Office of the Revisor of Statutes
Minnesota Session Laws - 1987, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 372-H.F.No. 1159
An act relating to retirement; modifying various
statewide public safety pension plan provisions;
modifying various nonstatewide public safety pension
plan provisions; authorizing modifications in
Minneapolis teacher retirement fund association
benefit plan; authorizing various purchases of prior
service credit; establishing an ambulance service
personnel retirement plan; limiting the uses of public
pension plan assets; authorizing various miscellaneous
retirement benefit modifications; making various
changes in the investment authority of the state board
of investment; lowering service requirements for
vesting; modifying workers' compensation benefit
offsets; amending Minnesota Statutes 1986, sections
11A.04; 11A.24, subdivisions 2, 3, 4, 5, and 6;
11A.25; 69.80; 352.01, subdivision 2B; 352.113,
subdivision 1; 352.115, subdivision 1; 352.12,
subdivision 2; 352.22, subdivision 3; 352.72,
subdivision 1; 352.85, subdivision 1; 352.91,
subdivision 4; 352.93, subdivision 1; 352B.08,
subdivision 1; 352B.11, subdivision 2; 352B.30,
subdivision 1; 353.01, subdivision 2a; 353.29,
subdivisions 1 and 2; 353.30, subdivision 1c; 353.32,
subdivision 1a; 353.33, subdivisions 1, 5, and by
adding a subdivision; 353.34, subdivision 3; 353.64,
by adding a subdivision; 353.651, subdivisions 1 and
2; 353.656, subdivisions 2, 3, and by adding a
subdivision; 353.657, subdivision 2a; 353.71,
subdivision 1; 354.44, subdivision 1; 354.46,
subdivision 2; 354.48, subdivision 1; 354.49,
subdivision 3; 354.60; 354A.31, subdivisions 1, 5, and
6; 354A.35, subdivision 2; 354A.36, subdivision 1;
354A.39; 356.20, subdivision 2; 356.30, subdivisions 1
and 3; 356.32, subdivision 2; 424.04; and 424A.02,
subdivision 9; Laws 1949, chapter 406, section 4,
subdivisions 2 and 3, as amended, section 5,
subdivisions 1 and 3, as amended, and section 6,
subdivision 1, as amended; Laws 1967, chapter 678,
section 2, as amended, chapter 751, section 2; Laws
1971, chapter 614, section 1, subdivision 2, as
amended; Laws 1977, chapter 169, section 1,
subdivision 1a, as amended; and Laws 1980, chapter
607, article 15, section 9; proposing coding for new
law in Minnesota Statutes, chapters 356 and 423A;
proposing coding for new law as Minnesota Statutes,
chapters 353A, 353B and 356A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
STATEWIDE PUBLIC SAFETY PENSION PLAN CHANGES
Section 1. Minnesota Statutes 1986, section 69.80, is
amended to read:
69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.]
Notwithstanding any provision of law to the contrary, the
payment of the following necessary, reasonable and direct
expenses of maintaining, protecting and administering the
special fund, when provided for in the bylaws of the association
and approved by the board of trustees, shall constitute
authorized administrative expenses of a police, salaried
firefighters' or volunteer firefighters' relief association
organized under any law of this state:
(a) office expense including but not limited to rent,
utilities, equipment, supplies, postage, periodical
subscriptions, furniture, fixtures, and salaries of
administrative personnel;
(b) salaries and itemized expenses of the president,
secretary, and treasurer of the association, or their designees,
and any other official of the relief association to whom a
salary is payable under bylaws or articles of incorporation in
effect on January 1, 1986, and their itemized expenses incurred
as a result of fulfilling their responsibilities as
administrators of the special fund;
(c) tuition, registration fees, organizational dues, and
other authorized expenses of the officers or members of the
board of trustees incurred in attending educational conferences,
seminars, or classes relating to the administration of the
relief association;
(d) audit, actuarial, medical, legal, and investment and
performance evaluation expenses;
(e) reimbursement to the officers and members of the board
of trustees, or their designees, for reasonable and necessary
expenses actually paid and incurred in the performance of their
duties as officers or members of the board; and
(f) premiums on fiduciary liability insurance and official
bonds for the officers, members of the board of trustees, and
employees of the relief association.
Any other expenses of the relief association shall be paid
from the general fund of the association, if one exists. If a
relief association has only one fund, that fund shall be deemed
to be the special fund for purposes of this section. If a
relief association has a special fund and a general fund, and
any expense of the relief association is directly related to the
purposes for which both funds were established, the payment of
that expense shall be apportioned between the two funds on the
basis of the benefits derived by each fund.
Sec. 2. Minnesota Statutes 1986, section 352.01,
subdivision 2B, is amended to read:
Subd. 2B. [EXCLUDED EMPLOYEES.] The following persons are
excluded from the meaning of state employee:
(1) elective state officers;
(2) students employed by the University of Minnesota, the
state universities, and community colleges unless approved for
coverage by the board of regents, the state university board or
the state board for community colleges, as the case may be;
(3) employees who are eligible to membership in the state
teachers retirement association except employees of the
department of education who have elected or may elect to be
covered by the Minnesota state retirement system instead of the
teachers retirement association;
(4) employees of the University of Minnesota who are
excluded from coverage by action of the board of regents;
(5) officers and enlisted personnel in the national guard
and the naval militia and such as are assigned to permanent
peacetime duty who pursuant to federal law are or are required
to be members of a federal retirement system;
(6) election officers;
(7) persons engaged in public work for the state but
employed by contractors when the performance of the contract is
authorized by the legislature or other competent authority;
(8) officers and employees of the senate and house of
representatives or a legislative committee or commission who are
temporarily employed;
(9) all courts and court employees, referees, receivers,
jurors, and notaries public, except employees of the appellate
courts and referees and adjusters employed by the department of
labor and industry;
(10) patient and inmate help in state charitable, penal and
correctional institutions including the Minnesota veterans home;
(11) persons employed for professional services where the
service is incidental to regular professional duties and whose
compensation is paid on a per diem basis;
(12) employees of the Sibley House Association;
(13) employees of the Grand Army of the Republic and
employees of the ladies of the G.A.R.;
(14) operators and drivers employed pursuant to section
16.07, subdivision 4;
(15) the members of any state board or commission who serve
the state intermittently and are paid on a per diem basis; the
secretary, secretary-treasurer, and treasurer of those boards if
their compensation is $500 or less per year, or, if they are
legally prohibited from serving more than two consecutive terms
and their total service therefor is required by law to be less
than ten years; and the board of managers of the state
agricultural society and its treasurer unless the treasurer is
also its full time secretary;
(16) state troopers;
(17) temporary employees of the Minnesota state fair
employed on or after July 1 for a period not to extend beyond
October 15 of the same year; and persons employed at any time or
times by the state fair administration for special events held
on the fairgrounds;
(18) emergency employees in the classified service except
emergency employees who within the same pay period become
provisional or probationary employees on other than a temporary
basis, shall be deemed "state employees" retroactively to the
beginning of the pay period;
(19) persons described in section 352B.01, subdivision 2,
clauses (b) and (c) formerly defined as state police officers;
(20) all temporary employees in the classified service, all
temporary employees in the unclassified service appointed for a
definite period of not more than six months and employed less
than six months in any one-year period and all seasonal help in
the classified service employed by the department of revenue;
(21) trainees paid under budget classification number 41,
and other trainee employees, except those listed in subdivision
2A, clause (10);
(22) persons whose compensation is paid on a fee basis;
(23) state employees who in any year have credit for 12
months service as teachers in the public schools of the state
and as teachers are members of the teachers retirement
association or a retirement system in St. Paul, Minneapolis, or
Duluth;
(24) employees of the adjutant general employed on an
unlimited intermittent or temporary basis in the classified and
unclassified service for the support of army and air national
guard training facilities;
(25) chaplains and nuns who have taken a vow of poverty as
members of a religious order;
(26) labor service employees employed as a laborer 1 on an
hourly basis;
(27) examination monitors employed by departments,
agencies, commissions, and boards for the purpose of conducting
examinations required by law;
(28) members of appeal tribunals, exclusive of the chair,
to which reference is made in section 268.10, subdivision 4;
(29) persons appointed to serve as members of fact finding
commissions, adjustment panels, arbitrators, or labor referees
under the provisions of chapter 179;
(30) temporary employees employed for limited periods of
time under any state or federal program for the purpose of
training or rehabilitation including persons employed for
limited periods of time from areas of economic distress except
skilled and supervisory personnel and persons having civil
service status covered by the system;
(31) full-time students employed by the Minnesota
historical society who are employed intermittently during part
of the year and full time during the summer months;
(32) temporary employees, appointed for not more than six
months, of the metropolitan council and of any of its statutory
boards, the members of which board are appointed by the
metropolitan council;
(33) persons employed in positions designated by the
department of employee relations as student workers;
(34) any person who is 65 years of age or older when
appointed and who does not have allowable service credit for
previous employment, unless the employee gives notice to the
director within 60 days following appointment that coverage is
desired;
(35) members of trades employed by the metropolitan waste
control commission with trade union pension plan coverage
pursuant to a collective bargaining agreement first employed
after June 1, 1977; and
(36) persons employed in subsidized on-the-job training,
work experience or public service employment as enrollees under
the federal Comprehensive Employment and Training Act from and
after March 30, 1978, unless the person has as of the later of
March 30, 1978 or the date of employment sufficient service
credit in the retirement system to meet the minimum vesting
requirements for a deferred annuity, or the employer agrees in
writing on forms prescribed by the director to make the required
employer contributions, including any employer additional
contributions, on account of that person from revenue sources
other than funds provided under the federal Comprehensive
Employment and Training Act, or the person agrees in writing on
forms prescribed by the director to make the required employer
contribution in addition to the required employee contribution;
and
(37) persons who are employed as full-time firefighters by
the department of military affairs and as firefighters are
members of the public employees police and fire fund.
Sec. 3. Minnesota Statutes 1986, section 352.85,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; RETIREMENT ANNUITY.] Any
person who is employed by the department of military
affairs other than as a full-time firefighter, who is covered by
the general employee retirement plan of the Minnesota state
retirement system as provided in section 352.01, subdivision 23,
who is ordered to active duty pursuant to section 190.08,
subdivision 3, who elects this special retirement coverage
pursuant to subdivision 4, who is required to retire from
federal military status at the age of 60 years by applicable
federal laws or regulations and who terminates employment as a
state employee upon attaining that age shall be entitled, upon
application, to a retirement annuity computed in accordance with
section 352.115, subdivisions 2 and 3, without any reduction for
early retirement pursuant to section 352.116, subdivision 1.
Sec. 4. Minnesota Statutes 1986, section 352.91,
subdivision 4, is amended to read:
Subd. 4. Upon the recommendation of the commissioner of
corrections or the commissioner of human services, whichever is
the appropriate employing authority, with the approval of the
legislative advisory committee and with notification to and
receipt of comments from the legislative commission on pensions
and retirement, the commissioner of employee relations may
certify additional civil service classifications at state adult
correctional or security hospital facilities to the executive
director of the Minnesota state retirement system as positions
rendering covered correctional service. The commissioner of
corrections and the commissioner of human services must
establish, in writing, a set of criteria upon which to base a
recommendation for certifying additional civil service
classifications as rendering covered correctional service.
Sec. 5. Minnesota Statutes 1986, section 353.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] The following persons are
included in the meaning of "public employee":
(a) Elected or appointed officers and employees of elected
officers.
(b) District court reporters.
(c) Officers and employees of the public employees
retirement association.
(d) Employees of the League of Minnesota Cities.
(e) Officers and employees of public hospitals, owned or
operated by or an integral part of, any governmental subdivision
or governmental subdivisions.
(f) Employees of a school district who receive separate
salaries for driving their own buses.
(g) Employees of the Association of Minnesota Counties.
(h) Employees of the Metropolitan Inter-County Association.
(i) Employees of the Minnesota Municipal Utilities
Association.
(j) Employees of the metropolitan airports commission if
employment initially commences on or after July 1, 1979.
(k) Employees of the Minneapolis employees retirement fund,
if employment initially commences on or after July 1, 1979.
(l) Employees of the Range Association of Municipalities
and Schools.
(m) Employees of the soil and water conservation districts.
(n) Employees of a county historical society who are county
employees.
(o) Employees of an economic development authority created
under sections 458C.01 to 458C.23.
(p) Employees of the department of military affairs of the
state of Minnesota who are full-time firefighters.
Sec. 6. Minnesota Statutes 1986, section 353.64, is
amended by adding a subdivision to read:
Subd. 8. [PENSION COVERAGE FOR CERTAIN STATE MILITARY
AFFAIRS DEPARTMENT FIREFIGHTERS.] A person who is employed as a
full-time firefighter on or after the first day of the first
payroll period after the effective date of this section by the
department of military affairs of the state of Minnesota and who
is not eligible for coverage under the agreement signed between
the state and the secretary of the federal Department of Health
and Human Services making the provisions of the federal Old Age,
Survivors, and Disability Insurance Act applicable to state
employees because the person's position is excluded from
application under United States Code, title 42, sections
418(d)(5)(A) and 418(d)(8)(D) and section 355.07, is a member of
the public employees police and fire fund and is considered to
be a firefighter within the meaning of this section. The state
department of military affairs shall make the employee
contribution deduction from the salary of each full-time
military affairs department firefighter as required by section
353.65, subdivision 2, shall make the employer contribution with
respect to each firefighter as required by section 353.65,
subdivision 3, and shall meet the employer recording and
reporting requirements in section 353.65, subdivision 4.
Sec. 7. Minnesota Statutes 1986, section 353.656,
subdivision 3, is amended to read:
Subd. 3. [NONDUTY DISABILITY BENEFIT.] After June 30,
1973, Any member who becomes disabled after not less than five
years of allowable service, before reaching the age of 55,
because of sickness or injury occurring while not on duty as a
police officer or firefighter, and by reason thereof of that
sickness or injury the member is unable to perform duties as a
police officer or firefighter, shall be entitled to receive a
disability benefit. The benefit shall be in the same amount and
paid in the same manner as if the member were 55 years of age at
the date of disability and the benefit were paid pursuant to
section 353.651. Should If a disability under this clause occur
subdivision occurs after five but in less than ten years of
allowable service, the disability benefit shall be the same as
though the member had at least ten years service. For any
member who is employed as a full-time firefighter by the
department of military affairs of the state of Minnesota,
allowable service as a full-time state military affairs
department firefighter credited by the Minnesota state
retirement system may be used in meeting the minimum allowable
service requirement of this subdivision.
Sec. 8. Minnesota Statutes 1986, section 353.657,
subdivision 2a, is amended to read:
Subd. 2a. [DEATH WHILE ELIGIBLE SURVIVOR BENEFIT.] If a
member who has attained the age of at least 50 years and has
credit for not less than ten years allowable service dies before
public service has terminated, or if an employee who has filed a
valid application for an annuity or disability benefit prior to
termination of public service dies before the annuity or benefit
has become payable, notwithstanding any designation of
beneficiary to the contrary, the surviving spouse may elect to
receive, a death while eligible survivor benefit. The benefit
shall be in lieu of a refund with interest provided in section
353.32, subdivision 1, or survivor benefits otherwise payable
pursuant to subdivisions 1 and 2,. The benefit must be an
annuity equal to the 100 percent joint and survivor annuity
which the member could have qualified for on the date of death,
computed as provided in sections 353.651, subdivisions 2 and 3,
and 353.30, subdivision 3. The surviving spouse may apply for
the annuity at any time after the date on which the deceased
employee would have attained the required age for retirement
based on the employee's allowable service. Sections 353.34,
subdivision 3, and 353.71, subdivision 2, apply to a deferred
annuity payable under this subdivision. No payment shall accrue
beyond the end of the month in which entitlement to such annuity
has terminated. An amount equal to the excess, if any, of the
accumulated contributions which were credited to the account of
the deceased employee over and above the total of the annuities
paid and payable to the surviving spouse shall be paid to the
deceased member's last designated beneficiary or, if none, to
the legal representative of the estate of such deceased member.
Any member may request in writing that this subdivision not
apply and that payment be made only to the designated
beneficiary, as otherwise provided by this chapter. For a
member who is employed as a full-time firefighter by the
department of military affairs of the state of Minnesota,
allowable service as a full-time state military affairs
department firefighter credited by the Minnesota state
retirement system may be used in meeting the minimum allowable
service requirement of this subdivision.
Sec. 9. [353C.01] [LOCAL GOVERNMENT CORRECTIONAL SERVICE
RETIREMENT PLAN.]
Subdivision 1. [PLAN ADMINISTRATION; FUND.] The public
employees local government correctional service retirement plan
is a separate plan administered by the public employees
retirement association. The association shall maintain a
special fund known as the public employees local government
correctional service retirement fund.
Subd. 2. [REVENUE SOURCES.] Member contributions under
section 13, subdivision 1 or 3, and employer contributions under
section 13, subdivision 1 or 3, and other amounts authorized by
law, including any investment income or invested fund assets,
must be deposited in the fund.
Subd. 3. [INVESTMENT.] The public employees local
government correctional service retirement fund participates in
the Minnesota postretirement investment fund. The amounts
provided in section 353.271 must be deposited in that fund. The
balance of any assets of the fund must be deposited in the
Minnesota combined investment fund as provided in section
11A.14, if applicable, or otherwise under section 11A.23.
Subd. 4. [COLLECTION OF CONTRIBUTIONS.] The collection of
member and employer contributions are governed by section
353.27, subdivisions 4, 7, 8, 9, 10, 11, 12, and 13.
Subd. 5. [FUND DISBURSEMENT RESTRICTED.] The public
employees local government correctional service retirement fund
and its share of participation in the Minnesota postretirement
investment fund may be disbursed only for the purposes provided
for in this chapter. The proportional share of the expenses of
the association and any benefits provided in this chapter, other
than benefits payable from the Minnesota postretirement
investment fund, must be paid from the correctional service
retirement fund. Retirement annuities, disability benefits,
survivorship benefits, and any refunds of accumulated deductions
may be paid only from the correctional service retirement fund
after those needs have been certified by the executive director
and the amounts withdrawn from the share of participation in the
Minnesota postretirement fund under section 11A.18. The amounts
necessary to make the payments from the correctional service
retirement fund and the participation in the Minnesota
postretirement investment fund are annually appropriated from
those funds for those purposes.
Sec. 10. [353C.02] [CORRECTIONAL SERVICE EMPLOYEES.]
A local government correctional service employee is a
person who:
(1) meets the definition of "essential employee" in section
179A.03, subdivision 7, excluding state employees, University of
Minnesota employees, firefighters, peace officers subject to
licensure under sections 626.84 to 626.855, employees of
hospitals other than state hospitals, confidential employees,
supervisory employees other than supervisory employees of
correctional officers at correctional facilities or city or
county jails, principals, and assistant principals;
(2) is employed by Dakota county, Hennepin county, Ramsey
county, St. Louis county, or Washington county, if the county
elects to participate under section 12;
(3) is a public employee within the meaning of section
353.01, subdivisions 2 and 2a; and
(4) is not at the time of the exercise of the participation
option under section 12 a member of the basic program of the
public employees retirement association or a member of the
public employees police and fire fund.
Sec. 11. [353C.03] [CORRECTIONAL SERVICE PLAN COVERAGE.]
Subdivision 1. [INITIAL COVERAGE.] A person who is a local
government correctional service employee on June 30, 1988, is a
member of the local government correctional service retirement
plan and shall begin contributing to the plan on July 1, 1988.
Subd. 2. [SUBSEQUENT COVERAGE.] A person who becomes a
local government correctional service employee after June 30,
1988, is a member of the local government correctional service
retirement plan and shall contribute to the plan.
Sec. 12. [353C.04] [LOCAL GOVERNMENT EMPLOYING UNIT
PARTICIPATION OPTION.]
Dakota county, Hennepin county, Ramsey county, St. Louis
county, or Washington county may elect to provide its
correctional employees with retirement coverage by the local
government correctional service retirement plan in lieu of
retirement coverage by the public employees retirement
association or the public employees police and fire fund. The
election must be made on a form provided by the executive
director of the public employees retirement association and,
once made, is irrevocable for all local government correctional
service employees employed by the county.
Sec. 13. [353C.05] [CORRECTIONAL SERVICE PLAN
CONTRIBUTIONS.]
Subdivision 1. [MEMBER CONTRIBUTIONS.] Beginning with the
first full pay period after July 1, 1988, after the effective
date of the election to provide retirement coverage by the local
governmental unit, or after becoming a local government
correctional service employee, whichever is later, in lieu of
employee contributions payable under section 353.27, subdivision
2, a local government correctional service employee shall make
an employee contribution in an amount equal to five percent of
salary.
Subd. 2. [EMPLOYER CONTRIBUTIONS.] Beginning with the
first full pay period after July 1, 1988, after the effective
date of the election to provide retirement coverage by the local
governmental unit, or after becoming a local government
correctional service employee, whichever is later, in lieu of
employer contributions payable under section 353.27, subdivision
3, the employer shall contribute for a local government
correctional service employee an amount equal to five percent of
salary.
Subd. 3. [ADJUSTMENT IN CONTRIBUTION RATES.] Beginning
with the first full pay period after the actuarial valuation of
the local government correctional service retirement plan
prepared by the actuary retained by the legislative commission
on pensions and retirement is filed with the executive director
of the public employees retirement association, the member
contribution rate is a percentage that equals one-half of the
calculated total actuarial requirement of the plan, and the
employer contribution rate is the balance of the calculated
total actuarial requirement of the plan.
Sec. 14. [353C.06] [CORRECTIONAL SERVICE PLAN RETIREMENT
ANNUITY.]
Subdivision 1. [ELIGIBILITY REQUIREMENTS.] After
separation from public employment, an employee covered under
section 10 who has attained the age of at least 55 years and has
credit for not less than ten years of coverage in the local
government correctional service plan is entitled, upon
application, to a normal retirement annuity. In lieu of a
normal retirement annuity, a retiring employee may elect to
receive the optional annuity provided in section 353.30,
subdivision 3.
Subd. 2. [AVERAGE SALARY BASE.] In calculating the annuity
under subdivision 3, "average salary" means an amount equivalent
to the average of the highest salary earned as a local
government correctional employee upon which employee
contributions were paid for any five successive years of
allowable service.
Subd. 3. [ANNUITY AMOUNT.] The average salary as defined
in subdivision 2, multiplied by two percent for each year of
allowable service for the first ten years and 2.5 percent for
each additional year of allowable service, determines the amount
of the normal annuity. If a person has earned allowable service
in the public employees retirement association or the public
employees police and fire fund for performing services other
than those of a local government correctional employee, the
annuity representing such service must be computed in accordance
with the coordinated formula under sections 353.29 and 353.30 or
section 353.651, whichever applies.
Subd. 4. [ACCRUAL AND DURATION.] The annuity under this
section begins to accrue as provided in section 353.29,
subdivision 7, and must be paid for an additional 84 full
calendar months or to the first of the month following the month
in which the employee becomes age 65, whichever occurs first.
After a recipient has received the annuity calculated under this
formula for 84 full calendar months or to the first of the month
following the month in which the employee becomes age 65,
whichever occurs first, the benefit must be recomputed in
accordance with the coordinated formula in sections 353.29 and
353.30, except that if this amount, when added to the social
security benefit based on state service the employee is eligible
to receive at that time, is less than the benefit payable under
subdivision 3, the retired employee must receive an amount
payable under subdivision 3. When an annuity is reduced under
this subdivision, any percentage of adjustments that have been
applied to the original annuity under section 11A.18, before the
reduction, must be compounded and applied to the reduced annuity.
Subd. 5. [MULTIPLE SERVICE LIMITATION.] A former employee
who has both regular and local government correctional service
must, if qualified, receive an annuity based on both periods of
service, but no period of service may be used more than once in
calculating the annuity.
Sec. 15. [353C.07] [AUGMENTATION IN CERTAIN CASES.]
Unless prior service has been transferred or unless a
combined service annuity under section 356.30 has been elected,
an employee who becomes a local government correctional employee
after being a member of the public employees retirement
association or the public employees police and fire fund is
covered under section 353.71, subdivision 2, with respect to
that prior service.
Sec. 16. [353C.08] [DISABILITY BENEFITS.]
Subdivision 1. [DUTY DISABILITY QUALIFICATION
REQUIREMENTS.] A local government correctional employee who is
less than 55 years of age and who becomes disabled and
physically unfit to perform the duties of the position as a
direct result of an injury, sickness, or other disability
incurred in or arising out of any act of duty that renders the
employee physically or mentally unable to perform the employee's
duties, is entitled to a disability benefit based on covered
service only in an amount equal to 45 percent of the average
salary defined in section 14, subdivision 2, plus an additional
2.5 percent for each year of covered service in excess of 20
years.
Subd. 2. [NONDUTY DISABILITY QUALIFICATION
REQUIREMENTS.] A local government correctional employee who
after not less than five years of covered service, before
reaching the age of 55, becomes disabled and physically unfit to
perform the duties of the position because of sickness or injury
occurring while not engaged in covered employment, is entitled
to a disability benefit based on covered service. The
disability benefit must be computed in the same manner as an
annuity under section 14, subdivision 3, and as though the
employee had at least ten years of covered correctional service.
Subd. 3. [OPTIONAL ANNUITY.] A disabled local government
correctional employee may elect the normal disability benefit or
an optional annuity as provided in section 353.30, subdivision
3. The election of an optional annuity must be made before the
commencement of payment of the disability benefit and is
effective on the date on which the disability benefit begins to
accrue as provided in section 353.33, subdivision 2. Upon
becoming effective, the optional annuity begins to accrue on the
same date as provided for the disability benefit.
Subd. 4. [DISABILITY BENEFIT APPLICATION.] A claim or
demand for a disability benefit must be initiated by written
application in the manner and form prescribed by the executive
director, filed in the office of the association, showing
compliance with the statutory conditions qualifying the
applicant for a disability benefit. A member or former member
who became disabled during a period of membership may file an
application for disability benefits within three years following
termination of local government correctional service, but not
after that time has elapsed. This benefit begins to accrue the
day following the commencement of disability, 90 days preceding
the filing of the application, or, if annual or sick leave is
paid for more than the 90-day period, from the date salary
ceased, whichever is latest. No payment may accrue beyond the
end of the month in which entitlement has terminated. If the
disabilitant dies before negotiating the check for the month in
which death occurs, payment must be made to the optional
annuitant or beneficiary.
Subd. 5. [DISABILITY BENEFIT TERMINATION.] The disability
benefit paid to a disabled local government correctional
employee terminates at the end of the month in which the
employee reaches age 62. If the disabled local government
correctional employee is still disabled when the employee
reaches age 62, the employee is deemed to be a retired employee
and, if the employee had elected an optional annuity under
subdivision 3, must receive an annuity in accordance with the
terms of the optional annuity previously elected. If the
employee had not elected an optional annuity under subdivision
3, the employee may elect either to receive a normal retirement
annuity computed in the manner provided in section 14 or to
receive an optional annuity as provided in section 353.30,
subdivision 3, based on the same length of service as used in
the calculation of the disability benefit. Election of an
optional annuity must be made before attaining the age of 62
years. The reduction for retirement prior to age 65 as provided
in section 353.30, subdivisions 1 and 1c, is not applicable.
Subd. 6. [RESUMPTION OF EMPLOYMENT.] Should a disabled
employee resume a gainful occupation from which earnings are
less than salary received at the date of disability or the
salary currently paid for similar positions, or should the
employee be entitled to receive workers' compensation benefits,
the disability benefit must be continued in an amount that, when
added to such earnings and workers' compensation benefits, does
not exceed the salary received at the date of disability or the
salary currently payable for the same employment position or an
employment position substantially similar to the one the person
held as of the date of the disability, whichever is greater.
Sec. 17. [353C.09] [SURVIVING SPOUSE OPTIONAL ANNUITY.]
If a member or former member of the local government
correctional service retirement plan has attained the age of at
least 50 years and has credit for not less than ten years of
allowable service, or who has credit for not less than 30 years
of allowable service, regardless of age attained, dies before
the annuity or disability benefit has become payable,
notwithstanding any designation of beneficiary to the contrary,
the surviving spouse may elect to receive, in lieu of a refund
with interest provided in section 353.32, subdivision 1, an
annuity equal to the 100 percent joint and survivor annuity for
which the member could have qualified had the member terminated
service on the date of death. The surviving spouse may apply
for the annuity at any time after the date on which the deceased
employee would have attained the required age for retirement
based on the employee's allowable service. The annuity must be
computed on the coordinated formula as provided in sections
353.29, subdivisions 2 and 3, and 353.30, subdivisions 1, 1a,
1b, and 1c. Sections 353.34, subdivision 3, and 353.71,
subdivision 2, apply to a deferred annuity payable under this
subdivision. No payment may accrue beyond the end of the month
in which entitlement to the annuity has terminated. An amount
equal to any excess of the accumulated contributions that were
credited to the account of the deceased employee over and above
the total of the annuities paid and payable to the surviving
spouse must be paid to the deceased member's last designated
beneficiary or, if none, to the legal representative of the
estate of the deceased member. A member may specify in writing
that this subdivision does not apply and that payment must be
made only to the designated beneficiary, as otherwise provided
by this chapter.
Sec. 18. [353C.10] [SCOPE AND APPLICATION.]
The general provisions of chapter 353 apply to the local
government correctional service retirement plan except where
otherwise specifically provided in sections 9 to 18.
Sec. 19. Minnesota Statutes 1986, section 356.20,
subdivision 2, is amended to read:
Subd. 2. [COVERED PUBLIC PENSION FUNDS.] (1) State
employees retirement fund.
(2) Public employees retirement fund.
(3) Teachers retirement fund.
(4) State patrol retirement fund.
(5) Minneapolis teachers retirement fund association.
(6) St. Paul teachers retirement fund association.
(7) Duluth teachers retirement fund association.
(8) Minneapolis employees retirement fund.
(9) University of Minnesota faculty retirement plan.
(10) University of Minnesota faculty supplemental
retirement plan.
(11) Judges retirement fund.
(12) Any police or firefighter's relief association
enumerated in section 69.77, subdivision 1a or 69.771,
subdivision 1.
(13) Public employees police and fire fund.
(14) Minnesota state retirement system correctional
officers retirement plan.
(15) Public employees local government correctional service
retirement plan.
Sec. 20. Minnesota Statutes 1986, section 356.30,
subdivision 3, is amended to read:
Subd. 3. [COVERED FUNDS.] The provisions of this section
shall apply to the following retirement funds:
(1) state employees retirement fund established pursuant to
chapter 352;
(2) correctional employees retirement program, established
pursuant to chapter 352;
(3) unclassified employees retirement plan, established
pursuant to chapter 352D;
(4) state patrol retirement fund, established pursuant to
chapter 352B;
(5) legislators' retirement plan, established pursuant to
chapter 3A;
(6) elective state officers' retirement plan, established
pursuant to chapter 352C;
(7) public employees retirement association, established
pursuant to chapter 353;
(8) public employees police and fire fund, established
pursuant to chapter 353;
(9) teachers retirement fund, established pursuant to
chapter 354;
(10) Minneapolis employees retirement fund, established
pursuant to chapter 422A;
(11) Minneapolis teachers retirement fund association,
established pursuant to chapter 354A;
(12) St. Paul teachers retirement fund association,
established pursuant to chapter 354A;
(13) Duluth teachers retirement fund association,
established pursuant to chapter 354A;
(14) public employees local government correctional service
retirement plan established by sections 9 to 18.
Sec. 21. Minnesota Statutes 1986, section 356.32,
subdivision 2, is amended to read:
Subd. 2. [COVERED FUNDS.] The provisions of this section
shall apply to the following retirement funds:
(1) state employees retirement fund, established pursuant
to chapter 352;
(2) correctional employees retirement program, established
pursuant to chapter 352;
(3) state patrol retirement fund, established pursuant to
chapter 352B;
(4) public employees retirement fund, established pursuant
to chapter 353;
(5) public employees police and fire fund, established
pursuant to chapter 353;
(6) teachers retirement fund, established pursuant to
chapter 354;
(7) Minneapolis employees retirement fund, established
pursuant to chapter 422A;
(8) Duluth teachers retirement fund association,
established pursuant to chapter 354A;
(9) Minneapolis teachers retirement fund association,
established pursuant to chapter 354A;
(10) St. Paul teachers retirement fund association,
established pursuant to chapter 354A;
(11) public employees local government correctional service
retirement plan established by sections 9 to 18.
Sec. 22. Minnesota Statutes 1986, section 424A.02,
subdivision 9, is amended to read:
Subd. 9. [LIMITATION ON ANCILLARY BENEFITS.] Any relief
association, including any volunteer firefighters relief
association governed by section 69.77 or any volunteer
firefighters division of a relief association governed by
chapter 424, may only pay ancillary benefits which would
constitute an authorized disbursement as specified in section
424A.05 subject to the following limitations:
(a) With respect to a relief association in which governing
bylaws provide for a lump sum service pension to a retiring
member, no ancillary benefit may be paid to any former member or
paid to any person on behalf of any former member after the
former member (1) terminates active service with the fire
department and active membership in the relief association; and
(2) commences receipt of a service pension as authorized
pursuant to this section; and
(b) With respect to any relief association, no ancillary
benefit paid or payable to any member, to any former member, or
to any person on behalf of any member or former member, may
exceed in amount the total earned service pension of the member
or former member. The total earned service pension shall be
calculated using the service pension amount specified in the
bylaws of the relief association and the years of service
credited to the member or former member. The years of service
shall be determined as of (1) the date the member or former
member became entitled to the ancillary benefit; or (2) the date
the member or former member died entitling a survivor or the
estate of the member or former member to an ancillary benefit.
The ancillary benefit shall be calculated (1) without regard to
whether the member or former member had attained the minimum
amount of service and membership credit specified in the
governing bylaws; and (2) without regard to the percentage
amounts specified in subdivision 2; except that the bylaws of
any relief association may provide for the payment of a survivor
benefit in an amount not to exceed five times the yearly service
pension amount specified in the bylaws on behalf of any member
who dies before having performed five years of active service in
the fire department with which the relief association is
affiliated.
Sec. 23. [EFFECTIVE DATE.]
Sections 2, 3, 5, 6, 7 and 8 are effective the first day of
the first full pay period beginning after final enactment.
Sections 9 to 21 are effective January 1, 1988. The remaining
sections are effective the day following final enactment.
ARTICLE 2
VARIOUS NONSTATEWIDE PUBLIC SAFETY PENSION PLAN CHANGES
Section 1. Minnesota Statutes 1986, section 424.04, is
amended to read:
424.04 [MEMBERS.]
Subdivision 1. [PAID FIREFIGHTERS.] Every paid
firefighter, as defined in section 424.03, shall be eligible to
apply for membership in the relief association in the city in
which the person is employed within the time and in the manner
hereinafter set forth. Any firefighter desiring to become a
member shall, not later than 90 days from the time when the
person is regularly entered on the payrolls of the fire
department, make written application for membership in the
relief association on forms supplied by the association,
accompanied by one or more physician's certificates as required
by the bylaws of the association. After the application has
been filed, the board of examiners of the association shall make
a thorough investigation thereof and file their report with the
secretary of the association. An application shall be acted
upon by the association within six months from the date
applicant was entered on the payroll of the fire department. No
paid firefighter who is more than 35 years of age when the
application of the person is filed shall become a member of the
relief association, except that this age limitation shall not
apply on application for reinstatement in the association.
Subd. 2. [VOLUNTEER FIREFIGHTERS.] Every volunteer
firefighter shall be eligible to apply for membership in the
relief association and shall make written application for
membership in the relief association on forms supplied by the
association not later than 90 days from the date on which the
person commenced service as a volunteer firefighter. No
application from a person who is ineligible for membership
pursuant to section 424A.01, subdivision 1 or 2 or who is
excluded as constituting an unwarranted health risk pursuant to
section 424A.01, subdivision 4 shall be approved by the
association. The application shall be acted upon by the
association within six months from the date on which the person
commenced service as a volunteer firefighter. No volunteer
firefighter who is more than 35 years of age when appointed to
serve in any capacity performing any firefighting duties with a
fire department shall become a member of the relief association,
except that this age limitation shall not apply on any
application for reinstatement in the association.
Sec. 2. Laws 1949, chapter 406, section 5, subdivision 1,
as amended by Laws 1953, chapter 127, section 5, subdivision 1,
Laws 1969, chapter 560, section 1, and Laws 1983, chapter 88,
section 8, is amended to read:
Subdivision 1. [PERSONS MINNEAPOLIS POLICE; PERSONS
ENTITLED TO RECEIVE.] The association shall grant pensions
payable from the policemen's police pension fund in monthly
installments, in the manner and for the following purposes:
(1) Any active member of the age of 50 years or more, and
any deferred pensioner who performs has performed duty as a
member of the police department of the city for 20 five years or
more, upon his written application after retiring from such duty
, shall and reaching at least age 50 is entitled to be paid
monthly during his lifetime a for life a service pension equal
to 32 units and an additional unit for each year of such service
in excess of 20 years, but after completion of the 25th year of
service the member shall receive 40 units thereafter.
(2) Any active member who performs duty as a member of the
police department of the city for 20 years or more who retires
from such duty before he attains the age of 50 years, upon his
written application after reaching the age of 50 years shall be
paid monthly during his lifetime a pension equal to 32 units and
an additional unit for each year of such service in excess of 20
years, but after completion of the 25th year of service the
member shall receive 40 units thereafter eight units. For full
years of service beyond five years, the service pension
increases to a maximum of 40 units, as follows:
Sixth through 20th years ............ 1.6 units per year
21st through 24th years ............. 1.0 units per year
25th year ........................... 4.0 units.
Fractional years of service may not be used in computing
pensions.
(3) To (2) Any active member who shall, after ten five
years' service but with less than 20 years' service with the
police department of the city, become becomes superannuated so
as to be permanently unable to perform his assigned duties,
there shall be paid monthly during his lifetime for life a
pension equal to 12 two units for ten five years of service and
an additional two units for each completed full year of such
service over ten five years and less than 20 years.
(4) To (3) Any active member not eligible for a service
pension who, while a member of the police department of the
city, becomes diseased or sustains an injury while in the
service which permanently unfits him the member for the
performance of police duties, there shall be paid monthly during
his lifetime for life a pension equal to 32 units while so
disabled.
Sec. 3. Laws 1949, chapter 406, section 5, subdivision 3,
as amended by Laws 1953, chapter 127, section 5, subdivision 2,
and Laws 1983, chapter 88, section 9, is amended to read:
Subd. 2. [PAYMENTS, MEMBER SEPARATED FROM THE SERVICE
MINNEAPOLIS POLICE; REFUNDS PROHIBITED.] If an active member of
the police department of the city is separated from the service
after having completed not less than five years of service,
under such circumstances that no pension benefits are payable to
him or to his widow or to his children, the association shall
return to him the sum of $500, with an additional $100 for each
completed year of service in excess of five. In the event the
member is reinstated to police duty all moneys paid him shall be
returned to the pension fund within six months from the date of
the reinstatement. Failure to do so relieves the association
from any liability as to prior years of service credit as to
reinstatement date. In case of the death of the member any such
sums shall be paid to his heirs, executors, or administrators No
refund of contributions may be made upon separation from service;
provided, however, that if an active member dies leaving no
surviving spouse or children the member's heirs, executors, or
administrators are entitled to a refund of $100 for each
completed year of service.
Sec. 4. Laws 1949, chapter 406, section 6, subdivision 1,
as amended by Laws 1953, chapter 127, section 6, and Laws 1967,
chapter 820, section 1, is amended to read:
Subdivision 1. [MINNEAPOLIS POLICE SURVIVOR BENEFITS;
PERSONS TO WHOM GRANTED.] The association shall grant pensions
or benefits payable from the policemen's police pension fund to
any member or to any widow surviving spouse or to any child
under 18 years of age or any member from the time and for the
following purposes:
When a service pensioner, disability pensioner, or deferred
pensioner, or an active member of a relief association dies,
leaving
(1) a widow surviving spouse, who was his a legally married
wife spouse, residing with him the decedent, and who was married
while or prior to the time he the decedent was on the payroll of
the police department; and who, in case the deceased member was
a service or deferred pensioner, was legally married to the
member at least one year before his retirement from the police
department; or
(2) a child or children, who were living while the deceased
was on the payroll of the police department or born within nine
months after the decedent was withdrawn from such the payroll,
the widow surviving spouse and child, or children, shall be
entitled to a pension, or pensions, as follows:
(a) To the widow surviving spouse of a deceased active
member or disabilitant, a pension of 18 units per month for
life. If the surviving spouse remarries, the pension ceases as
of the date of the remarriage.
(b) To the surviving spouse of a deceased deferred or
retired member, a pension of 18 4.5 units per month for her
natural life; but, plus an additional nine-tenths of one unit
per month for every year of service of the decedent beyond five
years to a maximum of 18 units. If she remarry the surviving
spouse remarries the pension shall cease ceases as of the date
of the remarriage.
(b) (c) To each child of a deceased active member or
disabilitant, a pension of six units per month until the child
reaches the age of 18 years; or in the case of a child in
full-time attendance during the normal school year, in a school
approved by the board of directors, until the child receives a
bachelor's degree or attains the age of 22 years, whichever
occurs first.
(d) To each child of a deceased deferred or retired member,
a pension of 1.5 units per month plus three-tenths of one unit
per month for every year of service of the decedent beyond five
years to a maximum of six units until the child reaches the age
of 18 years; or, in the case of a child in full-time attendance
during the normal school year in a school approved by the board
of directors, until the child receives a bachelor's degree or
attains the age of 22 years, whichever is first.
The total pensions hereunder for the widow surviving spouse
and children of a deceased member shall not exceed 32 units per
month.
Sec. 5. Laws 1980, chapter 607, article 15, section 9, is
amended to read:
Sec. 9. [MINNEAPOLIS POLICE AND FIRE; HEALTH AND WELFARE
BENEFIT.] Notwithstanding any law to the contrary, any person
who, after July 1, 1980, retires on a service pension with at
least 20 years of service or a permanent disability benefit from
the Minneapolis police relief association or the Minneapolis
firefighters relief association shall be entitled on January 1,
1981, or upon the date of retirement, whichever occurs later, to
receive a monthly health and welfare benefit unless the city of
Minneapolis elects to retain the local relief association by the
adoption of a municipal resolution pursuant to section 4,
subdivision 1. The monthly health and welfare benefit shall be
an amount equal to one unit as defined pursuant to Laws 1963,
Chapter 315, Section 1, Subdivision 3, for the Minneapolis
police relief association, or Minnesota Statutes, Section 69.45,
for the Minneapolis firefighters relief association, whichever
is applicable. The monthly health and welfare benefit shall be
paid to the retired member unless the retired member designates
in writing that the amount be paid to an insurance carrier to
defray the cost of any health or welfare related insurance
coverage.
Sec. 6. Laws 1949, chapter 406, section 4, subdivisions 2
and 3, as amended by Laws 1953, chapter 127, section 4; Laws
1965, chapter 534, section 1; Laws 1967, chapter 825, section 1;
Laws 1969, chapter 258, section 1; Laws 1973, chapter 272,
section 1; Laws 1975, chapter 428, section 1; and Laws 1983,
chapter 88, section 7, is amended to read:
Sec. 7. [MINNEAPOLIS, CITY OF; POLICEMEN'S PENSIONS.]
The policemen's pension fund shall be used only for the
payment of:
(a) Service, disability or dependency pensions;
(b) Salaries of the secretary of the association in an
amount not to exceed 30 percent of the base salary of a
top-grade patrolman and of the president of the association in
an amount not to exceed ten percent of the base salary of a
top-grade patrolman;
(c) Expenses of officers and employees of the association
in connection with the protection of the fund;
(d) All expenses of operating and maintaining the
association;
(e) Hospital and medical insurance for pensioners who have
completed 20 years or more of service or permanent disabilitants
and widows surviving spouses of deceased active members,
disabilitants, or service pensioners who have completed 20 years
or more of service of one unit per month, such one unit to be
added to the pension otherwise provided for herein; provided
that a pensioner or widow surviving spouse may in writing
authorize a deduction from their pension for an insurance plan
adopted by the association;
(f) Health and welfare benefits of one unit per month in
addition to other benefits for members who retire after July 1,
1980, and have completed 20 years or more of service or members
who are permanent disabilitants; and
(g) Other expenses authorized by law.
Sec. 7. Laws 1967, chapter 678, section 2, as amended by
Laws 1971, chapter 807, section 2, and Laws 1983, chapter 74,
section 1, is amended to read:
Sec. 2. [HIBBING POLICE; SURVIVING SPOUSES, CHILDREN;
AMOUNT OF PENSION.] Notwithstanding any other provision of law
or charter, pensions may be paid by the police relief
association of the city of Hibbing to any surviving spouse or
child under 16 18 years of age of any pensioned and retired
member of the police department, and to any surviving spouse or
child under 16 18 years of age of any member who dies while in
the service of the police department of the city. The surviving
spouse or child shall receive not more than the sums herein
provided.
$250 per month to the surviving spouse, and $15 per month
to each child under 16 years of age. Survivor benefits shall be
the following percentages of the average salary of the deceased
member during the last six months of employment by the police
department:
(1) surviving spouse, 30 percent;
(2) surviving child under 18, 10 percent;
(3) maximum family benefit, 50 percent.
Where a surviving spouse and children reside together the
money herein required to be paid to the children shall be paid
to the surviving spouse for the support of the children, but
that money paid to the surviving spouse for the surviving spouse
and children shall not exceed $280 per month in all. In the
event of the death of both parents leaving a minor child or
children under the age of 16 18 years of age, entitled to a
pension, the sums as may be necessary for the care, maintenance
and education of the child or children may be paid to the legal
guardian thereof, but not to exceed the sum of $280 per month to
the children of any one police officer maximum family benefit.
In the event that surviving spouse remarries, he or she shall
receive no further benefits under this law. The fund shall not
be used for any other purpose than the payment of service,
disability or dependency pensions, as herein provided, and for
the relief of a sick, injured and disabled police officer. The
word "member", as used in this act, shall include policewomen,
police matrons and assistant police matrons.
Sec. 8. Laws 1977, chapter 169, section 1, subdivision 1a,
as amended by Laws 1982, chapter 443, section 1, is amended to
read:
Subd. la. [HIBBING, CITY OF; FIREFIGHTERS; SERVICE
PENSIONS; INCREASE IN CERTAIN PENSIONS.] The Hibbing
firefighters relief association shall pay to any retired fireman
who retired prior to September 1, 1972, $200 $300 per month in
addition to any service pension payable pursuant to subdivision
1.
Sec. 9. Laws 1971, chapter 614, section 1, subdivision 2,
as amended by Laws 1982, chapter 443, section 2, is amended to
read:
Subd. 2. [HIBBING FIRE; DEPENDENCY PENSIONS.] When a
pensioned and retired or active member of the association dies
leaving
(1) A widow surviving spouse who was his the member's
legally married wife spouse, residing with him the member, and
who was married to him the member while or prior to the time he
the member was on the payroll of the fire department; and who,
in case the deceased member was a service pensioner, was legally
married to the member at least three years before his retirement
from the fire department; or
(2) A child or children who were living while the deceased
was on the payroll of the fire department, or born within nine
months after the decedent was withdrawn from the payroll of the
fire department, the widow surviving spouse and the child or
children shall be entitled to a pension or pensions based upon
the following percentages of the average salary of the deceased
member during the last six months of employment by the fire
department, as follows:
(a) To the widow surviving spouse, not to exceed the sum of
$250 30 percent of average salary per month, as the bylaws of
the association provide, for her natural life which amount may
be applicable to widows surviving spouses already receiving
pension payments before the effective date of the most recent
amendment hereto which affects the amount if the bylaws should
so provide; provided, that. If she the surviving spouse shall
remarry then the pension shall cease and terminate as of the
date of her remarriage;
(b) To the child or children, if their mother other parent
be living, a pension of not to exceed $25 ten percent of average
salary per month for each child up to the time each child
reaches the age of 18 years; provided, the total pensions
hereunder for the widow surviving spouse and children of the
deceased member shall not exceed the sum of $280 50 percent of
average salary per month;
(c) A child or children of a deceased member receiving a
pension or pensions hereunder shall, after the death of
their mother other parent, be entitled to receive a pension or
pensions in such amount as the board of trustees of the
association shall deem necessary to properly support the child
or children until they reach the age of 18 years; but the total
amount of the pension or pensions hereunder for any child or
children shall not exceed the sum of $280 50 percent of average
salary per month.
Sec. 10. Laws 1967, chapter 751, section 2, is amended to
read:
Sec. 2. [WEST ST. PAUL POLICE; SERVICE PENSION.]
Subdivision 1. [PENSION AMOUNT.] Notwithstanding Minnesota
Statutes, Section 423.384, the service pension of a member of
the policemen's police relief association of the city of West
St. Paul who is qualified for a pension in accordance with
Section 423.384 at the time of retirement shall be one-half of
the regular salary of a top grade patrolman patrol officer at
the time the member retires.
Subd. 2. [SALARY DEFINED.] "Regular salary of a top grade
patrol officer" includes the highest amount of longevity pay
which is payable to a top grade patrol officer.
Subd. 3. [POSTRETIREMENT ADJUSTMENTS.] Service pensions
must be adjusted in accordance with Minnesota Statutes, section
423A.01, subdivision 4.
Sec. 11. [DISSOLUTION OF CLIFTON VOLUNTEER FIREFIGHTERS
RELIEF ASSOCIATION; TRANSFER OF ASSETS AND SERVICE CREDIT.]
Notwithstanding the provisions of Minnesota Statutes,
section 424A.02, subdivisions 11 and 12, if the Clifton
independent nonprofit firefighting corporation disbands and the
Clifton volunteer firefighters relief association established as
provided in Minnesota Statutes, chapter 424A, is dissolved, the
assets of the Clifton volunteer firefighters relief association
must be transferred to any volunteer firefighters relief
association governed by Minnesota Statutes, chapter 424A,
applicable to the township of Duluth, county of St. Louis. Upon
the transfer of assets, the receiving volunteer firefighters
relief association is the successor in interest for all claims
for and against the Clifton volunteer firefighters relief
association, except any claim against the relief association,
the Clifton independent nonprofit firefighting corporation, or
any person connected with either in a fiduciary capacity, based
on any acts that were not done in good faith and that
constituted a breach of the obligation as a fiduciary. As a
successor in interest, the receiving volunteer firefighters
relief association may assert any applicable defense in any
judicial proceeding that the Clifton volunteer firefighters
relief association or the Clifton independent nonprofit
firefighting corporation would have otherwise been entitled to
assert.
Upon transfer of the assets of the Clifton volunteer
firefighters relief association, a person with credit for
service in the Clifton volunteer firefighters relief association
must receive an equal amount of service credit in the receiving
volunteer firefighters relief association.
Sec. 12. [MANKATO POLICE; ESCALATION OF CERTAIN BENEFITS.]
Notwithstanding Minnesota Statutes, section 423.384, or any
other law, the Mankato police benefit association may amend its
articles or bylaws to provide for computation of postretirement
increases for retired members for whom there exists no
equivalent rank in the public safety department, by the same
percentage increase granted retired first class patrol officers
in any year. The Mankato city council shall ratify the
amendment as required by section 69.77, subdivision 2i, but the
council may forego the actuarial valuation or estimate required
by that subdivision.
Sec. 13. [MILLERVILLE FIREFIGHTERS RELIEF ASSOCIATION;
PRIOR SERVICE IN SERVICE PENSION COMPUTATIONS.]
Notwithstanding any provision of Minnesota Statutes,
sections 69.771 to 69.776 or chapter 424A to the contrary, the
Millerville firefighters relief association may amend its bylaws
to allow computation of service pensions utilizing a member's
period of service as an active member of the municipal fire
department during the period prior to incorporation of the
relief association.
Sec. 14. [VIRGINIA FIREFIGHTERS' RELIEF ASSOCIATION;
SURVIVING SPOUSES' BENEFITS.]
Notwithstanding any law to the contrary, the survivor
benefit payable to a surviving spouse of a deceased member of
the Virginia firefighters' relief association is increased by
$100 per month.
Sec. 15. [SAVINGS CLAUSE.]
Nothing in sections 2 to 6 impairs or diminishes the
benefits paid to members, spouses, or children of a member of
the Minneapolis police relief association or the entitlement
that members, spouses, or children had to benefits before the
effective date of sections 2 to 6.
Sec. 16. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
Sections 2 to 6 and 15 are effective upon approval by the
Minneapolis city council and compliance with Minnesota Statutes,
section 645.021. Sections 7 to 9 are effective upon approval by
the Hibbing city council and compliance with Minnesota Statutes,
section 645.021. Section 10 is effective as approved by the
governing body of the city of West St. Paul and if there is
compliance with Minnesota Statutes, section 645.021, and the
increase in service pensions payable due to section 10 is
initially payable on January 1, 1988, and is applicable to any
member of the West St. Paul police relief association who
retired on or after February 1, 1985. Section 11 is effective
upon approval by the Clifton independent nonprofit firefighting
corporation and the approval of the governing body of the
township of Duluth and compliance with Minnesota Statutes,
section 645.021. Section 12 is effective upon approval by the
Mankato city council and compliance with Minnesota Statutes,
section 645.021. Section 13 is effective upon approval by the
governing body of the city of Millerville and compliance with
Minnesota Statutes, section 645.021. Section 14 is effective
upon approval by the Virginia city council and compliance with
Minnesota Statutes, section 645.021.
ARTICLE 3
MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION
BENEFIT MODIFICATION AUTHORIZATION
Section 1. [MINNEAPOLIS TEACHERS RESTRUCTURING OF
RETIREMENT BENEFITS; POSTRETIREMENT ADJUSTMENT MECHANISM.]
(a) In accordance with Minnesota Statutes, section 354A.12,
subdivision 4, approval is granted for the Minneapolis teachers
retirement fund association to amend its articles of
incorporation by repealing article IX, subsection (18),
authorizing lump sum postretirement adjustments payable to
retirees or beneficiaries.
(b) In accordance with Minnesota Statutes, section 354A.12,
subdivision 4, if the repeal authorized by paragraph (a) occurs,
approval is granted for the Minneapolis teachers retirement fund
association to amend or make an addition to its articles of
incorporation as provided in paragraphs (c) to (g).
(c) Article IX, subsection (11), authorizing formula
retirement annuity benefits, may be amended to authorize all
teachers who retired before June 1, 1985, other than persons
receiving a money purchase annuity under article IX, subsection
(3), receiving a C death benefit under article IX, subsection
(4), item C, or receiving a total disability benefit under
article IX, subsection (5), to receive as of the first day of
the month following the effective date of the amendment a
recomputed annuity determined according to the 1975 revised
formula annuity without regard to the 30-year service limitation
applicable to teachers who retired after May 1, 1974, and before
June 1, 1985.
(d) Article IX, subsection (14) D, providing an annual
automatic annuity increase of 1-1/2 percent to all annuitants
who have been receiving an annuity for at least 24 months and
who have attained the age of 65 may be amended to increase the
annual automatic increase annuity to two percent per fiscal year
on January 1, or July 1, whichever applies, and to extend
eligibility for that increase annuity to all annuitants who have
been receiving an annuity for at least 12 months, irrespective
of the attained age of the annuitant.
(e) Article IX, subsection (14), may be amended by adding a
provision authorizing an increase in the annuity of any
annuitant who retired on or before July 1, 1986, in the amount
of four percent of the annuity the member is otherwise eligible
to receive on July 1, 1987, including any other increases
granted as of that date under articles of incorporation
amendments authorized by the section but excluding the annual
automatic increase annuity payable under article IX, subsection
(14), item D, on July 1, 1987, for each full year that the
member has been retired and receiving an annuity, to a maximum
of 20 percent.
(f) Article IX, subsection (14), may be amended by adding a
provision authorizing payment, as of July 1, 1987, of an
increase in a normal retirement annuity, joint and survivor
annuity or term certain optional annuity of retired teachers of
the positive dollar amount difference between a minimum normal
retirement annuity equal to $25 per month for each full year of
teaching service, to a maximum of 30 years, and the amount of
the normal retirement annuity, joint and survivor annuity or
term certain optional annuity payable on June 1, 1987, to
retired teachers who were members of the basic program, who
ceased active teaching service in the city public schools, who
are receiving a normal retirement annuity, and who have not
withdrawn a portion of required member deposits upon applying
for the normal retirement annuity. If the difference is not a
positive dollar amount, no increase is payable and no reduction
may be imposed. For persons to whom a remainder portion of a
joint and survivor annuity or a term certain optional annuity is
payable, a proportional increase is payable.
(g) Article IX may be amended by adding a new subsection
providing for an investment related postretirement adjustment
mechanism. An annual postretirement may be paid if there is any
excess investment income. The determination must be made by the
board of trustees in consultation with the actuary retained by
the legislative commission on pensions and retirement. The fund
has excess investment income if the time weighted total rate of
return earned by the fund over the most recent three year fiscal
year period has exceeded the rate of eight percent or the
applicable postretirement interest rate assumption specified in
Minnesota Statutes, section 356.215, subdivision 4d, whichever
is greater. In determining the total rate of return, the board
shall use the formula or formulas established by the state board
of investment under Minnesota Statutes, section 11A.04, clause
(11), and in effect on January 1, 1987. The amount by which the
excess investment income exceeds the minimum interest rate must
be expressed as a percentage and carried to four decimal
places. An annual postretirement adjustment is payable to a
person who is receiving an annuity under article IX, subsection
(8), (9), or (11), or article XI, subsection (5), who is
receiving a death benefit under article IX, subsection (4), or
who is receiving a joint and survivor annuity or term certain
optional annuity under article IX, subsection (2), clause (b) or
(c), and who has received the annuity or benefit in the person's
own right or in combination with the initial recipient of the
annuity for at least 12 months as of the determination date.
The determination date is June 30, and determinations must be
made as soon as practicable after that date. The board of
trustees shall determine the percentage amount of the
postretirement adjustment payable, but the percentage amount may
not exceed the amount by which the excess investment income
exceeds the minimum interest rate. The board of trustees shall
include in the provision criteria to govern the exercise of its
discretion in determining the instances under which an annual
postretirement adjustment of less than the full determined
percentage is payable. The annual postretirement adjustment is
payable on January 1 following the determination date and is
payable for the duration of the annuity or benefit.
Sec. 2. [WITHDRAWAL OF AUTHORITY.]
The authority for the amendment of article IX of the
articles of incorporation of the Minneapolis teachers retirement
fund association adding subsection (18) to provide a lump sum
postretirement adjustment to certain annuitants and survivor
benefit recipients under Laws 1981, chapter 159, section 1,
clause (1), is withdrawn.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the day following final
enactment.
ARTICLE 4
AUTHORIZATION OF PURCHASES OF PRIOR SERVICE
Section 1. [PURCHASE OF PRIOR SERVICE CREDIT
AUTHORIZATION.]
Subdivision 1. [PURCHASE ELIGIBILITY.] (a) Notwithstanding
the limitations in Minnesota Statutes, section 353.36,
subdivision 2, a person whose employment with the Roseau county
highway department began in September 1961, but for whom no
salary deductions were taken out for the public employees
retirement association until June 1965, may purchase credit for
the prior public service for which salary deductions were
omitted by paying to the association. Eligibility to make the
purchase of prior service credit expires on January 1, 1988.
(b) Notwithstanding any law to the contrary, a person who
is currently a teacher in the North St. Paul school district,
who was on unpaid medical leave during the 1975-1976 and
1976-1977 school years and who was born on November 13, 1926 may
purchase credit in the teachers retirement association for the
periods of unpaid medical leave. Eligibility to make the
purchase of prior service credit expires on January 1, 1988.
Subd. 2. [PURCHASE PAYMENT AMOUNT.] For any person
eligible to purchase credit for prior service as provided in
subdivision 1, there must be paid to the applicable retirement
association an amount equal to the present value, on the date of
payment, of the amount of the additional retirement annuity that
would be obtained by virtue of the purchase of the additional
service credit, using the interest rate specified in Minnesota
Statutes, section 356.215, subdivision 4d, and the applicable
mortality table adopted for the applicable retirement
association and assuming continuous future service in the
retirement system until, and retirement at, the age at which the
minimum requirements of the retirement association for normal
retirement or retirement with an annuity unreduced for
retirement at an early age, including Minnesota Statutes,
section 356.30, are met with the additional service credit
purchased, for the retirement association, and a future salary
history that includes annual salary increases at the rate
specified in Minnesota Statutes, section 356.215, subdivision
4d. The person requesting the purchase of prior service must
establish in the records of the retirement association proof of
the service for which the purchase of prior service is
requested. The manner of the proof of service must be in
accordance with procedures prescribed by the executive director
of the applicable retirement association.
Subd. 3. [PAYMENT; CREDITING SERVICE.] Payment must be
made in one lump sum, unless the executive director of the
applicable retirement association agrees to accept payment in
installments over a period not to exceed three years from the
date of the agreement, with interest at a rate deemed
appropriate by the executive director. The period of allowable
service may be credited to the account of the person only after
receipt of full payment by the executive director.
Subd. 4. [OPTIONAL EMPLOYER PARTIAL PAYMENT.] Payment must
be made by the person entitled to purchase prior service;
however, the current or former employer of the person may, at
its discretion, pay all or any portion of the payment amount
that exceeds an amount equal to the employee contribution rates
in effect for the retirement fund during the period or periods
of prior service applied to the actual salary rates in effect
during the period or periods of prior service, plus interest at
the rate of six percent a year compounded annually from the date
on which the contributions would otherwise have been made to the
date on which the payment is made.
Sec. 2. [PURCHASE OF PRIOR SERVICE BY CERTAIN EMPLOYEES.]
Notwithstanding any other law, a person who was employed by
the University of Minnesota hospitals pharmacy department and
was a member of the Minnesota state retirement system from
October 2, 1967, to March 31, 1968, and who was appointed to a
faculty position in the University of Minnesota pharmacy
department and became a member of the retirement plan for
university faculty members on April 1, 1968, and who on
September 23, 1974, returned to state service and to membership
in the Minnesota state retirement system as an employee of the
department of human services may withdraw his account balance
from the retirement plan for university faculty members and may
purchase service credit in the Minnesota state retirement system
for the time spent as a university faculty member. A person
covered by this section may purchase that service credit by
paying to the Minnesota state retirement system, by January 1,
1988, an amount equal to all employee, employer, and additional
employer contributions at the rates in effect when the service
as a faculty member was rendered plus interest at the rate of
six percent a year from the year of purchase to the date payment
is made.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the day following final
enactment.
ARTICLE 5
AMBULANCE SERVICE PERSONNEL RETIREMENT PLAN
Section 1. [353D.01] [AMBULANCE SERVICE PERSONNEL
RETIREMENT PLAN.]
Subdivision 1. [ESTABLISHMENT.] The ambulance service
personnel retirement plan is administered by the public
employees retirement association under supervision of the
association board of directors. To assist it in governing the
operations of the plan, the board may appoint an advisory
committee of not more than seven members who are representative
of ambulance service operators and ambulance service personnel.
Subd. 2. [COVERAGE.] Coverage under the retirement plan is
open to basic and advanced life support emergency medical
service personnel employed by or providing services for any
public ambulance service or privately operated ambulance service
that receives an operating subsidy from a governmental entity
that elects to participate. First response personnel and
emergency medical service personnel who are currently covered by
a public or private pension plan because of their employment or
provision of services are not eligible to participate in the
plan.
Sec. 2. [353D.02] [ELECTION OF COVERAGE.]
Each public ambulance service or privately operated
ambulance service that receives an operating subsidy from a
governmental entity with eligible personnel may elect to
participate in the plan. If a service elects to participate,
its eligible personnel may elect to participate or to decline to
participate. An individual's election must be made within the
latter of 30 days of the service's election to participate or 30
days of the date on which the individual was employed by the
service or began to provide service for it. An election by a
service or an individual is irrevocable.
Sec. 3. [353D.03] [FUNDING OF PLAN.]
A public ambulance service or privately operated ambulance
service that receives an operating subsidy from a governmental
entity that elects to participate in the plan shall fund
benefits for its qualified personnel who individually elect to
participate, except that personnel who are paid for their
services may elect to make member contributions in an amount not
to exceed the service's contribution on their behalf. Ambulance
service contributions on behalf of salaried employees must be a
fixed percentage of salary. An ambulance service making
contributions for volunteer or largely uncompensated personnel
may assign a unit value for each call or each period of alert
duty for the purpose of calculating ambulance service
contributions.
Sec. 4. [353D.04] [CONTRIBUTIONS TO PLAN.]
Ambulance service contributions to the plan may be made
from any source of funds available to the ambulance service.
Contributions must be remitted monthly to the association
together with any member contributions paid or withheld during
the preceding month. Contributions shall be credited to the
individual account of each participating member.
Sec. 5. [353D.05] [INVESTMENT OF FUNDS.]
Subdivision 1. [INVESTMENT.] Ambulance service
contributions, after the deduction of an amount for
administrative expenses, and member contributions must be
remitted to the state board of investment for investment in the
Minnesota supplemental investment fund established by section
11A.17.
Subd. 2. [INVESTMENT OPTIONS.] (a) An individual
participant may elect to purchase shares in the income share
account, the growth share account, the money market account, the
bond market account, or the common stock index account
established by section 11A.17, or a combination of those
accounts. The participant may elect to purchase shares in a
combination of those accounts by specifying the percentage of
contributions to be used to purchase shares in each of the
accounts.
(b) Twice in a calendar year, a participant may indicate in
writing a choice of options for subsequent purchases of shares.
Thereafter, until the participant makes a different written
indication, the executive director of the association shall
purchase shares in the supplemental investment fund or funds
specified by the participant. If no initial option is indicated
by a participant, the executive director shall invest all
contributions made by or on behalf of a participant in the
income share account. A choice of investment options is
effective no later than the first pay date first occurring more
than 30 days after receipt of the written choice of options.
(c) Twice in a calendar year, a participant or former
participant may also change the investment options selected for
all or a portion of the individual's previously purchased
shares. If a partial transfer of previously purchased shares is
selected, a minimum of $500 must be transferred and a minimum
balance of $500 must remain in the previously selected
investment option. A change may be made only from one account
or a combination of accounts to a single account. A change
under this paragraph is effective as soon as cash flow to an
account permits, but not later than six months from the
requested change.
Subd. 3. [ADMINISTRATIVE EXPENSES.] The public employees
retirement association may deduct an amount, set annually by the
executive director of the association, but not to exceed two
percent of ambulance service contributions to the plan, to
defray the expenses of the association in administering the plan.
Sec. 6. [353D.06] [REPORTING BY AMBULANCE SERVICES.]
The executive director of the public employees retirement
association shall prescribe the form of monthly and any other
reports required from an ambulance service and the election
forms required from ambulance service members. Member forms
shall contain names, identification numbers, amount of
contribution by and on behalf of each member, and such other
data as is required to keep an accurate account of the account
value of each participating employee.
Sec. 7. [353D.07] [BENEFITS.]
Subdivision 1. [TYPE OF PLAN; UNIFORMITY.] The plan is a
defined contribution plan where the benefits payable upon
retirement, death, or withdrawal when permitted, are determined
by the value of accumulated contributions plus a proportionate
share of investment income of the fund credited to each
individual account. Each ambulance service shall determine
eligibility for participation subject to terms of this act.
Eligibility standards must be uniform among all ambulance
service personnel of an ambulance service electing to
participate.
Subd. 2. [AGE; VESTING.] Normal retirement age is 50 years.
Early retirement is not allowed. Sixty months of service credit
are required for vesting of retirement benefits. No minimum
period of service is required for vesting of death benefits.
Withdrawal of or a retirement benefit based on member
contributions plus accrued investment income vests immediately.
Upon completion of 60 months of service under the plan with one
or more ambulance services, a participant terminating active
service prior to age 50 is entitled to receive the value of the
participant's individual account upon or after attaining age
50. An application by or on behalf of the participant must be
filed before any payment of benefits may be made.
Subd. 3. [FORM OF BENEFIT.] A retirement benefit is
payable in a lump sum equal to the value of a participant's
account at the date of retirement and may be rolled over into
another qualified plan at the option of the member. As an
alternative to a lump sum distribution, the member may choose to
have the association use the total account value to purchase an
annuity payable at a designated age from an insurance company
licensed to do business in the state.
Subd. 4. [DISABILITY OR DEATH.] No disability coverage
shall be provided by the plan. In the event of the death of an
active participant with any credited service or a deferred
participant under age 50, the total value of the account shall
be paid in a lump sum to the designated beneficiary or, if none,
the heirs at law of the decedent.
Subd. 5. [FORFEITURES.] The account value of any
participant terminating service prior to acquiring a vested
interest or of a participant who dies leaving no designated
beneficiary or heirs at law must be returned to the public
employees retirement association and credited against future
ambulance service contributions by the applicable ambulance
service or services after the expiration of two years from the
date of termination or death.
Sec. 8. [353D.08] [PORTABILITY.]
Qualified ambulance service personnel who change employment
or membership among participating ambulance services may
continue participation in the plan without penalty or forfeiture
after their interest vests. Qualified ambulance service
personnel who change employment or membership to a
nonparticipating ambulance service are not subject to the
forfeiture required by section 7, subdivision 5.
Sec. 9. [353D.09] [TAX QUALIFICATION.]
The public employees retirement association shall adopt
rules required for administration of the plan. The proposed
plan shall be formulated and adopted in accordance with
applicable restrictions and standards of the Internal Revenue
Code and rulings and regulations of the Internal Revenue Service
in order to assure the tax exempt status of the plan as a
qualified pension plan. Contributions by ambulance service
personnel and by ambulance service operators may be accepted
only after approval by the Internal Revenue Service.
Sec. 10. [353D.10] [NOT CONSIDERED A LOCAL PLAN.]
The plan is not a local governmental pension plan or fund
for purposes of section 356.25.
Sec. 11. [EFFECTIVE DATE.]
Sections 1 to 10 are effective on July 1, 1987.
ARTICLE 6
PUBLIC PENSION PLAN ASSET USE LIMITATION
Section 1. [356.615] [LIMITATION ON USE OF PUBLIC PENSION
PLAN ASSETS.]
(a) Money held by or credited to a public pension plan as
assets, including employer and employee contributions, state
aid, appropriations from the state or a governmental
subdivision, and accrued earnings on investments, constitutes a
dedicated fund. The dedicated fund must be used exclusively to
pay retirement annuities, service pensions, disability benefits,
survivor benefits, refunds of contributions or other benefits
provided under the benefit plan document or documents governing
the public pension plan, and to pay reasonable administrative
expenses approved by the governing board of the public pension
plan or by another appropriate authority. No assets of a public
pension plan may be loaned or transferred to the state or a
governmental subdivision or be used to amortize an unfunded
actuarial accrued liability in another public pension plan,
whether or not the plan providing the assets consolidates or has
consolidated with the plan receiving the assets. Nothing in
this section prohibits a public pension plan or the state board
of investment from investing the assets of a plan as authorized
by law, including the investment of the assets of public pension
plans by the state board of investment in a commingled
investment fund.
(b) A public pension plan for purposes of this section
means a pension plan or fund specified in section 356.20,
subdivision 2, or 356.30, subdivision 3, or a retirement or
pension plan or fund, including a supplemental retirement plan
or fund, established, maintained, or supported by a governmental
subdivision or public body whose revenues are derived from
taxation, fees, assessments, or other public sources.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 7
VARIOUS MISCELLANEOUS RETIREMENT MODIFICATIONS
Section 1. [PENSION SALARY AND SERVICE CREDIT FOR CERTAIN
PERSONS.]
Subdivision 1. [ENTITLEMENT.] A person who was an employee
of Ramsey county and a member of the public employees retirement
association, who suffered an illness or injury entitling the
person to workers' compensation benefits during the five
successive years before the date on which the person would have
attained normal retirement age under Minnesota Statutes 1986,
section 353.29, subdivision 1, or 353.30, subdivision 1a, who
was granted an authorized leave of absence by Ramsey county, and
who retired between June 26, 1986, and January 1, 1987, is
entitled to additional credit from the public employees
retirement association for additional salary under subdivision 2
and additional service under subdivision 3 and to a
recalculation by the public employees retirement association of
the retirement annuity under subdivision 4.
Subd. 2. [CREDIT FOR ADDITIONAL SALARY.] The additional
salary for the period of the authorized leave of absence is the
portion or multiple of the average salary on which deductions
were made during the last six months of public service preceding
the authorized leave of absence.
Subd. 3. [CREDIT FOR ADDITIONAL ALLOWABLE SERVICE.] The
additional allowable service is any period of authorized leave
of absence resulting from the qualifying injury or illness, not
to exceed 30 months, for which the person made payments to the
public employees retirement association under Minnesota Statutes
1986, section 353.01, subdivision 16, paragraph (3).
Subd. 4. [RETIREMENT ANNUITY RECALCULATION.] If the person
obtains credit for additional salary and allowable service, the
public employees retirement association shall recalculate the
person's retirement annuity on the basis of any greater final
average salary and the additional service and shall pay any
difference between the old annuity and the recalculated annuity
retroactively to the date of the person's retirement. Any
retroactive amounts must be paid as soon as practicable.
Sec. 2. [POSTRETIREMENT ADJUSTMENT FOR CERTAIN RETIRED
TEACHER.]
Subdivision 1. [RETIREMENT EFFECTIVE DATE.] In order to
determine the effective date of retirement for the purposes of
paying postretirement adjustments under Minnesota Statutes,
section 11A.18, an annuitant from the teachers retirement
association who terminated employment with the Roseau school
district on June 30, 1982, and whose application for retirement
was postmarked July 1, 1982, shall be deemed to have retired
effective July 1, 1982.
Subd. 2. [APPROPRIATION.] The appropriate amount of
required reserves is appropriated from the teachers retirement
fund to the Minnesota postretirement investment fund to make a
retroactive payment on the first day of the month next following
the date of the ruling of the administrative hearing required by
subdivision 3 of the adjustments an annuitant described in
subdivision 1 would have received from January 1, 1984, to the
last day of the month next following the date of the ruling of
the administrative hearing required by subdivision 3, and to
fund the reserves necessary to support an adjusted benefit for
the annuitant for the future.
Subd. 3. [ADMINISTRATIVE HEARING.] The teachers retirement
association shall hold an administrative hearing under Minnesota
Statutes, sections 14.57 to 14.62, to determine the date on
which the annuitant described in subdivision 1 mailed the
application for retirement to the teachers retirement
association. Notice of the hearing must be provided within 30
days of the effective date of this section and the hearing must
be held as soon as practicable after that notice is provided.
Subd. 4. [EFFECT OF HEARING.] Subdivisions 1 and 2 are
effective if the administrative hearing required by subdivision
3 results in a finding of fact that the annuitant described in
subdivision 1 mailed the application for retirement to the
teachers retirement association on or before June 30, 1982.
Sec. 3. [ALBANY COMMUNITY HOSPITAL EMPLOYEES.]
Subdivision 1. [REFUND OF CONTRIBUTIONS.] A member of the
public employees retirement association who was employed by the
Albany community hospital on the date the hospital was taken
over by a private corporation or organization is entitled upon
application to be paid a refund of accumulated employee and
employer contributions made by or on behalf of the employee to
the association, plus interest on those contributions at the
rate of six percent a year. If an employee has previously
received a refund of employee contributions, only the
accumulated employer contributions plus interest may be
refunded. No employer additional contributions may be
refunded. A refund of contributions may be made only to a
federal income tax qualified individual retirement account
established by or on behalf of the person.
Subd. 2. [DEFERRED ANNUITY.] If an employee described in
subdivision 1 had at least five years of allowable service
credit, the employee may elect to receive, in lieu of the
refund, a deferred annuity under Minnesota Statutes, section
353.34, subdivision 3, notwithstanding the length of service
requirements contained in that subdivision. An employee
eligible for a deferred annuity who has previously received a
refund of employee contributions may reinstate the employee's
eligibility for a deferred annuity by repaying the amount
refunded, including any interest received, to the association,
and any deferred annuities augmentation may be computed only
from the date of the refund repayment.
Subd. 3. [DEADLINE.] Refunds must be paid or options must
be exercised and repayments of refunds made by July 1, 1988.
Sec. 4. [CANBY COMMUNITY HOSPITAL EMPLOYEES.]
Subdivision 1. [REFUND OF CONTRIBUTIONS.] A member of the
public employees retirement association who was employed by the
Canby community hospital district No. 1 on the date the hospital
was taken over by a private corporation or organization and
whose public employment was thus terminated, may, by filing a
valid application, elect to be paid a refund of accumulated
employee and employer contributions made by or on behalf of the
employee to the association, plus interest on those
contributions at the rate of six percent a year. If an employee
has previously received a refund of employee contributions, only
the accumulated employer contributions plus interest may be
refunded. No employer additional contributions may be
refunded. A refund of contributions may be made only to a
federal income tax qualified individual retirement account
established by or on behalf of the person.
Subd. 2. [DEADLINE.] Refunds must be paid within 90 days
of exercise of the option. Options must be exercised by July 1,
1988.
Sec. 5. [STEARNS COUNTY HISTORICAL SOCIETY EMPLOYEE.]
Notwithstanding the amendment of section 353.01,
subdivision 2a, by Laws 1986, chapter 458, section 11, which
excluded county historical society employees not employed by the
county from membership in the public employees retirement
association, an employee of the Stearns county historical
society who was born on April 2, 1923, and who was a society
employee on March 26, 1986, may elect to retain membership in
and retirement coverage by the public employees retirement
association. Notice of intent to retain membership must be
given to the association within 60 days after the effective date
of this section. Any contributions refunded under Laws 1986,
chapter 458, section 33, on behalf of the employee must be
repaid with interest at the rate of 6.5 percent a year,
compounded annually, to the association within the 60-day period.
Sec. 6. [ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION
BYLAW AMENDMENT.]
In accordance with Minnesota Statutes, section 354A.12,
subdivision 4, approval is granted for the St. Paul teachers
retirement fund association to amend its bylaws, with effect
retroactive to July 1, 1986, as follows:
(1) article IV of the bylaws, section 4, paragraph 1,
clause (a), governing the payment of service and deferred
pensions, may be amended by removing any limitation on
employment as a retired member in any capacity by the city of
St. Paul; and
(2) article IV of the bylaws, section 4, paragraph 1,
governing the payment of service and deferred pensions, may be
amended by adding clause (c) to provide that any person who was
on a leave of absence from independent school district No. 625
on January 1, 1987, who was employed by the city of St. Paul
while on that leave before January 1, 1987, and who applied for,
but withdrew, an application for retirement with the fund
association before January 1, 1987, is considered to have filed
a valid application for retirement on January 1, 1987, in the
form of the previously filed application and is eligible to be
paid a retirement allowance retroactive to January 1, 1987.
Sec. 7. [HIBBING ELECTED OFFICIAL.]
Notwithstanding the "incumbency" provision of Minnesota
Statutes, section 353.01, subdivision 7, and rules to the
contrary adopted by the board of the public employees retirement
association, a person who served on the Hibbing city council and
elected membership in the association from January 1, 1983, and
who terminated service on the council on November 25, 1986,
after being reelected to the council for a term beginning
January 6, 1987, may not be considered a member of the
association with respect to service rendered as an elected
official after the termination date of November 25, 1986, but
may elect to become a member of the association under section
353.01, subdivision 7, for service rendered as an elected
official on or after January 1, 1987.
Sec. 8. [PLYMOUTH VOLUNTEER FIREFIGHTERS.]
Subdivision 1. [EXCLUSION FROM CERTAIN RETIREMENT
COVERAGE.] A volunteer firefighter serving with the Plymouth
fire department is excluded from the definition of "public
employee" in Minnesota Statutes, section 353.01, subdivision 2,
and may not be a member of the public employees police and fire
fund. Compensation paid to a Plymouth volunteer firefighter is
excluded from the definition of "salary" in section 353.01,
subdivision 10.
Subd. 2. [DEFINITION OF VOLUNTEER FIREFIGHTER.] A
volunteer firefighter for purposes of subdivision 1 is a person
who is not scheduled to serve on a full-time basis, who serves
on call for emergency duty as a regular active member of the
Plymouth municipal fire department, and who receives no
compensation for that service or whose compensation for that
service is not based on or is not a multiple of any rate of
compensation being paid that person by the Plymouth municipal
fire department for duty other than on call emergency duty,
training duty, or equipment maintenance duty.
Subd. 3. [REFUND.] A volunteer firefighter who is excluded
from membership by subdivision 1 shall be entitled to a refund
of member contributions to the public employees retirement
association or the public employees police and fire fund based
on compensation as a volunteer firefighter, plus simple interest
at the rate of six percent a year, if the person or the city of
Plymouth demonstrates to the satisfaction of the executive
director of the association the amount of contributions made by
the person on behalf of service as a volunteer firefighter.
Sec. 9. [LEGISLATIVE INTENT.]
It is the finding of the legislature that the special
refund provisions authorized in sections 3 and 4 are a unique
response to two unique situations and it is the intent of the
legislature that this response will not be considered for any
allegedly similar situations.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 7 and 9 are effective the day following final
enactment. Section 8 is effective July 1, 1987.
ARTICLE 8
STATE BOARD OF INVESTMENT CHANGES
Section 1. Minnesota Statutes 1986, section 11A.04, is
amended to read:
11A.04 [DUTIES AND POWERS.]
The state board shall:
(1) Act as trustees for each fund for which it invests or
manages money in accordance with the standard of care set forth
in section 11A.09.
(2) Formulate policies and procedures deemed necessary and
appropriate to carry out its functions. Procedures adopted by
the board shall allow fund beneficiaries and members of the
public to become informed of proposed board actions. Procedures
and policies of the board shall not be subject to the
administrative procedure act.
(3) Employ an executive director as provided in section
11A.07.
(4) Employ investment advisors and consultants as it deems
necessary.
(5) Prescribe policies concerning personal investments of
all employees of the board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees
subject to the provisions of section 15.059 to assist the board
in carrying out its duties.
(8) Not permit state funds to be used for the underwriting
or direct purchase of municipal securities from the issuer or
the issuer's agent.
(9) Direct the state treasurer to sell property other than
money which has escheated to the state when the board determines
that sale of the property is in the best interest of the state.
Escheated property shall be sold to the highest bidder in the
manner and upon terms and conditions prescribed by the board.
(10) Undertake any other activities necessary to implement
the duties and powers set forth in this section.
(11) Establish a formula or formulas to measure management
performance and return on investment. All public pension funds
in the state shall utilize the formula or formulas developed by
the state board.
(12) Except as otherwise provided in article XI, section 8
of the constitution of the state of Minnesota, employ, at its
discretion, qualified private firms to invest and manage the
assets of funds over which the state board has investment
management responsibility. There is annually appropriated to
the state board, from the assets of the funds for which the
state board utilizes a private investment manager, sums
sufficient to pay the costs therefor. Each year, by January 15,
the board shall report to the governor and legislature on the
cost and the investment performance of each investment manager
employed by the board.
(13) Adopt an investment policy statement that includes
investment objectives, asset allocation, and the investment
management structure for the retirement fund assets under its
control. The statement may be revised at the discretion of the
state board. The state board shall seek the advice of the
council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.
Sec. 2. Minnesota Statutes 1986, section 11A.24,
subdivision 2, is amended to read:
Subd. 2. [GOVERNMENT OBLIGATIONS.] The state board may
invest funds in governmental bonds, notes, bills, mortgages and
other fixed obligations, including evidences of indebtedness
provided the issue is backed by the full faith and credit of the
issuer or the issue is rated among the top four quality rating
categories by a nationally recognized rating agency. The
obligations in which the board may invest under this subdivision
include guaranteed or insured issues of (a) the United States,
its agencies, its instrumentalities, or organizations created
and regulated by an act of Congress; (b) Canada and its
provinces, provided the principal and interest is payable in
United States dollars; (c) the states and their municipalities,
political subdivisions, agencies or instrumentalities, where
backed by the state's full faith and credit or if the issuer has
not been in default in payments of principal or interest within
the past ten years or in the case of revenue bonds the obligor
has been completely self-supporting for the five prior years;
(d) the International Bank for Reconstruction and Development,
the Inter-American Development Bank, the Asian Development Bank,
the African Development Bank, or any other United States
Government sponsored organization of which the United States is
a member, provided the principal and interest is payable in
United States dollars and the issues are rated in the highest
quality category by a nationally recognized rating agency.
Sec. 3. Minnesota Statutes 1986, section 11A.24,
subdivision 3, is amended to read:
Subd. 3. [CORPORATE OBLIGATIONS.] The state board may
invest funds in bonds, notes, debentures, transportation
equipment obligations, or any other longer term evidences of
indebtedness issued or guaranteed by a corporation organized
under the laws of the United States or any state thereof, or the
Dominion of Canada or any province thereof if they conform to
the following provisions:
(a) the principal and interest of obligations of
corporations incorporated or organized under the laws of the
Dominion of Canada or any province thereof shall be payable in
United States dollars; and
(b) obligations shall be rated among the top four quality
categories by a nationally recognized rating agency;
(c) for unrated obligations, the corporation shall have
issued other similar securities rated according to clause (b)
or: (i) the consolidated net pretax earnings of corporations
other than banks and finance corporations shall have been on
average for the preceding five years at least three times the
annual interest charges on total funded debt applicable to that
period; or (ii) the consolidated net pretax earnings of banks
and finance corporations shall have been on average for the
preceding five years at least 2.4 times the annual interest
charges on total funded debt applicable to that period.
Sec. 4. Minnesota Statutes 1986, section 11A.24,
subdivision 4, is amended to read:
Subd. 4. [OTHER OBLIGATIONS.] The state board may invest
funds in bankers acceptances, certificates of deposit,
commercial paper, mortgage participation certificates and pools,
repurchase agreements and reverse repurchase agreements,
guaranteed investment contracts, and savings accounts if they
conform to the following provisions:
(a) bankers acceptances of United States banks shall be
limited to those eligible for purchase by the Federal Reserve
System issued by banks rated in the highest four quality
categories by a nationally recognized rating agency;
(b) certificates of deposit shall be limited to those
issued by United States banks and savings institutions that meet
the collateral requirements established in section 9.031, unless
sufficient volume is unavailable at competitive interest rates.
In that event, noncollateralized certificates of deposit may be
purchased from United States banks and savings institutions that
are rated in the highest quality category by a nationally
recognized rating agency are rated in the highest four quality
categories by a nationally recognized rating agency or whose
certificates of deposit are fully insured by the Federal Deposit
Insurance Corporation or the Federal Savings and Loan Insurance
Corporation. Sections 16A.58 and 16B.06 do not apply to
certifications of deposit and collateralization agreements
executed by the state board;
(c) commercial paper shall be limited to those issued by
United States corporations or their Canadian subsidiaries, shall
be of the highest quality and mature in 270 days or less rated
in the highest two quality categories by a nationally recognized
rating agency;
(d) mortgage participation or pass through certificates
evidencing interests in pools of first mortgages or trust deeds
on improved real estate located in the United States where the
loan to value ratio for each loan as calculated in accordance
with section 61A.28, subdivision 3 does not exceed 80 percent
for fully amortizable residential properties and in all other
respects meets the requirements of section 61A.28, subdivision
3. In addition the state board may purchase from the Minnesota
housing finance agency all or any part of any pool of
residential mortgages, not in default, which has previously been
financed by the issuance of bonds or notes of the agency. The
state board may also enter into a commitment with the agency, at
the time of any issue of bonds or notes, to purchase at a
specified future date, not exceeding 12 years from the date of
the issue, the amount of mortgage loans then outstanding and not
in default, which have been made or purchased from the proceeds
of the bonds or notes. The state board may charge reasonable
fees for any such commitment, and may agree to purchase the
mortgage loans at a price such that the yield thereon to the
state board will, in its judgment, be comparable to that
available on similar mortgage loans at the date of the bonds or
notes. The state board may also enter into agreements with the
agency for the investment of any portion of the funds of the
agency for such period, with such withdrawal privileges, and at
such guaranteed rate of return, if any, as may be agreed between
the state board and the agency.
(e) collateral for repurchase agreements and reverse
repurchase agreements shall be limited to letters of credit and
securities authorized in this section;
(f) guaranteed investment contracts shall be limited to
those issued by insurance companies rated in the top four
quality categories by a nationally recognized rating agency;
(g) savings accounts shall be limited to those fully
insured by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation.
Sec. 5. Minnesota Statutes 1986, section 11A.24,
subdivision 5, is amended to read:
Subd. 5. [CORPORATE STOCKS.] The state board may invest
funds in stocks or convertible issues of any corporation
organized under the laws of the United States or the states
thereof, the Dominion of Canada or its provinces, or any
corporation listed on the New York Stock Exchange or the
American Stock Exchange, if they conform to the following
provisions:
(a) The aggregate value of corporate stock investments, as
adjusted for realized profits and losses, shall not exceed 75 85
percent of the market or book value, whichever is less, of a
fund, less the aggregate value of investments according to
subdivision 6;
(b) Investments shall not exceed five percent of the total
outstanding shares of any one corporation.
Sec. 6. Minnesota Statutes 1986, section 11A.24,
subdivision 6, is amended to read:
Subd. 6. [OTHER INVESTMENTS.] (a) In addition to the
investments authorized in subdivisions 1 to 5, and subject to
the provisions in clause (b), the state board may invest funds
in:
(1) Venture capital investment businesses through
participation in limited partnerships and corporations;
(2) Real estate ownership interests or loans secured by
mortgages or deeds of trust through investment in limited
partnerships, bank sponsored collective funds, trusts, and
insurance company commingled accounts, including separate
accounts;
(3) Regional and mutual funds through bank sponsored
collective funds and open-end investment companies registered
under the Federal Investment Company Act of 1940; and
(4) Resource investments through limited partnerships,
private placements and corporations; and
(5) Debt obligations not subject to subdivision 3.
(b) The investments authorized in clause (a) may only be
made if they conform to the following provisions:
(1) The aggregate value of all investments made according
to clause (a) shall not exceed 20 35 percent of the market value
of the fund for which the state board is investing;
(2) There shall be at least four unrelated owners of the
investment other than the state board for investments made under
paragraph (a), clause (1), (2), (3), or (4);
(3) State board participation in an investment vehicle
shall be limited to 20 percent thereof for investments made
under paragraph (a), clause (1), (2), (3), or (4); and
(4) State board participation in a limited partnership does
not include a general partnership interest or other interest
involving general liability. The state board shall not engage
in any activity as a limited partner which creates general
liability.
Sec. 7. Minnesota Statutes 1986, section 11A.25, is
amended to read:
11A.25 [ADDITIONAL INVESTMENT PROVISIONS.]
When investing assets of any funds or accounts specifically
made subject to this section or not otherwise referred to in
sections 11A.01 to 11A.25, all securities shall be debt
obligations maturing within three years of the date of purchase
and shall conform to the applicable provisions of section 11A.24.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective the day following final
enactment.
ARTICLE 9
REDUCED VESTING REQUIREMENTS AND MODIFIED
WORKERS' COMPENSATION OFFSETS
Section 1. Minnesota Statutes 1986, section 352.113,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] Any
employee covered by the system who is less than 65 years of age
who becomes totally and permanently disabled after ten five or
more years of allowable service and any employee who is at least
50 years of age but less than 65 years of age who becomes
totally and permanently disabled after five or more years of
allowable service shall be entitled to a disability benefit in
an amount provided in subdivision 3. If such disabled
employee's state service has terminated at any time, at
least five three years of allowable service must have been
rendered after last becoming a state employee covered by the
system.
Sec. 2. Minnesota Statutes 1986, section 352.115,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] After
separation from state service any employee (a) who has attained
the age of at least 55 years and who is entitled to credit for
not less than ten five years allowable service or (b) who has
received credit for not less than 30 years allowable service
regardless of age is entitled upon application to a retirement
annuity.
Sec. 3. Minnesota Statutes 1986, section 352.12,
subdivision 2, is amended to read:
Subd. 2. [SURVIVING SPOUSE BENEFIT.] If an employee or
former employee who has attained the age of at least 50 years
and has credit for not less than ten five years allowable
service or who has credit for not less than 30 years of
allowable service, regardless of age attained, dies before an
annuity or disability benefit has become payable,
notwithstanding any designation of beneficiary to the contrary,
the surviving spouse of the employee may elect to receive, in
lieu of the refund with interest provided in subdivision 1, an
annuity equal to the joint and 100 percent survivor annuity
which the employee could have qualified for had the employee
terminated service on the date of death. The surviving spouse
may apply for the annuity at any time after the date on which
the deceased employee would have attained the required age for
retirement based on the employee's allowable service. The
annuity shall be computed as provided in sections 352.115,
subdivisions 1, 2, and 3, and 352.116, subdivisions 1 and 3.
Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply
to a deferred annuity payable under this subdivision. The
annuity shall cease with the last payment received by the
surviving spouse in the lifetime of the surviving spouse. An
amount equal to the excess, if any, of the accumulated
contributions which were credited to the account of the deceased
employee over and above the total of the benefits paid and
payable to the surviving spouse shall be paid to the deceased
employee's last designated beneficiary or, if none, to the
surviving children of the deceased spouse in equal shares or, if
none, to the surviving parents of the deceased spouse or, if
none, to the representative of the estate of such deceased
spouse. Any employee may request in writing that this
subdivision not apply and that payment be made only to a
designated beneficiary as otherwise provided by this chapter.
Sec. 4. Minnesota Statutes 1986, section 352.22,
subdivision 3, is amended to read:
Subd. 3. [DEFERRED ANNUITY.] (1) Any employee with at
least ten five years of allowable service when such termination
occurs may elect to leave the accumulated contributions in the
fund and thereby be entitled to a deferred retirement annuity.
This annuity shall be computed in the manner provided by the law
in effect at the time state service terminated, on the basis of
allowable service prior to termination of service.
(2) An employee on layoff or on leave of absence without
pay, except a leave of absence for health reasons, who does not
return to state service shall have any annuity, deferred annuity
or other benefit to which the employee may become entitled
computed under the law in effect on the last working day.
(3) No application for a deferred annuity shall be made
more than 60 days prior to the time the former employee reaches
the required age for entitlement to the payment of the annuity.
The deferred annuity shall begin to accrue no earlier than 60
days prior to the date the application is filed in the office of
the system, but in no event prior to the date the employee
reaches the required age for entitlement to the annuity nor
prior to the day following the termination of state service in a
position not covered by the retirement system nor prior to the
day following the termination of employment in a position which
requires the employee to be a member of either the public
employees retirement association or the teachers retirement
association.
(4) Application for the accumulated contributions left on
deposit with the fund may be made at any time after 30 days
following the date of termination of service.
Sec. 5. Minnesota Statutes 1986, section 352.72,
subdivision 1, is amended to read:
Subdivision 1. [ENTITLEMENT TO ANNUITY.] Any person who
has been an employee covered by the Minnesota state retirement
system, or a member of the public employees retirement
association including the public employees retirement
association police and firefighters' fund, or the teachers
retirement association, or the state patrol retirement
association, or any other public employee retirement system in
the state of Minnesota having a like provision but excluding all
other funds providing benefits for police officers or
firefighters shall be entitled when qualified to an annuity from
each fund if total allowable service in all funds or in any two
of these funds totals ten five or more years, provided no
portion of the allowable service upon which the retirement
annuity from one fund is based is again used in the computation
for benefits from another fund and provided further that a
refund has not been taken from any one of these funds since
service entitling the employee to coverage under the system or
the employee's membership in any of the associations last
terminated. The annuity from each fund shall be determined by
the appropriate provisions of the law except that the
requirement that a person must have at least ten five years
allowable service in the respective system or association shall
not apply for the purposes of this section provided the combined
service in two or more of these funds equals ten five or more
years.
Sec. 6. Minnesota Statutes 1986, section 352.93,
subdivision 1, is amended to read:
Subdivision 1. After separation from state service an
employee covered under section 352.91 who has attained the age
of at least 55 years and has credit for not less than a total of
ten five years of covered correctional service and regular
Minnesota state retirement system service shall be entitled upon
application to a retirement annuity under this section based
only on covered correctional employees' service. Application
may be made no earlier than 60 days prior to the date the
employee is eligible to retire by reason of both age and service
requirements.
For the purpose of this section, average salary means the
average of the monthly salary during the employees' highest five
successive years of salary as an employee covered by the
Minnesota state retirement system.
Sec. 7. Minnesota Statutes 1986, section 352B.08,
subdivision 1, is amended to read:
Subdivision 1. Every member who is credited with ten five
or more years of allowable service shall be entitled to separate
from such state service and upon attaining the age of 55 years,
shall be entitled to receive a life annuity, upon separation
from state service. Members shall make application for an
annuity in a form and manner prescribed by the executive
director. No application may be made more than 60 days prior to
the date the member is eligible to retire by reason of both age
and service requirements. An annuity shall begin to accrue no
earlier than 90 days prior to the date the application is filed
with the executive director.
Sec. 8. Minnesota Statutes 1986, section 352B.11,
subdivision 2, is amended to read:
Subd. 2. [DEATH; PAYMENT TO SPOUSE AND CHILDREN.] In the
event any member serving actively as a member, a member
receiving the disability benefit provided by section 352B.10,
clause (1), or a former member receiving a disability benefit as
provided by section 352B.10, clause (3) dies from any cause, the
surviving spouse and dependent child or dependent children shall
be entitled to benefit payments as follows:
(a) A member with at least ten five years of allowable
service or a former member with at least 20 years of allowable
service is deemed to have elected a 100 percent joint and
survivor annuity payable to a surviving spouse only on or after
the date the member or former member attained or would have
attained the age of 55.
(b) The surviving spouse of a member who had credit for
less than ten five years of service shall receive, for life, a
monthly annuity equal to 20 percent of that portion of the
average monthly salary of the member from which deductions were
made for retirement. If the surviving spouse remarries, the
annuity shall cease as of the date of the remarriage.
(c) The surviving spouse of a member who had credit for at
least ten five years of service and who dies after attaining 55
years of age, may elect to receive a 100 percent joint and
survivor annuity, for life, notwithstanding a subsequent
remarriage, in lieu of the annuity prescribed in clause (b).
(d) The surviving spouse of any member who had credit
for ten five years or more and who was not 55 years of age at
death, shall receive the benefit equal to 20 percent of the
average monthly salary as described in clause (b) until the
deceased member would have reached the age of 55 years, and
beginning the first of the month following that date, may elect
to receive the 100 percent joint and survivor annuity. If the
surviving spouse remarries prior to the deceased member's 55th
birthdate, all benefits or annuities shall cease as of the date
of remarriage. Remarriage subsequent to the deceased member's
55th birthday shall not affect the payment of the benefit.
(e) Each dependent child shall receive a monthly annuity
equal to ten percent of that portion of the average monthly
salary of the former member from which deductions were made for
retirement. A dependent child over the age of 18 years and
under the age of 22 years also may receive the monthly benefit
provided herein, if the child is continuously attending an
accredited school as a full time student during the normal
school year as determined by the director. If the child does
not continuously attend school but separates from full time
attendance during any portion of a school year, the annuity
shall cease at the end of the month of separation. In addition,
a payment of $20 per month shall be prorated equally to
surviving dependent children when the former member is survived
by one or more dependent children. Payments for the benefit of
any qualified dependent child shall be made to the surviving
spouse, or if there be none, to the legal guardian of the
child. The maximum monthly benefit shall not exceed 40 percent
of the average monthly salary for any number of children.
(f) If the member shall die under circumstances which
entitle the surviving spouse and dependent children to receive
benefits under the workers' compensation law, amounts equal to
the workers' compensation benefits received by them shall not be
deducted from the benefits payable pursuant to this section.
(g) The surviving spouse of a deceased former member who
had credit for ten five or more years of allowable service, but
excluding the spouse of a former member receiving a disability
benefit under the provisions of section 352B.10, clause (3),
shall be entitled to receive the 100 percent joint and survivor
annuity at such time as the deceased member would have reached
the age of 55 years, provided the surviving spouse has not
remarried prior to that date. In the event of the death of a
former member who does not qualify for other benefits under this
chapter, the surviving spouse or, if none, the children or heirs
shall be entitled to receive a refund of the accumulated
deductions left in the fund plus interest at the rate of five
percent per annum compounded annually.
Sec. 9. Minnesota Statutes 1986, section 352B.30,
subdivision 1, is amended to read:
Subdivision 1. [ENTITLEMENT TO ANNUITY.] Any person who
has been an employee covered by the Minnesota state retirement
system, or a member of the public employees retirement
association including the public employees retirement
association police and firefighters' fund, or the teachers
retirement association, or the state patrol retirement fund, or
any other public employee retirement system in the state of
Minnesota having a like provision but excluding all other funds
providing benefits for police or firefighters shall be entitled
when qualified to an annuity from each fund if total allowable
service in all funds or in any two of these funds totals ten
five or more years, provided no portion of the allowable service
upon which the retirement annuity from one fund is based is
again used in the computation for benefits from another fund and
provided further that the member has not taken a refund from any
one of these funds since service entitling the member to
coverage under the system or membership in any of the
associations last terminated. The annuity from each fund shall
be determined by the appropriate provisions of the law except
that the requirement that a person must have at least ten five
years allowable service in the respective system or association
shall not apply for the purposes of this section provided the
combined service in two or more of these funds equals ten five
or more years.
Sec. 10. Minnesota Statutes 1986, section 353.29,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND ALLOWABLE SERVICE REQUIREMENTS.]
Upon separation from public service any person who has attained
the age of at least 65 years and who received credit for not
less than ten five years of allowable service is entitled upon
application to a retirement annuity. Such retirement annuity is
known as the "normal" retirement annuity.
Sec. 11. Minnesota Statutes 1986, section 353.29,
subdivision 2, is amended to read:
Subd. 2. [AVERAGE SALARY.] In calculating the annuity
under subdivision 3, "average salary" means an amount equivalent
to the average of a member's highest salary upon which employee
contributions were paid for any five successive years of
allowable service, based on dates of salary periods as listed on
salary deduction reports. The five successive years average
salary may not include any reduced salary paid during a period
in which the employee is entitled to benefit payments from
workers' compensation for temporary disability, unless the
average salary is higher, including this period.
Sec. 12. Minnesota Statutes 1986, section 353.30,
subdivision 1c, is amended to read:
Subd. 1c. Any person who has received credit for at least
30 years of allowable service or any person who has attained the
age of at least 55 years but not more than 65 years, and who
received credit for at least ten five years of allowable service
is entitled upon application to a retirement annuity in an
amount equal to the normal annuity provided in section 353.29,
subdivisions 2 and 3, reduced by one-quarter of one percent for
each month that the member is under age 65 at the time of
retirement, except that for any member who has 30 or more years
of allowable service the reduction shall be applied only for
each month that the member is under age 62 at the time of
retirement.
Sec. 13. Minnesota Statutes 1986, section 353.32,
subdivision 1a, is amended to read:
Subd. 1a. [SURVIVING SPOUSE OPTIONAL ANNUITY.] If a member
or former member who has attained the age of at least 50 years
and has credit for not less than ten five years of allowable
service, or who has credit for not less than 30 years of
allowable service, regardless of age attained, dies before the
annuity or disability benefit has become payable,
notwithstanding any designation of beneficiary to the contrary,
the surviving spouse may elect to receive, in lieu of a refund
with interest provided in subdivision 1, or survivor benefits
otherwise payable pursuant to section 353.31, an annuity equal
to the 100 percent joint and survivor annuity which the member
could have qualified for had the member terminated service on
the date of death. The surviving spouse may apply for the
annuity at any time after the date on which the deceased
employee would have attained the required age for retirement
based on the employee's allowable service. The annuity shall be
computed as provided in sections 353.29, subdivisions 2 and 3;
and 353.30, subdivisions 1, 1a, 1b and 1c. Sections 353.34,
subdivision 3, and 353.71, subdivision 2, apply to a deferred
annuity payable under this subdivision. No payment shall accrue
beyond the end of the month in which entitlement to the annuity
has terminated. An amount equal to the excess, if any, of the
accumulated contributions which were credited to the account of
the deceased employee over and above the total of the annuities
paid and payable to the surviving spouse shall be paid to the
deceased member's last designated beneficiary or, if none, to
the legal representative of the estate of the deceased member.
Any member may specify in writing that this subdivision shall
not apply and that payment shall be made only to the designated
beneficiary, as otherwise provided by this chapter.
Sec. 14. Minnesota Statutes 1986, section 353.33,
subdivision 1, is amended to read:
Subdivision 1. [AGE, SERVICE AND SALARY REQUIREMENTS.] Any
member who becomes totally and permanently disabled before age
65 and after ten five years of allowable service or after age 50
but before age 65 with five years of allowable service,
whichever is sooner, shall be entitled to a disability benefit
in an amount provided in subdivision 3. If such disabled
person's public service has terminated at any time, at least
five three of the required ten five years of allowable service
must have been rendered after last becoming a member. Any
member whose average salary is less than $75 per month shall not
be entitled to a disability benefit. No repayment of a refund
otherwise authorized pursuant to section 353.34 and no purchase
of prior service or payment made in lieu of salary deductions
otherwise authorized pursuant to section 353.01, subdivision 16,
353.017, subdivision 4, or 353.36, subdivision 2 may be made
after the occurrence of the disability for which an application
pursuant to this section is filed.
Sec. 15. Minnesota Statutes 1986, section 353.33,
subdivision 5, is amended to read:
Subd. 5. [BENEFITS PAID UNDER WORKERS' COMPENSATION LAW.]
Disability benefits paid shall be reimbursed and future benefits
shall be reduced by any amounts received or receivable,
including temporary total, permanent total, temporary partial or
permanent partial benefits, in either periodic or lump sum
payments from the employer under applicable workers'
compensation laws, after deduction of amount of attorney fees,
authorized under applicable workers' compensation laws, paid by
a disabilitant if the total of the single life annuity actuarial
equivalent disability benefit and the workers' compensation
benefit exceeds: (1) the salary the disabled member received as
of the date of the disability or (2) the salary currently
payable for the same employment position or an employment
position substantially similar to the one the person held as of
the date of the disability, whichever is greater. The
disability benefit must be reduced to that amount which, when
added to the workers' compensation benefits, does not exceed the
greater of the salaries described in clauses (1) and (2).
Sec. 16. Minnesota Statutes 1986, section 353.33, is
amended by adding a subdivision to read:
Subd. 5b. [BENEFITS PAID UNDER WORKERS' COMPENSATION LAW.]
A disabled member who is eligible to receive a disability
benefit under subdivision 5 as of June 30, 1987, and whose
disability benefit amount had been reduced prior to July 1,
1987, as a result of the receipt of workers' compensation
benefits, must have the disability benefit payment amount
restored, as of July 1, 1987, calculated in accordance with
subdivision 5. However, a disabled member is not entitled to
receive retroactive repayment of any disability benefit amounts
lost before July 1, 1987, as a result of the reduction required
before that date because of the receipt of workers' compensation
benefits.
Any disability benefit overpayments made before July 1,
1987, and occurring because of the failure to reduce the
disability benefit payment to the extent required because of the
receipt of workers' compensation benefits, may be collected by
the association through the reduction of disability benefit or
annuity payment made on or after July 1, 1987, until the
overpayment is fully recovered.
Sec. 17. Minnesota Statutes 1986, section 353.34,
subdivision 3, is amended to read:
Subd. 3. [DEFERRED ANNUITY; ELIGIBILITY; COMPUTATION.] Any
person with at least ten five years of allowable service when
termination of public service occurs shall have the option of
leaving the accumulated deductions in the fund and thereby be
entitled to a deferred retirement annuity commencing at age 65
or for a deferred early retirement annuity pursuant to section
353.30, subdivisions 1, 1a, 1b or 1c. The deferred annuity
shall be computed in the manner provided in section 353.29,
subdivisions 2 and 3, on the basis of the law in effect on the
date of termination of public service and shall be augmented as
provided in section 353.71, subdivision 2. Any person qualified
to apply for a deferred retirement annuity may revoke this
option at any time prior to the commencement of deferred annuity
payments by making application for a refund. The person shall
payments by making application for a refund. The person shall
be entitled to a refund of accumulated member contributions
within 30 days following date of receipt of the application by
the executive director.
Sec. 18. Minnesota Statutes 1986, section 353.651,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND ALLOWABLE SERVICE REQUIREMENTS.]
Upon separation from public service, any police officer or
firefighter member who has attained the age of at least 55 years
and who received credit for not less than ten five years of
allowable service is entitled upon application to a retirement
annuity. Such retirement annuity is known as the "normal"
retirement annuity.
Sec. 19. Minnesota Statutes 1986, section 353.651,
subdivision 2, is amended to read:
Subd. 2. [AVERAGE SALARY.] In calculating the annuity
under subdivision 3, "average salary" means an amount equivalent
to the average of the highest salary earned as a police officer
or firefighter upon which employee contributions were paid for
any five successive years of allowable service.
The five successive years average salary may not include
any reduced salary paid during a period in which the employee is
entitled to benefit payments from workers' compensation for
temporary disability unless the average salary is higher,
including this period.
Sec. 20. Minnesota Statutes 1986, section 353.656,
subdivision 2, is amended to read:
Subd. 2. [BENEFITS PAID UNDER WORKERS' COMPENSATION LAW.]
If a member, as described in subdivision 1, is injured under
circumstances which entitle the member to receive benefits under
the workers' compensation law, the member shall receive the same
benefits as provided in subdivision 1, with disability benefits
paid reimbursed and future benefits reduced by all periodic or
lump sum amounts paid to the member under the workers'
compensation law, after deduction of amount of attorney fees,
authorized under applicable workers' compensation laws, paid by
a disabilitant if the total of the single life annuity actuarial
equivalent disability benefit and the workers' compensation
benefit exceeds: (1) the salary the disabled member received as
of the date of the disability or (2) the salary currently
payable for the same employment position or an employment
position substantially similar to the one the person held as of
the date of the disability, whichever is greater. The
disability benefit must be reduced to that amount which, when
added to the workers' compensation benefits, does not exceed the
greater of the salaries described in clauses (1) and (2).
Sec. 21. Minnesota Statutes 1986, section 353.656, is
amended by adding a subdivision to read:
Subd. 2a. A disabled member who is eligible to receive a
disability benefit under subdivision 2 as of June 30, 1987, and
whose disability benefit amount had been reduced prior to July
1, 1987, as a result of the receipt of workers' compensation
benefits, must have the disability benefit payment amount
restored, as of July 1, 1987, calculated in accordance with
subdivision 2. However, a disabled member is not entitled to
receive retroactive repayment of any disability benefit amounts
lost before July 1, 1987, as a result of the reduction required
before that date because of the receipt of workers' compensation
benefits.
Any disability benefit overpayments made before July 1,
1987, and occurring because of the failure to reduce the
disability benefit payment to the extent required because of the
receipt of workers' compensation benefits, may be collected by
the association through the reduction of disability benefit or
annuity payment made on or after July 1, 1987, until the
overpayment is fully recovered.
Sec. 22. Minnesota Statutes 1986, section 353.657,
subdivision 2a, is amended to read:
Subd. 2a. If a member who has attained the age of at least
50 years and has credit for not less than ten five years
allowable service dies before public service has terminated, or
if an employee who has filed a valid application for an annuity
or disability benefit prior to termination of public service
dies before the annuity or benefit has become payable,
notwithstanding any designation of beneficiary to the contrary,
the surviving spouse may elect to receive, in lieu of a refund
with interest provided in section 353.32, subdivision 1, or
survivor benefits otherwise payable pursuant to subdivisions 1
and 2, an annuity equal to the 100 percent joint and survivor
annuity which the member could have qualified for on the date of
death, computed as provided in sections 353.651, subdivisions 2
and 3, and 353.30, subdivision 3. The surviving spouse may
apply for the annuity at any time after the date on which the
deceased employee would have attained the required age for
retirement based on the employee's allowable service. Sections
353.34, subdivision 3, and 353.71, subdivision 2, apply to a
deferred annuity payable under this subdivision. No payment
shall accrue beyond the end of the month in which entitlement to
such annuity has terminated. An amount equal to the excess, if
any, of the accumulated contributions which were credited to the
account of the deceased employee over and above the total of the
annuities paid and payable to the surviving spouse shall be paid
to the deceased member's last designated beneficiary or, if
none, to the legal representative of the estate of such deceased
member. Any member may request in writing that this subdivision
not apply and that payment be made only to the designated
beneficiary, as otherwise provided by this chapter.
Sec. 23. Minnesota Statutes 1986, section 353.71,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] Any person who has been a
member of the public employees retirement association, or the
Minnesota state retirement system, or the teachers retirement
association, or any other public retirement system in the state
of Minnesota having a like provision, except a fund providing
benefits for police officers or firefighters governed by
sections 69.77 or 69.771 to 69.776, shall be entitled when
qualified to an annuity from each fund if the total allowable
service in all funds or in any two of these funds totals ten
five or more years, provided no portion of the allowable service
upon which the retirement annuity from one fund is based is
again used in the computation for benefits from another fund and
provided further that the person has not taken a refund from any
one of these funds since the person's membership in that
association or system last terminated. The annuity from each
fund shall be determined by the appropriate provisions of the
law except that the requirement that a person must have at least
ten five years of allowable service in the respective
association or system shall not apply for the purposes of this
section provided the combined service in two or more of these
funds equals ten five or more years.
Sec. 24. Minnesota Statutes 1986, section 354.44,
subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENTS AS TO AGE AND SERVICE.] Any
member or former member who ceases or has ceased to render
teaching services in any school or institution covered by the
provisions of this chapter, and who has attained the age of at
least 55 years with not less than ten five years allowable
service, or who has received credit for not less than 30 years
allowable service regardless of age, is entitled upon written
application to a retirement annuity.
Sec. 25. Minnesota Statutes 1986, section 354.46,
subdivision 2, is amended to read:
Subd. 2. [DEATH WHILE ELIGIBLE DESIGNATED BENEFICIARY
BENEFIT.] The surviving spouse of any member or former member
who has attained the age of at least 50 years and has credit for
at least ten five years of allowable service or who has credit
for at least 30 years of allowable service irrespective of age
shall be entitled to joint and survivor annuity coverage in the
event of death of the member prior to retirement. If the
surviving spouse does not elect to receive a surviving spouse
benefit provided pursuant to subdivision 1, if applicable, or
does not elect to receive a refund of accumulated member
contributions provided pursuant to section 354.47, subdivision
1, or 354.62, subdivision 5, clause (3), whichever is
applicable, the surviving spouse shall be entitled to receive,
upon written application on a form prescribed by the executive
director, a benefit equal to the second portion of a 100 percent
joint and survivor annuity as provided pursuant to section
354.45 and computed pursuant to section 354.44, subdivision 2, 6
or 7, whichever is applicable. The surviving spouse may apply
for the annuity at any time after the date on which the deceased
employee would have attained the required age for retirement
based on the employee's allowable service. Sections 354.44,
subdivisions 6 and 7, and 354.60 apply to a deferred annuity
payable under this section. If the member was a participant in
the variable annuity division, the applicable portion of the
benefit shall be computed pursuant to section 354.62,
subdivision 5, clause (1). The benefit shall be payable for
life.
Sec. 26. Minnesota Statutes 1986, section 354.48,
subdivision 1, is amended to read:
Subdivision 1. [AGE, SERVICE AND SALARY REQUIREMENTS.] Any
member who became totally and permanently disabled after at
least ten five years of allowable service or after age 50 with
five years of allowable service, whichever is sooner shall be
entitled to a disability benefit in an amount provided in
subdivision 3. If such disabled person's teaching service has
terminated at any time, at least five three of the required ten
five years of allowable service must have been rendered after
last becoming a member. Any member whose average salary is less
than $75 per month shall not be entitled to disability benefits.
Sec. 27. Minnesota Statutes 1986, section 354.49,
subdivision 3, is amended to read:
Subd. 3. Any person who has attained the age of at least
65 with less than ten five years of credited allowable service
shall be entitled to receive a refund in an amount equal to the
person's accumulated deductions plus interest in lieu of a
proportionate annuity pursuant to section 356.32 except those
covered under the provisions of section 354.44, subdivisions 6
or 7 in which case the refund shall be an amount equal to the
accumulated deductions credited to the person's account as of
June 30, 1957 and after July 1, 1957 the accumulated deductions
plus interest at the rate of five percent compounded annually.
Sec. 28. Minnesota Statutes 1986, section 354.60, is
amended to read:
354.60 [SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY.]
Any person who has been a member of the Minnesota state
retirement system or the public employees retirement association
including the public employees retirement association police and
fire fund or the teachers retirement association or the
Minnesota state patrol retirement association, or any other
public employee retirement system in the state of Minnesota
having a like provision but excluding all other funds providing
benefits for police officers or firefighters shall be entitled
when qualified to an annuity from each fund if the person's
total allowable service in all three funds or in any two of
these funds totals ten five or more years, provided no portion
of the allowable service upon which the retirement annuity from
one fund is based is again used in the computation for benefits
from another fund and provided further that the person has not
taken a refund from any one of these three funds since the
person's membership in that association has terminated. The
annuity from each fund shall be determined by the appropriate
provisions of the law except that the requirement that an
annuitant have at least ten five years' membership service or
ten five years of allowable service in the respective
association shall not apply for the purposes of this section
provided the combined service in two or more of these funds
equals ten five or more years.
Sec. 29. Minnesota Statutes 1986, section 354A.31,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND SERVICE REQUIREMENTS.] Any
coordinated member or former coordinated member who has ceased
to render teaching service for the school district in which the
teachers retirement fund association exists and who has either
attained the age of at least 55 years with not less than ten
five years of allowable service credit or received credit for
not less than 30 years of allowable service regardless of age,
shall be entitled upon written application to a retirement
annuity.
Sec. 30. Minnesota Statutes 1986, section 354A.31,
subdivision 5, is amended to read:
Subd. 5. [UNREDUCED NORMAL RETIREMENT ANNUITY.] Upon
retirement at age 65 with at least ten five years of service
credit or at age 62 with at least 30 years of service credit, a
coordinated member shall be entitled to a normal retirement
annuity calculated pursuant to subdivision 4.
Sec. 31. Minnesota Statutes 1986, section 354A.31,
subdivision 6, is amended to read:
Subd. 6. [REDUCED RETIREMENT ANNUITY.] Upon retirement at
an age prior to age 65 with ten five years of service credit or
prior to age 62 with at least 30 years of service credit, a
coordinated member shall be entitled to a retirement annuity in
an amount equal to the normal retirement annuity reduced by
one-half of one percent for each month that the coordinated
member is under the age of 65 if the coordinated member has less
than 30 years of service credit or is under the age of 62 if the
coordinated member has at least 30 years of service credit but
is over the age of 59, and reduced by one-fourth of one percent
for each month that the coordinated member is under the age of
60.
Sec. 32. Minnesota Statutes 1986, section 354A.35,
subdivision 2, is amended to read:
Subd. 2. [DEATH WHILE ELIGIBLE TO RETIRE; SURVIVING SPOUSE
OPTIONAL ANNUITY.] The surviving spouse of any coordinated
member who has attained the age of at least 50 years and has
credit for at least ten five years of service or has credit for
at least 30 years of service regardless of age shall be entitled
to joint and survivor annuity coverage in the event of death of
the member prior to retirement. The surviving spouse may apply
for the annuity at any time after the date on which the deceased
employee would have attained the required age for retirement
based on the employee's allowable service. The member's
surviving spouse shall be paid a joint and survivor annuity as
provided in section 354A.32 and computed pursuant to section
354A.31. Sections 354A.37, subdivision 2, and 354A.39 apply to
a deferred annuity payable under this section. The benefits
shall be payable for life.
Sec. 33. Minnesota Statutes 1986, section 354A.36,
subdivision 1, is amended to read:
Subdivision 1. [MINIMUM AGE, SERVICE AND SALARY
REQUIREMENTS.] Any coordinated member who has either at
least ten five years of allowable service credit or attained the
age of at least 50 years with at least five years of allowable
service credit, has an average salary of at least $75 per month
and has become totally and permanently disabled shall be
entitled to a disability benefit. If the disabled coordinated
member's allowable service credit has not been continuous, at
least five three years of the required allowable service shall
be required to have been rendered subsequent to the last
interruption in service.
Sec. 34. Minnesota Statutes 1986, section 354A.39, is
amended to read:
354A.39 [SERVICE IN OTHER PUBLIC RETIREMENT FUNDS;
ANNUITY.]
Any person who has been a member of the Minnesota state
retirement system, the public employees retirement association
including the public employees retirement association police and
fire fund, the teachers retirement association, the Minnesota
state patrol retirement association, the legislators retirement
plan, the constitutional officers retirement plan, the
Minneapolis employees retirement fund, the Duluth teachers
retirement fund association new law coordinated program, the
Minneapolis teachers retirement fund association coordinated
program, the St. Paul teachers retirement fund association
coordinated program, or any other public employee retirement
system in the state of Minnesota having a like provision but
excluding all other funds providing retirement benefits for
police officers or firefighters shall be entitled when qualified
to an annuity from each fund if the person's total allowable
service in all of the funds or in any two or more of the funds
totals ten five or more years, provided that no portion of the
allowable service upon which the retirement annuity from one
fund is based is used again in the computation for a retirement
annuity from another fund and provided further that the person
has not taken a refund from any of funds or associations since
the person's membership in the fund or association has
terminated. The annuity from each fund or association shall be
determined by the appropriate provisions of the law governing
each fund or association, except that the requirement that a
person must have at least ten five years of allowable service in
the respective fund or association shall not apply for the
purposes of this section, provided that the aggregate service in
two or more of these funds equals ten five or more years.
Sec. 35. Minnesota Statutes 1986, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1)
Notwithstanding any provisions to the contrary of the laws
governing the funds enumerated in subdivision 3, a person who
has met the qualifications of clause (2) may elect to receive a
retirement annuity from each fund in which the person has at
least six months allowable service, based on the allowable
service in each fund, subject to the provisions of clause (3).
(2) A person may receive upon retirement, in lieu of any
augmentation of deferred annuities provided by laws governing
the funds enumerated in subdivision 3, a retirement annuity from
each fund in which the person has at least six months allowable
service if
(a) the person has allowable service totaling ten five or
more years in any two or more of the enumerated funds;
(b) the person has at least six months of allowable service
with the last such fund earned during the last period of
employment; and
(c) the person has not begun to receive an annuity from any
enumerated fund or the person has made application for benefits
from all funds within a six-month period.
(3) The retirement annuity from each fund shall be based
upon the allowable service in each fund, except that:
(a) The laws governing annuities shall be the law in effect
on the date of final termination from the last public service
under a covered fund.
(b) The "average salary" on which the annuity from each
covered fund in which the employee has credit in a formula plan
shall be based on the employee's highest five successive years
of covered salary during the entire service in covered funds.
(c) The formula percentages to be used by each fund shall
be those percentages prescribed by each fund's formula as
continued for the respective years of allowable service from one
fund to the next, recognizing all previous allowable service
with the other covered funds.
(d) Allowable service in all the funds shall be combined in
determining eligibility for and the application of each fund's
provisions in respect to actuarial reduction in the benefit
amount for retirement prior to normal retirement.
(e) The benefit amount payable for any allowable service
under a nonformula plan of a covered fund shall not be affected
but such service and covered salary shall be used in the above
calculation.
(f) This section shall not apply to any person whose final
termination from the last public service under a covered fund is
prior to May 1, 1975.
(g) For the purpose of computing benefits under this
section the formula percentages used by any covered fund shall
in no event exceed 2-1/2 percent per year of service for any
year of service or fraction thereof.
(h) Any period of time for which a person has credit in
more than one of the covered funds shall be used only once for
the purpose of determining total allowable service.
(i) If the period of duplicated service credit is more than
six months, or the person has credit for more than six months
with each of the funds, each fund shall apply its formula to a
prorated service credit for the period of duplicated service
based on a fraction of the salary on which deductions were paid
to that fund for the period divided by the total salary on which
deductions were paid to all funds for the period.
(j) If the period of duplicated service credit is less than
six months, or when added to other service credit with that fund
is less than six months, the service credit shall be ignored and
a refund of contributions made to the person in accord with that
fund's refund provisions.
Sec. 36. [423A.19] [REDUCED VESTING REQUIREMENT.]
Subdivision 1. [REDUCED VESTING.] Notwithstanding any law
to the contrary, for a police or salaried firefighters relief
association that implements the provision with municipal
approval as provided in subdivision 4, a person with at least
five years of service credited by the relief association is
entitled, upon termination of active service and reaching at
least the required normal retirement age, to receive a pro rata
monthly service pension. The pro rata monthly service pension
must be calculated in the amount and manner specified by the
board of trustees, but not to exceed that portion of the service
pension payable upon meeting the minimum age and years of
service requirements that bears the same relationship that the
person's actual years and portions of years of service bear to
the minimum service requirement.
Subd. 2. [SURVIVOR BENEFIT COVERAGE.] A person entitled to
or receiving a reduced vesting service pension as provided in
subdivision 1 is entitled to surviving spouse benefit coverage,
surviving child benefit coverage, or both, if all other
qualification requirements are met. The survivor benefit must
be calculated in the amount and manner specified by the board of
trustees, but not to exceed that portion of survivor benefit
payable to a survivor of a deceased retired member who had met
the minimum years of service requirement that bears the same
relationship that the actual years and portions of years of
service of the person bear to the minimum service requirement
for a service pension.
Subd. 3. [POSTRETIREMENT ADJUSTMENTS.] A reduced vesting
service pension as provided in subdivision 1 or a survivor
benefit payable on behalf of a deceased person entitled to or
receiving a reduced vesting service pension as provided in
subdivision 2 is entitled to postretirement adjustments if the
comparable pension or benefit payable when the full minimum
service requirement has been met is subject to postretirement
adjustments. The postretirement adjustment must be the same
percentage increase as the postretirement adjustment for the
comparable pension or benefit payable when the full minimum
service requirement has been met.
Subd. 4. [IMPLEMENTATION.] The reduced vesting requirement
must be implemented by a local relief association through an
amendment to the bylaws of the relief association with approval
by the governing body of the municipality as required by section
69.77, subdivision 2i. The bylaw amendment may not be effective
until a certified copy of it and the municipal approval has been
filed by the municipal clerk with the executive director of the
legislative commission on pensions and retirement, the state
auditor, and the secretary of state.
Sec. 37. [EFFECTIVE DATE.]
Sections 1 to 36 are effective July 1, 1987.
ARTICLE 10
PUBLIC PENSION PLAN LEGAL OPINIONS
Section 1. Minnesota Statutes 1986, section 8.07, is
amended to read:
8.07 [OPINIONS; COUNTY, CITY, TOWN, PUBLIC PENSION FUND,
SCHOOL ATTORNEYS, COMMISSIONER OF EDUCATION.]
The attorney general on application shall give an opinion,
in writing, to county, city, town, public pension fund
attorneys, or the attorneys for the board of a school district
or unorganized territory on questions of public importance; and
on application of the commissioner of education shall give an
opinion, in writing, upon any question arising under the laws
relating to public schools. On all school matters such opinion
shall be decisive until the question involved shall be decided
otherwise by a court of competent jurisdiction.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on July 1, 1987.
ARTICLE 11
MISCELLANEOUS CORRECTIONS
Section 1. [CORRECTION; FIRST CLASS CITY TEACHERS
RETIREMENT FUND AUDIT RESPONSIBILITY.]
Subdivision 1. [CORRECTION TO REFERENCE.] Minnesota
Statutes 1986, section 354A.021, subdivision 7, added by H.F.
No. 1213, article 7, section 1, if enacted at the 1987 regular
session, is amended to read:
Subd. 7. [AUDIT BY LEGISLATIVE AUDITOR.] The books and
accounts of each teachers retirement fund association must be
examined and audited periodically as considered necessary by the
state auditor. A full and detailed report of the examination
and audit must be made and a copy provided to the teachers
retirement fund association board of trustees. The cost of any
examination and audit must be paid by the teachers retirement
fund association in accordance with section 6.56. For purposes
of section 6.56, each teachers retirement fund association is
considered a state agency local governmental entity equivalent
to a county, city, town, or school district.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective July
1, 1987.
Sec. 2. [CORRECTION; EFFECTIVE DATE.]
Subdivision 1. [CLARIFICATION OF EFFECTIVE DATE.] A law
styled as H.F. No. 1213, article 7, section 2, if enacted at the
1987 regular session, is amended to read:
Sec. 2. [EFFECTIVE DATE.]
This article is effective July 1, 1987, regarding the
responsibility to audit all financial transactions occurring
after June 30, 1987.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective on
the day following final enactment.
Sec. 3. [CORRECTION; ERRONEOUS DATE REFERENCE.]
Subdivision 1. [DATE REFERENCE CORRECTION.] A law styled
as H.F. No. 1026, section 81, if enacted at the 1987 regular
session, is amended to read:
Sec. 81. [TRANSITIONAL PROVISION.]
In establishing the correctional employees retirement fund
under section 20, the board of directors of the Minnesota state
retirement system shall allocate the assets currently held by
the state employees retirement fund between that fund and the
newly created fund. The assets shall be allocated based on the
actuarial valuations of the state employees retirement plan and
the correctional employees retirement plan prepared by the
actuary retained by the legislative commission on pensions and
retirement as of July 1, 1986 1987, and adjusted for the actual
receipts of contributions and investment income and actual
disbursements of benefits, refunds, and administrative expenses
attributable to the correctional employees retirement plan
occurring between July 1, 1987, and the date on which the
correctional employees retirement fund is established.
Subd. 2. [EFFECTIVE DATE.] Subdivision 1 is effective on
the day following final enactment of H.F. No. 1026, at the 1987
regular session.
Approved June 2, 1987
Official Publication of the State of Minnesota
Revisor of Statutes