged with the public employees police and fire
113.33retirementassociation plan and who has did not elected elect the type of benefit coverage
113.34provided by the public employees police and fire fund benefit planunder section
353A.08
following the consolidation as permitted by the applicable law, any the retirement benefits
114.1payable are governed by the provisions of Minnesota Statutes 2012, sections353B.01 to
114.2353B.13
which apply applied to the applicable former relief association or by section
114.3353.6511 or 353.6512, if applicable.
114.4 Sec. 55. Minnesota Statutes 2012, section 353.665, subdivision 1, is amended to read:
114.5 Subdivision 1.Merger authorized Application. (a) Notwithstanding any
114.6provision of law to the contrary, unless the applicable municipality elects otherwise under
114.7paragraph (b), every This section applies to the local police and fire relief associations or
114.8consolidationaccount under chapter 353A in existence on March 1, 1999, becomes a part
114.9of accounts that merged with the public employees police and fire plan and fund governed
114.10by sections
353.63 to
353.659 on July 1, 1999 and are specified in paragraph (b).
114.11(b)If a municipality desires to retain its consolidation account The former local
114.12police or fire relief associations or consolidation accounts, whichever applies, the
114.13governing body of the municipality must adopt a resolution to that effect and must file a
114.14copy of the resolution with the secretary of state, the state auditor, the legislative auditor,
114.15the management and budget commissioner, the revenue commissioner, the executive
114.16director of the public employees retirement association, and the executive director of
114.17the Legislative Commission on Pensions and Retirement. The retention election must
114.18apply to both consolidation accounts if the municipality is associated with more than
114.19one consolidation account. The retention resolution must be adopted and filed with all
114.20recipients before June 15, 1999. are:
114.21(1) the former local police and fire consolidation accounts that merged with the public
114.22employees police and fire retirement plan and fund under Laws 1999, chapter 222, article 4;
114.23(2) the former Minneapolis Firefighters Relief Association;
114.24(3) the former Minneapolis Police Relief Association;
114.25(4) the former Fairmont Police Relief Association; and
114.26(5) the former Virginia Fire Consolidation Account.
114.27 Sec. 56. Minnesota Statutes 2012, section 353.665, subdivision 5, is amended to read:
114.28 Subd. 5. Benefit coverage forretirees and benefit recipients certain former local
114.29relief association or consolidation account members. (a)A person who received a
114.30 Except as provided in paragraph (b), (e), or (f), the annuity, service pension,a disability
114.31pension or benefit, ora survivor benefit from a merging attributable to or of a former
114.32member of a former merged local police or fire consolidation accountfor the month of June
114.331999, and who has did not previously elected participation in the Minnesota postretirement
114.34investment fund for any future postretirement adjustments rather than the postretirement
115.1adjustment mechanism or mechanisms of the relief association benefit plan under
115.2section
353A.08, subdivision 1, may elect participation in the Minnesota postretirement
115.3investment fund for any future postretirement adjustments or retention of the
115.4postretirement adjustment mechanism or mechanisms of the relief association benefit plan
115.5as reflected in the applicable provisions of chapter 353B. This election must be in writing
115.6on a form prescribed by the executive director and must be made before September 1,
115.71999. elect coverage by all or a portion of the public employees police and fire retirement
115.8plan as permitted by applicable law must be calculated or computed under the benefit plan
115.9provisions of the applicable former local police or paid firefighters relief association.
115.10(b)If an eligible person is a minor, the election must be made by the person's
115.11parent or legal guardian. If the eligible person makes no affirmative election under this
115.12subdivision, the person retains the postretirement adjustment mechanism or mechanisms
115.13of the relief association benefit plan as reflected in the applicable provisions of chapter
115.14353B. The annuity, service pension, disability pension or benefit, or survivor benefit
115.15attributable to or of a former member of the former Minneapolis Firefighters Relief
115.16Association or of the former Minneapolis Police Relief Association who had that status as
115.17of December 29, 2011, continue after consolidation in the same amount and under the
115.18same terms as provided in chapter 423B or 423C, respectively, and the bylaws in effect as
115.19of that date, except that the unit value is governed by section 353.01, subdivisions 10a and
115.2010b, respectively, and the postretirement adjustments after December 31, 2015, must be
115.21calculated solely under section 353.6511, subdivision 7.
115.22(c) On behalf of former members of the Minneapolis Firefighters Relief Association
115.23or Minneapolis Police Relief Association, the executive director shall withhold any health
115.24insurance or dental insurance premiums designated by the annuitant or benefit recipient
115.25and shall transfer them to the city of Minneapolis. The Public Employees Retirement
115.26Association may charge a necessary and reasonable monthly administrative fee to the city
115.27of Minneapolis for this function and bill it in addition to the employer contribution under
115.28section 353.65, subdivision 3, paragraph (b). Notwithstanding any provision of chapter
115.2913 to the contrary, the executive director shall provide the city of Minneapolis with the
115.30current addresses of former members of the Minneapolis Firefighters Relief Association
115.31and the Minneapolis Police Relief Association. The city of Minneapolis shall continue to
115.32administer the health and dental insurance programs as constituted May 1, 2011, for the
115.33former members of the former Minneapolis relief associations.
115.34(d) The executive director shall cooperate with the Minneapolis firefighters
115.35fraternal association and the Minneapolis police fraternal association to ensure adequate
115.36communications with the former members of the former Minneapolis Firefighters
116.1Relief Association or the Minneapolis Police Relief Association consistent with Public
116.2Employees Retirement Association policy.
116.3(c) The survivor benefit payable on behalf of any service pension or disability
116.4benefit recipient who elects participation in the Minnesota postretirement investment fund
116.5must be calculated under the relief association benefit plan in effect on the effective date
116.6of consolidation under chapter 353A as reflected in the applicable provisions of chapter
116.7353B. (e) The annuity, service pension, disability pension or benefit, or survivor benefit
116.8attributable to or of a former member of the former Fairmont Police Relief Association
116.9must be calculated or computed under Minnesota Statutes 2000, sections 423.41 to
116.10423.46, 423.48 to 423.59, 423.61, and 423.62; Laws 1963, chapter 423; Laws 1977,
116.11chapter 100; and Laws 1999, chapter 222, article 3, section 4, except that the annual
116.12base salary figure for pension and benefit determinations upon consolidation and for
116.13the balance of calendar year 2012 is $106,666.67 and after December 31, 2012, annual
116.14postretirement adjustments of pensions and benefits in force must be calculated solely
116.15under section 356.415, subdivision 1c.
116.16(f) The annuity, service pension, disability pension or benefit, or survivor benefit
116.17attributable to or of a former member of the former Virginia firefighters consolidation
116.18account must be calculated or computed under the election made under Minnesota
116.19Statutes 2012, section 353A.08, unless the person made a subsequent election under
116.20Minnesota Statutes 2012, section 353.6691, subdivision 4, subject to any additional ad hoc
116.21postretirement adjustment under Minnesota Statutes 2012, section 353.6691, subdivision
116.225, paragraph (d).
116.23 Sec. 57. Minnesota Statutes 2012, section 353.665, is amended by adding a subdivision
116.24to read:
116.25 Subd. 5a. Continuing provisions; prior Minneapolis relief associations.
116.26(a) Health insurance account retention. The health insurance account of the former
116.27Minneapolis Firefighters Relief Association and the health insurance account of the
116.28former Minneapolis Police Relief Association shall remain with the financial institution
116.29holding the applicable account on the effective date of this section, if the applicable
116.30financial institution adequately performs all trustee and fiduciary duties with respect to the
116.31applicable account as a condition of the retention of the account.
116.32(b) Health insurance account administrative expenses. Under Laws 2011, First
116.33Special Session chapter 8, article 6, section 14, and article 7, section 14, three years of
116.34expected administrative expenses were prepaid from the Minneapolis Firefighters Relief
116.35Association and the Minneapolis Police Relief Association health insurance accounts to
117.1the financial institution holding the applicable account. After the three-year prepayment
117.2period, the beneficiaries of the applicable account are responsible for the payment of
117.3administrative expenses related to the operation of the account.
117.4(c) Successor in interest. The public employees police and fire retirement plan
117.5and fund is the successor in interest to all claims for or against the former Minneapolis
117.6Firefighters Relief Association and the former Minneapolis Police Relief Association. The
117.7public employees police and fire retirement plan and fund is not liable for any claim against
117.8a former Minneapolis relief association, its governing board, or its administrative staff
117.9acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon
117.10a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were
117.11not undertaken in good faith. The public employees police and fire retirement plan may
117.12assert any applicable defense to any claim in any judicial or administrative proceeding that
117.13the applicable Minneapolis relief association, its board, or its administrative staff would
117.14otherwise have been entitled to assert, and the public employees police and fire retirement
117.15plan may assert any applicable defense that it has in its capacity as a statewide agency.
117.16(d) Indemnification. The Public Employees Retirement Association shall indemnify
117.17any former fiduciary of the Minneapolis relief associations consistent with the provisions
117.18of section 356A.11. The indemnification may be effected by the purchase by the Public
117.19Employees Retirement Association of reasonable fiduciary liability tail insurance for the
117.20officers and directors of the former Minneapolis relief association.
117.21 Sec. 58. Minnesota Statutes 2012, section 353.665, subdivision 8, is amended to read:
117.22 Subd. 8. Member and employer contributions. (a)Effective on the first day of the
117.23first full pay period following June 30, 1999, Except as provided in paragraph (b), (c),
117.24or (d), the employee contribution rate formerging merged former consolidation account
117.25active members is the rate specified in section353.65, subdivision 2 , and the regular
117.26municipal contribution rate on behalf of merged former consolidation account active
117.27members is the rate specified in section353.65, subdivision 3 .
117.28(b)The municipality associated with a merging former local consolidation account
117.29that had a positive value amortizable base calculation under subdivision 7, paragraph (d),
117.30after the preliminary calculation or the second calculation, whichever applies, must make
117.31an additional municipal contribution to the public employees police and fire plan for
117.32the period from January 1, 2000, to December 31, 2009. The amount of the additional
117.33municipal contribution is the amount calculated by the actuary retained under section
117.34356.214 and certified by the executive director of the Public Employees Retirement
117.35Association by which the amortizable base amount would be amortized on a level dollar
118.1annual end-of-the-year contribution basis, using an 8.5 percent interest rate assumption.
118.2The additional municipal contribution is payable during the month of January, is without
118.3any interest, or if made after January 31, but before the next following December 31,
118.4is payable with interest for the period since January 1 at a rate which is equal to the
118.5preretirement interest rate assumption specified in section
356.215, subdivision 8,
118.6applicable to the public employees police and fire fund expressed as a monthly rate and
118.7compounded on a monthly basis or if made after December 31 of the year in which the
118.8additional municipal contribution is due is payable with interest at a rate which is four
118.9percent greater than the highest interest rate assumption specified in section
356.215,
118.10subdivision 8
, expressed as a monthly rate and compounded monthly from January 1 of the
118.11year in which the additional municipal contribution is due until the date on which payment
118.12is made. With respect to active members of the merged former Minneapolis Firefighters
118.13Relief Association and the merged former Minneapolis Police Relief Association, there are
118.14no employee contributions payable and the employer contribution on behalf of those active
118.15members is at the rate specified in section 353.65, subdivision 3, applied to the active
118.16member's salary. In addition, an additional municipal contribution is payable by the city of
118.17Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as
118.18sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded
118.19present value figure calculated as required by Minnesota Statutes 2012, section 353.667,
118.20subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision
118.216, paragraph (a). If the postretirement or preretirement interest rate actuarial assumption
118.22applicable to the public employees police and fire retirement plan under section 356.215,
118.23subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
118.24356.215, subdivision 8, the remainder present value of future benefits amount calculation
118.25under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes
118.262012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must
118.27be revised and the amortization contribution by the city of Minneapolis for the balance
118.28of the amortization period must be redetermined by the actuary retained under section
118.29356.214 and certified by the executive director to the city of Minneapolis.
118.30(c) If there are assets of the former Fairmont Police Relief Association in excess of
118.31the present value of future benefits as of June 29, 2012, these assets must be credited to an
118.32interest-bearing suspense account within the public employees police and fire retirement
118.33fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015,
118.34and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must
118.35be credited with the same rate of investment return as the public employees police and fire
118.36retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate
119.1actuarial assumption applicable to the public employees police and fire retirement plan
119.2under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
119.3Statutes 2010, section 356.215, subdivision 8, the remainder present value of future
119.4benefits amount calculation under paragraph (a), updated for the passage of time, must be
119.5revised and the amortization contribution by the city of Fairmont for the balance of the
119.6amortization period must be redetermined by the actuary retained under section 356.214
119.7and certified by the executive director to the city of Fairmont.
119.8(d) If there was a remainder present value of future benefits amounts under
119.9Minnesota Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of
119.10Virginia shall pay an additional municipal contribution annually on or before December
119.1131 sufficient to amortize on a level annual dollar basis by December 31, 2020, that
119.12remainder present value of future benefits amounts of the former Virginia fire department
119.13consolidation account. If, after June 29, 2012, the postretirement or preretirement interest
119.14rate actuarial assumption applicable to the public employees police and fire retirement plan
119.15under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
119.16Statutes 2010, section 356.215, subdivision 8, the remainder present value of future
119.17benefits amount calculation under paragraph (a), updated for the passage of time, must be
119.18revised and any amortization contribution by the city of Virginia for the balance of the
119.19amortization period must be redetermined by the actuary retained under section 356.214
119.20and certified by the executive director to the city of Virginia.
119.21 Sec. 59. Minnesota Statutes 2012, section 353.71, subdivision 1, is amended to read:
119.22 Subdivision 1. Eligibility. Any person who has been a member of a defined
119.23benefit retirement plan administered by the Public Employees Retirement Association,
119.24or a retirement plan administered by the Minnesota State Retirement System, or the
119.25Teachers Retirement Association, or any other public retirement system in the state of
119.26Minnesota having a like provision, except a retirement plan providing benefits for police
119.27officers or firefighters governed by sections69.77 or
69.771 to
69.776 , or by sections 31
119.28to 42, is entitled, when qualified, to an annuity from each retirement plan if the total
119.29allowable service in all retirement plans or in any two of these retirement plans totals the
119.30number of years of allowable service required to receive a normal retirement annuity for
119.31that retirement plan, provided that no portion of the allowable service upon which the
119.32retirement annuity from one retirement plan is based is again used in the computation for
119.33benefits from another retirement plan and provided further that the person has not taken a
119.34refund from any one of these retirement plans since the person's membership in that
119.35association or system last terminated. The annuity from each fund must be determined by
120.1the appropriate provisions of the law except that the requirement that a person must have
120.2at least a specific minimum period of allowable service in the respective association or
120.3system does not apply for the purposes of this section if the combined service in two or
120.4more of these retirement plans equals the number of years of allowable service required to
120.5receive a normal retirement annuity for that retirement plan.
120.6 Sec. 60. Minnesota Statutes 2012, section 356.20, subdivision 2, is amended to read:
120.7 Subd. 2. Covered public pension plans and funds. This section applies to the
120.8following public pension plans:
120.9 (1) the general state employees retirement plan of the Minnesota State Retirement
120.10System;
120.11 (2) the general employees retirement plan of the Public Employees Retirement
120.12Association;
120.13 (3) the Teachers Retirement Association;
120.14 (4) the State Patrol retirement plan;
120.15 (5) the St. Paul Teachers Retirement Fund Association;
120.16 (6) the Duluth Teachers Retirement Fund Association;
120.17 (7) the University of Minnesota faculty retirement plan;
120.18 (8) the University of Minnesota faculty supplemental retirement plan;
120.19 (9) the judges retirement fund;
120.20 (10)a police or firefighter's relief association specified or described in section
69.77,
120.21subdivision 1a
120.22 (11) a volunteer firefighter relief association governed by section69.771, subdivision
120.231 ;
120.24 (12) the public employees police and fire plan of the Public Employees Retirement
120.25Association;
120.26 (13) the correctional state employees retirement plan of the Minnesota State
120.27Retirement System;
120.28 (14) the local government correctional service retirement plan of the Public
120.29Employees Retirement Association; and
120.30(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.
120.31 Sec. 61. Minnesota Statutes 2012, section 356.215, subdivision 18, is amended to read:
120.32 Subd. 18. Establishment of actuarial assumptions. (a) Before July 2, 2010, the
120.33actuarial assumptions used for the preparation of actuarial valuations under this section
120.34that are other than preretirement interest, postretirement interest, salary increase, and
121.1payroll increase may be changed only with the approval of the Legislative Commission on
121.2Pensions and Retirement or after a period of one year has elapsed since the date on which
121.3the proposed assumption change or changes were received by the Legislative Commission
121.4on Pensions and Retirement without commission action.
121.5 (b) After July 1, 2010, the actuarial assumptions used for the preparation of actuarial
121.6valuations under this section that are other than postretirement interest and preretirement
121.7interest may be changed only with the approval of the Legislative Commission on
121.8Pensions and Retirement or after a period of one year has elapsed since the date on which
121.9the proposed assumption change or changes were received by the Legislative Commission
121.10on Pensions and Retirement without commission action.
121.11 (c) A change in the applicable actuarial assumptions may be proposed by the
121.12governing board of the applicable pension fund or relief association, by the actuary
121.13retained by the joint retirement systems under section356.214 or by the actuary retained
121.14by a local police or firefighters relief association governed by sections69.77 or
69.771 to
121.1569.776
or by sections 31 to 42, if one is retained.
121.16 Sec. 62. Minnesota Statutes 2012, section 356.216, is amended to read:
121.17356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL
121.18POLICE AND FIRE FUNDS MONTHLY VOLUNTEER FIREFIGHTER RELIEF
121.19ASSOCIATIONS.
121.20The provisions of section356.215 that govern the contents of actuarial valuations
121.21must apply to the Bloomington Fire Department Relief Association and to any local police
121.22or fire pension fund or monthly volunteer firefighter relief association required to make
121.23an actuarial report under this section, except as follows:
121.24(1) in calculating normal cost and other requirements, if required to be expressed as
121.25a level percentage of covered payroll, the salaries used in computing covered payroll must
121.26be the maximum rate of salary on which retirement and survivorship credits and amounts
121.27of benefits are determined and from which any member contributions are calculated and
121.28deducted;
121.29(2) (1) in lieu of the amortization date specified in section
356.215, subdivision
121.3011 , the appropriate amortization target date specified in clause (2) or section
69.77,
121.31subdivision 4
, or
69.773, subdivision 4 , clause paragraph (c), must be used in calculating
121.32any required amortization contribution, except that if the actuarial report;
121.33(2) for the Bloomington Fire Department Relief Associationindicates an, any
121.34 unfunded actuarial accrued liability, the unfunded obligation is to must be amortized on
121.35a level dollar basis by December 31 of the year occurring 20 yearslater after the year
122.1in which the unfunded actuarial accrued liability initially occurred, and, if subsequent
122.2actuarial valuations for the Bloomington Fire Department Relief Associationdetermine
122.3 indicate a net actuarial experience loss incurred during the year which ended as of the day
122.4before the most recent actuarial valuation date, any unfunded actuarial accrued liability
122.5due to that loss is to be amortized on a level dollar basis by December 31 of the year
122.6occurring 20 yearslater after the year in which the net actuarial experience loss occurred;
122.7(3) in addition to the tabulation of active members and annuitants provided for in
122.8section356.215, subdivision 13 , the member contributions for active members for the
122.9calendar year and the prospective annual retirement annuities service pensions under the
122.10benefit plan for active members must be reported;
122.11(4) actuarial valuations required under section 39 must be made annually and
122.12actuarial valuations required under section69.773, subdivision 2 , must be made at least
122.13 every four yearsand actuarial valuations required under section
69.77 shall be made
122.14annually or as frequently as required by generally accepted accounting principles in the
122.15government sector, whichever frequency requirement is shorter;
122.16(5) the actuarial balance sheet showing accrued assets valued at market valueif the
122.17actuarial valuation is required to be prepared at least every four years or valued as current
122.18assets under section
356.215, subdivision 1, paragraph (b) or (f), whichever applies, if the
122.19actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the
122.20unfunded actuarial accrued liability must include the following required reserves:
122.21(i) for active members:
122.221. (A) retirement benefits or service pensions;
122.232. (B) disability benefits; and
122.243. refund liability due to death or withdrawal;
122.254. (C) survivors' benefits;
122.26(ii) for deferred annuitants' benefits;
122.27(iii) for former members without vested rights;
122.28(iv) for annuitants;:
122.291. (A) retirement annuities or service pensions;
122.302. (B) disability annuities; and
122.313. surviving spouses' annuities;
122.324. surviving children's annuities; (C) survivor benefits.
122.33In addition to those required reserves, separate items must be shown for additional
122.34benefits, if any, which may not be appropriately included in the reserves listed above; and
122.35(6) actuarial valuations are due to be filed with the state auditor by the first day of
122.36the seventh month after the end of the fiscal year which the actuarial valuation covers.
123.1 Sec. 63. Minnesota Statutes 2012, section 356.219, subdivision 1, is amended to read:
123.2 Subdivision 1. Report required. (a) The State Board of Investment, on behalf
123.3of the public pension funds and programs for which it is the investment authority, and
123.4any Minnesota public pension plan that is not fully invested through the State Board of
123.5Investment, including the Bloomington Fire Department Relief Association and a local
123.6police or volunteer firefighters relief association governed by sections
69.77 or
69.771 to
123.769.775
, shall report the information specified in subdivision 3 to the state auditor. The
123.8state auditor may prescribe a form or forms for the purposes of the reporting requirements
123.9contained in this section.
123.10(b) The Bloomington Fire Department Relief Association and a localpolice or
123.11 volunteer firefighters relief association governed bysection
69.77 or sections
69.771 to
123.1269.775
is fully invested during a given calendar year for purposes of this section if all
123.13assets of the applicable pension plan beyond sufficient cash equivalent investments to
123.14cover six months expected expenses are invested under section11A.17 . The board of any
123.15fully invested public pension plan remains responsible for submitting investment policy
123.16statements and subsequent revisions as required by subdivision 3, paragraph (a).
123.17(c) For purposes of this section, the State Board of Investment is considered to be
123.18the investment authority for any Minnesota public pension fund required to be invested by
123.19the State Board of Investment under section11A.23 , or for any Minnesota public pension
123.20fund authorized to invest in the supplemental investment fund under section11A.17 and
123.21which is fully invested by the State Board of Investment.
123.22(d) This section does not apply to the following plans:
123.23(1) the Minnesota unclassified employees retirement program under chapter 352D;
123.24(2) the public employees defined contribution plan under chapter 353D;
123.25(3) the individual retirement account plans under chapters 354B and 354D;
123.26(4) the higher education supplemental retirement plan under chapter 354C;
123.27(5) any alternative retirement benefit plan established under section383B.914 ; and
123.28(6) the University of Minnesota faculty retirement plan.
123.29 Sec. 64. Minnesota Statutes 2012, section 356.219, subdivision 2, is amended to read:
123.30 Subd. 2. Asset class definition. (a) For purposes of this section, "asset class"
123.31means any of the following asset groupings as authorized in applicable law, bylaws, or
123.32articles of incorporation:
123.33(1) cash and any cash equivalent investments with maturities of one year or less
123.34when issued;
124.1(2) debt securities with maturities greater than one year when issued, including
124.2but not limited to mortgage participation certificates and pools, asset backed securities,
124.3guaranteed investment contracts, and authorized government and corporate obligations of
124.4corporations organized under laws of the United States or any state, or the Dominion of
124.5Canada or its provinces;
124.6(3) stocks or convertible issues of any corporation organized under laws of the
124.7United States or any state, or the Dominion of Canada or its provinces, or any corporation
124.8listed on the New York Stock Exchange or the American Stock Exchange;
124.9(4) international stocks or convertible issues;
124.10(5) international debt securities; and
124.11(6) real estate and venture capital.
124.12(b) If the pension plan is investingunder section
69.77, subdivision 9, section
69.775,
124.13or any other applicable law, in open-end investment companies registered under the
124.14federal Investment Company Act of 1940, or in the Minnesota supplemental investment
124.15fund under section11A.17 , this investment must be included under an asset class indicated
124.16in paragraph (a), clauses (1) through (6), as appropriate. If the investment vehicle includes
124.17underlying securities from more than one asset class as indicated by paragraph (a), clauses
124.18(1) through (6), the investment may be treated as a separate asset class.
124.19 Sec. 65. Minnesota Statutes 2012, section 356.219, subdivision 8, is amended to read:
124.20 Subd. 8. Timing of reports. (a) Forsalaried firefighter relief associations, police
124.21 the Bloomington Fire Department Reliefassociations, Association and the volunteer
124.22firefighter relief associations, the information required under this section must be
124.23submitted by the due date for reports required under section69.051, subdivision 1 or 1a,
124.24as applicable. If a relief association satisfies the definition of a fully invested plan under
124.25subdivision 1, paragraph (b), for the calendar year covered by the report required under
124.26section69.051, subdivision 1 or 1a, as applicable, the chief administrative officer of
124.27the covered pension plan shall certify that compliance on a form prescribed by the state
124.28auditor. The state auditor shall transmit annually to the State Board of Investment a list or
124.29lists of covered pension plans which submitted certifications in order to facilitate reporting
124.30by the State Board of Investment under paragraph (c).
124.31(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers
124.32Retirement Fund Association, and the University of Minnesota faculty supplemental
124.33retirement plan, the information required under this section must be submitted to the state
124.34auditor by June 1 of each year.
125.1(c) The State Board of Investment, on behalf of pension funds specified in
125.2subdivision 1, paragraph (c), must report information required under this section by
125.3September 1 of each year.
125.4 Sec. 66. Minnesota Statutes 2012, section 356.406, subdivision 1, is amended to read:
125.5 Subdivision 1. Definitions. (a) Each of the words or terms defined in this
125.6subdivision has the meaning indicated.
125.7(b) "Public pension plan" means any retirement plan or fund enumerated in section
125.8356.20, subdivision 2
, or
356.30, subdivision 3 , the Bloomington Fire Department Relief
125.9Association, any relief association governed bysection
69.77 or sections
69.771 to
125.1069.775
, any retirement plan governed by chapter 354B or 354C, the Hennepin County
125.11supplemental retirement plan governed by sections383B.46 to
383B.52 , or any housing
125.12and redevelopment authority retirement plan.
125.13(c) "Public pension plan member" means a person who is a participant covered by
125.14a public pension plan; a former participant of a public pension plan who has sufficient
125.15service to be entitled to receive a future retirement annuity or service pension; a recipient
125.16of a retirement annuity, service pension, or disability benefit from a public pension plan; or
125.17a former participant of a public pension plan who has member or employee contributions
125.18to the person's credit in the public pension plan.
125.19(d) "Survivor" means the surviving spouse, a former spouse, a surviving child, a
125.20joint annuitant, a designated recipient of a second or remainder portion of an optional
125.21annuity form, a beneficiary, or the estate of a deceased public pension plan member, as
125.22those terms are commonly understood or defined in the benefit plan document of the
125.23public pension plan.
125.24(e) "Survivor benefit" means a surviving spouse benefit, surviving child benefit,
125.25second or remainder portion of an optional annuity form, a death benefit, a funeral benefit,
125.26or a refund of member or employee contributions payable on account of the death of a
125.27public pension plan member as provided for in the benefit plan document of the public
125.28pension plan.
125.29 Sec. 67. Minnesota Statutes 2012, section 356A.01, subdivision 19, is amended to read:
125.30 Subd. 19. Pension fund. "Pension fund" means the assets amassed and held in a
125.31pension plan, other than the general fund, as reserves for present and future payment
125.32of benefits and administrative expenses. For the Bloomington Fire Department Relief
125.33Association or a retirement plan governed by section69.77 or by chapter 424A, the term
125.34means the relief association special fund.
126.1 Sec. 68. Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:
126.2 Subd. 4. Economic interest statement. (a) Each member of the governing board
126.3of a covered pension plan and the chief administrative officer of the plan shall file with
126.4the plan a statement of economic interest.
126.5(b) For a covered pension plan other than a plan specified in paragraph (c), the
126.6statement must contain the information required by section10A.09, subdivision 5 , and
126.7any other information that the fiduciary or the governing board of the plan determines is
126.8necessary to disclose a reasonably foreseeable potential or actual conflict of interest.
126.9(c) For a covered pension plan governed by sections69.771 to
69.776 or a covered
126.10pension plan governed by section
69.77 with the Bloomington Fire Department Relief
126.11Association if its special fund assets are under $8,000,000, the statement must contain
126.12the following:
126.13(1) the person's principal occupation and principal place of business;
126.14(2) whether or not the person has an ownership of or interest of ten percent or greater
126.15in an investment security brokerage business, a real estate sales business, an insurance
126.16agency, a bank, a savings and loan, or another financial institution; and
126.17(3) any relationship or financial arrangement that can reasonably be expected to
126.18give rise to a conflict of interest.
126.19(d) The statement must be filed annually with the chief administrative officer of
126.20the plan and be available for public inspection during regular office hours at the office
126.21of the pension plan.
126.22(e) A disclosure form meeting the requirements of the federal Investment Advisers
126.23Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and
126.24filed with the State Board of Investment or the pension plan meets the requirements of
126.25this subdivision.
126.26(f) The chief administrative officer of each covered pension plan, by January 15,
126.27annually, shall transmit a certified listing of all individuals who have filed statements of
126.28economic interest with the plan under this subdivision during the preceding 12 months
126.29and the address of the office referenced in paragraph (d) to the Campaign Finance and
126.30Public Disclosure Board.
126.31 Sec. 69. Minnesota Statutes 2012, section 356A.07, subdivision 2, is amended to read:
126.32 Subd. 2. Annual financial report. A covered pension plan shall provide each
126.33active plan participant and benefit recipient with a copy of the most recent annual financial
126.34report required by section356.20 and a copy of the most recent actuarial evaluation,
127.1if any, required by section69.77,
69.773 ,
356.215 , or
356.216 , or by section 39, or a
127.2summary of those reports.
127.3 Sec. 70. Minnesota Statutes 2012, section 423A.02, subdivision 1, is amended to read:
127.4 Subdivision 1. Amortization state aid. (a)A municipality in which is located a local
127.5police or salaried firefighters relief association to which the provisions of section
69.77,
127.6apply, that had an unfunded actuarial accrued liability in the most recent relief association
127.7actuarial valuation, is entitled, upon application as required by the commissioner of
127.8revenue, to receive local police and salaried firefighters' relief association amortization
127.9state aid if the municipality and the appropriate relief association both comply with the
127.10applicable provisions of sections
69.031, subdivision 5,
69.051, subdivisions 1 and 3, and
127.1169.77. The cities of Fairmont and Minneapolis are entitled, subject to subdivisions 2, 4,
127.12and 5, to receive amortization state aid under this section.
127.13(b) The total amount of amortization state aid to all entitled municipalities must not
127.14exceed$5,055,000 the appropriation under subdivision 3a.
127.15(c)Subject to the adjustment for the city of Minneapolis provided in this paragraph,
127.16the amount of amortization state aid to which a municipality is entitled annually is an
127.17amount equal to the level annual dollar amount required to amortize, by December 31,
127.182010, the unfunded actuarial accrued liability of the special fund of the appropriate
127.19relief association as reported in the December 31, 1978, actuarial valuation of the relief
127.20association prepared under sections
356.215 and
356.216, reduced by the dollar amount
127.21required to pay the interest on the unfunded actuarial accrued liability of the special fund of
127.22the relief association for calendar year 1981 set at the rate specified in Minnesota Statutes
127.231978, section
356.215, subdivision 8. For the city of Minneapolis, the amortization state
127.24aid amount thus determined must be reduced by $747,232 on account of the former
127.25Minneapolis Police Relief Association and by $772,768 on account of the former
127.26Minneapolis Fire Department Relief Association. The amortization state aid amounts are:
127.30If the amortization state aid amounts determined under this paragraph exceed the
127.31amount appropriated for this purpose under subdivision 3a, the amortization state aid for
127.32actual allocation must be reduced pro rata.
127.33(d) Each municipality is eligible for an amortization state aid payment in a fiscal
127.34year if:
128.1(1) for Fairmont, the executive director of the Public Employees Retirement
128.2Association certifies on or before June 30 that a municipal contribution with respect to the
128.3former Fairmont Police Relief Association is payable in the upcoming fiscal year under
128.4section 353.665, subdivision 8, paragraph (c); and
128.5(2) for Minneapolis, the executive director of the Public Employees Retirement
128.6Association certifies on or before June 30 that an additional employer contribution with
128.7respect to either the former Minneapolis Firefighters Relief Association or the former
128.8Minneapolis Police Relief Association is payable in the upcoming fiscal year under section
128.9353.665, subdivision 8, paragraph (b).
128.10Payment of amortization state aid to municipalities must be madedirectly to
128.11the municipalities involved in three equal installments on July 15, September 15, and
128.12November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
128.13shall transmit the aid amount to thetreasurer custodian of the local relief association trust
128.14fund or to the executive director of the public employees police and fire retirement fund,
128.15whichever applies, for immediate depositin the special fund of the relief association.
128.16(e) The commissioner of revenue shall administer the amortization state aid program.
128.17The commissioner shall prescribe and periodically revise, as necessary, theform for and
128.18 required content of theapplication certifications for the amortization state aid.
128.19(f) The amount required under this section, as provided in subdivision 3a, is
128.20appropriated annually from the general fund to the commissioner of revenue.
128.21 Sec. 71. Minnesota Statutes 2012, section 423A.02, subdivision 1b, is amended to read:
128.22 Subd. 1b. Additional amortization state aid.(a) Annually, on October 1, the
128.23commissioner of revenue shall allocate the additional amortization state aid transferred
128.24under section
69.021, subdivision 11, to:
128.25(1) all police or salaried firefighters relief associations governed by and in full
128.26compliance with the requirements of section
69.77, that had an unfunded actuarial accrued
128.27liability in the actuarial valuation prepared under sections
356.215 and
356.216 as of the
128.28preceding December 31;
128.29(2) all local police or salaried firefighter consolidation accounts governed by chapter
128.30353A that are certified by the executive director of the public employees retirement
128.31association as having for the current fiscal year an additional municipal contribution
128.32amount under section
353A.09, subdivision 5, paragraph (b), and that have implemented
128.33section
353A.083, subdivision 1, if the effective date of the consolidation preceded May
128.3424, 1993, and that have implemented section
353A.083, subdivision 2, if the effective date
128.35of the consolidation preceded June 1, 1995; and
129.1(3) the municipalities that are required to make an additional municipal contribution
129.2under section
353.665, subdivision 8;
353.667, subdivision 6; or
353.668, subdivision
129.36
, for the duration of the required additional contribution.
129.4(b) The commissioner shall allocate the state aid on the basis of the proportional share
129.5of the relief association or consolidation account of the total unfunded actuarial accrued
129.6liability of all recipient relief associations and consolidation accounts as of December 31,
129.71993, for relief associations, and as of June 30, 1994, for consolidation accounts.
129.8(c) (a) Beginning October 1, 2000 2013, and annually thereafter, the commissioner
129.9shall allocate the additional amortization state aid, including any state aid in excess of the
129.10limitation in subdivision 4, on the following basis:
129.11(1) 64.5 percent to the municipalities to which section
353.665, subdivision
129.128
, paragraph (b), or
353A.09, subdivision 5, paragraph (b), apply for distribution in
129.13accordance with paragraph (b) and subject to the limitation in subdivision 4;
129.14(2) 34.2 (1) 47.1 percent to the city of Minneapolis to fund any unfunded actuarial
129.15accrued liability in the actuarial valuation prepared under sections
356.215 and
356.216
as of the preceding December 31 for the Minneapolis Police Relief Association or the
129.17Minneapolis Fire Department Relief Association; and defray the employer costs associated
129.18with police and firefighter retirement coverage;
129.19(2) 25.8 percent as additional funding to support the minimum fire state aid for
129.20volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);
129.21(3) 12.9 percent to the city of Duluth to defray employer costs associated with
129.22police and firefighter retirement coverage;
129.23(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the
129.24investment performance requirement of paragraph (c) is met; and
129.25(3) (5) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued
129.26liability in the actuarial valuation prepared under sections
356.215 and
356.216 as of the
129.27preceding December 31 for the Virginia Fire Department Relief Association defray the
129.28employer contribution under section 353.665, subdivision 8, paragraph (d).
129.29 If there is nounfunded actuarial accrued liability in both additional employer
129.30contribution under section 353.665, subdivision 8, paragraph (b), certified under
129.31subdivision 1, paragraph (d), clause (2), with respect to the former Minneapolis Police
129.32Relief Association and the former Minneapolis Fire Department Relief Associationas
129.33disclosed in the most recent actuarial valuations for the relief associations prepared under
129.34sections
356.215 and
356.21634.2 47.1 percent
129.35of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
129.36to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.1funding to support minimum fire state aid for volunteer firefighters relief associations. If
130.2there is nounfunded actuarial accrued liability in employer contribution by the city of
130.3VirginiaFire Department Relief Association as disclosed in the most recent actuarial
130.4valuation for the relief association prepared under sections
356.215 and
356.216
130.5section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department
130.6Relief Association certified on or before June 30 by the executive director of the Public
130.7Employees Retirement Association, the commissioner shall allocate that 1.3 percent
130.8of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
130.9to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.10funding to support minimum fire state aid for volunteer firefighters relief associations.
130.11Upon the final payment to municipalities required by section
353.665, subdivision 8,
130.12paragraph (b), or
353A.09, subdivision 5, paragraph (b), the commissioner shall allocate
130.13that 64.5 percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement
130.14Fund Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial
130.15accrued liability in the actuarial valuation proposed under sections
356.215 and
356.216
as of the preceding December 31 for the Minneapolis Police Relief Association or the
130.17Minneapolis Firefighters Relief Association, 20 percent for the city of Duluth to pay for
130.18any costs associated with the police and firefighters pensions, and 40 percent as additional
130.19funding to support minimum fire state aid for volunteer firefighters relief associations.
130.20 (b) The allocation must be made by the commissionerat the same time and under the
130.21same procedures as specified in subdivision 3 of revenue on October 1 annually.
130.22 (c) With respect to the St. Paul Teachers Retirement Fund Association, annually,
130.23beginning on July 1, 2005, if the applicable teacher's association five-year average
130.24time-weighted rate of investment return does not equal or exceed the performance of a
130.25composite portfolio assumed passively managed (indexed) invested ten percent in cash
130.26equivalents, 60 percent in bonds and similar debt securities, and 30 percent in domestic
130.27stock calculated using the formula under section11A.04 , clause (11), the aid allocation
130.28tothat the retirement fund under this section ceases until the five-year annual rate of
130.29investment return equals or exceeds the performance of that composite portfolio.
130.30 (d) The amounts required under this subdivision are the amounts annually
130.31appropriated to the commissioner of revenue under section69.021, subdivision 11 ,
130.32paragraph (e), and the aid amounts in excess of the limitation in subdivision 4.
130.33 Sec. 72. Minnesota Statutes 2012, section 423A.02, subdivision 2, is amended to read:
130.34 Subd. 2. Continued eligibility. A municipality thathas qualified for amortization
130.35state aid under subdivision 1 on December 31, 1984, and has an additional municipal
131.1contribution payable under section
353A.09, subdivision 5, paragraph (b), as of the most
131.2recent December 31, continues upon application to be entitled to receive amortization
131.3state aid under subdivision 1 and supplementary amortization state aid under subdivision
131.41a, after the local police or salaried firefighters' relief association has been consolidated
131.5into the public employees police and fire fund. If a municipality loses entitlement for
131.6amortization state aid and supplementary amortization state aid in any year because of
131.7not having an additional municipal contribution under section
353A.09, subdivision 5,
131.8paragraph (b), the municipality is not entitled to the aid amounts in any subsequent year. A
131.9municipality that received amortization aid in 1999 and is required to make an additional
131.10municipal contribution under section
353.665, subdivision 8, continues to qualify for the
131.11amortization state aid and the supplemental amortization aid until December 31, 2009
131.12 received amortization aid in 2011 and is required to make a municipal contribution under
131.13section 353.665, subdivision 8, paragraph (b), (c), or (d), whichever applies, continues to
131.14qualify for amortization state aid for the duration of the applicable municipal contribution.
131.15 Sec. 73. Minnesota Statutes 2012, section 423A.02, subdivision 3, is amended to read:
131.16 Subd. 3. Reallocation of amortizationor supplementary amortization state aid.
131.17 (a) Seventy percent of the difference between $5,720,000 and the current year amortization
131.18aidand supplemental amortization aid distributed under subdivisions subdivision 1 and 1a
131.19 that is not distributed for any reason to a municipalityfor use by a local police or salaried
131.20fire relief association must be distributed by the commissioner of revenue according to this
131.21paragraph. The commissioner shall distribute 50 percent of the amounts derived under
131.22this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers
131.23Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund
131.24Association to fund the unfunded actuarial accrued liabilities of the respective funds.
131.25These paymentsshall must be made on or before June 30 July 15 each fiscal year. If the
131.26St. Paul Teachers Retirement Fund Association or the Duluth Teachers Retirement Fund
131.27Association becomes fully funded,its the association's eligibility for its portion of this
131.28aid ceases. Amounts remaining in the undistributed balance account at the end of the
131.29biennium if aid eligibility ceases cancel to the general fund.
131.30 (b) In order to receive amortizationand supplementary amortization aid under
131.31paragraph (a),prior to before June 30 annually Independent School District No. 625, St.
131.32Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers
131.33Retirement Fund Association.
131.34 (c) Thirty percent of the difference between $5,720,000 and the current year
131.35amortization aidand supplemental amortization aid under subdivisions 1 and subdivision
132.1 1a that is not distributed for any reason to a municipalityfor use by a local police or
132.2salaried firefighter relief association must be distributed under section
69.021, subdivision
132.37 , paragraph (d), as additional funding to support a minimum fire state aid amount for
132.4volunteer firefighter relief associations.
132.5 Sec. 74. Minnesota Statutes 2012, section 423A.02, subdivision 3a, is amended to read:
132.6 Subd. 3a. Appropriations for amortization state aid; supplementary
132.7amortization state aid; and amortization state aid and supplementary state aid
132.8 reallocations.$4,720,000 $5,720,000 is annually appropriated from the general fund to
132.9the commissioner of revenue for amortization state aid under subdivision 1, and for the
132.10reallocation of amortization aid under subdivision 3.$1,000,000 is annually appropriated
132.11from the general fund to the commissioner of revenue for supplementary amortization
132.12state aid under subdivision 1a, and for the reallocation of supplementary amortization state
132.13aid under subdivision 3.
132.14 Sec. 75. Minnesota Statutes 2012, section 423A.02, subdivision 4, is amended to read:
132.15 Subd. 4. Limit on certain total aid amounts. (a) The total of amortization aid,
132.16supplemental amortization aid, and additional amortization aid under this section payable
132.17to a municipality to which section353.665, subdivision 8 , paragraph (b), (c), or (d),
132.18applies, may not exceed the amount of the additional municipal contribution payable by
132.19an individual municipality under section353.665, subdivision 8 , paragraph (b), (c), or (d).
132.20(b) Any aid amount in excess of the limit under this subdivision for an individual
132.21municipality must be redistributed to the other municipalities to which section353.665,
132.22subdivision 8 , paragraph (b), (c), or (d), applies. The excess aid must be distributed in
132.23proportion to each municipality's additional municipal contribution under section353.665,
132.24subdivision 8 , paragraph (b), (c), or (d).
132.25(c) When the total aid for each municipality under this section equals the limit under
132.26paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.
132.27 Sec. 76. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
132.28 Subd. 5. Termination of state aid programs. The amortization state aid,
132.29supplemental amortization state aid, and additional amortization state aid programs
132.30terminate as of the December 31, next following the date of the actuarial valuation when
132.31the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial
132.32accrued liability of that plan orDecember 31, 2009 when the assets of the Duluth Teachers
133.1Retirement Fund Association equal the actuarial accrued liability of that plan, whichever
133.2is later.
133.3 Sec. 77. Minnesota Statutes 2012, section 424A.001, subdivision 4, is amended to read:
133.4 Subd. 4. Relief association. (a) "Relief association" or "volunteer firefighters' relief
133.5association" means a volunteer firefighters' relief association or a volunteer firefighters'
133.6division or account of a partially salaried and partially volunteer firefighters' relief
133.7association that is:
133.8(1) organized and incorporated as a nonprofit corporation to provide retirement
133.9benefits to volunteer firefighters under chapter 317A and any laws of the state;
133.10(2) governed by this chapter and sections69.771 to
69.775 ; and
133.11(3) directly associated with:
133.12(i) a fire department established by municipal ordinance;
133.13(ii) an independent nonprofit firefighting corporation that is organized under the
133.14provisions of chapter 317A and that operates primarily for firefighting purposes; or
133.15(iii) a fire department operated as or by a joint powers entity that operates primarily
133.16for firefighting purposes.
133.17(b) "Relief association" or "volunteer firefighters' relief association" does not mean:
133.18(1) the Bloomington Fire Department Relief Association governed bysection
69.77
133.19
133.20as amended; or
133.21(2) the voluntary statewide lump-sum volunteer firefighter retirement plan governed
133.22by chapter 353G.
133.23(c) A relief association or volunteer firefighters' relief association is a governmental
133.24entity that receives and manages public money to provide retirement benefits for individuals
133.25providing the governmental services of firefighting and emergency first response.
133.26 Sec. 78. Minnesota Statutes 2012, section 424A.02, subdivision 9, is amended to read:
133.27 Subd. 9. Limitation on ancillary benefits. A defined benefit relief association,
133.28including any volunteer firefighters relief association governed bysection
69.77
133.2931 to 42 or any volunteer firefighters division of a relief association governed by chapter
133.30424, may only pay ancillary benefits which would constitute an authorized disbursement
133.31as specified in section424A.05 subject to the following requirements or limitations:
133.32 (1) with respect to a defined benefit relief association in which governing bylaws
133.33provide solely for a lump-sum service pension to a retiring member, or provide a retiring
133.34member the choice of either a lump-sum service pension or a monthly service pension
134.1and the lump-sum service pension was chosen, no ancillary benefit may be paid to any
134.2former member or paid to any person on behalf of any former member after the former
134.3member (i) terminates active service with the fire department and active membership
134.4in the relief association; and (ii) commences receipt of a service pension as authorized
134.5under this section; and
134.6 (2) with respect to any defined benefit relief association, no ancillary benefit paid or
134.7payable to any member, to any former member, or to any person on behalf of any member
134.8or former member, may exceed in amount the total earned service pension of the member
134.9or former member. The total earned service pension must be calculated by multiplying
134.10the service pension amount specified in the bylaws of the relief association at the time of
134.11death or disability, whichever applies, by the years of service credited to the member or
134.12former member. The years of service must be determined as of (i) the date the member or
134.13former member became entitled to the ancillary benefit; or (ii) the date the member or
134.14former member died entitling a survivor or the estate of the member or former member to
134.15an ancillary benefit. The ancillary benefit must be calculated without regard to whether the
134.16member had attained the minimum amount of service and membership credit specified in
134.17the governing bylaws. For active members, the amount of a permanent disability benefit
134.18or a survivor benefit must be equal to the member's total earned service pension except
134.19that the bylaws of a defined benefit relief association may provide for the payment of a
134.20survivor benefit in an amount not to exceed five times the yearly service pension amount
134.21specified in the bylaws on behalf of any member who dies before having performed five
134.22years of active service in the fire department with which the relief association is affiliated.
134.23(3)(i) If a lump sum survivor or death benefit is payable under the articles of
134.24incorporation or bylaws, the benefit must be paid:
134.25(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
134.26(B) as a survivor benefit to the surviving children of the deceased firefighter if
134.27no surviving spouse;
134.28(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
134.29surviving spouse or surviving children; or
134.30(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
134.31surviving children and no beneficiary designated.
134.32(ii) If there are no surviving children, the surviving spouse may waive, in writing,
134.33wholly or partially, the spouse's entitlement to a survivor benefit.
134.34(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
134.35incorporation or bylaws, the benefit must be paid:
134.36(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
135.1(B) as a survivor benefit to the surviving children of the deceased firefighter if
135.2no surviving spouse;
135.3(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
135.4surviving spouse or surviving children; or
135.5(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
135.6surviving spouse, no surviving children, and no beneficiary designated.
135.7(ii) If there are no surviving children, the surviving spouse may waive, in writing,
135.8wholly or partially, the spouse's entitlement to a survivor benefit.
135.9(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
135.10survivor benefit payable to a designated beneficiary, the relief association bylaws may
135.11limit the total survivor benefit amount payable.
135.12(5) For purposes of this section, for a monthly benefit volunteer fire relief association
135.13or for a combination lump-sum and monthly benefit volunteer fire relief association where
135.14a monthly benefit service pension has been elected by or a monthly benefit is payable with
135.15respect to a firefighter, a designated beneficiary must be a natural person. For purposes
135.16of this section, for a lump-sum volunteer fire relief association or for a combination
135.17lump-sum and monthly benefit volunteer fire relief association where a lump-sum service
135.18pension has been elected by or a lump-sum benefit is payable with respect to a firefighter,
135.19a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to
135.20the surviving children organized under chapter 501B as authorized by this section and
135.21there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding
135.22a requirement of this section to the contrary.
135.23 Sec. 79. Minnesota Statutes 2012, section 475.52, subdivision 6, is amended to read:
135.24 Subd. 6. Certain purposes. Any municipality may issue bonds for paying
135.25judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
135.26for funding actuarial liabilities to pay postemployment benefits to employees or officers
135.27after their termination of service; or for funding all or part of the municipality's current
135.28and future unfunded liability for a pension or retirement fund or plan referred to in
135.29section356.20, subdivision 2 , as those liabilities are most recently computed under
135.30sections356.215 and
356.216 . The board of trustees or directors of a the Bloomington
135.31Fire Department Relief Associationreferred to in section
69.77
135.32be a party to any contract made under this section with respect to the fund held by it
135.33for the benefit of and in trust for its members. For purposes of this section, the term
135.34"postemployment benefits" means benefits giving rise to a liability under Statement No.
135.3545 of the Governmental Accounting Standards Board.
136.1 Sec. 80. REVISOR'S INSTRUCTION.
136.2(a) The revisor of statutes shall not show the text of Minnesota Statutes, section
136.369.77, and shall add the note in Minnesota Statutes, section 69.77, "CITY OF
136.4BLOOMINGTON; LOCAL."
136.5(b) In Minnesota Statutes 2014 and subsequent editions, Minnesota Statutes,
136.6sections 69.771 to 69.776 must be recodified as Minnesota Statutes, sections 424A.091
136.7to 424A.096, and all statutory cross-references revised.
136.8 Sec. 81. REPEALER.
136.9(a) Minnesota Statutes 2012, section 353.665, subdivisions 2, 3, 4, 6, 7, 9, and
136.1010, are repealed.
136.11(b) Minnesota Statutes 2012, sections 353.667; 353.668; 353.669; and 353.6691, are
136.12repealed.
136.13(c) Minnesota Statutes 2012, sections 353A.01; 353A.02; 353A.03; 353A.04;
136.14353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 353A.09; 353A.10;
136.15353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 353B.07; 353B.08; 353B.09;
136.16353B.10; 353B.11; 353B.12; 353B.13; and 353B.14, are repealed.
136.17(d) Minnesota Statutes 2012, sections 423A.01; 423A.04; 423A.05; 423A.07;
136.18423A.10; 423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171;
136.19423A.18; 423A.19; 423A.20; 423A.21; and 423A.22, are repealed.
136.20(e) Minnesota Statutes 2012, sections 69.021, subdivision 6; 353.64, subdivision 3;
136.21and 423A.02, subdivision 1a, are repealed.
136.22(f) Minnesota Statutes 2012, section 69.77, subdivision 3, is repealed.
136.23 Sec. 82. EFFECTIVE DATE; PRIOR AID ALLOCATIONS VALIDATED.
136.24(a) Sections 70 to 76 are effective June 1, 2013.
136.25(b) Except as provided in paragraph (c), sections 1 to 69 and 77 to 81 are effective
136.26July 1, 2013.
136.27(c) With respect to the city of Minneapolis, section 18 is effective retroactively from
136.28July 20, 2011, and with respect to the city of Fairmont, section 18 is effective retroactively
136.29from May 10, 2012.
136.30(d) Allocations of amortization state aid, supplementary amortization state aid, or
136.31additional amortization state aid made by the commissioner of revenue before January 1,
136.322013, are hereby validated.
137.3 Section 1. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
137.4 Subdivision 1. Covered relief associations. The applicable provisions of sections
137.569.771
to
69.776 apply to govern any firefighters' relief association other than defined in
137.6section 424A.001, subdivision 4, and do not apply to a relief association enumerated in
137.7section69.77, subdivision 1a , which is organized under any laws of this state, which is
137.8composed of volunteer firefighters or is composed partially of volunteer firefighters and
137.9partially of salaried firefighters with retirement coverage provided by the public employees
137.10police and fire fund and which, in either case, operates subject to the service pension
137.11minimum requirements for entitlement and maximums contained in section
424A.02, or
137.12subject to a special law modifying those requirements or maximums.
137.13EFFECTIVE DATE.This section is effective the day following final enactment.
137.14 Sec. 2. Minnesota Statutes 2012, section 69.774, subdivision 1, is amended to read:
137.15 Subdivision 1. Authorized inclusion in fire state aid program; covered nonprofit
137.16corporations. (a) This sectionshall apply applies to any independent nonprofit firefighting
137.17corporation incorporated or organizedpursuant to under chapter 317A which: (1) operates
137.18exclusively for firefighting purposes,; (2) which is composed of volunteer firefighters,;
137.19and (3) which has a duly established separate subsidiary incorporated firefighters' relief
137.20association which provides retirement coverage for or pays a service pension to a retired
137.21firefighter or a retirement benefit to a surviving dependent of either an active or a retired
137.22firefighter, and whichoperates is subject to the service pension minimum requirements
137.23for entitlement to and maximums for a service pension contained in section
424A.02,
137.24or a special law modifying those requirements or maximums applicable provisions of
137.25chapter 424A.
137.26(b) Notwithstanding any law to the contrary, a municipality contracting with an
137.27independent nonprofit firefighting corporationshall must be included in the distribution of
137.28fire state aid to the appropriate county auditor by the state auditor only if the independent
137.29nonprofit firefighting corporation complies with the provisions of this section.
137.30EFFECTIVE DATE.This section is effective the day following final enactment.
137.31 Sec. 3. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
138.1 Subd. 2. Election of coverage. (a) The process for electing coverage of volunteer
138.2firefighters by the retirement plan is initiated by a request to the executive director for a
138.3cost analysis of the prospective retirement coverage.
138.4(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
138.5association governed by chapter 424A, the cost analysis of the prospective retirement
138.6coverage must be requested jointly by the secretary of the volunteer firefighters' relief
138.7association, following approval of the request by the board of the volunteer firefighters'
138.8relief association, and the chief administrative officer of the entity associated with the relief
138.9association, following approval of the request by the governing body of the entity associated
138.10with the relief association. If the relief association is associated with more than one entity,
138.11the chief administrative officer of each associated entity must execute the request. If
138.12the volunteer firefighters are not currently covered by a volunteer firefighters' relief
138.13association, the cost analysis of the prospective retirement coverage must be requested by
138.14the chief administrative officer of the entity operating the fire department. The request
138.15must be made in writing and must be made on a form prescribed by the executive director.
138.16(c) The cost analysis of the prospective retirement coverage by the statewide
138.17retirement plan must be based on the service pension amount under section353G.11
138.18closest to the service pension amount provided by the volunteer firefighters' relief
138.19association if the relief association is a lump-sum defined benefit plan, or the amount equal
138.20to 95 percent of the most current average account balance per relief association member if
138.21the relief association is a defined contribution plan, or to the lowest service pension amount
138.22under section353G.11 if there is no volunteer firefighters' relief association, rounded up,
138.23and any other service pension amount designated by the requester or requesters. The cost
138.24analysis must be prepared using a mathematical procedure certified as accurate by an
138.25approved actuary retained by the Public Employees Retirement Association.
138.26(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
138.27that has filed the information required under section69.051 in a timely fashion, upon
138.28request by the executive director, the state auditor shall provide the most recent data
138.29available on the financial condition of the volunteer firefighters' relief association, the most
138.30recent firefighter demographic data available, and a copy of the current relief association
138.31bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
138.32exists, the chief administrative officer of the entity operating the fire department shall
138.33provide the demographic information on the volunteer firefighters serving as members
138.34of the fire department requested by the executive director.
138.35(e) If a cost analysis is requested, the executive director of the State Board of
138.36Investment shall review the investment portfolio of the relief association, if applicable,
139.1for compliance with the applicable provisions of chapter 11A and for appropriateness
139.2for retention under the established investment objectives and investment policies of the
139.3State Board of Investment. If the prospective retirement coverage change is approved
139.4under paragraph (f), the State Board of Investment may require that the relief association
139.5liquidate any investment security or other asset which the executive director of the State
139.6Board of Investment has determined to be an ineligible or inappropriate investment for
139.7retention by the State Board of Investment. The security or asset liquidation must occur
139.8before the effective date of the transfer of retirement plan coverage. If requested to do so by
139.9the chief administrative officer of the relief association, the executive director of the State
139.10Board of Investment shall provide advice about the best means to conduct the liquidation.
139.11(f) Upon receipt of the cost analysis, the governing body of the municipality or
139.12independent nonprofit firefighting corporation associated with the fire department shall
139.13either approve or disapprove the retirement coverage change within90 120 days. If the
139.14retirement coverage change is not acted upon within90 120 days, it is deemed to be
139.15disapproved. If the retirement coverage change is approved by the applicable governing
139.16body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
139.17is effective on the next following January 1.
139.18EFFECTIVE DATE.This section is effective July 1, 2013.
139.19 Sec. 4. Minnesota Statutes 2012, section 424A.001, is amended by adding a
139.20subdivision to read:
139.21 Subd. 11. Fiscal year. The fiscal year for a volunteer firefighter relief association
139.22begins on January 1 of each calendar year and ends on December 31 of the same calendar
139.23year.
139.24EFFECTIVE DATE.This section is effective the day following final enactment.
139.25 Sec. 5. Minnesota Statutes 2012, section 424A.01, subdivision 6, is amended to read:
139.26 Subd. 6. Return to active firefighting after break in service. (a)The requirements
139.27of This section apply subdivision applies to all breaks in service, except breaks in that the
139.28resumption servicemandated by requirements of this subdivision do not apply to leaves
139.29of absence made available by federalor statute, such as the Family Medical Leave Act,
139.30United States Code, title 29, section 2691, and the Uniformed Services Employment and
139.31Reemployment Rights Act, United States Code, title 38, section 4301, and do not apply
139.32to leaves of absence made available by statelaw statute, such as the Parental Leave Act,
139.33section 181.941; the Leave for Organ Donations Act, section 181.9456; the Leave for
140.1Civil Air Patrol Service Act, section 181.946; the Leave for Immediate Family Members
140.2of Military Personnel Injured or Killed in Active Service Act, section 181.947; or the
140.3Protection of Jurors' Employment Act, section 593.50.
140.4(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and
140.5fire prevention duties for at least 60 days resumes performing active firefighting with the
140.6fire department associated with the relief association, if the bylaws of the relief association
140.7so permit, the firefighter may again become an active member of the relief association. A
140.8firefighter who returns to active service and membership is subject to the service pension
140.9calculation requirements under this section.
140.10(2) A firefighter who has been granted an approved leave of absence not exceeding
140.11one year by the fire department or by the relief association is exempt from the minimum
140.12period of resumption service requirement of this section.
140.13(3) A person who has a break in service not exceeding one year but has not been
140.14granted an approved leave of absence and who has not received a service pension or
140.15disability benefit may be made exempt from the minimum period of resumption service
140.16requirement of this section by the relief association bylaws.
140.17(4) If the bylaws so provide, a firefighter who returns to active relief association
140.18membership under this paragraph may continue to collect a monthly service pension,
140.19notwithstanding the service pension eligibility requirements under chapter 424A.
140.20(c) If a former firefighter who has received a service pension or disability benefit
140.21returns to active relief association membership under paragraph (b), the firefighter may
140.22qualify for the receipt of a service pension from the relief association for the resumption
140.23service period if the firefighter meets the service requirements of section424A.016,
140.24subdivision 3 , or
424A.02, subdivision 2 . No firefighter may be paid a service pension
140.25more than once for the same period of service.
140.26(d) If a former firefighter who has not received a service pension or disability benefit
140.27returns to active relief association membership under paragraph (b), the firefighter may
140.28qualify for the receipt of a service pension from the relief association for the original and
140.29resumption service periods if the firefighter meets the service requirements of section
140.30424A.016
, subdivision 3, or
424A.02, subdivision 2 , based on the original and resumption
140.31years of service credit.
140.32(e) A firefighter who returns to active lump-sum relief association membership under
140.33paragraph (b) and who qualifies for a service pension under paragraph (c) must have,
140.34upon a subsequent cessation of duties, any service pension for the resumption service
140.35period calculated as a separate benefit. If a lump-sum service pension had been paid to the
140.36firefighter upon the firefighter's previous cessation of duties, a second lump-sum service
141.1pension for the resumption service period must be calculated by applying the service
141.2pension amount in effect on the date of the firefighter's termination of the resumption
141.3service for all years of the resumption service.
141.4(f) A firefighter who had not been paid a lump-sum service pension returns to active
141.5relief association membership under paragraph (b), who did not meet the minimum period
141.6of resumption service requirement specified in the relief association's bylaws, but who
141.7does meet the minimum service requirement of section424A.02, subdivision 2 , based
141.8on the firefighter's original and resumption years of active service, must have, upon a
141.9subsequent cessation of duties, a service pension for the original and resumption service
141.10periods calculated by applying the service pension amount in effect on the date of the
141.11firefighter's termination of the resumption service, or, if the bylaws so provide, based on
141.12the service pension amount in effect on the date of the firefighter's previous cessation
141.13of duties. The service pension for a firefighter who returns to active lump-sum relief
141.14association membership under this paragraph, but who had met the minimum period
141.15of resumption service requirement specified in the relief association's bylaws, must be
141.16calculated by applying the service pension amount in effect on the date of the firefighter's
141.17termination of the resumption service.
141.18(g) If a firefighter receiving a monthly benefit service pension returns to active
141.19monthly benefit relief association membership under paragraph (b), and if the relief
141.20association bylaws do not allow for the firefighter to continue collecting a monthly service
141.21pension, any monthly benefit service pension payable to the firefighter is suspended as
141.22of the first day of the month next following the date on which the firefighter returns to
141.23active membership. If the firefighter was receiving a monthly benefit service pension,
141.24and qualifies for a service pension under paragraph (c), the firefighter is entitled to
141.25an additional monthly benefit service pension upon a subsequent cessation of duties
141.26calculated based on the resumption service credit and the service pension accrual amount
141.27in effect on the date of the termination of the resumption service. A suspended initial
141.28service pension resumes as of the first of the month next following the termination of the
141.29resumption service. If the firefighter was not receiving a monthly benefit service pension
141.30and meets the minimum service requirement of section424A.02, subdivision 2 , a service
141.31pension must be calculated by applying the service pension amount in effect on the date of
141.32the firefighter's termination of the resumption service for all years of service credit.
141.33(h) A firefighter who was not receiving a monthly benefit service pension returns to
141.34active relief association membership under paragraph (b), who did not meet the minimum
141.35period of resumption service requirement specified in the relief association's bylaws, but
141.36who does meet the minimum service requirement of section424A.02, subdivision 2 ,
142.1based on the firefighter's original and resumption years of active service, must have,
142.2upon a subsequent cessation of duties, a service pension for the original and resumption
142.3service periods calculated by applying the service pension amount in effect on the date of
142.4the firefighter's termination of the resumption service, or, if the bylaws so provide, based
142.5on the service pension amount in effect on the date of the firefighter's previous cessation
142.6of duties. The service pension for a firefighter who returns to active relief association
142.7membership under this paragraph, but who had met the minimum period of resumption
142.8service requirement specified in the relief association's bylaws, must be calculated by
142.9applying the service pension amount in effect on the date of the firefighter's termination of
142.10the resumption service.
142.11(i) For defined contribution plans, a firefighter who returns to active relief
142.12association membership under paragraph (b) and who qualifies for a service pension
142.13under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service
142.14pension for the resumption service period calculated as a separate benefit. If a service
142.15pension had been paid to the firefighter upon the firefighter's previous cessation of duties,
142.16and if the firefighter meets the minimum service requirement of section424A.016 ,
142.17subdivision 3, based on the resumption years of service, a second service pension for
142.18the resumption service period must be calculated to include allocations credited to the
142.19firefighter's individual account during the resumption period of service and deductions
142.20for administrative expenses, if applicable.
142.21(j) For defined contribution plans, if a firefighter who had not been paid a service
142.22pension returns to active relief association membership under paragraph (b), and who
142.23meets the minimum service requirement of section424A.016, subdivision 3 , based on
142.24the firefighter's original and resumption years of service, must have, upon a subsequent
142.25cessation of duties, a service pension for the original and resumption service periods
142.26calculated to include allocations credited to the firefighter's individual account during
142.27the original and resumptionperiod periods of service and deductions for administrative
142.28expenses, if applicable, less any amounts previously forfeited under section424A.016,
142.29subdivision 4 .
142.30EFFECTIVE DATE.This section is effective the day following final enactment.
142.31 Sec. 6. Minnesota Statutes 2012, section 424A.015, subdivision 1, is amended to read:
142.32 Subdivision 1. Separation from active service; exception. (a) No service pension
142.33is payable to a person while the person remains an active member of the respective fire
142.34department, and a person who is receiving a service pension is not entitled to receive any
142.35other benefits from the special fund of the relief association.
143.1(b) No relief association as defined in section424A.001, subdivision 4 , may pay a
143.2service pension or disability benefit to a former member of the relief association if that
143.3person has not separated from active service with the fire department to which the relief
143.4association is directly associated, unless:
143.5(1) the personis employed subsequent to retirement by discontinues volunteer
143.6firefighter duties with the municipality or the independent nonprofit firefighting
143.7corporation, whichever applies,to perform and performs duties within the municipal fire
143.8department or corporation on a full-time basis;
143.9(2) the governing body of the municipality or of the corporation has filed its
143.10determination with the board of trustees of the relief association that the person's
143.11experience with and service to the fire department in that person's full-time capacity
143.12would be difficult to replace; and
143.13(3) the bylaws of the relief association were amended to provide for the payment of
143.14a service pension or disability benefit for such full-time employees.
143.15EFFECTIVE DATE.This section is effective the day following final enactment.
143.16 Sec. 7. Minnesota Statutes 2012, section 424A.015, subdivision 4, is amended to read:
143.17 Subd. 4. Transfer to individual retirement account. A relief association that is a
143.18qualified pension plan under section 401(a) of the Internal Revenue Code, as amended,
143.19and that provides a single payment service pension, at the written request of the applicable
143.20retiring member or, following the death of the active member, at the written request of the
143.21deceased member's surviving spouse, may directly transfer on an institution-to-institution
143.22basis the eligible member's lump-sum pension or thedeath or survivor benefit attributable
143.23to the member, whichever applies, to the requesting person's individual retirement account
143.24under section 408(a) of the Internal Revenue Code, as amended.
143.25EFFECTIVE DATE.This section is effective the day following final enactment.
143.26 Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 6, is amended to read:
143.27 Subd. 6. Deferred service pensions. (a) A member of a relief association is entitled
143.28to a deferred service pension if the member:
143.29(1) has completed the lesser of the minimum period of active service with the fire
143.30department specified in the bylaws or 20 years of active service with the fire department;
143.31(2) has completed at least five years of active membership in the relief association; and
143.32(3) separates from active service and membership and has completed the minimum
143.33service and membership requirements in subdivision 2. The requirement that a member
144.1separate from active service and membership is waived for persons who have discontinued
144.2their volunteer firefighter duties and who are employed on a full-time basis under section
144.3424A.015, subdivision 1
.
144.4 (b) The deferred service pension is payable when the former member reaches at
144.5least age 50, or at least the minimum age specified in the bylaws governing the relief
144.6association if that age is greater than age 50, and when the former member makes a valid
144.7written application.
144.8 (c) A defined contribution relief association may, if its governing bylaws so provide,
144.9credit interest or additional investment performance on the deferred lump-sum service
144.10pension during the period of deferral. If provided for in the bylaws, the interest must be
144.11paid:
144.12(1) at the investment performance rate actually earned on that portion of the assets
144.13if the deferred benefit amount is invested by the relief association in a separate account
144.14established and maintained by the relief association;
144.15(2) at the investment performance rate actually earned on that portion of the assets
144.16if the deferred benefit amount is invested in a separate investment vehicle held by the
144.17relief association; or
144.18(3) at the investment return on the assets of the special fund of the defined contribution
144.19volunteer firefighter relief association in proportion to the share of the assets of the special
144.20fund to the credit of each individual deferred member account through the accounting date
144.21on which the investment return is recognized by and credited to the special fund.
144.22 (d) Unless the bylaws of a relief association that has elected to pay interest or
144.23additional investment performance on deferred lump-sum service pensions under
144.24paragraph (c) specifies a different interest or additional investment performance method,
144.25including the interest or additional investment performance period starting date and ending
144.26date, the interest or additional investment performance on a deferred service pension
144.27is creditable as follows:
144.28(1) for a relief association that has elected to pay interest or additional investment
144.29performance under paragraph (c), clause (1) or (3), beginning on the date that the
144.30member separates from active service and membership and ending on the accounting
144.31date immediately before the deferred member commences receipt of the deferred service
144.32pension; or
144.33(2) for a relief association that has elected to pay interest or additional investment
144.34performance under paragraph (c), clause (2), beginning on the date that the member
144.35separates from active service and membership and ending on the date that the separate
145.1investment vehicle is valued immediately before the date on which the deferred member
145.2commences receipt of the deferred service pension.
145.3(e) The deferred service pension is governed by and must be calculated under
145.4the general statute, special law, relief association articles of incorporation, and relief
145.5association bylaw provisions applicable on the date on which the member separated from
145.6active service with the fire department and active membership in the relief association.
145.7EFFECTIVE DATE.This section is effective the day following final enactment.
145.8 Sec. 9. Minnesota Statutes 2012, section 424A.02, subdivision 7, is amended to read:
145.9 Subd. 7. Deferred service pensions. (a) A member of a defined benefit relief
145.10association is entitled to a deferred service pension if the member:
145.11(1) has completed the lesser of either the minimum period of active service with the
145.12fire department specified in the bylaws or 20 years of active service with the fire department;
145.13(2) has completed at least five years of active membership in the relief association; and
145.14(3) separates from active service and membership and has completed the minimum
145.15service and membership requirements in subdivision 1. The requirement that a member
145.16separate from active service and membership is waived for persons who have discontinued
145.17their volunteer firefighter duties and who are employed on a full-time basis under section
145.18424A.015, subdivision 1
.
145.19 (b) The deferred service pension is payable when the former member reaches at
145.20least age 50, or at least the minimum age specified in the bylaws governing the relief
145.21association if that age is greater than age 50, and when the former member makes a valid
145.22written application.
145.23 (c) A defined benefit relief association that provides a lump-sum service pension
145.24governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
145.25deferred lump-sum service pension during the period of deferral. If provided for in the
145.26bylaws, interest must be paid in one of the following manners:
145.27 (1) at the investment performance rate actually earned on that portion of the assets
145.28if the deferred benefit amount is invested by the relief association in a separate account
145.29established and maintained by the relief association;
145.30(2) at the investment performance rate actually earned on that portion of the assets
145.31if the deferred benefit amount is invested in a separate investment vehicle held by the
145.32relief association; or
145.33 (3) at an interest rate of up to five percent, compounded annually, as set by the board
145.34ofdirectors and approved as provided in subdivision 10 trustees.
146.1(d) Any change in the interest rate set by the board of directors under paragraph (c),
146.2clause (3), must be ratified by the governing body of the municipality served by the fire
146.3department to which the relief association is directly associated, or by the independent
146.4nonprofit firefighting corporation, as applicable.
146.5(d) (e) Interest under paragraph (c), clause (3), is payable beginning on the January
146.61 next following the date on whichthe municipality has approved the deferred service
146.7pension interest rateestablished as set by the board of trustees was ratified by the governing
146.8body of the municipality served by the fire department to which the relief association is
146.9directly associated, or by the independent nonprofit firefighting corporation, as applicable.
146.10(e) (f) Unless the bylaws of a relief association that has elected to pay interest
146.11or additional investment performance on deferred lump-sum service pensions under
146.12paragraph (c) specifies a different interest or additional investment performance method,
146.13including the interest or additional investment performance period starting date and ending
146.14date, the interest or additional investment performance on a deferred service pension
146.15is creditable as follows:
146.16(1) for a relief association that has elected to pay interest or additional investment
146.17performance under paragraph (c), clause (1) or (3), beginning on the first day of the
146.18month next following the datethat on which the member separates from active service
146.19and membership and ending on theaccounting date last day of the month immediately
146.20before the month in which the deferred member commences receipt of the deferred
146.21service pension; or
146.22(2) for a relief association that has elected to pay interest or additional investment
146.23performance under paragraph (c), clause (2), beginning on the date that the member
146.24separates from active service and membership and ending on the date that the separate
146.25investment vehicle is valued immediately before the date on which the deferred member
146.26commences receipt of the deferred service pension.
146.27(f) (g) For a deferred service pension that is transferred to a separate account
146.28established and maintained by the relief association or separate investment vehicle held
146.29by the relief association, the deferred member bears the full investment risk subsequent
146.30to transfer and in calculating the accrued liability of the volunteer firefighters relief
146.31association that pays a lump-sum service pension, the accrued liability for deferred service
146.32pensions is equal to the separate relief association account balance or the fair market value
146.33of the separate investment vehicle held by the relief association.
146.34(g) (h) The deferred service pension is governed by and must be calculated under
146.35the general statute, special law, relief association articles of incorporation, and relief
147.1association bylaw provisions applicable on the date on which the member separated from
147.2active service with the fire department and active membership in the relief association.
147.3EFFECTIVE DATE.This section is effective January 1, 2014, with respect to the
147.4amendments to paragraphs (c), (d), and (e), and is effective retroactively from January
147.51, 2013, with respect to the amendments to paragraph (f).
147.6 Sec. 10. Minnesota Statutes 2012, section 424A.10, subdivision 1, is amended to read:
147.7 Subdivision 1. Definitions. For purposes of this section:
147.8 (1) "qualified recipient" means an individual who receives a lump-sum distribution
147.9of pension or retirement benefits from a volunteer firefighters' relief association or from
147.10the voluntary statewide lump-sum volunteer firefighter retirement plan for service that the
147.11individual has performed as a volunteer firefighter;
147.12 (2) "survivor of a deceased active or deferred volunteer firefighter" means the
147.13surviving spouse of a deceased active or deferred volunteer firefighterunder section
147.14424A.001, subdivision 6, or, if none, the surviving child or children of a deceased active
147.15or deferred volunteer firefighter;
147.16 (3) "active volunteer firefighter" means a person who regularly renders fire
147.17suppression service for a municipal fire department or an independent nonprofit firefighting
147.18corporation, who has met the statutory and other requirements for relief association
147.19membership, and who is deemed by the relief association under law and its bylaws to be a
147.20fully qualified member of the relief association or from the voluntary statewide lump-sum
147.21volunteer firefighter retirement plan for at least one month; and
147.22 (4) "deferred volunteer firefighter" means a former active volunteer firefighter who
147.23terminated active firefighting service, has sufficient service credit from the applicable relief
147.24association or from the voluntary statewide lump-sum volunteer firefighter retirement plan
147.25to be entitled to a service pension under the bylaws of the relief association, but has not
147.26applied for or has not received the service pension.
147.27EFFECTIVE DATE.This section is effective the day following final enactment.
147.28 Sec. 11. Minnesota Statutes 2012, section 424A.10, subdivision 2, is amended to read:
147.29 Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a volunteer
147.30firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
147.31retirement plan of a lump-sum distribution to a qualified recipient, the association must
147.32pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
147.33contrary, the relief association must pay the supplemental benefit out of its special fund
148.1and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
148.2the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
148.3retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
148.4distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
148.5In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
148.6benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
148.7volunteer firefighter in that capacity.
148.8 (b) Upon the payment by a relief association or the retirement plan of a lump-sum
148.9survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
148.10deferred volunteer firefighter, the associationmay must pay a supplemental survivor
148.11benefit to the survivor of the deceased active or deferred volunteer firefighter from the
148.12special fund of the relief associationif its articles of incorporation or bylaws so provide
148.13 and the retirement planmay must pay a supplemental survivor benefit to the survivor of
148.14the deceased active or deferred volunteer firefighter from the retirement fund if chapter
148.15353G so provides. The amount of the supplemental survivor benefit is 20 percent of the
148.16survivor benefit, but not to exceed $2,000.
148.17 (c) An individual may receive a supplemental benefit under paragraph (a) or under
148.18paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
148.19firefighter benefit.
148.20EFFECTIVE DATE.This section is effective the day following final enactment.
148.21 Sec. 12. WHITE BEAR LAKE VOLUNTEER FIRE DEPARTMENT RELIEF
148.22ASSOCIATION; RETIREE DEATH BENEFIT.
148.23Notwithstanding any provision of Minnesota Statutes, section 424A.05, subdivision
148.243, clause (4), to the contrary, the White Bear Lake Volunteer Fire Department Relief
148.25Association may provide, if its bylaws so provide, for the payment of a $2,000 lump sum
148.26death benefit from the special fund of the relief association to the estate of a person who
148.27was a member of the relief association, who rendered at least 20 years of firefighting
148.28service in the fire department and membership in the relief association, who retired
148.29before January 1, 2009, who received a monthly benefit service pension from the relief
148.30association for the month in which this section became effective, and who died after the
148.31effective date of the bylaw amendment that implements the authority under this section.
148.32EFFECTIVE DATE.This section is effective the day after the governing body of
148.33the city of White Bear Lake and its chief clerical officer timely complete their compliance
148.34with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
149.1 Sec. 13. REPEALER.
149.2Minnesota Statutes 2012, section 424A.10, subdivision 5, is repealed.
149.3EFFECTIVE DATE.This section is effective the day following final enactment.
149.6 Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:
149.7 Subd. 2a. Included employees. (a) "State employee" includes:
149.8 (1) employees of the Minnesota Historical Society;
149.9 (2) employees of the State Horticultural Society;
149.10 (3) employees of the Minnesota Crop Improvement Association;
149.11 (4) employees of the adjutant general whose salaries are paid from federal funds and
149.12who are not covered by any federal civilian employees retirement system;
149.13 (5) employees of the Minnesota State Colleges and Universities who are employed
149.14under the university or college activities program;
149.15 (6) currently contributing employees covered by the system who are temporarily
149.16employed by the legislature during a legislative session or any currently contributing
149.17employee employed for any special service as defined in subdivision 2b, clause (8);
149.18 (7) employees of the legislature who are appointed without a limit on the duration
149.19of their employment and persons employed or designated by the legislature or by a
149.20legislative committee or commission or other competent authority to conduct a special
149.21inquiry, investigation, examination, or installation;
149.22 (8) trainees who are employed on a full-time established training program
149.23performing the duties of the classified position for which they will be eligible to receive
149.24immediate appointment at the completion of the training period;
149.25 (9) employees of the Minnesota Safety Council;
149.26 (10) any employees who are on authorized leave of absence from the Transit
149.27Operating Division of the former Metropolitan Transit Commission and who are employed
149.28by the labor organization which is the exclusive bargaining agent representing employees
149.29of the Transit Operating Division;
149.30 (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
149.31Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
149.32Control Commission unless excluded under subdivision 2b or are covered by another
149.33public pension fund or plan under section473.415, subdivision 3 ;
149.34 (12) judges of the Tax Court;
150.1 (13) personnel who were employed on June 30, 1992, by the University of
150.2Minnesota in the management, operation, or maintenance of its heating plant facilities,
150.3whose employment transfers to an employer assuming operation of the heating plant
150.4facilities, so long as the person is employed at the University of Minnesota heating plant
150.5by that employer or by its successor organization;
150.6 (14) personnel who are employed as seasonal employees in the classified or
150.7unclassified service;
150.8 (15) persons who are employed by the Department of Commerce as a peace officer
150.9in the Insurance Fraud Prevention Division under section45.0135 who have attained the
150.10mandatory retirement age specified in section43A.34, subdivision 4 ;
150.11 (16) employees of the University of Minnesota unless excluded under subdivision
150.122b, clause (3);
150.13 (17) employees of the Middle Management Association whose employment began
150.14after July 1, 2007, and to whom section352.029 does not apply;
150.15 (18) employees of the Minnesota Government Engineers Council to whom section
150.16352.029
does not apply; and
150.17(19) employees of the Minnesota Sports Facilities Authority.; and
150.18(20) employees of the Minnesota Association of Professional Employees.
150.19 (b) Employees specified in paragraph (a), clause (13), are included employees under
150.20paragraph (a) if employer and employee contributions are made in a timely manner in the
150.21amounts required by section352.04 . Employee contributions must be deducted from
150.22salary. Employer contributions are the sole obligation of the employer assuming operation
150.23of the University of Minnesota heating plant facilities or any successor organizations to
150.24that employer.
150.25EFFECTIVE DATE.(a) This section is effective July 1, 2013.
150.26(b) The membership inclusion under paragraph (a), clause (20), does not apply to
150.27a person who is receiving an age and service retirement annuity from the general state
150.28employees retirement plan of the Minnesota State Retirement System on June 30, 2013.
150.29 Sec. 2. Minnesota Statutes 2012, section 352.029, subdivision 1, is amended to read:
150.30 Subdivision 1. Qualifications. Unless already specifically included under section
150.31352.01, subdivision 2a, or unless specifically excluded under section352.01, subdivision
150.322b , a state employee on leave of absence without pay to provide service as an employee
150.33or officer of a labor organization that is an exclusive bargaining agent representing state
150.34employees may elect under subdivision 2 to be covered by the general state employees
151.1retirement plan of the Minnesota State Retirement System for service with the labor
151.2organization, subject to the limitations set forth in subdivisions 2a and 2b.
151.3EFFECTIVE DATE.This section is effective July 1, 2013.
151.4 Sec. 3. Minnesota Statutes 2012, section 352.029, subdivision 2a, is amended to read:
151.5 Subd. 2a. Limitations on salary for benefits and contributions. (a) The covered
151.6salary for a labor organization employee who is a member under section 352.01,
151.7subdivision 2a, paragraph (a), or who qualifies for membership under this section or
151.8section352.75 is limited to the lesser of:
151.9(1) the employee's actual salary as defined under section352.01, subdivision 13 ; or
151.10(2) 75 percent of the salary of the governor as set under section15A.082 .
151.11(b) The limited covered salary determined under this subdivision must be used in
151.12determining employee, employer, and employer additional contributions under section
151.13352.04
, subdivisions 2 and 3, and in determining retirement annuities and other benefits
151.14under this chapter and chapter 356.
151.15EFFECTIVE DATE.This section is effective July 1, 2013.
151.16 Sec. 4. Minnesota Statutes 2012, section 352.029, subdivision 2b, is amended to read:
151.17 Subd. 2b. Earning restrictions apply. A retirement annuity is only payable, if the
151.18person has met any other applicable requirements, upon the termination of employment by
151.19the labor organization by the person who is a member under section 352.01, subdivision
151.202a, paragraph (a), or who elected coverage under subdivision 1of employment by the
151.21labor organization. The reemployed annuitant earnings limitation set forth in section
151.22352.115, subdivision 10
, applies in the event that the person who is a member under
151.23section 352.01, subdivision 2a, paragraph (a), or who elected coverage under subdivision
151.241 retires and is subsequently reemployed while an annuitant by the labor organization or
151.25by any other entity employing persons who are covered by the Minnesota State Retirement
151.26System by virtue of that employment.
151.27EFFECTIVE DATE.This section is effective July 1, 2013.
151.28 Sec. 5. Minnesota Statutes 2012, section 352.029, subdivision 3, is amended to read:
151.29 Subd. 3. Contributions. The employee and employer contributions required
151.30by section352.04 , or by section
352.92 for employees covered by section
352.91 , are
151.31the obligation of the employee who is a member under section 352.01, subdivision 2a,
151.32paragraph (a), or who chooses coverage under this section. However, the employing
152.1labor organization may pay the employer contributions. Contributions made by the
152.2employee must be made by salary deduction. The employing labor organization shall
152.3pay all contributions to the system as required by section352.04 , or by section
352.92
152.4for employees covered by section352.91 .
152.5EFFECTIVE DATE.This section is effective July 1, 2013.
152.6 Sec. 6. Minnesota Statutes 2012, section 352.029, subdivision 5, is amended to read:
152.7 Subd. 5. Board membership excluded. Employees of a labor organization who
152.8become members of the system under section 352.01, subdivision 2a, paragraph (a), or
152.9under this section are not eligible for election to the board of directors.
152.10EFFECTIVE DATE.This section is effective July 1, 2013.
152.11 Sec. 7. [356.408] TERMINATION OF SURVIVOR DESIGNATION.
152.12 Subdivision 1. Authorization to terminate optional annuity form. A public
152.13pension plan retired member receiving a joint and survivor retirement annuity or a person
152.14receiving a joint and survivor disability benefit from a plan listed in section 356.30,
152.15subdivision 3, and the designated survivor of that person may mutually agree to terminate
152.16the survivor designation by filing a termination statement on a form and in the manner
152.17specified by the chief administrative officer of the applicable public pension plan. Upon
152.18filing a valid termination statement accepted by the chief administrative officer, the rights
152.19of the designated survivor to receive a benefit upon death of the plan retired or disabled
152.20annuitant are terminated, and the retired or disabled annuitant must receive a normal
152.21single-life annuity.
152.22 Subd. 2. Revised annuity form. The replacement single life annuity must be
152.23actuarially equivalent to the joint and survivor annuity as of the first day of the month
152.24following acceptance of the valid termination statement by the chief administrative officer
152.25and payment of this revised prospective annuity begins on that same date.
152.26 Subd. 3. Application. This section does not apply if the designated survivor is the
152.27spouse or former spouse of the plan member.
152.28 Subd. 4. Termination statement form requirements. The annuity form
152.29termination statements must be in written form and must be notarized. Before accepting
152.30any signed form or forms, the chief administrative officer of the applicable pension plan
152.31must offer counseling to the retired or disabled annuitant and the designated survivor
152.32regarding the implications of the annuity form waiver. The forms must indicate that this
153.1counseling has been offered and either has been completed or has been waived by the
153.2retired or disabled annuitant and the designated survivor.
153.3 Subd. 5. Prohibition against further annuity form revisions. No retired or
153.4disabled annuitant who waives the annuity form under this section may further revise
153.5the annuity form at any later date.
153.6EFFECTIVE DATE.This section is effective the day following final enactment.
153.7 Sec. 8. Minnesota Statutes 2012, section 356.48, subdivision 1, is amended to read:
153.8 Subdivision 1. Covered plans. This section applies to the following retirement plans:
153.9(1) the general state employees retirement plan of the Minnesota State Retirement
153.10System established under chapter 352;
153.11(2) the correctional state employees retirement plan of the Minnesota State
153.12Retirement System established under chapter 352;
153.13(3) the State Patrol retirement plan established under chapter 352B;
153.14(4) the unclassified state employees retirement program of the Minnesota State
153.15Retirement System established under chapter 352D;
153.16(5) the general employee retirement plan of the Public Employees Retirement
153.17Association established under chapter 353;
153.18(6) the public employees police and fire retirement plan established under chapter 353;
153.19(7) the local government correctional employees retirement plan of the Public
153.20Employees Retirement Association established under chapter 353E;
153.21(8) the Teachers Retirement Association established under chapter 354;and
153.22(9) the St. Paul Teachers Retirement Fund Association established under chapter
153.23354A; and
153.24(9) (10) the uniform judicial retirement plan established under chapter 490.
153.25EFFECTIVE DATE.This section is effective the day following final enactment.
153.26 Sec. 9. MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION;
153.27SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.
153.28(a) An eligible person described in paragraph (b) is entitled to purchase prior
153.29uncredited service credit under paragraph (c) and, if the service credit purchase is made, to
153.30have the effective start date for active retirement plan membership of June 30, 1989, and
153.31to retire under Minnesota Statutes, section 352.116, subdivision 1.
153.32(b) An eligible person is a person who:
153.33(1) was born on July 17, 1964;
154.1(2) was initially employed by the state of Minnesota as a temporary status laborer
154.2general on June 19, 1989;
154.3(3) became a seasonal status laborer general on August 30, 1989;
154.4(4) became an unlimited status laborer general on December 12, 1990;
154.5(5) has received annual statements from the Minnesota State Retirement System
154.6indicating eligibility for a retirement benefit under Minnesota Statutes, section 352.116,
154.7subdivision 1, paragraph (b), as of September 1, 2012, including the June 30, 2012, annual
154.8statement;
154.9(6) attended a Minnesota State Retirement System preretirement class in March
154.102012 and was individually informed by a Minnesota State Retirement System employee of
154.11the person's retirement eligibility under Minnesota Statutes, section 352.116, subdivision
154.121, paragraph (b); and
154.13(7) received a letter from the Minnesota State Retirement System on August 16,
154.142012, revising the start date for general state employees retirement plan allowable
154.15service credit from June 19, 1989, to September 27, 1989, and indicating consequent
154.16inapplicability of Minnesota Statutes, section 352.116, subdivision 1.
154.17(c) An eligible person may purchase allowable service credit in the general state
154.18employees retirement plan of the Minnesota State Retirement System for the period June
154.1930, 1989, by paying an amount equal to 7.63 percent of salary earned after June 18, 1989,
154.20to June 30, 1989, and to 8.85 percent of salary earned after June 30, 1989, to September 27,
154.211989, plus 8.5 percent compound interest on the total equivalent employee and employer
154.22contribution amounts from the date on which the contribution would have been deducted
154.23or paid if the person had been a member of the general state employees retirement plan of
154.24the Minnesota State Retirement System at the time to the date that this portion of the prior
154.25service credit purchase payment is made. The payment must be made in a lump sum.
154.26(d) An eligible person who purchased allowable service credit under paragraph
154.27(c) has a June 30, 1989, start date for allowable service credited by the general state
154.28employees retirement plan of the Minnesota State Retirement System and is eligible for a
154.29retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
154.30(e) Authority to purchase prior uncredited allowable service credit under this section
154.31expires on August 1, 2013.
154.32EFFECTIVE DATE.This section is effective July 1, 2013.
154.33 Sec. 10. PERA-GENERAL; PURCHASE OF CERTAIN PRIOR NORTHFIELD
154.34SERVICE CREDIT.
155.1(a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
155.2contrary, an eligible person described in paragraph (b) is entitled to repay any prior refund
155.3as provided in paragraph (c) and is entitled to purchase service credit as provided in
155.4paragraph (d).
155.5(b) An eligible person is a person who:
155.6(1) was born on July 10, 1942;
155.7(2) was employed by the city of Northfield on October 5, 2005;
155.8(3) became a member of the general employees retirement plan of the Public
155.9Employees Retirement Association on April 5, 2009;
155.10(4) was employed by the transit division of the city of Northfield until June 29,
155.112012; and
155.12(5) was eligible for PERA general employees retirement plan membership on
155.13October 5, 2005, but was not reported to PERA for membership in a timely fashion.
155.14(c) The eligible person may repay to the general employees retirement fund of
155.15the Public Employees Retirement Association any refund of accumulated member
155.16contributions and interest previously received, plus interest at an annual rate of 8.5 percent
155.17compounded annually from the date on which the refund was paid until the date on which
155.18the refund is repaid.
155.19(d) If the eligible person repays all prior refunds under paragraph (c), the eligible
155.20person may purchase 43 months of allowable service credit and salary credit from the
155.21general employees retirement plan of the Public Employees Retirement Association by
155.22making a payment equal to the unpaid member contributions during the period October 5,
155.232005, until April 5, 2009, plus 8.5 percent interest from the date that each contribution
155.24would have been transmitted to the Public Employees Retirement Association until the
155.25date that the payment under this paragraph is made.
155.26(e) If the eligible person makes the payment required under paragraph (c) in a timely
155.27fashion, within 30 days following notification of that fact by the executive director of the
155.28Public Employees Retirement Association, the city of Northfield shall pay the balance
155.29of the prior service credit purchase payment amount required under Minnesota Statutes,
155.30section 356.551. If the payment by the city of Northfield is not paid in a timely fashion,
155.31the executive director shall collect the unpaid amount as provided under Minnesota
155.32Statutes, section 353.28, subdivision 6.
155.33(f) Authority to repay a refund and to make a prior service credit purchase payment
155.34under this section expires on December 31, 2014.
155.35EFFECTIVE DATE.This section is effective the day following final enactment.
156.1 Sec. 11. PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED
156.2CONTRIBUTION PERIOD; WRIGHT COUNTY HIGHWAY DEPARTMENT
156.3EMPLOYEE.
156.4(a) Notwithstanding any provision of law to the contrary, an eligible person
156.5described in paragraph (b) is entitled to purchase from the general employees retirement
156.6plan of the Public Employees Retirement Association allowable service credit under
156.7Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member
156.8deductions described in paragraph (c).
156.9(b) An eligible person is a person who:
156.10(1) was born on March 19, 1959;
156.11(2) is a current employee of the Wright County Highway Department, covered by
156.12the general employees retirement plan of the Public Employees Retirement Association;
156.13(3) shifted from temporary to full-time employment with the highway department
156.14in April 2007; and
156.15(4) was not reported by Wright County for retirement coverage by and membership
156.16in the general employees retirement plan of the Public Employees Retirement Association
156.17until March 2012.
156.18(c) The period of uncredited service authorized for purchase is the period from
156.19April 2007 through December 2008, during which no member contributions for the
156.20general employees retirement plan of the Public Employees Retirement Association were
156.21deducted from the eligible person's salary by Wright County, and which could not be
156.22corrected through the Public Employees Retirement Association omitted contribution
156.23provision due to a three-year time limit in the provision.
156.24(d) Minnesota Statutes, section 356.551, applies to this purchase, except that the
156.25purchase payment amount payable by the eligible person is the employee contributions
156.26that should have been made, plus 8.5 percent interest compounded annually from the
156.27date each deduction should have occurred, until the date paid to the Public Employees
156.28Retirement Association. The purchase payment amount payable by Wright County is the
156.29balance of the full actuarial value prior service credit purchase payment amount as of the
156.30first day of the month next following the receipt of the eligible person's payment that is
156.31remaining after deducting the purchase payment amount payable by the eligible person.
156.32(e) The payment amount due from the county under paragraph (d) must be made on
156.33or before the 15th of the month next following the receipt of the eligible person's payment
156.34under paragraph (d). If the county purchase payment amount is not paid in a timely
156.35fashion, the amount due accrues compound monthly interest at the rate of 0.71 percent per
156.36month from the first day of the month next following the receipt of the eligible person's
157.1payment until the county purchase payment amount is received by the Public Employees
157.2Retirement Association. If the county purchase payment amount is not paid to the Public
157.3Employees Retirement Association 90 days after the receipt of the eligible person's
157.4payment, the executive director shall notify the commissioner of management and budget
157.5and the commissioner of revenue of that unpaid obligation and the unpaid obligation must
157.6be deducted from any state aid otherwise payable to the county, plus interest.
157.7(f) The eligible person must provide the executive director of the Public Employees
157.8Retirement Association with any relevant requested information pertaining to this service
157.9credit purchase.
157.10(g) Authority to make a service credit purchase under this section expires on June
157.1130, 2014, or upon the termination from public employment under Minnesota Statutes,
157.12section 353.01, subdivision 11a, whichever occurs earlier.
157.13EFFECTIVE DATE.This section is effective the day following final enactment.
157.16 Section 1. [6.496] VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS;
157.17STATE BOARD OF INVESTMENT OPTIONS.
157.18(a) Annually, on or before March 1, the state auditor shall provide all volunteer
157.19firefighter relief associations with recent and historic investment performance results of
157.20the various accounts of the Minnesota supplemental investment fund and information
157.21on the process and procedures for a volunteer firefighter relief association to utilize the
157.22Minnesota supplemental investment fund as an investment option.
157.23(b) Annually, on or before March 1, the state auditor shall provide all volunteer
157.24firefighter relief associations with basic information on the voluntary statewide lump-sum
157.25volunteer firefighter retirement plan, that a fire department has the option annually to join
157.26the retirement plan, and that, if the fire department joins the retirement plan, future asset
157.27investments would be the responsibility of the State Board of Investment.
157.28(c) The information provision required by paragraphs (a) and (b) may be provided in
157.29an electronic or other format if the state auditor determines that the format is reasonably
157.30accessible by a preponderance of volunteer firefighter relief associations.
157.31EFFECTIVE DATE.This section is effective July 1, 2013.
157.32 Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 4, is amended to read:
157.33 Subd. 4. Duties and powers of board of directors. (a) The board shall:
158.1 (1) elect a chair;
158.2 (2) appoint an executive director;
158.3 (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D,
158.4and 490 and transact the business of the system, subject to the limitations of law;
158.5 (4) consider and dispose of, or take any other action the board of directors deems
158.6appropriate concerning, denials of applications for annuities or disability benefits under
158.7this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and
158.8others pertaining to the retirement of employees and the operation of the system;
158.9 (5) oversee the administration of the deferred compensation plan established in
158.10section352.965 ; and
158.11 (6) oversee the administration of the health care savings plan established in section
158.12352.98.; and
158.13 (7) approve early retirement and optional annuity factors, subject to review by the
158.14actuary retained by the Legislative Commission on Pensions and Retirement; establish
158.15the schedule for implementation of the approved factors; and notify the Legislative
158.16Commission on Pensions and Retirement of the implementation schedule.
158.17 (b) The board shall advise the director on any matters relating to the system and
158.18carrying out functions and purposes of this chapter. The board's advice shall control.
158.19 Sec. 3. Minnesota Statutes 2012, section 353.03, subdivision 3, is amended to read:
158.20 Subd. 3. Duties and powers. (a) The board shall:
158.21 (1) elect a president and vice-president;
158.22 (2) approve the staffing complement, as recommended by the executive director,
158.23necessary to administer the fund;
158.24 (3) adopt bylaws for its own government and for the management of the fund
158.25consistent with the laws of the state and may modify them at pleasure;
158.26 (4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and
158.27the terms of the applicable benefit plans for the administration and management of the
158.28fund, for the payment and collection of payments from members and for the payment of
158.29withdrawals and benefits, and that are necessary in order to comply with the applicable
158.30federal Internal Revenue Service and Department of Labor requirements;
158.31 (5) pass upon and allow or disallow all applications for membership in the fund and
158.32allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
158.33 (6) adopt an appropriate mortality table based on experience of the fund as
158.34recommended by the association actuary and approved under section356.215, subdivision
158.3518 , with interest set at the rate specified in section
356.215, subdivision 8 ;
159.1 (7) provide for the payment out of the fund of the cost of administering this
159.2chapter, of all necessary expenses for the administration of the fund and of all claims for
159.3withdrawals, pensions, or benefits allowed;and
159.4 (8) approve or disapprove all recommendations and actions of the executive director
159.5made subject to its approval or disapproval by subdivision 3a.; and
159.6 (9) approve early retirement and optional annuity factors, subject to review by the
159.7actuary retained by the Legislative Commission on Pensions and Retirement; establish
159.8the schedule for implementation of the approved factors; and notify the Legislative
159.9Commission on Pensions and Retirement of the implementation schedule.
159.10 (b) In passing upon all applications and claims, the board may summon, swear, hear,
159.11and examine witnesses and, in the case of claims for disability benefits, may require the
159.12claimant to submit to a medical examination by a physician of the board's choice, at the
159.13expense of the fund, as a condition precedent to the passing on the claim, and, in the
159.14case of all applications and claims, may conduct investigations necessary to determine
159.15their validity and merit.
159.16 (c) The board may continue to authorize the sale of life insurance to members under
159.17the insurance program in effect on January 1, 1985, but must not change that program
159.18without the approval of the commissioner of management and budget. The association
159.19shall not receive any financial benefit from the life insurance program beyond the amount
159.20necessary to reimburse the association for costs incurred in administering the program.
159.21The association shall not engage directly or indirectly in any other activity involving the
159.22sale or promotion of goods or services, or both, whether to members or nonmembers.
159.23 (d) The board shall establish procedures governing reimbursement of expenses
159.24to board members. These procedures must define the types of activities and expenses
159.25that qualify for reimbursement, must provide that all out-of-state travel be authorized
159.26by the board, and must provide for the independent verification of claims for expense
159.27reimbursement. The procedures must comply with the applicable rules and policies of the
159.28Department of Management and Budget and the Department of Administration.
159.29 (e) The board may purchase fiduciary liability insurance and official bonds for the
159.30officers and members of the board of trustees and employees of the association and may
159.31purchase property insurance or may establish a self-insurance risk reserve including, but
159.32not limited to, data processing insurance and "extra-expense" coverage.
159.33 Sec. 4. Minnesota Statutes 2012, section 354.07, subdivision 1, is amended to read:
159.34 Subdivision 1. General powers of board. The board has the power to frame bylaws
159.35for its own government and for the management of the association not inconsistent with
160.1the laws of the state and to modify them at its pleasure; to adopt, alter, and enforce
160.2reasonable rules not inconsistent with the laws of the state for the administration and
160.3management of the association, for the payment and collection of payments from
160.4members, and for the payment of withdrawals and benefits; to pass upon and allow or
160.5disallow applications for membership in the association and for credit for teaching service;
160.6to pass upon and allow or disallow claims for withdrawals, pensions, or benefits payable
160.7by the fund; to adopt an appropriate mortality table based on experience of the association
160.8as recommended by the actuary retained under section356.214 and using the applicable
160.9postretirement interest assumption specified in section356.215, subdivision 8 ; to approve
160.10early retirement and optional annuity factors, subject to review by the actuary retained by
160.11the Legislative Commission on Pensions and Retirement; to establish the schedule for
160.12implementation of the approved factors; to notify the Legislative Commission on Pensions
160.13and Retirement of the implementation schedule; and to provide for the payment out of
160.14the fund of necessary expenses for the administration by the association and of claims for
160.15withdrawals, pensions, or benefits allowed.
160.16 Sec. 5. Minnesota Statutes 2012, section 354A.021, subdivision 2, is amended to read:
160.17 Subd. 2. Organization; board duties. (a) Each teachers retirement fund association
160.18shall be organized and governed pursuant to this chapter and chapter 317A, except that
160.19each association shall be deemed to be a nonprofit corporation without coming within
160.20the definition in section317A.011, subdivision 6 . Any corporate action of any teachers
160.21retirement fund association taken prior to April 9, 1976, shall be deemed to be valid if it
160.22conformed with Minnesota Statutes 1976, chapter 317 or 354A, or Revised Laws 1905,
160.23chapter 58, as amended through April 9, 1976.
160.24(b) In addition to the other powers and duties of a board of trustees of a first class
160.25city teacher retirement fund association, the board shall approve early retirement and
160.26optional annuity factors, subject to review by the actuary retained by the Legislative
160.27Commission on Pensions and Retirement; shall establish the schedule for implementation
160.28of the approved factors; and shall notify the Legislative Commission on Pensions and
160.29Retirement of the implementation schedule.
160.32 Section 1. Minnesota Statutes 2012, section 352B.011, subdivision 4, is amended to
160.33read:
161.1 Subd. 4. Average monthly salary. (a) Subject to the limitations of section356.611 ,
161.2"average monthly salary" means the average of the highest monthly salaries for five years
161.3of service as a member upon which contributions were deducted from pay under section
161.4352B.02
, or upon which appropriate contributions or payments were made to the fund to
161.5receive allowable service and salary credit as specified under the applicable law. Average
161.6monthly salary must be based upon all allowable service if this service is less than five years.
161.7(b) The salary used for the calculation of "average monthly salary" means the salary
161.8of the member as defined in section352.01, subdivision 13 . "Average monthly salary"
161.9includes the salary of the member during the period of covered employment rendered after
161.10reaching the allowable service credit limit of section 352B.08, subdivision 2, paragraph
161.11(b). The salary used for the calculation of "average monthly salary" does not include any
161.12lump-sum annual leave payments and overtime payments made at the time of separation
161.13from state service, any amounts of severance pay, or any reduced salary paid during the
161.14period the person is entitled to workers' compensation benefit payments for temporary
161.15disability.
161.16EFFECTIVE DATE.This section is effective the day following final enactment.
161.17 Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to read:
161.18 Subd. 1a. Member contributions. (a) The member contribution is the following
161.19percentage of the member's salary:
161.25(b) These contributions must be made by deduction from salary as provided in
161.26section352.04, subdivision 4 .
161.27EFFECTIVE DATE.This section is effective July 1, 2013.
161.28 Sec. 3. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:
161.29 Subd. 1c. Employer contributions. (a) In addition to member contributions,
161.30department heads shall pay a sum equal to the specified percentage of the salary upon which
161.31deductions were made, which constitutes the employer contribution to the fund as follows:
162.6(b) Department contributions must be paid out of money appropriated to departments
162.7for this purpose.
162.8EFFECTIVE DATE.This section is effective July 1, 2013.
162.9 Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:
162.10 Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is
162.11credited with three or more years of allowable service if first employed before July 1,2010
162.12 2013, or with at leastfive ten years of allowable service if first employed after June 30,
162.132010 2013, is entitled to separate from state service and upon becoming 50 years old, is
162.14entitled to receive a life annuity, upon separation from state service.
162.15(b) Members must apply for an annuity in a form and manner prescribed by the
162.16executive director.
162.17(c) No application may be made more than 90 days before the date the member is
162.18eligible to retire by reason of both age and service requirements.
162.19(d) An annuity begins to accrue no earlier than 180 days before the date the
162.20application is filed with the executive director.
162.21EFFECTIVE DATE.This section is effective July 1, 2013.
162.22 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
162.23 Subd. 2. Normal retirement annuity. (a) The annuity must be paid in monthly
162.24installments. The annuity shall be equal to the amount determined by multiplying
162.25the average monthly salary of the member by the percent specified in section356.315,
162.26subdivision 6 , for each year of allowable service and pro rata prorated for additional
162.27completed months of allowable service, unless restricted under paragraph (b).
162.28(b) Allowable service in excess of 33 years must not be used in computing the
162.29annuity. This restriction does not apply to any member who has at least 28 years of
162.30allowable service before July 1, 2013.
162.31(c) When the annuity commences, any member contributions attributable to
162.32allowable service not used to compute the annuity due to the restrictions in paragraph (b)
162.33must be refunded using procedures specified in section 352B.11, subdivision 1.
163.1EFFECTIVE DATE.This section is effective July 1, 2013.
163.2 Sec. 6. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:
163.3 Subd. 2a. Early retirement. Any member who has become at least 50 years old
163.4and who has at least three years of allowable service if first employed before July 1,
163.52010 2013, or who has at least five ten years of allowable service if first employed after
163.6June 30,2010 2013, is entitled upon application to a reduced retirement annuity equal
163.7to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for
163.8each month that the member is under age 55 at the time of retirement, iffirst employed
163.9 the effective date of retirement is before July 1,2010, or reduced by two-tenths of one
163.10percent 2015. If the effective date of retirement is after June 30, 2015, the reduction is
163.110.34 percent for each month that the member is under age 55 at the time of retirementif
163.12first employed after June 30, 2010.
163.13EFFECTIVE DATE.This section is effective July 1, 2013.
163.14 Sec. 7. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:
163.15 Subd. 5. Optional annuity. A disabilitant may elect, in lieu of spousal survivorship
163.16coverage under section352B.11 , subdivisions subdivision 2b and 2c, the normal disability
163.17benefit or an optional annuity as provided in section352B.08, subdivision 3 . The choice
163.18of an optional annuity must be made in writing, on a form prescribed by the executive
163.19director, and must be made before the commencement of the payment of the disability
163.20benefit, or within 90 days before reaching age 55 or before reaching the five-year
163.21anniversary of the effective date of the disability benefit, whichever is later. The optional
163.22annuity is effective on the date on which the disability benefit begins to accrue, or the
163.23month following the attainment of age 55 or following the five-year anniversary of the
163.24effective date of the disability benefit, whichever is later.
163.25 Sec. 8. Minnesota Statutes 2012, section 352B.11, subdivision 1, is amended to read:
163.26 Subdivision 1. Refund of payments. (a) A member who has not received other
163.27benefits under this chapter is entitled to a refund of payments made by salary deduction,
163.28plus interest, if the member is separated, either voluntarily or involuntarily, from the state
163.29service that entitled the member to membership.
163.30(b) A refund under section 352B.08, subdivision 2, paragraph (c), does not result in
163.31a forfeiture of salary credit for the allowable service credit covered by the refund.
163.32(b) (c) In the event of the member's death, if there are no survivor benefits payable
163.33under this chapter, a refund plus interest is payable to the last designated beneficiary on
164.1a form filed with the director before death, or if no designation is filed, is payable to
164.2the member's estate. Interest under this subdivision must be calculated as provided in
164.3section352.22, subdivision 2 . To receive a refund, the application must be made on a
164.4form prescribed by the executive director.
164.5EFFECTIVE DATE.This section is effective the day following final enactment.
164.6 Sec. 9. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:
164.7 Subd. 2b. Surviving spouse benefiteligibility. (a) If an active member with
164.8three or more years of allowable service if first employed before July 1,2010 2013, or
164.9with at least five years of allowable service if first employed after June 30,2010 2013,
164.10dies before attaining age 55, the surviving spouse is entitled tothe a benefit specified in
164.11subdivision 2c, paragraph (b) for life equal to 50 percent of the average monthly salary
164.12of the deceased member. On the first of the month next following the date on which the
164.13deceased member would have attained exact age 55, in lieu of continued receipt of the
164.14prior benefit, the surviving spouse is eligible to commence receipt of the second half of
164.15a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and
164.16survivor annuity must be computed assuming the exact age 55 for the deceased member
164.17and the age of the surviving spouse on the date of death.
164.18(b) If an active member with less than three years of allowable service if first
164.19employed before July 1,2010 2013, or with fewer than five years of allowable service if
164.20first employed after June 30,2010 2013, dies at any age, the surviving spouse is entitled to
164.21receivethe a benefit specified in subdivision 2c, paragraph (c) for life equal to 50 percent
164.22of the average monthly salary of the deceased member.
164.23(c) If an active member with three or more years of allowable service if first
164.24employed before July 1,2010 2013, or with at least five years of allowable service if first
164.25employed after June 30,2010 2013, dies on or after attaining exact age 55, the surviving
164.26spouse is entitled to receivethe benefits specified in subdivision 2c, paragraph (d) a benefit
164.27for life equal to 50 percent of the average monthly salary of the deceased member, or the
164.28second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and
164.29survivor annuity must be computed using the age of the deceased member on the date of
164.30death and the age of the surviving spouse on that same date.
164.31(d) If a disabilitant dies while receiving a disability benefit under section352B.10
164.32or before the benefit under that section commenced, and an optional annuity was not
164.33elected under section352B.10, subdivision 5 , the surviving spouse is entitled to receive
164.34the a benefit specified in subdivision 2c, paragraph (b) for life equal to 50 percent of the
164.35average monthly salary of the deceased member. On the first of the month next following
165.1the date on which the deceased member would have attained exact age 55, in lieu of
165.2continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt
165.3of the second half of a 100 percent joint and survivor annuity if this provides a larger
165.4benefit. The joint and survivor annuity must be computed assuming the exact age 55 for
165.5the deceased member and the age of the surviving spouse on the date of death.
165.6(e) If a former member with three or more years of allowable service if first employed
165.7before July 1,2010 2013, or with at least five years of allowable service if first employed
165.8after June 30,2010 2013, who terminated from service and has not received a refund or
165.9commenced receipt of any other benefit provided by this chapter, dies, the surviving
165.10spouse is entitled to receivethe as a benefit specified in subdivision 2c, paragraph (e) the
165.11second half of a 100 percent joint and survivor annuity, commencing on the first of the
165.12month next following the deceased member's date of death, or the first of the month next
165.13following the date on which the deceased member would have attained age 55, whichever
165.14is later. The joint and survivor annuity must be computed using the age of the deceased
165.15member on the date of death and the age of the surviving spouse on that same date.
165.16(f) If a former member with less than three years of allowable service if first
165.17employed before July 1,2010 2013, or with fewer than five years of allowable service if
165.18first employed after June 30,2010 2013, who terminated from service and has not received
165.19a refund or commenced receipt of any other benefit, if applicable, provided by this chapter,
165.20dies, the surviving spouseis entitled to receive the refund specified in subdivision 2c,
165.21paragraph (f) or, if none, the children or, if none, the deceased member's estate is entitled to
165.22a refund of the employee contributions plus interest computed as specified in subdivision 1.
165.23EFFECTIVE DATE.This section is effective July 1, 2013.
165.24 Sec. 10. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:
165.25 Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
165.26(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
165.27retirement plan are entitled to a postretirement adjustment annually on January 1, as
165.28follows:
165.29(1) a postretirement increase of1.5 one percent must be applied each year, effective
165.30on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
165.31who has been receiving an annuity or a benefit for at least 18 full months before the
165.32January 1 increase; and
165.33(2) for each annuitant or benefit recipient who has been receiving an annuity or a
165.34benefit for at least six full months, an annual postretirement increase of 1/12 of1.5 one
165.35percent for each month that the person has been receiving an annuity or benefit must be
166.1applied, effective January 1, following the calendar year in which the person has been
166.2retired for at least six months, but has been retired for less than 18 months.
166.3(b) The increases provided by this subdivision commence on January 1,2011
166.4 2014. Increases underthis subdivision paragraph (a) for the State Patrol retirement plan
166.5terminate on December 31 of the calendar year in which the actuarial valuation prepared
166.6by the approved actuary under sections356.214 and
356.215 and the standards for
166.7actuarial work promulgated by the Legislative Commission on Pensions and Retirement
166.8indicates that the market value of assets of the retirement plan equals or exceeds90
166.9 85 percent of the actuarial accrued liability of the retirement plan and increases under
166.10subdivision 1 paragraph (c) recommence after that date.
166.11(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
166.12Patrol retirement plan are entitled to a postretirement adjustment annually on January
166.131, as follows:
166.14(1) a postretirement increase of 1.5 percent must be applied each year, effective on
166.15January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
166.16has been receiving an annuity or a benefit for at least 18 full months before the January 1
166.17increase; and
166.18(2) for each annuitant or benefit recipient who has been receiving an annuity or a
166.19benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
166.20for each month that the person has been receiving an annuity or benefit must be applied,
166.21effective January 1, following the calendar year in which the person has been retired for at
166.22least six months, but has been retired for less than 18 months.
166.23(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
166.24December 31 of the calendar year in which the actuarial valuation prepared by the approved
166.25actuary under sections356.214 and
356.215 and the standards for actuarial work adopted by
166.26the Legislative Commission on Pensions and Retirement indicates that the market value of
166.27assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability
166.28of the retirement plan and increases under subdivision 1 recommence after that date.
166.29(c) (e) An increase in annuity or benefit payments under this subdivision must be
166.30made automatically unless written notice is filed by the annuitant or benefit recipient
166.31with the executive director of the applicable covered retirement plan requesting that the
166.32increase not be made.
166.33EFFECTIVE DATE.This section is effective July 1, 2013.
166.34 Sec. 11. REPEALER.
166.35Minnesota Statutes 2012, section 352B.11, subdivision 2c, is repealed.
167.1EFFECTIVE DATE.This section is effective July 1, 2013.
167.4 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
167.5 Subd. 10. Salary. (a) Subject to the limitations of section356.611 , "salary" means:
167.6 (1) the wages or periodic compensationof payable to a public employee, by the
167.7employing governmental subdivision before:
167.8 (i) employee retirement deductions that are designated as picked-up contributions
167.9under section 356.62;
167.10 (ii) any employee-elected deductions for deferred compensation, supplemental
167.11retirement plans, or other voluntary salary reduction programs, and also means "wages"
167.12and includes net income from fees that would have otherwise been available as a cash
167.13payment to the employee; and
167.14(iii) employee deductions for contributions to a supplemental plan or to a
167.15governmental trust established under section 356.24, subdivision 1, clause (7), to save for
167.16postretirement health care expenses, unless otherwise excluded under paragraph (b);
167.17 (2) for a public employee who is covered by a supplemental retirement plan under
167.18section356.24, subdivision 1 , clause (8), (9), or (10), which require all plan contributions
167.19be made by or (12), the employer, the contribution contributions to the applicable
167.20supplemental retirement plan when an agreement between the parties establishes that the
167.21contribution contributions will either result in a mandatory reduction of employees' wages
167.22through payroll withholdings, or be made in lieu of an amount that would otherwise be
167.23paid as wages;and
167.24 (3) for a public employee who has prior service covered by a local police or
167.25firefighters relief association that has consolidated with the Public Employees Retirement
167.26Association or to which section353.665 applies and who has elected coverage either
167.27under the public employees police and fire fund benefit plan under section353A.08
167.28following the consolidation or under section
353.665, subdivision 4 , the rate of salary
167.29upon which member contributions to the special fund of the relief association were made
167.30prior to the effective date of the consolidation as specified by law and by bylaw provisions
167.31governing the relief association on the date of the initiation of the consolidation procedure
167.32and the actual periodic compensation of the public employee after the effective date of
167.33consolidation.;
167.34(4) a payment from a public employer through a grievance proceeding, settlement,
167.35or court order that is attached to a specific earnings period in which the employee's regular
168.1salary was not earned or paid to the member due to a suspension or a period of involuntary
168.2termination that is not a wrongful discharge under section 356.50; provided the amount is
168.3not less than the equivalent of the average of the hourly base salary rate in effect during
168.4the last six months of allowable service prior to the suspension or period of involuntary
168.5termination, plus any applicable increases awarded during the period that would have been
168.6paid under a collective bargaining agreement or personnel policy but for the suspension
168.7or involuntary termination, multiplied by the average number of regular hours for which
168.8the employee was compensated during the six months of allowable service prior to the
168.9suspension or period of involuntary termination, but not to exceed the compensation that
168.10the public employee would have earned if regularly employed during the applicable period;
168.11(5) the amount paid to a member who is absent from employment by reason of
168.12personal, parental, or military leave of absence if equivalent to the hourly base salary
168.13rate in effect during the six months of allowable service, or portions thereof, prior to the
168.14leave, multiplied by the average number of regular hours for which the employee was
168.15compensated during the six months of allowable service prior to the applicable leave of
168.16absence;
168.17(6) the amount paid to a member who is absent from employment by reason of an
168.18authorized medical leave of absence if specified in advance to be at least one-half but
168.19no more than equal to the earnings the member received, on which contributions were
168.20reported and allowable service credited during the six months immediately preceding
168.21the medical leave of absence; and
168.22 (7) for a public employee who receives performance or merit bonus payment under
168.23a written compensation plan, policy, or collective bargaining agreement in addition
168.24to regular salary or in lieu of regular salary increases, the compensation paid to the
168.25employee for attaining or exceeding performance goals, duties, or measures during a
168.26specified period of employment.
168.27 (b) Salary does not mean:
168.28 (1)the fees paid to district court reporters,;
168.29 (2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum
168.30or periodic payments,;
168.31 (3) for the donor, payment to another person of the value of hours donated under a
168.32benevolent vacation, personal, or sick leave donation program;
168.33 (4) any form of severancepayments, or retirement incentive payments;
168.34 (5) an allowance payment or per diem payments for or reimbursement of expenses,;
168.35 (6) lump-sum settlements not attached to a specific earnings period, or;
169.1 (7) workers' compensation payments or disability insurance payments, including
169.2payments from employer self-insurance arrangements;
169.3(2) (8) employer-paid amounts used by an employee toward the cost of insurance
169.4coverage,employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
169.5care expense accounts, day care expenses, or any payments in lieu of any employer-paid
169.6group insurance coverage, including the difference between single and family rates that
169.7may be paid to a member with single coverage and certain amounts determined by the
169.8executive director to be ineligible;
169.9(9) employer-paid fringe benefits, including, but not limited to:
169.10(i) employer-paid premiums or supplemental contributions for employees for all
169.11types of insurance;
169.12(ii) membership dues or fees for the use of fitness or recreational facilities;
169.13(iii) incentive payments or cash awards relating to a wellness program;
169.14(iv) the value of any nonmonetary benefits;
169.15(v) any form of payment made in lieu of an employer-paid fringe benefit;
169.16(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
169.17annuity program; and
169.18(vii) any amount paid by the employer as a supplement to salary, either as a
169.19lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
169.20available to the employee as cash;
169.21(3) (10) the amount equal to that which the employing governmental subdivision
169.22would otherwise pay toward single or family insurance coverage for a covered employee
169.23when, through a contract or agreement with some but not all employees, the employer:
169.24 (i) discontinues, or for new hires does not provide, payment toward the cost of the
169.25employee's selected insurance coverages under a group plan offered by the employer;
169.26 (ii) makes the employee solely responsible for all contributions toward the cost of
169.27the employee's selected insurance coverages under a group plan offered by the employer,
169.28including any amount the employer makes toward other employees' selected insurance
169.29coverages under a group plan offered by the employer; and
169.30 (iii) provides increased salary rates for employees who do not have any
169.31employer-paid group insurance coverages;
169.32(4) (11) except as provided in section
353.86 or
353.87 , compensation of any
169.33kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
169.34in subdivision 35 or 36;
169.35(5) (12) the amount of compensation that exceeds the limitation provided in section
169.36356.611
; and
170.1(6) (13) amounts paid by a federal or state grant for which the grant specifically
170.2prohibits grant proceeds from being used to make pension plan contributions, unless the
170.3contributions to the plan are made from sources other than the federal or state grant.; and
170.4(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
170.5 (c) Amounts, other than those provided under paragraph (a), clause (4), provided to
170.6an employee by the employer through a grievance proceeding, a court order, or a legal
170.7settlement are salary only if the settlement or court order is reviewed by the executive
170.8director and the amounts are determined by the executive director to be consistent with
170.9paragraph (a) and prior determinations.
170.10EFFECTIVE DATE.This section is effective the day following final enactment.
170.14 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
170.15 Subd. 17a. Average salary. (a) "Average salary," for purposes of calculating a
170.16retirement annuity under section353.29, subdivision 3 , means an amount equivalent to
170.17the average of the highest salary of the member, police officer, or firefighter, whichever
170.18applies, upon which employee contributions were paid for any five successive years of
170.19allowable service, based on dates of salary periods as listed on salary deduction reports.
170.20"Average salary" includes the salary of the employee during the period of covered
170.21employment rendered after reaching the allowable service credit limit of section 353.651,
170.22subdivision 3, paragraph (b). Average salary must be based upon all allowable service if
170.23this service is less than five years.
170.24(b) "Average salary" may not include any reduced salary paid during a period
170.25in which the employee is entitled to benefit payments from workers' compensation for
170.26temporary disability, unless the average salary is higher, including this period.
170.27EFFECTIVE DATE.This section is effective the day following final enactment.
170.28 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:
170.29 Subd. 41. Duty disability. "Duty disability," physical or psychological, means a
170.30condition that is expected to prevent a member, for a period of not less than 12 months,
170.31from performing the normal duties of the position held by a person who is a member of the
170.32public employees police and fire retirement plan, and that is the direct result of an injury
170.33incurred during, or a disease arising out of, the performance ofnormal duties or the actual
170.34performance of less frequent inherently dangerous duties, either of which are specific to
171.1protecting the property and personal safety of others and that present inherent dangers that
171.2are specific to the positions covered by the public employees police and fire retirement plan.
171.3EFFECTIVE DATE.This section is effective the day following final enactment.
171.4 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:
171.5 Subd. 47. Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
171.6to an annuity or benefit from a retirement plan administered by the Public Employees
171.7Retirement Association by having credit for sufficient allowable service under paragraph
171.8(b)or, (c), or (d), whichever applies.
171.9(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
171.10member of the general employees retirement plan of the Public Employees Retirement
171.11Association:
171.12(1) a public employee who first became a member of the association before July
171.131, 2010, is 100 percent vested when the person has accrued credit for not less than three
171.14years of allowable service as defined under subdivision 16; and
171.15(2) a public employee who first becomes a member of the association after June 30,
171.162010, is 100 percent vested when the person has accrued credit for not less than five years
171.17of allowable service as defined under subdivision 16.
171.18(c) For purposes of qualifying for an annuity or benefit as a member of thepolice
171.19and fire plan or a member of the local government correctional employees retirement plan:
171.20(1) a public employee who first became a member of the association before July
171.211, 2010, is 100 percent vested when the person has accrued credit for not less than three
171.22years of allowable service as defined under subdivision 16; and
171.23(2) a public employee who first becomes a member of the association after June
171.2430, 2010, is vested at the following percentages when the person has accrued credited
171.25allowable service as defined under subdivision 16, as follows:
171.26(i) 50 percent after five years;
171.27(ii) 60 percent after six years;
171.28(iii) 70 percent after seven years;
171.29(iv) 80 percent after eight years;
171.30(v) 90 percent after nine years; and
171.31(vi) 100 percent after ten years.
171.32(d) For purposes of qualifying for an annuity or benefit as a member of the public
171.33employees police and fire retirement plan:
172.1(1) a public employee who first became a member of the association before July
172.21, 2010, is 100 percent vested when the person has accrued credit for not less than three
172.3years of allowable service as defined under subdivision 16;
172.4(2) a public employee who first becomes a member of the association after June 30,
172.52010, and before July 1, 2014, is vested at the following percentages when the person has
172.6accrued credited allowable service as defined under subdivision 16, as follows:
172.7(i) 50 percent after five years;
172.8(ii) 60 percent after six years;
172.9(iii) 70 percent after seven years;
172.10(iv) 80 percent after eight years;
172.11(v) 90 percent after nine years; and
172.12(vi) 100 percent after ten years; and
172.13(3) a public employee who first becomes a member of the association after June
172.1430, 2014, is vested at the following percentages when the person has accrued credited
172.15allowable service as defined under subdivision 16, as follows:
172.16(i) 50 percent after ten years;
172.17(ii) 55 percent after 11 years;
172.18(iii) 60 percent after 12 years;
172.19(iv) 65 percent after 13 years;
172.20(v) 70 percent after 14 years;
172.21(vi) 75 percent after 15 years;
172.22(vii) 80 percent after 16 years;
172.23(viii) 85 percent after 17 years;
172.24(ix) 90 percent after 18 years;
172.25(x) 95 percent after 19 years; and
172.26(xi) 100 percent after 20 or more years.
172.27 Sec. 4. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:
172.28 Subd. 4. Additional requirements; eligibility for police and fire or local
172.29government correctional service retirement plan disability benefits. (a) If an
172.30application for disability benefits is filed within two years of the date of the injury or the
172.31onset of the illness that gave rise to the disability application, the application must be
172.32supported by evidence that the applicant is unable to perform the duties of the position
172.33held by the applicant on the date of the injury or the onset of the illness causing the
172.34disability. The employer must provide evidence indicating whether the applicant is able or
172.35unable to perform the duties of the position held on the date of the injury or onset of the
173.1illness causing the disabilityand the specifications, a clear explanation of any duties that
173.2the individual can or cannot perform, and an explanation of why the employer may or may
173.3not authorize continued employment to the applicant in the current or other position.
173.4 (b) If an application for disability benefits is filed more than two years after the
173.5date of injury or the onset of an illness causing the disability, the application must be
173.6supported by evidence that the applicant is unable to perform themost recent duties that
173.7are were expected to be performed by the applicant during the 90 days before preceding
173.8thefiling of last day the application applicant performed services for the employer. The
173.9employer must provide evidence of the duties thatare were expected to be performed by
173.10the applicant during the 90 daysbefore preceding the filing of last day the application
173.11 applicant performed services, whether the applicant can or cannot perform those duties
173.12overall,and the specifications a clear explanation of any duties that the applicant can
173.13or cannot perform, and an explanation of why the employer may or may not authorize
173.14continued employment to the applicant in the current or other position.
173.15 (c) Any report supporting a claim to disability benefits under section353.656 or
173.16353E.06
must specifically relate the disability to its cause; and for any claim to duty
173.17disability from an injury or illness arising out of an act of duty, the report must state the
173.18specific act of duty giving rise to the claim, and relate the cause of disability to inherently
173.19dangerous duties specifictasks or functions required to be performed by the employee in
173.20fulfilling the employee's duty-related acts which must be specific to the inherent dangers of
173.21the positions eligible for membership in covered by the public employees police and fire
173.22fund plan and the local government correctional service retirement plan. Any report that
173.23does not relate the cause of disability to specificacts or functions inherently dangerous
173.24duties performed by the employee may not be relied upon as evidence to support eligibility
173.25for benefits and may be disregarded in the executive director's decision-making process.
173.26 (d) Any application for duty disability must be supported by a first report of injury as
173.27defined in section176.231 .
173.28 (e) If a member who has applied for and been approved for disability benefits before
173.29the termination of service does not terminate service or is not placed on an authorized
173.30leave of absence as certified by the governmental subdivision within 45 days following
173.31the date on which the application is approved, the application shall be canceled. If an
173.32approved application for disability benefits has been canceled, a subsequent application
173.33for disability benefits may not be filed on the basis of the same medical condition for a
173.34minimum of one year from the date on which the previous application was canceled.
173.35EFFECTIVE DATE.This section is effective the day following final enactment.
174.1 Sec. 5. Minnesota Statutes 2012, section 353.35, subdivision 1, is amended to read:
174.2 Subdivision 1. Refund rights. (a) Except as provided in paragraph (b), when any
174.3former member accepts a refund, all existing service credits and all rights and benefits to
174.4which the person was entitled prior to the acceptance of the refund must terminate.
174.5(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a
174.6forfeiture of salary credit for the allowable service credit covered by the refund.
174.7(c) The rights and benefits of a former member must not be restored until the person
174.8returns to active service and acquires at least six months of allowable service credit
174.9after taking the last refund and repays the refund or refunds taken and interest received
174.10under section353.34 , subdivisions 1 and 2, plus interest at an annual rate of 8.5 percent
174.11compounded annually. If the person elects to restore service credit in a particular fund
174.12from which the person has taken more than one refund, the person must repay all refunds
174.13to that fund. All refunds must be repaid within six months of the last date of termination
174.14of public service.
174.15EFFECTIVE DATE.This section is effective the day following final enactment.
174.16 Sec. 6. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:
174.17 Subd. 2. Employee contribution. (a) For members other than members who were
174.18active members of the former Minneapolis Firefighters Relief Association on December
174.1929, 2011, or for members other than members who were active members of the former
174.20Minneapolis Police Relief Association on December 29, 2011, the employee contribution
174.21is9.4 percent an amount equal to the following percentage of the total salary of the each
174.22memberin calendar year 2010 and is, as follows: 9.6 percent of the salary of the member
174.23in each before calendar year after 2010 2014; 10.2 percent in calendar year 2014; and 10.8
174.24percent in calendar year 2015 and thereafter.
174.25(b) For members who were active members of the former Minneapolis Firefighters
174.26Relief Association on December 29, 2011, the employee contribution is an amount
174.27equal to eight percent of the monthly unit value under section353.01, subdivision 10a ,
174.28multiplied by 80 and expressed as a biweekly amount for each member. The employee
174.29contribution made by a member with at least 25 years of service credit as an active
174.30member of the former Minneapolis Firefighters Relief Association must be deposited in
174.31the postretirement health care savings account established under section352.98 .
174.32(c) For members who were active members of the former Minneapolis Police Relief
174.33Association on December 29, 2011, the employee contribution is an amount equal to eight
174.34percent of the monthly unit value under section353.01, subdivision 10b , multiplied by 80
174.35and expressed as a biweekly amount for each member. The employee contribution made
175.1by a member with at least 25 years of service credit as an active member of the former
175.2Minneapolis Police Relief Association must be deposited in the postretirement health care
175.3savings account established under section352.98 .
175.4(d) Contributions under this section must be made by deduction from salary in
175.5the manner provided in subdivision 4. Where any portion of a member's salary is paid
175.6from other than public funds, the member's employee contribution is based on the total
175.7salary received from all sources.
175.8EFFECTIVE DATE.This section is effective the day following final enactment.
175.9 Sec. 7. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:
175.10 Subd. 3. Employer contribution. (a) With respect to members other than members
175.11who were active members of the former Minneapolis Firefighters Relief Association on
175.12December 29, 2011, or for members other than members who were active members of
175.13the former Minneapolis Police Relief Association on December 29, 2011, the employer
175.14contribution is14.1 percent an amount equal to the following percentage of the total salary
175.15ofthe each member in calendar year 2010 and is, as follows: 14.4 percent of the salary of
175.16the member in each before calendar year after 2010 2014; 15.3 percent in calendar year
175.172014; and 16.2 percent in calendar year 2015 and thereafter.
175.18(b) With respect to members who were active members of the former Minneapolis
175.19Firefighters Relief Association on December 29, 2011, the employer contribution is an
175.20amount equal to the amount of the member contributions under subdivision 2, paragraph
175.21(b).
175.22(c) With respect to members who were active members of the former Minneapolis
175.23Police Relief Association on December 29, 2011, the employer contribution is an amount
175.24equal to the amount of the member contributions under subdivision 2, paragraph (c).
175.25(d) Contributions under this subdivision must be made from funds available to the
175.26employing subdivision by the means and in the manner provided in section353.28 .
175.27EFFECTIVE DATE.This section is effective the day following final enactment.
175.28 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
175.29 Subd. 3. Retirement annuity formula. (a) The average salary as defined in
175.30section353.01, subdivision 17a , multiplied by the percent specified in section
356.315,
175.31subdivision 6 , per year multiplied by years of allowable service, multiplied by the
175.32applicable vesting percentage indicated in section 353.01, subdivision 47, determines the
175.33amount of the normal retirement annuity. If the member has earned allowable service
176.1for performing services other than those of a police officer or firefighter, the annuity
176.2representing that service must be computed under sections353.29 and
353.30 .
176.3(b) For a member first enrolled in the public employees police and fire retirement
176.4plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a,
176.5paragraph (a), includes salary for all years for which contributions have been reported to
176.6the public employees police and fire retirement plan, but allowable service included in
176.7the calculation is limited to 33 years and the normal retirement annuity must not exceed
176.899 percent of the average salary.
176.9(c) When the annuity begins for members of the public employees police and fire
176.10retirement plan enrolled after June 30, 2014, a prorated share of the contributions for
176.11allowable service exceeding 33 years must be refunded to the member. The prorated
176.12share of the contributions to be refunded is determined by multiplying the accumulated
176.13deductions paid by the member to the public employees police and fire retirement plan by
176.14a percentage determined using the number of months of service in excess of 396 as the
176.15numerator and the total number of months of allowable service on which contributions
176.16were reported as the denominator. Interest as defined in section 353.34, subdivision 2,
176.17is to be applied to the prorated share of contributions from the first of the 397th month
176.18of allowable service reported to the public employees police and fire retirement plan to
176.19the first of the month the annuity begins.
176.20EFFECTIVE DATE.This section is effective the day following final enactment.
176.21 Sec. 9. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:
176.22 Subd. 4. Early retirement. (a) A person who becomes a public employees police
176.23and fire retirement plan member after June 30, 2007, or a former member who is reinstated
176.24as a member of the plan after that date, who is at least 50 years of age andwho is at least
176.25partially vested under section353.01, subdivision 47 , upon the termination of public
176.26service before July 1, 2014, if the person is other than a county sheriff or after January 4,
176.272015, if the person is a county sheriff is entitled upon application to a retirement annuity
176.28equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one
176.29percent for each month that the member is under age 55 at the time of retirement.
176.30 (b) Upon the termination of public service before July 1, 2014, if the person is
176.31other than a county sheriff or upon the termination of public service before January 5,
176.322015, if the person is a county sheriff, any public employees police and fire retirement
176.33plan member who first became a member of the plan before July 1, 2007, and who is
176.34not specified in paragraph (a), upon attaining at least 50 years of age with at least three
176.35years of allowable service is entitled upon application to a retirement annuity equal to the
177.1normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for
177.2each month that the member is under age 55 at the time of retirement.
177.3(c) A person other than a county sheriff who is a member of the public employees
177.4police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a
177.5member of the public employees police and fire retirement plan on or after January 5,
177.62015, and who is at least 50 years old and is at least partially vested under section 353.01,
177.7subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a
177.8county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is
177.9entitled upon application to a retirement annuity equal to the normal annuity calculated
177.10under subdivision 3, reduced for each month the member is under age 55 at the time of
177.11retirement by applying a blended monthly rate that is equivalent to the sum of:
177.12(1) one-sixtieth of the annual rate of five percent, prorated for each month the
177.13person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever
177.14applies; and
177.15(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
177.16applies, for each month the person's benefit effective date is before July 1, 2019.
177.17(d) A person other than a county sheriff who is a member of the public employees
177.18police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member
177.19of the public employees police and fire retirement plan on or after January 5, 2015, and
177.20who is at least 50 years old and is at least partially vested under section 353.01, subdivision
177.2147, whose benefit effective date is after July 1, 2019, is entitled, upon application, to a
177.22retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by
177.23five percent annually, prorated for each month that the member is under age 55.
177.24EFFECTIVE DATE.This section is effective the day following final enactment.
177.25 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
177.26 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
177.27who has attained the age of at least 50 years and either who is vested under section
177.28353.01, subdivision 47
, or who has credit for at least 30 years of allowable service,
177.29regardless of age attained, dies before the annuity or disability benefit becomes payable,
177.30notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
177.31elect to receive a death while eligible survivor benefit.
177.32 (b) Notwithstanding the definition of surviving spouse in section353.01, subdivision
177.3320 , a former spouse of the member, if any, is entitled to a portion of the death while
177.34eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
177.35filed with the association. If there is no surviving spouse or child or children, a former
178.1spouse may be entitled to a lump-sum refund payment under section353.32, subdivision
178.21 , if provided for in a marriage dissolution decree but not a death while eligible survivor
178.3benefit despite the terms of a marriage dissolution decree filed with the association.
178.4 (c) The benefit may be elected instead of a refund with interest under section353.32,
178.5subdivision 1 , or surviving spouse benefits otherwise payable under subdivisions 1 and
178.62. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
178.7which the member could have qualified for on the date of death, computed as provided in
178.8sections 353.651,subdivisions 2 and subdivision 3, and
353.30, subdivision 3 .
178.9 (d) The surviving spouse may apply for the annuity at any time after the date
178.10on which the deceased employee would have attained the required age for retirement
178.11based on the employee's allowable service. Sections353.34, subdivision 3 , and
353.71,
178.12subdivision 2 , apply to a deferred annuity payable under this subdivision.
178.13 (e) No payment accrues beyond the end of the month in which entitlement to
178.14such annuity has terminated. An amount equal to the excess, if any, of the accumulated
178.15contributions which were credited to the account of the deceased employee over and
178.16above the total of the annuities paid and payable to the surviving spouse must be paid to
178.17the deceased member's last designated beneficiary or, if none, to the legal representative of
178.18the estate of such deceased member.
178.19 (f) Any member may request in writing, with the signed consent of the spouse, that
178.20this subdivision not apply and that payment be made only to the designated beneficiary, as
178.21otherwise provided by this chapter.
178.22 (g) For a member who is employed as a full-time firefighter by the Department of
178.23Military Affairs of the state of Minnesota, allowable service as a full-time state Military
178.24Affairs Department firefighter credited by the Minnesota State Retirement System may be
178.25used in meeting the minimum allowable service requirement of this subdivision.
178.26EFFECTIVE DATE.This section is effective the day following final enactment.
178.27 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:
178.28 Subd. 3a. Maximum and minimum family benefits. (a) The maximum monthly
178.29benefit per family must not exceed the following percentages of the member's average
178.30monthly salary as specified in subdivision 3:
178.31 (1) 80 percent, if the member's death was a line of duty death; or
178.32 (2) 70 percent, if the member's death was not a line of duty death or occurred while
178.33the member was receiving a disability benefit that accrued before July 1, 2007.
178.34 (b) The minimum monthly benefit per family, including the joint and survivor
178.35optional annuity under subdivision 2a, and section353.656, subdivision 1a , must not be
179.1less than the following percentage of the member's average monthly salary as specified in
179.2subdivision 3:
179.3 (1) 60 percent, if the death was a line of duty death; or
179.4 (2) 50 percent, if the death was not a line of duty death or occurred while the member
179.5was receiving a disability benefit that accrued before July 1, 2007.
179.6 (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the
179.7joint annuitant, surviving spouse, and dependent children, as applicable, must each be
179.8reducedto the amount necessary proportionately so that the total family benefit does
179.9not exceed the applicable maximum. The joint and survivor optional annuity, surviving
179.10spouse, or dependent children benefit, as applicable, must be restored, plus applicable
179.11postretirement adjustments under Minnesota Statutes 2008, section356.41 or section
179.12356.415
, as the dependent child or children become no longer dependent under section
179.13353.01, subdivision 15
, or in the event of the death of the joint and survivor annuity
179.14recipient or the surviving spouse.
179.15EFFECTIVE DATE.This section is effective the day following final enactment.
179.16 Sec. 12. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:
179.17 Subdivision 1. Duty disability. "Duty disability," physical or psychological, means
179.18a condition that is expected to prevent a member, for a period of not less than 12 months,
179.19from performing the normal duties of a local government correctional service employee as
179.20defined under section353E.02 and that is the direct result of an injury incurred during, or
179.21a disease arising out of, the performance ofnormal duties or the actual performance of
179.22less frequent inherently dangerous duties, either of which are specific to protecting the
179.23property and personal safety of others and that present inherent dangers that are specific to
179.24the positions covered by the local government correctional service retirement plan.
179.25EFFECTIVE DATE.This section is effective the day following final enactment.
179.26 Sec. 13. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
179.27 Subd. 1b. Annual postretirement adjustments; PERA; general employees
179.28retirement plan and local government correctional retirement plan. (a) Retirement
179.29annuity, disability benefit, or survivor benefit recipients of the general employees
179.30retirement plan of the Public Employees Retirement Association and the local government
179.31correctional service retirement plan are entitled to a postretirement adjustment annually
179.32on January 1, as follows:
180.1(1) forJanuary 1, 2011, and each successive January 1 until funding stability is
180.2restored for the applicable retirement plan, a postretirement increase of one percent must
180.3be applied each year, effective on January 1, to the monthly annuity or benefit amount of
180.4each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
180.512 full months as of the current June 30;
180.6(2) forJanuary 1, 2011, and each successive January 1 until funding stability is
180.7restored for the applicable retirement plan, for each annuitant or benefit recipient who has
180.8been receiving an annuity or a benefit for at least one full month, but less than 12 full
180.9months as of the current June 30, an annual postretirement increase of 1/12 of one percent
180.10for each month the person has been receiving an annuity or benefit must be applied;
180.11(3) for each January 1 following the restoration of funding stability for the applicable
180.12retirement plan, a postretirement increase of 2.5 percent must be applied each year,
180.13effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
180.14recipient who has been receiving an annuity or benefit for at least 12 full months as of
180.15the current June 30; and
180.16(4) for each January 1 following restoration of funding stability for the applicable
180.17retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
180.18a benefit for at least one full month, but less than 12 full months as of the current June
180.1930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
180.20has been receiving an annuity or benefit must be applied.
180.21(b) Funding stability is restored when the market value of assets of the applicable
180.22retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
180.23applicable plan in the two most recentprior consecutive actuarial valuation valuations
180.24prepared under section356.215 and the standards for actuarial work by the approved
180.25actuary retained by the Public Employees Retirement Association under section356.214 .
180.26(c)If, after applying the increase as provided for in paragraph (a), clauses (3)
180.27and (4), the market value of the applicable retirement plan is determined in the next
180.28subsequent actuarial valuation prepared under section
356.215 to be less than 90 percent
180.29of the actuarial accrued liability of any of the applicable Public Employees Retirement
180.30Association plans, After having met the definition of funding stability under paragraph
180.31(b), the increase provided in paragraph (a), clauses (1) and (2),are rather than an increase
180.32under subdivision 1, is again to be appliedas of the next successive January until funding
180.33stability is again restored. in a subsequent year or years if the market value of assets of
180.34the applicable plan equals or is less than:
180.35(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
180.36consecutive actuarial valuations; or
181.1(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
181.2recent actuarial valuation.
181.3(d) An increase in annuity or benefit payments under this section must be made
181.4automatically unless written notice is filed by the annuitant or benefit recipient with the
181.5executive director of the Public Employees Retirement Association requesting that the
181.6increase not be made.
181.7(e) The retirement annuity payable to a person who retires before becoming eligible
181.8for Social Security benefits and who has elected the optional payment, as provided in
181.9section353.29, subdivision 6 , must be treated as the sum of a period-certain retirement
181.10annuity and a life retirement annuity for the purposes of any postretirement adjustment.
181.11The period-certain retirement annuity plus the life retirement annuity must be the
181.12annuity amount payable until age 62 for section353.29, subdivision 6 . A postretirement
181.13adjustment granted on the period-certain retirement annuity must terminate when the
181.14period-certain retirement annuity terminates.
181.15EFFECTIVE DATE.This section is effective the day following final enactment.
181.16 Sec. 14. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:
181.17 Subd. 1c. Annual postretirement adjustments; PERA-police and fire. (a)
181.18Retirement annuity, disability benefit, or survivor benefit recipients of the public
181.19employees police and fire retirement plan are entitled to a postretirement adjustment
181.20annually on January 1, until funding stability is restored, as follows:
181.21(1) forJanuary 1, 2011, and for January 1, 2012, for each annuitant or benefit
181.22recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
181.23been receiving the annuity or benefit for at least 12 full months as of the immediate
181.24preceding June 30, an amount equal to one percent in each year; or
181.25(2) forJanuary 1, 2011, and for January 1, 2012, for each annuitant or benefit
181.26recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
181.27been receiving the annuity or benefit for at least one full month, but not less than 11
181.28months, as of the immediate preceding June 30, an amount equal to 1/12 of one percentin
181.29each year for each month of annuity or benefit receipt; and
181.30(3) forJanuary 1, 2013, and each successive January 1 that follows the loss of
181.31funding stability as defined under paragraph (b) until funding stability as defined under
181.32paragraph (b) is again restored, for each annuitant or benefit recipient whose annuity
181.33or benefit effective date is after June 1, 2014, whohas will have been receiving the an
181.34annuity or benefit for at least12 36 full months as of the immediate preceding June 30,
181.35an amount equal tothe percentage increase in the Consumer Price Index for urban wage
182.1earners and clerical workers all items index published by the Bureau of Labor Statistics of
182.2the United States Department of Labor between the immediate preceding June 30 and the
182.3June 30 occurring 12 months previous, but not to exceed 1.5 one percent; or
182.4(4) forJanuary 1, 2013, and each successive January 1 that follows the loss of funding
182.5stability as defined under paragraph (b) until funding stability as defined under paragraph
182.6(b) is again restored, for each annuitant or benefit recipient whose annuity or benefit
182.7effective date is after June 1, 2014, who has been receiving the annuity or benefit for at
182.8leastone 25 full month months, but less than 36 months as of the immediate preceding June
182.930, an amount equal to 1/12 ofthe percentage increase in the Consumer Price Index for
182.10urban wage earners and clerical workers all items index published by the Bureau of Labor
182.11Statistics of the United States Department of Labor between the immediate preceding June
182.1230 and the June 30 occurring 12 months previous for each full month of annuity or benefit
182.13receipt, but not to exceed 1/12 of 1.5 one percent for each full month of annuity or benefit
182.14receipt; during the fiscal year in which the annuity or benefit was effective.
182.15(5) for (b) Retirement annuity, disability benefit, or survivor benefit recipients of
182.16the public employees police and fire retirement plan are entitled to a postretirement
182.17adjustment annually on each January 1 following the restoration of funding stability as
182.18defined under paragraph(b) (c) and during the continuation of funding stability as defined
182.19under paragraph(b) (c), as follows:
182.20(1) for each annuitant or benefit recipient who has been receiving the annuity or
182.21benefit for at least12 36 full months as of the immediate preceding June 30, an amount
182.22equal to the percentage increase in the Consumer Price Index for urban wage earners and
182.23clerical workers all items index published by the Bureau of Labor Statistics of the United
182.24States Department of Labor between the immediate preceding June 30 and the June 30
182.25occurring 12 months previous, but not to exceed 2.5 percent; and
182.26(6) for each January 1 following the restoration of funding stability as defined under
182.27paragraph (b) and during the continuation of funding stability as defined under paragraph
182.28(b), (2) for each annuitant or benefit recipient who has been receiving the annuity or benefit
182.29for at leastone 25 full month months, but less than 36 full months, as of the immediate
182.30preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
182.31Price Index for urban wage earners and clerical workers all items index published by
182.32the Bureau of Labor Statistics of the United States Department of Labor between the
182.33immediate preceding June 30 and the June 30 occurring 12 months previous for each full
182.34month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
182.35was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or
182.36benefit receipt during the fiscal year in which the annuity or benefit was effective.
183.1(b) (c) Funding stability is restored when the market value of assets of the public
183.2employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
183.3accrued liabilities of the applicable plan in the two most recentprior consecutive actuarial
183.4valuation valuations prepared under section
356.215 and under the standards for actuarial
183.5work of the Legislative Commission on Pensions and Retirement by the approved actuary
183.6retained by the Public Employees Retirement Association under section356.214 .
183.7(d) After having met the definition of funding stability under paragraph (c), a full
183.8or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever
183.9applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
183.10or years if the market value of assets of the public employees police and fire retirement
183.11plan equals or is less than:
183.12(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
183.13consecutive actuarial valuations; or
183.14(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
183.15recent actuarial valuation.
183.16(c) (e) An increase in annuity or benefit payments under this section must be made
183.17automatically unless written notice is filed by the annuitant or benefit recipient with the
183.18executive director of the Public Employees Retirement Association requesting that the
183.19increase not be made.
183.20EFFECTIVE DATE.This section is effective the day following final enactment.
183.24 Section 1. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
183.25 Subd. 6. Computation of formula program retirement annuity. (a) The formula
183.26retirement annuity must be computed in accordance with the applicable provisions of the
183.27formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
183.28section354.05, subdivision 13a , for the period of the member's formula service credit.
183.29 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
183.30became a member of the association or a member of a pension fund listed in section
183.31356.30, subdivision 3
, before July 1, 1989, unless paragraph (d), in conjunction with
183.32paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
183.33average salary as defined in section354.05, subdivision 13a , multiplied by the following
183.34percentages per year of formula service credit shall determine the amount of the annuity to
183.35which the member qualifying therefor is entitled for service rendered before July 1, 2006:
184.8 For service rendered on or after July 1, 2006, the average salary as defined in section
184.9354.05
, subdivision 13a, multiplied by the following percentages per year of service credit,
184.10determines the amount the annuity to which the member qualifying therefor is entitled:
184.18 (c)(i) This paragraph applies only to a person who first became a member of the
184.19association or a member of a pension fund listed in section356.30, subdivision 3 , before
184.20July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
184.21conjunction with this paragraph than when calculated under paragraph (d), in conjunction
184.22with paragraph (e).
184.23 (ii) Where any member retires prior to normal retirement age under a formula
184.24annuity, the member shall be paid a retirement annuity in an amount equal to the normal
184.25annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
184.26that the member is under normal retirement age at the time of retirement except that for
184.27any member who has 30 or more years of allowable service credit, the reduction shall be
184.28applied only for each month that the member is under age 62.
184.29 (iii) Any member whose attained age plus credited allowable service totals 90 years
184.30is entitled, upon application, to a retirement annuity in an amount equal to the normal
184.31annuity provided in paragraph (b), without any reduction by reason of early retirement.
184.32 (d) This paragraph applies to a member who has become at least 55 years old and
184.33first became a member of the association after June 30, 1989, and to any other member
184.34who has become at least 55 years old and whose annuity amount when calculated under
184.35this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
184.36under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
184.37salary, as defined in section354.05, subdivision 13a , multiplied by the percent specified
184.38by section356.315, subdivision 4 , for each year of service for a basic member shall
184.39determine the amount of the retirement annuity to which the basic member is entitled.
185.1The annuity of a basic member who was a member of the former Minneapolis Teachers
185.2Retirement Fund Association as of June 30, 2006, must be determined according to the
185.3annuity formula under the articles of incorporation of the former Minneapolis Teachers
185.4Retirement Fund Association in effect as of that date. For a coordinated member, the
185.5average salary, as defined in section354.05 , subdivision 13a, multiplied by the percent
185.6specified in section356.315 , subdivision 2, for each year of service rendered before July
185.71, 2006, and by the percent specified in section356.315 , subdivision 2b, for each year of
185.8service rendered on or after July 1, 2006, determines the amount of the retirement annuity
185.9to which the coordinated member is entitled.
185.10 (e) This paragraph applies to a person who has become at least 55 years old and first
185.11becomes a member of the association after June 30, 1989, and to any other member who
185.12has become at least 55 years old and whose annuity is higher when calculated under
185.13paragraph (d) in conjunction with this paragraph than when calculated under paragraph
185.14(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
185.15before the normal retirement age shall be paid the normal annuity provided in paragraph
185.16(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
185.17would be payable to the employee if the employee deferred receipt of the annuity and the
185.18annuity amount were augmented at an annual rate of three percent compounded annually
185.19from the day the annuity begins to accrue until the normal retirement age if the employee
185.20became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
185.21employee becomes an employee after June 30, 2006. Except in regards to section 354.46,
185.22this paragraph remains in effect until June 30, 2015.
185.23(f) After June 30, 2020, this paragraph applies to a person who has become at least
185.2455 years old and first becomes a member of the association after June 30, 1989, and to any
185.25other member who has become at least 55 years old and whose annuity is higher when
185.26calculated under paragraph (d) in conjunction with this paragraph than when calculated
185.27under paragraph (b), in conjunction with paragraph (c). An employee who retires under
185.28the formula annuity before the normal retirement age is entitled to receive the normal
185.29annuity provided in paragraph (d). For a person who is at least age 62 or older and has at
185.30least 30 years of service, the annuity must be reduced by an early reduction factor of six
185.31percent per year of the annuity that would be payable to the employee if the employee
185.32deferred receipt of the annuity and the annuity amount were augmented at an annual rate
185.33of three percent compounded annually from the day the annuity begins to accrue until the
185.34normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
185.35percent compounded annually if the employee became an employee after June 30, 2006.
185.36For a person who is not at least age 62 or older and does not have at least 30 years of
186.1service, the annuity would be reduced by an early reduction factor of four percent per year
186.2for ages 55 through 59 and seven percent per year of the annuity that would be payable
186.3to the employee if the employee deferred receipt of the annuity and the annuity amount
186.4were augmented at an annual rate of three percent compounded annually from the day
186.5the annuity begins to accrue until the normal retirement age if the employee became an
186.6employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
186.7became an employee after June 30, 2006.
186.8(g) After June 30, 2015, and before July 1, 2020, for a person who would have
186.9a reduced retirement annuity under either paragraph (e) or (f) if they were applicable,
186.10the employee is entitled to receive a reduced annuity which must be calculated using
186.11a blended reduction factor augmented monthly by 1/60 of the difference between the
186.12reduction required under paragraph (e) and the reduction required under paragraph (f).
186.13(f) (h) No retirement annuity is payable to a former employee with a salary that
186.14exceeds 95 percent of the governor's salary unless and until the salary figures used in
186.15computing the highest five successive years average salary under paragraph (a) have been
186.16audited by the Teachers Retirement Association and determined by the executive director
186.17to comply with the requirements and limitations of section354.05 , subdivisions 35 and 35a.
186.18EFFECTIVE DATE.This section is effective July 1, 2013.
186.22 Section 1. [354.436] DIRECT STATE AID ON BEHALF OF THE FORMER
186.23MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.
186.24 Subdivision 1. Aid authorization. The state shall pay $12,954,000 to the Teachers
186.25Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
186.26Association.
186.27 Subd. 2. Aid appropriation. The commissioner of management and budget shall
186.28pay the aid annually on October 1. The amount required is appropriated annually from the
186.29general fund to the commissioner of management and budget.
186.30 Subd. 3. Aid expiration. The aid specified in this section terminates and this
186.31section expires when the current assets of the Teachers Retirement Association fund equal
186.32or exceed the actuarial accrued liabilities of the fund as determined in the most recent
186.33actuarial valuation report for the Teachers Retirement Association fund by the actuary
186.34retained under section 356.214, or on the established date for full funding under section
186.35356.215, subdivision 11, whichever occurs earlier.
187.1EFFECTIVE DATE.This section is effective the day following final enactment.
187.2 Sec. 2. Minnesota Statutes 2012, section 354A.011, subdivision 21, is amended to read:
187.3 Subd. 21. Retirement. (a) "Retirement" means the time after the date of cessation
187.4of active teaching service by a teacher who isthereafter then entitled to an accrued
187.5retirement annuitycommencing beginning as designated by the board of trustees and
187.6payablepursuant to an upon filing a valid application for an annuity filed with the board.
187.7The applicable provisions of law, articles of incorporation and bylaws in effect on the date
187.8of cessation of active teaching service thereafter determine the rights of the person.
187.9(b) For members of the St. Paul Teachers Retirement Fund Association, a right to
187.10a retirement annuity requires a complete and continuous separation for 90 days from
187.11employment in any form with Independent School District No. 625, including service
187.12provided to the school district as an independent contractor or as an employee of an
187.13independent contractor.
187.14EFFECTIVE DATE.This section is effective the day following final enactment.
187.15 Sec. 3. Minnesota Statutes 2012, section 354A.12, subdivision 1, is amended to read:
187.16 Subdivision 1. Employee contributions. (a) The contribution required to be paid
187.17by each member of a teachers retirement fund association is the percentage of total salary
187.18specified below for the applicable association and program:
188.4(b) Contributions shall be made by deduction from salary and must be remitted
188.5directly to the respective teachers retirement fund association at least once each month.
188.6(c) When an employee contribution rate changes for a fiscal year, the new
188.7contribution rate is effective for the entire salary paid by the employer with the first
188.8payroll cycle reported.
188.9EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
188.10Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
188.11Teachers Retirement Fund Association on the day following final enactment.
188.12 Sec. 4. Minnesota Statutes 2012, section 354A.12, subdivision 2a, is amended to read:
188.13 Subd. 2a. Employer regular and additional contributions. (a) The employing
188.14units shall make the following employer contributions to teachers retirement fund
188.15associations:
188.16(1) for any coordinated member of one of the following teachers retirement fund
188.17associations in a city of the first class, the employing unit shall make a regular employer
188.18contribution to the respective retirement fund association in an amount equal to the
188.19designated percentage of the salary of the coordinated member as provided below:
188.33(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
188.34employing unit shall make a regular employer contribution to the respective retirement
188.35fund in an amount according to the schedule below:
189.9(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
189.10employing unit shall make an additional employer contribution to the respective fund in
189.11an amount equal to 3.64 percent of the salary of the basic member;
189.12(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
189.13the employing unit shall make an additional employer contribution to the respective fund
189.14in an amount equal to the applicable percentage of the coordinated member's salary,
189.15as provided below:
189.17(b) The regular and additional employer contributions must be remitted directly to
189.18the respective teachers retirement fund association at least once each month. Delinquent
189.19amounts are payable with interest under the procedure in subdivision 1a.
189.20(c) Payments of regular and additional employer contributions for school district
189.21or technical college employees who are paid from normal operating funds must be made
189.22from the appropriate fund of the district or technical college.
189.23(d) When an employer contribution rate changes for a fiscal year, the new
189.24contribution rate is effective for the entire salary paid by the employer with the first
189.25payroll cycle reported.
189.26EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
189.27Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
189.28Teachers Retirement Fund Association on the day following final enactment.
189.29 Sec. 5. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
189.30to read:
189.31 Subd. 2c. Duluth Teachers Retirement Fund Association; employer
189.32contributions for reemployed annuitants. The school district shall make the regular
189.33employer contributions and additional employer contributions specified in subdivision 2a
189.34on behalf of any retired member of the Duluth Teachers Retirement Fund Association who
190.1is reemployed by Independent School District No. 709, including providing service to the
190.2school district as an independent contractor or as an employee of an independent contractor.
190.3EFFECTIVE DATE.This section is effective July 1, 2013.
190.4 Sec. 6. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
190.5to read:
190.6 Subd. 2d. St. Paul Teachers Retirement Fund Association; employer
190.7contributions for reemployed annuitants. Independent School District No. 625 shall
190.8make the regular employer contribution and additional employer contribution specified in
190.9subdivision 2a, plus a supplemental contribution equal to 2.5 percent of salary, on behalf
190.10of any retired member of the St. Paul Teachers Retirement Fund Association who is
190.11reemployed by Independent School District No. 625, including providing service to the
190.12school district as an independent contractor or as an employee of an independent contractor.
190.13EFFECTIVE DATE.This section is effective the day following final enactment.
190.14 Sec. 7. Minnesota Statutes 2012, section 354A.12, subdivision 3a, is amended to read:
190.15 Subd. 3a. Special direct state aid to first class city teachers retirement
190.16fund associations. (a) The state shall pay $346,000 as special direct state aid to the
190.17Duluth Teachers Retirement Fund Association, and $2,827,000 to the St. Paul Teachers
190.18Retirement Fund Associationand, for the former Minneapolis Teachers Retirement Fund
190.19Association, $12,954,000 to the Teachers Retirement Association.
190.20 (b) Thedirect state aids under this subdivision are payable October 1 annually. The
190.21commissioner of management and budget shall pay thedirect state aid aids specified in
190.22this subdivision. Theamount amounts required under this subdivision is are appropriated
190.23annually from the general fund to the commissioner of management and budget.
190.24EFFECTIVE DATE.This section is effective the day following final enactment.
190.25 Sec. 8. Minnesota Statutes 2012, section 354A.12, subdivision 3c, is amended to read:
190.26 Subd. 3c. Termination of supplemental contributions and direct matching
190.27and state aid. (a) The supplemental contributions payable to the St. Paul Teachers
190.28Retirement Fund Association by Independent School District No. 625 under section
190.29423A.02, subdivision 3
, or the direct and all forms of state aid under subdivision 3a to the
190.30St. Paul Teachers Retirement Fund Association must continue until the current assets of
190.31the fund equal or exceed the actuarial accrued liability of the fund as determined in the
191.1most recent actuarial report for the fund by the actuary retained under section356.214 or
191.2until June 30, 2037, whichever occurs earlier.
191.3(b) The aid to the Duluth Teachers Retirement Fund Association under section
191.4423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth
191.5Teachers Retirement Fund Association must continue until the current assets of the fund
191.6equal or exceed the actuarial accrued liability of the fund as determined in the most
191.7recent actuarial report for the fund by the actuary retained under section356.214 or until
191.8the established date for full funding under section 356.215, subdivision 11, whichever
191.9occurs earlier.
191.10EFFECTIVE DATE.This section is effective the day following final enactment.
191.11 Sec. 9. Minnesota Statutes 2012, section 354A.12, subdivision 7, is amended to read:
191.12 Subd. 7. Recovery of benefit overpayments. (a) If the executive director discovers,
191.13within the time period specified in subdivision 8 following the payment of a refund or
191.14the accrual date of any retirement annuity, survivor benefit, or disability benefit, that
191.15benefit overpayment has occurred due to using invalid service or salary, or due to any
191.16erroneous calculation procedure, the executive director must recalculate the annuity or
191.17benefit payable and recover any overpayment. The executive director shall recover the
191.18overpayment by requiring direct repayment or by suspending or reducing the payment of a
191.19retirement annuity or other benefit payable under this chapter to the applicable person or
191.20the person's estate, whichever applies, until all outstanding amounts have been recovered.
191.21 If a benefit overpayment or improper payment of benefits occurred caused by a failure
191.22of the person to satisfy length of separation requirements for retirement under section
191.23354A.011, subdivision 21, the executive director shall recover the improper payments by
191.24requiring direct repayment. The repayment must include interest at the rate of 0.71 percent
191.25per month from the first of the month in which a monthly benefit amount was paid to the
191.26first of the month in which the amount is repaid, with annual compounding.
191.27(b) In the event the executive director determines that an overpaid annuity or benefit
191.28that is the result of invalid salary included in the average salary used to calculate the
191.29payment amount must be recovered, the executive director must determine the amount of
191.30the employee deductions taken in error on the invalid salary, with interest as determined
191.31under354A.37, subdivision 3 , and must subtract that amount from the total annuity or
191.32benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if
191.33any, must be recovered.
192.1(c) If the invalid employee deductions plus interest exceed the amount of the
192.2overpaid benefits, the balance must be refunded to the person to whom the benefit or
192.3annuity is being paid.
192.4(d) Any invalid employer contributions reported on the invalid salary must be
192.5credited against future contributions payable by the employer.
192.6(e) If a member or former member, who is receiving a retirement annuity or
192.7disability benefit for which an overpayment is being recovered, dies before recovery of the
192.8overpayment is completed and an optional annuity or refund is payable, the remaining
192.9balance of the overpaid annuity or benefit must continue to be recovered from the payment
192.10to the optional annuity beneficiary or refund recipient.
192.11(f) The board of trustees shall adopt policies directing the period of time and manner
192.12for the collection of any overpaid retirement or optional annuity, and survivor or disability
192.13benefit, or a refund that the executive director determines must be recovered as provided
192.14under this section.
192.15EFFECTIVE DATE.This section is effective the day following final enactment.
192.16 Sec. 10. Minnesota Statutes 2012, section 354A.27, is amended by adding a
192.17subdivision to read:
192.18 Subd. 6a. Postretirement adjustment transition. (a) If the funded ratio of the
192.19retirement plan based on the actuarial value of assets is at least 90 percent as reported
192.20in the most recent actuarial valuation prepared under sections 356.214 and 356.215,
192.21this subdivision expires and subsequent postretirement adjustments are governed by
192.22subdivision 7.
192.23(b) Each annuity or benefit recipient of the retirement plan who has been receiving
192.24that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to
192.25receive a postretirement adjustment of one percent, payable on January 1.
192.26EFFECTIVE DATE.This section is effective July 1, 2013, and applies to the
192.27January 1, 2014, postretirement increase.
192.28 Sec. 11. Minnesota Statutes 2012, section 354A.27, subdivision 7, is amended to read:
192.29 Subd. 7. Calculation of postretirement adjustments. (a) This subdivision applies
192.30if subdivision6 6a has expired.
192.31(b) A percentage adjustment must be computed and paid under this subdivision to
192.32eligible persons under subdivision 5. This adjustment is determined by reference to the
192.33Consumer Price Index for urban wage earners and clerical workers all items index as
193.1reported by the Bureau of Labor Statistics within the United States Department of Labor
193.2each year as part of the determination of annual cost-of-living adjustments to recipients
193.3of federal old-age, survivors, and disability insurance. For calculations of cost-of-living
193.4adjustments under paragraph (c), the term "average third quarter Consumer Price Index
193.5value" means the sum of the monthly index values as initially reported by the Bureau of
193.6Labor Statistics for the months of July, August, and September, divided by 3.
193.7(c) Before January 1 of each year, the executive director must calculate the amount
193.8of the cost-of-living adjustment by dividing the most recent average third quarter index
193.9value by the same average third quarter index value from the previous year, subtract one
193.10from the resulting quotient, and express the result as a percentage amount, which must be
193.11rounded to the nearest one-tenth of one percent.
193.12(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment
193.13to be applied as a permanent increase to the regular payment of each eligible member
193.14on January 1 of the next calendar year. For any eligible member whose effective date
193.15of benefit commencement occurred during the calendar year before the cost-of-living
193.16adjustment is applied, the full increase amount must be prorated on the basis of whole
193.17calendar quarters in benefit payment status in the calendar year prior to the January 1 on
193.18which the cost-of-living adjustment is applied, calculated to the third decimal place.
193.19(e) The adjustment must not be less than zero nor greater than five percent.
193.20(f) If the funding ratio of the plan as determined in the most recent actuarial
193.21valuation using the actuarial value of assets is less than 80 percent there will be no
193.22postretirement adjustment the following January 1.
193.23EFFECTIVE DATE.This section is effective July 1, 2013.
193.24 Sec. 12. Minnesota Statutes 2012, section 354A.31, subdivision 3, is amended to read:
193.25 Subd. 3. Resumption of teaching after commencement of a retirement annuity.
193.26 (a) Any person who retired and is receiving a coordinated program retirement annuity
193.27under the provisions of sections354A.31 to
354A.41 or any person receiving a basic
193.28program retirement annuity under the governing sections in the articles of incorporation
193.29or bylaws and who has resumed teaching service for the school district in which the
193.30teachers retirement fund association exists is entitled to continue to receive retirement
193.31annuity payments, except that all or a portion of the annuity payments must be deferred
193.32during the calendar year immediately following the calendar year in which the person's
193.33salary from the teaching service is in an amount greater than $46,000. The amount of the
193.34annuity deferral is one-third the salary amount in excess of $46,000 and must be deducted
194.1from the annuity payable for the calendar year immediately following the calendar year
194.2in which the excess amount was earned.
194.3 (b) If the person is retired for only a fractional part of the calendar year during the
194.4initial year of retirement, the maximum reemployment salary exempt from triggering a
194.5deferral as specified in this subdivision must be prorated for that calendar year.
194.6 (c) After a person has reached the Social Security normal retirement age, no deferral
194.7requirement is applicable regardless of the amount of any compensation received for
194.8teaching service for the school district in which the teachers retirement fund association
194.9exists.
194.10 (d) The amount of the retirement annuity deferral must be handled or disposed
194.11of as provided in section356.47 .
194.12(e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth
194.13Teachers Retirement Fund Association member whose effective date of retirement is after
194.14June 30, 2013, amounts specified as deferred under this subdivision must instead be
194.15forfeited to the Duluth Teachers Retirement Fund Association fund.
194.16(f) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul
194.17Teachers Retirement Fund Association basic or coordinated program member whose
194.18effective date of retirement is after June 30, 2013, amounts specified as deferred under
194.19this subdivision must instead be forfeited to the St. Paul Teachers Retirement Fund
194.20Association fund.
194.21(e) (g) For the purpose of this subdivision, salary from teaching service includes: (i)
194.22all income for services performed as a consultant or independent contractor; or income
194.23resulting from working with the school district in any capacity; and (ii) the greater of either
194.24the income received or an amount based on the rate paid with respect to an administrative
194.25position, consultant, or independent contractor in the school district in which the teachers
194.26retirement fund association exists and at the same level as the position occupied by the
194.27person who resumes teaching service.
194.28(f) (h) On or before February 15 of each year, each applicable employing unit
194.29shall report to the teachers retirement fund association the amount of postretirement
194.30salary as defined in this subdivision, earned as a teacher, consultant, or independent
194.31contractor during the previous calendar year by each retiree of the teachers retirement
194.32fund association for teaching service performed after retirement. The report must be in
194.33a format approved by the executive secretary or director.
194.34EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
194.35Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
194.36Teachers Retirement Fund Association the day following final enactment.
195.1 Sec. 13. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
195.2 Subd. 4. Computation of normal coordinated retirement annuity; St. Paul
195.3fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
195.4Retirement Fund Association.
195.5(b) The normal coordinated retirement annuity is an amount equal to a retiring
195.6coordinated member's average salary under section354A.011, subdivision 7a , multiplied
195.7by the retirement annuity formula percentage.
195.8(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
195.9became a member or a member in a pension fund listed in section356.30, subdivision 3 ,
195.10before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces
195.11a higher annuity amount, in which case paragraph (d) will apply. For service rendered
195.12before July 1, 2015, the retirement annuity formula percentage for purposes of this
195.13paragraph is the percent specified in section356.315, subdivision 1 , per year for each year
195.14of coordinated service for the first ten years and the percent specified in section356.315,
195.15subdivision 2 , for each year of coordinated service thereafter. For service rendered after
195.16June 30, 2015, the retirement annuity formula percentage for purposes of this paragraph
195.17is the percent specified in section356.315, subdivision 1a , per year for each year of
195.18coordinated service for the first ten years and the percent specified in section356.315,
195.19subdivision 2b , for each year of coordinated service thereafter.
195.20(d) This paragraph applies to a person who has become at least 55 years old and who
195.21first becomes a member after June 30, 1989, and to any other member who has become
195.22at least 55 years old and whose annuity amount, when calculated under this paragraph
195.23and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
195.24(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
195.25percentage for purposes of this paragraph is the percent specified in section356.315,
195.26subdivision 2 , for each year of coordinated service rendered before July 1, 2015, and
195.27the percent specified in section 356.215, subdivision 2b, for each year of coordinated
195.28service thereafter.
195.29EFFECTIVE DATE.This section is effective July 1, 2014.
195.30 Sec. 14. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
195.31 Subd. 4a. Computation of normal coordinated retirement annuity; Duluth
195.32fund. (a) This subdivision applies to the new law coordinated program of the Duluth
195.33Teachers Retirement Fund Association.
196.1(b) The normal coordinated retirement annuity is an amount equal to a retiring
196.2coordinated member's average salary under section354A.011, subdivision 7a , multiplied
196.3by the retirement annuity formula percentage.
196.4(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
196.5became a member or a member in a pension fund listed in section356.30, subdivision 3 ,
196.6before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
196.7higher annuity amount, in which case paragraph (d) applies. The retirement annuity
196.8formula percentage for purposes of this paragraph is the percent specified in section
196.9356.315, subdivision 1
, per year for each year of coordinated program service for the first
196.10ten years rendered through June 30, 2013, and the percent specified in section 356.315,
196.11subdivision 1a, per year for each year of coordinated program service rendered after June
196.1230, 2013, and the percent specified in section356.315, subdivision 2 , for each subsequent
196.13year of coordinated program service through June 30, 2013, and the percent specified in
196.14section 356.315, subdivision 2b, per year for each year of coordinated program service
196.15rendered after June 30, 2013.
196.16(d) This paragraph applies to a person who is at least 55 years old and who first
196.17becomes a member after June 30, 1989, and to any other member who is at least 55 years
196.18old and whose annuity amount, when calculated under this paragraph and in conjunction
196.19with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
196.20with subdivision 6. The retirement annuity formula percentage for purposes of this
196.21paragraph is the percent specified in section356.315, subdivision 2 , for each year of
196.22coordinated program service through June 30, 2013, and the percent specified in section
196.23356.315, subdivision 2b, per year for each year of coordinated program service rendered
196.24after June 30, 2013.
196.25EFFECTIVE DATE.This section is effective July 1, 2013.
196.26 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 7, is amended to read:
196.27 Subd. 7.Actuarial Reduction for early retirement. (a) This subdivision applies to
196.28a person who has become at least 55 years old and first becomes a coordinated member
196.29after June 30, 1989, and to any other coordinated member who has become at least 55
196.30years old and whose annuity is higher when calculated using the retirement annuity
196.31formula percentage in subdivision 4, paragraph (d),and or subdivision 4a, paragraph (d),
196.32as applicable, in conjunction with this subdivision than when calculated under subdivision
196.334, paragraph (c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.
196.34(b) A coordinated member who retires before thefull benefit normal retirement
196.35age shall be paid the retirement annuity calculated using the retirement annuity formula
197.1percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d),reduced so
197.2that the reduced annuity is the actuarial equivalent of the annuity that would be payable
197.3to the member if the member deferred receipt of the annuity and the annuity amount
197.4were augmented at an annual rate of three percent compounded annually from the day
197.5the annuity begins to accrue until the normal retirement age if the employee became an
197.6employee before July 1, 2006, and at 2.5 percent compounded annually from the day the
197.7annuity begins to accrue until the normal retirement age if the person initially becomes a
197.8teacher after June 30, 2006. whichever is applicable, multiplied by the applicable early
197.9retirement factor specified below:
197.26For normal retirement ages between ages 65 and 66, the early retirement factors will
197.27be determined by linear interpolation between the early retirement factors applicable for
197.28normal retirement ages 65 and 66.
197.29EFFECTIVE DATE.This section is effective July 1, 2013.
197.30 Sec. 16. Minnesota Statutes 2012, section 354A.35, subdivision 2, is amended to read:
197.31 Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a)
197.32The surviving spouse of a vested coordinated member who dies prior to retirement may
197.33elect to receive, instead of a refund with interest under subdivision 1, an annuity equal
197.34to the 100 percent joint and survivor annuity the member could have qualified for had
197.35the member terminated service on the date of death. The surviving spouse eligible for
197.36a surviving spouse benefit under this paragraph may apply for the annuity at any time
197.37after the date on which the deceased employee would have attained the required age for
198.1retirement based on the employee's allowable service. A surviving spouse eligible for
198.2surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time
198.3after the member's death. The member's surviving spouse shall be paid a joint and survivor
198.4annuity under section354A.32 and computed under section
354A.31 .
198.5(b) If the member was under age 55 and has credit for at least 30 years of allowable
198.6service on the date of death, the surviving spouse may elect to receive a 100 percent joint
198.7and survivor annuity based on the age of the member and surviving spouse on the date
198.8of death. The annuity is payable using the full early retirement reduction under section
198.9354A.31, subdivision 6
, paragraph (a), to age 55 and one-half of the early retirement
198.10reduction from age 55 to the age payment begins.
198.11(c) If a vested member of the Duluth Teachers Retirement Fund Association was
198.12under age 55 on the date of death but did not yet qualify for retirement, the surviving
198.13spouse may elect to receive the 100 percent joint and survivor annuity based on the age
198.14of the member and the survivor at the time of death. The annuity is payable using the
198.15full early retirement reduction under section354A.31, subdivision 6 or 7, to age 55 and
198.16one-half of the early retirement reduction from age 55 to the date payment begins.
198.17(d) If a vested member of the St. Paul Teachers Retirement Fund Association was
198.18under age 55 on the date of death but did not yet qualify for retirement, the surviving
198.19spouse may elect to receive the 100 percent joint and survivor annuity based on the age
198.20of the member and the survivor at the time of death. The annuity is payable using the
198.21full early retirement reduction under section354A.31, subdivision 6 or 7, to age 55 and
198.22one-half of the actuarial equivalent reduction from age 55 to the date payment begins.
198.23The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial
198.24equivalent of the annuity that would be payable to the member if the member deferred
198.25receipt of the annuity and the annuity amount were augmented at an annual rate of 2.5
198.26percent compounded annually from the day the annuity begins to accrue until the normal
198.27retirement age.
198.28(d) (e) Sections
354A.37, subdivision 2 , and
354A.39 apply to a deferred annuity
198.29or surviving spouse benefit payable under this section. The benefits are payable for the
198.30life of the surviving spouse, or upon expiration of the term certain benefit payment under
198.31subdivision 2b.
198.32EFFECTIVE DATE.This section is effective the day following final enactment.
198.33 Sec. 17. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
199.1 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
199.2the applicable following preretirement interest assumption and the applicable following
199.3postretirement interest assumption:
199.4(1) select and ultimate interest rate assumption
199.26Except for the legislators retirement plan and the elective state officers retirement
199.27plan, the select preretirement interest rate assumption for the period after June 30, 2012,
199.28through June 30, 2017, is 8.0 percent. Except for the legislators retirement plan and the
199.29elective state officers retirement plan, the select postretirement interest rate assumption for
199.30the period after June 30, 2012, through June 30, 2017, is 5.5 percent, except for the Duluth
199.31teachers retirement plan and the St. Paul teachers retirement plan, each with a select
199.32postretirement interest rate assumption for the period after June 30, 2012, through June
199.3330, 2017, of 8.0 percent.
199.34(2) single rate preretirement and postretirement interest rate assumption
199.40 (b) The actuarial valuation must use the applicable following single rate future salary
199.41increase assumption, the applicable following modified single rate future salary increase
199.42assumption, or the applicable following graded rate future salary increase assumption:
200.1 (1) single rate future salary increase assumption
200.7 (2) age-related future salary increase age-related select and ultimate future salary
200.8increase assumption or graded rate future salary increase assumption
200.13For plans other than the Duluth teachers
200.14retirement plan, the select calculation
200.15is: during the designated select period, a
200.16designated percentage rate is multiplied by
200.17the result of the designated integer minus T,
200.18where T is the number of completed years
200.19of service, and is added to the applicable
200.20future salary increase assumption. The
200.21designated select period is ten years and the
200.22designated integer is ten forall retirement
200.23plans covered by this clause the Duluth
200.24Teachers Retirement Fund Association
200.25and for the local government correctional
200.26service retirement plan and 15 for the St.
200.27Paul Teachers Retirement Fund Association.
200.28The designated percentage rate is0.3 0.2
200.29percent for the St. Paul Teachers Retirement
200.30Fund Association. The select calculation
200.31for the Duluth Teachers Retirement Fund
200.32Association is 8.00 percent per year for
200.33service years one through seven, 7.25 percent
200.34per year for service years seven and eight,
200.35and 6.50 percent per year for service years
200.36eight and nine.
200.37 The ultimate future salary increase assumption is:
202.14(3) service-related ultimate future salary increase assumption
203.13 (c) The actuarial valuation must use the applicable following payroll growth
203.14assumption for calculating the amortization requirement for the unfunded actuarial
203.15accrued liability where the amortization retirement is calculated as a level percentage
203.16of an increasing payroll:
203.30 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
203.31different salary assumption or a different payroll increase assumption:
203.32 (1) has been proposed by the governing board of the applicable retirement plan;
203.33 (2) is accompanied by the concurring recommendation of the actuary retained under
203.34section356.214, subdivision 1 , if applicable, or by the approved actuary preparing the
203.35most recent actuarial valuation report if section356.214 does not apply; and
203.36 (3) has been approved or deemed approved under subdivision 18.
203.37EFFECTIVE DATE.This section is effective the day following final enactment.
203.38 Sec. 18. Minnesota Statutes 2012, section 356.47, subdivision 1, is amended to read:
204.1 Subdivision 1. Application. (a) This section applies to the balance of annual
204.2retirement annuities on the amount of retirement annuity reductions after reemployed
204.3annuitant earnings limitations for retirement plans governed by section352.115,
204.4subdivision 10 ;
353.37 ;
354.44, subdivision 5 ; or
354A.31, subdivision 3 .
204.5(b) This section also applies to the balance of annual retirement annuities on
204.6the amount of retirement annuity reductions under section 354A.31, subdivision 3, for
204.7members of the Duluth Teachers Retirement Fund Association whose effective date of
204.8retirement is before July 1, 2013.
204.9(c) This section also applies to the balance of annual retirement annuities on
204.10the amount of retirement annuity reductions under section 354A.31, subdivision 3, for
204.11members of the St. Paul Teachers Retirement Fund Association whose effective date of
204.12retirement is before July 1, 2013.
204.13EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
204.14Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
204.15Teachers Retirement Fund Association the day following final enactment.
204.16 Sec. 19. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
204.17 Subd. 5. Termination of state aid programs. The amortization state aid,
204.18supplemental amortization state aid, and additional amortization state aid programs
204.19terminate as of the December 31, next following the date of the actuarial valuation when
204.20the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial
204.21accrued liability of that plan orDecember 31, 2009 when the assets of the Duluth Teachers
204.22Retirement Fund Association equal the actuarial accrued liability of that plan, whichever
204.23is later.
204.24EFFECTIVE DATE.This section is effective the day following final enactment.
204.25 Sec. 20. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION BYLAW
204.26AMENDMENT AUTHORIZATION.
204.27Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the Duluth
204.28Teachers Retirement Fund Association is authorized to amend its articles of incorporation
204.29or its bylaws to specify the revised contribution rates under sections 3 and 4, required
204.30employee contributions on behalf of reemployed annuitants as specified under section 5,
204.31and revised treatment of reemployed annuitant holding accounts under sections 12 and 18.
204.32EFFECTIVE DATE.This section is effective July 1, 2013.
205.1 Sec. 21. ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BYLAW
205.2AMENDMENT AUTHORIZATION.
205.3Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the St. Paul
205.4Teachers Retirement Fund Association is authorized to amend its articles of incorporation
205.5or its bylaws to apply the reduction factors stated in section 15 rather than the actuarial
205.6reduction factors previously authorized.
205.7EFFECTIVE DATE.This section is effective the day following final enactment.
205.8 Sec. 22. CONSOLIDATION STUDY.
205.9The boards and executive directors of the Duluth Teachers Retirement Fund
205.10Association, the St. Paul Teachers Retirement Fund Association, and the Teachers
205.11Retirement Association shall jointly study and develop a report on the feasibility and
205.12requirements necessary for the consolidation of the Duluth Teachers Retirement Fund
205.13Association and the St. Paul Teachers Retirement Fund Association into the Teachers
205.14Retirement Association. The report shall include detailed actuarial analysis that will define
205.15the financial requirements for consolidating with the Teachers Retirement Association
205.16in a manner, consistent with past practice, that assures that the assets of the Teachers
205.17Retirement Association are protected, that the merging funds are fully funded, and that the
205.18Teachers Retirement Association is not subsidizing the merged funds. The report shall
205.19include implementation plans, proposed allocation of costs between the state and all
205.20interested parties, time frames sufficient for an orderly transition, necessary management
205.21and administrative changes, asset investment related considerations, and education and
205.22communication plans to fully inform the executive branch, the legislative branch, and all
205.23system stakeholders of financial requirements. The report shall include plans to treat
205.24the employees of the Duluth Teachers Retirement Fund Association and the St. Paul
205.25Teachers Retirement Fund Association in a manner comparable to that provided to the
205.26former employees of the former Minneapolis Teachers Retirement Fund Association upon
205.27consolidation into the Teachers Retirement Fund Association. The boards and executive
205.28directors shall consult with the executive director of the State Board of Investment on
205.29investment management transition issues. The report must be submitted to the Legislative
205.30Commission on Pensions and Retirement by January 6, 2014.
205.31EFFECTIVE DATE.This section is effective the day following final enactment.
205.32 Sec. 23. FY2014-2015 BIENNIUM DTRFA AND SPTRFA ADDITIONAL
205.33DIRECT STATE AID.
206.1On October 1, 2013, and on October 1, 2014, the commissioner of management and
206.2budget shall pay $6,000,000 to the Duluth Teachers Retirement Fund Association and
206.3$7,000,000 to the St. Paul Teachers Retirement Fund Association. The required amounts
206.4are appropriated annually from the general fund to the commissioner of management
206.5and budget.
206.6EFFECTIVE DATE.This section is effective July 1, 2013, and expires the day
206.7following the day on which the July 1, 2014-June 30, 2015, payments are made.
206.8 Sec. 24. REPEALER.
206.9Minnesota Statutes 2012, section 354A.27, subdivision 6, is repealed.
206.12 Section 1. Minnesota Statutes 2012, section 356.315, is amended by adding a
206.13subdivision to read:
206.14 Subd. 8a. Judges plan. The applicable benefit accrual rate is 2.5 percent.
206.15EFFECTIVE DATE.This section is effective July 1, 2013.
206.16 Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
206.17 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
206.18otherwise provided in subdivision 1a, 1b, 1c, 1d,or 1e, or 1f, retirement annuity, disability
206.19benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
206.20postretirement adjustment annually on January 1, as follows:
206.21(1) a postretirement increase of 2.5 percent must be applied each year, effective
206.22January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
206.23been receiving an annuity or a benefit for at least 12 full months prior to the January 1
206.24increase; and
206.25(2) for each annuitant or benefit recipient who has been receiving an annuity or a
206.26benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
206.27percent for each month that the person has been receiving an annuity or benefit must be
206.28applied, effective on January 1 following the calendar year in which the person has been
206.29retired for less than 12 months.
206.30(b) The increases provided by this subdivision commence on January 1, 2010.
207.1(c) An increase in annuity or benefit payments under this section must be made
207.2automatically unless written notice is filed by the annuitant or benefit recipient with the
207.3executive director of the covered retirement plan requesting that the increase not be made.
207.4(d) The retirement annuity payable to a person who retires before becoming eligible
207.5for Social Security benefits and who has elected the optional payment as provided in
207.6section353.29, subdivision 6 , must be treated as the sum of a period certain retirement
207.7annuity and a life retirement annuity for the purposes of any postretirement adjustment.
207.8The period certain retirement annuity plus the life retirement annuity must be the
207.9annuity amount payable until age 62 for section353.29, subdivision 6 . A postretirement
207.10adjustment granted on the period certain retirement annuity must terminate when the
207.11period certain retirement annuity terminates.
207.12EFFECTIVE DATE.This section is effective July 1, 2013.
207.13 Sec. 3. Minnesota Statutes 2012, section 356.415, is amended by adding a subdivision
207.14to read:
207.15 Subd. 1f. Annual postretirement adjustments; Minnesota State Retirement
207.16System judges retirement plan. (a) The increases provided under this subdivision begin
207.17on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement
207.18annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
207.19(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
207.20judges retirement plan are entitled to a postretirement adjustment annually on January
207.211, as follows:
207.22(1) a postretirement increase of 1.75 percent must be applied each year, effective
207.23on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
207.24who has been receiving an annuity or a benefit for at least 18 full months before the
207.25January 1 increase; and
207.26(2) for each annuitant or benefit recipient who has been receiving an annuity or a
207.27benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75
207.28percent for each month that the person has been receiving an annuity or benefit must be
207.29applied, effective January 1, following the calendar year in which the person has been
207.30retired for at least six months, but has been retired for less than 18 months.
207.31(c) Increases under this subdivision terminate on December 31 of the calendar
207.32year in which the actuarial valuation prepared by the approved actuary under sections
207.33356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative
207.34Commission on Pensions and Retirement indicates that the market value of assets of the
207.35judges retirement plan equals or exceeds 70 percent of the actuarial accrued liability of
208.1the retirement plan. Increases under subdivision 1 or 1a, whichever is applicable, begin
208.2on the January 1 next following that date.
208.3(d) An increase in annuity or benefit payments under this subdivision must be made
208.4automatically unless written notice is filed by the annuitant or benefit recipient with the
208.5executive director of the applicable covered retirement plan requesting that the increase
208.6not be made.
208.7EFFECTIVE DATE.This section is effective July 1, 2013.
208.8 Sec. 4. Minnesota Statutes 2012, section 490.121, subdivision 21f, is amended to read:
208.9 Subd. 21f. Normal retirement date. (a) For a judge in the tier I program, "normal
208.10retirement date" means the datea the judge attains the age of 65.
208.11(b) For a judge in the tier II program, normal retirement date means the date the
208.12judge attains age 66.
208.13EFFECTIVE DATE.This section is effective July 1, 2013.
208.14 Sec. 5. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
208.15 Subd. 22. Service credit limit. "Service credit limit" means, for a judge covered
208.16by tier I, the greater of: (1) 24 years of allowable service under this chapter; or (2), for
208.17judges a judge with allowable service rendered before July 1, 1980, the number of years of
208.18allowable service under chapter 490, which, when multiplied by the percentage listed in
208.19section356.315, subdivision 7 or 8, whichever is applicable to each year of service, equals
208.2076.8. For a judge covered by tier II, there is no service credit limit.
208.21EFFECTIVE DATE.This section is effective July 1, 2013.
208.22 Sec. 6. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
208.23to read:
208.24 Subd. 25. Tier I. "Tier I" is the benefit program of the retirement plan with a
208.25membership specified by section 490.1221, paragraph (b), and governed by sections
208.26356.315, subdivisions 7 and 8; 356.415, subdivisions 1 and 1f; and 490.121 to 490.133,
208.27except as modified in sections 356.315, subdivision 8a; 490.121, subdivision 21f,
208.28paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 490.124, subdivision
208.291, paragraphs (c) and (d).
208.30EFFECTIVE DATE.This section is effective July 1, 2013.
209.1 Sec. 7. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
209.2to read:
209.3 Subd. 26. Tier II. "Tier II" is the benefit program of the retirement plan with a
209.4membership specified by section 490.1221, paragraph (c), and governed by sections
209.5356.315, subdivision 8a; 356.415, subdivisions 1 and 1f; 490.121 to 490.133, as modified
209.6in section 490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a,
209.7paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).
209.8EFFECTIVE DATE.This section is effective July 1, 2013.
209.9 Sec. 8. [490.1221] JUDGES PLAN PROGRAMS.
209.10(a) Members of the judges retirement plan are members of either the tier I or tier II
209.11program.
209.12(b) A tier I program judge is a person who was first appointed or elected as a judge
209.13before July 1, 2013, who was not eligible for the tier II program because the judge had
209.14five or more years of allowable service on or before December 30, 2013, or did not elect
209.15that program.
209.16(c) A tier II program judge is a person who:
209.17(1) was first appointed or elected as a judge after June 30, 2013; or
209.18(2) was first appointed or elected as a judge before July 1, 2013, had less than five
209.19years of allowable service on or before December 30, 2013, and made an election under
209.20section 14 to be in the tier II program.
209.21EFFECTIVE DATE.This section is effective July 1, 2013.
209.22 Sec. 9. [490.1222] APPLICATION OF SERVICE CREDIT LIMIT.
209.23The service credit limit specified in section 490.121, subdivision 22, does not apply
209.24to a judge in the tier II program.
209.25EFFECTIVE DATE.This section is effective July 1, 2013.
209.26 Sec. 10. Minnesota Statutes 2012, section 490.123, subdivision 1a, is amended to read:
209.27 Subd. 1a. Member contribution rates. (a) A judgewho is covered by the federal
209.28Old Age, Survivors, Disability, and Health Insurance Program and in the tier I program
209.29whose service does not exceed the service credit limit in section490.121, subdivision 22 ,
209.30shall contribute to the fund from each salary payment a sum equal to8.00 9.00 percent
209.31of salary.
210.1(b) A judge in the tier II program shall contribute to the fund from each salary
210.2payment a sum equal to 7.00 percent of salary.
210.3(b) The contribution (c) Contributions under this subdivision is are payable by salary
210.4deduction. The deduction must be made by the state court administrator under section
210.5352.04
, subdivisions 4, 5, and 8.
210.6EFFECTIVE DATE.This section is effective beginning on the first day of the first
210.7full payroll period following an increase in judicial salaries of at least one percent due to
210.8action by the legislature during calendar year 2013 or later.
210.9 Sec. 11. Minnesota Statutes 2012, section 490.123, subdivision 1b, is amended to read:
210.10 Subd. 1b. Employer contribution rate. (a) The employer contribution rate to the
210.11fund on behalf of a judge is20.5 22.5 percent of salary. The employer obligation continues
210.12after a judge exceeds the service credit limit in section490.121 , subdivision 22.
210.13 (b) The employer contribution must be paid by the state court administrator. The
210.14employer contribution is payable at the same time as member contributions are made
210.15under subdivision 1a or as employee contributions are made to the unclassified program
210.16governed by chapter 352D for judges whose service exceeds the limit in section490.121 ,
210.17subdivision 22, are remitted.
210.18EFFECTIVE DATE.This section is effective the first day of the first full payroll
210.19period after June 30, 2013.
210.20 Sec. 12. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
210.21 Subdivision 1.Basic Retirement annuity. (a) Except as qualified hereinafter from
210.22and after the mandatory retirement date, the normal retirement date, the early retirement
210.23date, or one year from the disability retirement date, as the case may be, a retiring judge is
210.24eligible to receive a retirement annuity from the judges' retirement fund.
210.25 (b) For a tier I program judge, the retirement annuity is an amount equal to:
210.26 (1) the percent specified in section356.315, subdivision 7 , multiplied by the judge's
210.27final average compensation with that result then multiplied by the number of years and
210.28fractions of years of allowable service rendered before July 1, 1980; plus
210.29 (2) the percent specified in section356.315, subdivision 8 , multiplied by the judge's
210.30final average compensation with that result then multiplied by the number of years and
210.31fractions of years of allowable service rendered after June 30, 1980.
210.32(c) For a tier II program judge who was first appointed or elected as a judge before
210.33July 1, 2013, the retirement annuity is an amount equal to:
211.1(1) the percent specified in section 356.315, subdivision 8, multiplied by the judge's
211.2final average compensation with that result then multiplied by the number of years and
211.3fractions of years of allowable service rendered before January 1, 2014; plus
211.4(2) the percentage specified in section 356.315, subdivision 8a, multiplied by the
211.5judge's final average compensation with that result then multiplied by the number of years
211.6and fractions of years of allowable service rendered after December 31, 2013.
211.7(d) For a tier II program judge who was first appointed or elected as a judge after
211.8June 30, 2013, the retirement annuity is an amount equal to the percent specified in section
211.9356.315, subdivision 8a, multiplied by the judge's final average compensation with that
211.10result then multiplied by the number of years and fractions of years of allowable service.
211.11(c) (e) For a judge in the tier I program, service that exceeds the service credit limit in
211.12section490.121, subdivision 22 , must be excluded in calculating the retirement annuity, but
211.13the compensation earned by the judge during this period of judicial service must be used in
211.14determining a judge's final average compensation and calculating the retirement annuity.
211.15EFFECTIVE DATE.This section is effective July 1, 2013.
211.16 Sec. 13. MEMBER CONTRIBUTION INCREASE CONDITION.
211.17Any increase in judicial salaries enacted by the legislature during calendar year 2013
211.18or later is not applicable to a judge in the tier I program if the member contribution rate
211.19applicable to that judge in the tier I program under Minnesota Statutes, section 490.123,
211.20subdivision 1a, is not deducted from the salary of the judge.
211.21EFFECTIVE DATE.This section is effective the day following final enactment.
211.22 Sec. 14. TIER II PROGRAM ELECTION; PRE-JULY 1, 2013, JUDGES.
211.23 Subdivision 1. Authority. A person who was first appointed or elected as a judge
211.24covered by the Minnesota State Retirement System judges retirement plan before July 1,
211.252013, is eligible to elect treatment as a tier II program judge if the judge has less than five
211.26years of allowable service on the date the judge makes a valid election under subdivision 2.
211.27 Subd. 2. Election procedure. An eligible judge under subdivision 1 may elect to
211.28be subject to the provisions of Minnesota Statutes, chapter 490, applicable to a tier II
211.29program judge rather than the tier I program by electing that treatment in writing before
211.30January 1, 2014, on a form provided by the executive director of the Minnesota State
211.31Retirement System.
211.32 Subd. 3. Effect of election. (a) The election is irrevocable.
212.1(b) An eligible judge who fails to make an election remains in the tier I program.
212.2(c) If the tier II program is elected by an eligible judge, member contributions based on
212.3revised member contribution rates under Minnesota Statutes, section 490.123, subdivision
212.41a, begin on the first day of the first full pay period occurring after January 1, 2014.
212.5EFFECTIVE DATE.This section is effective July 1, 2013.
212.8 Section 1. Minnesota Statutes 2012, section 356.91, is amended to read:
212.9356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
212.10 (a) Upon written authorization of a person receiving an annuity from a public
212.11pension fund administered by the Minnesota State Retirement System or the Public
212.12Employees Retirement Association, the executive director of the public pension fundmay
212.13 shall deduct from the retirement annuity an amount requested by the annuitant to be paid
212.14as membership dues or other payments to any labor organization that is an exclusive
212.15bargaining agent representing public employees or an organization representing retired
212.16public employees of which the annuitant is a member and shall, on a monthly basis, pay
212.17the amount to the organization so designated by the annuitant.
212.18 (b) A pension fund and the plan fiduciaries which authorize or administer deductions
212.19of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit
212.20the dues amounts, provided that the fund and the fiduciaries have acted in good faith.
212.21 (c)The deductions under paragraph (a) may occur no more frequently than two times
212.22per year and may not be used for political purposes. Any labor organization that is an
212.23exclusive bargaining agent representing public employees or an organization representing
212.24retired public employees may conduct blind mailings to the annuitants of a retirement
212.25system specified in paragraph (a) by requesting that the retirement system mail voluntary
212.26membership information and dues deduction cards to annuitants. Such mailings shall not
212.27be for the purpose of supporting or opposing any candidate, political party, or ballot
212.28measure. The organization requesting the blind mailing shall pay all costs associated
212.29with these mailings, including but not limited to copying, labeling, mailing, postage, and
212.30record keeping. In lieu of administering a blind mailing in-house, a retirement system
212.31may transmit annuitant data necessary for conducting a blind mailing to a mail center
212.32pursuant to a secure data share agreement with the mail center which provides that neither
212.33the organization nor any other entity shall have direct access to the data transmitted by
212.34the retirement system. The retirement system shall have no obligation to approve or
213.1disapprove, or otherwise be responsible for, the content of the mailings. No organization
213.2shall conduct more than two blind mailings per calendar year.
213.3(d) Any labor organization specified in paragraph (a) shall reimburse the public
213.4pension fund for the administrative expense of withholding premium amounts.
213.7 Section 1.PUBLIC SAFETY; APPROPRIATIONS.
213.8The following amounts are appropriated to the Department of Public Safety for the
213.9increased employer contribution in section 3:
213.10(1) $95,000 in fiscal year 2015 is appropriated from the general fund. The general
213.11fund base appropriation for fiscal year 2017 is $189,000;
213.12(2) $546,000 in fiscal year 2015 is appropriated from the trunk highway fund. The
213.13trunk highway fund base appropriation for fiscal year 2017 is $1,093,000; and
213.14(3) $8,000 in fiscal year 2015 is appropriated from the highway user tax distribution
213.15fund. The highway user tax distribution fund base appropriation for fiscal year 2017 is
213.16$16,000."
213.17Delete the title and insert:
213.19relating to retirement; modifying State Board of Investment provisions; MSRS
213.20administrative provisions; PERA administrative provisions; benefit accrual rate
213.21specification; revisions and repeals of former local police and paid firefighter
213.22relief association laws; volunteer firefighter retirement changes; one person
213.23and small group retirement changes; miscellaneous provisions; state patrol
213.24retirement plan financial solvency measures; PERA plans salary definitions;
213.25public employees police and fire retirement plan financial solvency measures;
213.26Teachers Retirement Association early retirement reduction factors; first class
213.27city teacher retirement increases and financial solvency measures; judges
213.28retirement plan financial solvency measures; requiring reports; appropriating
213.29money;amending Minnesota Statutes 2012, sections 3.85, subdivision 10;
213.303A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions
213.311, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions
213.321, 2, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031,
213.33subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77,
213.34subdivisions 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774,
213.35subdivision 1; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381;
213.36352.01, subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03,
213.37subdivisions 4, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4,
213.386, 8, by adding subdivisions; 352.115, subdivision 3; 352.22, subdivision 3;
213.39352.87, subdivision 3; 352.93, subdivision 2; 352.95, subdivision 1; 352.955,
213.40subdivisions 1, 3; 352B.011, subdivisions 4, 13; 352B.02, subdivisions 1a,
213.411c; 352B.08, subdivisions 1, 2, 2a; 352B.10, subdivisions 1, 5, by adding
213.42a subdivision; 352B.11, subdivisions 1, 2b; 352D.04, subdivision 2; 353.01,
213.43subdivisions 2a, 2b, 6, 10, 16, 17a, 29, 41, 47; 353.03, subdivision 3; 353.031,
213.44subdivision 4; 353.27, subdivision 7; 353.29, subdivision 3; 353.34, subdivisions
213.451, 2; 353.35, subdivision 1; 353.50, subdivisions 3, 6; 353.64, subdivision 1a;
213.46353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.656, subdivisions 1,
214.11a, 3a; 353.657, subdivisions 2, 2a, 3, 3a; 353.659; 353.665, subdivisions 1,
214.25, 8, by adding a subdivision; 353.71, subdivision 1; 353E.001, subdivision
214.31; 353E.04, subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3,
214.44, 6, by adding a subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04;
214.5353F.05; 353F.051, subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08;
214.6353G.05, subdivision 2; 354.07, subdivision 1; 354.44, subdivision 6; 354A.011,
214.7subdivision 21; 354A.021, subdivision 2; 354A.12, subdivisions 1, 2a, 3a, 3c,
214.87, by adding subdivisions; 354A.27, subdivision 7, by adding a subdivision;
214.9354A.31, subdivisions 3, 4, 4a, 7; 354A.35, subdivision 2; 356.20, subdivisions
214.102, 4; 356.214, subdivision 1; 356.215, subdivisions 1, 8, 18; 356.216; 356.219,
214.11subdivisions 1, 2, 8; 356.30, subdivisions 1, 3; 356.315, subdivision 9, by
214.12adding a subdivision; 356.401, subdivision 3; 356.406, subdivision 1; 356.415,
214.13subdivisions 1, 1a, 1b, 1c, 1e, 2, by adding a subdivision; 356.47, subdivision
214.141; 356.48, subdivision 1; 356.635, subdivision 1; 356.91; 356A.01, subdivision
214.1519; 356A.06, subdivision 4; 356A.07, subdivision 2; 423A.02, subdivisions 1,
214.161b, 2, 3, 3a, 4, 5; 424A.001, subdivision 4, by adding a subdivision; 424A.01,
214.17subdivision 6; 424A.015, subdivisions 1, 4; 424A.016, subdivision 6; 424A.02,
214.18subdivisions 7, 9; 424A.10, subdivisions 1, 2; 475.52, subdivision 6; 490.121,
214.19subdivisions 21f, 22, by adding subdivisions; 490.123, subdivisions 1a, 1b;
214.20490.124, subdivision 1; proposing coding for new law in Minnesota Statutes,
214.21chapters 3A; 6; 353F; 354; 356; 490; repealing Minnesota Statutes 2012, sections
214.223A.02, subdivision 3; 69.021, subdivision 6; 69.77, subdivision 3; 352.045,
214.23subdivisions 3, 4; 352.955, subdivision 2; 352B.11, subdivision 2c; 352C.001;
214.24352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3;
214.25353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691;
214.26353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08;
214.27353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04;
214.28353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12;
214.29353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3;
214.30354A.27, subdivision 6; 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7,
214.318; 423A.01; 423A.02, subdivision 1a; 423A.04; 423A.05; 423A.07; 423A.10;
214.32423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171;
214.33423A.18; 423A.19; 423A.20; 423A.21; 423A.22; 424A.10, subdivision 5."
1.3relating to retirement; Minnesota State Retirement System, Public Employees
1.4Retirement Association, and former local police and paid firefighter relief
1.5associations; authorizing investments in swaps; clarifying language; removing
1.6obsolete language; revising outdated requirements; revising contribution
1.7rate revision procedures; revising disability standards and disability benefit
1.8administration procedures; merging the elected state officers retirement plan into
1.9the legislators retirement plan; revising pension commission standards provision;
1.10revising pension plan financial report contents provision; clarifying coverage of
1.11student employees and extending duration of excluded work-study positions;
1.12revising military service credit purchase provision for consistency with federal
1.13code; clarifying average salary for benefit purposes; clarifying MERF division
1.14benefit eligibility; adding Lake County Sunrise Home to privatization chapter;
1.15removing legislative approval requirements for privatizations; modifying
1.16legislative notification requirements for privatizations; clarifying privatized
1.17public hospital pension benefit eligibility; making various administrative
1.18changes; eliminating the PERA Social Security leveling optional annuity;
1.19revising and repealing various statutes to reflect the recent mergers of local police
1.20and salaried firefighter relief associations and consolidation accounts with the
1.21public employees police and fire retirement plan; streamlining amortization state
1.22aid programs; extending the deadline for participation in the voluntary statewide
1.23lump-sum volunteer firefighter retirement plan; requiring municipal approval
1.24for deferred service pension interest rate changes by volunteer firefighter relief
1.25association boards of trustees; authorizing a resumption of the payment of a
1.26death benefit to estates of certain White Bear Lake volunteer firefighter relief
1.27association retirees; including Minnesota Association of Professional Employees
1.28in MSRS-General plan coverage; authorizing the termination of nonspousal
1.29survival designations in optional annuity form elections in certain instances;
1.30authorizing certain service credit purchases; providing instructions to the revisor
1.31of statutes;amending Minnesota Statutes 2012, sections 3.85, subdivision 10;
1.323A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions
1.331, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions 1,
1.342, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031, subdivisions
1.351, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77, subdivisions
1.361, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774, subdivision
1.371; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381; 352.01,
1.38subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03, subdivisions
1.394, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4, 6, 8, by adding
1.40subdivisions; 352.115, subdivision 3; 352.22, subdivision 3; 352.87, subdivision
1.413; 352.93, subdivision 2; 352.95, subdivision 1; 352.955, subdivisions 1, 3;
1.42352B.011, subdivision 13; 352B.08, subdivision 2; 352B.10, subdivision 1, by
1.43adding a subdivision; 352D.04, subdivision 2; 353.01, subdivisions 2a, 2b, 6, 10,
2.116, 17a, 29; 353.03, subdivision 3; 353.27, subdivision 7; 353.29, subdivision
2.23; 353.34, subdivisions 1, 2; 353.50, subdivisions 3, 6; 353.64, subdivision 1a;
2.3353.651, subdivision 3; 353.656, subdivisions 1, 1a, 3a; 353.657, subdivisions 2,
2.42a, 3; 353.659; 353.665, subdivisions 1, 5, 8; 353.71, subdivision 1; 353E.04,
2.5subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3, 4, 6, by adding a
2.6subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04; 353F.05; 353F.051,
2.7subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08; 353G.05, subdivision
2.82; 354.07, subdivision 1; 354.44, subdivision 6; 354A.021, subdivision 2;
2.9354A.31, subdivisions 4, 4a; 356.20, subdivisions 2, 4; 356.214, subdivision 1;
2.10356.215, subdivisions 1, 8, 18; 356.216; 356.219, subdivisions 1, 2, 8; 356.30,
2.11subdivisions 1, 3; 356.315, subdivision 9; 356.401, subdivision 3; 356.406,
2.12subdivision 1; 356.415, subdivisions 1, 1a, 1b, 2; 356.48, subdivision 1; 356.635,
2.13subdivision 1; 356A.01, subdivision 19; 356A.06, subdivision 4; 356A.07,
2.14subdivision 2; 423A.02, subdivisions 1, 1b, 2, 3, 3a, 4, 5; 424A.001, subdivision
2.154, by adding a subdivision; 424A.01, subdivision 6; 424A.015, subdivisions 1,
2.164; 424A.016, subdivision 6; 424A.02, subdivisions 7, 9; 424A.10, subdivisions
2.171, 2; 475.52, subdivision 6; 490.121, subdivision 22; 490.124, subdivision
2.181; proposing coding for new law in Minnesota Statutes, chapters 3A; 6;
2.19353F; 356; repealing Minnesota Statutes 2012, sections 3A.02, subdivision 3;
2.2069.021, subdivision 6; 69.77, subdivision 3; 352.955, subdivision 2; 352C.001;
2.21352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3;
2.22353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691;
2.23353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08;
2.24353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04;
2.25353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12;
2.26353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3; 356.315,
2.27subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7, 8; 423A.01; 423A.02, subdivision
2.281a; 423A.04; 423A.05; 423A.07; 423A.10; 423A.11; 423A.12; 423A.13;
2.29423A.14; 423A.15; 423A.16; 423A.17; 423A.171; 423A.18; 423A.19; 423A.20;
2.30423A.21; 423A.22; 424A.10, subdivision 5.
2.31May 17, 2013
2.32The Honorable Sandra L. Pappas
2.33President of the Senate
2.34The Honorable Paul Thissen
2.35Speaker of the House of Representatives
2.36We, the undersigned conferees for S.F. No. 489 report that we have agreed upon the
2.37items in dispute and recommend as follows:
2.38That the House recede from its amendments and that S.F. No. 489 be further
2.39amended as follows:
2.40Delete everything after the enacting clause and insert:
2.43 Section 1. Minnesota Statutes 2012, section 11A.24, subdivision 1, is amended to read:
2.44 Subdivision 1. Securities generally. (a) Pursuant to an investment policy adopted
2.45by the state board, the state board is authorized to purchase, sell, lend, and exchange the
2.46securities specified in this section, for funds or accounts specifically made subject to this
2.47section
3.1and swap contracts marked to market, if these options and contracts are traded on a
3.2contract market regulated by a governmental agency or by a financial institution regulated
3.3by a governmental agency. These securities may be owned directly or through shares
3.4in exchange-traded or mutual funds, or as units in commingled trusts, subject to any
3.5limitations as specified in this section.
3.6(b) Any agreement to lend securities must be concurrently collateralized with cash
3.7or securities with a market value of not less than 100 percent of the market value of the
3.8loaned securities at the time of the agreement. Any agreement for put and call options
3.9and futures contracts may only be entered into with a fully offsetting amount of cash or
3.10securities. Only securities authorized by this section, excluding those under subdivision 6,
3.11paragraph (a), clauses (1) to (3), may be accepted as collateral or offsetting securities.
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
3.15 Section 1. Minnesota Statutes 2012, section 3.85, subdivision 10, is amended to read:
3.16 Subd. 10. Standards for pension valuations and cost estimates. The commission
3.17shall adopt standards prescribing specific detailed methods to calculate, evaluate, and
3.18display current and proposed law liabilities, costs, and actuarial equivalents of all public
3.19employee pension plans in Minnesota. These standards shall be consistent with chapter
3.20356 and be updated annually. At a minimum, the standards
3.21
3.22accounting principles applicable to government pension plans. The standards may include
3.23additional financial, funding, or valuation requirements that are not required under
3.24generally accepted accounting principles applicable to government pension plans.
3.25EFFECTIVE DATE.This section is effective the day following final enactment.
3.26 Sec. 2. Minnesota Statutes 2012, section 3A.011, is amended to read:
3.273A.011 ADMINISTRATION OF
3.28 The executive director and the board of directors of the Minnesota State Retirement
3.29System shall administer the
3.30chapter consistent with this chapter and
3.31EFFECTIVE DATE.This section is effective July 1, 2013.
3.32 Sec. 3. Minnesota Statutes 2012, section 3A.03, subdivision 3, is amended to read:
4.1 Subd. 3. Legislators retirement fund. (a) The legislators retirement fund, a special
4.2retirement fund, is created within the state treasury
4.3
4.4
4.5legislators retirement fund must be credited with any investment proceeds on the assets of
4.6the retirement fund.
4.7(b) The payment of annuities under section
4.8from the legislators retirement fund.
4.9EFFECTIVE DATE.This section is effective July 1, 2013.
4.10 Sec. 4. Minnesota Statutes 2012, section 3A.07, is amended to read:
4.113A.07 APPLICATION.
4.12 (a) Except as provided in paragraph (b) and section 3A.17, this chapter applies
4.13to members of the legislature in service after July 1, 1965, who otherwise meet the
4.14requirements of this chapter.
4.15 (b) Members of the legislature who were elected for the first time after June 30,
4.161997, or members of the legislature who were elected before July 1, 1997, and who, after
4.17July 1, 1998, elect not to be members of the plan established by this chapter are covered
4.18by the unclassified employees retirement program governed by chapter 352D.
4.19 (c) The post-July 1, 1998, coverage election under paragraph (b) is irrevocable
4.20and must be made on a form prescribed by the director. The second chance referendum
4.21election under Laws 2002, chapter 392, article 15, also is irrevocable.
4.22EFFECTIVE DATE.This section is effective July 1, 2013.
4.23 Sec. 5. Minnesota Statutes 2012, section 3A.115, is amended to read:
4.243A.115 RETIREMENT ALLOWANCE APPROPRIATION;
4.25POSTRETIREMENT ADJUSTMENT.
4.26(a) The amount necessary to fund the retirement allowance granted under this
4.27chapter to a former legislator retiring after June 30, 2003, or to that legislator's survivor,
4.28and the retirement allowance granted under section 3A.17 to a former constitutional
4.29officer or the survivor of that constitutional officer is appropriated from the general fund to
4.30the director to pay pension obligations due to the retiree.
4.31(b) The amount necessary to fund the retirement allowance granted under this
4.32chapter to a former legislator retiring before July 1, 2003, must be paid from the legislators
4.33retirement fund created under section
5.1are exhausted and at that time, the amount necessary to fund the retirement allowances
5.2under this paragraph is appropriated from the general fund to the director to pay pension
5.3obligations to the retiree and survivor.
5.4(c) Retirement allowances payable to retired legislators and their survivors under
5.5this chapter must be adjusted as provided in sections
5.6EFFECTIVE DATE.This section is effective July 1, 2013.
5.7 Sec. 6. Minnesota Statutes 2012, section 3A.13, is amended to read:
5.83A.13 EXEMPTION FROM PROCESS AND TAXATION; HEALTH
5.9PREMIUM DEDUCTION.
5.10(a) The provisions of section
5.11specified in this chapter.
5.12(b) The executive director of the Minnesota State Retirement System must, at the
5.13request of a retired legislator or constitutional officer who is enrolled in a health insurance
5.14plan covering state employees, deduct the person's health insurance premiums from the
5.15person's annuity and transfer the amount of the premium to a health insurance carrier
5.16covering state employees.
5.17EFFECTIVE DATE.This section is effective July 1, 2013.
5.18 Sec. 7. Minnesota Statutes 2012, section 3A.15, is amended to read:
5.193A.15
5.20RETIREMENT PLAN.
5.21
5.22of sections
5.23legislators retirement plan.
5.24EFFECTIVE DATE.This section is effective July 1, 2013.
5.25 Sec. 8. [3A.17] CONSTITUTIONAL OFFICERS.
5.26 Subdivision 1. Application. (a) This section specifies the retirement plan applicable
5.27to a former constitutional officer who was first elected to a constitutional office after July
5.281, 1967, and before July 1, 1997. The plan includes the applicable portions of chapters
5.29352C and 356 in effect on the date on which the person terminated active service as a
5.30constitutional officer.
6.1(b) Nothing in this section, this act, or Laws 2006, chapter 271, article 10, section
6.233, subdivision 2, is intended to increase or reduce the benefits of former constitutional
6.3officers or their survivors or to adversely modify their eligibility for benefits in effect
6.4as of June 30, 2012.
6.5 Subd. 2. Benefit adjustments. Retirement allowances payable to retired
6.6constitutional officers and surviving spouse benefits payable must be adjusted under
6.7section 356.415.
6.8EFFECTIVE DATE.This section is effective July 1, 2013.
6.9 Sec. 9. Minnesota Statutes 2012, section 352.01, subdivision 17b, is amended to read:
6.10 Subd. 17b. Duty disability, physical or psychological. "Duty disability, physical
6.11or psychological," for a correctional employee, means an occupational disability that is
6.12the direct result of an injury incurred during, or a disease arising out of, the performance
6.13of normal duties or the performance of less frequent duties either of which
6.14inherent dangers specific to the correctional employee.
6.15EFFECTIVE DATE.This section is effective the day following final enactment.
6.16 Sec. 10. Minnesota Statutes 2012, section 352.03, subdivision 8, is amended to read:
6.17 Subd. 8. Medical adviser. The
6.18director may contract with an accredited independent organization specializing in
6.19disability determinations, licensed
6.20commissioner of health as designated by the commissioner
6.21medical adviser
6.22EFFECTIVE DATE.This section is effective the day following final enactment.
6.23 Sec. 11. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
6.24to read:
6.25 Subd. 3a. Contribution rate revision; general state employees retirement plan.
6.26(a) Notwithstanding the contribution rates stated in plan law, the employee and employer
6.27contribution rates for the general state employees retirement plan must be adjusted:
6.28(1) if the regular actuarial valuation of the plan under section 356.215 indicates that
6.29there is a contribution sufficiency greater than one percent of covered payroll and that the
6.30sufficiency has existed for at least two consecutive years, the employee and employer
6.31contribution rates must be decreased as determined under paragraph (b) to a level such
7.1that the sufficiency is no greater than one percent of covered payroll based on the most
7.2recent actuarial valuation; or
7.3(2) if the regular actuarial valuation of the plan under section 356.215 indicates that
7.4there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll
7.5and that the deficiency has existed for at least two consecutive years, the employee and
7.6employer contribution rates must be increased as determined under paragraph (c) to a level
7.7such that no deficiency exists based on the most recent actuarial valuation.
7.8(b) If the actuarially required contribution of the plan is less than the total support
7.9provided by the combined employee and employer contribution rates by more than one
7.10percent of covered payroll, the plan employee and employer contribution rates must be
7.11decreased incrementally over one or more years by no more than 0.25 percent of pay
7.12each for employee and employer contribution rates to a level such that there remains a
7.13contribution sufficiency of at least one percent of covered payroll. No contribution rate
7.14decrease may be made until at least two years have elapsed since any adjustment under
7.15this paragraph has been fully implemented.
7.16(c) If the actuarially required contribution exceeds the total support provided by the
7.17employee and employer contribution rates, the employee and employer contribution rates
7.18must be increased equally to eliminate that contribution deficiency. If the contribution
7.19deficiency is:
7.20(1) less than two percent, the incremental increase may be up to 0.25 percent each
7.21for the employee and employer contribution rates;
7.22(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase
7.23may be up to 0.5 percent each for the employee and employer contribution rates; or
7.24(3) greater than four percent, the incremental increase may be up to 0.75 percent
7.25each for the employee and employer contribution.
7.26(d) Any recommended adjustment to the contribution rates must be reported to
7.27the chair and the executive director of the Legislative Commission on Pensions and
7.28Retirement by January 15 following receipt of the most recent annual actuarial valuation
7.29prepared under section
7.30employee and employer contributions stated in plan law. If the Legislative Commission
7.31on Pensions and Retirement does not recommend against the rate change or does not
7.32recommend a modification in the rate change, the recommended adjustment becomes
7.33effective on the first day of the first full payroll period in the fiscal year following receipt
7.34of the most recent actuarial valuation that gave rise to the adjustment.
8.1(e) A contribution sufficiency of up to one percent of covered payroll must be held
8.2in reserve to be used to offset any future actuarially required contributions that are more
8.3than the total combined employee and employer contributions.
8.4(f) Before any reduction in contributions to eliminate a sufficiency in excess of one
8.5percent of covered pay may be recommended, the executive director must review any
8.6need for a change in actuarial assumptions, as recommended by the actuary retained under
8.7section
8.8plan prepared under section
8.9the Legislative Commission on Pensions and Retirement that may result in an increase
8.10in the actuarially required contribution and must report to the Legislative Commission
8.11on Pensions and Retirement any recommendation by the board to use the sufficiency
8.12exceeding one percent of covered payroll to offset the impact of an actuarial assumption
8.13change recommended by the actuary retained under section
8.14reviewed by the actuary retained by the commission under section
8.15(g) No contribution sufficiency in excess of one percent of covered pay may be
8.16proposed to be used to increase benefits, and no benefit increase may be proposed that
8.17would initiate an automatic adjustment to increase contributions under this subdivision.
8.18Any proposed benefit improvement must include a recommendation, prepared by the
8.19actuary retained under section
8.20retained by the Legislative Commission on Pensions and Retirement as provided under
8.21section
8.22EFFECTIVE DATE.This section is effective the day following final enactment.
8.23 Sec. 12. Minnesota Statutes 2012, section 352.045, is amended by adding a subdivision
8.24to read:
8.25 Subd. 3b. Contribution rate revision; correctional state employees retirement
8.26plan and State Patrol retirement plan. (a) Subdivision 3a applies to the correctional
8.27state employees retirement plan under this chapter and to the State Patrol retirement plan
8.28established under chapter 352B, except as stated in this subdivision.
8.29(b) Any limitations on the amount of contribution rate changes stated in subdivision
8.303a apply only to the amount of the employee contribution revision. The employer
8.31contribution for the correctional state employees retirement plan or the State Patrol
8.32retirement plan, whichever is applicable, must be adjusted so that the employer
8.33contribution is equal to 60 percent of the sum of employee plus employer contributions.
9.1(c) For the State Patrol retirement plan, a contribution sufficiency of up to two
9.2percent of covered payroll, rather than one percent, may be held in reserves without taking
9.3action to reduce employee and employer contributions.
9.4EFFECTIVE DATE.This section is effective the day following final enactment.
9.5 Sec. 13. Minnesota Statutes 2012, section 352.113, subdivision 4, is amended to read:
9.6 Subd. 4. Medical or psychological examinations; authorization for payment of
9.7benefit. (a) Any physician, psychologist, chiropractor, or physician assistant providing
9.8any service specified in this section must be licensed.
9.9(b) An applicant shall provide
9.10report signed by a physician, and at least one additional report signed by a physician,
9.11chiropractor, psychologist, or physician assistant with evidence to support an application
9.12for total and permanent disability.
9.13
9.14
9.15
9.16
9.17 opinion regarding whether the employee is permanently and totally disabled within
9.18the meaning of section
9.19employee was placed on any paid or unpaid leave of absence or terminated public service.
9.20(c) If there is medical evidence that supports the expectation that at some point
9.21the person applying for the disability benefit will no longer be disabled, the decision
9.22granting the disability benefit may provide for a termination date upon which the total and
9.23permanent disability can be expected to no longer exist. When a termination date is part
9.24of the decision granting benefits, prior to the benefit termination the executive director
9.25shall review any evidence provided by the disabled employee to show that the disabling
9.26condition for which benefits were initially granted continues. If the benefits cease, the
9.27disabled employee may follow the appeal procedures described in section 356.96 or may
9.28reapply for disability benefits using the process described in this subdivision.
9.29(d) Any claim to disability must be supported by a report from the employer
9.30indicating that there is no available work that the employee can perform with the disabling
9.31condition and that all reasonable accommodations have been considered. Upon request of
9.32the executive director, an employer shall provide evidence of the steps the employer has
9.33taken to attempt to provide reasonable accommodations and continued employment to
9.34the claimant.
10.1
10.2stating whether the employment has ceased or whether the employee is on sick leave of
10.3absence because of a disability that will prevent further service to the employer and
10.4
10.5
10.6assistants, psychologists, and chiropractors and any other evidence supplied by the
10.7employee or other interested parties. If the medical adviser finds the employee totally and
10.8permanently disabled, the adviser shall make appropriate recommendation to the director
10.9in writing together with the date from which the employee has been totally disabled. The
10.10director shall then determine if the disability occurred within 18 months of filing the
10.11application, while still in the employment of the state, and the propriety of authorizing
10.12payment of a disability benefit as provided in this section.
10.13
10.14termination as long as the disability occurred while in the employment of the state. The
10.15fact that an employee is placed on leave of absence without compensation because of
10.16disability does not bar that employee from receiving a disability benefit.
10.17
10.18employee is no longer totally disabled, or because the employee has reached normal
10.19retirement age as provided in this section, the disability benefit must cease with the last
10.20payment received by the disabled employee or which had accrued during the lifetime of the
10.21employee unless there is a spouse surviving. In that event, the surviving spouse is entitled
10.22to the disability benefit for the calendar month in which the disabled employee died.
10.23EFFECTIVE DATE.This section is effective the day following final enactment.
10.24 Sec. 14. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
10.25to read:
10.26 Subd. 4a. Independent medical examination or vocational rehabilitation
10.27counseling. Any individual applying for or receiving disability benefits shall submit
10.28to an independent medical examination or an assessment by a certified rehabilitation
10.29counselor if requested by the executive director or designee. The examination must be
10.30paid for by the system.
10.31EFFECTIVE DATE.This section is effective the day following final enactment.
10.32 Sec. 15. Minnesota Statutes 2012, section 352.113, subdivision 6, is amended to read:
11.1 Subd. 6. Regular medical or psychological examinations. At least once each
11.2year during the first five years following the allowance of a disability benefit to any
11.3employee, and at least once in every three-year period thereafter, the director may require
11.4any disabled employee to
11.5
11.6The
11.7
11.8director for review by an expert or experts designated by the medical adviser and engaged
11.9by the director. If
11.10medical adviser indicates that the employee is no longer permanently and totally disabled,
11.11or is engaged in or can engage in a gainful occupation, payments of the disability benefit
11.12by the fund must be discontinued. The payments must be discontinued as soon as the
11.13employee is reinstated to the payroll following a sick leave of absence, but in no case may
11.14payment be made for more than 60 days after the medical adviser finds that the employee
11.15is no longer permanently and totally disabled.
11.16EFFECTIVE DATE.This section is effective the day following final enactment.
11.17 Sec. 16. Minnesota Statutes 2012, section 352.113, subdivision 8, is amended to read:
11.18 Subd. 8. Refusal of examination. If a
11.19disability benefit refuses to submit to
11.20the disability application shall be rejected. If a disability benefit recipient refuses to submit
11.21to a medical or psychological examination as required, payments by the fund must be
11.22discontinued and the director shall revoke all rights of the employee in any disability benefit.
11.23EFFECTIVE DATE.This section is effective the day following final enactment.
11.24 Sec. 17. Minnesota Statutes 2012, section 352.113, is amended by adding a subdivision
11.25to read:
11.26 Subd. 14. Disabilitant earnings reports. Disability benefit recipients must report
11.27all earnings from reemployment and income from workers' compensation to the system
11.28annually by May 15 in a format prescribed by the executive director. If the form is not
11.29submitted by June 15, benefits must be suspended effective July 1. If the form deemed
11.30acceptable by the executive director is received after the June 15 deadline, benefits shall
11.31be reinstated retroactive to July 1.
11.32EFFECTIVE DATE.This section is effective the day following final enactment.
12.1 Sec. 18. Minnesota Statutes 2012, section 352.22, subdivision 3, is amended to read:
12.2 Subd. 3. Deferred annuity. (a) An employee who has at least three years of
12.3allowable service if employed before July 1, 2010, or who has at least five years of
12.4allowable service if employed after June 30, 2010, when termination occurs may elect
12.5to leave the accumulated contributions in the fund and thereby be entitled to a deferred
12.6retirement annuity. The annuity must be computed under the law in effect when state
12.7service terminated, on the basis of the allowable service credited to the person before
12.8the termination of service.
12.9(b) An employee on layoff or on leave of absence without pay, except a leave of
12.10absence for health reasons, and who does not return to state service must have an annuity,
12.11deferred annuity, or other benefit to which the employee may become entitled computed
12.12under the law in effect on the employee's last working day.
12.13(c) No application for a deferred annuity may be made more than 60 days before
12.14the time the former employee reaches the required age for entitlement to the payment of
12.15the annuity. The deferred annuity begins to accrue no earlier than 60 days before the date
12.16the application is filed in the office of the system, but not (1) before the date on which
12.17the employee reaches the required age for entitlement to the annuity nor (2) before the
12.18day following the termination of state service in a position which is not covered by the
12.19retirement system.
12.20(d) Application for the accumulated contributions left on deposit with the fund may
12.21be made at any time following the date of the termination of service.
12.22(e) Deferred annuities must be augmented as provided in section 352.72, subdivision
12.232.
12.24EFFECTIVE DATE.This section is effective the day following final enactment.
12.25 Sec. 19. Minnesota Statutes 2012, section 352.955, subdivision 1, is amended to read:
12.26 Subdivision 1. Election to transfer prior MSRS-general service credit. (a) An
12.27eligible employee described in paragraph (b) may elect to transfer service credit in the
12.28general state employees retirement plan of the Minnesota State Retirement System to the
12.29correctional state employees retirement plan for eligible prior correctional employment.
12.30 (b) An eligible employee is a person who is covered by
12.31
12.32
12.33
12.34the recommendations under section
13.1 (c) Eligible prior correctional employment is employment covered
13.2
13.3
13.4
13.5
13.6
13.7the Minnesota State Retirement System, is continuous service, and is certified by the
13.8commissioner of corrections and the commissioner of human services, whichever applies,
13.9and by the commissioner of management and budget to the executive director of the
13.10Minnesota State Retirement System as service that would qualify for correctional state
13.11employees retirement plan coverage under section
13.12rendered after the date of coverage transfer.
13.13 (d) The election to transfer past service credit under this section must be made in
13.14writing by the applicable person on a form prescribed by the executive director of the
13.15Minnesota State Retirement System and must be filed with the executive director of the
13.16Minnesota State Retirement System on or before
13.17anniversary of the coverage transfer
13.18employee's termination of state employment, whichever is earlier.
13.19EFFECTIVE DATE.This section is effective the day following final enactment.
13.20 Sec. 20. Minnesota Statutes 2012, section 352.955, subdivision 3, is amended to read:
13.21 Subd. 3. Payment of additional equivalent contributions
13.22
13.23
13.24an additional member contribution for that prior service period. The additional member
13.25contribution is the amount computed under paragraph (b), plus the greater of the amount
13.26computed under paragraph (c), or 40 percent of the unfunded actuarial accrued liability
13.27attributable to the past service credit transfer.
13.28 (b) The executive director shall compute, for the most recent 12 months of service
13.29credit eligible for transfer, or for the entire period eligible for transfer if less than 12
13.30months, the difference between the employee contribution rate or rates for the general state
13.31employees retirement plan and the employee contribution rate or rates for the correctional
13.32state employees retirement plan applied to the eligible employee's salary during that
13.33transfer period, plus compound interest at a monthly rate of 0.71 percent.
13.34 (c) The executive director shall compute, for any service credit being transferred
13.35on behalf of the eligible employee and not included under paragraph (b), the difference
14.1between the employee contribution rate or rates for the general state employees retirement
14.2plan and the employee contribution rate or rates for the correctional state employees
14.3retirement plan applied to the eligible employee's salary during that transfer period, plus
14.4compound interest at a monthly rate of 0.71 percent.
14.5 (d) The executive director shall compute an amount using the process specified in
14.6paragraph (b), but based on differences in employer contribution rates between the general
14.7state employees retirement plan and the correctional state employees retirement plan
14.8rather than employee contribution rates.
14.9 (e) The executive director shall compute an amount using the process specified in
14.10paragraph (c), but based on differences in employer contribution rates between the general
14.11state employees retirement plan and the correctional state employees retirement plan
14.12rather than employee contribution rates.
14.13 (f) The additional equivalent member contribution under this subdivision must be
14.14paid in a lump sum. Payment must accompany the election to transfer the prior service
14.15credit. No transfer election or additional equivalent member contribution payment may be
14.16made by a person or accepted by the executive director after the one year anniversary date
14.17of the effective date of the retirement coverage transfer, or the date on which the eligible
14.18employee terminates state employment, whichever is earlier.
14.19 (g) If an eligible employee elects to transfer past service credit under this section
14.20and pays the additional equivalent member contribution amount under paragraph (a), the
14.21applicable department shall pay an additional equivalent employer contribution amount.
14.22The additional employer contribution is the amount computed under paragraph (d), plus
14.23the greater of the amount computed under paragraph (e), or 60 percent of the unfunded
14.24actuarial accrued liability attributable to the past service credit transfer.
14.25 (h) The unfunded actuarial accrued liability attributable to the past service credit
14.26transfer is the present value of the benefit obtained by the transfer of the service credit
14.27to the correctional state employees retirement plan reduced by the amount of the asset
14.28transfer under subdivision 4, by the amount of the member contribution equivalent
14.29payment computed under paragraph (b), and by the amount of the employer contribution
14.30equivalent payment computed under paragraph (d).
14.31 (i) The additional equivalent employer contribution under this subdivision must be
14.32paid in a lump sum and must be paid within 30 days of the date on which the executive
14.33director of the Minnesota State Retirement System certifies to the applicable department
14.34that the employee paid the additional equivalent member contribution.
14.35EFFECTIVE DATE.This section is effective the day following final enactment.
15.1 Sec. 21. Minnesota Statutes 2012, section 352B.011, subdivision 13, is amended to read:
15.2 Subd. 13. Surviving spouse. "Surviving spouse" means a member's or former
15.3member's legally married spouse
15.4time of death
15.5
15.6EFFECTIVE DATE.This section is effective the day following final enactment.
15.7 Sec. 22. Minnesota Statutes 2012, section 352B.10, is amended by adding a
15.8subdivision to read:
15.9 Subd. 7. Disabilitant earnings reports. Disability benefit recipients must report
15.10all earnings from reemployment and income from workers' compensation to the system
15.11annually by May 15 in a format prescribed by the executive director. If the form is not
15.12submitted by June 15, benefits must be suspended effective July 1. If the form deemed
15.13acceptable by the executive director is received after the June 15 deadline, benefits shall
15.14be reinstated retroactive to July 1.
15.15EFFECTIVE DATE.This section is effective the day following final enactment.
15.16 Sec. 23. Minnesota Statutes 2012, section 352D.04, subdivision 2, is amended to read:
15.17 Subd. 2. Contribution rates. (a) The money used to purchase shares under this
15.18section is the employee and employer contributions provided in this subdivision.
15.19 (b) The employee contribution is an amount equal to the percent of salary specified
15.20in section
15.21 (c) The employer contribution is an amount equal to six percent of salary.
15.22 (d) For members of the legislature, the contributions under this subdivision also must
15.23be made on per diem payments received during a regular or special legislative session, but
15.24may not be made on per diem payments received outside of a regular or special legislative
15.25session, on the additional compensation attributable to a leadership position under section
15.27living expense payments under section
15.28 (e) For a judge who is a member of the unclassified plan under section
15.29subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent
15.30of salary, and there is no employer contribution.
15.31(f) These contributions must be made in the manner provided in section
15.32subdivisions 4, 5, and 6.
15.33EFFECTIVE DATE.This section is effective the day following final enactment.
16.1 Sec. 24. Minnesota Statutes 2012, section 356.20, subdivision 4, is amended to read:
16.2 Subd. 4. Contents of financial report. (a) The financial report required by
16.3this section must contain financial statements and disclosures that indicate the financial
16.4operations and position of the retirement plan and fund. The report must conform with
16.5generally accepted governmental accounting principles, applied on a consistent basis. The
16.6report must be audited.
16.7 (b) The report must include
16.8
16.9by the actuary retained under section
16.10retirement fund or plan, whichever applies,
16.11requirements enumerated in section
16.12for actuarial work adopted by the Legislative Commission on Pensions and Retirement.
16.13The actuarial value of assets, the actuarial accrued liabilities,
16.14 and the unfunded actuarial accrued liability of the fund or plan must be disclosed. The
16.15
16.16under section
16.17specifying that
16.18cost and the actuarial accrued liabilities for all benefits
16.19 are computed in accordance with the entry age actuarial cost method and in accordance
16.20with the most recent applicable standards for actuarial work adopted by the Legislative
16.21Commission on Pensions and Retirement.
16.22 (c) The report must contain an itemized exhibit describing the administrative
16.23expenses of the plan, including, but not limited to, the following items, classified on a
16.24consistent basis from year to year, and with any further meaningful detail:
16.25 (1) personnel expenses;
16.26 (2) communication-related expenses;
16.27 (3) office building and maintenance expenses;
16.28 (4) professional services fees; and
16.29 (5) other expenses.
16.30 (d) The report must contain an itemized exhibit describing the investment expenses
16.31of the plan, including, but not limited to, the following items, classified on a consistent
16.32basis from year to year, and with any further meaningful detail:
16.33 (1) internal investment-related expenses; and
16.34 (2) external investment-related expenses.
16.35 (e) Any additional statements or exhibits or more detailed or subdivided itemization
16.36of a disclosure item that will enable the management of the plan to portray a true
17.1interpretation of the plan's financial condition must be included in the additional
17.2statements or exhibits.
17.3EFFECTIVE DATE.This section is effective the day following final enactment.
17.4 Sec. 25. Minnesota Statutes 2012, section 356.214, subdivision 1, is amended to read:
17.5 Subdivision 1. Actuary retention. (a) The governing board or managing or
17.6administrative official of each public pension plan and retirement fund or plan enumerated
17.7in paragraph (b) shall contract with an established actuarial consulting firm to conduct
17.8annual actuarial valuations and related services. The principal from the actuarial
17.9consulting firm on the contract must be an approved actuary under section
17.10subdivision 1
17.11 (b) Actuarial services must include the preparation of actuarial valuations and
17.12related actuarial work for the following retirement plans:
17.13 (1) the teachers retirement plan, Teachers Retirement Association;
17.14 (2) the general state employees retirement plan, Minnesota State Retirement System;
17.15 (3) the correctional employees retirement plan, Minnesota State Retirement System;
17.16 (4) the State Patrol retirement plan, Minnesota State Retirement System;
17.17 (5) the judges retirement plan, Minnesota State Retirement System;
17.18 (6) the general employees retirement plan, Public Employees Retirement
17.19Association, including the MERF division;
17.20 (7) the public employees police and fire plan, Public Employees Retirement
17.21Association;
17.22 (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund
17.23Association;
17.24 (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund
17.25Association;
17.26 (10) the legislators retirement plan, Minnesota State Retirement System; and
17.27
17.28
17.29
17.30Employees Retirement Association.
17.31(c) The actuarial valuation for the legislators retirement plan must include a separate
17.32calculation of total plan actuarial accrued liabilities due to constitutional officer coverage
17.33under section 3A.17.
17.34
17.35calculations on a fiscal year basis, with the contents of the actuarial valuation calculations
18.1as specified in section
18.2adopted by the Legislative Commission on Pensions and Retirement.
18.3 The contracts must require completion of annual experience data collection and
18.4processing and a quadrennial published experience study for the plans listed in paragraph
18.5(b), clauses (1), (2), and (6), as provided for in the standards for actuarial work adopted by
18.6the commission. The experience data collection, processing, and analysis must evaluate
18.7the following:
18.8 (1) individual salary progression;
18.9 (2) the rate of return on investments based on the current asset value;
18.10 (3) payroll growth;
18.11 (4) mortality;
18.12 (5) retirement age;
18.13 (6) withdrawal; and
18.14 (7) disablement.
18.15
18.16board or administrative official and the legislature, summarizing the results of the actuarial
18.17valuation calculations. The actuary shall include with the report any recommendations
18.18concerning the appropriateness of the support rates to achieve proper funding of
18.19the retirement plans by the required funding dates. The actuary shall, as part of the
18.20quadrennial experience study, include recommendations on the appropriateness of the
18.21actuarial valuation assumptions required for evaluation in the study.
18.22
18.23indicates a persistent pattern of sizable gains or losses, the governing or managing board
18.24or administrative official shall direct the actuary to prepare a special experience study for
18.25a plan listed in paragraph (b), clause (3), (4), (5), (7), (8), (9), (10), (11), or (12), in the
18.26manner provided for in the standards for actuarial work adopted by the commission.
18.27EFFECTIVE DATE.This section is effective July 1, 2013.
18.28 Sec. 26. Minnesota Statutes 2012, section 356.215, subdivision 1, is amended to read:
18.29 Subdivision 1. Definitions. (a) For the purposes of sections
18.31 (b) "Actuarial valuation" means a set of calculations prepared by an actuary retained
18.32under section
18.33actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit
18.34plan, according to the entry age actuarial cost method and based upon stated assumptions
18.35including, but not limited to rates of interest, mortality, salary increase, disability,
19.1withdrawal, and retirement and to determine the payment necessary to amortize over a
19.2stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial
19.3valuation of the benefit plan.
19.4 (c) "Approved actuary" means a person who is regularly engaged in the business of
19.5providing actuarial services and who is a fellow in the Society of Actuaries.
19.6 (d) "Entry age actuarial cost method" means an actuarial cost method under which
19.7the actuarial present value of the projected benefits of each individual currently covered
19.8by the benefit plan and included in the actuarial valuation is allocated on a level basis over
19.9the service of the individual, if the benefit plan is governed by section
19.10earnings of the individual, if the benefit plan is governed by any other law, between the
19.11entry age and the assumed exit age, with the portion of the actuarial present value which is
19.12allocated to the valuation year to be the normal cost and the portion of the actuarial present
19.13value not provided for at the valuation date by the actuarial present value of future normal
19.14costs to be the actuarial accrued liability, with aggregation in the calculation process to be
19.15the sum of the calculated result for each covered individual and with recognition given to
19.16any different benefit formulas which may apply to various periods of service.
19.17 (e) "Experience study" means a report providing experience data and an actuarial
19.18analysis of the adequacy of the actuarial assumptions on which actuarial valuations are
19.19based.
19.20 (f) "Actuarial value of assets" means
19.21
19.22
19.23
19.24
19.25
19.26
19.27
19.28
19.29
19.30
19.31
19.32
19.33
19.34
19.35
19.36
20.1
20.2
20.3
20.4
20.5
20.6
20.7
20.8
20.9
20.10
20.11
20.12
20.13assets as of the preceding June 30, reduced by:
20.14
20.15of total assets between the June 30 that occurred three years earlier and the June 30 that
20.16occurred four years earlier and the computed increase in the market value of total assets
20.17over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.18annual percentage preretirement interest rate assumption used in the actuarial valuation
20.19for the July 1 that occurred four years earlier;
20.20
20.21of total assets between the June 30 that occurred two years earlier and the June 30 that
20.22occurred three years earlier and the computed increase in the market value of total assets
20.23over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.24annual percentage preretirement interest rate assumption used in the actuarial valuation
20.25for the July 1 that occurred three years earlier;
20.26
20.27value of total assets between the June 30 that occurred one year earlier and the June 30 that
20.28occurred two years earlier and the computed increase in the market value of total assets
20.29over that fiscal year period if the assets had earned a rate of return on assets equal to the
20.30annual percentage preretirement interest rate assumption used in the actuarial valuation
20.31for the July 1 that occurred two years earlier; and
20.32
20.33value of total assets between the most recent June 30 and the June 30 that occurred
20.34one year earlier and the computed increase in the market value of total assets over that
20.35fiscal year period if the assets had earned a rate of return on assets equal to the annual
21.1percentage preretirement interest rate assumption used in the actuarial valuation for the
21.2July 1 that occurred one year earlier.
21.3 (g) "Unfunded actuarial accrued liability" means the total current and expected
21.4future benefit obligations, reduced by the sum of the actuarial value of assets and the
21.5present value of future normal costs.
21.6 (h) "Pension benefit obligation" means the actuarial present value of credited
21.7projected benefits, determined as the actuarial present value of benefits estimated to be
21.8payable in the future as a result of employee service attributing an equal benefit amount,
21.9including the effect of projected salary increases and any step rate benefit accrual rate
21.10differences, to each year of credited and expected future employee service.
21.11EFFECTIVE DATE.This section is effective the day following final enactment.
21.12 Sec. 27. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
21.13 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
21.14the applicable following preretirement interest assumption and the applicable following
21.15postretirement interest assumption:
21.16(1) select and ultimate interest rate assumption
21.38Except for the legislators retirement plan and the
21.39
21.40assumption for the period after June 30, 2012, through June 30, 2017, is 8.0 percent.
22.1Except for the legislators retirement plan and the
22.2
22.3assumption for the period after June 30, 2012, through June 30, 2017, is 5.5 percent,
22.4except for the Duluth teachers retirement plan and the St. Paul teachers retirement plan,
22.5each with a select postretirement interest rate assumption for the period after June 30,
22.62012, through June 30, 2017, of 8.0 percent.
22.7(2) single rate preretirement and postretirement interest rate assumption
| 22.8 22.9 |
plan |
interest rate assumption |
|
| 22.10 |
Bloomington Fire Department Relief Association |
6.0 |
|
| 22.11 22.12 |
local monthly benefit volunteer firefighters relief associations |
5.0 |
22.14increase assumption, the applicable following modified single rate future salary increase
22.15assumption, or the applicable following graded rate future salary increase assumption:
22.16 (1) single rate future salary increase assumption
| 22.17 |
plan |
future salary increase assumption |
|
| 22.18 |
legislators retirement plan |
5.0% |
|
| 22.19 |
judges retirement plan |
3.0 |
|
| 22.20 22.21 |
Bloomington Fire Department Relief Association |
4.0 |
|
22.23increase assumption or graded rate future salary increase assumption
22.28For plans other than the Duluth teachers
22.29retirement plan, the select calculation
22.30is: during the designated select period, a
22.31designated percentage rate is multiplied by
22.32the result of the designated integer minus T,
22.33where T is the number of completed years
22.34of service, and is added to the applicable
22.35future salary increase assumption. The
22.36designated select period is ten years and the
22.37designated integer is ten for all retirement
23.1plans covered by this clause. The designated
23.2percentage rate is 0.3 percent for the St. Paul
23.3Teachers Retirement Fund Association. The
23.4select calculation for the Duluth Teachers
23.5Retirement Fund Association is 8.00 percent
23.6per year for service years one through seven,
23.77.25 percent per year for service years seven
23.8and eight, and 6.50 percent per year for
23.9service years eight and nine.
23.10 The ultimate future salary increase assumption is:
24.26(3) service-related ultimate future salary increase assumption
25.25 (c) The actuarial valuation must use the applicable following payroll growth
25.26assumption for calculating the amortization requirement for the unfunded actuarial
25.27accrued liability where the amortization retirement is calculated as a level percentage
25.28of an increasing payroll:
26.1 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
26.2different salary assumption or a different payroll increase assumption:
26.3 (1) has been proposed by the governing board of the applicable retirement plan;
26.4 (2) is accompanied by the concurring recommendation of the actuary retained under
26.5section
26.6most recent actuarial valuation report if section
26.7 (3) has been approved or deemed approved under subdivision 18.
26.8EFFECTIVE DATE.This section is effective July 1, 2013.
26.9 Sec. 28. Minnesota Statutes 2012, section 356.30, subdivision 3, is amended to read:
26.10 Subd. 3. Covered plans. This section applies to the following retirement plans:
26.11(1) the general state employees retirement plan of the Minnesota State Retirement
26.12System, established under chapter 352;
26.13(2) the correctional state employees retirement plan of the Minnesota State
26.14Retirement System, established under chapter 352;
26.15(3) the unclassified employees retirement program, established under chapter 352D;
26.16(4) the State Patrol retirement plan, established under chapter 352B;
26.17(5) the legislators retirement plan, established under chapter 3A, including
26.18constitutional officers as specified in that chapter;
26.19
26.20
26.21Association, established under chapter 353, including the MERF division of the Public
26.22Employees Retirement Association;
26.23
26.24Retirement Association, established under chapter 353;
26.25
26.26Employees Retirement Association, established under chapter 353E;
26.27
26.28
26.29chapter 354A;
26.30
26.31chapter 354A; and
26.32
26.33EFFECTIVE DATE.This section is effective July 1, 2013.
27.1 Sec. 29. Minnesota Statutes 2012, section 356.401, subdivision 3, is amended to read:
27.2 Subd. 3. Covered retirement plans. The provisions of this section apply to the
27.3following retirement plans:
27.4(1) the legislators retirement plan, established by chapter 3A, including constitutional
27.5officers as specified in that chapter;
27.6(2) the general state employees retirement plan of the Minnesota State Retirement
27.7System, established by chapter 352;
27.8(3) the correctional state employees retirement plan of the Minnesota State
27.9Retirement System, established by chapter 352;
27.10(4) the State Patrol retirement plan, established by chapter 352B;
27.11
27.12
27.13352D;
27.14
27.15Association, established by chapter 353, including the MERF division of the Public
27.16Employees Retirement Association;
27.17
27.18Association, established by chapter 353;
27.19
27.20
27.21Employees Retirement Association, established by chapter 353E;
27.22
27.23established by chapter 353G;
27.24
27.25
27.26354A;
27.27
27.28354A;
27.29
27.30
27.31354C; and
27.32
27.33EFFECTIVE DATE.This section is effective July 1, 2013.
27.34 Sec. 30. Minnesota Statutes 2012, section 356.415, subdivision 1a, is amended to read:
28.1 Subd. 1a. Annual postretirement adjustments; Minnesota State Retirement
28.2System plans other than State Patrol retirement plan. (a) Retirement annuity, disability
28.3benefit, or survivor benefit recipients of the legislators retirement
28.4constitutional officers as specified in chapter 3A, the general state employees retirement
28.5plan, the correctional state employees retirement plan,
28.6
28.7are entitled to a postretirement adjustment annually on January 1, as follows:
28.8(1) a postretirement increase of two percent must be applied each year, effective
28.9on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
28.10who has been receiving an annuity or a benefit for at least 18 full months before the
28.11January 1 increase; and
28.12(2) for each annuitant or benefit recipient who has been receiving an annuity or
28.13a benefit for at least six full months, an annual postretirement increase of 1/12 of two
28.14percent for each month that the person has been receiving an annuity or benefit must be
28.15applied, effective January 1, following the calendar year in which the person has been
28.16retired for at least six months, but has been retired for less than 18 months.
28.17(b) The increases provided by this subdivision commence on January 1, 2011.
28.18Increases under this subdivision for the general state employees retirement plan, the
28.19correctional state employees retirement plan, or the judges retirement plan terminate
28.20on December 31 of the calendar year in which the actuarial valuation prepared by the
28.21approved actuary under sections
28.22promulgated by the Legislative Commission on Pensions and Retirement indicates that the
28.23market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial
28.24accrued liability of the retirement plan and increases under subdivision 1 recommence
28.25after that date. Increases under this subdivision for the legislators retirement plan or the
28.26elected state officers retirement plan terminate on December 31 of the calendar year in
28.27which the actuarial valuation prepared by the approved actuary under sections
28.29on Pensions and Retirement indicates that the market value of assets of the general state
28.30employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability
28.31of the retirement plan and increases under subdivision 1 recommence after that date.
28.32(c) An increase in annuity or benefit payments under this subdivision must be made
28.33automatically unless written notice is filed by the annuitant or benefit recipient with the
28.34executive director of the applicable covered retirement plan requesting that the increase
28.35not be made.
28.36EFFECTIVE DATE.This section is effective July 1, 2013.
29.1 Sec. 31. Minnesota Statutes 2012, section 356.415, subdivision 2, is amended to read:
29.2 Subd. 2. Covered retirement plans. The provisions of this section apply to the
29.3following retirement plans:
29.4(1) the legislators retirement plan established under chapter 3A, including
29.5constitutional officers as specified in that chapter;
29.6(2) the correctional state employees retirement plan of the Minnesota State
29.7Retirement System established under chapter 352;
29.8(3) the general state employees retirement plan of the Minnesota State Retirement
29.9System established under chapter 352;
29.10(4) the State Patrol retirement plan established under chapter 352B;
29.11
29.12
29.13Association established under chapter 353, including the MERF division of the Public
29.14Employees Retirement Association;
29.15
29.16Retirement Association established under chapter 353;
29.17
29.18Employees Retirement Association established under chapter 353E;
29.19
29.20
29.21EFFECTIVE DATE.This section is effective July 1, 2013.
29.22 Sec. 32. APPLICATION AND INTENT.
29.23Sections 2 to 8 and 25 to 31 merge the remaining provisions of the elective
29.24state officers retirement plan into the legislators retirement plan chapter to achieve
29.25administrative savings, including reduced cost for actuarial calculations. Nothing in those
29.26sections should be interpreted as modifying benefits or benefit eligibility compared to law
29.27in effect immediately before the effective date of this section.
29.28EFFECTIVE DATE.This section is effective July 1, 2013.
29.29 Sec. 33. REPEALER.
29.30(a) Minnesota Statutes 2012, sections 3A.02, subdivision 3; 352C.001; 352C.091,
29.31subdivision 1; and 352C.10, are repealed.
29.32(b) Minnesota Statutes 2012, sections 352.045, subdivisions 3 and 4; and 352.955,
29.33subdivision 2, are repealed.
30.1EFFECTIVE DATE.Paragraph (a) is effective July 1, 2013. Paragraph (b) is
30.2effective the day following final enactment.
30.5 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
30.6 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
30.7to participate as members of the association with retirement coverage by the general
30.8employees retirement plan, the local government correctional employees retirement plan
30.9under chapter 353E, or the public employees police and fire retirement plan:
30.10 (1) persons whose salary from one governmental subdivision never exceeds $425 in
30.11a month;
30.12(2) public officers who are elected to a governing body, city mayors, or persons who
30.13are appointed to fill a vacancy in an elective office of a governing body, whose term of office
30.14commences on or after July 1, 2002, for the service to be rendered in that elective position;
30.15 (3) election officers or election judges;
30.16 (4) patient and inmate personnel who perform services for a governmental
30.17subdivision;
30.18 (5) except as otherwise specified in subdivision 12a, employees who are hired for
30.19a temporary position as defined under subdivision 12a, and employees who resign from
30.20a nontemporary position and accept a temporary position within 30 days in the same
30.21governmental subdivision;
30.22 (6) employees who are employed by reason of work emergency caused by fire,
30.23flood, storm, or similar disaster;
30.24 (7) employees who by virtue of their employment in one governmental subdivision
30.25are required by law to be a member of and to contribute to any of the plans or funds
30.26administered by the Minnesota State Retirement System, the Teachers Retirement
30.27Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers
30.28Retirement Fund Association, or any police or firefighters relief association governed by
30.29section
30.30or any local police or firefighters consolidation account who have not elected the type of
30.31benefit coverage provided by the public employees police and fire fund under sections
30.33who have not elected public employees police and fire plan benefit coverage. This clause
30.34must not be construed to prevent a person from being a member of and contributing to
30.35the Public Employees Retirement Association and also belonging to and contributing to
31.1another public pension plan or fund for other service occurring during the same period
31.2of time. A person who meets the definition of "public employee" in subdivision 2 by
31.3virtue of other service occurring during the same period of time becomes a member of the
31.4association unless contributions are made to another public retirement fund on the salary
31.5based on the other service or to the Teachers Retirement Association by a teacher as
31.6defined in section
31.7 (8) persons who are members of a religious order and are excluded from coverage
31.8under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
31.9performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
31.10as amended through January 1, 1987, if no irrevocable election of coverage has been made
31.11under section 3121(r) of the Internal Revenue Code of 1954, as amended;
31.12 (9) employees of a governmental subdivision who have not reached the age of
31.1323 and are enrolled on a full-time basis to attend or are attending classes on a full-time
31.14basis at an accredited school, college, or university in an undergraduate, graduate, or
31.15professional-technical program, or a public or charter high school;
31.16 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
31.17interns who are serving in a degree or residency program in public hospitals or clinics;
31.18 (11) students who are serving for up to five years in an internship or residency program
31.19sponsored by a governmental subdivision, including an accredited educational institution;
31.20 (12) persons who hold a part-time adult supplementary technical college license who
31.21render part-time teaching service in a technical college;
31.22 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
31.23foreign citizens who are employed by a governmental subdivision under a work permit, or
31.24an H-1b visa initially issued or extended for a combined period less than three years of
31.25employment. Upon extension of the employment beyond the three-year period, the foreign
31.26citizens must be reported for membership beginning the first of the month thereafter
31.27provided the monthly earnings threshold as provided under subdivision 2a is met;
31.28 (14) public hospital employees who elected not to participate as members of the
31.29association before 1972 and who did not elect to participate from July 1, 1988, to October
31.301, 1988;
31.31 (15) except as provided in section
31.32defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
31.33may still qualify as public employees under subdivision 2 and may be members of the
31.34Public Employees Retirement Association and participants in the general employees
31.35retirement plan or the public employees police and fire plan, whichever applies, on the
32.1basis of compensation received from public employment service other than service as
32.2volunteer ambulance service personnel;
32.3 (16) except as provided in section
32.4subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
32.5but a person who is a volunteer firefighter may still qualify as a public employee under
32.6subdivision 2 and may be a member of the Public Employees Retirement Association and
32.7a participant in the general employees retirement plan or the public employees police
32.8and fire plan, whichever applies, on the basis of compensation received from public
32.9employment activities other than those as a volunteer firefighter;
32.10 (17) pipefitters and associated trades personnel employed by Independent School
32.11District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
32.12pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
32.13if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
32.14241, article 2, section 12;
32.15 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
32.16are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
32.17who have retirement coverage under a collective bargaining agreement by the Electrical
32.18Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
32.19or the pension plan applicable to Carpenters Local 87 who were either first employed after
32.20May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
32.21Laws 2000, chapter 461, article 7, section 5;
32.22 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
32.23painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
32.24or Independent School District No. 625, St. Paul, with coverage under a collective
32.25bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
32.26the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
32.27pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
32.28Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
32.29first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
32.30Session chapter 10, article 10, section 6;
32.31 (20) plumbers who are employed by the Metropolitan Airports Commission, with
32.32coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
32.33who either were first employed after May 1, 2001, or if first employed before May 2,
32.342001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
32.3510, section 6;
33.1 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
33.2subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
33.3days or less in each year of employment with the governmental subdivision;
33.4 (22) persons who are provided supported employment or work-study positions by a
33.5governmental subdivision and who participate in an employment or industries program
33.6maintained for the benefit of these persons where the governmental subdivision limits
33.7the position's duration up to
33.8federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
33.9unemployment relief program where the training or work experience is not provided as a
33.10part of, or for, future permanent public employment;
33.11 (23) independent contractors and the employees of independent contractors;
33.12 (24) reemployed annuitants of the association during the course of that
33.13reemployment; and
33.14(25) persons appointed to serve on a board or commission of a governmental
33.15subdivision or an instrumentality thereof.
33.16(b) Any person performing the duties of a public officer in a position defined in
33.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
33.18employee of an independent contractor.
33.19EFFECTIVE DATE.This section is effective the day following final enactment.
33.20 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
33.21 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
33.22means:
33.23 (1) service during years of actual membership in the course of which employee
33.24deductions were withheld from salary and contributions were made at the applicable rates
33.25under section
33.26(2) periods of service covered by payments in lieu of salary deductions under
33.27sections
33.28 (3) service in years during which the public employee was not a member but for
33.29which the member later elected, while a member, to obtain credit by making payments to
33.30the fund as permitted by any law then in effect;
33.31 (4) a period of authorized leave of absence with pay from which deductions for
33.32employee contributions are made, deposited, and credited to the fund;
33.33 (5) a period of authorized personal, parental, or medical leave of absence without
33.34pay, including a leave of absence covered under the federal Family Medical Leave Act,
33.35that does not exceed one year, and for which a member obtained service credit for each
34.1month in the leave period by payment under section
34.2salary deductions. An employee must return to public service and render a minimum of
34.3three months of allowable service in order to be eligible to make payment under section
34.5employee must be granted allowable service credit for the purchased period;
34.6 (6) a periodic, repetitive leave that is offered to all employees of a governmental
34.7subdivision. The leave program may not exceed 208 hours per annual normal work cycle
34.8as certified to the association by the employer. A participating member obtains service
34.9credit by making employee contributions in an amount or amounts based on the member's
34.10average salary, excluding overtime pay, that would have been paid if the leave had not been
34.11taken. The employer shall pay the employer and additional employer contributions on
34.12behalf of the participating member. The employee and the employer are responsible to pay
34.13interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
34.14from the end of the normal cycle until full payment is made. An employer shall also make
34.15the employer and additional employer contributions, plus 8.5 percent interest, compounded
34.16annually, on behalf of an employee who makes employee contributions but terminates
34.17public service. The employee contributions must be made within one year after the end of
34.18the annual normal working cycle or within 30 days after termination of public service,
34.19whichever is sooner. The executive director shall prescribe the manner and forms to be
34.20used by a governmental subdivision in administering a periodic, repetitive leave. Upon
34.21payment, the member must be granted allowable service credit for the purchased period;
34.22 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
34.23months allowable service per authorized temporary or seasonal layoff in one calendar year.
34.24An employee who has received the maximum service credit allowed for an authorized
34.25temporary or seasonal layoff must return to public service and must obtain a minimum of
34.26three months of allowable service subsequent to the layoff in order to receive allowable
34.27service for a subsequent authorized temporary or seasonal layoff;
34.28 (8) a period during which a member is absent from employment by a governmental
34.29subdivision by reason of service in the uniformed services, as defined in United States
34.30Code, title 38, section 4303(13), if the member returns to public service with the same
34.31governmental subdivision upon discharge from service in the uniformed service within the
34.32time frames required under United States Code, title 38, section 4312(e), provided that
34.33the member did not separate from uniformed service with a dishonorable or bad conduct
34.34discharge or under other than honorable conditions. The service must be credited if the
34.35member pays into the fund equivalent employee contributions based upon the contribution
34.36rate or rates in effect at the time that the uniformed service was performed multiplied
35.1by the full and fractional years being purchased and applied to the annual salary rate.
35.2The annual salary rate is the average annual salary
35.3purchase period that the member would have received if the member had continued to
35.4be employed in covered employment rather than to provide uniformed service, or, if
35.5the determination of that rate is not reasonably certain, the annual salary rate is the
35.6member's average salary rate
35.7covered employment rendered immediately preceding the period of the uniformed service.
35.8Payment of the member equivalent contributions must be made during a period that begins
35.9with the date on which the individual returns to public employment and that is three times
35.10the length of the military leave period, or within five years of the date of discharge from
35.11the military service, whichever is less. If the determined payment period is less than
35.12one year, the contributions required under this clause to receive service credit may be
35.13made within one year of the discharge date. Payment may not be accepted following 30
35.14days after termination of public service under subdivision 11a. If the member equivalent
35.15contributions provided for in this clause are not paid in full, the member's allowable
35.16service credit must be prorated by multiplying the full and fractional number of years of
35.17uniformed service eligible for purchase by the ratio obtained by dividing the total member
35.18contributions received by the total member contributions otherwise required under this
35.19clause. The equivalent employer contribution, and, if applicable, the equivalent additional
35.20employer contribution must be paid by the governmental subdivision employing the
35.21member if the member makes the equivalent employee contributions. The employer
35.22payments must be made from funds available to the employing unit, using the employer
35.23and additional employer contribution rate or rates in effect at the time that the uniformed
35.24service was performed, applied to the same annual salary rate or rates used to compute the
35.25equivalent member contribution. The governmental subdivision involved may appropriate
35.26money for those payments. The amount of service credit obtainable under this section may
35.27not exceed five years unless a longer purchase period is required under United States Code,
35.28title 38, section 4312. The employing unit shall pay interest on all equivalent member and
35.29employer contribution amounts payable under this clause. Interest must be computed at a
35.30rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the
35.31break in service to the end of the month in which the payment is received. Upon payment,
35.32the employee must be granted allowable service credit for the purchased period; or
35.33(9) a period specified under section
35.34 (b) For calculating benefits under sections
35.35state officers and employees displaced by the Community Corrections Act, chapter 401,
35.36and transferred into county service under section
36.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
36.2section
36.3 (c) For a public employee who has prior service covered by a local police or
36.4firefighters relief association that has consolidated with the Public Employees Retirement
36.5Association under chapter 353A or to which section
36.6elected the type of benefit coverage provided by the public employees police and fire
36.7fund either under section
36.8subdivision 4
36.9firefighters relief association as of the effective date of the consolidation based on law
36.10and on bylaw provisions governing the relief association on the date of the initiation
36.11of the consolidation procedure.
36.12 (d) No member may receive more than 12 months of allowable service credit in a
36.13year either for vesting purposes or for benefit calculation purposes. For an active member
36.14who was an active member of the former Minneapolis Firefighters Relief Association
36.15on December 29, 2011, "allowable service" is the period of service credited by the
36.16Minneapolis Firefighters Relief Association as reflected in the transferred records of the
36.17association up to December 30, 2011, and the period of service credited under paragraph
36.18(a), clause (1), after December 30, 2011. For an active member who was an active member
36.19of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
36.20service" is the period of service credited by the Minneapolis Police Relief Association as
36.21reflected in the transferred records of the association up to December 30, 2011, and the
36.22period of service credited under paragraph (a), clause (1), after December 30, 2011.
36.23 (e) MS 2002 [Expired]
36.24EFFECTIVE DATE.This section is effective the day following final enactment.
36.25 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
36.26 Subd. 17a. Average salary. (a) "Average salary,"
36.27
36.28an amount equivalent to the average of the highest salary of the member, police officer,
36.29or firefighter, whichever applies, upon which employee contributions were paid for any
36.30five successive years of allowable service, based on dates of salary periods as listed on
36.31salary deduction reports. Average salary must be based upon all allowable service if
36.32this service is less than five years.
36.33(b) "Average salary" may not include any reduced salary paid during a period
36.34in which the employee is entitled to benefit payments from workers' compensation for
36.35temporary disability, unless the average salary is higher, including this period.
37.1(c) "Average salary," for purposes of calculating benefits for a surviving spouse or
37.2dependent children under section 353.657, subdivision 2 or 3, means the average of the
37.3full-time monthly base salary rate in effect during the last six months of allowable service.
37.4If the employment during the last six months of allowable service was part-time, the
37.5average salary must be prorated based on the actual number of hours worked.
37.6EFFECTIVE DATE.This section is effective the day following final enactment.
37.7 Sec. 4. Minnesota Statutes 2012, section 353.01, subdivision 29, is amended to read:
37.8 Subd. 29. Designated beneficiary. "Designated beneficiary" means the person
37.9 organization, trust, or estate designated by a member, former member,
37.10
37.11
37.12to act on behalf of the member or former member to receive a refund of the balance of
37.13the member's or former member's accumulated deductions after death. A beneficiary
37.14designation is valid if it is made in the form prescribed by the executive director and
37.15is received by the association on or before the date of death of the member or former
37.16member. If a beneficiary designation is deemed to be invalid for any reason, any remaining
37.17balance of the member's or former member's accumulated deductions are subject to the
37.18provisions of section 353.32, subdivisions 4 and 5.
37.19EFFECTIVE DATE.This section is effective the day following final enactment.
37.20 Sec. 5. Minnesota Statutes 2012, section 353.27, subdivision 7, is amended to read:
37.21 Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except
37.22as provided in paragraph (b), erroneous employee deductions and erroneous employer
37.23contributions and additional employer contributions to the general employees retirement
37.24plan of the Public Employees Retirement Association or to the public employees police
37.25and fire retirement plan for a person who otherwise does not qualify for membership
37.26under this chapter, are considered:
37.27(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
37.28determination of the error by the association, the person may continue membership in the
37.29association while employed in the same position for which erroneous deductions were
37.30taken, or file a written election to terminate membership and apply for a refund upon
37.31termination of public service or defer an annuity under section
37.32(2) invalid, if the initial erroneous employee deduction began on or after January 1,
37.331990. Upon determination of the error, the association shall refund all erroneous employee
38.1deductions and all erroneous employer contributions as specified in paragraph (e). No
38.2person may claim a right to continued or past membership in the association based on
38.3erroneous deductions which began on or after January 1, 1990.
38.4(b) Erroneous deductions taken from the salary of a person who did not qualify
38.5for membership in the general employees retirement plan of the Public Employees
38.6Retirement Association or in the public employees police and fire retirement plan by
38.7virtue of concurrent employment before July 1, 1978, which required contributions to
38.8another retirement fund or relief association established for the benefit of officers and
38.9employees of a governmental subdivision, are invalid. Upon discovery of the error,
38.10allowable service credit for all invalid service if forfeited and, upon termination of public
38.11service, the association shall refund all erroneous employee deductions to the person, with
38.12interest as determined under section
38.13contributions without interest to the employer. This paragraph has both retroactive and
38.14prospective application.
38.15(c) Adjustments to correct employer contributions and employee deductions taken
38.16in error from amounts which are not salary under section
38.17be made as specified in paragraph (e). The period of adjustment must be limited to the
38.18fiscal year in which the error is discovered by the association and the immediate two
38.19preceding fiscal years.
38.20(d) If there is evidence of fraud or other misconduct on the part of the employee or
38.21the employer, the board of trustees may authorize adjustments to the account of a member
38.22or former member to correct erroneous employee deductions and employer contributions
38.23on invalid salary and the recovery of any overpayments for a period longer than provided
38.24for under paragraph (c).
38.25(e) Upon discovery of the receipt of erroneous employee deductions and employer
38.26contributions under paragraph (a), clause (2), or paragraph (c), the association must require
38.27the employer to discontinue the erroneous employee deductions and erroneous employer
38.28contributions reported on behalf of a member. Upon discontinuation, the association must:
38.29(1) for a member, provide a refund in the amount of the invalid employee deductions
38.30with interest on the invalid employee deductions at the rate specified under section
38.31subdivision 2
38.32the credit or refund is made;
38.33(2) for a former member who:
38.34(i) is not receiving a retirement annuity or benefit, return the erroneous employee
38.35deductions to the former member through a refund with interest at the rate specified under
39.1section
39.2through the date the credit or refund is made; or
39.3(ii) is receiving a retirement annuity or disability benefit, or a person who is
39.4receiving an optional annuity or survivor benefit, for whom it has been determined an
39.5overpayment must be recovered, adjust the payment amount and recover the overpayments
39.6as provided under this section; and
39.7(3) return the invalid employer contributions reported on behalf of a member or
39.8former member to the employer by providing a credit against future contributions payable
39.9by the employer.
39.10(f) In the event that a salary warrant or check from which a deduction for the
39.11retirement fund was taken has been canceled or the amount of the warrant or check
39.12returned to the funds of the department making the payment, a refund of the sum
39.13deducted, or any portion of it that is required to adjust the deductions, must be made
39.14to the department or institution.
39.15(g) If the
39.16benefit, or disability benefit
39.17
39.18salary, or due to any erroneous calculation procedure, the association must recalculate
39.19the annuity or benefit payable and
39.20benefit effective the first of the month following discovery of the error. Any overpayment
39.21resulting from the incorrect calculation must be recovered as provided under subdivision
39.227b, if the accrual date, or any adjustment in the amount of the annuity or benefit calculated
39.23after the accrual date, except adjustments required under section 353.656, subdivision 4,
39.24falls within the current fiscal year and the two immediate previous fiscal years.
39.25(h) Notwithstanding the provisions of this subdivision, the association may apply
39.26the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
39.27Compliance Resolution System and not issue a refund of erroneous employee deductions
39.28and employer contributions or not recover a small overpayment of benefits if the cost to
39.29correct the error would exceed the amount of the member refund or overpayment.
39.30(i) Any fees or penalties assessed by the federal Internal Revenue Service for any
39.31failure by an employer to follow the statutory requirements for reporting eligible members
39.32and salary must be paid by the employer.
39.33EFFECTIVE DATE.This section is effective the day following final enactment.
39.34 Sec. 6. Minnesota Statutes 2012, section 353.34, subdivision 1, is amended to read:
40.1 Subdivision 1. Refund or deferred annuity. (a) A former member is entitled to
40.2either a refund of accumulated employee deductions under subdivision 2, or to a deferred
40.3annuity under subdivision 3. Application for a refund may not be made before the date of
40.4termination of public service.
40.5within 120 days following receipt of the application unless the applicant has again become
40.6a public employee required to be covered by the association.
40.7(b) If an individual was placed on layoff under section
40.8a refund is not payable before termination of service under section
40.9(c) An individual who terminates public service covered by the Public Employees
40.10Retirement Association general employees retirement plan, the MERF division, the Public
40.11Employees Retirement Association police and fire retirement plan, or the public employees
40.12local government correctional service retirement plan, and who is employed by a different
40.13employer and who becomes an active member covered by one of the other two plans, may
40.14receive a refund of employee contributions plus annual compound interest from the plan
40.15from which the member terminated service at the applicable rate specified in subdivision 2.
40.16EFFECTIVE DATE.This section is effective the day following final enactment.
40.17 Sec. 7. Minnesota Statutes 2012, section 353.34, subdivision 2, is amended to read:
40.18 Subd. 2. Refund with interest. (a) Except as provided in subdivision 1, any person
40.19who ceases to be a public employee is entitled to receive a refund in an amount equal to
40.20accumulated deductions with annual compound interest to the first day of the month
40.21in which the refund is processed.
40.22(b) For a person who ceases to be a public employee before July 1, 2011, the refund
40.23interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after
40.24June 30, 2011. For a person who ceases to be a public employee after July 1, 2011, the
40.25refund interest is at the rate of four percent.
40.26(c) If a person repays a refund and subsequently applies for another refund, the
40.27repayment amount, including interest, is added to the fiscal year balance in which the
40.28repayment was made.
40.29(d) If the refund payable to a member is based on employee deductions that are
40.30determined to be invalid under section 353.27, subdivision 7, the interest payable on the
40.31invalid employee deductions is four percent.
40.32EFFECTIVE DATE.This section is effective the day following final enactment.
40.33 Sec. 8. Minnesota Statutes 2012, section 353.50, subdivision 3, is amended to read:
41.1 Subd. 3. Service credit and benefit liability transfer. (a) All allowable service
41.2credit and salary credit of the members of the Minneapolis Employees Retirement Fund
41.3as specified in the records of the Minneapolis Employees Retirement Fund through June
41.430, 2010, are transferred to the MERF division of the Public Employees Retirement
41.5Association and are credited by the MERF division.
41.6
41.7
41.8
41.9
41.10
41.11(b) The liability for the payment of annuities and benefits of the Minneapolis
41.12Employees Retirement Fund retirees and benefit recipients as specified in the records of
41.13the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the
41.14MERF division of the Public Employees Retirement Association on June 30, 2010.
41.15EFFECTIVE DATE.This section is effective the day following final enactment.
41.16 Sec. 9. Minnesota Statutes 2012, section 353.50, subdivision 6, is amended to read:
41.17 Subd. 6. Benefits. (a) Retired, disabled, deferred, and inactive member benefits.
41.18The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive
41.19Minneapolis Employees Retirement Fund members with that status as of June 30, 2010,
41.20
41.21
41.24
41.25(b) Benefits; benefit eligibility for June 30, 2010, active members. Persons who
41.26were active members of the former Minneapolis Employees Retirement Fund on June
41.2730, 2010, upon satisfying eligibility requirements stated in the applicable sections of
41.28Minnesota Statutes 2008 specified in paragraph (a), are entitled to annuities or benefits
41.29specified in those sections. Eligibility for a formula retirement annuity includes the
41.30requirement in Minnesota Statutes 2008, sections 422A.13 and 422A.16, that the
41.31terminating member has attained retirement age, which is age 60 if the person has at least
41.32ten years of service credit, or any age if the person has 30 or more years of service credit.
41.33
41.34benefits from the MERF division are eligible for annual automatic postretirement
41.35adjustments solely under section
42.1EFFECTIVE DATE.This section is effective the day following final enactment.
42.2 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2, is amended to read:
42.3 Subd. 2. Benefit amount. (a) The spouse of a deceased member is entitled to
42.4receive a monthly benefit for life equal to the following percentage of the member's
42.5average
42.6paragraph (c), as a member of the police and fire plan
42.7
42.8 (1) if the death was a line of duty death, 60 percent of the
42.9is payable; and
42.10 (2) if the death was not a line of duty death or if death occurred while receiving
42.11disability benefits that accrued before July 1, 2007, 50 percent of the
42.12is payable.
42.13 (b)
42.14
42.15
42.16
42.17to health reasons during the last
42.18definition of average salary in section 353.01, subdivision 17a, paragraph (c), the average
42.19salary used to compute the monthly survivor benefit
42.20salary rate of the position held as a member of the police and fire plan in effect over the
42.21last six months of allowable service preceding the month in which the death occurred.
42.22EFFECTIVE DATE.This section is effective the day following final enactment.
42.23 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
42.24 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
42.25who has attained the age of at least 50 years and either who is vested under section
42.27regardless of age attained, dies before the annuity or disability benefit becomes payable,
42.28notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
42.29elect to receive a death while eligible survivor benefit.
42.30 (b) Notwithstanding the definition of surviving spouse in section
42.3120
42.32eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
42.33filed with the association. If there is no surviving spouse or child or children, a former
42.34spouse may be entitled to a lump-sum refund payment under section
43.11
43.2benefit despite the terms of a marriage dissolution decree filed with the association.
43.3 (c) The benefit may be elected instead of a refund with interest under section
43.4subdivision 1
43.52. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
43.6which the member could have qualified for on the date of death, computed as provided in
43.7sections 353.651,
43.8 (d) The surviving spouse may apply for the annuity at any time after the date
43.9on which the deceased employee would have attained the required age for retirement
43.10based on the employee's allowable service. Sections
43.11subdivision 2
43.12 (e) No payment accrues beyond the end of the month in which entitlement to
43.13such annuity has terminated. An amount equal to the excess, if any, of the accumulated
43.14contributions which were credited to the account of the deceased employee over and
43.15above the total of the annuities paid and payable to the surviving spouse must be paid to
43.16the deceased member's last designated beneficiary or, if none, to the legal representative of
43.17the estate of such deceased member.
43.18 (f) Any member may request in writing, with the signed consent of the spouse, that
43.19this subdivision not apply and that payment be made only to the designated beneficiary, as
43.20otherwise provided by this chapter.
43.21 (g) For a member who is employed as a full-time firefighter by the Department of
43.22Military Affairs of the state of Minnesota, allowable service as a full-time state Military
43.23Affairs Department firefighter credited by the Minnesota State Retirement System may be
43.24used in meeting the minimum allowable service requirement of this subdivision.
43.25EFFECTIVE DATE.This section is effective the day following final enactment.
43.26 Sec. 12. Minnesota Statutes 2012, section 353.657, subdivision 3, is amended to read:
43.27 Subd. 3. Dependent children. (a) A dependent child, as defined in section
43.28subdivision 15
43.29average
43.30paragraph (c), as a member of the police and fire plan
43.31
43.32(b) If the member's status changed from full-time to part-time due to health reasons
43.33during the last 12 months of employment, notwithstanding the definition of average salary
43.34in section 353.01, subdivision 17a, paragraph (c), the average salary used to compute the
43.35monthly dependent child benefit must be based on the full-time salary rate of the position
44.1held as a member of the police and fire plan in effect over the last six months of allowable
44.2service preceding the month in which the death occurred.
44.3 (c) Payments for the benefit of a dependent child must be made to the surviving
44.4parent, or to the legal guardian of the child or to any adult person with whom the child
44.5may at the time be living, provided only that the parent or other person to whom any
44.6amount is to be paid advises the board in writing that the amount will be held or used in
44.7trust for the benefit of the child.
44.8EFFECTIVE DATE.This section is effective the day following final enactment.
44.9 Sec. 13. Minnesota Statutes 2012, section 353F.02, subdivision 3, is amended to read:
44.10 Subd. 3. Effective date of privatization. "Effective date of privatization" means
44.11the date that the operation of
44.12assumed by another employer or the date that
44.13employing unit is purchased by another employer and active membership in the Public
44.14Employees Retirement Association consequently terminates.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.
44.16 Sec. 14. Minnesota Statutes 2012, section 353F.02, subdivision 4, is amended to read:
44.17 Subd. 4. Medical facility. "Medical facility" means:
44.18 (1) Bridges Medical Services;
44.19(2) Cedarview Care Center in Steele County;
44.20 (3) the City of Cannon Falls Hospital;
44.21 (4) the Chris Jenson Health and Rehabilitation Center in St. Louis County;
44.22(5) Cornerstone Nursing and Rehabilitation Center in Clearwater County
44.23
44.24 (6) the Dassel Lakeside Community Home;
44.25(7) the Douglas County Hospital, with respect to the Mental Health Unit;
44.26 (8) the Fair Oaks Lodge, Wadena;
44.27 (9) the Glencoe Area Health Center;
44.28 (10) Hutchinson Area Health Care;
44.29(11) Lake County Sunrise Home;
44.30
44.31
44.32
44.33
45.1
45.2
45.3of Radiology and the Department of Radiation/Oncology;
45.4
45.5
45.6
45.7
45.8
45.9
45.10EFFECTIVE DATE.This section is effective the day following final enactment if
45.11Minnesota Statutes, section 353F.02, subdivision 4, is not repealed in the 2013 legislative
45.12session.
45.13 Sec. 15. Minnesota Statutes 2012, section 353F.02, is amended by adding a subdivision
45.14to read:
45.15 Subd. 4a. Privatized former public employer. "Privatized former public employer"
45.16means a medical facility or other employing unit formerly included in the definition of
45.17governmental subdivision under section 353.01, subdivision 6, that is privatized and
45.18whose employees are certified for participation under this chapter.
45.19EFFECTIVE DATE.This section is effective the day following final enactment.
45.20 Sec. 16. Minnesota Statutes 2012, section 353F.02, subdivision 6, is amended to read:
45.21 Subd. 6.
45.22
45.23public
45.24(1) was employed by the privatized former public employer on the day before the
45.25effective date
45.26(2) terminated employment with the
45.27public
45.28(3) was a participant in the general employees retirement plan of the Public
45.29Employees Retirement Association at the time of termination of employment with the
45.30
45.31(b) Privatized former public employee does not mean a person who, on the day
45.32before the effective date of privatization, was simultaneously employed with the privatized
45.33former public employer and by a governmental subdivision under section 353.01,
46.1subdivision 6, and who, after the effective date of privatization, continues to accrue
46.2service credit under section 353.01, subdivision 16, through simultaneous employment
46.3with a governmental subdivision.
46.4EFFECTIVE DATE.This section is effective the day following final enactment.
46.5 Sec. 17. Minnesota Statutes 2012, section 353F.025, subdivision 1, is amended to read:
46.6 Subdivision 1. Eligibility determination. (a) The chief clerical officer of a
46.7governmental subdivision may submit a resolution from the governing body to the
46.8executive director of the Public Employees Retirement Association which supports
46.9providing coverage under this chapter for employees of that governmental subdivision
46.10who are privatized, and which states that the governing body will pay for actuarial
46.11calculations, as further specified in paragraph (c).
46.12 (b) The governing body must also provide a copy of any applicable purchase or
46.13lease agreement and any other information requested by the executive director to allow the
46.14executive director to verify that under the proposed employer change, the new employer
46.15does not qualify as a governmental subdivision under section
46.16making the employees ineligible for continued coverage as active members of the general
46.17employees retirement plan of the Public Employees Retirement Association.
46.18 (c) Following receipt of a resolution and a determination by the executive director
46.19that the new employer is not a governmental subdivision, the executive director shall
46.20direct the consulting actuary retained under section
46.21general employees retirement plan of the Public Employees Retirement Association, if
46.22coverage under this chapter is provided, is expected to receive a net gain or a net loss if
46.23privatization occurs. A net gain is expected if the actuarial liability of the special benefit
46.24coverage provided under this chapter, if extended to the applicable employees under the
46.25privatization, is less than the actuarial gain otherwise to accrue to the plan. A net loss is
46.26expected if the actuarial accrued liability of the special benefit coverage provided under
46.27this chapter, if extended to the applicable employees under the privatization, is more than
46.28the actuarial gain otherwise to accrue to the plan. The date of the actuarial calculations
46.29used to make this determination must be within one year of the effective date
46.30
46.31EFFECTIVE DATE.This section is effective the day following final enactment.
46.32 Sec. 18. Minnesota Statutes 2012, section 353F.025, subdivision 2, is amended to read:
47.1 Subd. 2.
47.2actuarial calculations under subdivision 1, paragraph (c), indicate
47.3be approved because a net gain to the general employees retirement plan of the Public
47.4Employees Retirement Association is expected
47.5 (b) applies, the executive director shall, following acceptance of the actuarial calculations
47.6by the board of trustees, forward
47.7including a copy of the actuary's report and findings, to the chair
47.8
47.9
47.10
47.11 and the executive director of the Legislative Commission on Pensions and Retirement
47.12 and the chairs and the ranking minority members of the committees with jurisdiction over
47.13governmental operations in the house of representatives and senate.
47.14
47.15
47.16
47.17
47.18
47.19
47.20
47.21
47.22
47.23
47.24
47.25
47.26executive director shall
47.27that the privatization be
47.28clerical officer of the applicable governmental subdivision submits a resolution from
47.29the governing body specifying that a lump sum payment will be made to the
47.30
47.31The interest must be computed using the applicable ultimate preretirement interest rate
47.32assumption under section
47.33date of the actuarial valuation from which the actuarial accrued liability data was used to
47.34determine the net loss in the actuarial study under subdivision 1, to the date of payment,
47.35with annual compounding. Payment must be made on or after the effective date
47.36
48.1(c) The Public Employees Retirement Association must maintain a list that includes
48.2the names of all privatized former public employers in the association's comprehensive
48.3annual financial report and on the association's Web site. Annually by March 1, the
48.4association must submit to the executive director of the Legislative Commission on
48.5Pensions and Retirement the names of any privatized former public employers approved
48.6since the publication of the previous fiscal year's comprehensive annual financial report.
48.7EFFECTIVE DATE.This section is effective the day following final enactment.
48.8 Sec. 19. Minnesota Statutes 2012, section 353F.03, is amended to read:
48.9353F.03 VESTING RULE FOR CERTAIN EMPLOYEES.
48.10Notwithstanding any provision of chapter 353 to the contrary, a
48.11
48.12retirement annuity under section
48.13in the year before the year in which the privatization occurred, without regard to the
48.14requirement specified in section
48.15EFFECTIVE DATE.This section is effective the day following final enactment.
48.16 Sec. 20. Minnesota Statutes 2012, section 353F.04, is amended to read:
48.17353F.04 AUGMENTATION INTEREST RATES FOR
48.18
48.19
48.20 Subdivision 1. Enhanced augmentation rates. (a) The deferred annuity of a
48.21
48.22subject to augmentation under section
48.23Statutes published in the year in which the privatization occurred, except that the rate of
48.24augmentation is as specified in this subdivision.
48.25 (b) This paragraph applies if the
48.26
48.27privatization was
48.28
48.29
48.30Care with a privatization effective date of January 1, 2008. For a
48.31
48.32rate is 5.5 percent compounded annually until January 1 following the year in which the
49.1person attains age 55. From that date to the effective date of retirement, the augmentation
49.2rate is 7.5 percent compounded annually.
49.3 (c) If paragraph (b) is not applicable, and if the effective date of the privatization is
49.4before January 1, 2011, the augmentation rate is four percent compounded annually until
49.5January 1, following the year in which the person attains age 55. From that date to the
49.6effective date of retirement, the augmentation rate is six percent compounded annually.
49.7(d) If the effective date of the privatization is after December 31, 2010, the applicable
49.8augmentation rate depends on the result of computations specified in section
49.9subdivision 1
49.10general employees retirement plan of the Public Employees Retirement Association, the
49.11augmentation rate is 2.0 percent compounded annually until the effective date of retirement.
49.12If the computations under that subdivision indicate a net loss to the fund if a 2.0 percent
49.13augmentation rate is used, but a net gain or no loss if a 1.0 percent rate is used, then the
49.14augmentation rate is 1.0 percent compounded annually until the effective date of retirement.
49.15
49.16
49.17 Subd. 2. Exceptions. The increased augmentation rates specified in subdivision
49.181 do not apply
49.19
49.20(1) beginning the first of the month in which the privatized former public employee
49.21becomes covered again by a retirement plan enumerated in section
49.22the employee continues to be covered and accrues at least six months of credited service;
49.23(2) beginning the first of the month after a privatized former public employee
49.24terminates service with the successor entity; or
49.25
49.26the employer which assumed operations of or purchased the
49.27 privatized former public
49.28
49.29EFFECTIVE DATE.This section is effective the day following final enactment.
49.30 Sec. 21. Minnesota Statutes 2012, section 353F.05, is amended to read:
49.31353F.05 AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE
49.32FOR EARLY RETIREMENT PURPOSES.
49.33(a) For the purpose of determining eligibility for early retirement benefits provided
49.34under section
50.1the year before the year in which the privatization occurred, and notwithstanding any
50.2provision of chapter 353, to the contrary, the years of allowable service for a
50.3
50.4employment on the effective date of privatization and does not apply for a refund of
50.5contributions under section
50.6published in the year before the year in which the privatization occurred, or any similar
50.7provision, includes service with the successor employer to the
50.8 privatized former public
50.9successor employer shall provide any reports that the executive director of the Public
50.10Employees Retirement Association may reasonably request to permit calculation of
50.11benefits.
50.12(b) To be eligible for early retirement benefits under this section, the individual must
50.13separate from service with the successor to the privatized former public employer
50.14
50.15an individual authorized to act on behalf of that
50.16annuity following application procedures under section
50.17EFFECTIVE DATE.This section is effective the day following final enactment.
50.18 Sec. 22. Minnesota Statutes 2012, section 353F.051, subdivision 1, is amended to read:
50.19 Subdivision 1. Eligibility. A
50.20public
50.21Statutes 1998, section
50.22preexisting condition of the disability before the termination of coverage, may apply for
50.23a disability benefit.
50.24EFFECTIVE DATE.This section is effective the day following final enactment.
50.25 Sec. 23. Minnesota Statutes 2012, section 353F.052, is amended to read:
50.26353F.052 APPLICATION OF SURVIVING SPOUSE, DEPENDENT CHILD
50.27PROVISION.
50.28Notwithstanding any provisions of law to the contrary, subdivisions within section
50.30a privatization occurred, applicable to the surviving spouse or dependent children of a
50.31former member as defined in section
50.32
51.1EFFECTIVE DATE.This section is effective the day following final enactment.
51.2 Sec. 24. [353F.057] TERMINATION FROM SERVICE REQUIREMENT.
51.3Upon termination of service from the privatized former public employer or any
51.4successor entity after the effective date of privatization, a privatized former public
51.5employee must separate from any employment relationship with the privatized former
51.6public employer or any successor entity for at least 30 days to qualify to receive a
51.7retirement annuity under this chapter.
51.8EFFECTIVE DATE.This section is effective the day following final enactment.
51.9 Sec. 25. Minnesota Statutes 2012, section 353F.06, is amended to read:
51.10353F.06 APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
51.11LIMITATIONS.
51.12If a privatized former public employee satisfies the separation from service
51.13requirement in section 353F.057 and thereafter resumes employment with the privatized
51.14former public employer or any successor entity or a governmental subdivision under
51.15section 353.01, subdivision 6, the reemployed annuitant earnings limitations of section
51.17
51.18EFFECTIVE DATE.This section is effective the day following final enactment.
51.19 Sec. 26. Minnesota Statutes 2012, section 353F.07, is amended to read:
51.20353F.07 EFFECT ON REFUND.
51.21Notwithstanding any provision of chapter 353 to the contrary,
51.22
51.23of employee accumulated contributions plus interest as provided in section
51.24subdivision 2
51.25the
51.26If a
51.27has received a refund from a pension plan listed in section
51.28person may not repay that refund unless the person again becomes a member of one of
51.29those listed plans and complies with section
51.30EFFECTIVE DATE.This section is effective the day following final enactment.
52.1 Sec. 27. Minnesota Statutes 2012, section 353F.08, is amended to read:
52.2353F.08 COUNSELING SERVICES.
52.3The
52.4the executive director of the Public Employees Retirement Association shall provide
52.5
52.6with counseling on their benefits available under the general employees retirement plan
52.7of the Public Employees Retirement Association during
52.8mutually agreed upon before or after the effective date of privatization.
52.9EFFECTIVE DATE.This section is effective the day following final enactment.
52.10 Sec. 28. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
52.11 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
52.12otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability
52.13benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
52.14postretirement adjustment annually on January 1, as follows:
52.15(1) a postretirement increase of 2.5 percent must be applied each year, effective
52.16January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
52.17been receiving an annuity or a benefit for at least 12 full months prior to the January 1
52.18increase; and
52.19(2) for each annuitant or benefit recipient who has been receiving an annuity or a
52.20benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
52.21percent for each month that the person has been receiving an annuity or benefit must be
52.22applied, effective on January 1 following the calendar year in which the person has been
52.23retired for less than 12 months.
52.24(b) The increases provided by this subdivision commence on January 1, 2010.
52.25(c) An increase in annuity or benefit payments under this section must be made
52.26automatically unless written notice is filed by the annuitant or benefit recipient with the
52.27executive director of the covered retirement plan requesting that the increase not be made.
52.28
52.29
52.30
52.31
52.32
52.33
53.1
53.2
53.3EFFECTIVE DATE.This section is effective January 1, 2014.
53.4 Sec. 29. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
53.5 Subd. 1b. Annual postretirement adjustments; PERA; general employees
53.6retirement plan and local government correctional retirement plan. (a) Retirement
53.7annuity, disability benefit, or survivor benefit recipients of the general employees
53.8retirement plan of the Public Employees Retirement Association and the local government
53.9correctional service retirement plan are entitled to a postretirement adjustment annually
53.10on January 1, as follows:
53.11(1) for January 1, 2011, and each successive January 1 until funding stability is
53.12restored for the applicable retirement plan, a postretirement increase of one percent must
53.13be applied each year, effective on January 1, to the monthly annuity or benefit amount of
53.14each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
53.1512 full months as of the current June 30;
53.16(2) for January 1, 2011, and each successive January 1 until funding stability is
53.17restored for the applicable retirement plan, for each annuitant or benefit recipient who has
53.18been receiving an annuity or a benefit for at least one full month, but less than 12 full
53.19months as of the current June 30, an annual postretirement increase of 1/12 of one percent
53.20for each month the person has been receiving an annuity or benefit must be applied;
53.21(3) for each January 1 following the restoration of funding stability for the applicable
53.22retirement plan, a postretirement increase of 2.5 percent must be applied each year,
53.23effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
53.24recipient who has been receiving an annuity or benefit for at least 12 full months as of
53.25the current June 30; and
53.26(4) for each January 1 following restoration of funding stability for the applicable
53.27retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
53.28a benefit for at least one full month, but less than 12 full months as of the current June
53.2930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
53.30has been receiving an annuity or benefit must be applied.
53.31(b) Funding stability is restored when the market value of assets of the applicable
53.32retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
53.33applicable plan in the most recent prior actuarial valuation prepared under section
53.34and the standards for actuarial work by the approved actuary retained by the Public
53.35Employees Retirement Association under section
54.1(c) If, after applying the increase as provided for in paragraph (a), clauses (3)
54.2and (4), the market value of the applicable retirement plan is determined in the next
54.3subsequent actuarial valuation prepared under section
54.4of the actuarial accrued liability of any of the applicable Public Employees Retirement
54.5Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be
54.6applied as of the next successive January until funding stability is again restored.
54.7(d) An increase in annuity or benefit payments under this section must be made
54.8automatically unless written notice is filed by the annuitant or benefit recipient with the
54.9executive director of the Public Employees Retirement Association requesting that the
54.10increase not be made.
54.11
54.12
54.13
54.14
54.15
54.16
54.17
54.18
54.19EFFECTIVE DATE.This section is effective January 1, 2014.
54.20 Sec. 30. Minnesota Statutes 2012, section 356.635, subdivision 1, is amended to read:
54.21 Subdivision 1. Retirement benefit commencement. (a) The retirement benefit of a
54.22member who has terminated employment must begin no later than the later of April 1 of
54.23the calendar year following the calendar year that the member attains the federal minimum
54.24distribution age under section 401(a)(9) of the Internal Revenue Code or April 1 of the
54.25calendar year following the calendar year in which the member terminated employment.
54.26(b) The consent requirements of section 411(a)(11) of the Internal Revenue Code do
54.27not apply to the extent that a distribution is required to satisfy the requirements of section
54.28401(a)(9) of the Internal Revenue Code.
54.29EFFECTIVE DATE.This section is effective the day following final enactment.
54.30 Sec. 31. REPEALER.
54.31(a) Minnesota Statutes 2012, sections 353F.02, subdivisions 4 and 5; and 353F.025,
54.32subdivision 3, are repealed.
54.33(b) Minnesota Statutes 2012, section 353.29, subdivision 6, is repealed.
55.1EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
55.2Paragraph (b) is effective January 1, 2014.
55.5 Section 1. Minnesota Statutes 2012, section 352.115, subdivision 3, is amended to read:
55.6 Subd. 3. Retirement annuity formula. (a) This paragraph, in conjunction with
55.7section
55.8member of a pension fund listed in section
55.9unless paragraph (b), in conjunction with section
55.10higher annuity amount, in which case paragraph (b)
55.11average salary, as defined in section
55.12
55.13years and
55.14allowable service and pro rata for completed months less than a full year
55.15 determines the amount of the retirement annuity to which the employee is entitled.
55.16(b) This paragraph applies to a person who has become at least 55 years old and
55.17first became a covered employee after June 30, 1989, and to any other covered employee
55.18who has become at least 55 years old and whose annuity amount, when calculated under
55.19this paragraph and in conjunction with section
55.20when calculated under paragraph (a), in conjunction with section
55.21The employee's average salary, as defined in section
55.22by
55.23service and pro rata for months less than a full year
55.24of the retirement annuity to which the employee is entitled.
55.25 Sec. 2. Minnesota Statutes 2012, section 352.87, subdivision 3, is amended to read:
55.26 Subd. 3. Retirement annuity formula. A person specified in subdivision 1 is
55.27entitled to receive a retirement annuity applicable for allowable service credit under this
55.28section calculated by multiplying the employee's average salary, as defined in section
55.30 for each year or portions of a year of allowable service credit. No reduction for retirement
55.31before the normal retirement age, as specified in section
55.32to service to which this section applies.
55.33 Sec. 3. Minnesota Statutes 2012, section 352.93, subdivision 2, is amended to read:
56.1 Subd. 2. Calculating monthly annuity. The monthly annuity under this section
56.2must be determined by multiplying the average monthly salary by the number of years, or
56.3completed months, of covered correctional service by
56.4
56.5or 2.2 percent if employed as a correctional state employee after June 30, 2010.
56.6 Sec. 4. Minnesota Statutes 2012, section 352.95, subdivision 1, is amended to read:
56.7 Subdivision 1. Duty disability; computation of benefit. A covered correctional
56.8employee who is determined to have a duty disability, physical or psychological, as
56.9defined under section
56.10duty disability benefit must be based on covered correctional service only. The duty
56.11disability benefit amount is 50 percent of the average salary defined in section
56.12plus an additional 2.4 percent
56.13employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed
56.14as a correctional state employee after June 30, 2010, for each year of covered correctional
56.15service in excess of 20 years, ten months, prorated for completed months.
56.16 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
56.17 Subd. 2. Normal retirement annuity. The annuity must be paid in monthly
56.18installments. The annuity
56.19average monthly salary of the member by
56.20
56.21 Sec. 6. Minnesota Statutes 2012, section 352B.10, subdivision 1, is amended to read:
56.22 Subdivision 1. Duty disability. A member who is determined to qualify for duty
56.23disability as defined in section
56.24disability benefit while disabled. The benefits must be paid monthly. The duty disability
56.25benefit is an amount equal to the member's average monthly salary multiplied by 60 percent,
56.26plus an additional 3.0 percent
56.27each year and pro rata for completed months of service in excess of 20 years, if any.
56.28 Sec. 7. Minnesota Statutes 2012, section 353.29, subdivision 3, is amended to read:
56.29 Subd. 3. Retirement annuity formula. (a) This paragraph, in conjunction with
56.30section
56.31public employee or a member of a pension fund listed in section
56.32before July 1, 1989, unless paragraph (b), in conjunction with section
57.15
57.2average salary as defined in section
57.3specified in
57.4first ten years and thereafter by
57.5
57.6member, and
57.7of allowable service for the first ten years and thereafter by
57.8
57.9than a full year for a coordinated member
57.10normal retirement annuity.
57.11 (b) This paragraph applies to a member who has become at least 55 years old and first
57.12became a public employee after June 30, 1989, and to any other member whose annuity
57.13amount, when calculated under this paragraph and in conjunction with section
57.14subdivision 5
57.15section
57.17
57.18year for a basic member and
57.19 per year of allowable service and completed months less than a full year for a coordinated
57.20member,
57.21 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
57.22 Subd. 3. Retirement annuity formula. The average salary as defined in section
57.24
57.25retirement annuity. If the member has earned allowable service for performing services
57.26other than those of a police officer or firefighter, the annuity representing that service must
57.27be computed under sections
57.28 Sec. 9. Minnesota Statutes 2012, section 353.656, subdivision 1, is amended to read:
57.29 Subdivision 1. Duty disability; computation of benefits. (a) A member of the
57.30police and fire plan, other than a firefighter covered by section
57.31officer covered by section
57.32defined in section
57.33during the period of such disability in an amount equal to 60 percent of the average salary
57.34as defined in section
58.1
58.2of service in excess of 20 years.
58.3 (b) To be eligible for a benefit under paragraph (a), the member must have:
58.4 (1) not met the requirements for a retirement annuity under section
58.5subdivision 1; or
58.6 (2) met the requirements under that subdivision, but does not have at least 20 years
58.7of allowable service credit.
58.8 (c) If paragraph (b), clause (2), applies, the disability benefit must be paid for a
58.9period of 60 months from the disability benefit accrual date and at the end of that period
58.10is subject to provisions of subdivision 5a.
58.11 (d) If the disability under this subdivision occurs before the member has at least five
58.12years of allowable service credit in the police and fire plan, the disability benefit must be
58.13computed on the average salary from which deductions were made for contribution to
58.14the police and fire fund.
58.15 Sec. 10. Minnesota Statutes 2012, section 353.656, subdivision 1a, is amended to read:
58.16 Subd. 1a. Total and permanent duty disability; computation of benefits. (a) A
58.17member of the police and fire plan, other than a firefighter covered by section
58.18a police officer covered by section
58.19to be a duty disability that is also a permanent and total disability as defined in section
58.21equal to 60 percent of the average salary as defined in section
58.22plus an additional 3.0 percent
58.23salary for each year of service in excess of 20 years.
58.24 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
58.25under section
58.26director receives a written statement from the association's medical advisor that no
58.27improvement can be expected in the member's disabling condition that was the basis for
58.28payment of the benefit under paragraph (a). A member receiving a disability benefit
58.29under this subdivision who is found to no longer be permanently and totally disabled as
58.30defined under section
58.31receipt of a duty disability under section
58.321 upon written notice from the association's medical advisor that the person is no longer
58.33considered permanently and totally disabled.
58.34 (c) If a member approved for disability benefits under this subdivision dies before
58.35attaining normal retirement age as defined in section
59.1(b), or within 60 months of the effective date of the disability, whichever is later,
59.2the surviving spouse is entitled to receive a survivor benefit under section
59.3subdivision 2, paragraph (a), clause (1), if the death is the direct result of the disabling
59.4condition for which disability benefits were approved, or section
59.6for which benefits were approved under this subdivision.
59.7 (d) If the election of an actuarial equivalent optional annuity is not made at the time
59.8the permanent and total disability benefit accrues, an election must be made within 90
59.9days before the member attains normal retirement age as defined under section
59.10subdivision 37, paragraph (b), or having collected total and permanent disability benefits
59.11for 60 months, whichever is later. If a member receiving disability benefits who has
59.12dependent children dies, subdivision 6a, paragraph (c), applies.
59.13 Sec. 11. Minnesota Statutes 2012, section 353.656, subdivision 3a, is amended to read:
59.14 Subd. 3a. Total and permanent regular disability; computation of benefits. (a)
59.15A member of the police and fire plan, other than a firefighter covered by section
59.16or a police officer covered by section
59.17to be a regular disability under section
59.18and total disability as defined in section
59.19life, a disability benefit in an amount equal to 45 percent of the average salary as defined
59.20in section
59.21
59.22 (b) A disability benefit payable under paragraph (a) is subject to eligibility review
59.23under section
59.24director receives a written statement from the association's medical advisor that no
59.25improvement can be expected in the member's disabling condition that was the basis for
59.26payment of the benefit under paragraph (a). A member receiving a disability benefit under
59.27this subdivision who is found to no longer be permanently and totally disabled as defined
59.28under section
59.29of a regular disability under section
59.30upon written notice from the association's medical advisor that the person is no longer
59.31considered permanently and totally disabled.
59.32 (c) A member approved for disability benefits under this subdivision may elect
59.33to receive a normal disability benefit or an actuarial equivalent optional annuity. If the
59.34election of an actuarial equivalent optional annuity is not made at the time the total and
59.35permanent disability benefit accrues, an election must be made within 90 days before
60.1the member attains normal retirement age as defined in section
60.2paragraph (b), or having collected disability benefits for 60 months, whichever is later.
60.3No surviving spouse benefits are payable if the member dies during the period in which
60.4a normal total and permanent disability benefit is being paid. If a member receiving
60.5disability benefits who has dependent children dies, subdivision 6a, paragraph (c), applies.
60.6 Sec. 12. Minnesota Statutes 2012, section 353E.04, subdivision 3, is amended to read:
60.7 Subd. 3. Annuity amount. (a) The average salary as defined in subdivision 2,
60.8multiplied by
60.9allowable service, determines the amount of the normal retirement annuity.
60.10(b) If a person has earned allowable service in the general employees retirement plan
60.11of the Public Employees Retirement Association or the public employees police and fire
60.12
60.13representing such service must be computed in accordance with the formula specified in
60.14sections
60.15 Sec. 13. Minnesota Statutes 2012, section 353E.06, subdivision 1, is amended to read:
60.16 Subdivision 1. Duty disability qualification requirements. A local government
60.17correctional employee who is determined to qualify for a duty disability as defined in
60.18section
60.19must be based on covered service under this chapter only and is an amount equal to 47.5
60.20percent of the average salary defined in section
60.211.9 percent
60.22covered service under this chapter in excess of 25 years.
60.23 Sec. 14. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
60.24 Subd. 6. Computation of formula program retirement annuity. (a) The formula
60.25retirement annuity must be computed in accordance with the applicable provisions of the
60.26formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
60.27section
60.28 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
60.29became a member of the association or a member of a pension fund listed in section
60.31paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
60.32average salary as defined in section
61.1percentages per year of formula service credit shall determine the amount of the annuity to
61.2which the member qualifying therefor is entitled for service rendered before July 1, 2006:
61.10 For service rendered on or after July 1, 2006, the average salary as defined in section
61.12determines the amount the annuity to which the member qualifying therefor is entitled:
61.20 (c)(i) This paragraph applies only to a person who first became a member of the
61.21association or a member of a pension fund listed in section
61.22July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
61.23conjunction with this paragraph than when calculated under paragraph (d), in conjunction
61.24with paragraph (e).
61.25 (ii) Where any member retires prior to normal retirement age under a formula
61.26annuity, the member shall be paid a retirement annuity in an amount equal to the normal
61.27annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
61.28that the member is under normal retirement age at the time of retirement except that for
61.29any member who has 30 or more years of allowable service credit, the reduction shall be
61.30applied only for each month that the member is under age 62.
61.31 (iii) Any member whose attained age plus credited allowable service totals 90 years
61.32is entitled, upon application, to a retirement annuity in an amount equal to the normal
61.33annuity provided in paragraph (b), without any reduction by reason of early retirement.
61.34 (d) This paragraph applies to a member who has become at least 55 years old and
61.35first became a member of the association after June 30, 1989, and to any other member
61.36who has become at least 55 years old and whose annuity amount when calculated
61.37under this paragraph and in conjunction with paragraph (e), is higher than it is when
61.38calculated under paragraph (b), in conjunction with paragraph (c). For a basic member,
61.39the average salary, as defined in section
62.1percent
62.2member
62.3basic member is entitled. The annuity of a basic member who was a member of the
62.4former Minneapolis Teachers Retirement Fund Association as of June 30, 2006, must be
62.5determined according to the annuity formula under the articles of incorporation of the
62.6former Minneapolis Teachers Retirement Fund Association in effect as of that date. For a
62.7coordinated member, the average salary, as defined in section
62.8multiplied by
62.9service rendered before July 1, 2006, and by
62.10
62.11amount of the retirement annuity to which the coordinated member is entitled.
62.12 (e) This paragraph applies to a person who has become at least 55 years old and first
62.13becomes a member of the association after June 30, 1989, and to any other member who
62.14has become at least 55 years old and whose annuity is higher when calculated under
62.15paragraph (d) in conjunction with this paragraph than when calculated under paragraph
62.16(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
62.17before the normal retirement age shall be paid the normal annuity provided in paragraph
62.18(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that would
62.19be payable to the employee if the employee deferred receipt of the annuity and the annuity
62.20amount were augmented at an annual rate of three percent compounded annually from the
62.21day the annuity begins to accrue until the normal retirement age if the employee became
62.22an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
62.23becomes an employee after June 30, 2006.
62.24 (f) No retirement annuity is payable to a former employee with a salary that exceeds
62.2595 percent of the governor's salary unless and until the salary figures used in computing
62.26the highest five successive years average salary under paragraph (a) have been audited by
62.27the Teachers Retirement Association and determined by the executive director to comply
62.28with the requirements and limitations of section
62.29 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
62.30 Subd. 4. Computation of normal coordinated retirement annuity; St. Paul
62.31fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
62.32Retirement Fund Association.
62.33(b) The normal coordinated retirement annuity is an amount equal to a retiring
62.34coordinated member's average salary under section
62.35by the retirement annuity formula percentage.
63.1(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
63.2became a member or a member in a pension fund listed in section
63.3before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
63.4higher annuity amount, in which case paragraph (d) will apply. The retirement annuity
63.5formula percentage for purposes of this paragraph is
63.6
63.7years and
63.8coordinated service thereafter.
63.9(d) This paragraph applies to a person who has become at least 55 years old and who
63.10first becomes a member after June 30, 1989, and to any other member who has become
63.11at least 55 years old and whose annuity amount, when calculated under this paragraph
63.12and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
63.13(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
63.14percentage for purposes of this paragraph is
63.15
63.16 Sec. 16. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
63.17 Subd. 4a. Computation of normal coordinated retirement annuity; Duluth
63.18fund. (a) This subdivision applies to the new law coordinated program of the Duluth
63.19Teachers Retirement Fund Association.
63.20(b) The normal coordinated retirement annuity is an amount equal to a retiring
63.21coordinated member's average salary under section
63.22by the retirement annuity formula percentage.
63.23(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
63.24became a member or a member in a pension fund listed in section
63.25before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
63.26higher annuity amount, in which case paragraph (d) applies. The retirement annuity
63.27formula percentage for purposes of this paragraph is
63.28
63.29years and
63.30year of coordinated service.
63.31(d) This paragraph applies to a person who is at least 55 years old and who first
63.32becomes a member after June 30, 1989, and to any other member who is at least 55 years
63.33old and whose annuity amount, when calculated under this paragraph and in conjunction
63.34with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
63.35with subdivision 6. The retirement annuity formula percentage for purposes of this
64.1paragraph is
64.2coordinated service.
64.3 Sec. 17. Minnesota Statutes 2012, section 356.30, subdivision 1, is amended to read:
64.4 Subdivision 1. Eligibility; computation of annuity. (a) Notwithstanding any
64.5provisions of the laws governing the retirement plans enumerated in subdivision 3, a
64.6person who has met the qualifications of paragraph (b) may elect to receive a retirement
64.7annuity from each enumerated retirement plan in which the person has at least one-half
64.8year of allowable service, based on the allowable service in each plan, subject to the
64.9provisions of paragraph (c).
64.10(b) A person may receive, upon retirement, a retirement annuity from each
64.11enumerated retirement plan in which the person has at least one-half year of allowable
64.12service, and augmentation of a deferred annuity calculated at the appropriate rate under
64.13the laws governing each public pension plan or fund named in subdivision 3, based on
64.14the date of the person's initial entry into public employment from the date the person
64.15terminated all public service if:
64.16(1) the person has allowable service in any two or more of the enumerated plans;
64.17(2) the person has sufficient allowable service in total that equals or exceeds the
64.18applicable service credit vesting requirement of the retirement plan with the longest
64.19applicable service credit vesting requirement; and
64.20(3) the person has not begun to receive an annuity from any enumerated plan or the
64.21person has made application for benefits from each applicable plan and the effective
64.22dates of the retirement annuity with each plan under which the person chooses to receive
64.23an annuity are within a one-year period.
64.24(c) The retirement annuity from each plan must be based upon the allowable service,
64.25accrual rates, and average salary in the applicable plan except as further specified or
64.26modified in the following clauses:
64.27(1) the laws governing annuities must be the law in effect on the date of termination
64.28from the last period of public service under a covered retirement plan with which the person
64.29earned a minimum of one-half year of allowable service credit during that employment;
64.30(2) the "average salary" on which the annuity from each covered plan in which
64.31the employee has credit in a formula plan must be based on the employee's highest five
64.32successive years of covered salary during the entire service in covered plans;
64.33(3) the accrual rates to be used by each plan must be those percentages prescribed by
64.34each plan's formula as continued for the respective years of allowable service from one
64.35plan to the next, recognizing all previous allowable service with the other covered plans;
65.1(4) the allowable service in all the plans must be combined in determining eligibility
65.2for and the application of each plan's provisions in respect to reduction in the annuity
65.3amount for retirement prior to normal retirement age; and
65.4(5) the annuity amount payable for any allowable service under a nonformula plan
65.5of a covered plan must not be affected, but such service and covered salary must be used
65.6in the above calculation.
65.7(d) This section does not apply to any person whose final termination from the last
65.8public service under a covered plan was before May 1, 1975.
65.9(e) For the purpose of computing annuities under this section, the accrual rates
65.10used by any covered plan, except the public employees police and fire plan, the judges
65.11retirement fund, and the State Patrol retirement plan, must not exceed
65.12
65.13fraction thereof. The formula percentage used by the judges retirement fund must not
65.14exceed
65.15year of service for any year of service or fraction thereof. The accrual rate used by the
65.16public employees police and fire plan and the State Patrol retirement plan must not exceed
65.17
65.18service for any year of service or fraction thereof. The accrual rate or rates used by the
65.19legislators retirement plan must not exceed 2.5 percent, but this limit does not apply to the
65.20adjustment provided under section
65.21(f) Any period of time for which a person has credit in more than one of the covered
65.22plans must be used only once for the purpose of determining total allowable service.
65.23(g) If the period of duplicated service credit is more than one-half year, or the person
65.24has credit for more than one-half year, with each of the plans, each plan must apply its
65.25formula to a prorated service credit for the period of duplicated service based on a fraction
65.26of the salary on which deductions were paid to that fund for the period divided by the total
65.27salary on which deductions were paid to all plans for the period.
65.28(h) If the period of duplicated service credit is less than one-half year, or when
65.29added to other service credit with that plan is less than one-half year, the service credit
65.30must be ignored and a refund of contributions made to the person in accord with that
65.31plan's refund provisions.
65.32 Sec. 18. Minnesota Statutes 2012, section 356.315, subdivision 9, is amended to read:
65.33 Subd. 9. Future benefit accrual rate increases. After January 2, 1998, benefit
65.34accrual rate increases under
65.353; 352.93, subdivision 3; 352.95, subdivision 1; 352B.08, subdivision 2; 352B.10,
66.1subdivision 1; 353.29, subdivision 3; 353.651, subdivision 3; 353.656, subdivision
66.21, 1a, or 3a; 353E.04, subdivision 3; 353E.06, subdivision 1; 354.44, subdivision 6;
66.3354A.31, subdivision 4 or 4a; 356.30, subdivision 1; 490.121, subdivision 22; or 490.124,
66.4subdivision 1, must apply only to allowable service or formula service rendered after the
66.5effective date of the benefit accrual rate increase.
66.6 Sec. 19. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
66.7 Subd. 22. Service credit limit. "Service credit limit" means the greater of: (1) 24
66.8years of allowable service under this chapter; or (2) for judges with allowable service
66.9rendered before July 1, 1980, the number of years of allowable service under chapter 490,
66.10which, when multiplied by the percentage
66.11 3.2, whichever is applicable to each year of service, equals 76.8.
66.12 Sec. 20. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
66.13 Subdivision 1. Basic retirement annuity. (a) Except as qualified hereinafter from
66.14and after the mandatory retirement date, the normal retirement date, the early retirement
66.15date, or one year from the disability retirement date, as the case may be, a retiring judge is
66.16eligible to receive a retirement annuity from the judges' retirement fund.
66.17 (b) The retirement annuity is an amount equal to: (1)
66.18
66.19that result then multiplied by the number of years and fractions of years of allowable
66.20service rendered before July 1, 1980; plus (2)
66.21
66.22multiplied by the number of years and fractions of years of allowable service rendered
66.23after June 30, 1980.
66.24 (c) Service that exceeds the service credit limit in section
66.25must be excluded in calculating the retirement annuity, but the compensation earned by
66.26the judge during this period of judicial service must be used in determining a judge's final
66.27average compensation and calculating the retirement annuity.
66.28 Sec. 21. REPEALER.
66.29Minnesota Statutes 2012, section 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a,
66.306, 7, and 8, are repealed.
66.31 Sec. 22. EFFECTIVE DATE.
66.32Sections 1 to 21 are effective the day following final enactment.
67.4 Section 1. Minnesota Statutes 2012, section 6.495, subdivision 1, is amended to read:
67.5 Subdivision 1. Audit and examinations. All powers and duties conferred and
67.6imposed upon the state auditor with respect to state, county, and first-class city officers,
67.7institutions, and property are hereby extended to the various fire
67.8associations in the state. The state auditor shall annually audit the special and general
67.9funds of the relief association or, at the request of the board of trustees or the municipality,
67.10the state auditor may contract for an annual audit by a certified public accountant. The
67.11state auditor may determine that an annual audit is not necessary, in which case the state
67.12auditor shall develop a plan for examination of unaudited relief associations, and shall
67.13prescribe suitable systems of accounts and budgeting, and forms, books, and instructions
67.14concerning the same.
67.15Copies of the written report of the state auditor on the financial condition and
67.16accounts of the relief association
67.17relief association and the governing body of the municipality associated with the relief
67.18association. If the report discloses malfeasance, misfeasance, or nonfeasance with regard
67.19to relief association funds, copies thereof
67.20attorney in the city or county in which the relief association is located, and these officials of
67.21the law shall institute proceedings, civil or criminal, as the law and public interest require.
67.22 Sec. 2. Minnesota Statutes 2012, section 6.495, subdivision 3, is amended to read:
67.23 Subd. 3. Report to commissioner of revenue. The state auditor shall file with
67.24the commissioner of revenue a financial compliance report certifying for each relief
67.25association:
67.26(1) the completion of the annual financial report required
67.28subdivision 1; and
67.29(2) the receipt of any actuarial valuations required
67.30
67.31 Sec. 3. Minnesota Statutes 2012, section 6.67, is amended to read:
67.326.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
67.33 Whenever a public accountant in the course of auditing the books and affairs of a
67.34political subdivision or a local public pension plan governed by
68.2pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or
68.3employee in the conduct of duties and affairs, the public accountant shall promptly make
68.4a report of such discovery to the state auditor and the county attorney of the county in
68.5which the governmental unit is situated and the public accountant shall also furnish a
68.6copy of the report of audit upon completion to said officers. The county attorney shall
68.7act on such report in the same manner as required by law for reports made to the county
68.8attorney by the state auditor.
68.9 Sec. 4. Minnesota Statutes 2012, section 13D.01, subdivision 1, is amended to read:
68.10 Subdivision 1. In executive branch, local government. All meetings, including
68.11executive sessions, must be open to the public
68.12(a) of a state
68.13(1) agency,
68.14(2) board,
68.15(3) commission, or
68.16(4) department,
68.17when required or permitted by law to transact public business in a meeting;
68.18(b) of the governing body of a
68.19(1) school district however organized,
68.20(2) unorganized territory,
68.21(3) county,
68.22(4) statutory or home rule charter city,
68.23(5) town, or
68.24(6) other public body;
68.25(c) of any
68.26(1) committee,
68.27(2) subcommittee,
68.28(3) board,
68.29(4) department, or
68.30(5) commission,
68.31of a public body; and
68.32(d) of the governing body or a committee of:
68.33(1) a statewide public pension plan defined in section
68.34(2) a local public pension plan governed by
68.35or chapter 354A, or sections 31 to 42.
69.1 Sec. 5. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
69.2 Subdivision 1. Definitions. Unless the language or context clearly indicates that
69.3a different meaning is intended, the following words and terms, for the purposes of this
69.4chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
69.5 (a) "Commissioner" means the commissioner of revenue.
69.6 (b) "Municipality" means:
69.7 (1) a home rule charter or statutory city;
69.8 (2) an organized town;
69.9 (3) a park district subject to chapter 398;
69.10 (4) the University of Minnesota;
69.11 (5) for purposes of the fire state aid program only, an American Indian tribal
69.12government entity located within a federally recognized American Indian reservation;
69.13 (6) for purposes of the police state aid program only, an American Indian tribal
69.14government with a tribal police department which exercises state arrest powers under
69.15section
69.16 (7) for purposes of the police state aid program only, the Metropolitan Airports
69.17Commission; and
69.18 (8) for purposes of the police state aid program only, the Department of Natural
69.19Resources and the Department of Public Safety with respect to peace officers covered
69.20under chapter 352B.
69.21 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
69.22commissioner containing space for reporting by insurers of fire, lightning, sprinkler
69.23leakage and extended coverage premiums received upon risks located or to be performed
69.24in this state less return premiums and dividends.
69.25 (d) "Firetown" means the area serviced by any municipality having a qualified fire
69.26department or a qualified incorporated fire department having a subsidiary volunteer
69.27firefighters' relief association.
69.28 (e) "Market value" means latest available market value of all property in a taxing
69.29jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
69.30taxation obtained from information which appears on abstracts filed with the commissioner
69.31of revenue or equalized by the State Board of Equalization.
69.32 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
69.33commissioner for reporting by each fire and casualty insurer of all premiums received
69.34upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
69.35during the preceding calendar year, with reference to insurance written for insuring against
69.36the perils contained in auto insurance coverages as reported in the Minnesota business
70.1schedule of the annual financial statement which each insurer is required to file with
70.2the commissioner in accordance with the governing laws or rules less return premiums
70.3and dividends.
70.4 (g) "Peace officer" means any person:
70.5 (1) whose primary source of income derived from wages is from direct employment
70.6by a municipality or county as a law enforcement officer on a full-time basis of not less
70.7than 30 hours per week;
70.8 (2) who has been employed for a minimum of six months prior to December 31
70.9preceding the date of the current year's certification under subdivision 2, clause (b);
70.10 (3) who is sworn to enforce the general criminal laws of the state and local ordinances;
70.11 (4) who is licensed by the Peace Officers Standards and Training Board and is
70.12authorized to arrest with a warrant; and
70.13 (5) who is a member of the State Patrol retirement plan or the public employees
70.14police and fire fund.
70.15 (h) "Full-time equivalent number of peace officers providing contract service" means
70.16the integral or fractional number of peace officers which would be necessary to provide
70.17the contract service if all peace officers providing service were employed on a full-time
70.18basis as defined by the employing unit and the municipality receiving the contract service.
70.19 (i) "Retirement benefits other than a service pension" means any disbursement
70.20authorized under section
70.21 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
70.22(1) for the police state aid program
70.23(i) the person who was elected or appointed to the specified position or, in the
70.24absence of the person, another person who is designated by the applicable governing body;
70.25(ii) in a park district, the secretary of the board of park district commissioners;
70.26(iii) in the case of the University of Minnesota, the official designated by the Board
70.27of Regents;
70.28(iv) for the Metropolitan Airports Commission, the person designated by the
70.29commission;
70.30(v) for the Department of Natural Resources or the Department of Public Safety, the
70.31respective commissioner;
70.32(vi) for a tribal police department which exercises state arrest powers under section
70.34Indian tribal government; and
70.35(2) for the fire state aid program and fire relief association financial reports, the
70.36person who was elected or appointed to the specified position, or, for governmental
71.1entities other than counties, if the governing body of the governmental entity designates
71.2the position to perform the function, the chief financial official of the governmental entity
71.3or the chief administrative official of the governmental entity.
71.4(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
71.5retirement plan established by chapter 353G.
71.6 Sec. 6. Minnesota Statutes 2012, section 69.011, subdivision 2, is amended to read:
71.7 Subd. 2. Qualification for fire or police state aid. (a) Unless retirement coverage
71.8is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in
71.9order to qualify to receive fire state aid, on or before March 15 annually, in conjunction
71.10with the financial report required pursuant to section
71.11having a duly organized fire department as provided in subdivision 4, or the secretary of
71.12each independent nonprofit firefighting corporation having a subsidiary incorporated
71.13firefighters' relief association, whichever is applicable, and the fire chief, shall jointly
71.14certify the existence of the municipal fire department or of the independent nonprofit
71.15firefighting corporation, whichever is applicable, which meets the minimum qualification
71.16requirements set forth in this subdivision, and the fire personnel and equipment of the
71.17municipal fire department or the independent nonprofit firefighting corporation as of the
71.18preceding December 31.
71.19(b) Where retirement coverage is provided by the voluntary statewide lump-sum
71.20volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or
71.21before March 15, annually, the executive director of the Public Employees Retirement
71.22Association shall certify the existence of that coverage for each municipality and the
71.23municipal clerk or independent nonprofit firefighting corporation secretary, whichever
71.24applies, and the applicable fire chief shall certify the fire personnel and fire department
71.25equipment as of the preceding December 31.
71.26
71.27
71.28
71.29
71.30
71.31
71.32
71.33
71.34
72.1
72.2
72.3
72.4order to qualify to receive police state aid, the clerk of each municipality and the auditor of
72.5each county employing one or more peace officers as defined in subdivision 1, clause (g),
72.6shall certify the number of such peace officers to the commissioner on forms prescribed by
72.7the commissioner. Credit for officers employed less than a full year must be apportioned.
72.8Each full month of employment of a qualifying officer during the calendar year entitles the
72.9employing municipality or county to credit for 1/12 of the payment for employment of a
72.10peace officer for the entire year. For purposes of sections
72.11of a peace officer commences when the peace officer is entered on the payroll of the
72.12respective municipal police department or county sheriff's department. No peace officer
72.13may be included in the certification of the number of peace officers by more than one
72.14
72.15(d) A certification made under this subdivision must be filed with the commissioner,
72.16must be made on a form prescribed by the commissioner, and must include any other facts
72.17that the commissioner requires.
72.18 Sec. 7. Minnesota Statutes 2012, section 69.011, subdivision 3, is amended to read:
72.19 Subd. 3. Failure to file certificate deemed waiver. (a) If a certification required by
72.20this section is not filed with the commissioner by the due date prescribed by this section,
72.21the commissioner shall notify the county, the municipality, or the nonprofit firefighting
72.22corporation that a portion or all of its current year aid will be forfeited if the certification
72.23is not received within ten days.
72.24(b) The amount of aid forfeited is equal to the amount of state police aid or state fire
72.25aid determined for the county, the municipality, or the nonprofit firefighting corporation
72.26for the current year, multiplied by five percent for each week or fraction of a week that
72.27this certification is late. The penalty
72.28postmark date of the commissioner's notification as required under this subdivision. All
72.29forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the
72.30certificate form
72.31 Sec. 8. Minnesota Statutes 2012, section 69.011, subdivision 4, is amended to read:
72.32 Subd. 4. Qualification for fire state aid.
72.33qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and
72.34if it meets the specific requirements of paragraph (c).
73.1(b) Minimum qualifications for fire state aid include the following:
73.2(1) having for more than one year an organized fire department and officially
73.3established by the governing body of the municipality or an independent nonprofit
73.4firefighting corporation created under the nonprofit corporation act of this state and
73.5operating exclusively for firefighting purposes and providing retirement and relief benefits
73.6to its members
73.7(2) having a separate subsidiary incorporated firefighter's relief
73.8 association providing retirement and relief benefits, or participating in the voluntary
73.9statewide lump-sum volunteer firefighter retirement plan
73.10
73.11public employees police and fire retirement plan.
73.12(c) Minimum requirements for fire state aid also include the following or their
73.13equivalent as determined by the state fire marshal
73.14
73.15fire chief
73.16
73.17in firefighting tactics and in the use, care, and operation of all fire apparatus and
73.18equipment
73.19
73.20larger water tank, 300 feet of one inch or larger fire hose in two lines with combination
73.21spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent,
73.22dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars,
73.23axes, lanterns, fire coats, helmets, and boots
73.24
73.25facilities for care of hose and equipment
73.26
73.27or with electric siren and suitable means of sounding an alarm
73.28
73.29wherein the fire department is located,
73.30motorized apparatus to make the response
73.31
73.32 Sec. 9. Minnesota Statutes 2012, section 69.021, subdivision 1, is amended to read:
73.33 Subdivision 1. Minnesota Firetown Premium Report and Minnesota Aid to
73.34Police Premium Report. The commissioner shall, at the time of mailing tax forms,
73.35send blank copies of the Minnesota Firetown Premium Report and when applicable the
74.1Minnesota Aid to Police Premium Report to each insurer, including township and farmers
74.2mutual insurance companies licensed to write insurance as described in section
74.3subdivision 1
74.4for the insurers name, address, gross premiums less return premiums, dividends, net
74.5premiums, certification and other facts that the commissioner may require.
74.6 Sec. 10. Minnesota Statutes 2012, section 69.021, subdivision 2, is amended to read:
74.7 Subd. 2. Report of premiums. (a) Each insurer, including township and farmers
74.8mutual insurers where applicable, shall return to the commissioner the reports described in
74.9subdivision 1 certified by its secretary and president or chief financial officer.
74.10(b) The Minnesota Firetown Premium Report
74.11statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and
74.12extended coverage insurance of all domestic mutual insurers and the total premiums for
74.13all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all
74.14other insurers, less return premiums and dividends received by them on that business
74.15written or done during the preceding calendar year upon property located within the state
74.16or brought into the state for temporary use. The fire and extended coverage portion of
74.17multiperil and multiple peril package premiums and all other combination premiums
74.18 must be determined by applying percentages determined by the commissioner or by rating
74.19bureaus recognized by the commissioner.
74.20(c) The Minnesota Aid to Police Premium Report
74.21accurate statement of the total premiums, less return premiums and dividends, on all direct
74.22business received by such insurer in this state, or by its agents for it, in cash or otherwise,
74.23during the preceding calendar year, with reference to insurance written for perils described
74.24in section
74.25 Sec. 11. Minnesota Statutes 2012, section 69.021, subdivision 3, is amended to read:
74.26 Subd. 3. Penalty for fraudulent, incorrect, incomplete returns and late filing of
74.27report. (a) When it appears to the commissioner that any insurer has made an incomplete or
74.28inaccurate report, the commissioner shall return the report and demand that a complete and
74.29accurate report be filed. If the insurer fails to file a report on or before March 1, annually,
74.30the insurer
74.31thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a
74.32corrected report within 30 days after demand, the insurer is liable for the penalties provided
74.33in
75.1(b) Any insurer
75.2
75.3determined by the commissioner, and additionally the commissioner of commerce may
75.4revoke the insurer's certificate of authority.
75.5(c) Any person whose duty it is to make the report who fails or refuses to make it
75.6within 30 days after notification by the commissioner shall be fined an amount of not
75.7more than $1,000.
75.8(d) Failure of the insurer to receive a reporting form
75.9from filing the report.
75.10 Sec. 12. Minnesota Statutes 2012, section 69.021, subdivision 4, is amended to read:
75.11 Subd. 4. Determination of qualified state aid recipients; certification to
75.12commissioner of management and budget. (a) The commissioner shall determine
75.13which municipalities and independent nonprofit firefighting corporations are qualified to
75.14receive fire state aid directly or are qualified to receive the benefit of fire state aid paid
75.15to the voluntary statewide lump-sum volunteer firefighter retirement plan and which
75.16municipalities and counties are qualified to receive police state aid.
75.17(b) The commissioner shall determine qualification for state aid upon receipt of:
75.18(1) the fire department personnel and equipment certification or the police department
75.19and qualified peace officers certificate, whichever applies, required under section
75.20(2) the financial compliance report required under section
75.21applicable; and
75.22(3) any other relevant information which comes to the attention of the commissioner.
75.23(c) Upon completion of the determination, on or before October 1, the commissioner
75.24shall calculate the amount of:
75.25(1) the police state aid which each county or municipality is to receive under
75.26subdivisions 5, 6, 7a, and 10; and
75.27(2) the fire state aid which each municipality or nonprofit firefighting corporation
75.28is to receive under subdivisions 5 and 7.
75.29(d) The commissioner shall certify to the commissioner of management and budget
75.30the name of each county or municipality, and the amount of state aid which each county or
75.31municipality is to receive, in the case of police state aid. The commissioner shall certify to
75.32the commissioner of management and budget the name of each municipality or independent
75.33nonprofit firefighting corporation and the amount of state aid which each municipality
75.34or independent nonprofit firefighting corporation is to receive directly or the amount of
76.1state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is
76.2qualified to receive on behalf of the municipality or corporation, in the case of fire state aid.
76.3 Sec. 13. Minnesota Statutes 2012, section 69.021, subdivision 5, is amended to read:
76.4 Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
76.5apportionment, before the addition of the minimum fire state aid allocation amount under
76.6subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
76.7upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
76.8the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
76.9must be reduced by the amount required to pay the state auditor's costs and expenses of
76.10the audits or exams of the firefighters relief associations.
76.11The total amount for apportionment in respect to fire state aid must not be less than
76.12two percent of the premiums reported to the commissioner by insurers on the Minnesota
76.13Firetown Premium Report after subtracting the following amounts:
76.14(1) the amount required to pay the state auditor's costs and expenses of the audits or
76.15exams of the firefighters relief associations; and
76.16(2) one percent of the premiums reported by town and farmers' mutual insurance
76.17companies and mutual property and casualty companies with total assets of $5,000,000 or
76.18less.
76.19(b) The total amount for apportionment as police state aid is equal to 104 percent
76.20of the amount of premium taxes paid to the state on the premiums reported to the
76.21commissioner by insurers on the Minnesota Aid to Police Premium Report
76.22
76.23
76.24state aid program must not be less than two percent of the amount of premiums reported
76.25to the commissioner by insurers on the Minnesota Aid to Police Premium Report
76.26
76.27
76.28(c) The commissioner shall calculate the percentage of increase or decrease reflected
76.29in the apportionment over or under the previous year's available state aid using the same
76.30premiums as a basis for comparison.
76.31(d) In addition to the amount for apportionment of police state aid under paragraph
76.32(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
76.33pay this increase is annually appropriated from the general fund.
76.34 Sec. 14. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
77.1 Subd. 7. Apportionment of fire state aid to municipalities and relief associations.
77.2(a) The commissioner shall apportion the fire state aid relative to the premiums reported
77.3on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
77.4and/or firefighters relief association qualified under section 69.011, subdivision 4.
77.5(b) The commissioner shall calculate an initial fire state aid allocation amount for each
77.6municipality or fire department under paragraph (c) and, if applicable, a minimum fire state
77.7aid allocation amount for each municipality or fire department under paragraph (d). The
77.8municipality or fire department must
77.9(c) The initial fire state aid allocation amount is the amount available for
77.10apportionment as fire state aid under subdivision 5, without the inclusion of any additional
77.11funding amount to support a minimum fire state aid amount under section
77.12subdivision 3
77.13official statewide federal census for each fire town and one-half in proportion to the market
77.14value of each fire town, including (1) the market value of tax-exempt property and (2) the
77.15market value of natural resources lands receiving in lieu payments under sections
77.17municipal fire departments furnishing fire protection to other cities, towns, or townships
77.18as evidenced by valid fire service contracts filed with the commissioner, the distribution
77.19must be adjusted proportionately to take into consideration the crossover fire protection
77.20service. Necessary adjustments must be made to subsequent apportionments. In the case
77.21of municipalities or independent fire departments qualifying for the aid, the commissioner
77.22shall calculate the state aid for the municipality or relief association on the basis of the
77.23population and the market value of the area furnished fire protection service by the fire
77.24department as evidenced by duly executed and valid fire service agreements filed with the
77.25commissioner. If one or more fire departments are furnishing contracted fire service to a
77.26city, town, or township, only the population and market value of the area served by each
77.27fire department may be considered in calculating the state aid and the fire departments
77.28furnishing service shall enter into an agreement apportioning among themselves the
77.29percent of the population and the percent of the market value of each shared service area.
77.30The agreement must be in writing and must be filed with the commissioner.
77.31(d) The minimum fire state aid allocation amount is the amount in addition to the
77.32initial fire state allocation amount that is derived from any additional funding amount
77.33to support a minimum fire state aid amount under section
77.34allocated to municipalities with volunteer firefighters relief associations or covered by the
77.35voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
77.36of active volunteer firefighters who are members of the relief association as reported
78.1in the annual financial reporting for the calendar year 1993 to the Office of the State
78.2Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
78.3fire departments with volunteer firefighters relief associations receive in total at least a
78.4minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
78.530 firefighters. If a relief association is established after calendar year 1993 and before
78.6calendar year 2000, the number of active volunteer firefighters who are members of the
78.7relief association as reported in the annual financial reporting for calendar year 1998
78.8to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
78.9shall be used in this determination. If a relief association is established after calendar
78.10year 1999, the number of active volunteer firefighters who are members of the relief
78.11association as reported in the first annual financial reporting submitted to the Office of
78.12the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
78.13determination. If a relief association is terminated as a result of providing retirement
78.14coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
78.15firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
78.16of the municipality covered by the statewide plan as certified by the executive director of
78.17the Public Employees Retirement Association to the commissioner and the state auditor,
78.18but not to exceed 30 active firefighters, must be used in this determination.
78.19(e) Unless the firefighters of the applicable fire department are members of the
78.20voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
78.21be paid to the treasurer of the municipality where the fire department is located and the
78.22treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
78.23the aid to the relief association if the relief association has filed a financial report with the
78.24treasurer of the municipality and has met all other statutory provisions pertaining to the
78.25aid apportionment. If the firefighters of the applicable fire department are members of
78.26the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
78.27must be paid to the executive director of the Public Employees Retirement Association
78.28and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
78.29(f) The commissioner may make rules to permit the administration of the provisions
78.30of this section.
78.31(g) Any adjustments needed to correct prior misallocations must be made to
78.32subsequent fire state aid apportionments.
78.33 Sec. 15. Minnesota Statutes 2012, section 69.021, subdivision 7a, is amended to read:
78.34 Subd. 7a. Apportionment of police state aid. (a) Subject to the reduction provided
78.35for under subdivision 10, the commissioner shall apportion the police state aid to each
79.1municipality
79.2Public Safety in the following manner:
79.3(1) for all municipalities maintaining police departments, counties, the Department
79.4of Natural Resources, and the Department of Public Safety, the police state aid must be
79.5distributed in proportion to the relationship that the total number of peace officers, as
79.6determined under section
79.7
79.8proportional or fractional number who were employed less than 12 months bears to the total
79.9number of peace officers employed by all municipalities
79.10Natural Resources and Public Safety, subject to any reduction under subdivision 10;
79.11(2) for each municipality which contracts with the county for police service, a
79.12proportionate amount of the state aid distributed to the county based on the full-time
79.13equivalent number of peace officers providing contract service to that municipality must
79.14be credited against the municipality's contract obligation; and
79.15(3) for each municipality which contracts with another municipality for police
79.16service, a proportionate amount of the state aid distributed to the municipality providing
79.17contract service based on the full-time equivalent number of peace officers providing
79.18contract service to that municipality on a full-time equivalent basis must be credited
79.19against the contract obligation of the municipality receiving contract service.
79.20(b) Any necessary additional adjustments must be made to subsequent police state
79.21aid apportionments.
79.22 Sec. 16. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
79.23 Subd. 8. Population and market value. (a) In computations relating to fire state aid
79.24requiring the use of population figures, only official statewide federal census figures
79.25
79.26census must not be taken into consideration.
79.27(b) In calculations relating to fire state aid requiring the use of market value property
79.28figures, only the latest available market value property figures may be used.
79.29 Sec. 17. Minnesota Statutes 2012, section 69.021, subdivision 9, is amended to read:
79.30 Subd. 9. Appeal. (a) In the event that a municipality, a county, a fire relief
79.31association,
79.32Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter
79.33retirement plan, feels itself to be aggrieved, it may request the commissioner to review
80.1and adjust the apportionment of funds within the county in the case of police state aid, or
80.2within the state in the case of fire state aid.
80.3(b) The decision of the commissioner is subject to appeal, review, and adjustment by
80.4the district court in the county in which the applicable municipality
80.5
80.6the Department of Natural Resources, the Department of Public Safety, or the voluntary
80.7statewide lump-sum volunteer firefighter retirement plan.
80.8 Sec. 18. Minnesota Statutes 2012, section 69.021, subdivision 10, is amended to read:
80.9 Subd. 10. Reduction in police state aid apportionment. (a) The commissioner of
80.10revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph
80.11(b), 6, and 7a, for eligible employer units by the amount of any excess police state aid.
80.12(b) "Excess police state aid" is:
80.13(1) for counties and for municipalities in which police retirement coverage is
80.14provided wholly by the public employees police and fire fund and all police officers are
80.15members of the plan governed by sections
80.16employer's total prior calendar year obligation as defined in paragraph (c), as certified by
80.17the executive director of the Public Employees Retirement Association;
80.18
80.19
80.20
80.21
80.22
80.23
80.24
80.25
80.26
80.27
80.28
80.29
80.30
80.31
80.32
80.33
80.34
80.35
81.1
81.2
81.3
81.4of Fairmont and Minneapolis, the amount in excess of the employer's total prior calendar
81.5year obligation as defined in paragraph (c), as certified by the executive director of the
81.6public employees retirement association, plus the amount of
81.7
81.8
81.9
81.10
81.11
81.12subdivision 6, or 353.669, subdivision 6;
81.13
81.14commission's total prior calendar year obligation as defined in paragraph (c), as certified
81.15by the executive director of the Public Employees Retirement Association; and
81.16
81.17Safety, the amount in excess of the employer's total prior calendar year obligation under
81.18section
81.20State Retirement System.
81.21(c) The employer's total prior calendar year obligation with respect to the public
81.22employees police and fire plan under paragraph (b), clause (1), is the total prior calendar
81.23year obligation under section
81.24section
81.25section
81.263
81.27calendar year amount:
82.40(d) The total amount of excess police state aid must be deposited in the excess
82.41police state-aid account in the general fund, administered and distributed as provided
82.42in subdivision 11.
83.1 Sec. 19. Minnesota Statutes 2012, section 69.021, subdivision 11, is amended to read:
83.2 Subd. 11. Excess police state-aid holding account. (a) The excess police state-aid
83.3holding account is established in the general fund. The excess police state-aid holding
83.4account must be administered by the commissioner.
83.5 (b) Excess police state aid determined according to subdivision 10, must be
83.6deposited annually in the excess police state-aid holding account.
83.7 (c) From the balance in the excess police state-aid holding account, $900,000 must
83.8be canceled annually to the general fund.
83.9
83.10
83.11
83.12
83.13
83.14state-aid holding account remaining after the
83.15 paragraph (c)
83.17
83.18after the deductions under paragraphs (c)
83.19 Sec. 20. Minnesota Statutes 2012, section 69.031, subdivision 1, is amended to read:
83.20 Subdivision 1. Commissioner's warrant. (a) The commissioner of management
83.21and budget shall issue to the Public Employees Retirement Association on behalf of
83.22a municipality or independent nonprofit firefighting corporation that is a member of the
83.23voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G,
83.24to the Department of Natural Resources, the Department of Public Safety, or
83.25county, municipality, or independent nonprofit firefighting corporation certified to the
83.26commissioner of management and budget by the commissioner a warrant for an amount
83.27equal to the amount of fire state aid or police state aid, whichever applies, certified for the
83.28applicable state aid recipient by the commissioner under section
83.29(b) Fire state aid and police state aid is payable on October 1 annually. The amount
83.30of state aid due and not paid by October 1 accrues interest payable to the state aid recipient
83.31at the rate of one percent for each month or part of a month that the amount remains
83.32unpaid after October 1.
83.33 Sec. 21. Minnesota Statutes 2012, section 69.031, subdivision 3, is amended to read:
84.1 Subd. 3. Appropriations. There is hereby appropriated annually from the state
84.2general fund to the commissioner of revenue
84.3police state aid payments and the fire state aid payments specified in this section and
84.4section
84.5 Sec. 22. Minnesota Statutes 2012, section 69.031, subdivision 5, is amended to read:
84.6 Subd. 5. Deposit of state aid. (a) If the municipality or the independent nonprofit
84.7firefighting corporation is covered by the voluntary statewide lump-sum volunteer
84.8firefighter retirement plan under chapter 353G, the executive director shall credit the fire
84.9state aid against future municipal contribution requirements under section
84.10shall notify the municipality or independent nonprofit firefighting corporation of the fire
84.11state aid so credited at least annually. If the municipality or the independent nonprofit
84.12firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.13firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt,
84.14transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief
84.15association if there is one organized and the association has filed a financial report with the
84.16municipality. If the relief association has not filed a financial report with the municipality,
84.17the municipal treasurer shall delay transmission of the fire state aid to the relief association
84.18until the complete financial report is filed. If the municipality or independent nonprofit
84.19firefighting corporation is not covered by the voluntary statewide lump-sum volunteer
84.20firefighter retirement plan, if there is no relief association organized, or if the association
84.21has dissolved or has been removed as trustees of state aid, then the treasurer of the
84.22municipality shall deposit the money in the municipal treasury and the money may be
84.23disbursed only for the purposes and in the manner set forth in section
84.24payment of the employer contribution requirement with respect to firefighters covered by
84.25the public employees police and fire retirement plan under section
84.26
84.27
84.28
84.29
84.30
84.31
84.32
84.33
84.34public employees police and fire fund and all peace officers are members of the fund,
84.35including municipalities covered by section
85.1toward the municipality's employer contribution to the public employees police and
85.2fire fund under sections
85.3
85.4
85.5
85.6
85.7
85.8
85.9
85.10
85.11
85.12
85.13
85.14
85.15
85.16
85.17
85.18
85.19
85.20
85.21
85.22
85.23
85.24
85.25
85.26
85.27(c) The county treasurer, upon receipt of the police state aid for the county, shall
85.28apply the total state aid toward the county's employer contribution to the public employees
85.29police and fire fund under section
85.30(d) The designated Metropolitan Airports Commission official, upon receipt of the
85.31police state aid for the Metropolitan Airports Commission, shall apply the total police
85.32state aid toward the commission's employer contribution for police officers to the public
85.33employees police and fire plan under section
85.34(e) The police state aid apportioned to the Departments of Public Safety and Natural
85.35Resources under section
85.36management and budget for transfer to the funds and accounts from which the salaries of
86.1peace officers certified under section
86.2of revenue shall certify to the commissioners of public safety, natural resources, and
86.3management and budget the amounts to be transferred from the appropriation for police
86.4state aid. The commissioners of public safety and natural resources shall certify to the
86.5commissioner of management and budget the amounts to be credited to each of the funds
86.6and accounts from which the peace officers employed by their respective departments are
86.7paid. Each commissioner shall allocate the police state aid first for employer contributions
86.8for employees funded from the general fund and then for employer contributions for
86.9employees funded from other funds. For peace officers whose salaries are paid from the
86.10general fund, the amounts transferred from the appropriation for police state aid must
86.11be canceled to the general fund.
86.12 Sec. 23. Minnesota Statutes 2012, section 69.041, is amended to read:
86.1369.041 SHORTFALL FROM GENERAL FUND.
86.14(a) If the annual funding requirements of fire or police relief associations or
86.15consolidation accounts under sections
86.1631 to 42, exceed all applicable revenue sources of a given year, including the insurance
86.17premium taxes funding the applicable fire or police state aid as set under section
86.18subdivisions 2, 3, and 4
86.19from the general fund to the extent appropriated by the legislature.
86.20(b) Nothing in this section may be deemed to relieve any municipality from its
86.21obligation to a relief association or consolidation account under law.
86.22 Sec. 24. Minnesota Statutes 2012, section 69.051, subdivision 1, is amended to read:
86.23 Subdivision 1. Financial report and audit. (a) The board of
86.24
86.25 and each volunteer firefighters relief association as defined in section
86.26subdivision 4
86.27year or in any previous year, according to the applicable actuarial valuation or according
86.28to the financial report if no valuation is required, shall prepare a financial report covering
86.29the special and general funds of the relief association for the preceding fiscal year, file the
86.30financial report, and submit financial statements.
86.31(b) The financial report must contain financial statements and disclosures which
86.32present the true financial condition of the relief association and the results of relief
86.33association operations in conformity with generally accepted accounting principles and in
87.1compliance with the regulatory, financing and funding provisions of this chapter and any
87.2other applicable laws. The financial report must be countersigned by:
87.3(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
87.4association is located if the relief association is a firefighters relief association which is
87.5directly associated with a municipal fire department
87.6(2) by the municipal clerk or clerk-treasurer of the largest municipality in population
87.7which contracts with the independent nonprofit firefighting corporation if the volunteer
87.8firefighter relief association is a subsidiary of an independent nonprofit firefighting
87.9corporation and by the secretary of the independent nonprofit firefighting corporation; or
87.10(3) by the chief financial official of the county in which the volunteer firefighter
87.11relief association is located or primarily located if the relief association is associated with
87.12a fire department that is not located in or associated with an organized municipality.
87.13(c) The financial report must be retained in its office for public inspection and must
87.14be filed with the governing body of the government subdivision in which the associated
87.15fire department is located after the close of the fiscal year. One copy of the financial report
87.16must be furnished to the state auditor after the close of the fiscal year.
87.17(d) Audited financial statements must be attested to by a certified public accountant
87.18or by the state auditor and must be filed with the state auditor within 180 days after the
87.19close of the fiscal year. The state auditor may accept this report in lieu of the report
87.20required in paragraph (c).
87.21 Sec. 25. Minnesota Statutes 2012, section 69.051, subdivision 1a, is amended to read:
87.22 Subd. 1a. Financial statement. (a) The board of each volunteer firefighters relief
87.23association, as defined in section
87.24financial report and audit under subdivision 1 must prepare a detailed statement of the
87.25financial affairs for the preceding fiscal year of the relief association's special and general
87.26funds in the style and form prescribed by the state auditor. The detailed statement must
87.27show:
87.28(1) the sources and amounts of all money received;
87.29(2) all disbursements, accounts payable and accounts receivable;
87.30(3) the amount of money remaining in the treasury;
87.31(4) total assets, including a listing of all investments;
87.32(5) the accrued liabilities; and
87.33(6) all other items necessary to show accurately the revenues and expenditures and
87.34financial position of the relief association.
88.1(b) The detailed financial statement required under paragraph (a) must be certified
88.2by an independent public accountant or auditor or by the auditor or accountant who
88.3regularly examines or audits the financial transactions of the municipality. In addition to
88.4certifying the financial condition of the special and general funds of the relief association,
88.5the accountant or auditor conducting the examination shall give an opinion as to the
88.6condition of the special and general funds of the relief association, and shall comment
88.7upon any exceptions to the report. The independent accountant or auditor must have at
88.8least five years of public accounting, auditing, or similar experience, and must not be an
88.9active, inactive, or retired member of the relief association or the fire
88.10(c) The detailed statement required under paragraph (a) must be countersigned by:
88.11(1) the municipal clerk or clerk-treasurer of the municipality; or
88.12(2) where applicable, by the municipal clerk or clerk-treasurer of the largest
88.13municipality in population which contracts with the independent nonprofit firefighting
88.14corporation if the relief association is a subsidiary of an independent nonprofit firefighting
88.15corporation and by the secretary of the independent nonprofit firefighting corporation; or
88.16(3) by the chief financial official of the county in which the volunteer firefighter
88.17relief association is located or primarily located if the relief association is associated with
88.18a fire department that is not located in or associated with an organized municipality.
88.19(d) The volunteer firefighters' relief association board must file the detailed statement
88.20required under paragraph (a) in the relief association office for public inspection and
88.21present it to the
88.22close of the fiscal year, and must submit a copy of the detailed statement to the state
88.23auditor within 90 days of the close of the fiscal year.
88.24 Sec. 26. Minnesota Statutes 2012, section 69.051, subdivision 1b, is amended to read:
88.25 Subd. 1b. Qualification. The state auditor may, upon a demonstration by a relief
88.26association of hardship or an inability to conform, extend the deadline for reports under
88.27subdivisions 1 or 1a, but not beyond November 30th following the due date. If the
88.28reports are not received by November 30th, the municipality or relief association
88.29
88.30information, the relief association or municipality
88.31future state aid. A municipality or
88.32qualify initially to receive, or be entitled subsequently to retain, state aid
88.33this chapter if the financial reporting requirement or the applicable requirements of this
88.34chapter or any other statute or special law have not been complied with or are not fulfilled.
89.1 Sec. 27. Minnesota Statutes 2012, section 69.051, subdivision 2, is amended to read:
89.2 Subd. 2. Treasurers bond.
89.3Department Relief Association
89.4without having given the association a bond in a reasonable amount acceptable to the
89.5municipality for the faithful discharge of duties according to law.
89.6(b) No treasurer of a relief association governed by sections
89.7 may enter upon the duties of the office until the treasurer has given the association a good
89.8and sufficient bond in an amount equal to at least ten percent of the assets of the relief
89.9association; however, the amount of the bond need not exceed $500,000.
89.10 Sec. 28. Minnesota Statutes 2012, section 69.051, subdivision 3, is amended to read:
89.11 Subd. 3. Report by certain municipalities. (a) The chief administrative officer
89.12of each municipality which has an organized fire department but which does not have a
89.13firefighters' relief association governed by section
89.14which is not exempted under paragraph (b) shall annually prepare a detailed financial
89.15report of the receipts and disbursements by the municipality for fire protection service
89.16during the preceding calendar year
89.17report must contain any information which the state auditor deems necessary to disclose
89.18the sources of receipts and the purpose of disbursements for fire protection service.
89.19The financial report must be signed by the municipal clerk or clerk-treasurer of the
89.20municipality. The financial report must be filed by the municipal clerk or clerk-treasurer
89.21with the state auditor on or before July 1 annually. The municipality
89.22initially to receive,
89.23chapter if the financial reporting requirement or the applicable requirements of this chapter
89.24or any other statute or special law have not been complied with or are not fulfilled.
89.25(b) Each municipality that has an organized fire department and provides retirement
89.26coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
89.27retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
89.28retained in the statewide lump-sum volunteer firefighter retirement fund without filing
89.29a detailed financial report if the executive director of the Public Employees Retirement
89.30Association certifies compliance by the municipality with the requirements of sections
89.32with the requirements of section
89.33 Sec. 29. Minnesota Statutes 2012, section 69.051, subdivision 4, is amended to read:
90.1 Subd. 4. Notification by commissioner and state auditor. (a) The state auditor,
90.2 in performing an audit or examination, shall notify the Legislative Commission on
90.3Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or
90.4nonfeasance in office by relief association officials or municipal officials.
90.5(b) The commissioner shall notify the Legislative Commission on Pensions and
90.6Retirement if the state auditor has not filed the required financial compliance reports
90.7by July 1.
90.8 Sec. 30. Minnesota Statutes 2012, section 69.33, is amended to read:
90.969.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE
90.10COMPANIES.
90.11For purposes of the first class city fire insurance premium tax surcharge aid program
90.12under section 297I.10, the commissioner shall enclose in the annual statement blank that is
90.13sent to all fire insurance companies doing business in this state a blank form containing
90.14the names of all cities of the first class and require these companies, at the time of making
90.15their annual statements to the commissioner, to state on these blanks the amount of
90.16premiums received by them upon properties insured within the corporate limits of the
90.17cities named thereon during the year ending December 31st last past. Thereafter, before
90.18July first each year, the commissioner shall certify to the commissioner of management
90.19and budget the information thus obtained, together with the amount of the tax for the
90.20benefit of the pension plans covering firefighters in cities of the first class paid in such
90.21year by these companies upon these insurance premiums.
90.22 Sec. 31. Minnesota Statutes 2012, section 69.77, subdivision 1, is amended to read:
90.23 Subdivision 1. Conditioned employer support for
90.24Department Relief Association. (a) Notwithstanding any law to the contrary, only
90.25if the
90.26Association comply with the provisions of this section,
90.27Bloomington may contribute public funds, including any applicable police or fire state
90.28aid, or levy property taxes for the support of
90.29Fire Department Relief Association
90.30
90.31
90.32
90.33(b) The commissioner shall not include in the apportionment of
90.34aid
91.1
91.2
91.3Association does not comply with the provisions of this section or the provisions of any
91.4applicable special law relating to the funding or financing of the association and
91.5
91.6subsequently to retain, fire state aid under sections
91.7for the disqualification is remedied, whereupon the
91.8if otherwise qualified, is entitled to again receive fire state aid for the year occurring
91.9immediately subsequent to the year in which the disqualification is remedied.
91.10(c) The state auditor and the commissioner shall determine if
91.11
91.12Bloomington Fire Department Relief Association fail to comply with the provisions of
91.13this section or the funding or financing provisions of any applicable special law.
91.14 Sec. 32. Minnesota Statutes 2012, section 69.77, subdivision 2, is amended to read:
91.15 Subd. 2. Inapplicable penalty. The penalty provided for in subdivision 1 does not
91.16apply to
91.17
91.18 Sec. 33. Minnesota Statutes 2012, section 69.77, subdivision 4, is amended to read:
91.19 Subd. 4. Relief association financial requirements; minimum municipal
91.20obligation. (a) The officers of the Bloomington Fire Department Relief Association
91.21shall determine the financial requirements of the relief association and the minimum
91.22obligation of the
91.23accordance with the requirements of this subdivision. The financial requirements of the
91.24relief association and the minimum obligation of the
91.25must be determined on or before the submission date established by the
91.26 city of Bloomington under subdivision 5.
91.27(b) The financial requirements of the relief association for the following calendar
91.28year must be based on the most recent actuarial valuation or survey of the special fund of
91.29the association if more than one fund is maintained by the association, or of the association,
91.30if only one fund is maintained, prepared in accordance with sections
91.314 to 15, and
91.32by the actuary of the relief association as part of obtaining a modification of the benefit
91.33plan of the relief association and the modification is implemented, the actuarial estimate
91.34must be used in calculating the subsequent financial requirements of the relief association.
92.1(c) If the relief association has an unfunded actuarial accrued liability as reported in
92.2the most recent actuarial valuation or survey, the total of the amounts calculated under
92.3clauses (1), (2), and (3), constitute the financial requirements of the relief association for
92.4the following year. If the relief association does not have an unfunded actuarial accrued
92.5liability as reported in the most recent actuarial valuation or survey, the amount calculated
92.6under clauses (1) and (2) constitute the financial requirements of the relief association for
92.7the following year. The financial requirement elements are:
92.8(1) the normal level cost requirement for the following year, expressed as a dollar
92.9amount, which must be determined by applying the normal level cost of the relief
92.10association as reported in the actuarial valuation or survey and expressed as a percentage
92.11of covered payroll to the estimated covered payroll of the active membership of the relief
92.12association, including any projected change in the active membership, for the following
92.13year;
92.14(2)
92.15of normal cost determined under clause (1) must be added an amount equal to the dollar
92.16amount of the administrative expenses of the special fund of the association if more
92.17than one fund is maintained by the association, or of the association if only one fund is
92.18maintained, for the most recent year, multiplied by the factor of 1.035. The administrative
92.19expenses are those authorized under section
92.20(3) to the dollar amount of normal cost and expenses determined under clauses
92.21(1) and (2) must be added an amount equal to the level annual dollar amount which
92.22is sufficient to amortize the unfunded actuarial accrued liability as determined from
92.23the actuarial valuation or survey of the fund, using an interest assumption set at the
92.24applicable rate specified in section
92.25date as specified in paragraph (d).
92.26
92.27date is determined under section
92.28this paragraph supersedes any amortization date specified in any applicable special law.
92.29(d) If the actuarial value of the assets of the special fund of the relief association
92.30exceed the actuarial accrued liability as reported in the most recent actuarial valuation of the
92.31special fund of the relief association, the financial requirements of the relief association are
92.32the amounts calculated under paragraph (c), clauses (1) and (2), reduced by one-tenth of the
92.33amount by which the actuarial value of the assets of the special fund of the relief association
92.34exceeds the actuarial accrued liability of the special fund of the relief association.
92.35(e) The minimum obligation of the municipality is an amount equal to the financial
92.36requirements of the relief association reduced by the estimated amount of member
93.1contributions from covered salary anticipated for the following calendar year and the
93.2estimated
93.3 fire state aid program established under sections
93.4association after any allocation made under section
93.5clause (2)
93.6
93.7
93.8
93.9
93.10 Sec. 34. Minnesota Statutes 2012, section 69.77, subdivision 5, is amended to read:
93.11 Subd. 5. Determination submission. The officers of the relief association shall
93.12submit the determination of the financial requirements of the relief association and of the
93.13minimum obligation of the municipality to the
93.14on or before the date established by the
93.15not be earlier than August 1 and may not be later than September 1 of each year. The
93.16
93.17not the determinations were prepared in accordance with law.
93.18 Sec. 35. Minnesota Statutes 2012, section 69.77, subdivision 6, is amended to read:
93.19 Subd. 6. Municipal payment. (a) The
93.20provide for and shall pay, each year, at least the amount of the minimum obligation of the
93.21
93.22(b) If there is any deficiency in the municipal payment to meet the minimum
93.23obligation of the
93.24amount of the deficiency must be added to the minimum obligation of the
93.25of Bloomington for the following year calculated under subdivision 4 and must include
93.26interest at the compound rate of six percent per annum from the date that the
93.27 city of Bloomington was required to make payment under this subdivision until the date
93.28that the
93.29 Sec. 36. Minnesota Statutes 2012, section 69.77, subdivision 7, is amended to read:
93.30 Subd. 7. Budget inclusion. (a) The
93.31in the annual municipal budget for at least the minimum obligation of the municipality
93.32calculated under subdivision 4.
94.1(b) The
94.2minimum obligation of the
94.3rate or amount and irrespective of limitations imposed by other provisions of law upon the
94.4rate or amount of taxation when the balance of the special fund or any fund of the relief
94.5association has attained a specified minimum asset level. In addition, any taxes levied
94.6under this section may not cause the amount or rate of other taxes levied in that year or to
94.7be levied in a subsequent year by the
94.8to a limitation as to rate or amount to be reduced.
94.9(c) If the
94.10the minimum obligation of the
94.11
94.12officers of the relief association shall certify the amount of any deficiency to the Hennepin
94.13County auditor. Upon verifying the existence of any deficiency in the levy certified by
94.14the
94.15over the taxable property of the
94.16deficiency certified to by the officers of the relief association.
94.17 Sec. 37. Minnesota Statutes 2012, section 69.77, subdivision 8, is amended to read:
94.18 Subd. 8. Accelerated amortization. Any sums of money paid by the
94.19 city of Bloomington to the relief association in excess of the minimum obligation of the
94.20
94.21actuarial accrued liabilities of the Bloomington Fire Department Relief Association.
94.22 Sec. 38. Minnesota Statutes 2012, section 69.77, subdivision 9, is amended to read:
94.23 Subd. 9. Local paid fire relief association investment authority. (a) The
94.24
94.25under section
94.26(b) The governing board of the Bloomington Fire Department Relief Association
94.27may select and appoint a qualified private firm to measure management performance and
94.28return on investment, and the firm must use the formula or formulas developed by the
94.29State Board of Investment under section
94.30Bloomington Fire Department Relief Association may certify general fund assets of the
94.31relief association for investment by the State Board of Investment in fixed income pools
94.32or in a separately managed account at the discretion of the State Board of Investment
94.33as provided in section
95.1
95.2
95.3
95.4
95.5 Sec. 39. Minnesota Statutes 2012, section 69.77, subdivision 10, is amended to read:
95.6 Subd. 10. Actuarial valuation required. The governing board of the Bloomington
95.7Fire Department Relief Association shall obtain an actuarial valuation showing the
95.8condition of the special fund of the relief association under sections
95.9and
95.10Commission on Pensions and Retirement. The actuarial valuation must be made as of
95.11December 31 of every year. A copy of the actuarial valuation must be filed with the
95.12Director of the Legislative Reference Library, the
95.13
95.14the Legislative Commission on Pensions and Retirement, and the state auditor, not later
95.15than July 1 of the following year.
95.16 Sec. 40. Minnesota Statutes 2012, section 69.77, subdivision 11, is amended to read:
95.17 Subd. 11. Municipal approval of benefit changes required. Any amendment to
95.18the bylaws or articles of incorporation of
95.19Association which increases or otherwise affects the retirement coverage provided by or
95.20the service pensions or retirement benefits payable from
95.21relief association
95.22
95.23of the relief association shall not seek municipal ratification before obtaining either an
95.24updated actuarial valuation including the proposed amendment or an estimate of the
95.25expected actuarial impact of the proposed amendment prepared by the actuary of the relief
95.26association and submitting that actuarial valuation or estimate to the Bloomington city
95.27clerk
95.28 Sec. 41. Minnesota Statutes 2012, section 69.77, subdivision 12, is amended to read:
95.29 Subd. 12. Application of other laws to contribution rate. In the absence of any
95.30specific provision to the contrary, no general or special law previously enacted may be
95.31construed as reducing the levy amount
95.32Bloomington Fire Department Relief Association to which subdivision 1a applies, by
95.33
96.1condition for the use of public funds or the levy of taxes for the support of the association.
96.2
96.3
96.4things required by this section as a condition for the use of public funds or the levy of
96.5taxes for the support of the association.
96.6 Sec. 42. Minnesota Statutes 2012, section 69.77, subdivision 13, is amended to read:
96.7 Subd. 13. Citation. This section may be cited as the "
96.8 Bloomington Fire Department Relief
96.9 Sec. 43. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
96.10 Subdivision 1. Covered relief associations. The applicable provisions of sections
96.12Fire Department Relief Association
96.13is organized under any laws of this state, which is composed of volunteer firefighters or
96.14is composed partially of volunteer firefighters and partially of salaried firefighters with
96.15retirement coverage provided by the public employees police and fire fund and which, in
96.16either case, operates subject to the service pension minimum requirements for entitlement
96.17and maximums contained in section
96.18requirements or maximums.
96.19 Sec. 44. Minnesota Statutes 2012, section 69.80, is amended to read:
96.2069.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
96.21(a) Notwithstanding any provision of law to the contrary, the payment of the
96.22following necessary, reasonable and direct expenses of maintaining, protecting and
96.23administering the special fund, when provided for in the bylaws of the association and
96.24approved by the board of trustees, constitutes authorized administrative expenses of a
96.25
96.26any law of this state or the Bloomington Fire Department Relief Association:
96.27(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
96.28postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
96.29personnel;
96.30(2) salaries of the officers of the association, or their designees, and salaries of the
96.31members of the board of trustees of the association if the salary amounts are approved by
96.32the governing body of the entity that is responsible for meeting any minimum obligation
96.33under section
97.1of relief association officers and board members that are incurred as a result of fulfilling
97.2their responsibilities as administrators of the special fund;
97.3(3) tuition, registration fees, organizational dues, and other authorized expenses
97.4of the officers or members of the board of trustees incurred in attending educational
97.5conferences, seminars, or classes relating to the administration of the relief association;
97.6(4) audit, actuarial, medical, legal, and investment and performance evaluation
97.7expenses;
97.8(5) filing and application fees payable by the relief association to federal or other
97.9governmental entities;
97.10(6) reimbursement to the officers and members of the board of trustees, or their
97.11designees, for reasonable and necessary expenses actually paid and incurred in the
97.12performance of their duties as officers or members of the board; and
97.13(7) premiums on fiduciary liability insurance and official bonds for the officers,
97.14members of the board of trustees, and employees of the relief association.
97.15(b) Any other expenses of the relief association must be paid from the general fund
97.16of the association, if one exists. If a relief association has only one fund, that fund is the
97.17special fund for purposes of this section. If a relief association has a special fund and
97.18a general fund, and any expense of the relief association that is directly related to the
97.19purposes for which both funds were established, the payment of that expense must be
97.20apportioned between the two funds on the basis of the benefits derived by each fund.
97.21 Sec. 45. Minnesota Statutes 2012, section 275.70, subdivision 5, is amended to read:
97.22 Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
97.23levied by a local governmental unit for the following purposes or in the following manner:
97.24 (1) to pay the costs of the principal and interest on bonded indebtedness or to
97.25reimburse for the amount of liquor store revenues used to pay the principal and interest
97.26due on municipal liquor store bonds in the year preceding the year for which the levy
97.27limit is calculated;
97.28 (2) to pay the costs of principal and interest on certificates of indebtedness issued for
97.29any corporate purpose except for the following:
97.30 (i) tax anticipation or aid anticipation certificates of indebtedness;
97.31 (ii) certificates of indebtedness issued under sections
97.32 (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
97.33extraordinary expenditures that result from a public emergency; or
98.1 (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
98.2insufficiency in other revenue sources, provided that nothing in this subdivision limits the
98.3special levy authorized under section
98.4 (3) to provide for the bonded indebtedness portion of payments made to another
98.5political subdivision of the state of Minnesota;
98.6 (4) to fund payments made to the Minnesota State Armory Building Commission
98.7under section
98.8construction bonds;
98.9 (5) property taxes approved by voters which are levied against the referendum
98.10market value as provided under section
98.11 (6) to fund matching requirements needed to qualify for federal or state grants or
98.12programs to the extent that either (i) the matching requirement exceeds the matching
98.13requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
98.14exist prior to 2002;
98.15 (7) to pay the expenses reasonably and necessarily incurred in preparing for or
98.16repairing the effects of natural disaster including the occurrence or threat of widespread
98.17or severe damage, injury, or loss of life or property resulting from natural causes, in
98.18accordance with standards formulated by the Emergency Services Division of the state
98.19Department of Public Safety, as allowed by the commissioner of revenue under section
98.21 (8) pay amounts required to correct an error in the levy certified to the county
98.22auditor by a city or county in a levy year, but only to the extent that when added to the
98.23preceding year's levy it is not in excess of an applicable statutory, special law or charter
98.24limitation, or the limitation imposed on the governmental subdivision by sections
98.26 (9) to pay an abatement under section
98.27 (10) to pay any costs attributable to increases in the employer contribution rates under
98.28chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
98.29 (11) to pay the operating or maintenance costs of a county jail as authorized in section
98.31paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
98.32that the amount has been included in the county budget as a direct result of a rule, minimum
98.33requirement, minimum standard, or directive of the Department of Corrections, or to pay
98.34the operating or maintenance costs of a regional jail as authorized in section
98.35purposes of this clause, a district court order is not a rule, minimum requirement, minimum
98.36standard, or directive of the Department of Corrections. If the county utilizes this special
99.1levy, except to pay operating or maintenance costs of a new regional jail facility under
99.2sections
99.3levied by the county in the previous levy year for the purposes specified under this clause
99.4and included in the county's previous year's levy limitation computed under section
99.6when determining the county's current year levy limitation. The county shall provide the
99.7necessary information to the commissioner of revenue for making this determination;
99.8 (12) to pay for operation of a lake improvement district, as authorized under section
99.10previous levy year for the purposes specified under this clause and included in the county's
99.11previous year's levy limitation computed under section
99.12the levy limit base under section
99.13current year levy limitation. The county shall provide the necessary information to the
99.14commissioner of revenue for making this determination;
99.15 (13) to repay a state or federal loan used to fund the direct or indirect required
99.16spending by the local government due to a state or federal transportation project or other
99.17state or federal capital project. This authority may only be used if the project is not a
99.18local government initiative;
99.19 (14) to pay for court administration costs as required under section
99.20subdivision 4b
99.21district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
99.22paid to the county in 2004 under section
99.23levied to pay for these costs in the year in which the court financing is transferred to the
99.24state, the amount under this clause is limited to the amount of aid the county is certified to
99.25receive under section
99.26 (15) to fund a
99.27
99.28for this purpose in 2001;
99.29 (16) for purposes of a storm sewer improvement district under section
99.30 (17) to pay for the maintenance and support of a city or county society for the
99.31prevention of cruelty to animals under section
99.32$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
99.33recent federal census, whichever is greater. If the city or county uses this special levy, any
99.34amount levied by the city or county in the previous levy year for the purposes specified
99.35in this clause and included in the city's or county's previous year's levy limit computed
100.1under section
100.2subdivision 2
100.3 (18) for counties, to pay for the increase in their share of health and human service
100.4costs caused by reductions in federal health and human services grants effective after
100.5September 30, 2007;
100.6 (19) for a city, for the costs reasonably and necessarily incurred for securing,
100.7maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
100.8the commissioner of revenue under section
100.9(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
100.10the city or in a zip code area of the city that is at least 50 percent higher than the average
100.11foreclosure rate in the metropolitan area, as defined in section
100.12to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
100.13number of foreclosures, as indicated by sheriff sales records, divided by the number of
100.14households in the city in 2007;
100.15 (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
100.16lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
100.17to the Federal Highway Administration;
100.18 (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
100.19personnel. If a local governmental unit did not use this special levy in the previous year its
100.20levy limit base under section
100.21levied for the purposes specified in this clause in the previous year;
100.22 (22) an amount equal to any reductions in the certified aids or credit reimbursements
100.23payable under sections
100.24under section
100.25levy allowed under this clause for each year is limited to the amount unallotted or reduced
100.26from the aids and credit reimbursements certified for payment in the year following the
100.27calendar year in which the tax levy is certified unless the unallotment or reduction amount
100.28is not known by September 1 of the levy certification year, and the local government has
100.29not adjusted its levy under section
100.30which case that unallotment or reduction amount may be levied in the following year;
100.31(23) to pay for the difference between one-half of the costs of confining sex offenders
100.32undergoing the civil commitment process and any state payments for this purpose pursuant
100.33to section
100.34(24) for a county to pay the costs of the first year of maintaining and operating a new
100.35facility or new expansion, either of which contains courts, corrections, dispatch, criminal
100.36investigation labs, or other public safety facilities and for which all or a portion of the
101.1funding for the site acquisition, building design, site preparation, construction, and related
101.2equipment was issued or authorized prior to the imposition of levy limits in 2008. The
101.3levy limit base shall then be increased by an amount equal to the new facility's first full
101.4year's operating costs as described in this clause; and
101.5(25) for the estimated amount of reduction to market value credit reimbursements
101.6under section
101.7 Sec. 46. Minnesota Statutes 2012, section 297I.10, subdivision 1, is amended to read:
101.8 Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct
101.9a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
101.10premiums, less return premiums, on all direct business received by any licensed foreign or
101.11domestic fire insurance company on property in a city of the first class, or by its agents for
101.12it, in cash or otherwise.
101.13(b) By July 31 and December 31 of each year, the commissioner of management
101.14and budget shall pay to
101.15an amount equal to the total amount of the surcharge on the premiums collected within
101.16
101.17(c) The treasurer of the
101.18this subdivision in
101.19a portion of the employer contribution requirement of public employees police and fire
101.20plan coverage for city firefighters.
101.21 Sec. 47. Minnesota Statutes 2012, section 345.381, is amended to read:
101.22345.381 PROPERTY HELD BY MINNESOTA PUBLIC PENSION FUND.
101.23No amounts of money held or owing by a public pension fund enumerated in section
101.26sections
101.27fund includes a provision governing the disposition of unclaimed amounts of money.
101.28 Sec. 48. Minnesota Statutes 2012, section 353.01, subdivision 2a, is amended to read:
101.29 Subd. 2a. Included employees; mandatory membership. (a) Public employees
101.30whose salary exceeds $425 in any month and who are not specifically excluded under
101.31subdivision 2b or who have not been provided an option to participate under subdivision
101.322d, whether individually or by action of the governmental subdivision, must participate as
101.33members of the association with retirement coverage by the general employees retirement
102.1plan under this chapter, the public employees police and fire retirement plan under this
102.2chapter, or the local government correctional employees retirement plan under chapter
102.3353E, whichever applies. Membership commences as a condition of their employment on
102.4the first day of their employment or on the first day that the eligibility criteria are met,
102.5whichever is later. Public employees include but are not limited to:
102.6(1) persons whose salary meets the threshold in this paragraph from employment in
102.7one or more positions within one governmental subdivision;
102.8(2) elected county sheriffs;
102.9(3) persons who are appointed, employed, or contracted to perform governmental
102.10functions that by law or local ordinance are required of a public officer, including, but
102.11not limited to:
102.12(i) town and city clerk or treasurer;
102.13(ii) county auditor, treasurer, or recorder;
102.14(iii) city manager as defined in section
102.15provided under subdivision 2d; or
102.16(iv) emergency management director, as provided under section
102.17(4) physicians under section
102.18employees defined contribution plan coverage under section
102.19(5) full-time employees of the Dakota County Agricultural Society;
102.20
102.21
102.22
102.23
102.24
102.25Red Wing Port Authority before May 1, 2011, and who are not excluded employees
102.26under subdivision 2b; and
102.27
102.28employees under subdivision 2b.
102.29 (b) A public employee or elected official who was a member of the association on
102.30June 30, 2002, based on employment that qualified for membership coverage by the public
102.31employees retirement plan or the public employees police and fire plan under this chapter,
102.32or the local government correctional employees retirement plan under chapter 353E as of
102.33June 30, 2002, retains that membership for the duration of the person's employment in that
102.34position or incumbency in elected office. Except as provided in subdivision 28, the person
102.35shall participate as a member until the employee or elected official terminates public
102.36employment under subdivision 11a or terminates membership under subdivision 11b.
103.1(c) If the salary of an included public employee is less than $425 in any subsequent
103.2month, the member retains membership eligibility.
103.3(d) For the purpose of participation in the MERF division of the general employees
103.4retirement plan, public employees include employees who were members of the former
103.5Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as
103.6members of the MERF division of the association.
103.7 Sec. 49. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
103.8 Subd. 2b. Excluded employees. (a) The following public employees are not eligible
103.9to participate as members of the association with retirement coverage by the general
103.10employees retirement plan, the local government correctional employees retirement plan
103.11under chapter 353E, or the public employees police and fire retirement plan:
103.12 (1) persons whose salary from one governmental subdivision never exceeds $425 in
103.13a month;
103.14(2) public officers who are elected to a governing body, city mayors, or persons who
103.15are appointed to fill a vacancy in an elective office of a governing body, whose term of office
103.16commences on or after July 1, 2002, for the service to be rendered in that elective position;
103.17 (3) election officers or election judges;
103.18 (4) patient and inmate personnel who perform services for a governmental
103.19subdivision;
103.20 (5) except as otherwise specified in subdivision 12a, employees who are hired for
103.21a temporary position as defined under subdivision 12a, and employees who resign from
103.22a nontemporary position and accept a temporary position within 30 days in the same
103.23governmental subdivision;
103.24 (6) employees who are employed by reason of work emergency caused by fire,
103.25flood, storm, or similar disaster;
103.26 (7) employees who by virtue of their employment in one governmental subdivision
103.27are required by law to be a member of and to contribute to any of the plans or funds
103.28administered by the Minnesota State Retirement System, the Teachers Retirement
103.29Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers
103.30Retirement Fund Association
103.31
103.32
103.33
103.34
103.35
104.1must not be construed to prevent a person from being a member of and contributing to
104.2the Public Employees Retirement Association and also belonging to and contributing to
104.3another public pension plan or fund for other service occurring during the same period
104.4of time. A person who meets the definition of "public employee" in subdivision 2 by
104.5virtue of other service occurring during the same period of time becomes a member of the
104.6association unless contributions are made to another public retirement fund on the salary
104.7based on the other service or to the Teachers Retirement Association by a teacher as
104.8defined in section
104.9 (8) persons who are members of a religious order and are excluded from coverage
104.10under the federal Old Age, Survivors, Disability, and Health Insurance Program for the
104.11performance of service as specified in United States Code, title 42, section 410(a)(8)(A),
104.12as amended through January 1, 1987, if no irrevocable election of coverage has been made
104.13under section 3121(r) of the Internal Revenue Code of 1954, as amended;
104.14 (9) employees of a governmental subdivision who have not reached the age of
104.1523 and are enrolled on a full-time basis to attend or are attending classes on a full-time
104.16basis at an accredited school, college, or university in an undergraduate, graduate, or
104.17professional-technical program, or a public or charter high school;
104.18 (10) resident physicians, medical interns, and pharmacist residents and pharmacist
104.19interns who are serving in a degree or residency program in public hospitals or clinics;
104.20 (11) students who are serving in an internship or residency program sponsored
104.21by an accredited educational institution;
104.22 (12) persons who hold a part-time adult supplementary technical college license who
104.23render part-time teaching service in a technical college;
104.24 (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc.,
104.25foreign citizens who are employed by a governmental subdivision under a work permit, or
104.26an H-1b visa initially issued or extended for a combined period less than three years of
104.27employment. Upon extension of the employment beyond the three-year period, the foreign
104.28citizens must be reported for membership beginning the first of the month thereafter
104.29provided the monthly earnings threshold as provided under subdivision 2a is met;
104.30 (14) public hospital employees who elected not to participate as members of the
104.31association before 1972 and who did not elect to participate from July 1, 1988, to October
104.321, 1988;
104.33 (15) except as provided in section
104.34defined in subdivision 35, but persons who serve as volunteer ambulance service personnel
104.35may still qualify as public employees under subdivision 2 and may be members of the
104.36Public Employees Retirement Association and participants in the general employees
105.1retirement plan or the public employees police and fire plan, whichever applies, on the
105.2basis of compensation received from public employment service other than service as
105.3volunteer ambulance service personnel;
105.4 (16) except as provided in section
105.5subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties,
105.6but a person who is a volunteer firefighter may still qualify as a public employee under
105.7subdivision 2 and may be a member of the Public Employees Retirement Association and
105.8a participant in the general employees retirement plan or the public employees police
105.9and fire plan, whichever applies, on the basis of compensation received from public
105.10employment activities other than those as a volunteer firefighter;
105.11 (17) pipefitters and associated trades personnel employed by Independent School
105.12District No. 625, St. Paul, with coverage under a collective bargaining agreement by the
105.13pipefitters local 455 pension plan who were either first employed after May 1, 1997, or,
105.14if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter
105.15241, article 2, section 12;
105.16 (18) electrical workers, plumbers, carpenters, and associated trades personnel who
105.17are employed by Independent School District No. 625, St. Paul, or the city of St. Paul,
105.18who have retirement coverage under a collective bargaining agreement by the Electrical
105.19Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan,
105.20or the pension plan applicable to Carpenters Local 87 who were either first employed after
105.21May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under
105.22Laws 2000, chapter 461, article 7, section 5;
105.23 (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers,
105.24painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul
105.25or Independent School District No. 625, St. Paul, with coverage under a collective
105.26bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan,
105.27the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324
105.28pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities
105.29Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if
105.30first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special
105.31Session chapter 10, article 10, section 6;
105.32 (20) plumbers who are employed by the Metropolitan Airports Commission, with
105.33coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan,
105.34who either were first employed after May 1, 2001, or if first employed before May 2,
105.352001, elected to be excluded under Laws 2001, First Special Session chapter 10, article
105.3610, section 6;
106.1 (21) employees who are hired after June 30, 2002, to fill seasonal positions under
106.2subdivision 12b which are limited in duration by the employer to 185 consecutive calendar
106.3days or less in each year of employment with the governmental subdivision;
106.4 (22) persons who are provided supported employment or work-study positions
106.5by a governmental subdivision and who participate in an employment or industries
106.6program maintained for the benefit of these persons where the governmental subdivision
106.7limits the position's duration to three years or less, including persons participating in a
106.8federal or state subsidized on-the-job training, work experience, senior citizen, youth, or
106.9unemployment relief program where the training or work experience is not provided as a
106.10part of, or for, future permanent public employment;
106.11 (23) independent contractors and the employees of independent contractors;
106.12 (24) reemployed annuitants of the association during the course of that
106.13reemployment; and
106.14(25) persons appointed to serve on a board or commission of a governmental
106.15subdivision or an instrumentality thereof.
106.16(b) Any person performing the duties of a public officer in a position defined in
106.17subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an
106.18employee of an independent contractor.
106.19 Sec. 50. Minnesota Statutes 2012, section 353.01, subdivision 6, is amended to read:
106.20 Subd. 6. Governmental subdivision. (a) "Governmental subdivision" means a
106.21county, city, town, school district within this state, or a department, unit or instrumentality
106.22of state or local government, or any public body established under state or local
106.23authority that has a governmental purpose, is under public control, is responsible for the
106.24employment and payment of the salaries of employees of the entity, and receives a major
106.25portion of its revenues from taxation, fees, assessments or from other public sources.
106.26 (b) Governmental subdivision also means the Public Employees Retirement
106.27Association, the League of Minnesota Cities, the Association of Metropolitan
106.28Municipalities, charter schools formed under section
106.29exercising retirement plan participation under section
106.30boards organized under section
106.31collaboratives and children's mental health collaboratives organized under section
106.32subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives
106.33are governmental units that otherwise qualify for retirement plan membership, public
106.34hospitals owned or operated by, or an integral part of, a governmental subdivision or
106.35governmental subdivisions, the Association of Minnesota Counties, the Minnesota
107.1Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan
107.2Airports Commission, the University of Minnesota with respect to police officers covered
107.3by the public employees police and fire retirement plan, the Minneapolis Employees
107.4Retirement Fund for employment initially commenced after June 30, 1979, the Range
107.5Association of Municipalities and Schools, soil and water conservation districts, economic
107.6development authorities created or operating under sections
107.7Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red Wing
107.8Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake Johanna
107.9Volunteer Fire Department, incorporated, the Red Wing Environmental Learning Center,
107.10the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc.
107.11
107.12
107.13 (c) Governmental subdivision does not mean any municipal housing and
107.14redevelopment authority organized under the provisions of sections
107.15or any port authority organized under sections
107.16Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than
107.17the Red Wing Port Authority; or any hospital district organized or reorganized prior to
107.18July 1, 1975, under sections
107.19of a family service collaborative or children's mental health collaborative organized
107.20under sections
107.21by representatives of governmental units.
107.22 (d) A nonprofit corporation governed by chapter 317A or organized under Internal
107.23Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a
107.24governmental subdivision unless the entity has obtained a written advisory opinion from
107.25the United States Department of Labor or a ruling from the Internal Revenue Service
107.26declaring the entity to be an instrumentality of the state so as to provide that any future
107.27contributions by the entity on behalf of its employees are contributions to a governmental
107.28plan within the meaning of Internal Revenue Code, section 414(d).
107.29 (e) A public body created by state or local authority may request membership on
107.30behalf of its employees by providing sufficient evidence that it meets the requirements in
107.31paragraph (a).
107.32 (f) An entity determined to be a governmental subdivision is subject to the reporting
107.33requirements of this chapter upon receipt of a written notice of eligibility from the
107.34association.
107.35 Sec. 51. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
108.1 Subd. 10. Salary. (a) Subject to the limitations of section
108.2 (1) the periodic compensation of a public employee, before deductions for deferred
108.3compensation, supplemental retirement plans, or other voluntary salary reduction
108.4programs, and also means "wages" and includes net income from fees; and
108.5 (2) for a public employee who is covered by a supplemental retirement plan under
108.6section
108.7be made by the employer, the contribution to the applicable supplemental retirement plan
108.8when an agreement between the parties establishes that the contribution will either result
108.9in a mandatory reduction of employees' wages through payroll withholdings, or be made
108.10in lieu of an amount that would otherwise be paid as wages
108.11
108.12
108.13
108.14
108.15
108.16
108.17
108.18
108.19
108.20
108.21 (b) Salary does not mean:
108.22 (1) the fees paid to district court reporters, unused annual vacation or sick leave
108.23payments, in lump-sum or periodic payments, severance payments, reimbursement of
108.24expenses, lump-sum settlements not attached to a specific earnings period, or workers'
108.25compensation payments;
108.26 (2) employer-paid amounts used by an employee toward the cost of insurance
108.27coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health
108.28care expense accounts, day care expenses, or any payments in lieu of any employer-paid
108.29group insurance coverage, including the difference between single and family rates that
108.30may be paid to a member with single coverage and certain amounts determined by the
108.31executive director to be ineligible;
108.32 (3) the amount equal to that which the employing governmental subdivision would
108.33otherwise pay toward single or family insurance coverage for a covered employee when,
108.34through a contract or agreement with some but not all employees, the employer:
108.35 (i) discontinues, or for new hires does not provide, payment toward the cost of the
108.36employee's selected insurance coverages under a group plan offered by the employer;
109.1 (ii) makes the employee solely responsible for all contributions toward the cost of
109.2the employee's selected insurance coverages under a group plan offered by the employer,
109.3including any amount the employer makes toward other employees' selected insurance
109.4coverages under a group plan offered by the employer; and
109.5 (iii) provides increased salary rates for employees who do not have any
109.6employer-paid group insurance coverages;
109.7 (4) except as provided in section
109.8volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision
109.935 or 36;
109.10 (5) the amount of compensation that exceeds the limitation provided in section
109.12 (6) amounts paid by a federal or state grant for which the grant specifically
109.13prohibits grant proceeds from being used to make pension plan contributions, unless the
109.14contributions to the plan are made from sources other than the federal or state grant.
109.15 (c) Amounts provided to an employee by the employer through a grievance
109.16proceeding or a legal settlement are salary only if the settlement is reviewed by the
109.17executive director and the amounts are determined by the executive director to be
109.18consistent with paragraph (a) and prior determinations.
109.19 Sec. 52. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
109.20 Subd. 16. Allowable service; limits and computation. (a) "Allowable service"
109.21means:
109.22 (1) service during years of actual membership in the course of which employee
109.23deductions were withheld from salary and contributions were made at the applicable rates
109.24under section
109.25(2) periods of service covered by payments in lieu of salary deductions under
109.26sections
109.27 (3) service in years during which the public employee was not a member but for
109.28which the member later elected, while a member, to obtain credit by making payments to
109.29the fund as permitted by any law then in effect;
109.30 (4) a period of authorized leave of absence with pay from which deductions for
109.31employee contributions are made, deposited, and credited to the fund;
109.32 (5) a period of authorized personal, parental, or medical leave of absence without
109.33pay, including a leave of absence covered under the federal Family Medical Leave Act,
109.34that does not exceed one year, and for which a member obtained service credit for each
109.35month in the leave period by payment under section
110.1salary deductions. An employee must return to public service and render a minimum of
110.2three months of allowable service in order to be eligible to make payment under section
110.4employee must be granted allowable service credit for the purchased period;
110.5 (6) a periodic, repetitive leave that is offered to all employees of a governmental
110.6subdivision. The leave program may not exceed 208 hours per annual normal work cycle
110.7as certified to the association by the employer. A participating member obtains service
110.8credit by making employee contributions in an amount or amounts based on the member's
110.9average salary, excluding overtime pay, that would have been paid if the leave had not been
110.10taken. The employer shall pay the employer and additional employer contributions on
110.11behalf of the participating member. The employee and the employer are responsible to pay
110.12interest on their respective shares at the rate of 8.5 percent a year, compounded annually,
110.13from the end of the normal cycle until full payment is made. An employer shall also make
110.14the employer and additional employer contributions, plus 8.5 percent interest, compounded
110.15annually, on behalf of an employee who makes employee contributions but terminates
110.16public service. The employee contributions must be made within one year after the end of
110.17the annual normal working cycle or within 30 days after termination of public service,
110.18whichever is sooner. The executive director shall prescribe the manner and forms to be
110.19used by a governmental subdivision in administering a periodic, repetitive leave. Upon
110.20payment, the member must be granted allowable service credit for the purchased period;
110.21 (7) an authorized temporary or seasonal layoff under subdivision 12, limited to three
110.22months allowable service per authorized temporary or seasonal layoff in one calendar year.
110.23An employee who has received the maximum service credit allowed for an authorized
110.24temporary or seasonal layoff must return to public service and must obtain a minimum of
110.25three months of allowable service subsequent to the layoff in order to receive allowable
110.26service for a subsequent authorized temporary or seasonal layoff;
110.27 (8) a period during which a member is absent from employment by a governmental
110.28subdivision by reason of service in the uniformed services, as defined in United States
110.29Code, title 38, section 4303(13), if the member returns to public service with the same
110.30governmental subdivision upon discharge from service in the uniformed service within the
110.31time frames required under United States Code, title 38, section 4312(e), provided that
110.32the member did not separate from uniformed service with a dishonorable or bad conduct
110.33discharge or under other than honorable conditions. The service must be credited if the
110.34member pays into the fund equivalent employee contributions based upon the contribution
110.35rate or rates in effect at the time that the uniformed service was performed multiplied by
110.36the full and fractional years being purchased and applied to the annual salary rate. The
111.1annual salary rate is the average annual salary, excluding overtime pay, during the purchase
111.2period that the member would have received if the member had continued to be employed
111.3in covered employment rather than to provide uniformed service, or, if the determination
111.4of that rate is not reasonably certain, the annual salary rate is the member's average salary
111.5rate, excluding overtime pay, during the 12-month period of covered employment rendered
111.6immediately preceding the period of the uniformed service. Payment of the member
111.7equivalent contributions must be made during a period that begins with the date on which
111.8the individual returns to public employment and that is three times the length of the
111.9military leave period, or within five years of the date of discharge from the military service,
111.10whichever is less. If the determined payment period is less than one year, the contributions
111.11required under this clause to receive service credit may be made within one year of the
111.12discharge date. Payment may not be accepted following 30 days after termination of
111.13public service under subdivision 11a. If the member equivalent contributions provided for
111.14in this clause are not paid in full, the member's allowable service credit must be prorated
111.15by multiplying the full and fractional number of years of uniformed service eligible for
111.16purchase by the ratio obtained by dividing the total member contributions received by the
111.17total member contributions otherwise required under this clause. The equivalent employer
111.18contribution, and, if applicable, the equivalent additional employer contribution must be
111.19paid by the governmental subdivision employing the member if the member makes the
111.20equivalent employee contributions. The employer payments must be made from funds
111.21available to the employing unit, using the employer and additional employer contribution
111.22rate or rates in effect at the time that the uniformed service was performed, applied to the
111.23same annual salary rate or rates used to compute the equivalent member contribution. The
111.24governmental subdivision involved may appropriate money for those payments. The
111.25amount of service credit obtainable under this section may not exceed five years unless a
111.26longer purchase period is required under United States Code, title 38, section 4312. The
111.27employing unit shall pay interest on all equivalent member and employer contribution
111.28amounts payable under this clause. Interest must be computed at a rate of 8.5 percent
111.29compounded annually from the end of each fiscal year of the leave or the break in service
111.30to the end of the month in which the payment is received. Upon payment, the employee
111.31must be granted allowable service credit for the purchased period; or
111.32(9) a period specified under section
111.33 (b) For calculating benefits under sections
111.34state officers and employees displaced by the Community Corrections Act, chapter 401,
111.35and transferred into county service under section
112.1combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and
112.2section
112.3
112.4
112.5
112.6
112.7
112.8
112.9
112.10
112.11
112.12
112.13year either for vesting purposes or for benefit calculation purposes. For an active member
112.14who was an active member of the former Minneapolis Firefighters Relief Association
112.15on December 29, 2011, "allowable service" is the period of service credited by the
112.16Minneapolis Firefighters Relief Association as reflected in the transferred records of the
112.17association up to December 30, 2011, and the period of service credited under paragraph
112.18(a), clause (1), after December 30, 2011. For an active member who was an active member
112.19of the former Minneapolis Police Relief Association on December 29, 2011, "allowable
112.20service" is the period of service credited by the Minneapolis Police Relief Association as
112.21reflected in the transferred records of the association up to December 30, 2011, and the
112.22period of service credited under paragraph (a), clause (1), after December 30, 2011.
112.23
112.24 Sec. 53. Minnesota Statutes 2012, section 353.64, subdivision 1a, is amended to read:
112.25 Subd. 1a. Police and fire plan; other members. (a) A person who
112.26
112.27
112.28
112.29
112.30and was a member of the police and fire plan on July 1, 1978, by virtue of being a police
112.31officer as defined by this section on that date, and if employed by the same governmental
112.32subdivision in a position in the same department in which the person was employed on
112.33that date, continues to be a member of the plan, whether or not that person has the power
112.34of arrest by warrant and is licensed by the Peace Officers Standards and Training Board
112.35after that date.
113.1
113.2July 1, 1998, for the duration of employment in the correctional position held on July 1,
113.31998, continues to be a member of the public employees police and fire plan, whether or
113.4not the person has the power of arrest by warrant and is licensed by the Peace Officers
113.5Standards and Training Board after that date.
113.6
113.7
113.8
113.9
113.10
113.11
113.12
113.13
113.14
113.15
113.16
113.17
113.18
113.19
113.20
113.21
113.22 Sec. 54. Minnesota Statutes 2012, section 353.659, is amended to read:
113.23353.659 LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT
113.24BENEFITS.
113.25(a) For any person who
113.26relief association which has
113.27fire retirement
113.28by the public employees police and fire fund benefit plan
113.29
113.30are governed by the applicable provisions of this chapter.
113.31(b) For any person who
113.32relief association which has
113.33retirement
113.34provided by the public employees police and fire fund benefit plan
114.1payable are governed by the provisions of Minnesota Statutes 2012, sections
114.3353.6511 or 353.6512, if applicable.
114.4 Sec. 55. Minnesota Statutes 2012, section 353.665, subdivision 1, is amended to read:
114.5 Subdivision 1.
114.6
114.7
114.8consolidation
114.9
114.10
114.11(b)
114.12police or fire relief associations or consolidation accounts
114.13
114.14
114.15
114.16
114.17
114.18
114.19
114.20
114.21(1) the former local police and fire consolidation accounts that merged with the public
114.22employees police and fire retirement plan and fund under Laws 1999, chapter 222, article 4;
114.23(2) the former Minneapolis Firefighters Relief Association;
114.24(3) the former Minneapolis Police Relief Association;
114.25(4) the former Fairmont Police Relief Association; and
114.26(5) the former Virginia Fire Consolidation Account.
114.27 Sec. 56. Minnesota Statutes 2012, section 353.665, subdivision 5, is amended to read:
114.28 Subd. 5. Benefit coverage for
114.29relief association or consolidation account members. (a)
114.30 Except as provided in paragraph (b), (e), or (f), the annuity, service pension,
114.31pension or benefit, or
114.32member of a former merged local police or fire consolidation account
114.33
114.34
115.1
115.2
115.3
115.4
115.5
115.6
115.7
115.8plan as permitted by applicable law must be calculated or computed under the benefit plan
115.9provisions of the applicable former local police or paid firefighters relief association.
115.10(b)
115.11
115.12
115.13
115.14
115.15attributable to or of a former member of the former Minneapolis Firefighters Relief
115.16Association or of the former Minneapolis Police Relief Association who had that status as
115.17of December 29, 2011, continue after consolidation in the same amount and under the
115.18same terms as provided in chapter 423B or 423C, respectively, and the bylaws in effect as
115.19of that date, except that the unit value is governed by section 353.01, subdivisions 10a and
115.2010b, respectively, and the postretirement adjustments after December 31, 2015, must be
115.21calculated solely under section 353.6511, subdivision 7.
115.22(c) On behalf of former members of the Minneapolis Firefighters Relief Association
115.23or Minneapolis Police Relief Association, the executive director shall withhold any health
115.24insurance or dental insurance premiums designated by the annuitant or benefit recipient
115.25and shall transfer them to the city of Minneapolis. The Public Employees Retirement
115.26Association may charge a necessary and reasonable monthly administrative fee to the city
115.27of Minneapolis for this function and bill it in addition to the employer contribution under
115.28section 353.65, subdivision 3, paragraph (b). Notwithstanding any provision of chapter
115.2913 to the contrary, the executive director shall provide the city of Minneapolis with the
115.30current addresses of former members of the Minneapolis Firefighters Relief Association
115.31and the Minneapolis Police Relief Association. The city of Minneapolis shall continue to
115.32administer the health and dental insurance programs as constituted May 1, 2011, for the
115.33former members of the former Minneapolis relief associations.
115.34(d) The executive director shall cooperate with the Minneapolis firefighters
115.35fraternal association and the Minneapolis police fraternal association to ensure adequate
115.36communications with the former members of the former Minneapolis Firefighters
116.1Relief Association or the Minneapolis Police Relief Association consistent with Public
116.2Employees Retirement Association policy.
116.3
116.4
116.5
116.6
116.7
116.8attributable to or of a former member of the former Fairmont Police Relief Association
116.9must be calculated or computed under Minnesota Statutes 2000, sections 423.41 to
116.10423.46, 423.48 to 423.59, 423.61, and 423.62; Laws 1963, chapter 423; Laws 1977,
116.11chapter 100; and Laws 1999, chapter 222, article 3, section 4, except that the annual
116.12base salary figure for pension and benefit determinations upon consolidation and for
116.13the balance of calendar year 2012 is $106,666.67 and after December 31, 2012, annual
116.14postretirement adjustments of pensions and benefits in force must be calculated solely
116.15under section 356.415, subdivision 1c.
116.16(f) The annuity, service pension, disability pension or benefit, or survivor benefit
116.17attributable to or of a former member of the former Virginia firefighters consolidation
116.18account must be calculated or computed under the election made under Minnesota
116.19Statutes 2012, section 353A.08, unless the person made a subsequent election under
116.20Minnesota Statutes 2012, section 353.6691, subdivision 4, subject to any additional ad hoc
116.21postretirement adjustment under Minnesota Statutes 2012, section 353.6691, subdivision
116.225, paragraph (d).
116.23 Sec. 57. Minnesota Statutes 2012, section 353.665, is amended by adding a subdivision
116.24to read:
116.25 Subd. 5a. Continuing provisions; prior Minneapolis relief associations.
116.26(a) Health insurance account retention. The health insurance account of the former
116.27Minneapolis Firefighters Relief Association and the health insurance account of the
116.28former Minneapolis Police Relief Association shall remain with the financial institution
116.29holding the applicable account on the effective date of this section, if the applicable
116.30financial institution adequately performs all trustee and fiduciary duties with respect to the
116.31applicable account as a condition of the retention of the account.
116.32(b) Health insurance account administrative expenses. Under Laws 2011, First
116.33Special Session chapter 8, article 6, section 14, and article 7, section 14, three years of
116.34expected administrative expenses were prepaid from the Minneapolis Firefighters Relief
116.35Association and the Minneapolis Police Relief Association health insurance accounts to
117.1the financial institution holding the applicable account. After the three-year prepayment
117.2period, the beneficiaries of the applicable account are responsible for the payment of
117.3administrative expenses related to the operation of the account.
117.4(c) Successor in interest. The public employees police and fire retirement plan
117.5and fund is the successor in interest to all claims for or against the former Minneapolis
117.6Firefighters Relief Association and the former Minneapolis Police Relief Association. The
117.7public employees police and fire retirement plan and fund is not liable for any claim against
117.8a former Minneapolis relief association, its governing board, or its administrative staff
117.9acting in a fiduciary capacity, under chapter 356A or common law, which is founded upon
117.10a claim of a breach of fiduciary duty if the act or acts constituting the claimed breach were
117.11not undertaken in good faith. The public employees police and fire retirement plan may
117.12assert any applicable defense to any claim in any judicial or administrative proceeding that
117.13the applicable Minneapolis relief association, its board, or its administrative staff would
117.14otherwise have been entitled to assert, and the public employees police and fire retirement
117.15plan may assert any applicable defense that it has in its capacity as a statewide agency.
117.16(d) Indemnification. The Public Employees Retirement Association shall indemnify
117.17any former fiduciary of the Minneapolis relief associations consistent with the provisions
117.18of section 356A.11. The indemnification may be effected by the purchase by the Public
117.19Employees Retirement Association of reasonable fiduciary liability tail insurance for the
117.20officers and directors of the former Minneapolis relief association.
117.21 Sec. 58. Minnesota Statutes 2012, section 353.665, subdivision 8, is amended to read:
117.22 Subd. 8. Member and employer contributions. (a)
117.23
117.24or (d), the employee contribution rate for
117.25active members is the rate specified in section
117.26municipal contribution rate on behalf of merged former consolidation account active
117.27members is the rate specified in section
117.28(b)
117.29
117.30
117.31
117.32
117.33
117.34
117.35
118.1
118.2
118.3
118.4
118.5
118.6
118.7
118.8
118.9
118.10
118.11
118.12
118.13Relief Association and the merged former Minneapolis Police Relief Association, there are
118.14no employee contributions payable and the employer contribution on behalf of those active
118.15members is at the rate specified in section 353.65, subdivision 3, applied to the active
118.16member's salary. In addition, an additional municipal contribution is payable by the city of
118.17Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as
118.18sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded
118.19present value figure calculated as required by Minnesota Statutes 2012, section 353.667,
118.20subdivision 6, paragraph (a), and Minnesota Statutes 2012, section 353.668, subdivision
118.216, paragraph (a). If the postretirement or preretirement interest rate actuarial assumption
118.22applicable to the public employees police and fire retirement plan under section 356.215,
118.23subdivision 8, is modified from the rates specified in Minnesota Statutes 2010, section
118.24356.215, subdivision 8, the remainder present value of future benefits amount calculation
118.25under Minnesota Statutes 2012, section 353.667, subdivision 6, and Minnesota Statutes
118.262012, section 353.668, subdivision 6, paragraph (a), updated for the passage of time, must
118.27be revised and the amortization contribution by the city of Minneapolis for the balance
118.28of the amortization period must be redetermined by the actuary retained under section
118.29356.214 and certified by the executive director to the city of Minneapolis.
118.30(c) If there are assets of the former Fairmont Police Relief Association in excess of
118.31the present value of future benefits as of June 29, 2012, these assets must be credited to an
118.32interest-bearing suspense account within the public employees police and fire retirement
118.33fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015,
118.34and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must
118.35be credited with the same rate of investment return as the public employees police and fire
118.36retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate
119.1actuarial assumption applicable to the public employees police and fire retirement plan
119.2under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
119.3Statutes 2010, section 356.215, subdivision 8, the remainder present value of future
119.4benefits amount calculation under paragraph (a), updated for the passage of time, must be
119.5revised and the amortization contribution by the city of Fairmont for the balance of the
119.6amortization period must be redetermined by the actuary retained under section 356.214
119.7and certified by the executive director to the city of Fairmont.
119.8(d) If there was a remainder present value of future benefits amounts under
119.9Minnesota Statutes 2012, section 353.6691, subdivision 5, paragraph (a), the city of
119.10Virginia shall pay an additional municipal contribution annually on or before December
119.1131 sufficient to amortize on a level annual dollar basis by December 31, 2020, that
119.12remainder present value of future benefits amounts of the former Virginia fire department
119.13consolidation account. If, after June 29, 2012, the postretirement or preretirement interest
119.14rate actuarial assumption applicable to the public employees police and fire retirement plan
119.15under section 356.215, subdivision 8, is modified from the rates specified in Minnesota
119.16Statutes 2010, section 356.215, subdivision 8, the remainder present value of future
119.17benefits amount calculation under paragraph (a), updated for the passage of time, must be
119.18revised and any amortization contribution by the city of Virginia for the balance of the
119.19amortization period must be redetermined by the actuary retained under section 356.214
119.20and certified by the executive director to the city of Virginia.
119.21 Sec. 59. Minnesota Statutes 2012, section 353.71, subdivision 1, is amended to read:
119.22 Subdivision 1. Eligibility. Any person who has been a member of a defined
119.23benefit retirement plan administered by the Public Employees Retirement Association,
119.24or a retirement plan administered by the Minnesota State Retirement System, or the
119.25Teachers Retirement Association, or any other public retirement system in the state of
119.26Minnesota having a like provision, except a retirement plan providing benefits for police
119.27officers or firefighters governed by sections
119.28to 42, is entitled, when qualified, to an annuity from each retirement plan if the total
119.29allowable service in all retirement plans or in any two of these retirement plans totals the
119.30number of years of allowable service required to receive a normal retirement annuity for
119.31that retirement plan, provided that no portion of the allowable service upon which the
119.32retirement annuity from one retirement plan is based is again used in the computation for
119.33benefits from another retirement plan and provided further that the person has not taken a
119.34refund from any one of these retirement plans since the person's membership in that
119.35association or system last terminated. The annuity from each fund must be determined by
120.1the appropriate provisions of the law except that the requirement that a person must have
120.2at least a specific minimum period of allowable service in the respective association or
120.3system does not apply for the purposes of this section if the combined service in two or
120.4more of these retirement plans equals the number of years of allowable service required to
120.5receive a normal retirement annuity for that retirement plan.
120.6 Sec. 60. Minnesota Statutes 2012, section 356.20, subdivision 2, is amended to read:
120.7 Subd. 2. Covered public pension plans and funds. This section applies to the
120.8following public pension plans:
120.9 (1) the general state employees retirement plan of the Minnesota State Retirement
120.10System;
120.11 (2) the general employees retirement plan of the Public Employees Retirement
120.12Association;
120.13 (3) the Teachers Retirement Association;
120.14 (4) the State Patrol retirement plan;
120.15 (5) the St. Paul Teachers Retirement Fund Association;
120.16 (6) the Duluth Teachers Retirement Fund Association;
120.17 (7) the University of Minnesota faculty retirement plan;
120.18 (8) the University of Minnesota faculty supplemental retirement plan;
120.19 (9) the judges retirement fund;
120.20 (10)
120.21
120.22 (11) a volunteer firefighter relief association governed by section
120.231
120.24 (12) the public employees police and fire plan of the Public Employees Retirement
120.25Association;
120.26 (13) the correctional state employees retirement plan of the Minnesota State
120.27Retirement System;
120.28 (14) the local government correctional service retirement plan of the Public
120.29Employees Retirement Association; and
120.30(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.
120.31 Sec. 61. Minnesota Statutes 2012, section 356.215, subdivision 18, is amended to read:
120.32 Subd. 18. Establishment of actuarial assumptions. (a) Before July 2, 2010, the
120.33actuarial assumptions used for the preparation of actuarial valuations under this section
120.34that are other than preretirement interest, postretirement interest, salary increase, and
121.1payroll increase may be changed only with the approval of the Legislative Commission on
121.2Pensions and Retirement or after a period of one year has elapsed since the date on which
121.3the proposed assumption change or changes were received by the Legislative Commission
121.4on Pensions and Retirement without commission action.
121.5 (b) After July 1, 2010, the actuarial assumptions used for the preparation of actuarial
121.6valuations under this section that are other than postretirement interest and preretirement
121.7interest may be changed only with the approval of the Legislative Commission on
121.8Pensions and Retirement or after a period of one year has elapsed since the date on which
121.9the proposed assumption change or changes were received by the Legislative Commission
121.10on Pensions and Retirement without commission action.
121.11 (c) A change in the applicable actuarial assumptions may be proposed by the
121.12governing board of the applicable pension fund or relief association, by the actuary
121.13retained by the joint retirement systems under section
121.14by a local police or firefighters relief association governed by sections
121.16 Sec. 62. Minnesota Statutes 2012, section 356.216, is amended to read:
121.17356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL
121.18
121.19ASSOCIATIONS.
121.20The provisions of section
121.21
121.22
121.23an actuarial report under this section, except as follows:
121.24
121.25
121.26
121.27
121.28
121.29
121.3011
121.31
121.32any required amortization contribution
121.33(2) for the Bloomington Fire Department Relief Association
121.34 unfunded actuarial accrued liability
121.35a level dollar basis by December 31 of the year occurring 20 years
122.1in which the unfunded actuarial accrued liability initially occurred, and, if subsequent
122.2actuarial valuations for the Bloomington Fire Department Relief Association
122.3 indicate a net actuarial experience loss incurred during the year which ended as of the day
122.4before the most recent actuarial valuation date, any unfunded actuarial accrued liability
122.5due to that loss is to be amortized on a level dollar basis by December 31 of the year
122.6occurring 20 years
122.7(3) in addition to the tabulation of active members and annuitants provided for in
122.8section
122.9
122.10benefit plan for active members must be reported;
122.11(4) actuarial valuations required under section 39 must be made annually and
122.12actuarial valuations required under section
122.13 every four years
122.14
122.15government sector, whichever frequency requirement is shorter;
122.16(5) the actuarial balance sheet showing accrued assets valued at market value
122.17
122.18
122.19
122.20unfunded actuarial accrued liability must include the following required reserves:
122.21(i) for active members:
122.22
122.23
122.24
122.25
122.26(ii) for deferred annuitants' benefits;
122.27(iii) for former members without vested rights;
122.28(iv) for annuitants
122.29
122.30
122.31
122.32
122.33In addition to those required reserves, separate items must be shown for additional
122.34benefits, if any, which may not be appropriately included in the reserves listed above; and
122.35(6) actuarial valuations are due to be filed with the state auditor by the first day of
122.36the seventh month after the end of the fiscal year which the actuarial valuation covers.
123.1 Sec. 63. Minnesota Statutes 2012, section 356.219, subdivision 1, is amended to read:
123.2 Subdivision 1. Report required. (a) The State Board of Investment, on behalf
123.3of the public pension funds and programs for which it is the investment authority, and
123.4any Minnesota public pension plan that is not fully invested through the State Board of
123.5Investment, including the Bloomington Fire Department Relief Association and a local
123.6
123.8state auditor may prescribe a form or forms for the purposes of the reporting requirements
123.9contained in this section.
123.10(b) The Bloomington Fire Department Relief Association and a local
123.11 volunteer firefighters relief association governed by
123.13assets of the applicable pension plan beyond sufficient cash equivalent investments to
123.14cover six months expected expenses are invested under section
123.15fully invested public pension plan remains responsible for submitting investment policy
123.16statements and subsequent revisions as required by subdivision 3, paragraph (a).
123.17(c) For purposes of this section, the State Board of Investment is considered to be
123.18the investment authority for any Minnesota public pension fund required to be invested by
123.19the State Board of Investment under section
123.20fund authorized to invest in the supplemental investment fund under section
123.21which is fully invested by the State Board of Investment.
123.22(d) This section does not apply to the following plans:
123.23(1) the Minnesota unclassified employees retirement program under chapter 352D;
123.24(2) the public employees defined contribution plan under chapter 353D;
123.25(3) the individual retirement account plans under chapters 354B and 354D;
123.26(4) the higher education supplemental retirement plan under chapter 354C;
123.27(5) any alternative retirement benefit plan established under section
123.28(6) the University of Minnesota faculty retirement plan.
123.29 Sec. 64. Minnesota Statutes 2012, section 356.219, subdivision 2, is amended to read:
123.30 Subd. 2. Asset class definition. (a) For purposes of this section, "asset class"
123.31means any of the following asset groupings as authorized in applicable law, bylaws, or
123.32articles of incorporation:
123.33(1) cash and any cash equivalent investments with maturities of one year or less
123.34when issued;
124.1(2) debt securities with maturities greater than one year when issued, including
124.2but not limited to mortgage participation certificates and pools, asset backed securities,
124.3guaranteed investment contracts, and authorized government and corporate obligations of
124.4corporations organized under laws of the United States or any state, or the Dominion of
124.5Canada or its provinces;
124.6(3) stocks or convertible issues of any corporation organized under laws of the
124.7United States or any state, or the Dominion of Canada or its provinces, or any corporation
124.8listed on the New York Stock Exchange or the American Stock Exchange;
124.9(4) international stocks or convertible issues;
124.10(5) international debt securities; and
124.11(6) real estate and venture capital.
124.12(b) If the pension plan is investing
124.13
124.14federal Investment Company Act of 1940, or in the Minnesota supplemental investment
124.15fund under section
124.16in paragraph (a), clauses (1) through (6), as appropriate. If the investment vehicle includes
124.17underlying securities from more than one asset class as indicated by paragraph (a), clauses
124.18(1) through (6), the investment may be treated as a separate asset class.
124.19 Sec. 65. Minnesota Statutes 2012, section 356.219, subdivision 8, is amended to read:
124.20 Subd. 8. Timing of reports. (a) For
124.21 the Bloomington Fire Department Relief
124.22firefighter relief associations, the information required under this section must be
124.23submitted by the due date for reports required under section
124.24as applicable. If a relief association satisfies the definition of a fully invested plan under
124.25subdivision 1, paragraph (b), for the calendar year covered by the report required under
124.26section
124.27the covered pension plan shall certify that compliance on a form prescribed by the state
124.28auditor. The state auditor shall transmit annually to the State Board of Investment a list or
124.29lists of covered pension plans which submitted certifications in order to facilitate reporting
124.30by the State Board of Investment under paragraph (c).
124.31(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers
124.32Retirement Fund Association, and the University of Minnesota faculty supplemental
124.33retirement plan, the information required under this section must be submitted to the state
124.34auditor by June 1 of each year.
125.1(c) The State Board of Investment, on behalf of pension funds specified in
125.2subdivision 1, paragraph (c), must report information required under this section by
125.3September 1 of each year.
125.4 Sec. 66. Minnesota Statutes 2012, section 356.406, subdivision 1, is amended to read:
125.5 Subdivision 1. Definitions. (a) Each of the words or terms defined in this
125.6subdivision has the meaning indicated.
125.7(b) "Public pension plan" means any retirement plan or fund enumerated in section
125.9Association, any relief association governed by
125.11supplemental retirement plan governed by sections
125.12and redevelopment authority retirement plan.
125.13(c) "Public pension plan member" means a person who is a participant covered by
125.14a public pension plan; a former participant of a public pension plan who has sufficient
125.15service to be entitled to receive a future retirement annuity or service pension; a recipient
125.16of a retirement annuity, service pension, or disability benefit from a public pension plan; or
125.17a former participant of a public pension plan who has member or employee contributions
125.18to the person's credit in the public pension plan.
125.19(d) "Survivor" means the surviving spouse, a former spouse, a surviving child, a
125.20joint annuitant, a designated recipient of a second or remainder portion of an optional
125.21annuity form, a beneficiary, or the estate of a deceased public pension plan member, as
125.22those terms are commonly understood or defined in the benefit plan document of the
125.23public pension plan.
125.24(e) "Survivor benefit" means a surviving spouse benefit, surviving child benefit,
125.25second or remainder portion of an optional annuity form, a death benefit, a funeral benefit,
125.26or a refund of member or employee contributions payable on account of the death of a
125.27public pension plan member as provided for in the benefit plan document of the public
125.28pension plan.
125.29 Sec. 67. Minnesota Statutes 2012, section 356A.01, subdivision 19, is amended to read:
125.30 Subd. 19. Pension fund. "Pension fund" means the assets amassed and held in a
125.31pension plan, other than the general fund, as reserves for present and future payment
125.32of benefits and administrative expenses. For the Bloomington Fire Department Relief
125.33Association or a retirement plan governed by section
125.34means the relief association special fund.
126.1 Sec. 68. Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:
126.2 Subd. 4. Economic interest statement. (a) Each member of the governing board
126.3of a covered pension plan and the chief administrative officer of the plan shall file with
126.4the plan a statement of economic interest.
126.5(b) For a covered pension plan other than a plan specified in paragraph (c), the
126.6statement must contain the information required by section
126.7any other information that the fiduciary or the governing board of the plan determines is
126.8necessary to disclose a reasonably foreseeable potential or actual conflict of interest.
126.9(c) For a covered pension plan governed by sections
126.10
126.11Association if its special fund assets are under $8,000,000, the statement must contain
126.12the following:
126.13(1) the person's principal occupation and principal place of business;
126.14(2) whether or not the person has an ownership of or interest of ten percent or greater
126.15in an investment security brokerage business, a real estate sales business, an insurance
126.16agency, a bank, a savings and loan, or another financial institution; and
126.17(3) any relationship or financial arrangement that can reasonably be expected to
126.18give rise to a conflict of interest.
126.19(d) The statement must be filed annually with the chief administrative officer of
126.20the plan and be available for public inspection during regular office hours at the office
126.21of the pension plan.
126.22(e) A disclosure form meeting the requirements of the federal Investment Advisers
126.23Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and
126.24filed with the State Board of Investment or the pension plan meets the requirements of
126.25this subdivision.
126.26(f) The chief administrative officer of each covered pension plan, by January 15,
126.27annually, shall transmit a certified listing of all individuals who have filed statements of
126.28economic interest with the plan under this subdivision during the preceding 12 months
126.29and the address of the office referenced in paragraph (d) to the Campaign Finance and
126.30Public Disclosure Board.
126.31 Sec. 69. Minnesota Statutes 2012, section 356A.07, subdivision 2, is amended to read:
126.32 Subd. 2. Annual financial report. A covered pension plan shall provide each
126.33active plan participant and benefit recipient with a copy of the most recent annual financial
126.34report required by section
127.1if any, required by section
127.2summary of those reports.
127.3 Sec. 70. Minnesota Statutes 2012, section 423A.02, subdivision 1, is amended to read:
127.4 Subdivision 1. Amortization state aid. (a)
127.5
127.6
127.7
127.8
127.9
127.10
127.11
127.12and 5, to receive amortization state aid under this section.
127.13(b) The total amount of amortization state aid to all entitled municipalities must not
127.14exceed
127.15(c)
127.16
127.17
127.18
127.19
127.20
127.21
127.22
127.23
127.24
127.25
127.26
| 127.27 |
City |
Aid Amount |
||
| 127.28 |
Fairmont |
$24,172 |
||
| 127.29 |
Minneapolis |
$2,728,547 |
127.31amount appropriated for this purpose under subdivision 3a, the amortization state aid for
127.32actual allocation must be reduced pro rata.
127.33(d) Each municipality is eligible for an amortization state aid payment in a fiscal
127.34year if:
128.1(1) for Fairmont, the executive director of the Public Employees Retirement
128.2Association certifies on or before June 30 that a municipal contribution with respect to the
128.3former Fairmont Police Relief Association is payable in the upcoming fiscal year under
128.4section 353.665, subdivision 8, paragraph (c); and
128.5(2) for Minneapolis, the executive director of the Public Employees Retirement
128.6Association certifies on or before June 30 that an additional employer contribution with
128.7respect to either the former Minneapolis Firefighters Relief Association or the former
128.8Minneapolis Police Relief Association is payable in the upcoming fiscal year under section
128.9353.665, subdivision 8, paragraph (b).
128.10Payment of amortization state aid to municipalities must be made
128.11the municipalities involved in three equal installments on July 15, September 15, and
128.12November 15 annually. Upon receipt of amortization state aid, the municipal treasurer
128.13shall transmit the aid amount to the
128.14fund or to the executive director of the public employees police and fire retirement fund,
128.15whichever applies, for immediate deposit
128.16(e) The commissioner of revenue shall administer the amortization state aid program.
128.17The commissioner shall prescribe and periodically revise, as necessary, the
128.18 required content of the
128.19
128.20
128.21 Sec. 71. Minnesota Statutes 2012, section 423A.02, subdivision 1b, is amended to read:
128.22 Subd. 1b. Additional amortization state aid.
128.23
128.24
128.25
128.26
128.27
128.28
128.29
128.30
128.31
128.32
128.33
128.34
128.35
129.1
129.2
129.3
129.4
129.5
129.6
129.7
129.8
129.9shall allocate the additional amortization state aid, including any state aid in excess of the
129.10limitation in subdivision 4, on the following basis:
129.11
129.12
129.13
129.14
129.15
129.17
129.18with police and firefighter retirement coverage;
129.19(2) 25.8 percent as additional funding to support the minimum fire state aid for
129.20volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);
129.21(3) 12.9 percent to the city of Duluth to defray employer costs associated with
129.22police and firefighter retirement coverage;
129.23(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the
129.24investment performance requirement of paragraph (c) is met; and
129.25
129.26
129.27
129.28employer contribution under section 353.665, subdivision 8, paragraph (d).
129.29 If there is no
129.30contribution under section 353.665, subdivision 8, paragraph (b), certified under
129.31subdivision 1, paragraph (d), clause (2), with respect to the former Minneapolis Police
129.32Relief Association and the former Minneapolis Fire Department Relief Association
129.33
129.34
129.35of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
129.36to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.1funding to support minimum fire state aid for volunteer firefighters relief associations. If
130.2there is no
130.3Virginia
130.4
130.5section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department
130.6Relief Association certified on or before June 30 by the executive director of the Public
130.7Employees Retirement Association, the commissioner shall allocate that 1.3 percent
130.8of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent
130.9to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional
130.10funding to support minimum fire state aid for volunteer firefighters relief associations.
130.11
130.12
130.13
130.14
130.15
130.17
130.18
130.19
130.20 (b) The allocation must be made by the commissioner
130.21
130.22 (c) With respect to the St. Paul Teachers Retirement Fund Association, annually,
130.23
130.24time-weighted rate of investment return does not equal or exceed the performance of a
130.25composite portfolio assumed passively managed (indexed) invested ten percent in cash
130.26equivalents, 60 percent in bonds and similar debt securities, and 30 percent in domestic
130.27stock calculated using the formula under section
130.28to
130.29investment return equals or exceeds the performance of that composite portfolio.
130.30 (d) The amounts required under this subdivision are the amounts annually
130.31appropriated to the commissioner of revenue under section
130.32paragraph (e), and the aid amounts in excess of the limitation in subdivision 4.
130.33 Sec. 72. Minnesota Statutes 2012, section 423A.02, subdivision 2, is amended to read:
130.34 Subd. 2. Continued eligibility. A municipality that
130.35
131.1
131.2
131.3
131.4
131.5
131.6
131.7
131.8
131.9
131.10
131.11
131.12 received amortization aid in 2011 and is required to make a municipal contribution under
131.13section 353.665, subdivision 8, paragraph (b), (c), or (d), whichever applies, continues to
131.14qualify for amortization state aid for the duration of the applicable municipal contribution.
131.15 Sec. 73. Minnesota Statutes 2012, section 423A.02, subdivision 3, is amended to read:
131.16 Subd. 3. Reallocation of amortization
131.17 (a) Seventy percent of the difference between $5,720,000 and the current year amortization
131.18aid
131.19 that is not distributed for any reason to a municipality
131.20
131.21paragraph. The commissioner shall distribute 50 percent of the amounts derived under
131.22this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers
131.23Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund
131.24Association to fund the unfunded actuarial accrued liabilities of the respective funds.
131.25These payments
131.26St. Paul Teachers Retirement Fund Association or the Duluth Teachers Retirement Fund
131.27Association becomes fully funded,
131.28aid ceases. Amounts remaining in the undistributed balance account at the end of the
131.29biennium if aid eligibility ceases cancel to the general fund.
131.30 (b) In order to receive amortization
131.31paragraph (a),
131.32Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers
131.33Retirement Fund Association.
131.34 (c) Thirty percent of the difference between $5,720,000 and the current year
131.35amortization aid
132.1 1a that is not distributed for any reason to a municipality
132.2
132.37
132.4volunteer firefighter relief associations.
132.5 Sec. 74. Minnesota Statutes 2012, section 423A.02, subdivision 3a, is amended to read:
132.6 Subd. 3a. Appropriations for amortization state aid
132.7
132.8 reallocations.
132.9the commissioner of revenue for amortization state aid under subdivision 1, and for the
132.10reallocation of amortization aid under subdivision 3.
132.11
132.12
132.13
132.14 Sec. 75. Minnesota Statutes 2012, section 423A.02, subdivision 4, is amended to read:
132.15 Subd. 4. Limit on certain total aid amounts. (a) The total of amortization aid
132.16
132.17to a municipality to which section
132.18applies, may not exceed the amount of the additional municipal contribution payable by
132.19an individual municipality under section
132.20(b) Any aid amount in excess of the limit under this subdivision for an individual
132.21municipality must be redistributed to the other municipalities to which section
132.22subdivision 8
132.23proportion to each municipality's additional municipal contribution under section
132.24subdivision 8
132.25(c) When the total aid for each municipality under this section equals the limit under
132.26paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.
132.27 Sec. 76. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
132.28 Subd. 5. Termination of state aid programs. The amortization state aid
132.29
132.30terminate as of the December 31, next following the date of the actuarial valuation when
132.31the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial
132.32accrued liability of that plan or
133.1Retirement Fund Association equal the actuarial accrued liability of that plan, whichever
133.2is later.
133.3 Sec. 77. Minnesota Statutes 2012, section 424A.001, subdivision 4, is amended to read:
133.4 Subd. 4. Relief association. (a) "Relief association" or "volunteer firefighters' relief
133.5association" means a volunteer firefighters' relief association or a volunteer firefighters'
133.6division or account of a partially salaried and partially volunteer firefighters' relief
133.7association that is:
133.8(1) organized and incorporated as a nonprofit corporation to provide retirement
133.9benefits to volunteer firefighters under chapter 317A and any laws of the state;
133.10(2) governed by this chapter and sections
133.11(3) directly associated with:
133.12(i) a fire department established by municipal ordinance;
133.13(ii) an independent nonprofit firefighting corporation that is organized under the
133.14provisions of chapter 317A and that operates primarily for firefighting purposes; or
133.15(iii) a fire department operated as or by a joint powers entity that operates primarily
133.16for firefighting purposes.
133.17(b) "Relief association" or "volunteer firefighters' relief association" does not mean:
133.18(1) the Bloomington Fire Department Relief Association governed by
133.19
133.20as amended; or
133.21(2) the voluntary statewide lump-sum volunteer firefighter retirement plan governed
133.22by chapter 353G.
133.23(c) A relief association or volunteer firefighters' relief association is a governmental
133.24entity that receives and manages public money to provide retirement benefits for individuals
133.25providing the governmental services of firefighting and emergency first response.
133.26 Sec. 78. Minnesota Statutes 2012, section 424A.02, subdivision 9, is amended to read:
133.27 Subd. 9. Limitation on ancillary benefits. A defined benefit relief association,
133.28including any volunteer firefighters relief association governed by
133.2931 to 42 or any volunteer firefighters division of a relief association governed by chapter
133.30424, may only pay ancillary benefits which would constitute an authorized disbursement
133.31as specified in section
133.32 (1) with respect to a defined benefit relief association in which governing bylaws
133.33provide solely for a lump-sum service pension to a retiring member, or provide a retiring
133.34member the choice of either a lump-sum service pension or a monthly service pension
134.1and the lump-sum service pension was chosen, no ancillary benefit may be paid to any
134.2former member or paid to any person on behalf of any former member after the former
134.3member (i) terminates active service with the fire department and active membership
134.4in the relief association; and (ii) commences receipt of a service pension as authorized
134.5under this section; and
134.6 (2) with respect to any defined benefit relief association, no ancillary benefit paid or
134.7payable to any member, to any former member, or to any person on behalf of any member
134.8or former member, may exceed in amount the total earned service pension of the member
134.9or former member. The total earned service pension must be calculated by multiplying
134.10the service pension amount specified in the bylaws of the relief association at the time of
134.11death or disability, whichever applies, by the years of service credited to the member or
134.12former member. The years of service must be determined as of (i) the date the member or
134.13former member became entitled to the ancillary benefit; or (ii) the date the member or
134.14former member died entitling a survivor or the estate of the member or former member to
134.15an ancillary benefit. The ancillary benefit must be calculated without regard to whether the
134.16member had attained the minimum amount of service and membership credit specified in
134.17the governing bylaws. For active members, the amount of a permanent disability benefit
134.18or a survivor benefit must be equal to the member's total earned service pension except
134.19that the bylaws of a defined benefit relief association may provide for the payment of a
134.20survivor benefit in an amount not to exceed five times the yearly service pension amount
134.21specified in the bylaws on behalf of any member who dies before having performed five
134.22years of active service in the fire department with which the relief association is affiliated.
134.23(3)(i) If a lump sum survivor or death benefit is payable under the articles of
134.24incorporation or bylaws, the benefit must be paid:
134.25(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
134.26(B) as a survivor benefit to the surviving children of the deceased firefighter if
134.27no surviving spouse;
134.28(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
134.29surviving spouse or surviving children; or
134.30(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
134.31surviving children and no beneficiary designated.
134.32(ii) If there are no surviving children, the surviving spouse may waive, in writing,
134.33wholly or partially, the spouse's entitlement to a survivor benefit.
134.34(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
134.35incorporation or bylaws, the benefit must be paid:
134.36(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
135.1(B) as a survivor benefit to the surviving children of the deceased firefighter if
135.2no surviving spouse;
135.3(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
135.4surviving spouse or surviving children; or
135.5(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
135.6surviving spouse, no surviving children, and no beneficiary designated.
135.7(ii) If there are no surviving children, the surviving spouse may waive, in writing,
135.8wholly or partially, the spouse's entitlement to a survivor benefit.
135.9(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
135.10survivor benefit payable to a designated beneficiary, the relief association bylaws may
135.11limit the total survivor benefit amount payable.
135.12(5) For purposes of this section, for a monthly benefit volunteer fire relief association
135.13or for a combination lump-sum and monthly benefit volunteer fire relief association where
135.14a monthly benefit service pension has been elected by or a monthly benefit is payable with
135.15respect to a firefighter, a designated beneficiary must be a natural person. For purposes
135.16of this section, for a lump-sum volunteer fire relief association or for a combination
135.17lump-sum and monthly benefit volunteer fire relief association where a lump-sum service
135.18pension has been elected by or a lump-sum benefit is payable with respect to a firefighter,
135.19a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to
135.20the surviving children organized under chapter 501B as authorized by this section and
135.21there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding
135.22a requirement of this section to the contrary.
135.23 Sec. 79. Minnesota Statutes 2012, section 475.52, subdivision 6, is amended to read:
135.24 Subd. 6. Certain purposes. Any municipality may issue bonds for paying
135.25judgments against it; for refunding outstanding bonds; for funding floating indebtedness;
135.26for funding actuarial liabilities to pay postemployment benefits to employees or officers
135.27after their termination of service; or for funding all or part of the municipality's current
135.28and future unfunded liability for a pension or retirement fund or plan referred to in
135.29section
135.30sections
135.31Fire Department Relief Association
135.32be a party to any contract made under this section with respect to the fund held by it
135.33for the benefit of and in trust for its members. For purposes of this section, the term
135.34"postemployment benefits" means benefits giving rise to a liability under Statement No.
135.3545 of the Governmental Accounting Standards Board.
136.1 Sec. 80. REVISOR'S INSTRUCTION.
136.2(a) The revisor of statutes shall not show the text of Minnesota Statutes, section
136.369.77, and shall add the note in Minnesota Statutes, section 69.77, "CITY OF
136.4BLOOMINGTON; LOCAL."
136.5(b) In Minnesota Statutes 2014 and subsequent editions, Minnesota Statutes,
136.6sections 69.771 to 69.776 must be recodified as Minnesota Statutes, sections 424A.091
136.7to 424A.096, and all statutory cross-references revised.
136.8 Sec. 81. REPEALER.
136.9(a) Minnesota Statutes 2012, section 353.665, subdivisions 2, 3, 4, 6, 7, 9, and
136.1010, are repealed.
136.11(b) Minnesota Statutes 2012, sections 353.667; 353.668; 353.669; and 353.6691, are
136.12repealed.
136.13(c) Minnesota Statutes 2012, sections 353A.01; 353A.02; 353A.03; 353A.04;
136.14353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 353A.09; 353A.10;
136.15353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 353B.07; 353B.08; 353B.09;
136.16353B.10; 353B.11; 353B.12; 353B.13; and 353B.14, are repealed.
136.17(d) Minnesota Statutes 2012, sections 423A.01; 423A.04; 423A.05; 423A.07;
136.18423A.10; 423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171;
136.19423A.18; 423A.19; 423A.20; 423A.21; and 423A.22, are repealed.
136.20(e) Minnesota Statutes 2012, sections 69.021, subdivision 6; 353.64, subdivision 3;
136.21and 423A.02, subdivision 1a, are repealed.
136.22(f) Minnesota Statutes 2012, section 69.77, subdivision 3, is repealed.
136.23 Sec. 82. EFFECTIVE DATE; PRIOR AID ALLOCATIONS VALIDATED.
136.24(a) Sections 70 to 76 are effective June 1, 2013.
136.25(b) Except as provided in paragraph (c), sections 1 to 69 and 77 to 81 are effective
136.26July 1, 2013.
136.27(c) With respect to the city of Minneapolis, section 18 is effective retroactively from
136.28July 20, 2011, and with respect to the city of Fairmont, section 18 is effective retroactively
136.29from May 10, 2012.
136.30(d) Allocations of amortization state aid, supplementary amortization state aid, or
136.31additional amortization state aid made by the commissioner of revenue before January 1,
136.322013, are hereby validated.
137.3 Section 1. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
137.4 Subdivision 1. Covered relief associations. The applicable provisions of sections
137.6section 424A.001, subdivision 4, and do not apply to a relief association enumerated in
137.7section
137.8
137.9
137.10
137.11
137.12
137.13EFFECTIVE DATE.This section is effective the day following final enactment.
137.14 Sec. 2. Minnesota Statutes 2012, section 69.774, subdivision 1, is amended to read:
137.15 Subdivision 1. Authorized inclusion in fire state aid program; covered nonprofit
137.16corporations. (a) This section
137.17corporation incorporated or organized
137.18exclusively for firefighting purposes
137.19and (3) which has a duly established separate subsidiary incorporated firefighters' relief
137.20association which provides retirement coverage for or pays a service pension to a retired
137.21firefighter or a retirement benefit to a surviving dependent of either an active or a retired
137.22firefighter, and which
137.23
137.24
137.25chapter 424A.
137.26(b) Notwithstanding any law to the contrary, a municipality contracting with an
137.27independent nonprofit firefighting corporation
137.28fire state aid to the appropriate county auditor by the state auditor only if the independent
137.29nonprofit firefighting corporation complies with the provisions of this section.
137.30EFFECTIVE DATE.This section is effective the day following final enactment.
137.31 Sec. 3. Minnesota Statutes 2012, section 353G.05, subdivision 2, is amended to read:
138.1 Subd. 2. Election of coverage. (a) The process for electing coverage of volunteer
138.2firefighters by the retirement plan is initiated by a request to the executive director for a
138.3cost analysis of the prospective retirement coverage.
138.4(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief
138.5association governed by chapter 424A, the cost analysis of the prospective retirement
138.6coverage must be requested jointly by the secretary of the volunteer firefighters' relief
138.7association, following approval of the request by the board of the volunteer firefighters'
138.8relief association, and the chief administrative officer of the entity associated with the relief
138.9association, following approval of the request by the governing body of the entity associated
138.10with the relief association. If the relief association is associated with more than one entity,
138.11the chief administrative officer of each associated entity must execute the request. If
138.12the volunteer firefighters are not currently covered by a volunteer firefighters' relief
138.13association, the cost analysis of the prospective retirement coverage must be requested by
138.14the chief administrative officer of the entity operating the fire department. The request
138.15must be made in writing and must be made on a form prescribed by the executive director.
138.16(c) The cost analysis of the prospective retirement coverage by the statewide
138.17retirement plan must be based on the service pension amount under section
138.18closest to the service pension amount provided by the volunteer firefighters' relief
138.19association if the relief association is a lump-sum defined benefit plan, or the amount equal
138.20to 95 percent of the most current average account balance per relief association member if
138.21the relief association is a defined contribution plan, or to the lowest service pension amount
138.22under section
138.23and any other service pension amount designated by the requester or requesters. The cost
138.24analysis must be prepared using a mathematical procedure certified as accurate by an
138.25approved actuary retained by the Public Employees Retirement Association.
138.26(d) If a cost analysis is requested and a volunteer firefighters' relief association exists
138.27that has filed the information required under section
138.28request by the executive director, the state auditor shall provide the most recent data
138.29available on the financial condition of the volunteer firefighters' relief association, the most
138.30recent firefighter demographic data available, and a copy of the current relief association
138.31bylaws. If a cost analysis is requested, but no volunteer firefighters' relief association
138.32exists, the chief administrative officer of the entity operating the fire department shall
138.33provide the demographic information on the volunteer firefighters serving as members
138.34of the fire department requested by the executive director.
138.35(e) If a cost analysis is requested, the executive director of the State Board of
138.36Investment shall review the investment portfolio of the relief association, if applicable,
139.1for compliance with the applicable provisions of chapter 11A and for appropriateness
139.2for retention under the established investment objectives and investment policies of the
139.3State Board of Investment. If the prospective retirement coverage change is approved
139.4under paragraph (f), the State Board of Investment may require that the relief association
139.5liquidate any investment security or other asset which the executive director of the State
139.6Board of Investment has determined to be an ineligible or inappropriate investment for
139.7retention by the State Board of Investment. The security or asset liquidation must occur
139.8before the effective date of the transfer of retirement plan coverage. If requested to do so by
139.9the chief administrative officer of the relief association, the executive director of the State
139.10Board of Investment shall provide advice about the best means to conduct the liquidation.
139.11(f) Upon receipt of the cost analysis, the governing body of the municipality or
139.12independent nonprofit firefighting corporation associated with the fire department shall
139.13either approve or disapprove the retirement coverage change within
139.14retirement coverage change is not acted upon within
139.15disapproved. If the retirement coverage change is approved by the applicable governing
139.16body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan
139.17is effective on the next following January 1.
139.18EFFECTIVE DATE.This section is effective July 1, 2013.
139.19 Sec. 4. Minnesota Statutes 2012, section 424A.001, is amended by adding a
139.20subdivision to read:
139.21 Subd. 11. Fiscal year. The fiscal year for a volunteer firefighter relief association
139.22begins on January 1 of each calendar year and ends on December 31 of the same calendar
139.23year.
139.24EFFECTIVE DATE.This section is effective the day following final enactment.
139.25 Sec. 5. Minnesota Statutes 2012, section 424A.01, subdivision 6, is amended to read:
139.26 Subd. 6. Return to active firefighting after break in service. (a)
139.27
139.28resumption service
139.29of absence made available by federal
139.30United States Code, title 29, section 2691, and the Uniformed Services Employment and
139.31Reemployment Rights Act, United States Code, title 38, section 4301, and do not apply
139.32to leaves of absence made available by state
139.33section 181.941; the Leave for Organ Donations Act, section 181.9456; the Leave for
140.1Civil Air Patrol Service Act, section 181.946; the Leave for Immediate Family Members
140.2of Military Personnel Injured or Killed in Active Service Act, section 181.947; or the
140.3Protection of Jurors' Employment Act, section 593.50.
140.4(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and
140.5fire prevention duties for at least 60 days resumes performing active firefighting with the
140.6fire department associated with the relief association, if the bylaws of the relief association
140.7so permit, the firefighter may again become an active member of the relief association. A
140.8firefighter who returns to active service and membership is subject to the service pension
140.9calculation requirements under this section.
140.10(2) A firefighter who has been granted an approved leave of absence not exceeding
140.11one year by the fire department or by the relief association is exempt from the minimum
140.12period of resumption service requirement of this section.
140.13(3) A person who has a break in service not exceeding one year but has not been
140.14granted an approved leave of absence and who has not received a service pension or
140.15disability benefit may be made exempt from the minimum period of resumption service
140.16requirement of this section by the relief association bylaws.
140.17(4) If the bylaws so provide, a firefighter who returns to active relief association
140.18membership under this paragraph may continue to collect a monthly service pension,
140.19notwithstanding the service pension eligibility requirements under chapter 424A.
140.20(c) If a former firefighter who has received a service pension or disability benefit
140.21returns to active relief association membership under paragraph (b), the firefighter may
140.22qualify for the receipt of a service pension from the relief association for the resumption
140.23service period if the firefighter meets the service requirements of section
140.24subdivision 3
140.25more than once for the same period of service.
140.26(d) If a former firefighter who has not received a service pension or disability benefit
140.27returns to active relief association membership under paragraph (b), the firefighter may
140.28qualify for the receipt of a service pension from the relief association for the original and
140.29resumption service periods if the firefighter meets the service requirements of section
140.31years of service credit.
140.32(e) A firefighter who returns to active lump-sum relief association membership under
140.33paragraph (b) and who qualifies for a service pension under paragraph (c) must have,
140.34upon a subsequent cessation of duties, any service pension for the resumption service
140.35period calculated as a separate benefit. If a lump-sum service pension had been paid to the
140.36firefighter upon the firefighter's previous cessation of duties, a second lump-sum service
141.1pension for the resumption service period must be calculated by applying the service
141.2pension amount in effect on the date of the firefighter's termination of the resumption
141.3service for all years of the resumption service.
141.4(f) A firefighter who had not been paid a lump-sum service pension returns to active
141.5relief association membership under paragraph (b), who did not meet the minimum period
141.6of resumption service requirement specified in the relief association's bylaws, but who
141.7does meet the minimum service requirement of section
141.8on the firefighter's original and resumption years of active service, must have, upon a
141.9subsequent cessation of duties, a service pension for the original and resumption service
141.10periods calculated by applying the service pension amount in effect on the date of the
141.11firefighter's termination of the resumption service, or, if the bylaws so provide, based on
141.12the service pension amount in effect on the date of the firefighter's previous cessation
141.13of duties. The service pension for a firefighter who returns to active lump-sum relief
141.14association membership under this paragraph, but who had met the minimum period
141.15of resumption service requirement specified in the relief association's bylaws, must be
141.16calculated by applying the service pension amount in effect on the date of the firefighter's
141.17termination of the resumption service.
141.18(g) If a firefighter receiving a monthly benefit service pension returns to active
141.19monthly benefit relief association membership under paragraph (b), and if the relief
141.20association bylaws do not allow for the firefighter to continue collecting a monthly service
141.21pension, any monthly benefit service pension payable to the firefighter is suspended as
141.22of the first day of the month next following the date on which the firefighter returns to
141.23active membership. If the firefighter was receiving a monthly benefit service pension,
141.24and qualifies for a service pension under paragraph (c), the firefighter is entitled to
141.25an additional monthly benefit service pension upon a subsequent cessation of duties
141.26calculated based on the resumption service credit and the service pension accrual amount
141.27in effect on the date of the termination of the resumption service. A suspended initial
141.28service pension resumes as of the first of the month next following the termination of the
141.29resumption service. If the firefighter was not receiving a monthly benefit service pension
141.30and meets the minimum service requirement of section
141.31pension must be calculated by applying the service pension amount in effect on the date of
141.32the firefighter's termination of the resumption service for all years of service credit.
141.33(h) A firefighter who was not receiving a monthly benefit service pension returns to
141.34active relief association membership under paragraph (b), who did not meet the minimum
141.35period of resumption service requirement specified in the relief association's bylaws, but
141.36who does meet the minimum service requirement of section
142.1based on the firefighter's original and resumption years of active service, must have,
142.2upon a subsequent cessation of duties, a service pension for the original and resumption
142.3service periods calculated by applying the service pension amount in effect on the date of
142.4the firefighter's termination of the resumption service, or, if the bylaws so provide, based
142.5on the service pension amount in effect on the date of the firefighter's previous cessation
142.6of duties. The service pension for a firefighter who returns to active relief association
142.7membership under this paragraph, but who had met the minimum period of resumption
142.8service requirement specified in the relief association's bylaws, must be calculated by
142.9applying the service pension amount in effect on the date of the firefighter's termination of
142.10the resumption service.
142.11(i) For defined contribution plans, a firefighter who returns to active relief
142.12association membership under paragraph (b) and who qualifies for a service pension
142.13under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service
142.14pension for the resumption service period calculated as a separate benefit. If a service
142.15pension had been paid to the firefighter upon the firefighter's previous cessation of duties,
142.16and if the firefighter meets the minimum service requirement of section
142.17subdivision 3, based on the resumption years of service, a second service pension for
142.18the resumption service period must be calculated to include allocations credited to the
142.19firefighter's individual account during the resumption period of service and deductions
142.20for administrative expenses, if applicable.
142.21(j) For defined contribution plans, if a firefighter who had not been paid a service
142.22pension returns to active relief association membership under paragraph (b), and who
142.23meets the minimum service requirement of section
142.24the firefighter's original and resumption years of service, must have, upon a subsequent
142.25cessation of duties, a service pension for the original and resumption service periods
142.26calculated to include allocations credited to the firefighter's individual account during
142.27the original and resumption
142.28expenses, if applicable, less any amounts previously forfeited under section
142.29subdivision 4
142.30EFFECTIVE DATE.This section is effective the day following final enactment.
142.31 Sec. 6. Minnesota Statutes 2012, section 424A.015, subdivision 1, is amended to read:
142.32 Subdivision 1. Separation from active service; exception. (a) No service pension
142.33is payable to a person while the person remains an active member of the respective fire
142.34department, and a person who is receiving a service pension is not entitled to receive any
142.35other benefits from the special fund of the relief association.
143.1(b) No relief association as defined in section
143.2service pension or disability benefit to a former member of the relief association if that
143.3person has not separated from active service with the fire department to which the relief
143.4association is directly associated, unless:
143.5(1) the person
143.6firefighter duties with the municipality or the independent nonprofit firefighting
143.7corporation, whichever applies,
143.8department or corporation on a full-time basis;
143.9(2) the governing body of the municipality or of the corporation has filed its
143.10determination with the board of trustees of the relief association that the person's
143.11experience with and service to the fire department in that person's full-time capacity
143.12would be difficult to replace; and
143.13(3) the bylaws of the relief association were amended to provide for the payment of
143.14a service pension or disability benefit for such full-time employees.
143.15EFFECTIVE DATE.This section is effective the day following final enactment.
143.16 Sec. 7. Minnesota Statutes 2012, section 424A.015, subdivision 4, is amended to read:
143.17 Subd. 4. Transfer to individual retirement account. A relief association that is a
143.18qualified pension plan under section 401(a) of the Internal Revenue Code, as amended,
143.19and that provides a single payment service pension, at the written request of the applicable
143.20retiring member or, following the death of the active member, at the written request of the
143.21deceased member's surviving spouse, may directly transfer on an institution-to-institution
143.22basis the eligible member's lump-sum pension or the
143.23to the member, whichever applies, to the requesting person's individual retirement account
143.24under section 408(a) of the Internal Revenue Code, as amended.
143.25EFFECTIVE DATE.This section is effective the day following final enactment.
143.26 Sec. 8. Minnesota Statutes 2012, section 424A.016, subdivision 6, is amended to read:
143.27 Subd. 6. Deferred service pensions. (a) A member of a relief association is entitled
143.28to a deferred service pension if the member
143.29
143.30
143.31
143.32
143.33service and membership requirements in subdivision 2. The requirement that a member
144.1separate from active service and membership is waived for persons who have discontinued
144.2their volunteer firefighter duties and who are employed on a full-time basis under section
144.4 (b) The deferred service pension is payable when the former member reaches at
144.5least age 50, or at least the minimum age specified in the bylaws governing the relief
144.6association if that age is greater than age 50, and when the former member makes a valid
144.7written application.
144.8 (c) A defined contribution relief association may, if its governing bylaws so provide,
144.9credit interest or additional investment performance on the deferred lump-sum service
144.10pension during the period of deferral. If provided for in the bylaws, the interest must be
144.11paid:
144.12(1) at the investment performance rate actually earned on that portion of the assets
144.13if the deferred benefit amount is invested by the relief association in a separate account
144.14established and maintained by the relief association;
144.15(2) at the investment performance rate actually earned on that portion of the assets
144.16if the deferred benefit amount is invested in a separate investment vehicle held by the
144.17relief association; or
144.18(3) at the investment return on the assets of the special fund of the defined contribution
144.19volunteer firefighter relief association in proportion to the share of the assets of the special
144.20fund to the credit of each individual deferred member account through the accounting date
144.21on which the investment return is recognized by and credited to the special fund.
144.22 (d) Unless the bylaws of a relief association that has elected to pay interest or
144.23additional investment performance on deferred lump-sum service pensions under
144.24paragraph (c) specifies a different interest or additional investment performance method,
144.25including the interest or additional investment performance period starting date and ending
144.26date, the interest or additional investment performance on a deferred service pension
144.27is creditable as follows:
144.28(1) for a relief association that has elected to pay interest or additional investment
144.29performance under paragraph (c), clause (1) or (3), beginning on the date that the
144.30member separates from active service and membership and ending on the accounting
144.31date immediately before the deferred member commences receipt of the deferred service
144.32pension; or
144.33(2) for a relief association that has elected to pay interest or additional investment
144.34performance under paragraph (c), clause (2), beginning on the date that the member
144.35separates from active service and membership and ending on the date that the separate
145.1investment vehicle is valued immediately before the date on which the deferred member
145.2commences receipt of the deferred service pension.
145.3(e) The deferred service pension is governed by and must be calculated under
145.4the general statute, special law, relief association articles of incorporation, and relief
145.5association bylaw provisions applicable on the date on which the member separated from
145.6active service with the fire department and active membership in the relief association.
145.7EFFECTIVE DATE.This section is effective the day following final enactment.
145.8 Sec. 9. Minnesota Statutes 2012, section 424A.02, subdivision 7, is amended to read:
145.9 Subd. 7. Deferred service pensions. (a) A member of a defined benefit relief
145.10association is entitled to a deferred service pension if the member
145.11
145.12
145.13
145.14
145.15service and membership requirements in subdivision 1. The requirement that a member
145.16separate from active service and membership is waived for persons who have discontinued
145.17their volunteer firefighter duties and who are employed on a full-time basis under section
145.19 (b) The deferred service pension is payable when the former member reaches at
145.20least age 50, or at least the minimum age specified in the bylaws governing the relief
145.21association if that age is greater than age 50, and when the former member makes a valid
145.22written application.
145.23 (c) A defined benefit relief association that provides a lump-sum service pension
145.24governed by subdivision 3 may, when its governing bylaws so provide, pay interest on the
145.25deferred lump-sum service pension during the period of deferral. If provided for in the
145.26bylaws, interest must be paid in one of the following manners:
145.27 (1) at the investment performance rate actually earned on that portion of the assets
145.28if the deferred benefit amount is invested by the relief association in a separate account
145.29established and maintained by the relief association;
145.30(2) at the investment performance rate actually earned on that portion of the assets
145.31if the deferred benefit amount is invested in a separate investment vehicle held by the
145.32relief association; or
145.33 (3) at an interest rate of up to five percent, compounded annually, as set by the board
145.34of
146.1(d) Any change in the interest rate set by the board of directors under paragraph (c),
146.2clause (3), must be ratified by the governing body of the municipality served by the fire
146.3department to which the relief association is directly associated, or by the independent
146.4nonprofit firefighting corporation, as applicable.
146.5
146.61 next following the date on which
146.7pension interest rate
146.8body of the municipality served by the fire department to which the relief association is
146.9directly associated, or by the independent nonprofit firefighting corporation, as applicable.
146.10
146.11or additional investment performance on deferred lump-sum service pensions under
146.12paragraph (c) specifies a different interest or additional investment performance method,
146.13including the interest or additional investment performance period starting date and ending
146.14date, the interest or additional investment performance on a deferred service pension
146.15is creditable as follows:
146.16(1) for a relief association that has elected to pay interest or additional investment
146.17performance under paragraph (c), clause (1) or (3), beginning on the first day of the
146.18month next following the date
146.19and membership and ending on the
146.20before the month in which the deferred member commences receipt of the deferred
146.21service pension; or
146.22(2) for a relief association that has elected to pay interest or additional investment
146.23performance under paragraph (c), clause (2), beginning on the date that the member
146.24separates from active service and membership and ending on the date that the separate
146.25investment vehicle is valued immediately before the date on which the deferred member
146.26commences receipt of the deferred service pension.
146.27
146.28established and maintained by the relief association or separate investment vehicle held
146.29by the relief association, the deferred member bears the full investment risk subsequent
146.30to transfer and in calculating the accrued liability of the volunteer firefighters relief
146.31association that pays a lump-sum service pension, the accrued liability for deferred service
146.32pensions is equal to the separate relief association account balance or the fair market value
146.33of the separate investment vehicle held by the relief association.
146.34
146.35the general statute, special law, relief association articles of incorporation, and relief
147.1association bylaw provisions applicable on the date on which the member separated from
147.2active service with the fire department and active membership in the relief association.
147.3EFFECTIVE DATE.This section is effective January 1, 2014, with respect to the
147.4amendments to paragraphs (c), (d), and (e), and is effective retroactively from January
147.51, 2013, with respect to the amendments to paragraph (f).
147.6 Sec. 10. Minnesota Statutes 2012, section 424A.10, subdivision 1, is amended to read:
147.7 Subdivision 1. Definitions. For purposes of this section:
147.8 (1) "qualified recipient" means an individual who receives a lump-sum distribution
147.9of pension or retirement benefits from a volunteer firefighters' relief association or from
147.10the voluntary statewide lump-sum volunteer firefighter retirement plan for service that the
147.11individual has performed as a volunteer firefighter;
147.12 (2) "survivor of a deceased active or deferred volunteer firefighter" means the
147.13surviving spouse of a deceased active or deferred volunteer firefighter
147.14
147.15or deferred volunteer firefighter;
147.16 (3) "active volunteer firefighter" means a person who regularly renders fire
147.17suppression service for a municipal fire department or an independent nonprofit firefighting
147.18corporation, who has met the statutory and other requirements for relief association
147.19membership, and who is deemed by the relief association under law and its bylaws to be a
147.20fully qualified member of the relief association or from the voluntary statewide lump-sum
147.21volunteer firefighter retirement plan for at least one month; and
147.22 (4) "deferred volunteer firefighter" means a former active volunteer firefighter who
147.23terminated active firefighting service, has sufficient service credit from the applicable relief
147.24association or from the voluntary statewide lump-sum volunteer firefighter retirement plan
147.25to be entitled to a service pension under the bylaws of the relief association, but has not
147.26applied for or has not received the service pension.
147.27EFFECTIVE DATE.This section is effective the day following final enactment.
147.28 Sec. 11. Minnesota Statutes 2012, section 424A.10, subdivision 2, is amended to read:
147.29 Subd. 2. Payment of supplemental benefit. (a) Upon the payment by a volunteer
147.30firefighters' relief association or by the voluntary statewide lump-sum volunteer firefighter
147.31retirement plan of a lump-sum distribution to a qualified recipient, the association must
147.32pay a supplemental benefit to the qualified recipient. Notwithstanding any law to the
147.33contrary, the relief association must pay the supplemental benefit out of its special fund
148.1and the voluntary statewide lump-sum volunteer firefighter retirement plan must pay
148.2the supplemental benefit out of the voluntary statewide lump-sum volunteer firefighter
148.3retirement plan. This benefit is an amount equal to ten percent of the regular lump-sum
148.4distribution that is paid on the basis of the recipient's service as a volunteer firefighter.
148.5In no case may the amount of the supplemental benefit exceed $1,000. A supplemental
148.6benefit under this paragraph may not be paid to a survivor of a deceased active or deferred
148.7volunteer firefighter in that capacity.
148.8 (b) Upon the payment by a relief association or the retirement plan of a lump-sum
148.9survivor benefit to a survivor of a deceased active volunteer firefighter or of a deceased
148.10deferred volunteer firefighter, the association
148.11benefit to the survivor of the deceased active or deferred volunteer firefighter from the
148.12special fund of the relief association
148.13 and the retirement plan
148.14the deceased active or deferred volunteer firefighter from the retirement fund if chapter
148.15353G so provides. The amount of the supplemental survivor benefit is 20 percent of the
148.16survivor benefit, but not to exceed $2,000.
148.17 (c) An individual may receive a supplemental benefit under paragraph (a) or under
148.18paragraph (b), but not under both paragraphs with respect to one lump-sum volunteer
148.19firefighter benefit.
148.20EFFECTIVE DATE.This section is effective the day following final enactment.
148.21 Sec. 12. WHITE BEAR LAKE VOLUNTEER FIRE DEPARTMENT RELIEF
148.22ASSOCIATION; RETIREE DEATH BENEFIT.
148.23Notwithstanding any provision of Minnesota Statutes, section 424A.05, subdivision
148.243, clause (4), to the contrary, the White Bear Lake Volunteer Fire Department Relief
148.25Association may provide, if its bylaws so provide, for the payment of a $2,000 lump sum
148.26death benefit from the special fund of the relief association to the estate of a person who
148.27was a member of the relief association, who rendered at least 20 years of firefighting
148.28service in the fire department and membership in the relief association, who retired
148.29before January 1, 2009, who received a monthly benefit service pension from the relief
148.30association for the month in which this section became effective, and who died after the
148.31effective date of the bylaw amendment that implements the authority under this section.
148.32EFFECTIVE DATE.This section is effective the day after the governing body of
148.33the city of White Bear Lake and its chief clerical officer timely complete their compliance
148.34with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
149.1 Sec. 13. REPEALER.
149.2Minnesota Statutes 2012, section 424A.10, subdivision 5, is repealed.
149.3EFFECTIVE DATE.This section is effective the day following final enactment.
149.6 Section 1. Minnesota Statutes 2012, section 352.01, subdivision 2a, is amended to read:
149.7 Subd. 2a. Included employees. (a) "State employee" includes:
149.8 (1) employees of the Minnesota Historical Society;
149.9 (2) employees of the State Horticultural Society;
149.10 (3) employees of the Minnesota Crop Improvement Association;
149.11 (4) employees of the adjutant general whose salaries are paid from federal funds and
149.12who are not covered by any federal civilian employees retirement system;
149.13 (5) employees of the Minnesota State Colleges and Universities who are employed
149.14under the university or college activities program;
149.15 (6) currently contributing employees covered by the system who are temporarily
149.16employed by the legislature during a legislative session or any currently contributing
149.17employee employed for any special service as defined in subdivision 2b, clause (8);
149.18 (7) employees of the legislature who are appointed without a limit on the duration
149.19of their employment and persons employed or designated by the legislature or by a
149.20legislative committee or commission or other competent authority to conduct a special
149.21inquiry, investigation, examination, or installation;
149.22 (8) trainees who are employed on a full-time established training program
149.23performing the duties of the classified position for which they will be eligible to receive
149.24immediate appointment at the completion of the training period;
149.25 (9) employees of the Minnesota Safety Council;
149.26 (10) any employees who are on authorized leave of absence from the Transit
149.27Operating Division of the former Metropolitan Transit Commission and who are employed
149.28by the labor organization which is the exclusive bargaining agent representing employees
149.29of the Transit Operating Division;
149.30 (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
149.31Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
149.32Control Commission unless excluded under subdivision 2b or are covered by another
149.33public pension fund or plan under section
149.34 (12) judges of the Tax Court;
150.1 (13) personnel who were employed on June 30, 1992, by the University of
150.2Minnesota in the management, operation, or maintenance of its heating plant facilities,
150.3whose employment transfers to an employer assuming operation of the heating plant
150.4facilities, so long as the person is employed at the University of Minnesota heating plant
150.5by that employer or by its successor organization;
150.6 (14) personnel who are employed as seasonal employees in the classified or
150.7unclassified service;
150.8 (15) persons who are employed by the Department of Commerce as a peace officer
150.9in the Insurance Fraud Prevention Division under section
150.10mandatory retirement age specified in section
150.11 (16) employees of the University of Minnesota unless excluded under subdivision
150.122b, clause (3);
150.13 (17) employees of the Middle Management Association whose employment began
150.14after July 1, 2007, and to whom section
150.15 (18) employees of the Minnesota Government Engineers Council to whom section
150.17(19) employees of the Minnesota Sports Facilities Authority
150.18(20) employees of the Minnesota Association of Professional Employees.
150.19 (b) Employees specified in paragraph (a), clause (13), are included employees under
150.20paragraph (a) if employer and employee contributions are made in a timely manner in the
150.21amounts required by section
150.22salary. Employer contributions are the sole obligation of the employer assuming operation
150.23of the University of Minnesota heating plant facilities or any successor organizations to
150.24that employer.
150.25EFFECTIVE DATE.(a) This section is effective July 1, 2013.
150.26(b) The membership inclusion under paragraph (a), clause (20), does not apply to
150.27a person who is receiving an age and service retirement annuity from the general state
150.28employees retirement plan of the Minnesota State Retirement System on June 30, 2013.
150.29 Sec. 2. Minnesota Statutes 2012, section 352.029, subdivision 1, is amended to read:
150.30 Subdivision 1. Qualifications. Unless already specifically included under section
150.31352.01, subdivision 2a, or unless specifically excluded under section
150.322b
150.33or officer of a labor organization that is an exclusive bargaining agent representing state
150.34employees may elect under subdivision 2 to be covered by the general state employees
151.1retirement plan of the Minnesota State Retirement System for service with the labor
151.2organization, subject to the limitations set forth in subdivisions 2a and 2b.
151.3EFFECTIVE DATE.This section is effective July 1, 2013.
151.4 Sec. 3. Minnesota Statutes 2012, section 352.029, subdivision 2a, is amended to read:
151.5 Subd. 2a. Limitations on salary for benefits and contributions. (a) The covered
151.6salary for a labor organization employee who is a member under section 352.01,
151.7subdivision 2a, paragraph (a), or who qualifies for membership under this section or
151.8section
151.9(1) the employee's actual salary as defined under section
151.10(2) 75 percent of the salary of the governor as set under section
151.11(b) The limited covered salary determined under this subdivision must be used in
151.12determining employee, employer, and employer additional contributions under section
151.14under this chapter and chapter 356.
151.15EFFECTIVE DATE.This section is effective July 1, 2013.
151.16 Sec. 4. Minnesota Statutes 2012, section 352.029, subdivision 2b, is amended to read:
151.17 Subd. 2b. Earning restrictions apply. A retirement annuity is only payable, if the
151.18person has met any other applicable requirements, upon the termination of employment by
151.19the labor organization by the person who is a member under section 352.01, subdivision
151.202a, paragraph (a), or who elected coverage under subdivision 1
151.21
151.23section 352.01, subdivision 2a, paragraph (a), or who elected coverage under subdivision
151.241 retires and is subsequently reemployed while an annuitant by the labor organization or
151.25by any other entity employing persons who are covered by the Minnesota State Retirement
151.26System by virtue of that employment.
151.27EFFECTIVE DATE.This section is effective July 1, 2013.
151.28 Sec. 5. Minnesota Statutes 2012, section 352.029, subdivision 3, is amended to read:
151.29 Subd. 3. Contributions. The employee and employer contributions required
151.30by section
151.31the obligation of the employee who is a member under section 352.01, subdivision 2a,
151.32paragraph (a), or who chooses coverage under this section. However, the employing
152.1labor organization may pay the employer contributions. Contributions made by the
152.2employee must be made by salary deduction. The employing labor organization shall
152.3pay all contributions to the system as required by section
152.4for employees covered by section
152.5EFFECTIVE DATE.This section is effective July 1, 2013.
152.6 Sec. 6. Minnesota Statutes 2012, section 352.029, subdivision 5, is amended to read:
152.7 Subd. 5. Board membership excluded. Employees of a labor organization who
152.8become members of the system under section 352.01, subdivision 2a, paragraph (a), or
152.9under this section are not eligible for election to the board of directors.
152.10EFFECTIVE DATE.This section is effective July 1, 2013.
152.11 Sec. 7. [356.408] TERMINATION OF SURVIVOR DESIGNATION.
152.12 Subdivision 1. Authorization to terminate optional annuity form. A public
152.13pension plan retired member receiving a joint and survivor retirement annuity or a person
152.14receiving a joint and survivor disability benefit from a plan listed in section 356.30,
152.15subdivision 3, and the designated survivor of that person may mutually agree to terminate
152.16the survivor designation by filing a termination statement on a form and in the manner
152.17specified by the chief administrative officer of the applicable public pension plan. Upon
152.18filing a valid termination statement accepted by the chief administrative officer, the rights
152.19of the designated survivor to receive a benefit upon death of the plan retired or disabled
152.20annuitant are terminated, and the retired or disabled annuitant must receive a normal
152.21single-life annuity.
152.22 Subd. 2. Revised annuity form. The replacement single life annuity must be
152.23actuarially equivalent to the joint and survivor annuity as of the first day of the month
152.24following acceptance of the valid termination statement by the chief administrative officer
152.25and payment of this revised prospective annuity begins on that same date.
152.26 Subd. 3. Application. This section does not apply if the designated survivor is the
152.27spouse or former spouse of the plan member.
152.28 Subd. 4. Termination statement form requirements. The annuity form
152.29termination statements must be in written form and must be notarized. Before accepting
152.30any signed form or forms, the chief administrative officer of the applicable pension plan
152.31must offer counseling to the retired or disabled annuitant and the designated survivor
152.32regarding the implications of the annuity form waiver. The forms must indicate that this
153.1counseling has been offered and either has been completed or has been waived by the
153.2retired or disabled annuitant and the designated survivor.
153.3 Subd. 5. Prohibition against further annuity form revisions. No retired or
153.4disabled annuitant who waives the annuity form under this section may further revise
153.5the annuity form at any later date.
153.6EFFECTIVE DATE.This section is effective the day following final enactment.
153.7 Sec. 8. Minnesota Statutes 2012, section 356.48, subdivision 1, is amended to read:
153.8 Subdivision 1. Covered plans. This section applies to the following retirement plans:
153.9(1) the general state employees retirement plan of the Minnesota State Retirement
153.10System established under chapter 352;
153.11(2) the correctional state employees retirement plan of the Minnesota State
153.12Retirement System established under chapter 352;
153.13(3) the State Patrol retirement plan established under chapter 352B;
153.14(4) the unclassified state employees retirement program of the Minnesota State
153.15Retirement System established under chapter 352D;
153.16(5) the general employee retirement plan of the Public Employees Retirement
153.17Association established under chapter 353;
153.18(6) the public employees police and fire retirement plan established under chapter 353;
153.19(7) the local government correctional employees retirement plan of the Public
153.20Employees Retirement Association established under chapter 353E;
153.21(8) the Teachers Retirement Association established under chapter 354;
153.22(9) the St. Paul Teachers Retirement Fund Association established under chapter
153.23354A; and
153.24
153.25EFFECTIVE DATE.This section is effective the day following final enactment.
153.26 Sec. 9. MSRS-GENERAL RETIREMENT ELIGIBILITY CLARIFICATION;
153.27SERVICE CREDIT PURCHASE IN CERTAIN INSTANCES.
153.28(a) An eligible person described in paragraph (b) is entitled to purchase prior
153.29uncredited service credit under paragraph (c) and, if the service credit purchase is made, to
153.30have the effective start date for active retirement plan membership of June 30, 1989, and
153.31to retire under Minnesota Statutes, section 352.116, subdivision 1.
153.32(b) An eligible person is a person who:
153.33(1) was born on July 17, 1964;
154.1(2) was initially employed by the state of Minnesota as a temporary status laborer
154.2general on June 19, 1989;
154.3(3) became a seasonal status laborer general on August 30, 1989;
154.4(4) became an unlimited status laborer general on December 12, 1990;
154.5(5) has received annual statements from the Minnesota State Retirement System
154.6indicating eligibility for a retirement benefit under Minnesota Statutes, section 352.116,
154.7subdivision 1, paragraph (b), as of September 1, 2012, including the June 30, 2012, annual
154.8statement;
154.9(6) attended a Minnesota State Retirement System preretirement class in March
154.102012 and was individually informed by a Minnesota State Retirement System employee of
154.11the person's retirement eligibility under Minnesota Statutes, section 352.116, subdivision
154.121, paragraph (b); and
154.13(7) received a letter from the Minnesota State Retirement System on August 16,
154.142012, revising the start date for general state employees retirement plan allowable
154.15service credit from June 19, 1989, to September 27, 1989, and indicating consequent
154.16inapplicability of Minnesota Statutes, section 352.116, subdivision 1.
154.17(c) An eligible person may purchase allowable service credit in the general state
154.18employees retirement plan of the Minnesota State Retirement System for the period June
154.1930, 1989, by paying an amount equal to 7.63 percent of salary earned after June 18, 1989,
154.20to June 30, 1989, and to 8.85 percent of salary earned after June 30, 1989, to September 27,
154.211989, plus 8.5 percent compound interest on the total equivalent employee and employer
154.22contribution amounts from the date on which the contribution would have been deducted
154.23or paid if the person had been a member of the general state employees retirement plan of
154.24the Minnesota State Retirement System at the time to the date that this portion of the prior
154.25service credit purchase payment is made. The payment must be made in a lump sum.
154.26(d) An eligible person who purchased allowable service credit under paragraph
154.27(c) has a June 30, 1989, start date for allowable service credited by the general state
154.28employees retirement plan of the Minnesota State Retirement System and is eligible for a
154.29retirement annuity under Minnesota Statutes, section 352.116, subdivision 1.
154.30(e) Authority to purchase prior uncredited allowable service credit under this section
154.31expires on August 1, 2013.
154.32EFFECTIVE DATE.This section is effective July 1, 2013.
154.33 Sec. 10. PERA-GENERAL; PURCHASE OF CERTAIN PRIOR NORTHFIELD
154.34SERVICE CREDIT.
155.1(a) Notwithstanding any provision of Minnesota Statutes, chapter 353, to the
155.2contrary, an eligible person described in paragraph (b) is entitled to repay any prior refund
155.3as provided in paragraph (c) and is entitled to purchase service credit as provided in
155.4paragraph (d).
155.5(b) An eligible person is a person who:
155.6(1) was born on July 10, 1942;
155.7(2) was employed by the city of Northfield on October 5, 2005;
155.8(3) became a member of the general employees retirement plan of the Public
155.9Employees Retirement Association on April 5, 2009;
155.10(4) was employed by the transit division of the city of Northfield until June 29,
155.112012; and
155.12(5) was eligible for PERA general employees retirement plan membership on
155.13October 5, 2005, but was not reported to PERA for membership in a timely fashion.
155.14(c) The eligible person may repay to the general employees retirement fund of
155.15the Public Employees Retirement Association any refund of accumulated member
155.16contributions and interest previously received, plus interest at an annual rate of 8.5 percent
155.17compounded annually from the date on which the refund was paid until the date on which
155.18the refund is repaid.
155.19(d) If the eligible person repays all prior refunds under paragraph (c), the eligible
155.20person may purchase 43 months of allowable service credit and salary credit from the
155.21general employees retirement plan of the Public Employees Retirement Association by
155.22making a payment equal to the unpaid member contributions during the period October 5,
155.232005, until April 5, 2009, plus 8.5 percent interest from the date that each contribution
155.24would have been transmitted to the Public Employees Retirement Association until the
155.25date that the payment under this paragraph is made.
155.26(e) If the eligible person makes the payment required under paragraph (c) in a timely
155.27fashion, within 30 days following notification of that fact by the executive director of the
155.28Public Employees Retirement Association, the city of Northfield shall pay the balance
155.29of the prior service credit purchase payment amount required under Minnesota Statutes,
155.30section 356.551. If the payment by the city of Northfield is not paid in a timely fashion,
155.31the executive director shall collect the unpaid amount as provided under Minnesota
155.32Statutes, section 353.28, subdivision 6.
155.33(f) Authority to repay a refund and to make a prior service credit purchase payment
155.34under this section expires on December 31, 2014.
155.35EFFECTIVE DATE.This section is effective the day following final enactment.
156.1 Sec. 11. PERA-GENERAL; SERVICE CREDIT PURCHASE FOR OMITTED
156.2CONTRIBUTION PERIOD; WRIGHT COUNTY HIGHWAY DEPARTMENT
156.3EMPLOYEE.
156.4(a) Notwithstanding any provision of law to the contrary, an eligible person
156.5described in paragraph (b) is entitled to purchase from the general employees retirement
156.6plan of the Public Employees Retirement Association allowable service credit under
156.7Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member
156.8deductions described in paragraph (c).
156.9(b) An eligible person is a person who:
156.10(1) was born on March 19, 1959;
156.11(2) is a current employee of the Wright County Highway Department, covered by
156.12the general employees retirement plan of the Public Employees Retirement Association;
156.13(3) shifted from temporary to full-time employment with the highway department
156.14in April 2007; and
156.15(4) was not reported by Wright County for retirement coverage by and membership
156.16in the general employees retirement plan of the Public Employees Retirement Association
156.17until March 2012.
156.18(c) The period of uncredited service authorized for purchase is the period from
156.19April 2007 through December 2008, during which no member contributions for the
156.20general employees retirement plan of the Public Employees Retirement Association were
156.21deducted from the eligible person's salary by Wright County, and which could not be
156.22corrected through the Public Employees Retirement Association omitted contribution
156.23provision due to a three-year time limit in the provision.
156.24(d) Minnesota Statutes, section 356.551, applies to this purchase, except that the
156.25purchase payment amount payable by the eligible person is the employee contributions
156.26that should have been made, plus 8.5 percent interest compounded annually from the
156.27date each deduction should have occurred, until the date paid to the Public Employees
156.28Retirement Association. The purchase payment amount payable by Wright County is the
156.29balance of the full actuarial value prior service credit purchase payment amount as of the
156.30first day of the month next following the receipt of the eligible person's payment that is
156.31remaining after deducting the purchase payment amount payable by the eligible person.
156.32(e) The payment amount due from the county under paragraph (d) must be made on
156.33or before the 15th of the month next following the receipt of the eligible person's payment
156.34under paragraph (d). If the county purchase payment amount is not paid in a timely
156.35fashion, the amount due accrues compound monthly interest at the rate of 0.71 percent per
156.36month from the first day of the month next following the receipt of the eligible person's
157.1payment until the county purchase payment amount is received by the Public Employees
157.2Retirement Association. If the county purchase payment amount is not paid to the Public
157.3Employees Retirement Association 90 days after the receipt of the eligible person's
157.4payment, the executive director shall notify the commissioner of management and budget
157.5and the commissioner of revenue of that unpaid obligation and the unpaid obligation must
157.6be deducted from any state aid otherwise payable to the county, plus interest.
157.7(f) The eligible person must provide the executive director of the Public Employees
157.8Retirement Association with any relevant requested information pertaining to this service
157.9credit purchase.
157.10(g) Authority to make a service credit purchase under this section expires on June
157.1130, 2014, or upon the termination from public employment under Minnesota Statutes,
157.12section 353.01, subdivision 11a, whichever occurs earlier.
157.13EFFECTIVE DATE.This section is effective the day following final enactment.
157.16 Section 1. [6.496] VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS;
157.17STATE BOARD OF INVESTMENT OPTIONS.
157.18(a) Annually, on or before March 1, the state auditor shall provide all volunteer
157.19firefighter relief associations with recent and historic investment performance results of
157.20the various accounts of the Minnesota supplemental investment fund and information
157.21on the process and procedures for a volunteer firefighter relief association to utilize the
157.22Minnesota supplemental investment fund as an investment option.
157.23(b) Annually, on or before March 1, the state auditor shall provide all volunteer
157.24firefighter relief associations with basic information on the voluntary statewide lump-sum
157.25volunteer firefighter retirement plan, that a fire department has the option annually to join
157.26the retirement plan, and that, if the fire department joins the retirement plan, future asset
157.27investments would be the responsibility of the State Board of Investment.
157.28(c) The information provision required by paragraphs (a) and (b) may be provided in
157.29an electronic or other format if the state auditor determines that the format is reasonably
157.30accessible by a preponderance of volunteer firefighter relief associations.
157.31EFFECTIVE DATE.This section is effective July 1, 2013.
157.32 Sec. 2. Minnesota Statutes 2012, section 352.03, subdivision 4, is amended to read:
157.33 Subd. 4. Duties and powers of board of directors. (a) The board shall:
158.1 (1) elect a chair;
158.2 (2) appoint an executive director;
158.3 (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D,
158.4and 490 and transact the business of the system, subject to the limitations of law;
158.5 (4) consider and dispose of, or take any other action the board of directors deems
158.6appropriate concerning, denials of applications for annuities or disability benefits under
158.7this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and
158.8others pertaining to the retirement of employees and the operation of the system;
158.9 (5) oversee the administration of the deferred compensation plan established in
158.10section
158.11 (6) oversee the administration of the health care savings plan established in section
158.12
158.13 (7) approve early retirement and optional annuity factors, subject to review by the
158.14actuary retained by the Legislative Commission on Pensions and Retirement; establish
158.15the schedule for implementation of the approved factors; and notify the Legislative
158.16Commission on Pensions and Retirement of the implementation schedule.
158.17 (b) The board shall advise the director on any matters relating to the system and
158.18carrying out functions and purposes of this chapter. The board's advice shall control.
158.19 Sec. 3. Minnesota Statutes 2012, section 353.03, subdivision 3, is amended to read:
158.20 Subd. 3. Duties and powers. (a) The board shall:
158.21 (1) elect a president and vice-president;
158.22 (2) approve the staffing complement, as recommended by the executive director,
158.23necessary to administer the fund;
158.24 (3) adopt bylaws for its own government and for the management of the fund
158.25consistent with the laws of the state and may modify them at pleasure;
158.26 (4) adopt, alter, and enforce reasonable rules consistent with the laws of the state and
158.27the terms of the applicable benefit plans for the administration and management of the
158.28fund, for the payment and collection of payments from members and for the payment of
158.29withdrawals and benefits, and that are necessary in order to comply with the applicable
158.30federal Internal Revenue Service and Department of Labor requirements;
158.31 (5) pass upon and allow or disallow all applications for membership in the fund and
158.32allow or disallow claims for withdrawals, pensions, or benefits payable from the fund;
158.33 (6) adopt an appropriate mortality table based on experience of the fund as
158.34recommended by the association actuary and approved under section
158.3518
159.1 (7) provide for the payment out of the fund of the cost of administering this
159.2chapter, of all necessary expenses for the administration of the fund and of all claims for
159.3withdrawals, pensions, or benefits allowed;
159.4 (8) approve or disapprove all recommendations and actions of the executive director
159.5made subject to its approval or disapproval by subdivision 3a
159.6 (9) approve early retirement and optional annuity factors, subject to review by the
159.7actuary retained by the Legislative Commission on Pensions and Retirement; establish
159.8the schedule for implementation of the approved factors; and notify the Legislative
159.9Commission on Pensions and Retirement of the implementation schedule.
159.10 (b) In passing upon all applications and claims, the board may summon, swear, hear,
159.11and examine witnesses and, in the case of claims for disability benefits, may require the
159.12claimant to submit to a medical examination by a physician of the board's choice, at the
159.13expense of the fund, as a condition precedent to the passing on the claim, and, in the
159.14case of all applications and claims, may conduct investigations necessary to determine
159.15their validity and merit.
159.16 (c) The board may continue to authorize the sale of life insurance to members under
159.17the insurance program in effect on January 1, 1985, but must not change that program
159.18without the approval of the commissioner of management and budget. The association
159.19shall not receive any financial benefit from the life insurance program beyond the amount
159.20necessary to reimburse the association for costs incurred in administering the program.
159.21The association shall not engage directly or indirectly in any other activity involving the
159.22sale or promotion of goods or services, or both, whether to members or nonmembers.
159.23 (d) The board shall establish procedures governing reimbursement of expenses
159.24to board members. These procedures must define the types of activities and expenses
159.25that qualify for reimbursement, must provide that all out-of-state travel be authorized
159.26by the board, and must provide for the independent verification of claims for expense
159.27reimbursement. The procedures must comply with the applicable rules and policies of the
159.28Department of Management and Budget and the Department of Administration.
159.29 (e) The board may purchase fiduciary liability insurance and official bonds for the
159.30officers and members of the board of trustees and employees of the association and may
159.31purchase property insurance or may establish a self-insurance risk reserve including, but
159.32not limited to, data processing insurance and "extra-expense" coverage.
159.33 Sec. 4. Minnesota Statutes 2012, section 354.07, subdivision 1, is amended to read:
159.34 Subdivision 1. General powers of board. The board has the power to frame bylaws
159.35for its own government and for the management of the association not inconsistent with
160.1the laws of the state and to modify them at its pleasure; to adopt, alter, and enforce
160.2reasonable rules not inconsistent with the laws of the state for the administration and
160.3management of the association, for the payment and collection of payments from
160.4members, and for the payment of withdrawals and benefits; to pass upon and allow or
160.5disallow applications for membership in the association and for credit for teaching service;
160.6to pass upon and allow or disallow claims for withdrawals, pensions, or benefits payable
160.7by the fund; to adopt an appropriate mortality table based on experience of the association
160.8as recommended by the actuary retained under section
160.9postretirement interest assumption specified in section
160.10early retirement and optional annuity factors, subject to review by the actuary retained by
160.11the Legislative Commission on Pensions and Retirement; to establish the schedule for
160.12implementation of the approved factors; to notify the Legislative Commission on Pensions
160.13and Retirement of the implementation schedule; and to provide for the payment out of
160.14the fund of necessary expenses for the administration by the association and of claims for
160.15withdrawals, pensions, or benefits allowed.
160.16 Sec. 5. Minnesota Statutes 2012, section 354A.021, subdivision 2, is amended to read:
160.17 Subd. 2. Organization; board duties. (a) Each teachers retirement fund association
160.18shall be organized and governed pursuant to this chapter and chapter 317A, except that
160.19each association shall be deemed to be a nonprofit corporation without coming within
160.20the definition in section
160.21retirement fund association taken prior to April 9, 1976, shall be deemed to be valid if it
160.22conformed with Minnesota Statutes 1976, chapter 317 or 354A, or Revised Laws 1905,
160.23chapter 58, as amended through April 9, 1976.
160.24(b) In addition to the other powers and duties of a board of trustees of a first class
160.25city teacher retirement fund association, the board shall approve early retirement and
160.26optional annuity factors, subject to review by the actuary retained by the Legislative
160.27Commission on Pensions and Retirement; shall establish the schedule for implementation
160.28of the approved factors; and shall notify the Legislative Commission on Pensions and
160.29Retirement of the implementation schedule.
160.32 Section 1. Minnesota Statutes 2012, section 352B.011, subdivision 4, is amended to
160.33read:
161.1 Subd. 4. Average monthly salary. (a) Subject to the limitations of section
161.2"average monthly salary" means the average of the highest monthly salaries for five years
161.3of service as a member upon which contributions were deducted from pay under section
161.5receive allowable service and salary credit as specified under the applicable law. Average
161.6monthly salary must be based upon all allowable service if this service is less than five years.
161.7(b) The salary used for the calculation of "average monthly salary" means the salary
161.8of the member as defined in section
161.9includes the salary of the member during the period of covered employment rendered after
161.10reaching the allowable service credit limit of section 352B.08, subdivision 2, paragraph
161.11(b). The salary used for the calculation of "average monthly salary" does not include any
161.12lump-sum annual leave payments and overtime payments made at the time of separation
161.13from state service, any amounts of severance pay, or any reduced salary paid during the
161.14period the person is entitled to workers' compensation benefit payments for temporary
161.15disability.
161.16EFFECTIVE DATE.This section is effective the day following final enactment.
161.17 Sec. 2. Minnesota Statutes 2012, section 352B.02, subdivision 1a, is amended to read:
161.18 Subd. 1a. Member contributions. (a) The member contribution is the following
161.19percentage of the member's salary:
161.25(b) These contributions must be made by deduction from salary as provided in
161.26section
161.27EFFECTIVE DATE.This section is effective July 1, 2013.
161.28 Sec. 3. Minnesota Statutes 2012, section 352B.02, subdivision 1c, is amended to read:
161.29 Subd. 1c. Employer contributions. (a) In addition to member contributions,
161.30department heads shall pay a sum equal to the specified percentage of the salary upon which
161.31deductions were made, which constitutes the employer contribution to the fund as follows:
162.6(b) Department contributions must be paid out of money appropriated to departments
162.7for this purpose.
162.8EFFECTIVE DATE.This section is effective July 1, 2013.
162.9 Sec. 4. Minnesota Statutes 2012, section 352B.08, subdivision 1, is amended to read:
162.10 Subdivision 1. Eligibility; when to apply; accrual. (a) Every member who is
162.11credited with three or more years of allowable service if first employed before July 1,
162.12 2013, or with at least
162.13
162.14entitled to receive a life annuity, upon separation from state service.
162.15(b) Members must apply for an annuity in a form and manner prescribed by the
162.16executive director.
162.17(c) No application may be made more than 90 days before the date the member is
162.18eligible to retire by reason of both age and service requirements.
162.19(d) An annuity begins to accrue no earlier than 180 days before the date the
162.20application is filed with the executive director.
162.21EFFECTIVE DATE.This section is effective July 1, 2013.
162.22 Sec. 5. Minnesota Statutes 2012, section 352B.08, subdivision 2, is amended to read:
162.23 Subd. 2. Normal retirement annuity. (a) The annuity must be paid in monthly
162.24installments. The annuity shall be equal to the amount determined by multiplying
162.25the average monthly salary of the member by the percent specified in section
162.26subdivision 6
162.27completed months of allowable service, unless restricted under paragraph (b).
162.28(b) Allowable service in excess of 33 years must not be used in computing the
162.29annuity. This restriction does not apply to any member who has at least 28 years of
162.30allowable service before July 1, 2013.
162.31(c) When the annuity commences, any member contributions attributable to
162.32allowable service not used to compute the annuity due to the restrictions in paragraph (b)
162.33must be refunded using procedures specified in section 352B.11, subdivision 1.
163.1EFFECTIVE DATE.This section is effective July 1, 2013.
163.2 Sec. 6. Minnesota Statutes 2012, section 352B.08, subdivision 2a, is amended to read:
163.3 Subd. 2a. Early retirement. Any member who has become at least 50 years old
163.4and who has at least three years of allowable service if first employed before July 1,
163.5
163.6June 30,
163.7to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for
163.8each month that the member is under age 55 at the time of retirement, if
163.9 the effective date of retirement is before July 1,
163.10
163.110.34 percent for each month that the member is under age 55 at the time of retirement
163.12
163.13EFFECTIVE DATE.This section is effective July 1, 2013.
163.14 Sec. 7. Minnesota Statutes 2012, section 352B.10, subdivision 5, is amended to read:
163.15 Subd. 5. Optional annuity. A disabilitant may elect, in lieu of spousal survivorship
163.16coverage under section
163.17benefit or an optional annuity as provided in section
163.18of an optional annuity must be made in writing, on a form prescribed by the executive
163.19director, and must be made before the commencement of the payment of the disability
163.20benefit, or within 90 days before reaching age 55 or before reaching the five-year
163.21anniversary of the effective date of the disability benefit, whichever is later. The optional
163.22annuity is effective on the date on which the disability benefit begins to accrue, or the
163.23month following the attainment of age 55 or following the five-year anniversary of the
163.24effective date of the disability benefit, whichever is later.
163.25 Sec. 8. Minnesota Statutes 2012, section 352B.11, subdivision 1, is amended to read:
163.26 Subdivision 1. Refund of payments. (a) A member who has not received other
163.27benefits under this chapter is entitled to a refund of payments made by salary deduction,
163.28plus interest, if the member is separated, either voluntarily or involuntarily, from the state
163.29service that entitled the member to membership.
163.30(b) A refund under section 352B.08, subdivision 2, paragraph (c), does not result in
163.31a forfeiture of salary credit for the allowable service credit covered by the refund.
163.32
163.33under this chapter, a refund plus interest is payable to the last designated beneficiary on
164.1a form filed with the director before death, or if no designation is filed, is payable to
164.2the member's estate. Interest under this subdivision must be calculated as provided in
164.3section
164.4form prescribed by the executive director.
164.5EFFECTIVE DATE.This section is effective the day following final enactment.
164.6 Sec. 9. Minnesota Statutes 2012, section 352B.11, subdivision 2b, is amended to read:
164.7 Subd. 2b. Surviving spouse benefit
164.8three or more years of allowable service if first employed before July 1,
164.9with at least five years of allowable service if first employed after June 30,
164.10dies before attaining age 55, the surviving spouse is entitled to
164.11
164.12of the deceased member. On the first of the month next following the date on which the
164.13deceased member would have attained exact age 55, in lieu of continued receipt of the
164.14prior benefit, the surviving spouse is eligible to commence receipt of the second half of
164.15a 100 percent joint and survivor annuity if this provides a larger benefit. The joint and
164.16survivor annuity must be computed assuming the exact age 55 for the deceased member
164.17and the age of the surviving spouse on the date of death.
164.18(b) If an active member with less than three years of allowable service if first
164.19employed before July 1,
164.20first employed after June 30,
164.21receive
164.22of the average monthly salary of the deceased member.
164.23(c) If an active member with three or more years of allowable service if first
164.24employed before July 1,
164.25employed after June 30,
164.26spouse is entitled to receive
164.27for life equal to 50 percent of the average monthly salary of the deceased member, or the
164.28second half of a 100 percent joint and survivor annuity, whichever is larger. The joint and
164.29survivor annuity must be computed using the age of the deceased member on the date of
164.30death and the age of the surviving spouse on that same date.
164.31(d) If a disabilitant dies while receiving a disability benefit under section
164.32or before the benefit under that section commenced, and an optional annuity was not
164.33elected under section
164.34
164.35average monthly salary of the deceased member. On the first of the month next following
165.1the date on which the deceased member would have attained exact age 55, in lieu of
165.2continued receipt of the prior benefit, the surviving spouse is eligible to commence receipt
165.3of the second half of a 100 percent joint and survivor annuity if this provides a larger
165.4benefit. The joint and survivor annuity must be computed assuming the exact age 55 for
165.5the deceased member and the age of the surviving spouse on the date of death.
165.6(e) If a former member with three or more years of allowable service if first employed
165.7before July 1,
165.8after June 30,
165.9commenced receipt of any other benefit provided by this chapter, dies, the surviving
165.10spouse is entitled to receive
165.11second half of a 100 percent joint and survivor annuity, commencing on the first of the
165.12month next following the deceased member's date of death, or the first of the month next
165.13following the date on which the deceased member would have attained age 55, whichever
165.14is later. The joint and survivor annuity must be computed using the age of the deceased
165.15member on the date of death and the age of the surviving spouse on that same date.
165.16(f) If a former member with less than three years of allowable service if first
165.17employed before July 1,
165.18first employed after June 30,
165.19a refund or commenced receipt of any other benefit, if applicable, provided by this chapter,
165.20dies, the surviving spouse
165.21
165.22a refund of the employee contributions plus interest computed as specified in subdivision 1.
165.23EFFECTIVE DATE.This section is effective July 1, 2013.
165.24 Sec. 10. Minnesota Statutes 2012, section 356.415, subdivision 1e, is amended to read:
165.25 Subd. 1e. Annual postretirement adjustments; State Patrol retirement plan.
165.26(a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol
165.27retirement plan are entitled to a postretirement adjustment annually on January 1, as
165.28follows:
165.29(1) a postretirement increase of
165.30on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
165.31who has been receiving an annuity or a benefit for at least 18 full months before the
165.32January 1 increase; and
165.33(2) for each annuitant or benefit recipient who has been receiving an annuity or a
165.34benefit for at least six full months, an annual postretirement increase of 1/12 of
165.35percent for each month that the person has been receiving an annuity or benefit must be
166.1applied, effective January 1, following the calendar year in which the person has been
166.2retired for at least six months, but has been retired for less than 18 months.
166.3(b) The increases provided by this subdivision commence on January 1,
166.4 2014. Increases under
166.5terminate on December 31 of the calendar year in which the actuarial valuation prepared
166.6by the approved actuary under sections
166.7actuarial work promulgated by the Legislative Commission on Pensions and Retirement
166.8indicates that the market value of assets of the retirement plan equals or exceeds
166.9 85 percent of the actuarial accrued liability of the retirement plan and increases under
166.10
166.11(c) Retirement annuity, disability benefit, or survivor benefit recipients of the State
166.12Patrol retirement plan are entitled to a postretirement adjustment annually on January
166.131, as follows:
166.14(1) a postretirement increase of 1.5 percent must be applied each year, effective on
166.15January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who
166.16has been receiving an annuity or a benefit for at least 18 full months before the January 1
166.17increase; and
166.18(2) for each annuitant or benefit recipient who has been receiving an annuity or a
166.19benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent
166.20for each month that the person has been receiving an annuity or benefit must be applied,
166.21effective January 1, following the calendar year in which the person has been retired for at
166.22least six months, but has been retired for less than 18 months.
166.23(d) Increases under paragraph (c) for the State Patrol retirement plan terminate on
166.24December 31 of the calendar year in which the actuarial valuation prepared by the approved
166.25actuary under sections
166.26the Legislative Commission on Pensions and Retirement indicates that the market value of
166.27assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability
166.28of the retirement plan and increases under subdivision 1 recommence after that date.
166.29
166.30made automatically unless written notice is filed by the annuitant or benefit recipient
166.31with the executive director of the applicable covered retirement plan requesting that the
166.32increase not be made.
166.33EFFECTIVE DATE.This section is effective July 1, 2013.
166.34 Sec. 11. REPEALER.
166.35Minnesota Statutes 2012, section 352B.11, subdivision 2c, is repealed.
167.1EFFECTIVE DATE.This section is effective July 1, 2013.
167.4 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
167.5 Subd. 10. Salary. (a) Subject to the limitations of section
167.6 (1) the wages or periodic compensation
167.7employing governmental subdivision before:
167.8 (i) employee retirement deductions that are designated as picked-up contributions
167.9under section 356.62;
167.10 (ii) any employee-elected deductions for deferred compensation, supplemental
167.11retirement plans, or other voluntary salary reduction programs
167.12
167.13payment to the employee; and
167.14(iii) employee deductions for contributions to a supplemental plan or to a
167.15governmental trust established under section 356.24, subdivision 1, clause (7), to save for
167.16postretirement health care expenses, unless otherwise excluded under paragraph (b);
167.17 (2) for a public employee who is covered by a supplemental retirement plan under
167.18section
167.19
167.20supplemental retirement plan when an agreement between the parties establishes that the
167.21
167.22through payroll withholdings, or be made in lieu of an amount that would otherwise be
167.23paid as wages;
167.24 (3) for a public employee who has prior service covered by a local police or
167.25firefighters relief association that has consolidated with the Public Employees Retirement
167.26Association or to which section
167.27under the public employees police and fire fund benefit plan under section
167.29upon which member contributions to the special fund of the relief association were made
167.30prior to the effective date of the consolidation as specified by law and by bylaw provisions
167.31governing the relief association on the date of the initiation of the consolidation procedure
167.32and the actual periodic compensation of the public employee after the effective date of
167.33consolidation
167.34(4) a payment from a public employer through a grievance proceeding, settlement,
167.35or court order that is attached to a specific earnings period in which the employee's regular
168.1salary was not earned or paid to the member due to a suspension or a period of involuntary
168.2termination that is not a wrongful discharge under section 356.50; provided the amount is
168.3not less than the equivalent of the average of the hourly base salary rate in effect during
168.4the last six months of allowable service prior to the suspension or period of involuntary
168.5termination, plus any applicable increases awarded during the period that would have been
168.6paid under a collective bargaining agreement or personnel policy but for the suspension
168.7or involuntary termination, multiplied by the average number of regular hours for which
168.8the employee was compensated during the six months of allowable service prior to the
168.9suspension or period of involuntary termination, but not to exceed the compensation that
168.10the public employee would have earned if regularly employed during the applicable period;
168.11(5) the amount paid to a member who is absent from employment by reason of
168.12personal, parental, or military leave of absence if equivalent to the hourly base salary
168.13rate in effect during the six months of allowable service, or portions thereof, prior to the
168.14leave, multiplied by the average number of regular hours for which the employee was
168.15compensated during the six months of allowable service prior to the applicable leave of
168.16absence;
168.17(6) the amount paid to a member who is absent from employment by reason of an
168.18authorized medical leave of absence if specified in advance to be at least one-half but
168.19no more than equal to the earnings the member received, on which contributions were
168.20reported and allowable service credited during the six months immediately preceding
168.21the medical leave of absence; and
168.22 (7) for a public employee who receives performance or merit bonus payment under
168.23a written compensation plan, policy, or collective bargaining agreement in addition
168.24to regular salary or in lieu of regular salary increases, the compensation paid to the
168.25employee for attaining or exceeding performance goals, duties, or measures during a
168.26specified period of employment.
168.27 (b) Salary does not mean:
168.28 (1)
168.29 (2) unused annual leave, vacation, or sick leave payments, in the form of lump-sum
168.30or periodic payments
168.31 (3) for the donor, payment to another person of the value of hours donated under a
168.32benevolent vacation, personal, or sick leave donation program;
168.33 (4) any form of severance
168.34 (5) an allowance payment or per diem payments for or reimbursement of expenses
168.35 (6) lump-sum settlements not attached to a specific earnings period
169.1 (7) workers' compensation payments or disability insurance payments, including
169.2payments from employer self-insurance arrangements;
169.3
169.4coverage,
169.5care expense accounts, day care expenses, or any payments in lieu of any employer-paid
169.6group insurance coverage, including the difference between single and family rates that
169.7may be paid to a member with single coverage and certain amounts determined by the
169.8executive director to be ineligible;
169.9(9) employer-paid fringe benefits, including, but not limited to:
169.10(i) employer-paid premiums or supplemental contributions for employees for all
169.11types of insurance;
169.12(ii) membership dues or fees for the use of fitness or recreational facilities;
169.13(iii) incentive payments or cash awards relating to a wellness program;
169.14(iv) the value of any nonmonetary benefits;
169.15(v) any form of payment made in lieu of an employer-paid fringe benefit;
169.16(vi) an employer-paid amount made to a deferred compensation or tax-sheltered
169.17annuity program; and
169.18(vii) any amount paid by the employer as a supplement to salary, either as a
169.19lump-sum amount or a fixed or matching amount paid on a recurring basis, that is not
169.20available to the employee as cash;
169.21
169.22would otherwise pay toward single or family insurance coverage for a covered employee
169.23when, through a contract or agreement with some but not all employees, the employer:
169.24 (i) discontinues, or for new hires does not provide, payment toward the cost of the
169.25employee's selected insurance coverages under a group plan offered by the employer;
169.26 (ii) makes the employee solely responsible for all contributions toward the cost of
169.27the employee's selected insurance coverages under a group plan offered by the employer,
169.28including any amount the employer makes toward other employees' selected insurance
169.29coverages under a group plan offered by the employer; and
169.30 (iii) provides increased salary rates for employees who do not have any
169.31employer-paid group insurance coverages;
169.32
169.33kind paid to volunteer ambulance service personnel or volunteer firefighters, as defined
169.34in subdivision 35 or 36;
169.35
170.1
170.2prohibits grant proceeds from being used to make pension plan contributions, unless the
170.3contributions to the plan are made from sources other than the federal or state grant
170.4(14) bonus pay that is not performance or merit pay under paragraph (a), clause (6).
170.5 (c) Amounts, other than those provided under paragraph (a), clause (4), provided to
170.6an employee by the employer through a grievance proceeding, a court order, or a legal
170.7settlement are salary only if the settlement or court order is reviewed by the executive
170.8director and the amounts are determined by the executive director to be consistent with
170.9paragraph (a) and prior determinations.
170.10EFFECTIVE DATE.This section is effective the day following final enactment.
170.14 Section 1. Minnesota Statutes 2012, section 353.01, subdivision 17a, is amended to read:
170.15 Subd. 17a. Average salary. (a) "Average salary," for purposes of calculating a
170.16retirement annuity under section
170.17the average of the highest salary of the member, police officer, or firefighter, whichever
170.18applies, upon which employee contributions were paid for any five successive years of
170.19allowable service, based on dates of salary periods as listed on salary deduction reports.
170.20"Average salary" includes the salary of the employee during the period of covered
170.21employment rendered after reaching the allowable service credit limit of section 353.651,
170.22subdivision 3, paragraph (b). Average salary must be based upon all allowable service if
170.23this service is less than five years.
170.24(b) "Average salary" may not include any reduced salary paid during a period
170.25in which the employee is entitled to benefit payments from workers' compensation for
170.26temporary disability, unless the average salary is higher, including this period.
170.27EFFECTIVE DATE.This section is effective the day following final enactment.
170.28 Sec. 2. Minnesota Statutes 2012, section 353.01, subdivision 41, is amended to read:
170.29 Subd. 41. Duty disability. "Duty disability," physical or psychological, means a
170.30condition that is expected to prevent a member, for a period of not less than 12 months,
170.31from performing the normal duties of the position held by a person who is a member of the
170.32public employees police and fire retirement plan, and that is the direct result of an injury
170.33incurred during, or a disease arising out of, the performance of
170.34
171.1
171.2are specific to the positions covered by the public employees police and fire retirement plan.
171.3EFFECTIVE DATE.This section is effective the day following final enactment.
171.4 Sec. 3. Minnesota Statutes 2012, section 353.01, subdivision 47, is amended to read:
171.5 Subd. 47. Vesting. (a) "Vesting" means obtaining a nonforfeitable entitlement
171.6to an annuity or benefit from a retirement plan administered by the Public Employees
171.7Retirement Association by having credit for sufficient allowable service under paragraph
171.8(b)
171.9(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan
171.10member of the general employees retirement plan of the Public Employees Retirement
171.11Association:
171.12(1) a public employee who first became a member of the association before July
171.131, 2010, is 100 percent vested when the person has accrued credit for not less than three
171.14years of allowable service as defined under subdivision 16; and
171.15(2) a public employee who first becomes a member of the association after June 30,
171.162010, is 100 percent vested when the person has accrued credit for not less than five years
171.17of allowable service as defined under subdivision 16.
171.18(c) For purposes of qualifying for an annuity or benefit as a member of the
171.19
171.20(1) a public employee who first became a member of the association before July
171.211, 2010, is 100 percent vested when the person has accrued credit for not less than three
171.22years of allowable service as defined under subdivision 16; and
171.23(2) a public employee who first becomes a member of the association after June
171.2430, 2010, is vested at the following percentages when the person has accrued credited
171.25allowable service as defined under subdivision 16, as follows:
171.26(i) 50 percent after five years;
171.27(ii) 60 percent after six years;
171.28(iii) 70 percent after seven years;
171.29(iv) 80 percent after eight years;
171.30(v) 90 percent after nine years; and
171.31(vi) 100 percent after ten years.
171.32(d) For purposes of qualifying for an annuity or benefit as a member of the public
171.33employees police and fire retirement plan:
172.1(1) a public employee who first became a member of the association before July
172.21, 2010, is 100 percent vested when the person has accrued credit for not less than three
172.3years of allowable service as defined under subdivision 16;
172.4(2) a public employee who first becomes a member of the association after June 30,
172.52010, and before July 1, 2014, is vested at the following percentages when the person has
172.6accrued credited allowable service as defined under subdivision 16, as follows:
172.7(i) 50 percent after five years;
172.8(ii) 60 percent after six years;
172.9(iii) 70 percent after seven years;
172.10(iv) 80 percent after eight years;
172.11(v) 90 percent after nine years; and
172.12(vi) 100 percent after ten years; and
172.13(3) a public employee who first becomes a member of the association after June
172.1430, 2014, is vested at the following percentages when the person has accrued credited
172.15allowable service as defined under subdivision 16, as follows:
172.16(i) 50 percent after ten years;
172.17(ii) 55 percent after 11 years;
172.18(iii) 60 percent after 12 years;
172.19(iv) 65 percent after 13 years;
172.20(v) 70 percent after 14 years;
172.21(vi) 75 percent after 15 years;
172.22(vii) 80 percent after 16 years;
172.23(viii) 85 percent after 17 years;
172.24(ix) 90 percent after 18 years;
172.25(x) 95 percent after 19 years; and
172.26(xi) 100 percent after 20 or more years.
172.27 Sec. 4. Minnesota Statutes 2012, section 353.031, subdivision 4, is amended to read:
172.28 Subd. 4. Additional requirements; eligibility for police and fire or local
172.29government correctional service retirement plan disability benefits. (a) If an
172.30application for disability benefits is filed within two years of the date of the injury or the
172.31onset of the illness that gave rise to the disability application, the application must be
172.32supported by evidence that the applicant is unable to perform the duties of the position
172.33held by the applicant on the date of the injury or the onset of the illness causing the
172.34disability. The employer must provide evidence indicating whether the applicant is able or
172.35unable to perform the duties of the position held on the date of the injury or onset of the
173.1illness causing the disability
173.2the individual can or cannot perform, and an explanation of why the employer may or may
173.3not authorize continued employment to the applicant in the current or other position.
173.4 (b) If an application for disability benefits is filed more than two years after the
173.5date of injury or the onset of an illness causing the disability, the application must be
173.6supported by evidence that the applicant is unable to perform the
173.7
173.8the
173.9employer must provide evidence of the duties that
173.10the applicant during the 90 days
173.11 applicant performed services, whether the applicant can or cannot perform those duties
173.12overall,
173.13or cannot perform, and an explanation of why the employer may or may not authorize
173.14continued employment to the applicant in the current or other position.
173.15 (c) Any report supporting a claim to disability benefits under section
173.17disability from an injury or illness arising out of an act of duty, the report must state the
173.18specific act of duty giving rise to the claim, and relate the cause of disability to inherently
173.19dangerous duties specific
173.20
173.21
173.22
173.23does not relate the cause of disability to specific
173.24duties performed by the employee may not be relied upon as evidence to support eligibility
173.25for benefits and may be disregarded in the executive director's decision-making process.
173.26 (d) Any application for duty disability must be supported by a first report of injury as
173.27defined in section
173.28 (e) If a member who has applied for and been approved for disability benefits before
173.29the termination of service does not terminate service or is not placed on an authorized
173.30leave of absence as certified by the governmental subdivision within 45 days following
173.31the date on which the application is approved, the application shall be canceled. If an
173.32approved application for disability benefits has been canceled, a subsequent application
173.33for disability benefits may not be filed on the basis of the same medical condition for a
173.34minimum of one year from the date on which the previous application was canceled.
173.35EFFECTIVE DATE.This section is effective the day following final enactment.
174.1 Sec. 5. Minnesota Statutes 2012, section 353.35, subdivision 1, is amended to read:
174.2 Subdivision 1. Refund rights. (a) Except as provided in paragraph (b), when any
174.3former member accepts a refund, all existing service credits and all rights and benefits to
174.4which the person was entitled prior to the acceptance of the refund must terminate.
174.5(b) A refund under section 353.651, subdivision 3, paragraph (c), does not result in a
174.6forfeiture of salary credit for the allowable service credit covered by the refund.
174.7(c) The rights and benefits of a former member must not be restored until the person
174.8returns to active service and acquires at least six months of allowable service credit
174.9after taking the last refund and repays the refund or refunds taken and interest received
174.10under section
174.11compounded annually. If the person elects to restore service credit in a particular fund
174.12from which the person has taken more than one refund, the person must repay all refunds
174.13to that fund. All refunds must be repaid within six months of the last date of termination
174.14of public service.
174.15EFFECTIVE DATE.This section is effective the day following final enactment.
174.16 Sec. 6. Minnesota Statutes 2012, section 353.65, subdivision 2, is amended to read:
174.17 Subd. 2. Employee contribution. (a) For members other than members who were
174.18active members of the former Minneapolis Firefighters Relief Association on December
174.1929, 2011, or for members other than members who were active members of the former
174.20Minneapolis Police Relief Association on December 29, 2011, the employee contribution
174.21is
174.22member
174.23
174.24percent in calendar year 2015 and thereafter.
174.25(b) For members who were active members of the former Minneapolis Firefighters
174.26Relief Association on December 29, 2011, the employee contribution is an amount
174.27equal to eight percent of the monthly unit value under section
174.28multiplied by 80 and expressed as a biweekly amount for each member. The employee
174.29contribution made by a member with at least 25 years of service credit as an active
174.30member of the former Minneapolis Firefighters Relief Association must be deposited in
174.31the postretirement health care savings account established under section
174.32(c) For members who were active members of the former Minneapolis Police Relief
174.33Association on December 29, 2011, the employee contribution is an amount equal to eight
174.34percent of the monthly unit value under section
174.35and expressed as a biweekly amount for each member. The employee contribution made
175.1by a member with at least 25 years of service credit as an active member of the former
175.2Minneapolis Police Relief Association must be deposited in the postretirement health care
175.3savings account established under section
175.4(d) Contributions under this section must be made by deduction from salary in
175.5the manner provided in subdivision 4. Where any portion of a member's salary is paid
175.6from other than public funds, the member's employee contribution is based on the total
175.7salary received from all sources.
175.8EFFECTIVE DATE.This section is effective the day following final enactment.
175.9 Sec. 7. Minnesota Statutes 2012, section 353.65, subdivision 3, is amended to read:
175.10 Subd. 3. Employer contribution. (a) With respect to members other than members
175.11who were active members of the former Minneapolis Firefighters Relief Association on
175.12December 29, 2011, or for members other than members who were active members of
175.13the former Minneapolis Police Relief Association on December 29, 2011, the employer
175.14contribution is
175.15of
175.16
175.172014; and 16.2 percent in calendar year 2015 and thereafter.
175.18(b) With respect to members who were active members of the former Minneapolis
175.19Firefighters Relief Association on December 29, 2011, the employer contribution is an
175.20amount equal to the amount of the member contributions under subdivision 2, paragraph
175.21(b).
175.22(c) With respect to members who were active members of the former Minneapolis
175.23Police Relief Association on December 29, 2011, the employer contribution is an amount
175.24equal to the amount of the member contributions under subdivision 2, paragraph (c).
175.25(d) Contributions under this subdivision must be made from funds available to the
175.26employing subdivision by the means and in the manner provided in section
175.27EFFECTIVE DATE.This section is effective the day following final enactment.
175.28 Sec. 8. Minnesota Statutes 2012, section 353.651, subdivision 3, is amended to read:
175.29 Subd. 3. Retirement annuity formula. (a) The average salary as defined in
175.30section
175.31subdivision 6
175.32applicable vesting percentage indicated in section 353.01, subdivision 47, determines the
175.33amount of the normal retirement annuity. If the member has earned allowable service
176.1for performing services other than those of a police officer or firefighter, the annuity
176.2representing that service must be computed under sections
176.3(b) For a member first enrolled in the public employees police and fire retirement
176.4plan after June 30, 2014, the average salary as defined in section 353.01, subdivision 17a,
176.5paragraph (a), includes salary for all years for which contributions have been reported to
176.6the public employees police and fire retirement plan, but allowable service included in
176.7the calculation is limited to 33 years and the normal retirement annuity must not exceed
176.899 percent of the average salary.
176.9(c) When the annuity begins for members of the public employees police and fire
176.10retirement plan enrolled after June 30, 2014, a prorated share of the contributions for
176.11allowable service exceeding 33 years must be refunded to the member. The prorated
176.12share of the contributions to be refunded is determined by multiplying the accumulated
176.13deductions paid by the member to the public employees police and fire retirement plan by
176.14a percentage determined using the number of months of service in excess of 396 as the
176.15numerator and the total number of months of allowable service on which contributions
176.16were reported as the denominator. Interest as defined in section 353.34, subdivision 2,
176.17is to be applied to the prorated share of contributions from the first of the 397th month
176.18of allowable service reported to the public employees police and fire retirement plan to
176.19the first of the month the annuity begins.
176.20EFFECTIVE DATE.This section is effective the day following final enactment.
176.21 Sec. 9. Minnesota Statutes 2012, section 353.651, subdivision 4, is amended to read:
176.22 Subd. 4. Early retirement. (a) A person who becomes a public employees police
176.23and fire retirement plan member after June 30, 2007, or a former member who is reinstated
176.24as a member of the plan after that date, who is at least 50 years of age and
176.25partially vested under section
176.26service before July 1, 2014, if the person is other than a county sheriff or after January 4,
176.272015, if the person is a county sheriff is entitled upon application to a retirement annuity
176.28equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one
176.29percent for each month that the member is under age 55 at the time of retirement.
176.30 (b) Upon the termination of public service before July 1, 2014, if the person is
176.31other than a county sheriff or upon the termination of public service before January 5,
176.322015, if the person is a county sheriff, any public employees police and fire retirement
176.33plan member who first became a member of the plan before July 1, 2007, and who is
176.34not specified in paragraph (a), upon attaining at least 50 years of age with at least three
176.35years of allowable service is entitled upon application to a retirement annuity equal to the
177.1normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for
177.2each month that the member is under age 55 at the time of retirement.
177.3(c) A person other than a county sheriff who is a member of the public employees
177.4police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a
177.5member of the public employees police and fire retirement plan on or after January 5,
177.62015, and who is at least 50 years old and is at least partially vested under section 353.01,
177.7subdivision 47, and whose benefit effective date is after July 1, 2014, if other than a
177.8county sheriff or after January 4, 2015, if a county sheriff and on or before July 1, 2019, is
177.9entitled upon application to a retirement annuity equal to the normal annuity calculated
177.10under subdivision 3, reduced for each month the member is under age 55 at the time of
177.11retirement by applying a blended monthly rate that is equivalent to the sum of:
177.12(1) one-sixtieth of the annual rate of five percent, prorated for each month the
177.13person's benefit effective date is after July 1, 2014, or after December 31, 2014, whichever
177.14applies; and
177.15(2) one-sixtieth of the annual rate provided under paragraph (a) or (b), whichever
177.16applies, for each month the person's benefit effective date is before July 1, 2019.
177.17(d) A person other than a county sheriff who is a member of the public employees
177.18police and fire retirement plan on or after July 1, 2014, or a county sheriff who is a member
177.19of the public employees police and fire retirement plan on or after January 5, 2015, and
177.20who is at least 50 years old and is at least partially vested under section 353.01, subdivision
177.2147, whose benefit effective date is after July 1, 2019, is entitled, upon application, to a
177.22retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by
177.23five percent annually, prorated for each month that the member is under age 55.
177.24EFFECTIVE DATE.This section is effective the day following final enactment.
177.25 Sec. 10. Minnesota Statutes 2012, section 353.657, subdivision 2a, is amended to read:
177.26 Subd. 2a. Death while eligible survivor benefit. (a) If a member or former member
177.27who has attained the age of at least 50 years and either who is vested under section
177.29regardless of age attained, dies before the annuity or disability benefit becomes payable,
177.30notwithstanding any designation of beneficiary to the contrary, the surviving spouse may
177.31elect to receive a death while eligible survivor benefit.
177.32 (b) Notwithstanding the definition of surviving spouse in section
177.3320
177.34eligible survivor benefit if stipulated under the terms of a marriage dissolution decree
177.35filed with the association. If there is no surviving spouse or child or children, a former
178.1spouse may be entitled to a lump-sum refund payment under section
178.21
178.3benefit despite the terms of a marriage dissolution decree filed with the association.
178.4 (c) The benefit may be elected instead of a refund with interest under section
178.5subdivision 1
178.62. The benefit must be an annuity equal to the 100 percent joint and survivor annuity
178.7which the member could have qualified for on the date of death, computed as provided in
178.8sections 353.651,
178.9 (d) The surviving spouse may apply for the annuity at any time after the date
178.10on which the deceased employee would have attained the required age for retirement
178.11based on the employee's allowable service. Sections
178.12subdivision 2
178.13 (e) No payment accrues beyond the end of the month in which entitlement to
178.14such annuity has terminated. An amount equal to the excess, if any, of the accumulated
178.15contributions which were credited to the account of the deceased employee over and
178.16above the total of the annuities paid and payable to the surviving spouse must be paid to
178.17the deceased member's last designated beneficiary or, if none, to the legal representative of
178.18the estate of such deceased member.
178.19 (f) Any member may request in writing, with the signed consent of the spouse, that
178.20this subdivision not apply and that payment be made only to the designated beneficiary, as
178.21otherwise provided by this chapter.
178.22 (g) For a member who is employed as a full-time firefighter by the Department of
178.23Military Affairs of the state of Minnesota, allowable service as a full-time state Military
178.24Affairs Department firefighter credited by the Minnesota State Retirement System may be
178.25used in meeting the minimum allowable service requirement of this subdivision.
178.26EFFECTIVE DATE.This section is effective the day following final enactment.
178.27 Sec. 11. Minnesota Statutes 2012, section 353.657, subdivision 3a, is amended to read:
178.28 Subd. 3a. Maximum and minimum family benefits. (a) The maximum monthly
178.29benefit per family must not exceed the following percentages of the member's average
178.30monthly salary as specified in subdivision 3:
178.31 (1) 80 percent, if the member's death was a line of duty death; or
178.32 (2) 70 percent, if the member's death was not a line of duty death or occurred while
178.33the member was receiving a disability benefit that accrued before July 1, 2007.
178.34 (b) The minimum monthly benefit per family, including the joint and survivor
178.35optional annuity under subdivision 2a, and section
179.1less than the following percentage of the member's average monthly salary as specified in
179.2subdivision 3:
179.3 (1) 60 percent, if the death was a line of duty death; or
179.4 (2) 50 percent, if the death was not a line of duty death or occurred while the member
179.5was receiving a disability benefit that accrued before July 1, 2007.
179.6 (c) If the maximum under paragraph (a) is exceeded, the monthly benefit of the
179.7joint annuitant, surviving spouse, and dependent children, as applicable, must each be
179.8reduced
179.9not exceed the applicable maximum. The joint and survivor optional annuity, surviving
179.10spouse, or dependent children benefit, as applicable, must be restored, plus applicable
179.11postretirement adjustments under Minnesota Statutes 2008, section
179.14recipient or the surviving spouse.
179.15EFFECTIVE DATE.This section is effective the day following final enactment.
179.16 Sec. 12. Minnesota Statutes 2012, section 353E.001, subdivision 1, is amended to read:
179.17 Subdivision 1. Duty disability. "Duty disability," physical or psychological, means
179.18a condition that is expected to prevent a member, for a period of not less than 12 months,
179.19from performing the normal duties of a local government correctional service employee as
179.20defined under section
179.21a disease arising out of, the performance of
179.22
179.23
179.24the positions covered by the local government correctional service retirement plan.
179.25EFFECTIVE DATE.This section is effective the day following final enactment.
179.26 Sec. 13. Minnesota Statutes 2012, section 356.415, subdivision 1b, is amended to read:
179.27 Subd. 1b. Annual postretirement adjustments; PERA; general employees
179.28retirement plan and local government correctional retirement plan. (a) Retirement
179.29annuity, disability benefit, or survivor benefit recipients of the general employees
179.30retirement plan of the Public Employees Retirement Association and the local government
179.31correctional service retirement plan are entitled to a postretirement adjustment annually
179.32on January 1, as follows:
180.1(1) for
180.2restored for the applicable retirement plan, a postretirement increase of one percent must
180.3be applied each year, effective on January 1, to the monthly annuity or benefit amount of
180.4each annuitant or benefit recipient who has been receiving an annuity or benefit for at least
180.512 full months as of the current June 30;
180.6(2) for
180.7restored for the applicable retirement plan, for each annuitant or benefit recipient who has
180.8been receiving an annuity or a benefit for at least one full month, but less than 12 full
180.9months as of the current June 30, an annual postretirement increase of 1/12 of one percent
180.10for each month the person has been receiving an annuity or benefit must be applied;
180.11(3) for each January 1 following the restoration of funding stability for the applicable
180.12retirement plan, a postretirement increase of 2.5 percent must be applied each year,
180.13effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit
180.14recipient who has been receiving an annuity or benefit for at least 12 full months as of
180.15the current June 30; and
180.16(4) for each January 1 following restoration of funding stability for the applicable
180.17retirement plan, for each annuity or benefit recipient who has been receiving an annuity or
180.18a benefit for at least one full month, but less than 12 full months as of the current June
180.1930, an annual postretirement increase of 1/12 of 2.5 percent for each month the person
180.20has been receiving an annuity or benefit must be applied.
180.21(b) Funding stability is restored when the market value of assets of the applicable
180.22retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the
180.23applicable plan in the two most recent
180.24prepared under section
180.25actuary retained by the Public Employees Retirement Association under section
180.26(c)
180.27
180.28
180.29
180.30
180.31(b), the increase provided in paragraph (a), clauses (1) and (2),
180.32under subdivision 1, is again to be applied
180.33
180.34the applicable plan equals or is less than:
180.35(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
180.36consecutive actuarial valuations; or
181.1(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
181.2recent actuarial valuation.
181.3(d) An increase in annuity or benefit payments under this section must be made
181.4automatically unless written notice is filed by the annuitant or benefit recipient with the
181.5executive director of the Public Employees Retirement Association requesting that the
181.6increase not be made.
181.7(e) The retirement annuity payable to a person who retires before becoming eligible
181.8for Social Security benefits and who has elected the optional payment, as provided in
181.9section
181.10annuity and a life retirement annuity for the purposes of any postretirement adjustment.
181.11The period-certain retirement annuity plus the life retirement annuity must be the
181.12annuity amount payable until age 62 for section
181.13adjustment granted on the period-certain retirement annuity must terminate when the
181.14period-certain retirement annuity terminates.
181.15EFFECTIVE DATE.This section is effective the day following final enactment.
181.16 Sec. 14. Minnesota Statutes 2012, section 356.415, subdivision 1c, is amended to read:
181.17 Subd. 1c. Annual postretirement adjustments; PERA-police and fire. (a)
181.18Retirement annuity, disability benefit, or survivor benefit recipients of the public
181.19employees police and fire retirement plan are entitled to a postretirement adjustment
181.20annually on January 1, until funding stability is restored, as follows:
181.21(1) for
181.22recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
181.23been receiving the annuity or benefit for at least 12 full months as of the immediate
181.24preceding June 30, an amount equal to one percent in each year; or
181.25(2) for
181.26recipient whose annuity or benefit effective date is on or before June 1, 2014, who has
181.27been receiving the annuity or benefit for at least one full month, but not less than 11
181.28months, as of the immediate preceding June 30, an amount equal to 1/12 of one percent
181.29
181.30(3) for
181.31
181.32
181.33or benefit effective date is after June 1, 2014, who
181.34annuity or benefit for at least
181.35an amount equal to
182.1
182.2
182.3
182.4(4) for
182.5
182.6
182.7effective date is after June 1, 2014, who has been receiving the annuity or benefit for at
182.8least
182.930, an amount equal to 1/12 of
182.10
182.11
182.12
182.13
182.14receipt
182.15
182.16the public employees police and fire retirement plan are entitled to a postretirement
182.17adjustment annually on each January 1 following the restoration of funding stability as
182.18defined under paragraph
182.19under paragraph
182.20(1) for each annuitant or benefit recipient who has been receiving the annuity or
182.21benefit for at least
182.22equal to the percentage increase in the Consumer Price Index for urban wage earners and
182.23clerical workers all items index published by the Bureau of Labor Statistics of the United
182.24States Department of Labor between the immediate preceding June 30 and the June 30
182.25occurring 12 months previous, but not to exceed 2.5 percent; and
182.26
182.27
182.28
182.29for at least
182.30preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer
182.31Price Index for urban wage earners and clerical workers all items index published by
182.32the Bureau of Labor Statistics of the United States Department of Labor between the
182.33immediate preceding June 30 and the June 30 occurring 12 months previous for each full
182.34month of annuity or benefit receipt during the fiscal year in which the annuity or benefit
182.35was effective, but not to exceed 1/12 of 2.5 percent for each full month of annuity or
182.36benefit receipt during the fiscal year in which the annuity or benefit was effective.
183.1
183.2employees police and fire retirement plan equals or exceeds 90 percent of the actuarial
183.3accrued liabilities of the applicable plan in the two most recent
183.4
183.5work of the Legislative Commission on Pensions and Retirement by the approved actuary
183.6retained by the Public Employees Retirement Association under section
183.7(d) After having met the definition of funding stability under paragraph (c), a full
183.8or prorated increase, as provided in paragraph (a), clause (1), (2), (3), or (4), whichever
183.9applies, rather than adjustments under paragraph (b), is again applied in a subsequent year
183.10or years if the market value of assets of the public employees police and fire retirement
183.11plan equals or is less than:
183.12(1) 85 percent of the actuarial accrued liabilities of the applicable plan for two
183.13consecutive actuarial valuations; or
183.14(2) 80 percent of the actuarial accrued liabilities of the applicable plan for the most
183.15recent actuarial valuation.
183.16
183.17automatically unless written notice is filed by the annuitant or benefit recipient with the
183.18executive director of the Public Employees Retirement Association requesting that the
183.19increase not be made.
183.20EFFECTIVE DATE.This section is effective the day following final enactment.
183.24 Section 1. Minnesota Statutes 2012, section 354.44, subdivision 6, is amended to read:
183.25 Subd. 6. Computation of formula program retirement annuity. (a) The formula
183.26retirement annuity must be computed in accordance with the applicable provisions of the
183.27formulas stated in paragraph (b) or (d) on the basis of each member's average salary under
183.28section
183.29 (b) This paragraph, in conjunction with paragraph (c), applies to a person who first
183.30became a member of the association or a member of a pension fund listed in section
183.32paragraph (e), produces a higher annuity amount, in which case paragraph (d) applies. The
183.33average salary as defined in section
183.34percentages per year of formula service credit shall determine the amount of the annuity to
183.35which the member qualifying therefor is entitled for service rendered before July 1, 2006:
184.8 For service rendered on or after July 1, 2006, the average salary as defined in section
184.10determines the amount the annuity to which the member qualifying therefor is entitled:
184.18 (c)(i) This paragraph applies only to a person who first became a member of the
184.19association or a member of a pension fund listed in section
184.20July 1, 1989, and whose annuity is higher when calculated under paragraph (b), in
184.21conjunction with this paragraph than when calculated under paragraph (d), in conjunction
184.22with paragraph (e).
184.23 (ii) Where any member retires prior to normal retirement age under a formula
184.24annuity, the member shall be paid a retirement annuity in an amount equal to the normal
184.25annuity provided in paragraph (b) reduced by one-quarter of one percent for each month
184.26that the member is under normal retirement age at the time of retirement except that for
184.27any member who has 30 or more years of allowable service credit, the reduction shall be
184.28applied only for each month that the member is under age 62.
184.29 (iii) Any member whose attained age plus credited allowable service totals 90 years
184.30is entitled, upon application, to a retirement annuity in an amount equal to the normal
184.31annuity provided in paragraph (b), without any reduction by reason of early retirement.
184.32 (d) This paragraph applies to a member who has become at least 55 years old and
184.33first became a member of the association after June 30, 1989, and to any other member
184.34who has become at least 55 years old and whose annuity amount when calculated under
184.35this paragraph and in conjunction with paragraph (e), is higher than it is when calculated
184.36under paragraph (b), in conjunction with paragraph (c). For a basic member, the average
184.37salary, as defined in section
184.38by section
184.39determine the amount of the retirement annuity to which the basic member is entitled.
185.1The annuity of a basic member who was a member of the former Minneapolis Teachers
185.2Retirement Fund Association as of June 30, 2006, must be determined according to the
185.3annuity formula under the articles of incorporation of the former Minneapolis Teachers
185.4Retirement Fund Association in effect as of that date. For a coordinated member, the
185.5average salary, as defined in section
185.6specified in section
185.71, 2006, and by the percent specified in section
185.8service rendered on or after July 1, 2006, determines the amount of the retirement annuity
185.9to which the coordinated member is entitled.
185.10 (e) This paragraph applies to a person who has become at least 55 years old and first
185.11becomes a member of the association after June 30, 1989, and to any other member who
185.12has become at least 55 years old and whose annuity is higher when calculated under
185.13paragraph (d) in conjunction with this paragraph than when calculated under paragraph
185.14(b), in conjunction with paragraph (c). An employee who retires under the formula annuity
185.15before the normal retirement age shall be paid the normal annuity provided in paragraph
185.16(d) reduced so that the reduced annuity is the actuarial equivalent of the annuity that
185.17would be payable to the employee if the employee deferred receipt of the annuity and the
185.18annuity amount were augmented at an annual rate of three percent compounded annually
185.19from the day the annuity begins to accrue until the normal retirement age if the employee
185.20became an employee before July 1, 2006, and at 2.5 percent compounded annually if the
185.21employee becomes an employee after June 30, 2006. Except in regards to section 354.46,
185.22this paragraph remains in effect until June 30, 2015.
185.23(f) After June 30, 2020, this paragraph applies to a person who has become at least
185.2455 years old and first becomes a member of the association after June 30, 1989, and to any
185.25other member who has become at least 55 years old and whose annuity is higher when
185.26calculated under paragraph (d) in conjunction with this paragraph than when calculated
185.27under paragraph (b), in conjunction with paragraph (c). An employee who retires under
185.28the formula annuity before the normal retirement age is entitled to receive the normal
185.29annuity provided in paragraph (d). For a person who is at least age 62 or older and has at
185.30least 30 years of service, the annuity must be reduced by an early reduction factor of six
185.31percent per year of the annuity that would be payable to the employee if the employee
185.32deferred receipt of the annuity and the annuity amount were augmented at an annual rate
185.33of three percent compounded annually from the day the annuity begins to accrue until the
185.34normal retirement age if the employee became an employee before July 1, 2006, and at 2.5
185.35percent compounded annually if the employee became an employee after June 30, 2006.
185.36For a person who is not at least age 62 or older and does not have at least 30 years of
186.1service, the annuity would be reduced by an early reduction factor of four percent per year
186.2for ages 55 through 59 and seven percent per year of the annuity that would be payable
186.3to the employee if the employee deferred receipt of the annuity and the annuity amount
186.4were augmented at an annual rate of three percent compounded annually from the day
186.5the annuity begins to accrue until the normal retirement age if the employee became an
186.6employee before July 1, 2006, and at 2.5 percent compounded annually if the employee
186.7became an employee after June 30, 2006.
186.8(g) After June 30, 2015, and before July 1, 2020, for a person who would have
186.9a reduced retirement annuity under either paragraph (e) or (f) if they were applicable,
186.10the employee is entitled to receive a reduced annuity which must be calculated using
186.11a blended reduction factor augmented monthly by 1/60 of the difference between the
186.12reduction required under paragraph (e) and the reduction required under paragraph (f).
186.13
186.14exceeds 95 percent of the governor's salary unless and until the salary figures used in
186.15computing the highest five successive years average salary under paragraph (a) have been
186.16audited by the Teachers Retirement Association and determined by the executive director
186.17to comply with the requirements and limitations of section
186.18EFFECTIVE DATE.This section is effective July 1, 2013.
186.22 Section 1. [354.436] DIRECT STATE AID ON BEHALF OF THE FORMER
186.23MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION.
186.24 Subdivision 1. Aid authorization. The state shall pay $12,954,000 to the Teachers
186.25Retirement Association on behalf of the former Minneapolis Teachers Retirement Fund
186.26Association.
186.27 Subd. 2. Aid appropriation. The commissioner of management and budget shall
186.28pay the aid annually on October 1. The amount required is appropriated annually from the
186.29general fund to the commissioner of management and budget.
186.30 Subd. 3. Aid expiration. The aid specified in this section terminates and this
186.31section expires when the current assets of the Teachers Retirement Association fund equal
186.32or exceed the actuarial accrued liabilities of the fund as determined in the most recent
186.33actuarial valuation report for the Teachers Retirement Association fund by the actuary
186.34retained under section 356.214, or on the established date for full funding under section
186.35356.215, subdivision 11, whichever occurs earlier.
187.1EFFECTIVE DATE.This section is effective the day following final enactment.
187.2 Sec. 2. Minnesota Statutes 2012, section 354A.011, subdivision 21, is amended to read:
187.3 Subd. 21. Retirement. (a) "Retirement" means the time after the date of cessation
187.4of active teaching service by a teacher who is
187.5retirement annuity
187.6payable
187.7The applicable provisions of law, articles of incorporation and bylaws in effect on the date
187.8of cessation of active teaching service thereafter determine the rights of the person.
187.9(b) For members of the St. Paul Teachers Retirement Fund Association, a right to
187.10a retirement annuity requires a complete and continuous separation for 90 days from
187.11employment in any form with Independent School District No. 625, including service
187.12provided to the school district as an independent contractor or as an employee of an
187.13independent contractor.
187.14EFFECTIVE DATE.This section is effective the day following final enactment.
187.15 Sec. 3. Minnesota Statutes 2012, section 354A.12, subdivision 1, is amended to read:
187.16 Subdivision 1. Employee contributions. (a) The contribution required to be paid
187.17by each member of a teachers retirement fund association is the percentage of total salary
187.18specified below for the applicable association and program:
188.4(b) Contributions shall be made by deduction from salary and must be remitted
188.5directly to the respective teachers retirement fund association at least once each month.
188.6(c) When an employee contribution rate changes for a fiscal year, the new
188.7contribution rate is effective for the entire salary paid by the employer with the first
188.8payroll cycle reported.
188.9EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
188.10Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
188.11Teachers Retirement Fund Association on the day following final enactment.
188.12 Sec. 4. Minnesota Statutes 2012, section 354A.12, subdivision 2a, is amended to read:
188.13 Subd. 2a. Employer regular and additional contributions. (a) The employing
188.14units shall make the following employer contributions to teachers retirement fund
188.15associations:
188.16(1) for any coordinated member of one of the following teachers retirement fund
188.17associations in a city of the first class, the employing unit shall make a regular employer
188.18contribution to the respective retirement fund association in an amount equal to the
188.19designated percentage of the salary of the coordinated member as provided below:
188.33(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
188.34employing unit shall make a regular employer contribution to the respective retirement
188.35fund in an amount according to the schedule below:
189.9(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
189.10employing unit shall make an additional employer contribution to the respective fund in
189.11an amount equal to 3.64 percent of the salary of the basic member;
189.12(4) for a coordinated member of the St. Paul Teachers Retirement Fund Association,
189.13the employing unit shall make an additional employer contribution to the respective fund
189.14in an amount equal to the applicable percentage of the coordinated member's salary,
189.15as provided below:
| 189.16 |
St. Paul Teachers Retirement Fund Association |
3.84 percent |
189.18the respective teachers retirement fund association at least once each month. Delinquent
189.19amounts are payable with interest under the procedure in subdivision 1a.
189.20(c) Payments of regular and additional employer contributions for school district
189.21or technical college employees who are paid from normal operating funds must be made
189.22from the appropriate fund of the district or technical college.
189.23(d) When an employer contribution rate changes for a fiscal year, the new
189.24contribution rate is effective for the entire salary paid by the employer with the first
189.25payroll cycle reported.
189.26EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
189.27Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
189.28Teachers Retirement Fund Association on the day following final enactment.
189.29 Sec. 5. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
189.30to read:
189.31 Subd. 2c. Duluth Teachers Retirement Fund Association; employer
189.32contributions for reemployed annuitants. The school district shall make the regular
189.33employer contributions and additional employer contributions specified in subdivision 2a
189.34on behalf of any retired member of the Duluth Teachers Retirement Fund Association who
190.1is reemployed by Independent School District No. 709, including providing service to the
190.2school district as an independent contractor or as an employee of an independent contractor.
190.3EFFECTIVE DATE.This section is effective July 1, 2013.
190.4 Sec. 6. Minnesota Statutes 2012, section 354A.12, is amended by adding a subdivision
190.5to read:
190.6 Subd. 2d. St. Paul Teachers Retirement Fund Association; employer
190.7contributions for reemployed annuitants. Independent School District No. 625 shall
190.8make the regular employer contribution and additional employer contribution specified in
190.9subdivision 2a, plus a supplemental contribution equal to 2.5 percent of salary, on behalf
190.10of any retired member of the St. Paul Teachers Retirement Fund Association who is
190.11reemployed by Independent School District No. 625, including providing service to the
190.12school district as an independent contractor or as an employee of an independent contractor.
190.13EFFECTIVE DATE.This section is effective the day following final enactment.
190.14 Sec. 7. Minnesota Statutes 2012, section 354A.12, subdivision 3a, is amended to read:
190.15 Subd. 3a. Special direct state aid to first class city teachers retirement
190.16fund associations. (a) The state shall pay $346,000 as special direct state aid to the
190.17Duluth Teachers Retirement Fund Association
190.18Retirement Fund Association
190.19
190.20 (b) The
190.21commissioner of management and budget shall pay the
190.22this subdivision. The
190.23annually from the general fund to the commissioner of management and budget.
190.24EFFECTIVE DATE.This section is effective the day following final enactment.
190.25 Sec. 8. Minnesota Statutes 2012, section 354A.12, subdivision 3c, is amended to read:
190.26 Subd. 3c. Termination of supplemental contributions and direct matching
190.27and state aid. (a) The supplemental contributions payable to the St. Paul Teachers
190.28Retirement Fund Association by Independent School District No. 625 under section
190.30St. Paul Teachers Retirement Fund Association must continue until the current assets of
190.31the fund equal or exceed the actuarial accrued liability of the fund as determined in the
191.1most recent actuarial report for the fund by the actuary retained under section
191.2until June 30, 2037, whichever occurs earlier.
191.3(b) The aid to the Duluth Teachers Retirement Fund Association under section
191.4423A.02, subdivision 3, and all forms of state aid under subdivision 3a to the Duluth
191.5Teachers Retirement Fund Association must continue until the current assets of the fund
191.6equal or exceed the actuarial accrued liability of the fund as determined in the most
191.7recent actuarial report for the fund by the actuary retained under section
191.8the established date for full funding under section 356.215, subdivision 11, whichever
191.9occurs earlier.
191.10EFFECTIVE DATE.This section is effective the day following final enactment.
191.11 Sec. 9. Minnesota Statutes 2012, section 354A.12, subdivision 7, is amended to read:
191.12 Subd. 7. Recovery of benefit overpayments. (a) If the executive director discovers,
191.13within the time period specified in subdivision 8 following the payment of a refund or
191.14the accrual date of any retirement annuity, survivor benefit, or disability benefit, that
191.15benefit overpayment has occurred due to using invalid service or salary, or due to any
191.16erroneous calculation procedure, the executive director must recalculate the annuity or
191.17benefit payable and recover any overpayment. The executive director shall recover the
191.18overpayment by requiring direct repayment or by suspending or reducing the payment of a
191.19retirement annuity or other benefit payable under this chapter to the applicable person or
191.20the person's estate, whichever applies, until all outstanding amounts have been recovered.
191.21 If a benefit overpayment or improper payment of benefits occurred caused by a failure
191.22of the person to satisfy length of separation requirements for retirement under section
191.23354A.011, subdivision 21, the executive director shall recover the improper payments by
191.24requiring direct repayment. The repayment must include interest at the rate of 0.71 percent
191.25per month from the first of the month in which a monthly benefit amount was paid to the
191.26first of the month in which the amount is repaid, with annual compounding.
191.27(b) In the event the executive director determines that an overpaid annuity or benefit
191.28that is the result of invalid salary included in the average salary used to calculate the
191.29payment amount must be recovered, the executive director must determine the amount of
191.30the employee deductions taken in error on the invalid salary, with interest as determined
191.31under
191.32benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if
191.33any, must be recovered.
192.1(c) If the invalid employee deductions plus interest exceed the amount of the
192.2overpaid benefits, the balance must be refunded to the person to whom the benefit or
192.3annuity is being paid.
192.4(d) Any invalid employer contributions reported on the invalid salary must be
192.5credited against future contributions payable by the employer.
192.6(e) If a member or former member, who is receiving a retirement annuity or
192.7disability benefit for which an overpayment is being recovered, dies before recovery of the
192.8overpayment is completed and an optional annuity or refund is payable, the remaining
192.9balance of the overpaid annuity or benefit must continue to be recovered from the payment
192.10to the optional annuity beneficiary or refund recipient.
192.11(f) The board of trustees shall adopt policies directing the period of time and manner
192.12for the collection of any overpaid retirement or optional annuity, and survivor or disability
192.13benefit, or a refund that the executive director determines must be recovered as provided
192.14under this section.
192.15EFFECTIVE DATE.This section is effective the day following final enactment.
192.16 Sec. 10. Minnesota Statutes 2012, section 354A.27, is amended by adding a
192.17subdivision to read:
192.18 Subd. 6a. Postretirement adjustment transition. (a) If the funded ratio of the
192.19retirement plan based on the actuarial value of assets is at least 90 percent as reported
192.20in the most recent actuarial valuation prepared under sections 356.214 and 356.215,
192.21this subdivision expires and subsequent postretirement adjustments are governed by
192.22subdivision 7.
192.23(b) Each annuity or benefit recipient of the retirement plan who has been receiving
192.24that annuity or benefit for at least 12 months as of the applicable January 1 is eligible to
192.25receive a postretirement adjustment of one percent, payable on January 1.
192.26EFFECTIVE DATE.This section is effective July 1, 2013, and applies to the
192.27January 1, 2014, postretirement increase.
192.28 Sec. 11. Minnesota Statutes 2012, section 354A.27, subdivision 7, is amended to read:
192.29 Subd. 7. Calculation of postretirement adjustments. (a) This subdivision applies
192.30if subdivision
192.31(b) A percentage adjustment must be computed and paid under this subdivision to
192.32eligible persons under subdivision 5. This adjustment is determined by reference to the
192.33Consumer Price Index for urban wage earners and clerical workers all items index as
193.1reported by the Bureau of Labor Statistics within the United States Department of Labor
193.2each year as part of the determination of annual cost-of-living adjustments to recipients
193.3of federal old-age, survivors, and disability insurance. For calculations of cost-of-living
193.4adjustments under paragraph (c), the term "average third quarter Consumer Price Index
193.5value" means the sum of the monthly index values as initially reported by the Bureau of
193.6Labor Statistics for the months of July, August, and September, divided by 3.
193.7(c) Before January 1 of each year, the executive director must calculate the amount
193.8of the cost-of-living adjustment by dividing the most recent average third quarter index
193.9value by the same average third quarter index value from the previous year, subtract one
193.10from the resulting quotient, and express the result as a percentage amount, which must be
193.11rounded to the nearest one-tenth of one percent.
193.12(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment
193.13to be applied as a permanent increase to the regular payment of each eligible member
193.14on January 1 of the next calendar year. For any eligible member whose effective date
193.15of benefit commencement occurred during the calendar year before the cost-of-living
193.16adjustment is applied, the full increase amount must be prorated on the basis of whole
193.17calendar quarters in benefit payment status in the calendar year prior to the January 1 on
193.18which the cost-of-living adjustment is applied, calculated to the third decimal place.
193.19(e) The adjustment must not be less than zero nor greater than five percent.
193.20(f) If the funding ratio of the plan as determined in the most recent actuarial
193.21valuation using the actuarial value of assets is less than 80 percent there will be no
193.22postretirement adjustment the following January 1.
193.23EFFECTIVE DATE.This section is effective July 1, 2013.
193.24 Sec. 12. Minnesota Statutes 2012, section 354A.31, subdivision 3, is amended to read:
193.25 Subd. 3. Resumption of teaching after commencement of a retirement annuity.
193.26 (a) Any person who retired and is receiving a coordinated program retirement annuity
193.27under the provisions of sections
193.28program retirement annuity under the governing sections in the articles of incorporation
193.29or bylaws and who has resumed teaching service for the school district in which the
193.30teachers retirement fund association exists is entitled to continue to receive retirement
193.31annuity payments, except that all or a portion of the annuity payments must be deferred
193.32during the calendar year immediately following the calendar year in which the person's
193.33salary from the teaching service is in an amount greater than $46,000. The amount of the
193.34annuity deferral is one-third the salary amount in excess of $46,000 and must be deducted
194.1from the annuity payable for the calendar year immediately following the calendar year
194.2in which the excess amount was earned.
194.3 (b) If the person is retired for only a fractional part of the calendar year during the
194.4initial year of retirement, the maximum reemployment salary exempt from triggering a
194.5deferral as specified in this subdivision must be prorated for that calendar year.
194.6 (c) After a person has reached the Social Security normal retirement age, no deferral
194.7requirement is applicable regardless of the amount of any compensation received for
194.8teaching service for the school district in which the teachers retirement fund association
194.9exists.
194.10 (d) The amount of the retirement annuity deferral must be handled or disposed
194.11of as provided in section
194.12(e) Notwithstanding other paragraphs of this subdivision, for any retired Duluth
194.13Teachers Retirement Fund Association member whose effective date of retirement is after
194.14June 30, 2013, amounts specified as deferred under this subdivision must instead be
194.15forfeited to the Duluth Teachers Retirement Fund Association fund.
194.16(f) Notwithstanding other paragraphs of this subdivision, for any retired St. Paul
194.17Teachers Retirement Fund Association basic or coordinated program member whose
194.18effective date of retirement is after June 30, 2013, amounts specified as deferred under
194.19this subdivision must instead be forfeited to the St. Paul Teachers Retirement Fund
194.20Association fund.
194.21
194.22all income for services performed as a consultant or independent contractor; or income
194.23resulting from working with the school district in any capacity; and (ii) the greater of either
194.24the income received or an amount based on the rate paid with respect to an administrative
194.25position, consultant, or independent contractor in the school district in which the teachers
194.26retirement fund association exists and at the same level as the position occupied by the
194.27person who resumes teaching service.
194.28
194.29shall report to the teachers retirement fund association the amount of postretirement
194.30salary as defined in this subdivision, earned as a teacher, consultant, or independent
194.31contractor during the previous calendar year by each retiree of the teachers retirement
194.32fund association for teaching service performed after retirement. The report must be in
194.33a format approved by the executive secretary or director.
194.34EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
194.35Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
194.36Teachers Retirement Fund Association the day following final enactment.
195.1 Sec. 13. Minnesota Statutes 2012, section 354A.31, subdivision 4, is amended to read:
195.2 Subd. 4. Computation of normal coordinated retirement annuity; St. Paul
195.3fund. (a) This subdivision applies to the coordinated program of the St. Paul Teachers
195.4Retirement Fund Association.
195.5(b) The normal coordinated retirement annuity is an amount equal to a retiring
195.6coordinated member's average salary under section
195.7by the retirement annuity formula percentage.
195.8(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
195.9became a member or a member in a pension fund listed in section
195.10before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces
195.11a higher annuity amount, in which case paragraph (d) will apply. For service rendered
195.12before July 1, 2015, the retirement annuity formula percentage for purposes of this
195.13paragraph is the percent specified in section
195.14of coordinated service for the first ten years and the percent specified in section
195.15subdivision 2
195.16June 30, 2015, the retirement annuity formula percentage for purposes of this paragraph
195.17is the percent specified in section
195.18coordinated service for the first ten years and the percent specified in section
195.19subdivision 2b
195.20(d) This paragraph applies to a person who has become at least 55 years old and who
195.21first becomes a member after June 30, 1989, and to any other member who has become
195.22at least 55 years old and whose annuity amount, when calculated under this paragraph
195.23and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
195.24(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
195.25percentage for purposes of this paragraph is the percent specified in section
195.26subdivision 2
195.27the percent specified in section 356.215, subdivision 2b, for each year of coordinated
195.28service thereafter.
195.29EFFECTIVE DATE.This section is effective July 1, 2014.
195.30 Sec. 14. Minnesota Statutes 2012, section 354A.31, subdivision 4a, is amended to read:
195.31 Subd. 4a. Computation of normal coordinated retirement annuity; Duluth
195.32fund. (a) This subdivision applies to the new law coordinated program of the Duluth
195.33Teachers Retirement Fund Association.
196.1(b) The normal coordinated retirement annuity is an amount equal to a retiring
196.2coordinated member's average salary under section
196.3by the retirement annuity formula percentage.
196.4(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
196.5became a member or a member in a pension fund listed in section
196.6before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
196.7higher annuity amount, in which case paragraph (d) applies. The retirement annuity
196.8formula percentage for purposes of this paragraph is the percent specified in section
196.10ten years rendered through June 30, 2013, and the percent specified in section 356.315,
196.11subdivision 1a, per year for each year of coordinated program service rendered after June
196.1230, 2013, and the percent specified in section
196.13year of coordinated program service through June 30, 2013, and the percent specified in
196.14section 356.315, subdivision 2b, per year for each year of coordinated program service
196.15rendered after June 30, 2013.
196.16(d) This paragraph applies to a person who is at least 55 years old and who first
196.17becomes a member after June 30, 1989, and to any other member who is at least 55 years
196.18old and whose annuity amount, when calculated under this paragraph and in conjunction
196.19with subdivision 7, is higher than it is when calculated under paragraph (c) in conjunction
196.20with subdivision 6. The retirement annuity formula percentage for purposes of this
196.21paragraph is the percent specified in section
196.22coordinated program service through June 30, 2013, and the percent specified in section
196.23356.315, subdivision 2b, per year for each year of coordinated program service rendered
196.24after June 30, 2013.
196.25EFFECTIVE DATE.This section is effective July 1, 2013.
196.26 Sec. 15. Minnesota Statutes 2012, section 354A.31, subdivision 7, is amended to read:
196.27 Subd. 7.
196.28a person who has become at least 55 years old and first becomes a coordinated member
196.29after June 30, 1989, and to any other coordinated member who has become at least 55
196.30years old and whose annuity is higher when calculated using the retirement annuity
196.31formula percentage in subdivision 4, paragraph (d),
196.32as applicable, in conjunction with this subdivision than when calculated under subdivision
196.334, paragraph (c), or subdivision 4a, paragraph (c), in conjunction with subdivision 6.
196.34(b) A coordinated member who retires before the
196.35age shall be paid the retirement annuity calculated using the retirement annuity formula
197.1percentage in subdivision 4, paragraph (d), or subdivision 4a, paragraph (d),
197.2
197.3
197.4
197.5
197.6
197.7
197.8
197.9retirement factor specified below:
197.26For normal retirement ages between ages 65 and 66, the early retirement factors will
197.27be determined by linear interpolation between the early retirement factors applicable for
197.28normal retirement ages 65 and 66.
197.29EFFECTIVE DATE.This section is effective July 1, 2013.
197.30 Sec. 16. Minnesota Statutes 2012, section 354A.35, subdivision 2, is amended to read:
197.31 Subd. 2. Death while eligible to retire; surviving spouse optional annuity. (a)
197.32The surviving spouse of a vested coordinated member who dies prior to retirement may
197.33elect to receive, instead of a refund with interest under subdivision 1, an annuity equal
197.34to the 100 percent joint and survivor annuity the member could have qualified for had
197.35the member terminated service on the date of death. The surviving spouse eligible for
197.36a surviving spouse benefit under this paragraph may apply for the annuity at any time
197.37after the date on which the deceased employee would have attained the required age for
198.1retirement based on the employee's allowable service. A surviving spouse eligible for
198.2surviving spouse benefits under paragraph (b) or (c) may apply for an annuity at any time
198.3after the member's death. The member's surviving spouse shall be paid a joint and survivor
198.4annuity under section
198.5(b) If the member was under age 55 and has credit for at least 30 years of allowable
198.6service on the date of death, the surviving spouse may elect to receive a 100 percent joint
198.7and survivor annuity based on the age of the member and surviving spouse on the date
198.8of death. The annuity is payable using the full early retirement reduction under section
198.10reduction from age 55 to the age payment begins.
198.11(c) If a vested member of the Duluth Teachers Retirement Fund Association was
198.12under age 55 on the date of death but did not yet qualify for retirement, the surviving
198.13spouse may elect to receive the 100 percent joint and survivor annuity based on the age
198.14of the member and the survivor at the time of death. The annuity is payable using the
198.15full early retirement reduction under section
198.16one-half of the early retirement reduction from age 55 to the date payment begins.
198.17(d) If a vested member of the St. Paul Teachers Retirement Fund Association was
198.18under age 55 on the date of death but did not yet qualify for retirement, the surviving
198.19spouse may elect to receive the 100 percent joint and survivor annuity based on the age
198.20of the member and the survivor at the time of death. The annuity is payable using the
198.21full early retirement reduction under section
198.22one-half of the actuarial equivalent reduction from age 55 to the date payment begins.
198.23The actuarial equivalent reduction is calculated so that the reduced annuity is the actuarial
198.24equivalent of the annuity that would be payable to the member if the member deferred
198.25receipt of the annuity and the annuity amount were augmented at an annual rate of 2.5
198.26percent compounded annually from the day the annuity begins to accrue until the normal
198.27retirement age.
198.28
198.29or surviving spouse benefit payable under this section. The benefits are payable for the
198.30life of the surviving spouse, or upon expiration of the term certain benefit payment under
198.31subdivision 2b.
198.32EFFECTIVE DATE.This section is effective the day following final enactment.
198.33 Sec. 17. Minnesota Statutes 2012, section 356.215, subdivision 8, is amended to read:
199.1 Subd. 8. Interest and salary assumptions. (a) The actuarial valuation must use
199.2the applicable following preretirement interest assumption and the applicable following
199.3postretirement interest assumption:
199.4(1) select and ultimate interest rate assumption
199.26Except for the legislators retirement plan and the elective state officers retirement
199.27plan, the select preretirement interest rate assumption for the period after June 30, 2012,
199.28through June 30, 2017, is 8.0 percent. Except for the legislators retirement plan and the
199.29elective state officers retirement plan, the select postretirement interest rate assumption for
199.30the period after June 30, 2012, through June 30, 2017, is 5.5 percent, except for the Duluth
199.31teachers retirement plan and the St. Paul teachers retirement plan, each with a select
199.32postretirement interest rate assumption for the period after June 30, 2012, through June
199.3330, 2017, of 8.0 percent.
199.34(2) single rate preretirement and postretirement interest rate assumption
| 199.35 199.36 |
plan |
interest rate assumption |
|
| 199.37 |
Bloomington Fire Department Relief Association |
6.0 |
|
| 199.38 199.39 |
local monthly benefit volunteer firefighters relief associations |
5.0 |
199.41increase assumption, the applicable following modified single rate future salary increase
199.42assumption, or the applicable following graded rate future salary increase assumption:
200.1 (1) single rate future salary increase assumption
| 200.2 |
plan |
future salary increase assumption |
|
| 200.3 |
legislators retirement plan |
5.0% |
|
| 200.4 |
judges retirement plan |
3.0 |
|
| 200.5 200.6 |
Bloomington Fire Department Relief Association |
4.0 |
|
200.8increase assumption or graded rate future salary increase assumption
200.13For plans other than the Duluth teachers
200.14retirement plan, the select calculation
200.15is: during the designated select period, a
200.16designated percentage rate is multiplied by
200.17the result of the designated integer minus T,
200.18where T is the number of completed years
200.19of service, and is added to the applicable
200.20future salary increase assumption. The
200.21designated select period is ten years and the
200.22designated integer is ten for
200.23
200.24Teachers Retirement Fund Association
200.25and for the local government correctional
200.26service retirement plan and 15 for the St.
200.27Paul Teachers Retirement Fund Association.
200.28The designated percentage rate is
200.29percent for the St. Paul Teachers Retirement
200.30Fund Association. The select calculation
200.31for the Duluth Teachers Retirement Fund
200.32Association is 8.00 percent per year for
200.33service years one through seven, 7.25 percent
200.34per year for service years seven and eight,
200.35and 6.50 percent per year for service years
200.36eight and nine.
200.37 The ultimate future salary increase assumption is:
202.14(3) service-related ultimate future salary increase assumption
203.13 (c) The actuarial valuation must use the applicable following payroll growth
203.14assumption for calculating the amortization requirement for the unfunded actuarial
203.15accrued liability where the amortization retirement is calculated as a level percentage
203.16of an increasing payroll:
203.30 (d) The assumptions set forth in paragraphs (b) and (c) continue to apply, unless a
203.31different salary assumption or a different payroll increase assumption:
203.32 (1) has been proposed by the governing board of the applicable retirement plan;
203.33 (2) is accompanied by the concurring recommendation of the actuary retained under
203.34section
203.35most recent actuarial valuation report if section
203.36 (3) has been approved or deemed approved under subdivision 18.
203.37EFFECTIVE DATE.This section is effective the day following final enactment.
203.38 Sec. 18. Minnesota Statutes 2012, section 356.47, subdivision 1, is amended to read:
204.1 Subdivision 1. Application. (a) This section applies to the balance of annual
204.2retirement annuities on the amount of retirement annuity reductions after reemployed
204.3annuitant earnings limitations for retirement plans governed by section
204.4subdivision 10
204.5(b) This section also applies to the balance of annual retirement annuities on
204.6the amount of retirement annuity reductions under section 354A.31, subdivision 3, for
204.7members of the Duluth Teachers Retirement Fund Association whose effective date of
204.8retirement is before July 1, 2013.
204.9(c) This section also applies to the balance of annual retirement annuities on
204.10the amount of retirement annuity reductions under section 354A.31, subdivision 3, for
204.11members of the St. Paul Teachers Retirement Fund Association whose effective date of
204.12retirement is before July 1, 2013.
204.13EFFECTIVE DATE.This section is effective with respect to the Duluth Teachers
204.14Retirement Fund Association on July 1, 2013, and is effective with respect to the St. Paul
204.15Teachers Retirement Fund Association the day following final enactment.
204.16 Sec. 19. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
204.17 Subd. 5. Termination of state aid programs. The amortization state aid
204.18
204.19terminate as of the December 31, next following the date of the actuarial valuation when
204.20the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial
204.21accrued liability of that plan or
204.22Retirement Fund Association equal the actuarial accrued liability of that plan, whichever
204.23is later.
204.24EFFECTIVE DATE.This section is effective the day following final enactment.
204.25 Sec. 20. DULUTH TEACHERS RETIREMENT FUND ASSOCIATION BYLAW
204.26AMENDMENT AUTHORIZATION.
204.27Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the Duluth
204.28Teachers Retirement Fund Association is authorized to amend its articles of incorporation
204.29or its bylaws to specify the revised contribution rates under sections 3 and 4, required
204.30employee contributions on behalf of reemployed annuitants as specified under section 5,
204.31and revised treatment of reemployed annuitant holding accounts under sections 12 and 18.
204.32EFFECTIVE DATE.This section is effective July 1, 2013.
205.1 Sec. 21. ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION BYLAW
205.2AMENDMENT AUTHORIZATION.
205.3Consistent with Minnesota Statutes, section 354A.12, subdivision 4, the St. Paul
205.4Teachers Retirement Fund Association is authorized to amend its articles of incorporation
205.5or its bylaws to apply the reduction factors stated in section 15 rather than the actuarial
205.6reduction factors previously authorized.
205.7EFFECTIVE DATE.This section is effective the day following final enactment.
205.8 Sec. 22. CONSOLIDATION STUDY.
205.9The boards and executive directors of the Duluth Teachers Retirement Fund
205.10Association, the St. Paul Teachers Retirement Fund Association, and the Teachers
205.11Retirement Association shall jointly study and develop a report on the feasibility and
205.12requirements necessary for the consolidation of the Duluth Teachers Retirement Fund
205.13Association and the St. Paul Teachers Retirement Fund Association into the Teachers
205.14Retirement Association. The report shall include detailed actuarial analysis that will define
205.15the financial requirements for consolidating with the Teachers Retirement Association
205.16in a manner, consistent with past practice, that assures that the assets of the Teachers
205.17Retirement Association are protected, that the merging funds are fully funded, and that the
205.18Teachers Retirement Association is not subsidizing the merged funds. The report shall
205.19include implementation plans, proposed allocation of costs between the state and all
205.20interested parties, time frames sufficient for an orderly transition, necessary management
205.21and administrative changes, asset investment related considerations, and education and
205.22communication plans to fully inform the executive branch, the legislative branch, and all
205.23system stakeholders of financial requirements. The report shall include plans to treat
205.24the employees of the Duluth Teachers Retirement Fund Association and the St. Paul
205.25Teachers Retirement Fund Association in a manner comparable to that provided to the
205.26former employees of the former Minneapolis Teachers Retirement Fund Association upon
205.27consolidation into the Teachers Retirement Fund Association. The boards and executive
205.28directors shall consult with the executive director of the State Board of Investment on
205.29investment management transition issues. The report must be submitted to the Legislative
205.30Commission on Pensions and Retirement by January 6, 2014.
205.31EFFECTIVE DATE.This section is effective the day following final enactment.
205.32 Sec. 23. FY2014-2015 BIENNIUM DTRFA AND SPTRFA ADDITIONAL
205.33DIRECT STATE AID.
206.1On October 1, 2013, and on October 1, 2014, the commissioner of management and
206.2budget shall pay $6,000,000 to the Duluth Teachers Retirement Fund Association and
206.3$7,000,000 to the St. Paul Teachers Retirement Fund Association. The required amounts
206.4are appropriated annually from the general fund to the commissioner of management
206.5and budget.
206.6EFFECTIVE DATE.This section is effective July 1, 2013, and expires the day
206.7following the day on which the July 1, 2014-June 30, 2015, payments are made.
206.8 Sec. 24. REPEALER.
206.9Minnesota Statutes 2012, section 354A.27, subdivision 6, is repealed.
206.12 Section 1. Minnesota Statutes 2012, section 356.315, is amended by adding a
206.13subdivision to read:
206.14 Subd. 8a. Judges plan. The applicable benefit accrual rate is 2.5 percent.
206.15EFFECTIVE DATE.This section is effective July 1, 2013.
206.16 Sec. 2. Minnesota Statutes 2012, section 356.415, subdivision 1, is amended to read:
206.17 Subdivision 1. Annual postretirement adjustments; generally. (a) Except as
206.18otherwise provided in subdivision 1a, 1b, 1c, 1d,
206.19benefit, or survivor benefit recipients of a covered retirement plan are entitled to a
206.20postretirement adjustment annually on January 1, as follows:
206.21(1) a postretirement increase of 2.5 percent must be applied each year, effective
206.22January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has
206.23been receiving an annuity or a benefit for at least 12 full months prior to the January 1
206.24increase; and
206.25(2) for each annuitant or benefit recipient who has been receiving an annuity or a
206.26benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5
206.27percent for each month that the person has been receiving an annuity or benefit must be
206.28applied, effective on January 1 following the calendar year in which the person has been
206.29retired for less than 12 months.
206.30(b) The increases provided by this subdivision commence on January 1, 2010.
207.1(c) An increase in annuity or benefit payments under this section must be made
207.2automatically unless written notice is filed by the annuitant or benefit recipient with the
207.3executive director of the covered retirement plan requesting that the increase not be made.
207.4(d) The retirement annuity payable to a person who retires before becoming eligible
207.5for Social Security benefits and who has elected the optional payment as provided in
207.6section
207.7annuity and a life retirement annuity for the purposes of any postretirement adjustment.
207.8The period certain retirement annuity plus the life retirement annuity must be the
207.9annuity amount payable until age 62 for section
207.10adjustment granted on the period certain retirement annuity must terminate when the
207.11period certain retirement annuity terminates.
207.12EFFECTIVE DATE.This section is effective July 1, 2013.
207.13 Sec. 3. Minnesota Statutes 2012, section 356.415, is amended by adding a subdivision
207.14to read:
207.15 Subd. 1f. Annual postretirement adjustments; Minnesota State Retirement
207.16System judges retirement plan. (a) The increases provided under this subdivision begin
207.17on January 1, 2014, and are in lieu of increases under subdivision 1 or 1a for retirement
207.18annuity, disability benefit, or survivor benefit recipients of the judges retirement plan.
207.19(b) Retirement annuity, disability benefit, or survivor benefit recipients of the
207.20judges retirement plan are entitled to a postretirement adjustment annually on January
207.211, as follows:
207.22(1) a postretirement increase of 1.75 percent must be applied each year, effective
207.23on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient
207.24who has been receiving an annuity or a benefit for at least 18 full months before the
207.25January 1 increase; and
207.26(2) for each annuitant or benefit recipient who has been receiving an annuity or a
207.27benefit for at least six full months, an annual postretirement increase of 1/12 of 1.75
207.28percent for each month that the person has been receiving an annuity or benefit must be
207.29applied, effective January 1, following the calendar year in which the person has been
207.30retired for at least six months, but has been retired for less than 18 months.
207.31(c) Increases under this subdivision terminate on December 31 of the calendar
207.32year in which the actuarial valuation prepared by the approved actuary under sections
207.33356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative
207.34Commission on Pensions and Retirement indicates that the market value of assets of the
207.35judges retirement plan equals or exceeds 70 percent of the actuarial accrued liability of
208.1the retirement plan. Increases under subdivision 1 or 1a, whichever is applicable, begin
208.2on the January 1 next following that date.
208.3(d) An increase in annuity or benefit payments under this subdivision must be made
208.4automatically unless written notice is filed by the annuitant or benefit recipient with the
208.5executive director of the applicable covered retirement plan requesting that the increase
208.6not be made.
208.7EFFECTIVE DATE.This section is effective July 1, 2013.
208.8 Sec. 4. Minnesota Statutes 2012, section 490.121, subdivision 21f, is amended to read:
208.9 Subd. 21f. Normal retirement date. (a) For a judge in the tier I program, "normal
208.10retirement date" means the date
208.11(b) For a judge in the tier II program, normal retirement date means the date the
208.12judge attains age 66.
208.13EFFECTIVE DATE.This section is effective July 1, 2013.
208.14 Sec. 5. Minnesota Statutes 2012, section 490.121, subdivision 22, is amended to read:
208.15 Subd. 22. Service credit limit. "Service credit limit" means, for a judge covered
208.16by tier I, the greater of: (1) 24 years of allowable service under this chapter; or (2), for
208.17
208.18allowable service under chapter 490, which, when multiplied by the percentage listed in
208.19section
208.2076.8. For a judge covered by tier II, there is no service credit limit.
208.21EFFECTIVE DATE.This section is effective July 1, 2013.
208.22 Sec. 6. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
208.23to read:
208.24 Subd. 25. Tier I. "Tier I" is the benefit program of the retirement plan with a
208.25membership specified by section 490.1221, paragraph (b), and governed by sections
208.26356.315, subdivisions 7 and 8; 356.415, subdivisions 1 and 1f; and 490.121 to 490.133,
208.27except as modified in sections 356.315, subdivision 8a; 490.121, subdivision 21f,
208.28paragraph (b); 490.1222; 490.123, subdivision 1a, paragraph (b); and 490.124, subdivision
208.291, paragraphs (c) and (d).
208.30EFFECTIVE DATE.This section is effective July 1, 2013.
209.1 Sec. 7. Minnesota Statutes 2012, section 490.121, is amended by adding a subdivision
209.2to read:
209.3 Subd. 26. Tier II. "Tier II" is the benefit program of the retirement plan with a
209.4membership specified by section 490.1221, paragraph (c), and governed by sections
209.5356.315, subdivision 8a; 356.415, subdivisions 1 and 1f; 490.121 to 490.133, as modified
209.6in section 490.121, subdivision 21f, paragraph (b); 490.1222; 490.123, subdivision 1a,
209.7paragraph (b); and 490.124, subdivision 1, paragraphs (c) and (d).
209.8EFFECTIVE DATE.This section is effective July 1, 2013.
209.9 Sec. 8. [490.1221] JUDGES PLAN PROGRAMS.
209.10(a) Members of the judges retirement plan are members of either the tier I or tier II
209.11program.
209.12(b) A tier I program judge is a person who was first appointed or elected as a judge
209.13before July 1, 2013, who was not eligible for the tier II program because the judge had
209.14five or more years of allowable service on or before December 30, 2013, or did not elect
209.15that program.
209.16(c) A tier II program judge is a person who:
209.17(1) was first appointed or elected as a judge after June 30, 2013; or
209.18(2) was first appointed or elected as a judge before July 1, 2013, had less than five
209.19years of allowable service on or before December 30, 2013, and made an election under
209.20section 14 to be in the tier II program.
209.21EFFECTIVE DATE.This section is effective July 1, 2013.
209.22 Sec. 9. [490.1222] APPLICATION OF SERVICE CREDIT LIMIT.
209.23The service credit limit specified in section 490.121, subdivision 22, does not apply
209.24to a judge in the tier II program.
209.25EFFECTIVE DATE.This section is effective July 1, 2013.
209.26 Sec. 10. Minnesota Statutes 2012, section 490.123, subdivision 1a, is amended to read:
209.27 Subd. 1a. Member contribution rates. (a) A judge
209.28
209.29whose service does not exceed the service credit limit in section
209.30shall contribute to the fund from each salary payment a sum equal to
209.31of salary.
210.1(b) A judge in the tier II program shall contribute to the fund from each salary
210.2payment a sum equal to 7.00 percent of salary.
210.3
210.4deduction. The deduction must be made by the state court administrator under section
210.6EFFECTIVE DATE.This section is effective beginning on the first day of the first
210.7full payroll period following an increase in judicial salaries of at least one percent due to
210.8action by the legislature during calendar year 2013 or later.
210.9 Sec. 11. Minnesota Statutes 2012, section 490.123, subdivision 1b, is amended to read:
210.10 Subd. 1b. Employer contribution rate. (a) The employer contribution rate to the
210.11fund on behalf of a judge is
210.12after a judge exceeds the service credit limit in section
210.13 (b) The employer contribution must be paid by the state court administrator. The
210.14employer contribution is payable at the same time as member contributions are made
210.15under subdivision 1a or as employee contributions are made to the unclassified program
210.16governed by chapter 352D for judges whose service exceeds the limit in section
210.17subdivision 22, are remitted.
210.18EFFECTIVE DATE.This section is effective the first day of the first full payroll
210.19period after June 30, 2013.
210.20 Sec. 12. Minnesota Statutes 2012, section 490.124, subdivision 1, is amended to read:
210.21 Subdivision 1.
210.22and after the mandatory retirement date, the normal retirement date, the early retirement
210.23date, or one year from the disability retirement date, as the case may be, a retiring judge is
210.24eligible to receive a retirement annuity from the judges' retirement fund.
210.25 (b) For a tier I program judge, the retirement annuity is an amount equal to:
210.26 (1) the percent specified in section
210.27final average compensation with that result then multiplied by the number of years and
210.28fractions of years of allowable service rendered before July 1, 1980; plus
210.29 (2) the percent specified in section
210.30final average compensation with that result then multiplied by the number of years and
210.31fractions of years of allowable service rendered after June 30, 1980.
210.32(c) For a tier II program judge who was first appointed or elected as a judge before
210.33July 1, 2013, the retirement annuity is an amount equal to:
211.1(1) the percent specified in section 356.315, subdivision 8, multiplied by the judge's
211.2final average compensation with that result then multiplied by the number of years and
211.3fractions of years of allowable service rendered before January 1, 2014; plus
211.4(2) the percentage specified in section 356.315, subdivision 8a, multiplied by the
211.5judge's final average compensation with that result then multiplied by the number of years
211.6and fractions of years of allowable service rendered after December 31, 2013.
211.7(d) For a tier II program judge who was first appointed or elected as a judge after
211.8June 30, 2013, the retirement annuity is an amount equal to the percent specified in section
211.9356.315, subdivision 8a, multiplied by the judge's final average compensation with that
211.10result then multiplied by the number of years and fractions of years of allowable service.
211.11
211.12section
211.13the compensation earned by the judge during this period of judicial service must be used in
211.14determining a judge's final average compensation and calculating the retirement annuity.
211.15EFFECTIVE DATE.This section is effective July 1, 2013.
211.16 Sec. 13. MEMBER CONTRIBUTION INCREASE CONDITION.
211.17Any increase in judicial salaries enacted by the legislature during calendar year 2013
211.18or later is not applicable to a judge in the tier I program if the member contribution rate
211.19applicable to that judge in the tier I program under Minnesota Statutes, section 490.123,
211.20subdivision 1a, is not deducted from the salary of the judge.
211.21EFFECTIVE DATE.This section is effective the day following final enactment.
211.22 Sec. 14. TIER II PROGRAM ELECTION; PRE-JULY 1, 2013, JUDGES.
211.23 Subdivision 1. Authority. A person who was first appointed or elected as a judge
211.24covered by the Minnesota State Retirement System judges retirement plan before July 1,
211.252013, is eligible to elect treatment as a tier II program judge if the judge has less than five
211.26years of allowable service on the date the judge makes a valid election under subdivision 2.
211.27 Subd. 2. Election procedure. An eligible judge under subdivision 1 may elect to
211.28be subject to the provisions of Minnesota Statutes, chapter 490, applicable to a tier II
211.29program judge rather than the tier I program by electing that treatment in writing before
211.30January 1, 2014, on a form provided by the executive director of the Minnesota State
211.31Retirement System.
211.32 Subd. 3. Effect of election. (a) The election is irrevocable.
212.1(b) An eligible judge who fails to make an election remains in the tier I program.
212.2(c) If the tier II program is elected by an eligible judge, member contributions based on
212.3revised member contribution rates under Minnesota Statutes, section 490.123, subdivision
212.41a, begin on the first day of the first full pay period occurring after January 1, 2014.
212.5EFFECTIVE DATE.This section is effective July 1, 2013.
212.8 Section 1. Minnesota Statutes 2012, section 356.91, is amended to read:
212.9356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION.
212.10 (a) Upon written authorization of a person receiving an annuity from a public
212.11pension fund administered by the Minnesota State Retirement System or the Public
212.12Employees Retirement Association, the executive director of the public pension fund
212.13 shall deduct from the retirement annuity an amount requested by the annuitant to be paid
212.14as membership dues or other payments to any labor organization that is an exclusive
212.15bargaining agent representing public employees or an organization representing retired
212.16public employees of which the annuitant is a member and shall, on a monthly basis, pay
212.17the amount to the organization so designated by the annuitant.
212.18 (b) A pension fund and the plan fiduciaries which authorize or administer deductions
212.19of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit
212.20the dues amounts, provided that the fund and the fiduciaries have acted in good faith.
212.21 (c)
212.22
212.23exclusive bargaining agent representing public employees or an organization representing
212.24retired public employees may conduct blind mailings to the annuitants of a retirement
212.25system specified in paragraph (a) by requesting that the retirement system mail voluntary
212.26membership information and dues deduction cards to annuitants. Such mailings shall not
212.27be for the purpose of supporting or opposing any candidate, political party, or ballot
212.28measure. The organization requesting the blind mailing shall pay all costs associated
212.29with these mailings, including but not limited to copying, labeling, mailing, postage, and
212.30record keeping. In lieu of administering a blind mailing in-house, a retirement system
212.31may transmit annuitant data necessary for conducting a blind mailing to a mail center
212.32pursuant to a secure data share agreement with the mail center which provides that neither
212.33the organization nor any other entity shall have direct access to the data transmitted by
212.34the retirement system. The retirement system shall have no obligation to approve or
213.1disapprove, or otherwise be responsible for, the content of the mailings. No organization
213.2shall conduct more than two blind mailings per calendar year.
213.3
213.4
213.7 Section 1.PUBLIC SAFETY; APPROPRIATIONS.
213.8The following amounts are appropriated to the Department of Public Safety for the
213.9increased employer contribution in section 3:
213.10(1) $95,000 in fiscal year 2015 is appropriated from the general fund. The general
213.11fund base appropriation for fiscal year 2017 is $189,000;
213.12(2) $546,000 in fiscal year 2015 is appropriated from the trunk highway fund. The
213.13trunk highway fund base appropriation for fiscal year 2017 is $1,093,000; and
213.14(3) $8,000 in fiscal year 2015 is appropriated from the highway user tax distribution
213.15fund. The highway user tax distribution fund base appropriation for fiscal year 2017 is
213.16$16,000."
213.17Delete the title and insert:
213.19relating to retirement; modifying State Board of Investment provisions; MSRS
213.20administrative provisions; PERA administrative provisions; benefit accrual rate
213.21specification; revisions and repeals of former local police and paid firefighter
213.22relief association laws; volunteer firefighter retirement changes; one person
213.23and small group retirement changes; miscellaneous provisions; state patrol
213.24retirement plan financial solvency measures; PERA plans salary definitions;
213.25public employees police and fire retirement plan financial solvency measures;
213.26Teachers Retirement Association early retirement reduction factors; first class
213.27city teacher retirement increases and financial solvency measures; judges
213.28retirement plan financial solvency measures; requiring reports; appropriating
213.29money;amending Minnesota Statutes 2012, sections 3.85, subdivision 10;
213.303A.011; 3A.03, subdivision 3; 3A.07; 3A.115; 3A.13; 3A.15; 6.495, subdivisions
213.311, 3; 6.67; 11A.24, subdivision 1; 13D.01, subdivision 1; 69.011, subdivisions
213.321, 2, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, 11; 69.031,
213.33subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.77,
213.34subdivisions 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, subdivision 1; 69.774,
213.35subdivision 1; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381;
213.36352.01, subdivisions 2a, 17b; 352.029, subdivisions 1, 2a, 2b, 3, 5; 352.03,
213.37subdivisions 4, 8; 352.045, by adding subdivisions; 352.113, subdivisions 4,
213.386, 8, by adding subdivisions; 352.115, subdivision 3; 352.22, subdivision 3;
213.39352.87, subdivision 3; 352.93, subdivision 2; 352.95, subdivision 1; 352.955,
213.40subdivisions 1, 3; 352B.011, subdivisions 4, 13; 352B.02, subdivisions 1a,
213.411c; 352B.08, subdivisions 1, 2, 2a; 352B.10, subdivisions 1, 5, by adding
213.42a subdivision; 352B.11, subdivisions 1, 2b; 352D.04, subdivision 2; 353.01,
213.43subdivisions 2a, 2b, 6, 10, 16, 17a, 29, 41, 47; 353.03, subdivision 3; 353.031,
213.44subdivision 4; 353.27, subdivision 7; 353.29, subdivision 3; 353.34, subdivisions
213.451, 2; 353.35, subdivision 1; 353.50, subdivisions 3, 6; 353.64, subdivision 1a;
213.46353.65, subdivisions 2, 3; 353.651, subdivisions 3, 4; 353.656, subdivisions 1,
214.11a, 3a; 353.657, subdivisions 2, 2a, 3, 3a; 353.659; 353.665, subdivisions 1,
214.25, 8, by adding a subdivision; 353.71, subdivision 1; 353E.001, subdivision
214.31; 353E.04, subdivision 3; 353E.06, subdivision 1; 353F.02, subdivisions 3,
214.44, 6, by adding a subdivision; 353F.025, subdivisions 1, 2; 353F.03; 353F.04;
214.5353F.05; 353F.051, subdivision 1; 353F.052; 353F.06; 353F.07; 353F.08;
214.6353G.05, subdivision 2; 354.07, subdivision 1; 354.44, subdivision 6; 354A.011,
214.7subdivision 21; 354A.021, subdivision 2; 354A.12, subdivisions 1, 2a, 3a, 3c,
214.87, by adding subdivisions; 354A.27, subdivision 7, by adding a subdivision;
214.9354A.31, subdivisions 3, 4, 4a, 7; 354A.35, subdivision 2; 356.20, subdivisions
214.102, 4; 356.214, subdivision 1; 356.215, subdivisions 1, 8, 18; 356.216; 356.219,
214.11subdivisions 1, 2, 8; 356.30, subdivisions 1, 3; 356.315, subdivision 9, by
214.12adding a subdivision; 356.401, subdivision 3; 356.406, subdivision 1; 356.415,
214.13subdivisions 1, 1a, 1b, 1c, 1e, 2, by adding a subdivision; 356.47, subdivision
214.141; 356.48, subdivision 1; 356.635, subdivision 1; 356.91; 356A.01, subdivision
214.1519; 356A.06, subdivision 4; 356A.07, subdivision 2; 423A.02, subdivisions 1,
214.161b, 2, 3, 3a, 4, 5; 424A.001, subdivision 4, by adding a subdivision; 424A.01,
214.17subdivision 6; 424A.015, subdivisions 1, 4; 424A.016, subdivision 6; 424A.02,
214.18subdivisions 7, 9; 424A.10, subdivisions 1, 2; 475.52, subdivision 6; 490.121,
214.19subdivisions 21f, 22, by adding subdivisions; 490.123, subdivisions 1a, 1b;
214.20490.124, subdivision 1; proposing coding for new law in Minnesota Statutes,
214.21chapters 3A; 6; 353F; 354; 356; 490; repealing Minnesota Statutes 2012, sections
214.223A.02, subdivision 3; 69.021, subdivision 6; 69.77, subdivision 3; 352.045,
214.23subdivisions 3, 4; 352.955, subdivision 2; 352B.11, subdivision 2c; 352C.001;
214.24352C.091, subdivision 1; 352C.10; 353.29, subdivision 6; 353.64, subdivision 3;
214.25353.665, subdivisions 2, 3, 4, 6, 7, 9, 10; 353.667; 353.668; 353.669; 353.6691;
214.26353A.01; 353A.02; 353A.03; 353A.04; 353A.05; 353A.06; 353A.07; 353A.08;
214.27353A.081; 353A.083; 353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04;
214.28353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12;
214.29353B.13; 353B.14; 353F.02, subdivisions 4, 5; 353F.025, subdivision 3;
214.30354A.27, subdivision 6; 356.315, subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 5, 5a, 6, 7,
214.318; 423A.01; 423A.02, subdivision 1a; 423A.04; 423A.05; 423A.07; 423A.10;
214.32423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171;
214.33423A.18; 423A.19; 423A.20; 423A.21; 423A.22; 424A.10, subdivision 5."