Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                         CHAPTER 259-H.F.No. 98 
           An act relating to retirement; expanding the 
          availability of certain appropriations for actuarial 
          services; authorizing amendments for the Duluth, 
          Minneapolis, and St. Paul teachers retirement fund 
          associations; approving the rescission of exemption 
          from modification of pension coverage for Faribault 
          firefighters and police relief associations; providing 
          lump sum payments to certain retired or disabled 
          public employees; appropriating money; amending Laws 
          1979, chapter 109, section 1, as amended. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [AVAILABILITY OF ACTUARIAL SERVICES 
APPROPRIATION.] 
    Notwithstanding any provision of law governing the 
allocation, encumbrance, or expenditure of appropriated funds, 
funds appropriated for actuarial services by Laws 1984, chapter 
564, sections 1 and 2 may be expended during the period of the 
appropriation for qualified services performed prior to the 
effective date of the appropriation.  Qualified services are 
those required as a prerequisite to actuarial work performed 
during the period of the appropriation. 
    Sec. 2.  [DULUTH TEACHERS; AMENDMENT OF ARTICLES.] 
    Authorization is hereby granted in accordance with 
Minnesota Statutes, section 354A.12, subdivision 4, for the 
Duluth teachers retirement fund association to amend its 
articles of incorporation to authorize an annual lump sum 
postretirement adjustment payable to retirees or beneficiaries.  
    The amendment may provide that the board of trustees shall 
have the discretion to eliminate or reduce the adjustment in any 
fiscal year and to establish a minimum period during which a 
recipient must have been receiving an annuity or benefits in 
order to be eligible for an adjustment, which shall be at least 
three years.  The adjustment shall only be made if the 
investment income of the fund during the preceding fiscal year 
was at least six percent of the asset value of the fund at the 
end of that fiscal year.  The amount that each eligible 
annuitant or benefit recipient shall be entitled to receive 
shall be determined as follows: 
    (a) the years of service of each annuitant as credited by 
the fund and the years of service of each person on behalf of 
whom a survivor benefit is paid as credited by the fund and the 
years receiving payments shall be totaled;  
    (b) the dollar amount equal to up to one percent of the 
asset value of the fund at the end of the previous fiscal year 
shall be determined by the board of trustees;  
    (c) the dollar amount determined pursuant to clause (b) 
shall be divided by the aggregate years of credited service and 
years receiving payments in a manner determined by the board of 
trustees pursuant to clause (a), the result is to be considered 
the adjustment figure per unit;  
    (d) for each eligible annuitant and benefit recipient, the 
adjustment shall be equal to the adjustment figure per unit 
determined pursuant to clause (c) multiplied by the combination 
of years of service and years receiving payments as determined 
by the board of trustees based on the records of the fund.  
    Sec. 3.  Laws 1979, chapter 109, section 1, as amended by 
Laws 1981, chapter 157, section 1, is amended to read: 
    Section 1.  Authorization is hereby granted in accordance 
with Minnesota Statutes, Section 354A.12, for the St. Paul 
teachers retirement fund association to amend its bylaws as 
follows: 
    (1) Paragraph 9 of Section 3 of Article IV of the bylaws 
may be amended to provide a lump sum payment to annuitants and 
survivor benefit recipients who have been receiving annuities or 
benefits for at least three years, payable three six months 
following the end of a fiscal year.  The payments shall only be 
made if the investment income of the fund during the preceding 
fiscal year was in excess of 5-1/2 at least six percent of the 
asset value of the fund at the end of that fiscal year.  The 
amount that each eligible annuitant or benefit recipient shall 
be entitled to receive shall be determined as follows: 
    (a) The years of service of each annuitant as credited by 
the fund and the years of service of each person on behalf of 
whom a survivor benefit is paid as credited by the fund shall be 
totaled; 
    (b) The dollar amount equal to one-half of one percent of 
the asset value of the fund at the end of the previous fiscal 
year shall be determined; 
    (c) The dollar amount determined pursuant to clause (b) 
shall be divided by the aggregate years of credited service 
totaled pursuant to clause (a), the result to be considered the 
bonus figure per year of service credit; 
    (d) For each eligible annuitant and benefit recipient, the 
payment shall be equal to the bonus figure per year of service 
credit determined pursuant to clause (c) multiplied by each year 
of service credited for that person by the fund. 
    (2) A new paragraph may be added to Section 2 of Article IV 
of the bylaws to provide that any active member of the fund with 
service credit prior to July 1, 1978 who elects in the social 
security referendum to become a coordinated member shall be 
entitled to a retirement annuity when otherwise qualified, the 
calculation of which shall utilize the formula specified in Laws 
1977, Chapter 429, Section 61 for that portion of credited 
service which was served prior to July 1, 1978 and the new 
coordinated formula specified in the bylaws for the remainder of 
credited service, both applied to the average salary as 
specified in Paragraph 2 of Section 1 of Article IX.  The 
formula percentages to be used in calculating the coordinated 
portion of a retirement annuity on coordinated service shall 
recognize the coordinated service as a continuation of any 
service prior to July 1, 1978.  
    (3) Paragraph 5 of Section 3 of Article IV of the bylaws in 
effect on June 1, 1978 may be amended to provide that the 
recomputation of a disability benefit in an amount equal to a 
service pension shall occur when the member attains the age of 
60 years and shall be recomputed without any reduction for early 
retirement, and that if the disability terminates prior to age 
60 the member shall be eligible for benefits as provided in 
Paragraph 1 of Section 3 of Article IV and the years of service 
and final average salary accrued to disability termination date 
would be used as provided in Paragraph 5 of Section 3 of Article 
IV of the bylaws in effect June 1, 1978 and that Paragraph 3 of 
Section 4 of Article IV be amended to conform to this provision. 
    (4) Article VIII of the bylaws in effect July 1, 1978 may 
be amended by adding a new section 5 providing augmentation of 
benefits in the same manner as Minnesota Statutes 1978, Section 
354.55, Subdivision 11. 
    (a) the years of service of each annuitant as credited by 
the fund and the years of service of each person on behalf of 
whom a survivor benefit is paid as credited by the fund and the 
years receiving payments shall be totaled;  
    (b) the dollar amount equal to up to one percent of the 
asset value of the fund at the end of the previous fiscal year 
shall be determined by the board of trustees;  
    (c) the dollar amount determined pursuant to clause (b) 
shall be divided by the aggregate years of credited service and 
years receiving payments in a manner determined by the board of 
trustees pursuant to clause (a), the result is to be considered 
the bonus figure per unit;  
    (d) for each eligible annuitant and benefit recipient, the 
bonus payment shall be equal to the bonus figure per unit 
determined pursuant to clause (c) multiplied by the combination 
of years of service and years receiving payments as determined 
by the board of trustees based on the records of the fund.  
    Sec. 4.  [MINNEAPOLIS TEACHERS AMENDMENT.] 
    Pursuant to Minnesota Statutes, section 354A.12, 
subdivision 4, authority is hereby granted to the Minneapolis 
teachers' retirement fund association to amend subsection (11) 
of article IX of its articles of incorporation to eliminate the 
maximum of 30 years of service which may be used in the 
computation of formula annuities.  
    Sec. 5.  [RATIFICATION OF RESCISSION BY FARIBAULT CITY 
COUNCIL.] 
    The action of the Faribault city council of March 26, 1985, 
rescinding the adoption of the resolution of the Faribault city 
council of August 8, 1980, exempting from phase out the 
Faribault police and firefighters relief associations, is 
ratified and confirmed. 
    By rescission of the resolution of August 8, 1980, and the 
enactment of the March 26, 1985, resolution, all salaried 
firefighters and police officers hired prior to October 23, 
1984, shall remain as members of the Faribault firefighters 
relief association or Faribault police relief association, 
whichever is applicable.  All salaried firefighters and police 
officers hired on or after October 23, 1984, shall be members of 
the public employees retirement association. 
    By rescission of the resolution of August 8, 1980, the 
provisions of Laws 1980, chapter 607, article 15, sections 4, 5, 
and 7, are made applicable to the municipality and relief 
associations, where applicable. 
    Sec. 6.  [PAYMENT OF AMORTIZATION STATE AID.] 
    Pursuant to Laws 1980, chapter 607, article 15, section 5, 
the city of Faribault, having modified the coverage of its 
salaried firefighters and police, shall be entitled to the 
payment of the amounts of amortization state aid as provided by 
law now coded in Minnesota Statutes, section 423A.02. 
    The amounts of the amortization state-aid payments for 
years after 1984 shall be paid to the city of Faribault 
following application to the commissioner of finance pursuant to 
section 432A.02. 
    Sec. 7.  [POST RETIREMENT ADJUSTMENT; LUMP SUM PAYMENTS.] 
    Subdivision 1.  [ENTITLEMENT.] Any person who is receiving 
a retirement annuity, a disability benefit or a surviving 
spouse's annuity or benefit from a retirement fund specified in 
subdivision 3, clauses (1) to (5), which was computed under the 
laws in effect prior to June 1, 1973, if the person is receiving 
an annuity or benefit from the retirement fund specified in 
subdivision 3, clause (4), or prior to July 1, 1973, if the 
person is receiving an annuity or benefit from a retirement fund 
specified in subdivision 3, clause (1), (2), (3), or (5), and 
any person who is receiving either an annuity which was computed 
under the laws in effect prior to March 5, 1974, or a "$2 bill 
and annuity" annuity from the retirement fund specified in 
subdivision 3, clause (6), and any person who is receiving a 
retirement annuity, a disability benefit or a surviving spouse's 
annuity or benefit from the retirement fund specified in 
subdivision 3, clause (5), which was computed under the 
metropolitan transit commission-transit operating division 
employees retirement fund plan document in effect on or prior to 
December 31, 1977, shall be entitled to receive a post 
retirement adjustment from the applicable retirement fund in the 
amount specified in subdivision 2.  
    Subd. 2.  [AMOUNT OF POST RETIREMENT ADJUSTMENT; PAYMENT.] 
For any person receiving an annuity or benefit on November 30, 
1985, or on November 30, 1986, and entitled to receive a post 
retirement adjustment pursuant to subdivision 1, the post 
retirement adjustment shall be a lump sum payment in an amount 
equal to $18 during 1985 and $19 during 1986 for each full year 
of allowable service credited to the person by the respective 
retirement fund.  The post retirement adjustment provided for in 
this section shall be payable for those persons receiving an 
annuity or benefit on November 30, 1985, on December 1, 1985, 
and for those persons receiving an annuity or benefit on 
November 30, 1986, on December 1, 1986.  Nothing in this section 
shall authorize the payment of a post retirement adjustment to 
an estate.  Notwithstanding Minnesota Statutes, section 356.18, 
the post retirement adjustment provided for in this section 
shall be paid automatically unless the intended recipient files 
a written notice with the retirement fund requesting that the 
post retirement adjustment not be paid.  
    Subd. 3.  [COVERED RETIREMENT FUNDS.] The post retirement 
adjustment provided for in this section shall apply to the 
following retirement funds:  
    (1) public employees retirement fund;  
    (2) public employees police and fire fund;  
    (3) teachers retirement fund;  
    (4) state patrol retirement fund;  
    (5) state employees retirement fund of the Minnesota state 
retirement system; and 
    (6) Minneapolis employees retirement fund.  
    Subd. 4.  [TERMINAL AUDIT.] Each covered retirement fund as 
specified in subdivision 3 shall, as soon as is practical 
following the payment of the December 1, 1986, post retirement 
adjustment, calculate the amount of any appropriation 
apportioned to it which is in excess of the amounts required to 
pay the post retirement adjustments provided for in this act. 
The calculations required by this paragraph shall be reported to 
and verified by the commissioner of finance and amounts equal to 
these reported excess appropriation amounts shall be returned to 
the general fund.  
    Sec. 8.  [APPROPRIATION.] 
    There is hereby appropriated during the 1986-87 biennium, 
the amount of $11,429,317 for the purpose of funding the post 
retirement adjustments provided for in this section.  The 
appropriation shall be apportioned to the retirement funds 
paying the post retirement adjustment as follows:  
                                           FY 1986      FY 1987
public employees retirement fund         $1,849,896  $1,821,454 
public employees police and fire fund        76,338      76,551 
teachers retirement fund                  1,569,042   1,566,075 
state patrol retirement fund                 59,328      59,489 
state employees retirement fund           1,316,736   1,320,386 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1 to 5 are effective the day following final 
enactment.  The remaining sections are effective July 1, 1985. 
    Approved May 30, 1985