Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 317-S.F.No. 1224 
           An act relating to retirement; state unclassified 
          employees retirement program; permitting plan 
          participants who move to unclassified positions not 
          covered by the plan to elect to participate in the 
          plan; providing for collection of certain omitted 
          contributions; authorizing a medical leave and 
          reemployed annuitant provision for the Minneapolis 
          teachers retirement fund; amending Minnesota Statutes 
          1990, section 352D.02, by adding a subdivision; and 
          354A.12, by adding a subdivision.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 352D.02, is 
amended by adding a subdivision to read: 
    Subd. 1d.  [ELECTION OF PROGRAM PARTICIPATION.] An employee 
who is a participant in the unclassified program by virtue of 
employment in a position listed in subdivision 1 may elect to 
remain in the unclassified program upon subsequent employment in 
an unlimited, full-time unclassified position that is not listed 
in subdivision 1.  To elect participation in the unclassified 
program, the employee must give notice to the executive director 
of the Minnesota state retirement system within one year of the 
commencement of employment in an unclassified position that is 
not listed in subdivision 1.  Upon receipt of the notice, the 
executive director shall transfer to the employee's account in 
the unclassified program an amount equal to the employer and 
employee contributions with six percent interest to the regular 
plan on the employee's behalf from the commencement of 
employment in the position not listed in subdivision 1 to the 
receipt of the notice by the executive director. 
    Sec. 2.  [ELECTION BY CERTAIN EMPLOYEES.] 
    Notwithstanding the one-year period for electing 
participation in the unclassified program under section 1, an 
employee who moved from a position listed in Minnesota Statutes, 
section 352D.02, subdivision 1, to an unlimited, full-time 
unclassified position not listed there, and who commenced 
employment in the latter position more than one year before the 
effective date of this act, may elect to participate in the 
unclassified program by giving notice to the executive director 
of the Minnesota state retirement system within one year of the 
effective date of this act.  Upon receipt of the notice, the 
executive director shall transfer contributions with six percent 
interest to the regular plan on the employee's behalf to the 
employee's account in the unclassified program, in accordance 
with section 1. 
    Sec. 3.  Minnesota Statutes 1990, section 354A.12, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [OBLIGATION FOR OMITTED SALARY DEDUCTIONS.] If 
the full required contributions are not deducted from the salary 
of a teacher, payment of the shortage in such deductions is the 
sole obligation of the employing unit during the three year 
period following the end of the fiscal year in which the 
shortage occurred.  The shortage is payable by the employing 
unit upon notification of the shortage by the executive director 
of the applicable retirement fund association.  The employing 
unit shall also pay any employer contributions related to the 
shortage.  The amount of the shortage in employee contributions 
and associated employer contributions is payable with interest 
at the rate of six percent per annum, compounded annually, from 
the end of the fiscal year in which the shortage occurred to the 
end of the month in which payment is made and the interest shall 
be credited to the fund.  If the shortage payment and interest 
is not paid by the employing unit within 60 days of 
notification, the executive director shall certify the amount of 
the shortage payment and interest to the commissioner of 
finance, who shall deduct the amount from any state aid or 
appropriation amount applicable to the employing unit.  
    Sec. 4.  [MINNEAPOLIS TEACHERS MEDICAL LEAVE CREDIT.] 
    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 or bylaws to allow basic plan members who are 
granted medical leave of absence by special school district No. 
1, Minneapolis, to receive up to one year service credit of that 
leave in accordance with Minnesota Statutes, section 354A.096. 
    Sec. 5.  [MINNEAPOLIS TEACHERS RETIREE RESUMING SERVICE.] 
    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 or bylaws to provide that any person who is 
retired and receiving a basic program formula retirement annuity 
under the articles of incorporation or bylaws of the 
association, and who has resumed teaching service for the 
special school district No. 1, is entitled to continue to 
receive retirement annuity payments except that annuity payments 
must be reduced in accordance with Minnesota Statutes, section 
354A.31, subdivision 3, if the person's income from teaching 
service is an amount greater than the maximum earnings allowable 
for that age for the continued receipt of full benefit amounts 
monthly under the federal old age, survivors, and disability 
insurance program as set by the Secretary of Health and Human 
Services under United States Code, title 42, section 403.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 5 are effective on July 1, 1991.  Section 3 
applies to omitted or deficient contributions on salary earned 
after June 30, 1988. 
    Presented to the governor May 30, 1991 
    Signed by the governor June 3, 1991, 5:23 p.m.