HF 594

as introduced - 87th Legislature (2011 - 2012) Posted on 02/17/2011 10:54am

A bill for an act
relating to retirement; ending public pension plan coverage; proposing coding for
new law in Minnesota Statutes, chapter 356.

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

Section 1.

new text begin [356.991] TERMINATION OF PUBLIC PENSION PLAN
COVERAGE.
new text end

new text begin (a) For employment on and after July 1, 2011, no public employee or elected official
earns service credit in any Minnesota defined benefit public pension plan, and no employee
or official may contribute to a Minnesota defined benefit or defined contribution public
pension plan. A public employee who is not vested in a defined benefit public pension
plan on June 30, 2011, may apply for and receive a refund of the employee contributions
made to the plan, with interest, as specified in the laws governing refunds from that plan.
new text end

new text begin (b) Each public employer shall continue to contribute to each defined benefit public
pension plan the same percentage of employee or official salary paid to the plan before
July 1, 2011, on behalf of any current and future employee or official who would have
earned service credit under laws in effect on June 30, 2011. The employer contribution to
a pension plan shall continue until the most recent actuarial valuation for the plan indicates
that the plan is projected to have enough assets to pay estimated liabilities without future
employer contributions. A public employer may not contribute to a defined contribution
pension plan after July 1, 2011.
new text end

new text begin (c) This section supersedes any conflicting law. This section does not apply to a
volunteer firefighter relief association or plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end