Office of the Revisor of Statutes
Minnesota Session Laws - 1993, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1993
CHAPTER 307-H.F.No. 574
An act relating to retirement; administrative changes,
age discrimination act compliance, death-while-active
surviving spouse benefit improvements by the Minnesota
state retirement system, the public employees
retirement association, and teachers retirement
association; providing an open appropriation for
payment of state reimbursement for supplemental
retirement benefits paid to volunteer firefighters;
making changes to Minneapolis employees retirement
fund; amending Minnesota Statutes 1992, sections
3A.02, subdivision 1, and by adding a subdivision;
352.01, subdivisions 2a, 2b, and by adding a
subdivision; 352.03, subdivisions 4, 4a, and 6;
352.04, subdivisions 6 and 9; 352.113, subdivisions 2,
4, and 7; 352.115, subdivision 8; 352.12, subdivisions
1, 2, 3, 4, 7, 10, and 13; 352.15, subdivision 1a, and
by adding subdivisions; 352.22, subdivisions 1 and 2;
352.23; 352.85, subdivision 4; 352.93, subdivision 2a;
352.94; 352.95, subdivisions 1, 2, 3, and 5; 352.951;
352.96, subdivisions 3 and 4; 352B.01, subdivisions 3
and 11; 352B.08, subdivisions 1 and 2a; 352B.10,
subdivisions 1, 2, and 5; 352B.101; 352B.105; 352B.11,
subdivision 2; 352C.01; 352C.021; 352C.031; 352C.033;
352C.04; 352C.051; 352C.09; 352D.015, subdivision 4;
352D.02, subdivision 3, and by adding a subdivision;
352D.04, subdivision 1; 352D.05, subdivisions 1, 3,
and 4; 352D.09, subdivision 5, and by adding
subdivisions; 353.01, subdivisions 2, 2a, 2b, 6, 7,
10, 11a, 12, 16, 28, 31, 32, and by adding
subdivisions; 353.017; 353.27, subdivision 7; 353.29,
subdivision 1; 353.32, subdivision 1a; 353.33,
subdivisions 1, 2, 3, 4, 6, 8, 11, and by adding a
subdivision; 353.34, subdivisions 1 and 3; 353.35;
353.37; 353.64, subdivisions 1, 5a, and by adding a
subdivision; 353.656, subdivisions 1, 1a, 3, 5, and by
adding subdivisions; 353A.08, subdivisions 1, 3, and
5; 353A.10, subdivision 4; 353B.11, subdivision 6;
353C.08, subdivisions 1 and 2; 353D.02; 353D.04;
353D.05, subdivision 3; 353D.07, subdivision 2;
354.35; 354.46, subdivisions 1 and 2; 354.48,
subdivisions 3 and 10; 356.302, subdivisions 4 and 6;
356.453; 356.61; 422A.05, subdivisions 1 and 2a;
422A.08, subdivision 5, and by adding a subdivision;
422A.101, subdivision 1; 424A.10, subdivision 3; and
490.124, subdivisions 1 and 4; proposing coding for
new law in Minnesota Statutes, chapter 3A; repealing
Minnesota Statutes 1992, sections 3A.06; 352.01,
subdivision 7; 352.12, subdivision 5; 352.22,
subdivision 9; 352.73; 352B.01, subdivision 2a;
352B.131; 352B.14; 352B.261; 352B.262; 352B.28;
352D.05, subdivision 5; and 353.656, subdivision 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MINNESOTA STATE RETIREMENT SYSTEM
ADMINISTRATIVE LAW CHANGES
Section 1. Minnesota Statutes 1992, section 3A.02,
subdivision 1, is amended to read:
Subdivision 1. [QUALIFICATIONS.] (a) A former legislator
is entitled, upon written application to the director, to
receive a retirement allowance monthly, if the person:
(1) has served at least six full years, without regard to
the application of section 3A.10, subdivision 2, or has served
during all or part of four regular sessions as a member of the
legislature, which service need not be continuous;
(2) has attained the normal retirement age;
(3) has retired as a member of the legislature; and
(4) has made all contributions provided for in section
3A.03, has made payments for past service under subdivision 2,
or has made payments in lieu of contributions under section
3A.031.
(b) For service rendered before the beginning of the 1979
legislative session, but not to exceed eight years of service,
the retirement allowance is an amount equal to five percent per
year of service of that member's average monthly salary. For
service in excess of eight years rendered before the beginning
of the 1979 legislative session, and for service rendered after
the beginning of the 1979 legislative session, the retirement
allowance is an amount equal to 2-1/2 percent per year of
service of that member's average monthly salary.
(c) The retirement allowance accrues beginning with the
first day of the month of receipt of the application, but not
before age 60, and for the remainder of the former legislator's
life, if the former legislator is not serving as a member of the
legislature or as a constitutional officer or commissioner as
defined in section 352C.021, subdivisions 2 and 3. The annuity
shall not begin to accrue prior to retirement as a legislator.
No annuity payment shall be made retroactive for more than 180
days before the date annuity application is filed with the
director.
(d) Any member who has served during all or part of four
regular sessions is considered to have served eight years as a
member of the legislature.
(e) The retirement allowance ceases with the last payment
that accrued to the retired legislator during the retired
legislator's lifetime, except that the surviving spouse, if any,
is entitled to the retirement allowance for the calendar month
in which the retired legislator died.
Sec. 2. [3A.13] [EXEMPTION FROM PROCESS AND TAXATION.]
The provisions of Minnesota Statutes, section 352.15 shall
apply to the legislators retirement plan, chapter 3A.
Sec. 3. Minnesota Statutes 1992, section 352.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee"
includes:
(1) employees of the Minnesota historical society;
(2) employees of the state horticultural society;
(3) employees of the Disabled American Veterans, Department
of Minnesota, Veterans of Foreign Wars, Department of Minnesota,
if employed before July 1, 1963;
(4) employees of the Minnesota crop improvement
association;
(5) employees of the adjutant general who are paid from
federal funds and who are not covered by any federal civilian
employees retirement system;
(6) employees of the state universities employed under the
university activities program;
(7) currently contributing employees covered by the system
who are temporarily employed by the legislature during a
legislative session or any currently contributing employee
employed for any special service as defined in clause (8) of
subdivision 2b;
(8) employees of the armory building commission;
(9) permanent employees of the legislature and persons
employed or designated by the legislature or by a legislative
committee or commission or other competent authority to conduct
a special inquiry, investigation, examination, or installation;
(10) trainees who are employed on a full-time established
training program performing the duties of the classified
position for which they will be eligible to receive immediate
appointment at the completion of the training period;
(11) employees of the Minnesota safety council;
(12) employees of the transit operating division of the
metropolitan transit commission and any employees on authorized
leave of absence from the transit operating division who are
employed by the labor organization which is the exclusive
bargaining agent representing employees of the transit operating
division;
(13) employees of the metropolitan council, metropolitan
parks and open space commission, regional transit board,
metropolitan transit commission, metropolitan waste control
commission, metropolitan sports facilities commission or the
metropolitan mosquito control commission unless excluded or
covered by another public pension fund or plan under section
473.141, subdivision 12, or 473.415, subdivision 3; and
(14) judges of the tax court; and
(15) personnel employed on June 30, 1992, by the University
of Minnesota in the management, operation, or maintenance of its
heating plant facilities, whose employment transfers to an
employer assuming operation of the heating plant facilities, so
long as the person is employed at the University of Minnesota
heating plant by that employer or by its successor organization.
(b) Employees specified in paragraph (a), clause (15), are
included employees under paragraph (a) providing that employer
and employee contributions are made in a timely manner in the
amounts required by section 352.04. Employee contributions must
be deducted from salary. Employer contributions are the sole
obligation of the employer assuming operation of the University
of Minnesota heating plant facilities or any successor
organizations to that employer.
Sec. 4. Minnesota Statutes 1992, section 352.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not
include:
(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 for membership in the state
teachers retirement association except employees of the
department of education who have chosen or may choose 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 who are assigned to permanent peacetime
duty and who under 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) receivers, jurors, notaries public, and court employees
who are not in the judicial branch as defined in section 43A.02,
subdivision 25, except 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) 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 $5,000 or less per year, or, if they
are legally prohibited from serving more than two consecutive
terms and their total service is required by law to be less than
ten three years; and the board of managers of the state
agricultural society and its treasurer unless the treasurer is
also its full-time secretary;
(14) state troopers;
(15) temporary employees of the Minnesota state fair
employed on or after July 1 for a period not to extend beyond
October 15 of that year; and persons employed at any time by the
state fair administration for special events held on the
fairgrounds;
(16) emergency employees in the classified service; except
that if an emergency employee, within the same pay period,
becomes a provisional or probationary employee on other than a
temporary basis, the employee shall be considered a "state
employee" retroactively to the beginning of the pay period;
(17) persons described in section 352B.01, subdivision 2,
clauses (2) to (5);
(18) temporary employees in the classified service,
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 seasonal help in the
classified service employed by the department of revenue;
(19) trainee employees, except those listed in subdivision
2a, clause (10);
(20) persons whose compensation is paid on a fee basis;
(21) 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;
(22) 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;
(23) chaplains and nuns who are excluded from coverage
under the federal old age, survivors, disability, and health
insurance program for the performance of service as specified in
United States Code, title 42, section 410(a)(8)(A), as amended,
if no irrevocable election of coverage has been made under
section 3121(r) of the Internal Revenue Code of 1954, as
amended;
(24) examination monitors employed by departments,
agencies, commissions, and boards to conduct examinations
required by law;
(25) members of appeal tribunals, exclusive of the chair,
to which reference is made in section 268.10, subdivision 4;
(26) persons appointed to serve as members of fact-finding
commissions or adjustment panels, arbitrators, or labor referees
under chapter 179;
(27) temporary employees employed for limited periods under
any state or federal program for training or rehabilitation
including persons employed for limited periods from areas of
economic distress except skilled and supervisory personnel and
persons having civil service status covered by the system;
(28) full-time students employed by the Minnesota
historical society intermittently during part of the year and
full-time during the summer months;
(29) temporary employees, appointed for not more than six
months, of the metropolitan council and of any of its statutory
boards, if the board members are appointed by the metropolitan
council;
(30) persons employed in positions designated by the
department of employee relations as student workers;
(31) 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 after appointment that coverage is
desired;
(32) members of trades employed by the metropolitan waste
control commission with trade union pension plan coverage under
a collective bargaining agreement first employed after June 1,
1977;
(33) (32) persons employed in subsidized on-the-job
training, work experience, or public service employment as
enrollees under the federal Comprehensive Employment and
Training Act 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;
(34) (33) off-duty peace officers while employed by the
metropolitan transit commission under section 629.40,
subdivision 5, or comparable statutory authority; and
(35) (34) persons who are employed as full-time police
officers by the metropolitan transit commission and as police
officers are members of the public employees police and fire
fund;
(35) 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; and
(36) foreign citizens with a work permit of less than three
years, or an H-1b/JV visa valid for less than three years of
employment, unless notice of extension is supplied which allows
them to work for three or more years as of the date the
extension is granted, in which case they are eligible for
coverage from the date extended.
Sec. 5. Minnesota Statutes 1992, section 352.03,
subdivision 6, is amended to read:
Subd. 6. [DUTIES AND POWERS OF EXECUTIVE DIRECTOR.] The
management of the system is vested in the director, who is the
executive and administrative head of the system. The director
shall be advisor to the board on matters pertaining to the
system and shall also act as the secretary of the board. The
director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to
carry out this chapter;
(3) establish and maintain an adequate system of records
and accounts following recognized accounting principles and
controls;
(4) designate an assistant director with the approval of
the board;
(5) appoint any employees, both permanent and temporary,
that are necessary to carry out the provisions of this chapter;
(6) organize the work of the system as the director deems
necessary to fulfill the functions of the system, and define the
duties of its employees and delegate to them any powers or
duties, subject to the control of the director and under
conditions the director may prescribe. Appointments to exercise
delegated power must be by written order and shall be filed with
the secretary of state;
(7) with the advice and consent of the board, contract for
the services of an approved actuary, professional management
services, and any other consulting services as necessary and fix
the compensation for those services. The contracts are not
subject to competitive bidding under chapter 16B. Any approved
actuary retained by the executive director shall function as the
actuarial advisor of the board and the executive director, and
may perform actuarial valuations and experience studies to
supplement those performed by the actuary retained by the
legislative commission on pensions and retirement. Any
supplemental actuarial valuations or experience studies shall be
filed with the executive director of the legislative commission
on pensions and retirement. Professional management services
may not be contracted for more often than once in six years.
Copies of professional management survey reports must be
transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the legislative reference
library as provided by section 3.195, to the executive director
of the commission and to the legislative auditor at the time as
reports are furnished to the board. Only management firms
experienced in conducting management surveys of federal, state,
or local public retirement systems are qualified to contract
with the director;
(8) with the advice and consent of the board provide
in-service training for the employees of the system;
(9) make refunds of accumulated contributions to former
state employees and to the designated beneficiary, surviving
spouse, legal representative, or next of kin of deceased state
employees or deceased former state employees, as provided in
this chapter;
(10) determine the amount of the annuities and disability
benefits of employees covered by the system and authorize
payment of the annuities and benefits beginning as of the dates
on which the annuities and benefits begin to accrue, in
accordance with the provisions of this chapter;
(11) pay annuities, refunds, survivor benefits, salaries,
and necessary operating expenses of the system;
(12) certify funds available for investment to the state
board of investment;
(13) with the advice and approval of the board request the
state board of investment to sell securities when the director
determines that funds are needed for the system;
(14) prepare and submit to the board and the legislature an
annual financial report covering the operation of the system, as
required by section 356.20;
(15) prepare and submit biennial and quarterly annual
budgets to the board and with the approval of the board submit
the budgets to the department of finance; and
(16) with the approval of the board, perform other duties
required to administer the retirement and other provisions of
this chapter and to do its business.
Sec. 6. Minnesota Statutes 1992, section 352.04,
subdivision 6, is amended to read:
Subd. 6. [QUASI-STATE AGENCIES; EMPLOYER CONTRIBUTIONS.]
For those of their employees who are covered by the system, the
state horticultural society, the Disabled American Veterans,
Department of Minnesota, Veterans of Foreign Wars, Department of
Minnesota, the Minnesota crop improvement association, the
Minnesota historical society, the armory building commission,
the Minnesota safety council, the Metropolitan council and any
of its statutory boards, the employer of persons described in
section 352.01, subdivision 2a, paragraph (a), clause (15), and
any other agency employing employees covered by this system,
respectively, shall also pay into the retirement fund the amount
required by subdivision 3.
Sec. 7. Minnesota Statutes 1992, section 352.04,
subdivision 9, is amended to read:
Subd. 9. [ERRONEOUS DEDUCTIONS, CANCELED WARRANTS.] (a)
Deductions taken from the salary of an employee for the
retirement fund in error must, upon discovery and verification
by the department making the deduction, be refunded to the
employee.
(b) If a deduction for the retirement fund is taken from a
salary warrant or check, and the check is canceled or the amount
of the warrant or check returned to the funds of the department
making the payment, the sum deducted, or the part of it required
to adjust the deductions, must be refunded to the department or
institution if the department applies for the refund on a form
furnished by the director. The department's payments must
likewise be refunded to the department.
(c) Employee deductions and employer contributions taken in
error may be directly transferred, without interest, to another
Minnesota public employee retirement fund listed in section
356.30, subdivision 3, by which the employee is actually covered.
Sec. 8. Minnesota Statutes 1992, section 352.113,
subdivision 2, is amended to read:
Subd. 2. [APPLICATION; ACCRUAL OF BENEFITS.] An employee
making claim for a total and permanent disability benefit, or
someone acting on behalf of the employee upon proof of authority
satisfactory to the director, shall file a written application
for benefits in the office of the system. The application must
be in a form and manner prescribed by the executive director.
The benefit shall begin to accrue the day following the start of
disability or the day following the last day paid, whichever is
later, but not earlier than 60 180 days before the date the
application is filed with the director.
Sec. 9. Minnesota Statutes 1992, section 352.113,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL EXAMINATIONS; AUTHORIZATION FOR PAYMENT
OF BENEFIT.] An applicant shall provide medical evidence to
support an application for total and permanent disability. The
director shall have the employee examined by at least one
additional licensed physician designated by the medical
adviser. The physicians shall make written reports to the
director concerning the employee's disability including medical
opinions as to whether the employee is permanently and totally
disabled within the meaning of section 352.01, subdivision 17.
The director shall also obtain written certification from the
employer stating whether the employment has ceased or whether
the employee is on sick leave of absence because of a disability
that will prevent further service to the employer and as a
consequence the employee is not entitled to compensation from
the employer. The medical adviser shall consider the reports of
the physicians and any other evidence supplied by the employee
or other interested parties. If the medical adviser finds the
employee totally and permanently disabled, the adviser shall
make appropriate recommendation to the director in writing
together with the date from which the employee has been totally
disabled. The director shall then determine if the disability
occurred within 180 days of filing the application, while still
in the employment of the state, and the propriety of authorizing
payment of a disability benefit as provided in this section. A
terminated employee may apply for a disability benefit within
180 days of termination as long as the disability occurred while
in the employment of the state. The employee must be on
approved leave of absence from the employer to be eligible to
apply for a total and permanent disability benefit, but the fact
that an employee is placed on leave of absence without
compensation because of disability does not bar that employee
from receiving a disability benefit. Unless payment of a
disability benefit has terminated because the employee is no
longer totally disabled, or because the employee has reached
normal retirement age as provided in this section, the
disability benefit shall cease with the last payment received by
the disabled employee or which had accrued during the lifetime
of the employee unless there is a spouse surviving; in that
event the surviving spouse is entitled to the disability benefit
for the calendar month in which the disabled employee died.
Sec. 10. Minnesota Statutes 1992, section 352.113,
subdivision 7, is amended to read:
Subd. 7. [PARTIAL REEMPLOYMENT.] If the disabled employee
resumes a gainful occupation from which earnings are less than
the employee's salary at the date of disability or the salary
currently paid for similar positions, the director shall
continue the disability benefit in an amount which when added to
earnings does not exceed the salary at the date of disability or
the salary currently paid for similar positions, whichever is
lower, provided the disability benefit in this case does not
exceed the disability benefit originally allowed. Deductions
for the retirement fund must not be taken from the salary of a
disabled employee who is receiving a disability benefit as
provided in this subdivision.
Sec. 11. Minnesota Statutes 1992, section 352.115,
subdivision 8, is amended to read:
Subd. 8. [ACCRUAL OF ANNUITY.] State employees shall apply
for an annuity. The application must not be made more than 60
90 days before the time the employee is eligible to retire by
reason of both age and service requirements. If the director
determines an applicant for annuity has fulfilled the legal
requirements for an annuity, the director shall authorize the
annuity payment in accordance with this chapter and payment must
be made as authorized. An annuity shall begin to accrue no
earlier than 60 180 days before the date the application is
filed with the director, but not before the day following the
termination of state service or before the day the employee is
eligible to retire by reason of both age and service
requirements. The retirement annuity shall cease with the last
payment which had accrued during the lifetime of the retired
employee unless an optional annuity provided in section 352.116,
subdivision 3, had been selected and had become payable. The
joint and last survivor annuity shall cease with the last
payment received by the survivor during the lifetime of the
survivor. If a retired employee had not selected an optional
annuity, or a survivor annuity is not payable under the option,
and a spouse survives, the spouse is entitled only to the
annuity for the calendar month in which the retired employee
died. If an optional annuity is payable after the death of the
retired employee, the survivor is entitled to the annuity for
the calendar month in which the retired employee died.
Sec. 12. Minnesota Statutes 1992, section 352.12,
subdivision 1, is amended to read:
Subdivision 1. [DEATH BEFORE TERMINATION OF SERVICE.] If
an employee dies before state service has terminated and neither
a survivor annuity nor a reversionary annuity is payable, or if
a former employee who has sufficient service credit to be
entitled to an annuity dies before the benefit has become
payable, the director shall make a refund to the last designated
beneficiary or, if there is none, to the surviving spouse or, if
none, to the employee's surviving children in equal shares or,
if none, to the employee's surviving parents in equal shares or,
if none, to the representative of the estate in an amount equal
to the accumulated employee contributions plus interest at the
rate of six percent per annum compounded annually. Interest
must be computed to the first day of the month in which the
refund is processed and based on fiscal year balances. Upon the
death of an employee who has received a refund that was later
repaid in full, interest must be paid on the repaid refund only
from the date of repayment. If the repayment was made in
installments, interest must be paid only from the date
installment payments began. The designated beneficiary,
surviving spouse, or representative of the estate of an employee
who had received a disability benefit is not entitled to
interest upon any balance remaining to the decedent's credit in
the fund at the time of death, unless death occurred before any
payment could be negotiated.
Sec. 13. Minnesota Statutes 1992, section 352.12,
subdivision 3, is amended to read:
Subd. 3. [REFUND OF $1,500 $3,000 OR LESS.] If a state
employee or former state employee dies without having designated
a beneficiary, or if the beneficiary should die before applying
for refund of the sum to the credit of the deceased employee or
former employee, and there is no surviving spouse, and the
amount of the refund does not exceed $1,500 $3,000 exclusive of
interest, the director may refund the amount to the deceased or
former employee's next of kin. The amount may be refunded 90
days after the date of death of the employee or former employee
in the absence of probate proceedings, and upon proper
application. The next of kin must be determined by the director
with the concurrence of the board, to be entitled to the refund
consistent with the laws of descent. A determination and
payment without notice are conclusive and final and are a bar
against claims of all other persons.
Sec. 14. Minnesota Statutes 1992, section 352.12,
subdivision 4, is amended to read:
Subd. 4. [REFUND TO MINOR BENEFICIARY.] If an employee or
former employee dies having named as a beneficiary a person who
is a minor at the time of the application for refund, and the
amount of the refund does not exceed $1,500 $3,000, exclusive of
interest, the director in the absence of guardianship or probate
proceedings may make payment to the natural guardian having
custody of the minor beneficiary, for the benefit of the child.
Any annuity, retirement allowance, or disability benefit accrued
at the time of death of a disabled or retired employee, payable
to a minor beneficiary, may similarly be paid. Payment is a bar
to recovery by any other person or persons.
Sec. 15. Minnesota Statutes 1992, section 352.12,
subdivision 7, is amended to read:
Subd. 7. [ABSENCE OF OPTIONAL OR REVERSIONARY ANNUITY.]
Upon the death of a retired employee who selected neither an
optional annuity or a reversionary annuity, a refund must be
paid in an amount equal to the excess, if any, of the
accumulated contributions to the credit of the retired employee
immediately before retirement in excess of the sum of (1) all
annuities, retirement allowances, and disability benefits that
had been received and had accrued in the lifetime of the
decedent, and (2) the annuity, retirement allowance, or
disability benefit if applicable not negotiated, payable to the
surviving spouse under section 352.115, subdivision 8, or
352.113, subdivision 4, for the calendar month in which the
retired employee died. The refund must be paid to the named
beneficiary or, if there be none, to the surviving spouse or, if
none, to the employee's surviving children in equal shares or,
if none, to the employee's surviving parents in equal shares or,
if none, to the representative of the estate.
Sec. 16. Minnesota Statutes 1992, section 352.12,
subdivision 10, is amended to read:
Subd. 10. [DEATH OF BENEFICIARY BEFORE REFUND.] If the
last designated beneficiary or beneficiaries and the surviving
spouse of a (1) deceased employee, (2) former employee, or (3)
retired employee, dies before receiving a refund of the sum to
the credit of the deceased employee, former employee, or retired
employee at the time of death, the refund must be made to the
estate of the deceased employee or as provided in subdivision 3
if the amount of the refund does not exceed $1,500 $3,000
exclusive of interest.
Sec. 17. Minnesota Statutes 1992, section 352.12,
subdivision 13, is amended to read:
Subd. 13. [REFUND, BENEFICIARY.] If upon death a former
employee has in possession a commissioner of finance's warrant
which does not exceed $500 $1,000 covering a refund of
accumulated contributions in the retirement fund, in the absence
of probate proceedings the commissioner of finance's warrant may
be returned for cancellation, and then upon application made by
the last designated beneficiary of the deceased former employee,
refund of the accumulated contributions must be paid to the last
designated beneficiary. Payments made under this subdivision
are a bar to recovery by any other person or persons.
Sec. 18. Minnesota Statutes 1992, section 352.15,
subdivision 1a, is amended to read:
Subd. 1a. [AUTOMATIC DEPOSITS.] The executive director may
pay an annuity, benefit, or refund to a banking institution,
qualified under chapter 48, that is trustee for a person
eligible to receive the annuity, benefit, or refund. Upon the
request of a retired, disabled, or former employee, the
executive director may mail the annuity, benefit, or refund
check to a banking institution, savings association, or credit
union for deposit to the employee's account or joint account
with a spouse. The board of directors may prescribe the
conditions under which payments will be made.
Sec. 19. Minnesota Statutes 1992, section 352.85,
subdivision 4, is amended to read:
Subd. 4. [ELECTION OF COVERAGE.] To be covered by Laws
1980, chapter 607 section 352.85, any employee of the department
of military affairs, described in subdivision 1, who is employed
on July 1, 1980, or is first employed after July 1, 1980, must
file a notice with the executive director of the system on a
form prescribed by the executive director stating whether or not
the employee elects to be covered. Notice must be filed by
August 1, 1980, or within 30 90 days of employment, whichever is
later. Elections are irrevocable during any period of covered
employment.
Sec. 20. Minnesota Statutes 1992, section 352.93,
subdivision 2a, is amended to read:
Subd. 2a. [EARLY RETIREMENT.] Any covered correctional
employee, or former employee if service ended after June 30,
1989, who becomes at least 50 years old and who has at least
three years of allowable service is entitled upon application to
a retirement annuity equal to the normal annuity calculated
under subdivision 2, reduced so that the reduced annuity is the
actuarial equivalent of the annuity that would be payable if the
employee deferred receipt of the annuity from the day the
annuity begins to accrue to age 55.
Sec. 21. Minnesota Statutes 1992, section 352.94, is
amended to read:
352.94 [AUGMENTATION FOR EMPLOYEES WITH REGULAR GENERAL AND
CORRECTIONAL SERVICE.]
Subdivision 1. [CHANGE FROM REGULAR TO CORRECTIONAL
SERVICE.] An employee who becomes a covered by the correctional
employee plan after serving as a regular general plan covered
employee, or becomes covered by the general plan after serving
as a correctional plan covered employee, is covered under
section 352.72, subdivision 2, with respect to the regular
service.
Subd. 2. [CHANGE FROM CORRECTIONAL TO REGULAR SERVICE.] An
employee who becomes a regular employee after serving as a
correctional employee is not covered under section 352.72,
subdivision 2, with respect to correctional service.
Sec. 22. Minnesota Statutes 1992, section 352.95,
subdivision 3, is amended to read:
Subd. 3. [APPLYING FOR BENEFITS; ACCRUAL.] No application
for disability benefits shall be made until after the last day
physically on the job. The disability benefit shall begin to
accrue the day following the last day for which the employee is
paid sick leave or annual leave but not earlier than 60 180 days
before the date the application is filed.
Sec. 23. Minnesota Statutes 1992, section 352.951, is
amended to read:
352.951 [APPLICABILITY OF GENERAL LAW.]
Except as otherwise provided, this chapter applies to
covered correctional employees, military affairs personnel
covered under section 352.85, and transportation department
pilots covered under section 352.86.
Sec. 24. Minnesota Statutes 1992, section 352B.08,
subdivision 1, is amended to read:
Subdivision 1. [WHO IS ELIGIBLE; WHEN TO APPLY; ACCRUAL.]
Every member who is credited with three or more years of
allowable service is entitled to separate from state service and
upon becoming 55 50 years old, is entitled to receive a life
annuity, upon separation from state service. Members shall
apply for an annuity in a form and manner prescribed by the
executive director. No application may be made more than 60 90
days before the date the member is eligible to retire by reason
of both age and service requirements. An annuity begins to
accrue no earlier than 90 180 days before the date the
application is filed with the executive director.
Sec. 25. Minnesota Statutes 1992, section 352B.08,
subdivision 2a, is amended to read:
Subd. 2a. [EARLY RETIREMENT.] Any member who has become at
least 50 years old, or former member if service ended after June
30, 1989, and who has at least three years of allowable service
is entitled upon application to a retirement annuity equal to
the normal annuity calculated under subdivision 2, reduced so
that the reduced annuity is the actuarial equivalent of the
annuity that would be payable if the member deferred receipt of
the annuity from the day the annuity begins to accrue to age 55.
Sec. 26. Minnesota Statutes 1992, section 352B.101, is
amended to read:
352B.101 [APPLICATION FOR DISABILITY BENEFIT.]
A member claiming a disability benefit must file a written
application for benefits in the office of the system in a form
and manner prescribed by the executive director. The member
shall provide medical evidence to support the application. The
benefit begins to accrue the day following the start of
disability or the day following the last day for which the
member was paid, whichever is later, but not earlier than 90 180
days before the date the application is filed with the executive
director.
Sec. 27. Minnesota Statutes 1992, section 352C.01, is
amended to read:
352C.01 [LEGISLATIVE FINDING AND INTENT.]
The legislature finds that service to Minnesota in the
capacity of a constitutional officer or commissioner as defined
in section 352C.021 constitutes a unique contribution to the
state and that such service is dissimilar to any other public
employment. The legislature further finds that service as a
constitutional officer or commissioner for a period of eight
years or longer deprives the individual so serving of normal
opportunities to establish retirement benefits in a usual
vocational pursuit and justifies adoption of special retirement
provisions. The provisions of this chapter are intended by the
legislature to reflect the unique nature of service as a
constitutional officer or commissioner and to have due regard
for the unusual disruption of normal retirement planning that
such service entails.
Sec. 28. Minnesota Statutes 1992, section 352C.021, is
amended to read:
352C.021 [DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of this chapter, the
following terms shall have the meanings given to them unless the
language or context clearly indicates that a different meaning
is intended.
Subd. 2. [CONSTITUTIONAL OFFICER.] "Constitutional
officer" means a person who was duly elected and qualified and
is serving as governor, lieutenant governor, attorney general,
secretary of state, state auditor or state treasurer of the
state of Minnesota.
Subd. 3. [COMMISSIONER.] "Commissioner" means a person who
was duly elected and qualified and is serving as an elected
member of the public utilities commission of the state of
Minnesota.
Subd. 4. [FORMER CONSTITUTIONAL OFFICER OR COMMISSIONER.]
"Former constitutional officer or commissioner" means a person
who has ceased to be a constitutional officer or commissioner
subsequent to April 21, 1976 for any reason, including but not
limited to the expiration of the term of office for which the
person was elected, retirement or death.
Subd. 5. 4. [SURVIVING SPOUSE.] "Surviving spouse" means
the unmarried spouse of a deceased constitutional officer or
commissioner or former constitutional officer or commissioner.
Subd. 6. 5. [DEPENDENT CHILD.] "Dependent child" means any
natural or adopted child of a deceased constitutional officer or
commissioner or a deceased former constitutional officer or
commissioner who is under the age of 18, or who is under the age
of 22 and is a full-time student, and who in either case is
unmarried and was actually dependent for more than one-half of
the child's support upon the constitutional officer or
commissioner or the former constitutional officer or
commissioner for a period of least 90 days immediately prior to
the death of the constitutional officer or commissioner or the
former constitutional officer or commissioner. The term shall
also include a posthumous child of the constitutional officer or
commissioner or the former constitutional officer or
commissioner.
Subd. 7. 6. [ALLOWABLE SERVICE.] "Allowable service" means
any years or months of service as a constitutional officer or as
a commissioner, for which service if the person made the
contributions required by section 352C.09 on a current basis.
The service need not be continuous. For any constitutional
officer or commissioner or former constitutional officer or
commissioner in office on or before July 1, 1967, allowable
service shall include any service as a constitutional officer or
commissioner prior to July 1, 1967, notwithstanding that the
person did not make concurrent contributions as required by
section 352C.09.
Subd. 8. 7. [DIRECTOR.] "Director" means the executive
director of the Minnesota state retirement system.
Sec. 29. Minnesota Statutes 1992, section 352C.031, is
amended to read:
352C.031 [RETIREMENT ALLOWANCE.]
Subdivision 1. [UNREDUCED RETIREMENT ALLOWANCE.] Upon
separation from service, a former constitutional officer or
commissioner who has attained the age of at least 62 years and
who has at least eight years of allowable service is entitled
upon making written application on forms supplied by the
director to a normal retirement allowance.
Subd. 2. [REDUCED RETIREMENT ALLOWANCE.] Upon separation
from service, a former constitutional officer or commissioner
who has attained the age of at least 60 years and who has at
least eight years of allowable service is entitled upon making
written application on forms supplied by the director to a
retirement allowance in an amount equal to a normal retirement
allowance reduced by one-half of one percent for each month that
the former constitutional officer or commissioner is under age
62.
Subd. 3. [AVERAGE SALARY.] Average salary for purposes of
calculating the normal retirement allowance pursuant to
subdivision 4 shall mean the average of the highest five
successive years of salary upon which contributions have been
made pursuant to section 352C.09.
Subd. 4. [RETIREMENT ALLOWANCE FORMULA.] The average
salary multiplied by 2-1/2 percent for each year of allowable
service and pro rata for completed months less than a full year
shall determine the amount of the normal retirement allowance.
Subd. 5. [BENEFIT ACCRUAL AND TERMINATION.] The benefit
shall begin to accrue the first day of the month in which the
application is received by the director but in no event earlier
than the day following the termination of service or the
attainment of the age required to receive such benefit,
whichever is later. Thereafter, benefits shall be paid on the
first day of each calendar month for that month. The benefit
shall cease with the payment for the month in which the retired
constitutional officer or commissioner died.
Subd. 6. [PAYMENT OF RETIREMENT ALLOWANCES.] Retirement
allowances payable pursuant to this section shall be paid
monthly by the executive director of the Minnesota state
retirement system.
Sec. 30. Minnesota Statutes 1992, section 352C.033, is
amended to read:
352C.033 [DEFERRED ANNUITIES AUGMENTATION.]
The deferred retirement allowance for any former
constitutional officer or commissioner shall be augmented as
provided in this section. The required reserves applicable to
the deferred retirement allowance, determined as of the date the
retirement allowance begins to accrue using the appropriate
mortality table and an interest assumption of five percent,
shall be augmented from the first of the month following
termination of service as a constitutional officer or
commissioner, or January 1, 1979, whichever is later, to the
first day of the month in which the annuity begins to accrue, at
the rate of five percent per annum compounded annually until
January 1, 1981, and thereafter at the rate of three percent per
annum compounded annually until January 1 of the year in which
the former constitutional officer or commissioner attains age
55. From that date to the effective date of retirement, the
rate is five percent compounded annually.
Sec. 31. Minnesota Statutes 1992, section 352C.04, is
amended to read:
352C.04 [SPOUSE'S AND DEPENDENT CHILDREN'S SURVIVOR
BENEFITS.]
Subdivision 1. [SURVIVING SPOUSE BENEFIT.] Upon the death
of a constitutional officer or commissioner while actively
serving in office, or a former constitutional officer or
commissioner with at least eight years of allowable service, the
surviving spouse is entitled to a survivor benefit in the amount
of one-half of the retirement allowance of the constitutional
officer or commissioner or the former constitutional officer or
commissioner computed as though the constitutional officer or
commissioner or the former constitutional officer or
commissioner were at least age 62 on the date of death and based
upon the attained allowable service or eight years, whichever is
greater. The augmentation provided in section 352C.033, if
applicable, shall be applied to the month of death. Upon the
death of a former constitutional officer or commissioner
receiving a retirement allowance, the surviving spouse shall be
entitled to one-half of the amount of the retirement allowance
being paid to the former constitutional officer or commissioner
as of the date of death. The benefit shall be paid to a
surviving spouse eligible therefor during the remainder of the
spouse's natural life.
Subd. 2a. [SURVIVING DEPENDENT CHILD BENEFIT.] Upon the
death of a constitutional officer or commissioner while serving
in office, or a former constitutional officer or commissioner
with at least eight years of allowable service, each dependent
child shall be paid a survivor benefit in the following amount:
First dependent child, a monthly benefit which equals 25 percent
of the monthly retirement allowance of the constitutional
officer or commissioner computed as though the constitutional
officer or commissioner or the former constitutional officer or
commissioner were at least age 62 on the date of death and based
upon the attained allowable service or eight years, whichever is
greater; for each additional dependent child or a monthly
benefit which equals 12-1/2 percent of the monthly retirement
allowance of the constitutional officer or commissioner or the
former constitutional officer or commissioner computed as in the
case of the first child; but the total amount paid to the
surviving spouse and dependent children shall not exceed in any
one month 100 percent of the monthly allowance of the
constitutional officer or commissioner or the former
constitutional officer or commissioner computed as in the case
of the first child. The augmentation provided in subdivision 1,
if applicable, shall be applied to the month of death. Upon the
death of a former constitutional officer or commissioner
receiving a retirement allowance, the surviving dependent child
shall be entitled to the applicable percentage of the amount of
the retirement allowance being paid to the former constitutional
officer or commissioner as of the date of death. The payments
for dependent children shall be made to the surviving spouse or
the guardian of the estate of the dependent child, if there is
one. A posthumous child qualifies as a dependent child for
benefits provided herein from the date of its birth.
Subd. 3. [PAYMENT INTERVAL.] Spouse's and dependent
children's survivor benefits, payable under this section, shall
be paid monthly by the executive director of the Minnesota state
retirement system.
Subd. 4. [APPLICATION FOR SURVIVOR BENEFITS.] A surviving
spouse or a guardian of the estate of the dependent child or
children entitled to the payment of benefits under this section
shall file an application for the benefit with the director, and
payment shall commence as of the first day of the month next
following the filing of the application and shall be retroactive
to the first of the month following the death of the
constitutional officer or commissioner or the former
constitutional officer or commissioner; provided, however, that
no payment shall be retroactive for more than 12 months prior to
the month in which the application is filed with the director.
Such benefits shall be paid on the first day of each calendar
month for that month. The surviving spouse benefit shall cease
with the payment for the month in which the surviving spouse
dies. The dependent child's benefit shall cease with the
payment for the month in which the child no longer qualifies for
payment as a dependent child.
Sec. 32. Minnesota Statutes 1992, section 352C.051, is
amended to read:
352C.051 [COVERAGE BY MORE THAN ONE RETIREMENT SYSTEM OR
ASSOCIATION.]
Subdivision 1. [ENTITLEMENT TO ANNUITY; LEGISLATIVE
SERVICE.] Any constitutional officer or commissioner who has
been a member of the legislature with service credited pursuant
to chapter 3A shall be entitled when qualified to a retirement
allowance from the legislator's retirement plan and the elective
state officers plan if the total allowable service for which the
person has credit in the two plans totals eight or more years,
provided that no portion of the allowable service upon which the
retirement allowance from one plan is based, is again used in
the computation for benefits from the other plan. The
retirement allowance from each plan shall be determined by the
appropriate provisions of the law governing each plan, except
that the requirement that a person must have at least eight
years of allowable service in the respective plan shall not
apply for purposes of this section, provided that the aggregate
service in the two plans equals eight or more years. The
augmentation of deferred annuities provided in sections 3A.02,
subdivision 4, and 352C.033, shall apply to the retirement
allowances accruing hereunder.
Subd. 2. [ENTITLEMENT TO ANNUITY; PUBLIC RETIREMENT
SERVICE.] Any constitutional officer or commissioner 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 fire fund, or the teachers retirement
association, or the Minneapolis employees retirement fund, 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
retirement benefits for police and firefighters, shall be
entitled when qualified to an annuity from each fund if the
person's total allowable service credit in all funds or in any
two of these funds totals ten eight 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. The annuity from each fund
shall be determined by the appropriate provisions of the law
governing each fund, except that the requirement that a person
must have at least ten eight years allowable service in the
respective system 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 eight or more years. The
augmentation of deferred annuities provided in section 352C.033
shall apply to the annuities accruing hereunder.
Subd. 3. [REFUND REPAYMENT.] Any former constitutional
officer or commissioner who has received a refund as provided in
section 352C.09, subdivision 2, who is a currently contributing
member of a retirement fund specified or enumerated in
subdivision 1 or 2, may repay the refund to the elective state
officers retirement plan, with interest at an annual rate of 8.5
percent compounded annually.
Sec. 33. Minnesota Statutes 1992, section 352C.09, is
amended to read:
352C.09 [CONTRIBUTIONS.]
Subdivision 1. Every constitutional officer or
commissioner shall contribute eight percent of total salary
beginning the first full pay period after July 1, 1976, and nine
percent of total salary beginning the first full pay period
after January 1, 1979, by payroll deduction, to be paid into the
state treasury and deposited in the general fund. In case of
retirement any unpaid deductions shall be deducted from any
retirement allowance that becomes payable. All deductions and
payments, if any, in lieu of deductions are to be paid into the
state treasury and deposited in the general fund. It shall be
the duty of the director to record the contributions of each
constitutional officer or commissioner and credit such
contribution to such officer's or commissioner's account.
Subd. 2. (1) Any person who has made contributions
pursuant to subdivision 1 who is no longer a constitutional
officer or commissioner is entitled to receive upon application
to the director a refund of all contributions credited to the
individual's account with interest at the rate of six percent
per annum compounded annually.
(2) The refund of contributions as provided in clause (1)
above terminates all rights of a former constitutional officer
or commissioner or survivors thereof under the provisions of
this chapter. Should the former constitutional officer or
commissioner again hold such office after having taken a refund
as provided above, the former officer or commissioner shall be
considered a new member and may reinstate the rights and credit
for service forfeited provided all refunds previously taken are
repaid with interest at an annual rate of 8.5 percent compounded
annually.
(3) No person shall be required to apply for or accept a
refund.
(4) The provisions of section 352.15 shall apply to the
elective state officers retirement plan, chapter 352C.
Sec. 34. Minnesota Statutes 1992, section 352D.015,
subdivision 4, is amended to read:
Subd. 4. "Regular General fund" means the state employees
retirement fund except the moneys for the unclassified program.
Sec. 35. Minnesota Statutes 1992, section 352D.04,
subdivision 1, is amended to read:
Subdivision 1. (a) An employee exercising an option to
participate in the retirement program provided by this chapter
may elect to purchase shares in one or a combination of the
income share account, the growth share account, the money market
account, the bond market account, the fixed interest account, or
the common stock index account established in section 11A.17.
The employee may elect to participate in one or more of the
investment accounts in the fund by specifying, on a form
provided by the executive director, the percentage of the
employee's contributions provided in subdivision 2 to be used to
purchase shares in each of the accounts.
(b) Twice in any calendar year, A participant may indicate
in writing on forms provided by the Minnesota state retirement
system a choice of options for subsequent purchases of shares.
Until a different written indication is made by the participant,
the executive director shall purchase shares in the supplemental
fund as selected by the participant. If no initial option is
chosen, 100 percent income shares must be purchased for a
participant. A change in choice of investment option is
effective no later than the first pay date first occurring after
30 days following the receipt of the request for a change.
(c) One month before the start of a new guaranteed
investment contract, a participant or former participant may
elect to transfer all or a portion of the participant's shares
previously purchased in the income share, growth share, common
stock index, bond market, or money market accounts to the new
guaranteed investment contract in the fixed interest account.
Upon expiration of a guaranteed investment contract, the
participant's shares attributable to that contract must be
transferred to a new guaranteed investment contract unless the
executive director is otherwise directed by the participant.
Shares in the fixed interest account may not be withdrawn from
the fund or transferred to another account until the guaranteed
investment contract has expired, unless the participant
qualifies for withdrawal under section 352D.05 or for benefit
payments under sections 352D.06 to 352D.075.
(d) Twice in any calendar year A participant or former
participant may also change the investment options selected for
all or a portion of the participant's shares previously
purchased in accounts other than the fixed interest account.
Changes in investment options for the participant's shares must
be effected as soon as cash flow to an account practically
permits, but not later than six months after the requested
change.
Sec. 36. Minnesota Statutes 1992, section 352D.05,
subdivision 1, is amended to read:
Subdivision 1. Except as authorized by section 352D.06, No
withdrawal of shares shall be permitted prior to termination of
covered employment.
Sec. 37. Minnesota Statutes 1992, section 352D.05,
subdivision 3, is amended to read:
Subd. 3. Thirty days After termination of covered
employment or at any time thereafter, a participant is entitled,
upon application, to withdraw the cash value of the
participant's total shares or leave such shares on deposit with
the supplemental retirement fund. Shares not withdrawn must
remain on deposit with the supplemental retirement fund until
the former participant becomes at least 55 years old, and
applies for an annuity under section 352D.06, subdivision 1.
Sec. 38. Minnesota Statutes 1992, section 352D.09,
subdivision 5, is amended to read:
Subd. 5. If the beneficiary, surviving spouse or estate
has not made application for benefits within ten years after the
date of death of a participant the value of the shares shall be
appropriated to the regular fund and provisions of section
352.12, subdivision 12 shall govern. If a former participant
fails to make a claim for benefits within five years after
termination of covered service or by age 70, whichever is later,
the value of the shares shall be appropriated to the regular
general employees retirement fund and the provisions of section
352.22, subdivision 8, shall apply.
Sec. 39. Minnesota Statutes 1992, section 352D.09, is
amended by adding a subdivision to read:
Subd. 5a. If a former participant who contributed less
than $100 in employee contributions cannot be contacted by the
system for five or more years, the value of the shares shall be
appropriated to the general employees retirement fund, but upon
subsequent contact by the former employee the account shall be
reinstated to the amount that would have been payable had the
money been left in the unclassified plan.
Sec. 40. Minnesota Statutes 1992, section 352D.09, is
amended by adding a subdivision to read:
Subd. 8. [ADMINISTRATIVE CHARGE DEDUCTIONS.] Any
administrative charges deducted under subdivision 7 that were in
excess of the administrative expenses between July 1, 1973, and
June 30, 1992, together with any investment gains or losses
based on fiscal year balances, must be recovered from the state
employees retirement plan and held in the unclassified plan to
pay future administrative expenses. Any deductions to pay
administrative expenses under section 11A.17, subdivision 10a,
on contributions and investment returns attributable to
contributions made before July 1, 1992, must be credited back to
the participants in the unclassified plan.
Sec. 41. Minnesota Statutes 1992, section 490.124,
subdivision 1, is amended to read:
Subdivision 1. [BASIC RETIREMENT ANNUITY.] Except as
qualified hereinafter from and after mandatory retirement date,
normal retirement date, early retirement date, or two years one
year from the disability retirement date, as the case may be, a
retirement annuity shall be payable to a retiring judge from the
judges' retirement fund in an amount equal to: (1) 2-1/2
percent of the judge's final average compensation multiplied by
the number of years and fractions of years of allowable service
rendered prior to July 1, 1980; plus (2) three percent of the
judge's final average compensation multiplied by the number of
years and fractions of years of allowable service rendered after
June 30, 1980; provided that the annuity shall not exceed 65
percent of the judge's annual salary for the 12 months
immediately preceding retirement.
Sec. 42. Minnesota Statutes 1992, section 490.124,
subdivision 4, is amended to read:
Subd. 4. [DISABILITY RETIREMENT.] From and after
disability retirement date, a disabled judge shall be entitled
to continuation of the judge's full salary payable by the
judge's employer, as if the judge's office were not vacated by
retirement, for a period of up to one full year, but in no event
beyond the judge's mandatory retirement date. During this year
the judge will earn additional service credit. The salary
earned will be subject to retirement deductions and will be
included in computing final average compensation. Thereafter a
disability retirement annuity computed as provided in
subdivision 1 shall be paid, provided that the judge shall
receive a minimum annuity of 25 percent of the judge's final
average compensation.
Sec. 43. [STUDY OF BENEFIT OPTIONS FOR PUBLIC EMPLOYEES
WHO BECOME NONPUBLIC EMPLOYEES.]
The legislative commission on pensions and retirement shall
study the issue of benefit options for public employees who
become nonpublic employees for the purpose of determining
whether the employees should have the same or similar benefits
subsequent to public employment as they did during public
employment. The commission shall report the results of the
study and any proposed legislation to the chairs of the
committee on governmental operations and gaming and the
committee on ways and means of the house of representatives and
the committee on governmental operations and reform and the
committee on finance of the senate by January 15, 1994.
Sec. 44. [EFFECTIVE DATE.]
Sections 1, 2, 4, 5, and 7 to 42 are effective the day
following final enactment. Sections 3, 6, and 43 are effective
July 1, 1993. Section 3 applies retroactively to July 1, 1992,
and contributions for that retroactive application period must
be paid to the state employees retirement fund, plus interest at
the annual compound rate of 8.5 percent.
ARTICLE 2
CHANGES TO COMPLY WITH AGE DISCRIMINATION ACT AND
HAVING SLIGHT BENEFIT ADJUSTMENT IMPACT
Section 1. Minnesota Statutes 1992, section 3A.02, is
amended by adding a subdivision to read:
Subd. 5. [OPTIONAL ANNUITIES.] (a) The board of directors
shall establish an optional retirement annuity in the form of a
joint and survivor annuity and an optional retirement annuity in
the form of a period certain and life thereafter. These
optional annuities are to be available only to legislators who
elect to receive retirement annuities under section 356.30 and
who do not meet the legislative length of service requirements
under section 3A.02, subdivision 1, paragraph (a), clause (1).
Except as provided in paragraph (b), these optional annuity
forms must be actuarially equivalent to the normal annuity
computed under section 3A.02, without the automatic survivor
coverage under section 3A.04.
(b) If a retired legislator selects the joint and survivor
annuity option, the retired legislator must receive a normal
single-life annuity if the designated optional annuity
beneficiary dies before the retired legislator and no reduction
may be made in the annuity to provide for restoration of the
normal single-life annuity in the event of the death of the
designated optional annuity beneficiary.
Sec. 2. Minnesota Statutes 1992, section 352.03,
subdivision 4, is amended to read:
Subd. 4. [DUTIES AND POWERS OF BOARD OF DIRECTORS.] The
board shall:
(1) elect a chair;
(2) appoint an executive director;
(3) establish rules to administer this chapter and chapters
3A, 352B, 352C, 352D, and 490 and transact the business of the
system, subject to the limitations of law;
(4) consider and dispose of, or take any other action the
board of directors deems appropriate concerning denials of
applications for annuities or disability benefits under this
chapter, and complaints of employees and others pertaining to
the retirement of employees and the operation of the system; and
(5) advise the director on any matters relating to the
system and carrying out functions and purposes of this chapter.
The board's advice shall control; and
(6) oversee the administration of the state deferred
compensation plan, established in section 352.96.
The director and assistant director must be in the
unclassified service but appointees may be selected from civil
service lists if desired. The salary of the executive director
must be as provided by section 15A.081, subdivision 1. The
salary of the assistant director must be set in accordance with
section 43A.18, subdivision 3.
Sec. 3. Minnesota Statutes 1992, section 352.22,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE TERMINATION.] Any employee who
ceases to be a state employee by reason of termination of state
service or layoff is entitled to a refund provided in
subdivision 2 or a deferred retirement annuity as provided in
subdivision 3. Application for a refund may be made 30 or more
days after the termination of state service or layoff if the
applicant has not again become a state employee required to be
covered by the system.
Sec. 4. Minnesota Statutes 1992, section 352.22,
subdivision 2, is amended to read:
Subd. 2. [AMOUNT OF REFUND.] Except as provided in
subdivision 3, any person who ceased to be a state employee
after June 30, 1973, by reason of termination of state service
shall receive a refund in an amount equal to employee
accumulated contributions plus interest at the rate of six
percent per year compounded annually. Included with the refund
is any interest paid as part of repayment of a past refund, plus
interest thereon from the date of repayment. Interest must be
computed to the first day of the month in which the refund is
processed and must be based on fiscal year balances.
Sec. 5. Minnesota Statutes 1992, section 352.23, is
amended to read:
352.23 [TERMINATION OF RIGHTS.]
When any employee accepts a refund as provided in section
352.22, all existing service credits and all rights and benefits
to which the employee was entitled before accepting the refund
terminate. They must not again be restored until the former
employee acquires at least one year's six months of allowable
service credit after taking the last refund. In that event, the
employee may repay all refunds previously taken from the
retirement fund. Repayment of refunds entitles the employee
only to credit for service covered by (1) salary deductions,; (2)
payments made in lieu of salary deductions, and; (3) payments
made to obtain credit for service as permitted by laws in effect
when payment was made. If an employee before taking one or more
refunds had credit for prior service or for military service
without payment in either case, the employee may obtain credit
for any forfeited service before July 1, 1929, and for any
forfeited military service by making payments at a contribution
rate of three percent of the average salary upon which
deductions for the retirement fund were based, for the
three-year period immediately preceding repayment of refund for
service credit before July 1, 1929, and on the salary received
at the time of entering military service to restore military
service credit; and (4) allowable service once credited while
receiving temporary workers' compensation as provided in section
352.01, subdivision 11, clause (5). Payments for purchase of
prior military service under this section and for repayment of
refunds are to be paid with interest at an annual rate of 8.5
percent compounded annually. They may be paid in a lump sum or
by payroll deduction in the manner provided in section
352.04. Payment may be made in a lump sum up to six months
after termination from service.
Sec. 6. Minnesota Statutes 1992, section 352.95,
subdivision 1, is amended to read:
Subdivision 1. [JOB-RELATED DISABILITY.] A covered
correctional employee less than 55 years old 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
makes the employee physically or mentally unable to perform the
duties, is entitled to a disability benefit based on covered
correctional service only. The benefit amount must equal 50
percent of the average salary defined in section 352.93, plus an
additional 2-1/2 percent for each year of covered correctional
service in excess of 20 years, prorated for completed months.
Sec. 7. Minnesota Statutes 1992, section 352.95,
subdivision 2, is amended to read:
Subd. 2. [NON-JOB-RELATED DISABILITY.] Any covered
correctional employee who, after at least one year of covered
correctional 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 correctional service only. The
disability benefit must be computed as provided in section
352.93, subdivisions 1 and 2, and computed as though the
employee had at least 15 years of covered correctional service.
Sec. 8. Minnesota Statutes 1992, section 352.95,
subdivision 5, is amended to read:
Subd. 5. [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The
disability benefit paid to a disabled correctional employee
under this section shall terminate at the end of the month in
which the employee reaches age 62. If the disabled correctional
employee is still disabled when the employee reaches age 62, the
employee shall be deemed to be a retired employee. If the
employee had elected an optional annuity under subdivision 1a,
the employee shall 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
1a, the employee may then within 90 days of attaining age 65 or
reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later, either elect to receive
a normal retirement annuity computed in the manner provided in
section 352.115 or elect to receive an optional annuity as
provided in section 352.116, 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
within 90 days before attaining age 65 or reaching age 62 the
five-year anniversary of the effective date of the disability
benefit, whichever is later. The reduction for retirement
before normal retirement age as provided in section 352.116,
subdivision 1 or 1a, does not apply. The savings clause
provision of section 352.93, subdivision 3, applies. If an
optional annuity is elected, the optional annuity shall begin to
accrue on the first of the month following the month in which
the employee reaches age 62 65 or the five-year anniversary of
the effective date of the disability benefit, whichever is later.
Sec. 9. Minnesota Statutes 1992, section 352.96,
subdivision 3, is amended to read:
Subd. 3. [EXECUTIVE DIRECTOR TO ADMINISTER SECTION.] This
section must be administered by the executive director of the
system with the advice and consent of the board of directors
under subdivision 4. Fiduciary activities of the deferred
compensation plan must be undertaken in a manner consistent with
chapter 356A. If the state board of investment so elects, it
may solicit bids for options under subdivision 2, clauses (2)
and (3). All contracts must be approved before execution by the
state board of investment. Contracts must provide that all
options in subdivision 2 must: be presented in an unbiased
manner and in a manner that conforms to rules adopted by the
executive director, be reported on a periodic basis to all
employees participating in the deferred compensation program,
and not be the subject of unreasonable solicitation of state
employees to participate in the program. The contract may not
call for any person to jeopardize the tax-deferred status of
money invested by state employees under this section. All costs
or fees in relation to the options provided under subdivision 2,
clause (3), must be paid by the underwriting companies
ultimately selected by the state board of investment.
Sec. 10. Minnesota Statutes 1992, section 352.96,
subdivision 4, is amended to read:
Subd. 4. [EXECUTIVE DIRECTOR TO ESTABLISH RULES.] The
executive director of the system with the advice and consent of
the board of directors shall establish rules and procedures to
carry out this section including allocation of administrative
costs against the assets accumulated under this section. Funds
to pay these costs are appropriated from the fund or account in
which the assets accumulated under this section are placed. The
rules established by the executive director must conform to
federal and state tax laws, regulations, and rulings, and are
not subject to the administrative procedure act. Except for the
marketing rules, rules relating to the options provided under
subdivision 2, clauses (2) and (3), must be approved by the
state board of investment. A state employee must not make
payments under a plan until the plan or applicable component of
the plan has been approved for tax-deferred status by the
Internal Revenue Service.
Sec. 11. Minnesota Statutes 1992, section 352B.01,
subdivision 3, is amended to read:
Subd. 3. [ALLOWABLE SERVICES.] "Allowable service" means:
(a) for members defined in subdivision 2, clause (a),
service for which payments have been made to the state patrol
retirement fund, and
(b) for members defined in subdivision 2, clauses (b) and
(c), service for which payments have been made to the state
patrol retirement fund, service for which payments were made to
the state police officers retirement fund after June 30, 1961,
and all prior service which was credited to a member for service
on or before June 30, 1961.
After a member identified in this clause reaches the age of 60,
allowable service after that date must not be computed in
determining the normal annuity unless the member was employed as
a state police officer before July 1, 1961. If the member was
so employed before July 1, 1961, and reaches 60 years of age and
has more than 30 years' allowable service at that time, each
year and completed month of allowable service acquired by the
member must be computed in determining the normal annuity until
the member reaches the age of 60. If the member was employed
before July 1, 1961, and has less than 30 years of allowable
service when the member reaches age 60, each year and completed
month of allowable service acquired by the member must be
computed in determining the normal annuity not to exceed 30
years of allowable service. The completed year members reach
age 60 may be counted in full in determining allowable service.
Allowable service also includes any period of absence from duty
by a member who, by reason of injury incurred in the performance
of duty, is temporarily disabled and for which disability the
state is liable under the workers' compensation law, until the
date authorized by the executive director for commencement of
payment of a disability benefit or return to employment.
Sec. 12. Minnesota Statutes 1992, section 352B.10,
subdivision 1, is amended to read:
Subdivision 1. [INJURIES, PAYMENT AMOUNTS.] Any member
less than 55 years old, who becomes disabled and physically or
mentally unfit to perform duties as a direct result of an
injury, sickness, or other disability incurred in or arising out
of any act of duty, shall receive disability benefits while
disabled. The benefits must be paid in monthly installments
equal to the member's average monthly salary multiplied by 50
percent, plus an additional 2-1/2 percent for each year and pro
rata for completed months of service in excess of 20 years, if
any.
Sec. 13. Minnesota Statutes 1992, section 352B.10,
subdivision 2, is amended to read:
Subd. 2. [UNDER 55; DISABLED WHILE NOT ON DUTY.] If a
member terminates employment after at least one year of service,
before reaching the age of 55, because of sickness or injury
occurring while not on duty and not engaged in state work
entitling the member to membership, and the termination is
necessary because the member cannot perform duties, the member
is entitled to receive a disability benefit. The benefit must
be in the same amount and computed in the same way as if the
member were 55 years old at the date of disability and the
annuity were paid under section 352B.08. If disability under
this clause occurs after one but before 15 years service, the
disability benefit must be computed as though the member had 15
years service.
Sec. 14. Minnesota Statutes 1992, section 352B.10,
subdivision 5, is amended to read:
Subd. 5. [OPTIONAL ANNUITY.] A disabled member may, in
lieu of survivorship coverage under section 352B.11, subdivision
2, choose the normal disability benefit or an optional annuity
as provided in section 352B.08, subdivision 3. The choice of an
optional annuity must be made before commencement of payment of
the disability benefit, or within 90 days of attaining age 65 or
reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later. It is effective on the
date on which the disability benefit begins to accrue, or the
month following attainment of age 65 or the five-year
anniversary of the effective date of the disability benefit,
whichever is later.
Sec. 15. Minnesota Statutes 1992, section 352B.105, is
amended to read:
352B.105 [TERMINATION OF DISABILITY BENEFITS.]
Disability benefits payable under section 352B.10 shall
terminate at the end of the month the beneficiary becomes 55
years old. If the beneficiary is still disabled when the
beneficiary becomes 55 years old, the beneficiary shall be
deemed to be a retired member and, if the beneficiary had chosen
an optional annuity under section 352B.10, subdivision 5, shall
receive an annuity in accordance with the terms of the optional
annuity previously chosen. If the beneficiary had not chosen an
optional annuity under section 352B.10, subdivision 5, the
beneficiary may choose to receive either a normal retirement
annuity computed under section 352B.08, subdivision 2, or an
optional annuity as provided in section 352B.08, subdivision 3.
An optional annuity must be chosen before the beneficiary
becomes 55 years old within 90 days of attaining age 65 or
reaching the five-year anniversary of the effective date of the
disability benefit, whichever is later. If an optional annuity
is chosen, the optional annuity shall begin to accrue the first
of the month following the month in which the beneficiary
becomes 55 years old attainment of age 65 or the five-year
anniversary of the effective date of the disability benefit,
whichever is later.
Sec. 16. Minnesota Statutes 1992, section 352B.11,
subdivision 2, is amended to read:
Subd. 2. [DEATH; PAYMENT TO SPOUSE AND CHILDREN.] If a
member serving actively as a member, or a member or former
member receiving the disability benefit before attaining age 65
or reaching the five-year anniversary of the effective date of
the disability benefit, whichever is later, provided by section
352B.10, subdivision 1, or a former member receiving a
disability benefit as provided by section 352B.10, subdivision
2, subdivisions 1 and 2, dies from any cause before attaining
age 65 or reaching the five-year anniversary of the effective
date of the disability benefit, whichever is later, the
surviving spouse and dependent children are entitled to benefit
payments as follows:
(a) A member with at least three 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 became or would have become 55.
(b) The surviving spouse of a member who had credit for
less than three years of service shall receive, for life, a
monthly annuity equal to 50 percent of that part of the average
monthly salary of the member from which deductions were made for
retirement.
(c) The surviving spouse of a member who had credit for at
least three years service and who died after becoming 55 years
old, may elect to receive a 100 percent joint and survivor
annuity, for life, notwithstanding a subsequent remarriage, in
lieu of the annuity prescribed in paragraph (b).
(d) The surviving spouse of any member who had credit for
three years or more and who was not 55 years old at death, shall
receive the benefit equal to 50 percent of the average monthly
salary as described in clause (b) until the deceased member
would have become 55 years old, and beginning the first of the
month following that date, may elect to receive the 100 percent
joint and survivor annuity.
(e) Each dependent child shall receive a monthly annuity
equal to ten percent of that part of the average monthly salary
of the former member from which deductions were made for
retirement. A dependent child over 18 and under 23 years of age
also may receive the monthly benefit provided in this section,
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 part 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 must be made to
the surviving spouse, or if there is none, to the legal guardian
of the child. The maximum monthly benefit for any one family
must not be less than 50 nor exceed 70 percent of the average
monthly salary for any number of children.
(f) If the member dies under circumstances that entitle the
surviving spouse and dependent children to receive benefits
under the workers' compensation law, the workers' compensation
benefits received by them must not be deducted from the benefits
payable under this section.
(g) The surviving spouse of a deceased former member who
had credit for three or more years of allowable service, but not
the spouse of a former member receiving a disability benefit
under section 352B.10, subdivision 2, is entitled to receive the
100 percent joint and survivor annuity at the time the deceased
member would have become 55 years old. If a former member dies
who does not qualify for other benefits under this chapter, the
surviving spouse or, if none, the children or heirs are entitled
to a refund of the accumulated deductions left in the fund plus
interest at the rate of six percent per year compounded annually.
Sec. 17. Minnesota Statutes 1992, section 352D.05,
subdivision 4, is amended to read:
Subd. 4. A participant in the unclassified program may
repay regular refunds taken pursuant to section 352.22, as
provided in section 352.23. A participant in the unclassified
program or an employee covered by the general plan who has
withdrawn the value of the total shares may repay the refund
taken and thereupon restore the service credit, rights and
benefits forfeited by paying into the fund the greater of (1)
the amount refunded plus interest at an annual rate of 8.5
percent compounded annually from the date that the refund was
taken until the date that the refund is repaid, or (2) an amount
equal to the total of the employee and employer matching and
additional contributions for the forfeited employment period
less the administrative fee provided in section 352D.09,
subdivision 7, plus interest at an annual rate of 8.5 percent
compounded annually from the date of the start of the forfeited
employment period until the date that the refund is paid. If
the participant had withdrawn only the employee shares as
permitted under prior laws, repayment shall be pro rata.
Payment shall be made in a lump sum.
Sec. 18. Minnesota Statutes 1992, section 356.302,
subdivision 6, is amended to read:
Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT
COMPUTATION.] (a) The combined service disability benefit from
each covered retirement plan must be based on the allowable
service in each retirement plan, except as specified in
paragraphs (b) to (f).
(b) The disability benefit must be governed by the law in
effect for each covered retirement plan on the date of the
commencement of the member's most recent qualifying disability
as a member of a covered retirement plan.
(c) All plans must base the disability benefit on the same
average salary to the extent practicable.
(d) If the method of the covered retirement plan used to
compute a disability benefit varies based on the length of
allowable service credit, the benefit accrual formula
percentages used by the plan must recognize the allowable
service credit in the plan as a continuation of any previous
allowable service credit with other covered retirement plans.
(e) If the covered retirement plan is a defined benefit or
formula plan and the method used to compute a disability benefit
does not vary based on the length of allowable service credit,
the portion of the specified benefit amount from the plan must
bear the same proportion to the total specified benefit amount
as the allowable service credit in that plan bears to the total
allowable service credit in all covered retirement plans. If
the covered retirement plan is a defined contribution or
nonformula plan, the disability benefit amount for allowable
service under the plan is not affected, but the service and
covered salary under the plan must be used in calculations by
other covered retirement plans.
(f) A period for which a person has allowable service
credit in more than one covered retirement plan must be used
only once in determining the total allowable service credit for
calculating the combined service disability benefit, with any
period of duplicated service credit handled under section
356.30, subdivision 1, clause (3), items (i) and (j).
(g) If a person is entitled to a minimum benefit payable
from one of the public pension plans named in section 356.30,
subdivision 3, the person may receive additional credit for only
those years of service in another covered pension plan that,
when added to the years of service in the pension plan that is
paying the minimum benefit, exceed the years of service on which
the minimum benefit is based.
(h) A partially employed recipient of a disability benefit
must have any current income plus disability payment from all
plans listed in subdivision 7 added together, and then compared
to their final salary rate as a public employee. If current
income plus disability payments exceed the final salary, then
disability benefit payments from all the plans will be reduced
on a prorated basis relative to the years of service in each
fund so that earnings plus benefit payments do not exceed their
final salary rate.
Sec. 19. [RETROACTIVE BENEFIT ACCRUAL TO COMPLY WITH AGE
DISCRIMINATION LAWS.]
A retired member of the state patrol retirement plan who
retired after December 31, 1987, and whose annuity was
calculated using less than full years and months of service
earned after reaching age 60 shall have monthly benefits
recomputed using all years and months of service and including
any postretirement adjustments that would have been payable.
The difference between the original calculation and recomputed
amount must be paid retroactively to September 1, 1989, or the
date the annuity began to accrue, whichever is later.
Sec. 20. [EFFECTIVE DATE.]
Sections 1 to 19 are effective the day following final
enactment.
ARTICLE 3
MISCELLANEOUS MSRS PROVISIONS
Section 1. Minnesota Statutes 1992, section 352.01, is
amended by adding a subdivision to read:
Subd. 13a. [REDUCED SALARY DURING PERIOD OF WORKERS'
COMPENSATION.] An employee on leave of absence receiving
temporary workers' compensation payments and a reduced salary or
no salary from the employer who is entitled to allowable service
credit for the period of absence, may make payment to the fund
for the difference between salary received, if any, and the
salary the employee would normally receive if not on leave of
absence during the period. The employee shall pay an amount
equal to the employee and employer contribution rate under
section 352.04, subdivisions 2 and 3, on the differential salary
amount for the period of the leave of absence.
The employing department, at its option, may pay the
employer amount on behalf of its employees. Payment made under
this subdivision must include interest at the rate of 8.5
percent per year, and must be completed within one year of the
return from leave of absence.
Sec. 2. Minnesota Statutes 1992, section 352.03,
subdivision 4a, is amended to read:
Subd. 4a. [ADDITIONAL DUTIES OF THE BOARD.] The board may
consider, review, and make recommendations regarding the
financial and other needs of retired employees and may
disseminate appropriate retirement information to the retired
employee. Notwithstanding laws to the contrary, the board, at
its discretion, may supply the names and addresses of retirees
who were employed by the University of Minnesota at the time of
termination to the University of Minnesota and state agencies
for retirees who were employed by the specific state agency at
the time of termination. The board, at its discretion, may
supply names and addresses of state and university retirees to
an organization that has been in existence for at least ten
years and represents over 5,000 retired state and university
employees. The names and addresses of each retiree can only be
given to this organization once within 60 days of the effective
date of the annuity. The board shall require the retiree
organization, University of Minnesota, or applicable state
agency to reimburse the fund for any administrative expense of
providing the list. The list remains the property of the
Minnesota state retirement system and may not be subsequently
sold, conveyed, given, or otherwise transferred by the retiree
organization, the University of Minnesota, or the state agency
to a third party. Periodically, retirees must be given an
opportunity to specify that their name and address not be
distributed under this section.
Sec. 3. Minnesota Statutes 1992, section 352.15, is
amended by adding a subdivision to read:
Subd. 3. [DEDUCTING HEALTH INSURANCE PREMIUMS.] The board
may direct, at its discretion, the deduction of a retirees'
health insurance premiums and transfer of the amounts to a
health insurance carrier covering state employees. The
insurance carrier must certify that the retired employee has
signed an authorization for the deduction and provide a computer
readable roster of covered retirees and amounts. The health
insurance carrier must refund deductions withheld from a
retirees' check in error directly to the retiree. The board
shall require the insurance carrier to reimburse the fund for
the administrative expense of withholding the premium amounts.
The insurance carrier shall assume liability for any failure of
the system to properly withhold the premium amounts.
Sec. 4. Minnesota Statutes 1992, section 352.15, is
amended by adding a subdivision to read:
Subd. 4. [DIRECT TRANSFER OF REFUNDS.] Direct transfer of
account refunds may be made to individual retirement savings
accounts or qualified retirement plans upon application for
transfer by a former employee, on forms acceptable to the
executive director.
Sec. 5. Minnesota Statutes 1992, section 352B.01,
subdivision 11, is amended to read:
Subd. 11. [AVERAGE SALARY.] "Average monthly salary" means
the average of the highest monthly salaries for five years of
service as a member. Average monthly salary must be based upon
all allowable service if this service is less than five years.
It does not include any amounts of severance pay or any reduced
salary paid during the period the person is entitled to workers'
compensation benefit payments for temporary disability. A
member on leave of absence receiving temporary workers'
compensation payments and a reduced salary or no salary from the
employer who is entitled to allowable service credit for the
period of absence may make payment to the fund for the
difference between salary received, if any, and the salary the
member would normally receive if not on leave of absence during
the period. The member shall pay an amount equal to the member
and employer contribution rate under section 352B.02,
subdivisions 1b and 1c, on the differential salary amount for
the period of the leave of absence. The employing department,
at its option, may pay the employer amount on behalf of the
member. Payment made under this subdivision must include
interest at the rate of 8.5 percent per year, and must be
completed within one year of the return from the leave of
absence.
Sec. 6. Minnesota Statutes 1992, section 352D.02,
subdivision 3, is amended to read:
Subd. 3. An election to not participate is irrevocable
during any period of covered employment. An employee credited
with employee shares in the unclassified program, after
acquiring credit for ten years of allowable service but prior to
termination of covered employment, may, notwithstanding other
provisions of this subdivision, elect to terminate participation
in the unclassified plan and be covered by the regular plan by
filing such election with the executive director. The executive
director shall thereupon redeem the employee's total shares and
shall credit to the employee's account in the regular plan the
amount of contributions that would have been so credited had the
employee been covered by the regular plan during the employee's
entire covered employment. The balance of money so redeemed and
not credited to the employee's account shall be transferred to
the state contribution reserve of the state employees retirement
fund, except that the employee contribution paid to the
unclassified plan in excess of that required by the general
employee plan shall be refunded to the employee as provided in
section 352.22, except that (1) the employee contribution paid
to the unclassified plan must be compared to (2) the employee
contributions that would have been paid to the general plan for
the comparable period, if the individual had been covered by
that plan. If clause (1) is greater than clause (2), the
difference must be refunded to the employee as provided in
section 352.22. If clause (2) is greater than clause (1), the
difference must be paid by the employee within six months of
electing general plan coverage or before the effective date of
the annuity, whichever is sooner.
Sec. 7. Minnesota Statutes 1992, section 352D.02, is
amended by adding a subdivision to read:
Subd. 6. The provisions of section 352.04, subdivision 8,
apply to this section.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective on the day following final
enactment.
ARTICLE 4
PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
ADMINISTRATIVE LAW CHANGES
Section 1. Minnesota Statutes 1992, section 353.01,
subdivision 2, is amended to read:
Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means any
person an employee performing personal services for a
governmental subdivision under subdivision 6, whose salary is
paid, in whole or in part, from revenue derived from taxation,
fees, assessments, or from other sources. The term also
includes special classes of persons listed in subdivision 2a,
but excludes special classes of persons listed in subdivision 2b
for purposes of membership in the association. Public employee
does not include independent contractors and their employees.
Sec. 2. Minnesota Statutes 1992, section 353.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] The following persons are
included in the meaning of "public employee": Public employees
whose salary from one governmental subdivision exceeds $425 in
any month shall participate as members of the association. If
the salary of an employee is less than $425 in a subsequent
month, the employee retains membership eligibility. The
following persons are considered public employees:
(1) employees whose annual salary from one governmental
subdivision exceeds a stipulation prepared in advance, in
writing, to be not more than $5,100 per calendar year or per
school year for school employees for employment expected to be
of a full year's duration or more than the prorated portion of
$5,100 per employment period expected to be of less than a full
year's duration. If compensation from one governmental
subdivision to an employee under this clause exceeds $5,100 per
calendar year or school year after being stipulated in advance
not to exceed that amount, the stipulation is no longer valid
and contributions must be made on behalf of the employee under
section 353.27, subdivision 12, from the month in which the
employee's salary first exceeded $425;
(2) employees whose total salary from concurrent
nontemporary positions in one governmental subdivision exceeds
$425 in any month;
(3) elected or appointed officers and for service to which
they were elected by the public-at-large, or persons appointed
to fill a vacancy in an elective office, who elect to
participate by filing an application for membership, but not for
service on a joint or regional board that is a governmental
subdivision under subdivision 6, paragraph (a), unless the
salary earned for that service exceeds $425 in any month. The
option to become a member, once exercised, may not be withdrawn
during the incumbency of the person in office;
(4) members who are appointed by the governor to be a state
department head and elect not to be covered by the Minnesota
state retirement system under section 352.021;
(5) employees of elected officers;
(2) (6) persons who elect to remain members under section
480.181, subdivision 2;
(3) officers and employees of the public employees
retirement association;
(4) employees of the league of Minnesota cities;
(5) employees of the association of metropolitan
municipalities;
(6) officers and employees of public hospitals owned or
operated by, or an integral part of, a governmental subdivision
or governmental subdivisions;
(7) employees of a school district who receive separate
salaries for driving their own buses;
(8) employees of the association of Minnesota counties;
(9) employees of the metropolitan intercounty association;
(10) employees of the Minnesota municipal utilities
association;
(11) (8) employees of the Minnesota association of
townships when the board of the association, at its option,
certifies to the executive director that its employees are to be
included for purposes of retirement coverage, in which case
coverage of all employees of the association is permanent;
(12) employees of the metropolitan airports commission if
employment initially commenced after June 30, 1979;
(13) employees of the Minneapolis employees retirement fund
if employment initially commenced after June 30, 1979;
(14) employees of the range association of municipalities
and schools;
(15) employees of the soil and water conservation
districts;
(16) (9) employees of a county historical society who are
county employees;
(17) (10) employees of a county historical society located
in the county whom the county, at its option, certifies to the
executive director to be county employees for purposes of
retirement coverage under this chapter, which status must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society and is
not excluded under subdivision 2b; and
(18) employees of an economic development authority created
or operating under sections 469.090 to 469.108;
(19) employees of the department of military affairs of the
state of Minnesota who are full-time firefighters; and
(20) (11) employees who became members before July 1, 1988,
based on the total salary of positions held in more than one
governmental subdivision.
Sec. 3. Minnesota Statutes 1992, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following persons are
excluded from the meaning of "public employee" public employees
shall not participate as members of the association:
(1) persons who are employed for professional services
where the service is incidental to regular professional duties,
determined on the basis that compensation for the service
amounts to no more than 25 percent of the person's total annual
gross earnings for all professional duties elected public
officers, or persons appointed to fill a vacancy in an elective
office, who do not elect to participate in the association by
filing an application for membership;
(2) election officers;
(3) independent contractors and their employees;
(4) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of a
governmental subdivision;
(5) members of boards and commissions who serve a
governmental subdivision intermittently unless their position on
the board or commission is the result of public employment
within the same governmental unit;
(6) (4) employees who are hired for a period of less than
six consecutive months temporary position under subdivision 12a,
and employees who resign from a nontemporary position and accept
a temporary position within 30 days in the same governmental
subdivision, but not those employees who are hired for an
unlimited period but are serving a probationary period. If the
period of employment is extended extends beyond the six-month
period six consecutive months and the employee earns more than
$425 from one governmental subdivision in any one calendar
month, the department head shall report the employee for
membership and require employee deductions be made on behalf of
the employee under section 353.27, subdivision 4.
Membership eligibility of an employee who resigns or is
dismissed from a temporary position and within 30 days accepts
another temporary position in the same governmental subdivision
is determined on the total length of employment rather than on
each separate position. Membership eligibility of an employee
who holds concurrent temporary employment of six months or less
and nontemporary positions in one governmental subdivision must
be is determined by the length of employment and salary of each
separate position. Membership eligibility of an employee who
holds nontemporary positions in one governmental subdivision
must be determined by the total salary of all positions;
(7) (5) employees whose actual compensation salary from one
governmental subdivision does not exceed $425 per month, or
whose annual compensation salary from one governmental
subdivision is stipulated does not exceed a stipulation prepared
in advance, in writing, to be not more than that the salary must
not exceed $5,100 per calendar year or per school year for
school employees for employment expected to be of a full year's
duration or more than the prorated portion of $5,100 per
employment period for employment expected to be of less than a
full year's duration, except that members continue their
membership until termination of public service as defined in
subdivision 11a. Membership eligibility of an employee who
holds concurrent part-time positions under this clause must be
determined by the total salary of all such positions in one
governmental subdivision. If compensation from one governmental
subdivision to an employee under this paragraph exceeds $5,100
per calendar year or school year after being stipulated in
advance not to exceed that amount, the stipulation is no longer
valid and contributions must be made on behalf of the employee
in accordance with section 353.27, subdivision 12, from the
month in which the employee's earnings first exceeded $425;
(8) persons who first occupy an elected office after July
1, 1988, the compensation for which does not exceed $425 per
month;
(9) emergency (6) employees who are employed by reason of
work emergency caused by fire, flood, storm, or similar
disaster;
(10) (7) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota state retirement system, the teachers retirement
association, the Duluth teachers retirement fund association,
the Minneapolis teachers retirement association, the St. Paul
teachers retirement fund association, the Minneapolis employees
retirement fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the public employees retirement association, or any police
or firefighters relief association that has consolidated with
the public employees retirement association but whose members
have not elected the type of benefit coverage provided by the
public employees police and fire fund under sections 353A.01 to
353A.10. This clause must not be construed to prevent a person
from being a member of and contributing to the public employees
retirement association and also belonging to and contributing to
another public pension fund for other service occurring during
the same period of time. A person who meets the definition of
"public employee" in subdivision 2 by virtue of other service
occurring during the same period of time becomes a member of the
association unless contributions are made to another public
retirement fund on the salary based on the other service or to
the teachers retirement association by a teacher as defined in
section 354.05, subdivision 2;
(11) police matrons who are employed in a police department
of a city who are transferred to the jurisdiction of a joint
city and county detention and corrections authority;
(12) (8) persons who are excluded from coverage under the
federal old age, survivors, disability, and health insurance
program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended through
January 1, 1987, if no irrevocable election of coverage has been
made under section 3121(r) of the Internal Revenue Code of 1954,
as amended;
(13) (9) full-time students who are enrolled and are
regularly attending classes at an accredited school, college, or
university and who are part-time employees as defined by a
governmental subdivision;
(14) (10) resident physicians, medical interns, and
pharmacist residents and pharmacist interns who are serving in a
degree or residency program in public hospitals and;
(11) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(15) appointed or elected officers who are paid entirely on
a fee basis and who were not members on June 30, 1971;
(16) (12) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(17) persons exempt from licensure under section 125.031;
(18) persons employed by the Minneapolis community
development agency;
(13) foreign citizens working for a governmental
subdivision with a work permit of less than three years, or an
H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends
beyond the three-year period, the foreign citizens are eligible
for membership from the date of the extension;
(14) public hospital employees who elected not to
participate as members of the association before 1972 and who
did not elect to participate from July 1, 1988 to October 1,
1988;
(19) (15) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the public employees retirement association and
participants in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment service other than
service as volunteer ambulance service personnel; and
(20) (16) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the public employees retirement association and a
participant in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment activities other
than those as a volunteer firefighter.
Sec. 4. Minnesota Statutes 1992, section 353.01,
subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources, but.
(b) Governmental subdivision also means the public
employees retirement association, the league of Minnesota
cities, the association of metropolitan municipalities, public
hospitals owned or operated by, or an integral part of, a
governmental subdivision or governmental subdivisions, the
association of Minnesota counties, the metropolitan intercounty
association, the Minnesota municipal utilities association, the
metropolitan airports commission, and the Minneapolis employees
retirement fund for employment initially commenced after June
30, 1979, the range association of municipalities and schools,
soil and water conservation districts, and economic development
authorities created or operating under sections 469.090 to
469.108.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the
provisions of sections 469.001 to 469.047; or any port authority
organized under sections 469.048 to 469.068; or any hospital
district organized or reorganized prior to July 1, 1975, under
sections 447.31 to 447.37 or the successor of the district, nor
the Minneapolis community development agency.
Sec. 5. Minnesota Statutes 1992, section 353.01,
subdivision 7, is amended to read:
Subd. 7. [MEMBER.] "Member" means a person who accepts
employment as a "public employee" under subdivision 2, is an
employee under subdivision 2a, and is not covered by the plan
established in chapter 353D. A person who is a member remains a
member while performing services as a public employee and while
on an authorized leave of absence or an authorized temporary
layoff.; provided, however, (1) that any elected public officer
or any person appointed to fill a vacancy in an elective office
shall have the right to exercise an option to become a member by
filing application for membership, but the option to become a
member, once exercised, may not be withdrawn during the
incumbency of the person in office; and (2) that any member who
is appointed by the governor to be a state department head and
elects pursuant to section 352.021, subdivision 3, not to be
covered by the Minnesota state retirement system, shall remain a
member of the public employees retirement association.
Membership in the retirement association of any person shall
terminate upon the person ceasing to be a "public employee."
Sec. 6. Minnesota Statutes 1992, section 353.01, is
amended by adding a subdivision to read:
Subd. 7a. [FORMER MEMBER.] "Former member" means a member
of the association who terminates public service under
subdivision 11a or membership under subdivision 11b.
Sec. 7. Minnesota Statutes 1992, section 353.01,
subdivision 10, is amended to read:
Subd. 10. [SALARY.] (a) "Salary" means the periodical
compensation of a public employee, before deductions for
deferred compensation, supplemental retirement plans, or other
voluntary salary reduction programs, and also means "wages" and
includes net income from fees.
(b) Salary does not mean fees paid to district court
reporters are not salary., unused annual or sick leave payments,
in lump-sum or periodic payments, are not salary. severance
payments, reimbursement of expenses, lump-sum settlements not
attached to a specific earnings period, or workers' compensation
payments, and all. Salary does not mean employer-paid flexible
spending accounts, cafeteria plans, health care expense
accounts, day care expenses, or any payments in lieu of any
employer-paid group insurance coverage, including the difference
between single and family rates that may be paid to a member
with single coverage, are not salary. Before the time that all
sick leave has been used, amounts paid to an employee under a
disability insurance policy or program where the employer paid
the premiums are salary, and, after all sick leave has been
used, the payment is not salary.
(b) (c) Except as provided in sections 353.86 or 353.87,
compensation of any kind paid to volunteer ambulance service
personnel or volunteer firefighters, as defined in subdivisions
35 and 36, is not salary.
(c) (d) For a public employee who has prior service covered
by a local police or firefighters relief association that has
consolidated with the public employees retirement association
and who has elected coverage under the public employees police
and fire fund benefit plan under section 353A.08 following the
consolidation, "salary" means the rate of salary upon which
member contributions to the special fund of the relief
association were made prior to the effective date of the
consolidation as specified by law and by bylaw provisions
governing the relief association on the date of the initiation
of the consolidation procedure and the actual periodical
compensation of the public employee after the effective date of
the consolidation.
Sec. 8. Minnesota Statutes 1992, section 353.01,
subdivision 11a, is amended to read:
Subd. 11a. [TERMINATION OF PUBLIC SERVICE.] "Termination
of public service" occurs when an officer or employee terminates
employment or is on temporary layoff as defined in subdivision
12 a member resigns or is dismissed from public service by the
employing governmental subdivision, as evidenced by appropriate
written record transmitted to the association, and does not
within 30 days of termination or expiration of the temporary
layoff resignation or dismissal return to a nontemporary
employment position in the same governmental subdivision.
Sec. 9. Minnesota Statutes 1992, section 353.01, is
amended by adding a subdivision to read:
Subd. 11b. [TERMINATION OF MEMBERSHIP.] "Termination of
membership" occurs:
(1) upon termination of public service under subdivision
11a;
(2) when a member who is a part-time employee is excluded
from membership as a full-time student under subdivision 2b,
clause (9);
(3) when a member does not return to work within 30 days of
the expiration of an authorized temporary layoff under
subdivision 12 or an authorized leave of absence under
subdivision 31. If the employee subsequently returns to a
position in the same governmental subdivision, the employee
shall not again be required to earn a salary in excess of $425
per month, unless the employee has taken a refund of accumulated
employee deductions plus interest under section 353.34,
subdivision 1; or
(4) when a person files a written election to discontinue
employee deductions under section 353.27, subdivision 7,
paragraph (a), clause (1).
Sec. 10. Minnesota Statutes 1992, section 353.01,
subdivision 12, is amended to read:
Subd. 12. [AUTHORIZED TEMPORARY LAYOFF.] "Authorized
temporary layoff," including seasonal leave of absence, means a
suspension of public employment service authorized by the
employing governmental subdivision for a period not exceeding
three months in any calendar year, by action of the employing
governmental subdivision as evidenced by appropriate record of
the employer and promptly transmitted to the association.
Sec. 11. Minnesota Statutes 1992, section 353.01, is
amended by adding a subdivision to read:
Subd. 12a. [TEMPORARY POSITION.] "Temporary position"
means an employment position of six months or less in which a
person is a public employee under subdivision 2, but not an
employment position for an unlimited period in which a person
serves a probationary period.
Sec. 12. Minnesota Statutes 1992, section 353.01,
subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE.] (a) "Allowable service"
means service during years of actual membership in the course of
which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35, and
service in years during which the public employee was not a
member but for which the member later elected, while a member,
to obtain credit by making payments to the fund as permitted by
any law then in effect.
(b) "Allowable service" also means a period of authorized
leave of absence with pay from which deductions for employee
contributions are made, deposited, and credited to the fund.
(c) "Allowable service" also means a period of authorized
leave of absence without pay that does not exceed one year, and
during or for which a member obtained credit by payments to the
fund made in place of salary deductions, provided that the
payments are made in an amount or amounts based on the member's
average salary on which deductions were paid for the last six
months of public service, or for that portion of the last six
months while the member was in public service, to apply to the
period in either case immediately preceding commencement of the
leave of absence. If the employee elects to pay employee
contributions for the period of any leave of absence without
pay, or for any portion of the leave, the employee shall also,
as a condition to the exercise of the election, pay to the fund
an amount equivalent to both the required employer and
additional employer contributions for the employee. The payment
must be made within one year from the date expiration of the
leave of absence terminates or within 20 days after termination
of public service under subdivision 11a. The employer by
appropriate action of its governing body, made a part of its
official records, before the date of the first payment of the
employee contribution, may certify to the association in writing
its commitment to pay the employer and additional employer
contributions from the proceeds of a tax levy made under section
353.28. Payments under this paragraph must include interest at
an annual rate of 8.5 percent compounded annually from the date
of the termination of the leave of absence to the date payment
is made. An employee shall return to public service for a
minimum of 90 calendar days to be eligible to pay employee and
employer contributions for a subsequent authorized leave of
absence without pay.
(d) "Allowable service" also means a periodic, repetitive
leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per
annual normal work cycle as certified to the association by the
employer. A participating member obtains service credit by
making employee contributions in an amount or amounts based on
the member's average salary that would have been paid if the
leave had not been taken. The employer shall pay the employer
and additional employer contributions on behalf of the
participating member. The employee and the employer are
responsible to pay interest on their respective shares at the
rate of six percent a year, compounded annually, from the date
or dates that the contributions were first payable end of the
normal cycle until full payment is made. An employer shall also
make the employer and additional employer contributions, plus
six percent interest, compounded annually, on behalf of an
employee who makes employee contributions but terminates public
service. The employee contributions must be made within one
year after the end of the annual normal working cycle or within
20 days after termination of public service, whichever
is applicable sooner. The association shall prescribe the
manner and forms to be used by a governmental subdivision in
administering a periodic, repetitive leave.
(e) "Allowable service" also means a period during which a
member is on an authorized sick leave of absence, without pay,
limited to one year. An employee who has received one year of
allowable service shall return to public service for a minimum
of 90 calendar days to receive allowable service for a
subsequent authorized sick leave of absence.
(f) "Allowable service" also means an authorized temporary
layoff under subdivision 12. The association shall grant a
maximum of three months allowable service per authorized
temporary layoff in one calendar year. An employee shall return
to public service for a minimum of 90 calendar days to receive
allowable service for a subsequent authorized temporary layoff.
(g) "Allowable service" also means a maternity, paternity,
or adoption parental leave. The association shall grant a
maximum of two months service credit for a maternity, paternity,
or adoption parental leave, within six months after the birth or
adoption, upon documentation from the member's governmental
subdivision. A member on personal leave of absence who provides
the association with or presentation of a birth certificate or
other evidence of birth or adoption during the personal leave
time period also receives up to two months of service credit to
the association.
(h) "Allowable service" also means a period during which a
member is on an authorized leave of absence to enter military
service, provided that the member returns to public service upon
discharge from military service under section 192.262 and pays
into the fund employee contributions based upon the employee's
salary at the date of return from military service. Payment
must be made within five years of the date of discharge from the
military service. The amount of these contributions must be in
accord with the contribution rates and salary limitations, if
any, in effect during the leave, plus interest at an annual rate
of 8.5 percent compounded annually from the date of return to
public service to the date payment is made. The matching
employer contribution and additional employer contribution under
section 353.27, subdivisions 3 and 3a, must be paid by the
department governmental subdivision employing the member upon
return to public service if the member makes the employee
contributions. The governmental subdivision involved may
appropriate money for those payments. A member may not receive
credit for a voluntary extension of military service at the
instance of the member beyond the initial period of enlistment,
induction, or call to active duty.
(i) For calculating benefits under sections 353.30, 353.31,
353.32, and 353.33 for state officers and employees displaced by
the community corrections act, chapter 401, and transferred into
county service under section 401.04, "allowable service" means
combined years of allowable service as defined in paragraphs (a)
to (h) and section 352.01, subdivision 11.
(j) For a public employee who has prior service covered by
a local police or firefighters relief association that has
consolidated with the public employees retirement association,
and who has elected the type of benefit coverage provided by the
public employees police and fire fund under section 353A.08
following the consolidation, "applicable service" is a period of
service credited by the local police or firefighters relief
association as of the effective date of the consolidation based
on law and on bylaw provisions governing the relief association
on the date of the initiation of the consolidation procedure.
Sec. 13. Minnesota Statutes 1992, section 353.01,
subdivision 28, is amended to read:
Subd. 28. [RETIREMENT.] (a) "Retirement" means the
withdrawal from active public service by a member who is paid a
retirement annuity that begins to accrue commencement of payment
of an annuity based on a date designated by the board of
trustees. This date determines the rights specified in under
this chapter which occur either before or after retirement. A
right to retirement must not accrue without a complete and
continuous separation from public service for 30 days following
the withdrawal from public service for the purpose of retirement
is subject to termination of public service under subdivision
11a and termination of membership under subdivision 11b.
(b) Notwithstanding the 30-day separation requirement, a
member of the defined benefit plan under this chapter, who also
participates in the public employees defined contribution plan
under chapter 353D for other public service, may be paid, if
eligible, a retirement annuity from the defined benefit plan
while participating in the defined contribution plan.
Sec. 14. Minnesota Statutes 1992, section 353.01,
subdivision 31, is amended to read:
Subd. 31. [AUTHORIZED LEAVE OF ABSENCE.] "Authorized leave
of absence" means any period during which a member is duly
authorized by an employer to refrain from active employment,
with or without pay, evidenced by appropriate record of the
employer and promptly transmitted to the association.
Sec. 15. Minnesota Statutes 1992, section 353.01,
subdivision 32, is amended to read:
Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means
any public employee, including any public hospital employee,
covered by any agreement or modification made between the state
and the Secretary of Health, Education and Welfare, making the
provisions of the federal old age, survivors and disability
insurance act applicable to such the member if membership
eligibility criteria are met under this chapter. Coordinated
member also means a basic member who terminates public service
under subdivision 11a, reenters public service in a nontemporary
position, and meets the membership eligibility criteria under
this chapter.
Sec. 16. Minnesota Statutes 1992, section 353.017, is
amended to read:
353.017 [EMPLOYEES OF LABOR ORGANIZATIONS.]
Subdivision 1. [QUALIFICATIONS.] A former member of the
association, or a current coordinated member on an authorized
leave of absence, who is an employee of a labor organization
that represents public employees who are association members may
elect pursuant to, under subdivision 2, to be a coordinated
member with respect to service with such the labor organization
unless specifically exempt under section 353.01, subdivision 2b.
Subd. 2. [ELECTION.] A person described in subdivision
1 will be is covered by the association if written election to
be covered is delivered to the board association within 30 days
six months of being employed employment by such the labor
organization or within six months after July 1, 1993, whichever
is applicable.
Subd. 3. [CONTRIBUTIONS.] The employee, employer and
additional employer contributions shall be the obligation of the
employee who elects coverage herein in accord with this chapter;
provided, however, the employer, labor organization, may pay the
employer and additional employer contributions. The employer
shall, in any event, deduct the necessary contributions from the
employee's salary and remit all contributions to the public
employees retirement association pursuant to section 353.27,
subdivisions 4, 7, 10, 11, and 12.
Subd. 5. [BOARD MEMBERSHIP EXCLUDED.] Persons who become
association members pursuant to this section shall not be
eligible for election to the board of trustees.
Sec. 17. Minnesota Statutes 1992, section 353.27,
subdivision 7, is amended to read:
Subd. 7. [ADJUSTMENT FOR ERRONEOUS RECEIPTS OR
DISBURSEMENTS.] (a) [DEDUCTIONS TAKEN IN ERROR.] Deductions
taken in error by the employer from the salary of an employee
for the retirement fund and transmitted to the association must
be refunded to the employee under section 353.34, subdivision
2. The employer contribution and the additional employer
contribution, if any, for the erroneous employee contribution
must be refunded to the employer, provided that the refund of
deductions taken in error has been made within three calendar
years of the calendar year in which the initial deduction taken
in error was received by the association. A refund of
deductions taken in error from sick leave, vacation, workers'
compensation, and severance pay may be made at any time. If the
refund of deductions taken in error has not been made within
three calendar years of the calendar year in which the initial
deduction taken in error was received by the association, the
erroneous contributions are considered valid, and the years of
allowable service attributable to the deductions taken in error
must be credited to the member under section 353.01, subdivision
16. Notwithstanding a law to the contrary, the employee may
continue to be a member until termination of public
service. Erroneous employee deductions and erroneous employer
contributions and additional employer contributions for a
person, who otherwise does not qualify for membership under this
chapter, are considered:
(1) valid if the initial erroneous deduction began before
January 1, 1990. Upon determination of the error by the
association, the person may:
(i) continue membership in the association while employed
in the same position for which erroneous deductions were taken;
or
(ii) file a written election to terminate membership and
apply for a refund or defer an annuity under section 353.34;
(2) invalid, if the initial erroneous employee deduction
began on or after January 1, 1990. Upon determination of the
error, the association shall require the employer to discontinue
erroneous employee deductions and erroneous employer
contributions and additional employer contributions. Upon
discontinuance, the association shall refund all erroneous
employee deductions to the person, with interest, under section
353.34, subdivision 2, and all erroneous employer contributions
and additional employer contributions to the employer. No
person may claim a right to continued or past membership in the
association based on erroneous deductions which began on or
after January 1, 1990;
(3) a refund of deductions taken in error from sick leave,
vacation, workers' compensation, and severance pay may be made
at any time.
(b) [ERRONEOUS DISBURSEMENT.] In the event a salary
warrant or check from which a deduction for the retirement fund
was taken has been canceled or the amount of the warrant or
check returned to the funds of the department making the
payment, a refund of the sum deducted, or a portion of it that
is required to adjust the deductions, must be made to the
department or institution.
Sec. 18. Minnesota Statutes 1992, section 353.29,
subdivision 1, is amended to read:
Subdivision 1. [AGE AND ALLOWABLE SERVICE REQUIREMENTS.]
Upon separation from public service, any termination of
membership, a person who has attained normal retirement age and
who received credit for not less than three years of allowable
service is entitled upon application to a retirement
annuity. Such The retirement annuity is known as the "normal"
retirement annuity.
Sec. 19. Minnesota Statutes 1992, section 353.33,
subdivision 1, is amended to read:
Subdivision 1. [AGE, SERVICE, AND SALARY REQUIREMENTS.] A
coordinated member who has at least three years of allowable
service and becomes totally and permanently disabled before
normal retirement age, and after a basic member who has at least
three years of allowable service and who becomes totally and
permanently disabled is entitled to a disability benefit in an
amount under subdivision 3. If the disabled person's public
service has terminated at any time, at least two of the required
three years of allowable service must have been rendered after
last becoming a member. A repayment of a refund may must be
made within six months after the effective date of disability
benefits under subdivision 2 or within six months after the date
of the filing of the disability application, whichever is sooner
later. No purchase of prior service or payment made in lieu of
salary deductions otherwise authorized under 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 under this section is filed.
Sec. 20. Minnesota Statutes 1992, section 353.33,
subdivision 2, is amended to read:
Subd. 2. [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim
or demand for a total and permanent disability benefit must be
initiated by written application in the manner and form
prescribed by the executive director showing compliance with the
statutory conditions qualifying the applicant for a total and
permanent disability benefit and filed with the executive
director. A member or former member who became totally and
permanently disabled during a period of membership may shall
file application for total and permanent disability benefits
within three years next following termination of public service,
but not thereafter. This benefit shall begin 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 said 90-day period, from the
date salary ceased, whichever is later. No Payment shall must
not accrue beyond the end of the month in which entitlement has
terminated. If the disabilitant dies prior to negotiating the
check for the month in which death occurs, payment will be is
made to the surviving spouse, or if none, to the designated
beneficiary, or if none, to the estate. An applicant for total
and permanent disability benefits may file a retirement annuity
application under section 353.29, subdivision 4, simultaneously
with an application for total and permanent disability
benefits. The retirement annuity application is void upon the
determination of the entitlement for disability benefits by the
executive director. If disability benefits are denied, the
retirement annuity application must be initiated and processed.
Sec. 21. Minnesota Statutes 1992, section 353.33,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF BENEFITS.] This disability
benefit is an amount equal to the normal annuity payable to a
member who has reached normal retirement age with the same
number of years of allowable service and the same average
salary, as provided in section 353.29, subdivisions 2 and 3.
A "basic member" shall receive in addition a supplementary
monthly benefit computed in accordance with the following table:
of $25 to age 65 or the five-year anniversary of the effective
date of the disability benefit, whichever is later.
Age when Supplementary
Disabled benefit
Under 56 $50
56 45
57 40
58 35
59 30
60 25
61 20
62 15
63 10
64 5
If the disability benefits provided in under this
subdivision exceed the average salary as defined in section
353.29, subdivision 2, the disability benefits shall must be
reduced to an amount equal to said average salary.
Sec. 22. Minnesota Statutes 1992, section 353.33,
subdivision 4, is amended to read:
Subd. 4. [PROCEDURE TO DETERMINE ELIGIBILITY.] The
applicant shall provide and authorize release of medical
evidence, including all medical records and relevant information
from any source, to support the application for total and
permanent disability benefits. The medical adviser shall verify
the medical evidence and, if necessary for disability
determination, suggest referral of applicant to specialized
medical consultants. The association shall also obtain from the
employer, certification of the member's past public service,
dates of paid sick leave and vacation beyond the last working
day and whether or not sick leave or annual leave has been
allowed. If upon consideration of the medical reports evidence
received and the recommendations of the medical adviser, it is
determined that the applicant is totally and permanently
disabled within the meaning of the law, the association shall
grant the person a disability benefit. The fact that an
employee is placed on leave of absence without compensation
because of disability shall does not bar the person from
receiving a disability benefit.
Sec. 23. Minnesota Statutes 1992, section 353.33,
subdivision 6, is amended to read:
Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The
association shall determine eligibility for continuation of
disability benefits shall be determined by the association,
which has authority to and require periodic examinations and
evaluations of disabled members as frequently as deemed
necessary. The association shall require the disabled member to
provide and authorize release of medical evidence, including all
medical records and information from any source, relating to an
application for continuation of disability benefits. Disability
benefits are contingent upon a disabled person's participation
in a vocational rehabilitation program if the executive director
determines that the disabled person may be able to return to a
gainful occupation. If a member is found to be no longer
totally and permanently disabled and is reinstated to the
payroll, payments must cease the first of the month following
the reinstatement to the payroll.
Sec. 24. Minnesota Statutes 1992, section 353.33,
subdivision 8, is amended to read:
Subd. 8. [REFUSAL OF EXAMINATION OR MEDICAL
EVIDENCE.] Should any such disabled If a person refuse
applying for or receiving a disability benefit refuses to submit
to a medical examination as herein provided, payments by the
fund shall be discontinued, and all rights of the member in any
disability benefit shall be revoked by the board. under
subdivision 6, or fails to provide or authorize the release of
medical evidence under subdivisions 4 and 6, the association
shall cease the application process or discontinue the payment
of a disability benefit, whichever is applicable. Upon receipt
of the requested medical evidence, the association shall resume
the application process or the payment of a disability benefit
upon approval for the continuation, whichever is applicable.
Sec. 25. Minnesota Statutes 1992, section 353.33,
subdivision 11, is amended to read:
Subd. 11. [COORDINATED MEMBER RETIREMENT STATUS AT NORMAL
RETIREMENT AGE.] No person shall be is entitled to receive
disability benefits and a retirement annuity at the same time.
The disability benefits paid to a person hereunder shall
coordinated member must terminate when the person reaches normal
retirement age. If the person coordinated member is still
totally and permanently disabled when the person attains
the upon attaining normal retirement age, the person shall
be coordinated member is deemed to be on retirement
status and,. If the person had elected an optional
annuity pursuant to is elected under subdivision 3a, the
coordinated member shall receive an annuity in accordance with
under the terms of the optional annuity previously elected, or,
if the person had not elected an optional annuity pursuant to is
not elected under subdivision 3a, the coordinated member may at
the option of the person either elect to receive either a normal
retirement annuity as provided in under section 353.29 or normal
retirement an annuity equal to the disability benefit paid
before the person reached coordinated member reaches normal
retirement age, whichever amount is greater, or elect to receive
an optional annuity as provided in under section 353.30,
subdivision 3. Any The annuity of a disabled person coordinated
member who attains normal retirement age shall have the
annuity must be computed in accordance with under the law in
effect upon attainment of that normal retirement age. Election
of an optional annuity shall must be made prior to before the
person attaining the coordinated member attains normal
retirement age. If an optional annuity is elected, the election
shall be is effective on the date on which the person attains
normal retirement age and the optional annuity shall begin
begins to accrue on the first day of the month next following
the month in which the person attains that age.
Sec. 26. Minnesota Statutes 1992, section 353.33, is
amended by adding a subdivision to read:
Subd. 12. [BASIC DISABILITY SURVIVOR BENEFITS.] If a basic
member who is receiving a disability benefit under subdivision 3:
(a) dies before attaining age 65 or within five years of
the effective date of the disability, whichever is later, the
surviving spouse shall receive a survivor benefit under section
353.31, unless the surviving spouse elected to receive a refund
under section 353.32, subdivision 1.
(b) is living at age 65 or five years after the effective
date of the disability, whichever is later, the basic member may
continue to receive a normal disability benefit, or elect a
joint and survivor optional annuity under section 353.31,
subdivision 1b. The election of the joint and survivor optional
annuity must occur within 90 days of age 65 or the five-year
anniversary of the effective date of the disability benefit,
whichever is later. The optional annuity takes effect on the
first of the month following the month in which the person
attains age 65 or reaches the five-year anniversary of the
effective date of the disability benefit, whichever is later.
(c) if there is a dependent child or children under
paragraph (a) or (b), the association shall grant a dependent
child benefit under section 353.31, subdivision 1b, paragraph
(b).
Sec. 27. Minnesota Statutes 1992, section 353.34,
subdivision 1, is amended to read:
Subdivision 1. [REFUND OR DEFERRED ANNUITY.] A former
member who ceases to be a public employee by reason of
termination of public service, or who is on a continuous layoff
for more than 120 calendar days, is entitled to a refund of
accumulated employee deductions under subdivision 2, or to a
deferred annuity under subdivision 3. An active member of a
fund enumerated in section 356.30, subdivision 3, clause (7),
(8), or (14), who terminates public service in any of those
funds and becomes a member of another fund enumerated in those
clauses may receive a refund of employee contributions plus six
percent interest compounded annually from the fund in which the
member terminated service. Application for a refund may not be
made prior to the date of termination of public service or the
expiration of 120 days of layoff termination of membership,
whichever is sooner. A refund must be paid within 120 days
following receipt of the application unless the applicant has
again become a public employee required to be covered by the
association.
Sec. 28. Minnesota Statutes 1992, section 353.34,
subdivision 3, is amended to read:
Subd. 3. [DEFERRED ANNUITY; ELIGIBILITY; COMPUTATION.] A
member with at least three years of allowable service when
termination of public service or termination of membership
occurs has the option of leaving the accumulated deductions in
the fund and being entitled to a deferred retirement annuity
commencing at normal retirement age or to a deferred early
retirement annuity under section 353.30, subdivision 1, 1a, 1b,
1c, or 5. The deferred annuity must be computed under section
353.29, subdivisions 2 and 3, on the basis of the law in effect
on the date of termination of public service or termination of
membership and must be augmented as provided in section 353.71,
subdivision 2. A former member qualified to apply for a
deferred retirement annuity may revoke this option at any time
before the commencement of deferred annuity payments by making
application for a refund. The person is entitled to a refund of
accumulated member contributions within 30 days following date
of receipt of the application by the executive director.
Sec. 29. Minnesota Statutes 1992, section 353.35, is
amended to read:
353.35 [CONSEQUENCES OF REFUND; REPAYMENT, RIGHTS
RESTORED.]
Subdivision 1. [REFUND RIGHTS.] When any former member
accepts a refund, all existing service credits and all rights
and benefits to which the person was entitled prior to the
acceptance of the refund must terminate and must not again. The
rights and benefits of a former member must not be restored
until the person returns to active service and acquires at least
18 six months of allowable service credit after taking the last
refund and repays all refunds the refund or refunds taken and
interest received under section 353.34, subdivisions 1 and 2,
plus interest at an annual rate of 8.5 percent compounded
annually. If the person elects to restore service credit in a
particular fund from which the person has taken more than one
refund, the person must repay all refunds to that fund. All
refunds must be repaid within six months of the last date of
termination of public service.
If more than one refund has been taken, the person may
repay all refunds or only the refund for the fund in which the
person had most recently been a member, with interest at an
annual rate of 8.5 percent compounded annually. All refunds
must be repaid within six months of the last date of termination
of public service.
Subd. 2. [REFUND REPAYMENT.] A person who receives a
refund of accumulated employee deductions, plus interest, may
repay the total amount of the refund including the interest,
within 30 days of the date the refund was issued, to retain
allowable service.
Sec. 30. Minnesota Statutes 1992, section 353.37, is
amended to read:
353.37 [PUBLIC REEMPLOYMENT OF ANNUITANT.]
Subdivision 1. [EFFECT ON ANNUITY SALARY MAXIMUMS.] (a)
The annuity of a person otherwise eligible for an annuity under
this chapter must be suspended under subdivision 2 or reduced
under subdivision 3, whichever results in the higher annual
annuity amount, if the person reenters public service as a
nonelective employee of a governmental subdivision in a position
covered by this chapter, if earned compensation and salary for
the reemployment service equals or exceeds the annual 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, in any calendar year. In the event that
If the person has not yet reached the minimum age for the
receipt of social security benefits, the maximum earnings salary
for the person are is equal to the annual maximum earnings
allowable for the minimum age for the receipt of social security
benefits.
Subd. 2. [SUSPENSION OF ANNUITY.] The association shall
suspend the annuity on the first of the month after the month in
which the salary of the reemployed annuitant exceeds the
maximums set in subdivision 1, based only on those months in
which the annuitant is actually employed in nonelective service
in a position covered under this chapter. An annuitant who is
elected to public office after retirement may hold office and
receive an annuity otherwise payable from the association.
(b) Subd. 3. [REDUCTION OF ANNUITY.] The association shall
reduce the amount of the reduction is annuity as follows:
(1) (a) for a person who has not reached normal retirement
age, one-half of the amount in excess of the applicable
reemployment income maximum specified in this under subdivision
1;
(2) (b) for a person who has reached normal retirement age,
but has not reached age 70, one-third of the amount in excess of
the applicable reemployment income maximum specified in this
under subdivision 1.
(c) for a person who has reached age 70, or for income
salary earned through service in an elected office, there is no
reduction upon reemployment, regardless of income. Any
reduction must be made from the annuity payable for the calendar
year immediately following the calendar year in which the excess
amount was earned.
Subd. 4. [RESUMPTION OF ANNUITY.] The association shall
resume paying a full annuity to the reemployed annuitant at the
start of each calendar year until the salary exceeds the
maximums under subdivision 1, or on the first of the month
following termination of public service or termination of
membership, whichever is sooner. The executive director may
adopt policies regarding the suspension and reduction of
annuities under this section.
(c) Subd. 5. [EFFECT ON ANNUITY.] Except as provided
in paragraphs (a) and (b) under this section, public service
performed by an annuitant subsequent to retirement under this
chapter does not increase or decrease the amount of an annuity.
The annuitant may shall not make any further contributions to
the association's defined benefit plan by reason of this
subsequent public service.
Sec. 31. Minnesota Statutes 1992, section 353.64,
subdivision 1, is amended to read:
Subdivision 1. [POLICE AND FIRE FUND MEMBERSHIP.] Any (a)
A person who prior to July 1, 1961, was a member of the police
and fire fund, by virtue of being a police officer or
firefighter, shall, as long as the person remains in either
position, be deemed to continue membership in the fund.
Any (b) A person who was employed by a governmental
subdivision as a police officer and was a member of the police
and fire fund on July 1, 1978, by virtue of being a police
officer as defined by this section on that date shall be
entitled, and if employed by the same governmental subdivision
in a position in the same department in which the person was
employed on that date, to shall continue membership in the fund
whether or not that person has the power of arrest by warrant
after that date.
Any (c) A person who was employed by a governmental
subdivision as a police officer or a firefighter, whichever
applies, was an active member of the local police or salaried
firefighters relief association located in that governmental
subdivision by virtue of that employment as of the effective
date of the consolidation as authorized by sections 353A.01 to
353A.10, and has elected coverage by the public employees police
and fire fund benefit plan, shall be considered to be become a
member of the police and fire fund after that date if employed
by the same governmental subdivision in a position in the same
department in which the person was employed on that date.
(d) Any other employee serving on a full-time basis as a
police officer or firefighter on or after July 1, 1961, shall
become a member of the public employees police and fire fund.
Any (e) An employee serving on less than a full-time basis
as a police officer shall become a member of the public
employees police and fire fund only after a resolution stating
that the employee should be covered by the police and fire fund
is adopted by the governing body of the governmental subdivision
employing the person declaring that the position which the
person holds is that of a police officer.
Any (f) An employee serving on less than a full-time basis
as a firefighter shall become a member of the public employees
police and fire fund only after a resolution stating that the
employee should be covered by the police and fire fund is
adopted by the governing body of the governmental subdivision
employing the person declaring that the position which the
person holds is that of a firefighter.
Any (g) A police officer or firefighter employed by a
governmental subdivision who by virtue of that employment is
required by law to be a member of and to contribute to any
police or firefighter relief association governed by section
69.77 which has not consolidated with the public employees
police and fire fund and any police officer or firefighter of a
relief association that has consolidated with the association
for which the employee has not elected coverage by the public
employees police and fire fund benefit plan as provided in
sections 353A.01 to 353A.10 shall not be become a member of this
the public employees police and fire fund.
Sec. 32. Minnesota Statutes 1992, section 353.64,
subdivision 5a, is amended to read:
Subd. 5a. A member of the police and fire fund continues
to be a member of that fund if transferred to a different
position with associated police or fire department functions in
the same department or a related department in the same
governmental subdivision provided the governing body sends a
copy of a resolution to that effect to the association and the
member meets the eligibility criteria under subdivision 2 or 3.
A police and fire fund member who is elected or assumes an
appointive position, including but not limited to, the positions
of city council member, city manager, and finance director is
not eligible to retain membership in the public employees police
and fire fund.
Sec. 33. Minnesota Statutes 1992, section 353.64, is
amended by adding a subdivision to read:
Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN
TRANSIT COMMISSION POLICE OFFICERS.] A person who is employed as
a full-time police officer on or after the first day of the
first payroll period after the effective date of this section by
the metropolitan transit commission and who is not eligible for
coverage under the agreement with the Secretary of the federal
Department of Health and Human Services making the provisions of
the federal Old Age, Survivors, and Disability Insurance Act
because the person's position is excluded from application under
United States Code, sections 418(d)(5)(A) and 418(d)(8)(D), and
under section 355.07, is a member of the public employees police
and fire fund and is considered to be a police officer within
the meaning of this section. The metropolitan transit
commission shall deduct the employee contribution from the
salary of each full-time police officer as required by section
353.65, subdivision 2, shall make the employer contribution for
each full-time police officer as required by section 353.65,
subdivision 3, and shall meet the employer recording and
reporting requirements in section 353.65, subdivision 4.
Sec. 34. Minnesota Statutes 1992, section 353.656,
subdivision 1, is amended to read:
Subdivision 1. [IN LINE OF DUTY; COMPUTATION OF BENEFITS.]
Any A member of the police and fire fund less than 55 years of
age, who becomes disabled and physically unfit to perform duties
as a police officer or firefighter subsequent to June 30, 1973,
as a direct result of an injury, sickness, or other disability
incurred in or arising out of any act of duty, which has or is
expected to render the member physically or mentally unable to
perform duties as a police officer or firefighter for a period
of at least one year, shall receive disability benefits during
the period of such disability. The benefits must be in an
amount equal to 50 percent of the "average salary" pursuant to
subdivision 3 plus an additional 2-1/2 percent of said average
salary for each year of service in excess of 20 years. Should
disability under this subdivision occur before the member has at
least five years of allowable service credit in the police and
fire fund, the disability benefit must be computed on the
"average salary" from which deductions were made for
contribution to the police and fire fund.
Sec. 35. Minnesota Statutes 1992, section 353.656,
subdivision 1a, is amended to read:
Subd. 1a. [OPTIONAL ANNUITY ELECTION.] A disabled member
of the police and fire fund may elect to receive the normal
disability benefit or an optional annuity as provided in section
353.30, subdivision 3. The election of an optional
annuity shall may be made prior to commencement of payment of
the disability benefit or as specified under subdivision 6a.
The optional annuity shall begin to accrue on the same date as
provided for the disability benefit.
(1) If the person who is not the spouse of the member is
named as beneficiary of the joint and survivor optional annuity,
the person is eligible to receive the annuity only if the
spouse, on the disability application form prescribed by the
executive director, permanently waives the surviving spouse
benefits under section 353.657, subdivisions 2 and 2a. If the
spouse of the member refuses to permanently waive the surviving
spouse coverage, the selection of a person other than the spouse
of the member as a joint annuitant is invalid.
(2) If the spouse of the member permanently waives survivor
coverage, the dependent child or children, if any, continue to
be eligible for survivor benefits, including the minimum benefit
under section 353.657, subdivision 3. The designated optional
annuity beneficiary may draw the monthly benefit; however, the
amount payable to the dependent child or children and joint
annuitant must not exceed the 70 percent maximum family benefit
under section 353.657, subdivision 3. If the maximum is
exceeded, the benefit of the joint annuitant must be reduced to
the amount necessary so that the total family benefit does not
exceed the 70 percent maximum family benefit amount.
(3) If the spouse is named as the beneficiary of the joint
and survivor optional annuity, the spouse may draw the monthly
benefit; however, the amount payable to the dependent child or
children and the joint annuitant must not exceed the 70 percent
maximum family benefit under section 353.657, subdivision 3. If
the maximum is exceeded, each dependent child will receive ten
percent of the member's specified average monthly salary, and
the benefit to the joint annuitant must be reduced to the amount
necessary so that the total family benefit does not exceed the
70 percent maximum family benefit amount. The joint and
survivor optional annuity must be restored to the surviving
spouse, plus applicable postretirement adjustments under section
356.41, as the dependent child or children become no longer
dependent under section 353.01, subdivision 15.
Sec. 36. Minnesota Statutes 1992, section 353.656,
subdivision 3, is amended to read:
Subd. 3. [NONDUTY DISABILITY BENEFIT.] Any member who
becomes disabled after not less than one year 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 of that sickness or injury the member
has been or is expected to be unable to perform duties as a
police officer or firefighter for a period of at least one year,
is entitled to receive a disability benefit. The benefit must
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 under section 353.651. If a disability under
this subdivision occurs after one but in less than 15 years of
allowable service, the disability benefit must be the same as
though the member had at least 15 years service. 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. 37. Minnesota Statutes 1992, section 353.656,
subdivision 5, is amended to read:
Subd. 5. [PROOF OF DISABILITY.] No A disability benefit
payment shall must not be made except upon adequate proof
furnished to the association of the existence of such
disability, and during the time when any such disability
benefits are being paid, the association shall have has the
right, at reasonable times, to require the disabled member to
submit proof of the continuance of the disability
claimed. Payment of a disability benefit must cease the first
of the month following reinstatement to a position covered by
the public employees police and fire fund. A person applying
for or receiving a disability benefit shall provide or authorize
release of medical evidence, including all medical records and
information from any source, relating to an application for
disability benefits.
Sec. 38. Minnesota Statutes 1992, section 353.656, is
amended by adding a subdivision to read:
Subd. 5a. [CESSATION OF DISABILITY BENEFIT.] The
association shall cease the payment of an in-line-of-duty or
nonduty disability benefit the first of the month following the
reinstatement of a member to full time or less than full-time
service in a position covered by the police and fire fund.
Sec. 39. Minnesota Statutes 1992, section 353.656, is
amended by adding a subdivision to read:
Subd. 6a. [DISABILITY SURVIVOR BENEFITS.] If a member who
is receiving a disability benefit under subdivision 1 or 3:
(a) dies before attaining age 65 or within five years of
the effective date of the disability, whichever is later, the
surviving spouse shall receive a survivor benefit under section
353.657, subdivision 2 or 2a, unless the surviving spouse
elected to receive a refund under section 353.32, subdivision
1. The joint and survivor optional annuity under subdivision 2a
is based on the minimum disability benefit under subdivision 1
or 3, or the deceased member's allowable service, whichever is
greater.
(b) is living at age 65 or five years after the effective
date of the disability, whichever is later, the member may
continue to receive a normal disability benefit, or the member
may elect a joint and survivor optional annuity under section
353.30. The optional annuity is based on the minimum disability
benefit under subdivision 1 or 3, or the member's allowable
service, whichever is greater. The election of this joint and
survivor annuity must occur within 90 days of age 65 or the
five-year anniversary of the effective date of the disability
benefit, whichever is later. The optional annuity takes effect
the first of the month following the month in which the person
attains age 65 or reaches the five-year anniversary of the
effective date of the disability benefit, whichever is later.
(c) if there is a dependent child or children under
paragraph (a) or (b), the association shall grant a dependent
child benefit under section 353.657, subdivision 3.
Sec. 40. Minnesota Statutes 1992, section 353A.08,
subdivision 1, is amended to read:
Subdivision 1. [ELECTION OF COVERAGE BY CURRENT RETIREES.]
A person who is receiving a service pension, disability benefit,
or survivorship benefit is eligible to elect benefit coverage
provided under the relevant provisions of the public employees
police and fire fund benefit plan or to retain benefit coverage
provided under the relief association benefit plan in effect on
the effective date of the consolidation. The relevant
provisions of the public employees police and fire fund benefit
plan for the person electing that benefit coverage shall be are
limited to participation in the Minnesota postretirement
investment fund for any future postretirement adjustments in
based on the amount of the benefit or pension payable as of on
December 31, if December 31 is the effective date of
consolidation, or on the December 1 following the effective date
of the consolidation, the date as of which pension or benefit
payments are to be paid and the termination of a survivor or
disability benefit or suspension of a retirement annuity before
the death of the person if other than December 31. The
survivorship benefit payable on behalf of any service pension or
disability benefit recipient who elects benefit
coverage provided under the relevant provisions of the public
employees police and fire fund benefit plan must be calculated
under the relief association benefit plan in effect on the
effective date of the consolidation and is subject to
participation in the Minnesota postretirement investment fund
for any future postretirement adjustments in based on the amount
of the survivorship benefit payable.
By electing the public employees police and fire fund
benefit plan, a current service pension or disability benefit
recipient who, as of the first January 1 occurring after the
effective date of consolidation, has been receiving the pension
or benefit for at least seven months, or any survivor benefit
recipient who, as of the first January 1 occurring after the
effective date of consolidation, has been receiving the benefit
on the person's own behalf or in combination with a prior
applicable service pension or disability benefit for at least
seven months is eligible to receive a partial adjustment payable
from the Minnesota postretirement investment fund under section
11A.18, subdivision 9.
The election by any pension or benefit recipient must be
made on or before the deadline established by the board of the
public employees retirement association in a manner that
recognizes the number of persons eligible to make the election
and the anticipated time required to conduct any required
benefit counseling.
Sec. 41. Minnesota Statutes 1992, section 353A.08,
subdivision 3, is amended to read:
Subd. 3. [ELECTION OF COVERAGE BY ACTIVE MEMBERS.] Any A
person who is employed as a police officer or as a firefighter
other than a volunteer firefighter, whichever applies, by the
municipality and is an active member of the relief association
shall have has the option to elect to have benefit coverage
provided under the relevant provisions of the public employees
police and fire fund benefit plan or to retain benefit coverage
provided by the relief association benefit plan in effect on the
effective date of consolidation. The relevant provisions of the
public employee police and fire fund benefit plan for the person
electing that benefit coverage shall be are the relevant
provisions of the public employee police and fire fund benefit
plan applicable to retirement annuities, disability benefits,
and survivor benefits, including participation in the Minnesota
postretirement investment fund, but excluding any provisions
governing the purchase of credit for prior service or making
payments in lieu of member contribution deductions applicable to
any period which occurred before the effective date of
consolidation.
An active member shall be is eligible to make an election
at one of the following times:
(a) on or before the date occurring 180 days after within
six months of the effective date of consolidation;
(b) after between the date on which the active member
attains the age of 49 years and six months and before the date
on which the active member attains the age of 50 years; or
(c) on the date on which the active member terminates
active employment as a police officer or firefighter for
purposes of receiving a service pension or disability benefits,
or within 90 days of the date the member terminates active
employment and defers receipt of a service pension, whichever
applies, with the municipality in which the local relief
association subject to consolidation was located.
Sec. 42. Minnesota Statutes 1992, section 353A.08,
subdivision 5, is amended to read:
Subd. 5. [RETURNING DISABILITANTS; REEMPLOYED ANNUITANTS.]
Any A person who is receiving a disability benefit from a
consolidating local relief association as of the effective date
of the consolidation and who recovers sufficiently from that
disability following the effective date of the consolidation to
allow for a return to active employment as a police officer or
firefighter, whichever applies, with the municipality in which
the consolidating relief association was located shall retain
retains eligibility to the local relief association benefit plan
only and shall is not be entitled to elect the public employees
police and fire fund benefit plan as an active member, even if
the public employees police and fire fund benefit plan was
elected as a benefit recipient.
Any A person who becomes disabled following the effective
date of the consolidation shall be is entitled to make a benefit
plan coverage election as an active member upon the termination
of active employment and commencement of the disability benefit
and, upon any return to active service, shall retain retains
benefit plan coverage by the previously selected benefit plan
coverage election.
Any A person who retired from a consolidating local relief
association before the effective date of the consolidation or
retires after the effective date of the consolidation, who has
elected coverage by the public employees police and fire fund
benefit plan and who returns to active employment with an
employing unit covered by the public employees retirement
association following the effective date of consolidation shall
be is subject to the provisions of section 353.37, subdivision 1.
Sec. 43. Minnesota Statutes 1992, section 353A.10,
subdivision 4, is amended to read:
Subd. 4. [REFUND OF CERTAIN MEMBER CONTRIBUTION AMOUNTS.]
(a) The following persons are entitled to receive a refund of
certain member contribution amounts under paragraph (b):
(1) A person who was an active member of a local police or
firefighters relief association upon its consolidation with the
public employees retirement association, who does not elect the
type of benefit coverage provided by the public employees police
and fire benefit plan and who begins receipt of a service
pension or a disability benefit from the consolidation account,
or who defers receipt of a service pension under the local
relief association plan upon application for the refund of
excess contributions; or
(2) A person who is the surviving spouse, or if none, the
surviving minor child, or if none, the designated beneficiary of
a person who was an active member of a local police or
firefighters relief association upon its consolidation with the
fund, who did not elect the type of benefit coverage provided by
the public employees police and fire benefit plan and who dies
prior to receiving a service pension or a disability benefit
from the consolidation account.
(b) The refund of certain member contribution amounts is
the amount by which any member contributions made to the
consolidation account under section 353A.09, subdivision 4,
exceeds the amount of employee or member contributions which
would have been payable to the local relief association as
provided in the benefit plan in effect on the effective date of
consolidation, plus interest at the rate of six percent,
compounded quarterly, from the date on which the contribution
was made until the first of the month in which the refund is
paid.
(c) A refund of certain contribution amounts must occur as
soon as practicable following receipt of a valid application
from the appropriate person and or the commencement of receipt
of the service pension or disability benefit or official
notification of death, whichever applies.
Sec. 44. Minnesota Statutes 1992, section 353B.11,
subdivision 6, is amended to read:
Subd. 6. [DISCONTINUATION; SURVIVING SPOUSE BENEFIT.] (a)
Except as specified in paragraph (b) or (c), a surviving spouse
benefit shall terminate terminates upon the death or the
subsequent marriage of the person entitled to receive or
receiving a surviving spouse benefit.
(b) A surviving spouse benefit shall terminate terminates
upon the subsequent marriage of the person entitled to receive
or receiving a surviving spouse benefit but shall recommence
recommences at the appropriate amount without any retroactive
payments in the event of the termination of the subsequent
marriage for any reason for the former members of the following
consolidating relief associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association;
(3) Duluth firefighters relief association;
(4) (3) Minneapolis fire department relief association;
(5) (4) St. Paul fire department relief association; and
(6) (5) St. Paul police relief association.
(c) A surviving spouse benefit shall terminate only upon
the death of the person entitled to receive or receiving a
surviving spouse benefit for the former members of the following
consolidating relief associations:
(1) Albert Lea police relief association;
(2) Anoka police relief association;
(2) (3) Buhl police relief association;
(3) (4) Chisholm fire department relief association;
(4) (5) Chisholm police relief association;
(5) (6) Crookston fire department relief association;
(6) (7) Duluth police relief association;
(7) (8) Faribault fire department relief association;
(8) (9) Hibbing firefighters relief association;
(9) (10) Hibbing police relief association;
(10) (11) Mankato fire department relief association;
(11) (12) Red Wing fire department relief association;
(12) (13) Red Wing police relief association;
(13) (14) Rochester fire department relief association;
(14) (15) Rochester police relief association;
(15) (16) St. Cloud fire department relief association;
(16) (17) St. Louis Park fire department relief
association;
(17) (18) St. Louis Park police relief association;
(18) (19) South St. Paul firefighters relief association;
(19) (20) South St. Paul police relief association;
(20) (21) West St. Paul firefighters relief association;
(21) (22) Winona fire department relief association; and
(22) (23) Winona police relief association.
Sec. 45. Minnesota Statutes 1992, section 353C.08,
subdivision 1, is amended to read:
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 353C.06, subdivision 2, plus an
additional 2.5 percent for each year of covered service in
excess of 20 years.
Sec. 46. Minnesota Statutes 1992, section 353C.08,
subdivision 2, is amended to read:
Subd. 2. [NONDUTY DISABILITY QUALIFICATION REQUIREMENTS.]
A local government correctional employee who has at least one
year of covered service, and who, 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
353C.06, subdivision 3, and as though the employee had at least
ten years of covered correctional service.
Sec. 47. Minnesota Statutes 1992, section 353D.02, is
amended to read:
353D.02 [ELECTION OF COVERAGE.]
Eligible elected local government officials may elect to
participate in the defined contribution plan after being elected
or appointed to elective public office by filing a membership
application on a form prescribed by the executive director of
the association authorizing contributions to be deducted from
the elected official's salary. Participation begins on the
first day of the pay period for which the contributions were
deducted or, if pay period coverage dates are not provided, the
date on which the membership application or contributions are
received in the office of the association, whichever is received
first, provided further that the membership application is
received by the association within 60 days of the receipt of the
contributions. If the membership application is not received,
the elected official is not a participant in the plan and may
request a refund under section 353D.04, subdivision 2. An
election to participate in the plan is irrevocable revocable
during incumbency.
Each public ambulance service or privately operated
ambulance service with eligible personnel that receives an
operating subsidy from a governmental entity 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 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, whichever date is later. An
election by a service or an individual is irrevocable revocable.
Sec. 48. Minnesota Statutes 1992, section 353D.04, is
amended to read:
353D.04 [CONTRIBUTIONS AND DEDUCTIONS IN ERROR.]
Subdivision 1. [CONTRIBUTIONS.] (a) Contributions made by
or on behalf of a participating elected local government
official must be remitted to the public employees retirement
association and credited to the individual account established
for the participant.
(b) Ambulance service contributions must be remitted on a
regular basis to the association together with any member
contributions paid or withheld. Those contributions must be
credited to the individual account of each participating member.
Subd. 2. [DEDUCTIONS IN ERROR.] The executive director may
adopt policies and procedures regarding deductions taken totally
or partially in error by the employer from the salary of an
elected official. and contributions made by the employer may be
refunded upon request to the elected official and the employer.
(a) In the case of a total refund, the association shall
refund the value of an elected official's account, including
investment earnings, the accumulated employee deductions,
accumulated employer contributions, less administrative expenses
under section 353D.05, subdivision 3.
(b) In the case of a partial refund, the association shall
refund the amount of the actual error, without interest, less
the administrative expenses under section 353D.05, subdivision
3, from the employer share.
Sec. 49. Minnesota Statutes 1992, section 353D.05,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATIVE EXPENSES.] The executive director
of the association shall annually set an amount to recover the
costs of the association in administering the public employees
defined contribution plan. If that are not met by the amount
recovered under section 11A.17 does not meet the annual costs of
administering the defined contribution plan, the executive
director may assess an additional amount up to two percent of
the employer and employee contributions.
Sec. 50. Minnesota Statutes 1992, section 353D.07,
subdivision 2, is amended to read:
Subd. 2. [PAYMENT OF BENEFITS.] Withdrawal of a benefit
based on individual participant contributions and employer
contributions plus accrued investment income is payable upon the
death or termination of a participant but not at the time an
individual revokes membership in the defined contribution plan
under section 353D.02. An application by or on behalf of the
participant must be filed before any payment of benefits may be
made.
Sec. 51. Minnesota Statutes 1992, section 356.302,
subdivision 4, is amended to read:
Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A
disabled member of a covered retirement plan who has credit for
allowable service in a combination of public safety employee
retirement plans is entitled to a combined service disability
benefit if the member:
(1) is less than 55 years old on the date of application
for the disability benefit;
(2) has become occupationally disabled;
(3) (2) has credit for allowable service in any combination
of public safety employee retirement plans totaling at least one
year if the disability is duty-related or totaling at least
three years if the disability is not duty-related;
(4) (3) has credit for at least six months of allowable
service with the current public safety employee retirement plan
before the commencement of the disability; and
(5) (4) is not receiving a retirement annuity or disability
benefit from any covered public safety employee retirement plan
at the time of the commencement of the disability.
Sec. 52. Minnesota Statutes 1992, section 356.453, is
amended to read:
356.453 [PURCHASE OF PRIOR SERVICE.]
Any A person who is excluded from pension coverage pursuant
to under the provisions of Laws 1978, chapter 720, but who
subsequently becomes employed in unsubsidized public employment
with public pension plan or fund coverage, whether with the same
public employer which provided the subsidized employment or
another public employer, shall be is entitled to purchase
service credit for that period of prior subsidized public
employment, other than a period of prior subsidized public
employment for which a repayment of a refund pursuant to under
section 356.452 is made, with the public pension plan or fund
which, except for the exclusion provided for by Laws 1978,
chapter 720, would have provided pension coverage for the
subsidized employment. Payment shall must include all employee
and employer contributions at the rates and on the salary in
effect when the subsidized employment was rendered plus interest
at the rate of six 8.5 percent per annum compounded annually
from the year purchased to the date payment is made; provided,
however, that the employer for the unsubsidized employment, the
employer for the subsidized employment, or the applicable
federal Comprehensive Employment and Training Act prime sponsor
from funds provided under the federal Comprehensive Employment
and Training Act, as funds permit, may pay the employer
contribution and the employer additional contribution, if any,
plus interest at the specified rate. The public employer which
provided the subsidized employment shall provide whatever
documentation of periods of subsidized public employment and the
salary received that the pension plan or fund shall require.
Payment shall must be made in one lump sum by the date of
retirement and no service credit with respect to the
payment shall may be granted until payment is received by the
pension plan or fund.
Sec. 53. Minnesota Statutes 1992, section 356.61, is
amended to read:
356.61 [LIMITATION ON PUBLIC EMPLOYEE RETIREMENT
ANNUITIES.]
Notwithstanding any provision of law, bylaws, articles of
incorporation, retirement and disability allowance plan
agreements or retirement plan contracts to the contrary, no
person who has pension or retirement coverage by a public
pension plan shall be is entitled to receive a monthly
retirement annuity or disability benefit which, at the time of
commencement of the retirement annuity or disability benefit,
exceeds the lesser of:
(a) the amount of the final monthly salary of the person;
or
(b) 1/12 of the amount of the annual benefit permitted by
the terms of section 415 of the Internal Revenue Code with
respect to a participant in a plan qualified under section
401(a) of the Internal Revenue Code, as amended through December
31, 1982.
The benefit limitation of clause (b) is to be determined on
the date the benefit is initially payable or on the date the
employee terminated employment, if earlier. The benefit
limitation on any date is the benefit limitation for the
limitation year in which the date occurs. The limitations apply
only to the annual benefit which is derived from employer
contributions. Mandatory and voluntary employee contributions,
if any, are treated as a separate defined contribution plan
maintained by the employer which is subject to the limitations
placed on annual additions to defined contribution plans.
The maximum annual benefit of clause (b) for any limitation
year is the lesser of (1) or (2) below:
(1) A dollar limitation of $90,000, adjusted as of January
1 of each calendar year to the dollar limitation as determined
for that year by the commissioner of Internal Revenue. The
amount determined for any year will apply to limitation years
ending with or within that calendar year.
(2) A compensation limitation of 100 percent of the average
of compensation paid or made available to the participant by the
employer during those three consecutive calendar years of
employment, or actual number of consecutive calendar years of
employment if employed less than three consecutive years, which
give the highest average. Compensation means any compensation
which is includable in the employee's gross income.
A benefit shall be is deemed not to exceed the maximum
benefit limitation of clause (b) if:
(1) the retirement benefits payable under the plan and
under any other defined benefit plans of the employer do not
exceed the $10,000 limit set in section 415(b)(4) of the
Internal Revenue Code for the plan year, or for any prior plan
year, and
(2) the employer has not at any time maintained a defined
contribution plan in which the employee participated.
A public pension plan is any Minnesota public pension plan
or fund which provides pension or retirement coverage for public
employees other than volunteer firefighters, including any plan
or fund enumerated in sections 356.20, subdivision 2, or 356.30,
subdivision 3, any local police or firefighter's relief
association to which section 69.77 applies, or any retirement or
pension plan or fund, including a supplemental retirement plan
or fund, established, maintained or supported by any
governmental subdivision or public body whose revenues are
derived from taxation, fees, assessments or from other public
sources. Final monthly salary is the hourly rate of
compensation received by the person on account of the most
recent public employment for the final pay period occurring
prior to retirement multiplied by 174.
The figure for the monthly retirement annuity or disability
benefit to be used for the calculation of this limitation shall
must not include any reduction or adjustment required for
retirement prior to the normal retirement age or required for
the election of an optional annuity.
If the figure for the monthly retirement annuity or
disability benefit exceeds the limit contained in this section,
the annuity or benefit payable shall must be reduced
appropriately.
The managing board of each public pension plan from which a
retirement annuity or disability benefit is payable shall, at
the time that the retirement annuity or disability benefit
commences, contact all other public pension plans to determine
whether or not the recipient of the retirement annuity or
disability benefit is also receiving or is entitled to receive a
retirement annuity or disability benefit from any other public
pension plan. If a person is entitled to receive or is
receiving a retirement annuity or disability benefit from more
than one public pension plan, all retirement annuities or
disability benefits from all public pension plans shall must be
totaled in determining whether or not the limitation shall
apply; provided however, that the limitation shall be based on
the highest final monthly salary received by the individual from
any plan applies. Any A reduction in the amount of the
retirement annuity or disability benefit required pursuant to
under this section shall be is made by the public pension plan
which provided retirement coverage for the most recent period of
service.
Sec. 54. [REPEALER.]
Minnesota Statutes 1992, section 353.656, subdivision 6, is
repealed retroactive to October 16, 1992.
Sec. 55. [EFFECTIVE DATE.]
Sections 1 to 18, 20, 22 to 24, 27 to 29, 31 to 33, 37, 38,
40 to 44, 47 to 50, and 53 are effective July 1, 1993. Section
30 is effective January 1, 1993. Sections 19, 21, 25, 26, 34,
36, 39, 45, 46, 51, and 54 are effective retroactively to
October 16, 1992. Section 52 is effective May 1, 1994.
ARTICLE 5
TEACHERS RETIREMENT ASSOCIATION
Section 1. Minnesota Statutes 1992, section 354.35, is
amended to read:
354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE AGE
65.]
Any coordinated member who retires before age 65 may elect
to receive an optional accelerated retirement annuity from the
association which provides for different annuity amounts over
different periods of retirement. The election of this optional
accelerated retirement annuity is exercised by making an
application to the board on a form provided by the board
executive director. The optional accelerated retirement annuity
must take the form of an annuity payable for the period before
the member attains age 65 in a greater amount than the amount of
the annuity calculated under section 354.44 on the basis of the
age of the member at retirement, but the optional accelerated
retirement annuity must be the actuarial equivalent of the
member's annuity computed on the basis of the member's age at
retirement. The greater amount must be paid until the retiree
reaches age 65 and at that time the payment from the association
must be reduced. For each year the retiree is under age 65, up
to five percent of the total life annuity required reserves may
be used to accelerate the optional retirement annuity under this
section. At retirement, members who retire before age 62 may
elect to have the age specified in this section be 62 instead of
65. This election is irrevocable and may be made only once on
the application form provided by the executive director. The
method of computing the optional accelerated retirement annuity
provided in this section is established by the board of
trustees. In establishing the method of computing the optional
accelerated retirement annuity, the board of trustees must
obtain the written approval of the commission-retained actuary.
The written approval must be a part of the permanent records of
the board of trustees.
Sec. 2. Minnesota Statutes 1992, section 354.46,
subdivision 1, is amended to read:
Subdivision 1. [BASIC PROGRAM; BENEFITS FOR SPOUSE AND
CHILDREN OF TEACHER.] If a basic member who has at least 18
months of allowable service credit and who has an average salary
as defined in section 354.44, subdivision 6, equal to or greater
than $75 dies prior to retirement or if a former basic member
who, at the time of death, was totally and permanently disabled
and receiving disability benefits pursuant to section 354.48
dies prior to attaining the age of 65 years before attaining age
65 or reaching the five-year anniversary of the effective date
of the disability benefit, whichever is later, the surviving
dependent spouse and dependent children of the basic member or
former basic member shall be entitled to receive a monthly
benefit as follows:
(a) Surviving
dependent
spouse .....50 percent of the basic member's monthly
average salary paid in the last full
fiscal year preceding death
(b) Each
dependent
child ......ten percent of the basic member's
monthly average salary paid in the
last full fiscal year preceding death
Payments for the benefit of any dependent child under the
age of 22 years shall be made to the surviving parent, or if
there be none, to the legal guardian of the child. The maximum
monthly benefit shall not exceed $1,000 for any one family, and
the minimum benefit per family shall not be less than 50 percent
of the basic member's average salary, subject to the foregoing
maximum. The surviving dependent children's benefit shall be
reduced pro tanto when any surviving child is no longer
dependent.
If the basic member and the surviving dependent spouse are
killed in a common disaster and if the total of all survivors
benefits payable pursuant to this subdivision is less than the
accumulated deductions plus interest payable, the surviving
dependent children shall receive the difference in a lump sum
payment.
If the survivor benefits provided in this subdivision
exceed in total the monthly average salary of the deceased basic
member, these benefits shall be reduced to an amount equal to
the deceased basic member's monthly average salary.
Prior to payment of any survivor benefit pursuant to this
subdivision, in lieu of that benefit, the surviving dependent
spouse may elect to receive the joint and survivor annuity
provided pursuant to subdivision 2, or may elect to receive a
refund of accumulated deductions with interest in a lump sum as
provided pursuant to section 354.47, subdivision 1. If there
are any surviving dependent children, the surviving dependent
spouse may elect to receive the refund of accumulated deductions
only with the consent of the district court of the district in
which the surviving dependent child or children reside.
Sec. 3. Minnesota Statutes 1992, section 354.48,
subdivision 3, is amended to read:
Subd. 3. [COMPUTATION OF BENEFITS.] (1) The amount of the
disability benefit granted to members covered under section
354.44, subdivision 2, clauses (1) and (2), is an amount equal
to double the annuity which could be purchased by the member's
accumulated deductions plus interest on the amount computed as
though the teacher were at normal retirement age at the time the
benefit begins to accrue and in accordance with the law in
effect when the disability application is received. Any member
who applies for a disability benefit after June 30, 1974, and
who failed to make an election pursuant to Minnesota Statutes
1971, section 354.145, shall have the disability benefit
computed under this clause or clause (2), whichever is larger.
The benefit granted shall be determined by the following:
(a) the amount of the accumulated deductions;
(b) interest actually earned on these accumulated
deductions to the date the benefit begins to accrue;
(c) interest for the years from the date the benefit begins
to accrue to the date the member attains normal retirement age
at the rate of three percent;
(d) annuity purchase rates based on an appropriate annuity
table of mortality established by the board as provided in
section 354.07, subdivision 1, and using the applicable
postretirement interest rate assumption specified in section
356.215, subdivision 4d.
In addition, a supplementary monthly benefit shall of $25
to age 65 or the five-year anniversary of the effective date of
the disability benefit, whichever is later, must be paid to
basic members only in accordance with the following table:.
Age When Benefit Supplementary
Begins to Accrue Benefit
Under Age 56 $50
56 45
57 40
58 35
59 30
60 25
61 20
62 15
63 10
64 5
(2) The disability benefit granted to members covered under
section 354.44, subdivision 6, shall be computed in the same
manner as the annuity provided in section 354.44, subdivision
6. The disability benefit shall be the formula annuity without
the reduction for each month the member is under normal
retirement age when the benefit begins to accrue.
(3) For the purposes of computing a retirement annuity when
the member becomes eligible, the amounts paid for disability
benefits shall not be deducted from the individual member's
accumulated deductions. If the disability benefits provided in
this subdivision exceed the monthly average salary of the
disabled member, the disability benefits shall be reduced to an
amount equal to the disabled member's average salary.
Sec. 4. Minnesota Statutes 1992, section 354.48,
subdivision 10, is amended to read:
Subd. 10. [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] No
person shall be entitled to receive both a disability benefit
and a retirement annuity provided by this chapter. The
disability benefit paid to a person hereunder shall terminate at
the end of the month in which the person attains normal
retirement age. If the person is still totally and permanently
disabled at the beginning of the month next following the month
in which the person attains the normal retirement age, the
person shall be deemed to be on retirement status and, if the
person had elected an optional annuity pursuant to subdivision
3a, shall receive an annuity in accordance with the terms of the
optional annuity previously elected, or, if the person had not
elected an optional annuity pursuant to subdivision 3a, may at
the option of the person elect to receive either a straight life
retirement annuity computed pursuant to section 354.44 or a
straight life retirement annuity equal to the disability benefit
paid prior to the date on which the person attained the age of
65 years attains age 65 or reaches the five-year anniversary of
the effective date of the disability benefit, whichever amount
is greater later, or elect to receive an optional annuity as
provided in section 354.45, subdivision 1. Election of an
optional annuity shall must be made prior to the person
attaining the normal retirement age within 90 days of age 65 or
the five-year anniversary of the effective date of the
disability benefit, whichever is later. If an optional annuity
is elected, the election shall be effective on the date on which
the person attains the normal retirement age and age 65 or
reaches the five-year anniversary of the effective date of the
disability benefit, whichever is later. The optional annuity
shall begin to accrue on the first day of the month next
following the month in which the person attains that age 65 or
reaches the five-year anniversary of the effective date of the
disability benefit, whichever is later.
Sec. 5. [EFFECTIVE DATES.]
Section 1 is effective January 1, 1994. Sections 2 to 4,
are effective retroactively to October 16, 1992.
ARTICLE 6
SURVIVING SPOUSE BENEFITS
Section 1. Minnesota Statutes 1992, section 352.12,
subdivision 2, is amended to read:
Subd. 2. [SURVIVING SPOUSE BENEFIT.] If an employee or
former employee is at least 50 years old and has credit for at
least three years allowable service or who has credit for at
least 30 years of allowable service, regardless of age, 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 must be computed as provided in sections 352.115,
subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3.
Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply
to a deferred annuity payable under this subdivision. The
annuity must 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 credited to the account of the deceased employee
in excess of the total of the benefits paid and payable to the
surviving spouse must 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 the 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. 2. Minnesota Statutes 1992, section 353.32,
subdivision 1a, is amended to read:
Subd. 1a. [SURVIVING SPOUSE OPTIONAL ANNUITY.] If a member
or former member who has attained at least age 50 and has credit
for not less than three 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 begins to accrue under section 353.29,
subdivision 7, or 353.33, subdivision 2, notwithstanding any
designation of beneficiary to the contrary, the surviving spouse
may elect to receive, instead of a refund with interest under
subdivision 1, or surviving spouse benefits otherwise payable
under section 353.31, an annuity equal to the 100 percent joint
and survivor annuity that the member could have qualified for
had the member terminated service on the date of death.
Notwithstanding the definition of surviving spouse in
section 353.01, subdivision 20, a former spouse of the member,
if any, is entitled to a portion of the monthly surviving spouse
optional annuity if stipulated under the terms of a marriage
dissolution decree filed with the association. If there is no
surviving spouse or child or children, a former spouse may be
entitled to a lump-sum refund payment under subdivision 1, if
provided for in a marriage dissolution decree but not a monthly
surviving spouse optional annuity despite the terms of a
marriage dissolution decree filed with the association.
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 under sections
353.29, subdivisions 2 and 3; 353.30, subdivisions 1, 1a, 1b,
1c, and 5; and 353.31, subdivision 3. 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 may be made only to the designated
beneficiary as otherwise provided by this chapter.
Sec. 3. Minnesota Statutes 1992, 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 three years of allowable service or who has credit for
at least 30 years of allowable service irrespective of age is
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, the
surviving spouse is 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. This benefit accrues
from the day following the date of death but may not begin to
accrue more than six months before the date the application is
filed with the executive director. Sections 354.44, subdivision
6 and 354.60 apply to a deferred annuity payable under this
section. The benefit is payable for life.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective the day after final enactment.
ARTICLE 7
REPEALER AND EFFECTIVE DATE
Section 1. [REPEALER.]
Minnesota Statutes 1992, sections 3A.06; 352.01,
subdivision 7; 352.12, subdivision 5; 352.22, subdivision 9;
352.73; 352B.01, subdivision 2a; 352B.131; 352B.14; 352B.261;
352B.262; 352B.28; and 352D.05, subdivision 5, are repealed.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 8
PERA DEFINED CONTRIBUTION PLAN MEMBERSHIP
Section 1. [PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN:
ELECTION OF COVERAGE IN CERTAIN INSTANCES.]
(a) Notwithstanding any provision to the contrary in
Minnesota Statutes, chapter 353 or 353D, a person described in
paragraph (b) is eligible to elect contributions for prior
service under paragraph (c) and coverage for future public
employment under paragraph (d).
(b) A person eligible to make the elections provided for in
this section is a person who:
(1) was born on March 3, 1939;
(2) was an elected official of Blackberry township during
the period March 1972 through March 1990;
(3) became an employee of the city of Deer River in March
1987; and
(4) is a member of the coordinated program of the public
employees retirement association under Minnesota Statutes,
chapter 353, on the effective date of this section.
(c) An eligible person may elect to make member
contributions for prior service as an elected official of
Blackberry township to the public employees defined contribution
plan under Minnesota Statutes, chapter 353D. The election must
be made on a form prescribed by the executive director of the
public employees retirement association. The election form must
be accompanied with a lump sum payment of prior member
contributions of $1,937.93, plus interest on that amount at an
annual compound rate of six percent from July 1, 1993, to the
date payment is made, if payment is made after July 1, 1993. If
the person pays the prior member contributions and if the
subdivision agrees to make the employer contribution payment,
the employing governmental subdivision for the March 1972,
through March 1990, period shall pay, in a lump sum, $2,447.69
plus interest on that amount at an annual compound rate of six
percent from July 1, 1993, to the date payment is made, and
shall make that payment within 60 days of the payment of the
prior member contribution amount and receipt of a notice from
the executive director of the public employees retirement
association. If the employing governmental subdivision for the
March 1972, through March 1990, period does not agree to make
the employer contribution payment, the eligible person shall
make the same contribution payment that the employing
governmental subdivision would have made on the date of
payment. The amounts under this paragraph must be deposited in
the Minnesota supplemental investment fund to the credit of the
person making the member contribution amount as provided in
Minnesota Statutes, section 353D.05. Authority to make the
prior service member contributions under this paragraph expires
on July 1, 1994.
(d) An eligible person may elect to participate in the
public employees defined contribution plan governed by Minnesota
Statutes, chapter 353D, rather than the coordinated program of
the public employees retirement association governed by
Minnesota Statutes, chapter 353, for future service as an
employee of the city of Deer River after June 30, 1993. The
election under this paragraph must be made by July 1, 1993. No
refund under Minnesota Statutes, section 353.34, is payable
unless the person terminates public employment qualifying for
coverage under Minnesota Statutes, chapter 353 or 353D.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 9
VOLUNTEER FIREFIGHTERS RELIEF ASSOCIATION
Section 1. Minnesota Statutes 1992, section 424A.10,
subdivision 3, is amended to read:
Subd. 3. [STATE REIMBURSEMENT.] By February 15 of each
year, the relief association shall apply to the commissioner of
revenue for state reimbursement of the amount of supplemental
benefits paid under subdivision 2 during the preceding calendar
year. By March 15 the commissioner shall reimburse the relief
association for the amount of the supplemental benefits paid to
qualified recipients. The commissioner of revenue shall
prescribe the form of and supporting information that must be
supplied as part of the application for state reimbursement.
The reimbursement payment must be deposited in the special fund
of the relief association. A sum sufficient to make the
payments is appropriated from the general fund to the
commissioner of revenue.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment
and applies to reimbursements payable March 15, 1993, and
thereafter.
ARTICLE 10
MINNEAPOLIS EMPLOYEES RETIREMENT FUND
Section 1. Minnesota Statutes 1992, section 422A.05,
subdivision 1, is amended to read:
Subdivision 1. The members of the retirement board shall
be the trustees and custodians of the several funds created by
sections 422A.01 to 422A.25 and shall have exclusive control and
management of these funds, and power to invest them and to hold,
purchase, sell, assign, transfer, or dispose of any of the
securities and investments in which any of the funds created by
sections 422A.01 to 422A.25 shall have been invested as well as
the proceeds of the investments, and of the money belonging to
these funds. The power to manage and invest the assets of the
funds must be exercised by the retirement board solely through
professional investment or property management firms that are
independent of the retirement fund. No financial or property
assets of the funds may be managed, serviced, or invested
internally or in-house at the retirement fund, except that any
investment held by a fund on February 1, 1993, that is not
readily tradeable on an established securities exchange may
continue to be managed directly by the retirement board until
the investment is converted to cash. The retirement board's
functions under this section consist primarily of establishing
and effectuating investment policy and structure, managing the
investment process, monitoring and measuring the performance of
the external independent professional investment or property
management firms, retaining or terminating agreements with these
firms, apportioning the assets of the funds to be managed among
these firms, and making financial decisions on issues if
approvals have been specifically reserved by and to the board.
Sec. 2. Minnesota Statutes 1992, section 422A.05,
subdivision 2a, is amended to read:
Subd. 2a. [FIDUCIARY DUTY.] (a) In the discharge of their
respective duties, the members of the board, the executive
director, the board staff, and any other person charged with the
responsibility of investing money servicing assets of the funds
pursuant to the standards set forth in this chapter shall act in
good faith and shall exercise that degree of judgment and care,
under circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the management of their
own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the
probable income to be derived therefrom. In addition, the
members of the board and the chief administrative officer shall
act in a manner consistent with chapter 356A.
(b) Individuals authorized by the board to manage or invest
the assets of the funds must act in a manner consistent with
chapter 356A. In addition, these individuals must act in good
faith and exercise that degree of judgment, skill, diligence,
and care, under the circumstances then prevailing, that persons
of prudence, discretion, and intelligence acting in a like
capacity and familiar with the activity would exercise.
Sec. 3. Minnesota Statutes 1992, section 422A.08,
subdivision 5, is amended to read:
Subd. 5. Any contributor or retired employee who prior to
entering the service of the city was an employee of a public
corporation, shall be allowed is authorized, using the procedure
in subdivision 5a, to purchase allowable service credit in the
retirement fund for employment by the public corporation in the
same manner as though the service had been rendered to the city,
providing that the individual has not received service credit
and is not eligible to receive service credit for this period
under any other plan or fund listed in section 356.30,
subdivision 3. Before receiving credit for service rendered to
a public corporation as herein set forth, the contributing or
retired employee shall make application therefor in writing to
the retirement board, and shall contribute to the retirement
fund the amount which would have been contributed had the
employee been a contributing member of the fund during the time
the service was rendered to the public corporation, plus six
percent compound interest to date of payment or date of
retirement, with the total amount to be determined by the
retirement board amount specified in subdivision 5a.
Sec. 4. Minnesota Statutes 1992, section 422A.08, is
amended by adding a subdivision to read:
Subd. 5a. [PURCHASE PAYMENT AMOUNT.] (a) To purchase
credit for prior service under this section, there must be paid
to the Minneapolis employees retirement fund an amount equal to
the present value, on the date of payment, of the amount of the
additional retirement annuity obtained by the purchase of the
additional service credit. Calculation of this amount must be
made using the applicable preretirement interest rate for the
association specified in section 356.215, subdivision 4d, and
the mortality table adopted for the fund. The calculation must
assume continuous future service in the fund until, and
retirement at, the age at which the minimum requirements of the
fund for normal retirement or retirement with an annuity
unreduced for retirement at an early age, including section
356.30, are met with the additional service credit purchased.
The calculation must also assume a future salary history that
includes annual salary increases at the applicable salary
increase rate for the fund or association specified in section
356.215, subdivision 4d. The member must establish in the
records of the fund 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.
(b) Payment must be made in one lump sum.
(c) Payment of the amount calculated under this subdivision
must be made by the member. However, the current or former
governmental subdivision employer of the member 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 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. 5. Minnesota Statutes 1992, section 422A.101,
subdivision 1, is amended to read:
Subdivision 1. [FINANCIAL REQUIREMENTS OF FUND.] Prior
to August July 31 annually, the retirement board, in
consultation with the commission-retained actuary, shall prepare
an itemized statement of the financial requirements of the fund
for the succeeding fiscal year. A copy of the statement shall
be submitted to the city council, the board of estimate and
taxation of the city, the managing board or chief administrative
officer of each city owned public utility, improvement project
or municipal activity supported in whole or in part by revenues
other than real estate taxes, public corporation, or unit of
metropolitan government employing members of the fund, the board
of special school district No. 1, and the state commissioner of
finance prior to September 15 July 31 annually. The statement
shall be itemized and shall include the following:
(1) an estimate of the administrative expenses of the fund
for the following year, which shall be determined by
multiplying, by the factor of 1.035, the figure for
administrative expenses as reported in the most recent actuarial
valuation prepared by the commission-retained actuary, including
the amount necessary to amortize through June 30, 2020, the
annual costs that are determined by the retirement board to be
related to investment activities of the deposit accumulation
fund other than actual investment transaction amounts;
(2) an estimate of the normal cost of the fund expressed as
a dollar amount, which shall be determined by applying the
normal cost of the fund as reported in the most recent actuarial
valuation prepared by the commission-retained actuary and
expressed as a percentage of covered payroll to the estimated
total covered payroll of all employees covered by the fund for
the following year;
(3) an estimate of the contribution required to amortize on
a level annual dollar basis the unfunded actuarial accrued
liability of the fund by June 30, 2020, using an interest rate
of six percent compounded annually as reported in the most
recent actuarial valuation, prepared by the commission-retained
actuary expressed as a dollar amount. In determining the amount
of the unfunded actuarial accrued liability of the fund, all
assets other than the assets of the retirement benefit fund
shall be valued as current assets as defined under section
356.215, subdivision 1, clause (6), and the assets of the
retirement benefit fund shall be valued equal to the actuarially
determined required reserves for benefits payable from that
fund;
(4) the amount of any deficiency in the actual amount of
any employer contribution provided for in this section when
compared to the required contribution amount certified for the
previous year, plus interest on the amount at the rate of six
percent per annum.
Sec. 6. [EFFECTIVE DATE.]
Sections 1 to 5 are effective the day following final
enactment.
Presented to the governor May 17, 1993
Signed by the governor May 20, 1993, 3:50 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes