Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 241-S.F.No. 1486
An act relating to retirement; revising various police
state aid provisions to fully implement intended 1996
modifications; ratifying the calculation of certain
1996 police state aid amounts; modifying various fire
state aid provisions; authorizing the exclusion of
certain pipefitters from public employee retirement
association membership; authorizing benefit increases
for the Richfield fire department relief association;
providing postretirement adjustments for retirees and
benefit recipients of the Nashwauk police pension plan
and the Eveleth police and fire retirement trust fund;
clarifying the benefit floor for certain benefit
recipients of the St. Paul police and fire
consolidation accounts; providing alternative
retirement coverage for transferred employees of the
Jackson medical center, the Melrose hospital, and the
Tracy municipal hospital; creating a trust for the
state deferred compensation program; modifying the
handling of sabbatical leave contributions by the
teachers retirement association; modifying the timing
of higher education supplemental retirement plan
contributions; making administrative changes in the
higher education individual retirement account plan
and supplemental retirement plan; modifying various
economic actuarial assumptions; clarifying certain
retirement dates; authorizing certain purchases of
prior service credit; extending the volunteer
firefighter flexible service pension maximums;
modifying retirement coverage for transferred
university academic health center employees; modifying
tax-sheltered annuity programs for university and
college employees; including additional classes of
persons in definition of state employee; providing
general statewide and local employee pension plan
modifications; modifying investment reporting
provisions; making miscellaneous retirement plan
modifications; amending Minnesota Statutes 1996,
sections 69.021, subdivisions 4, 5, 6, 7a, 8, 9, 10,
and 11; 69.031, subdivisions 1, 3, and 5; 69.051,
subdivisions 1, 1a, and 1b; 136F.45, by adding
subdivisions; 352.01, subdivisions 2a and 2b; 352.96,
subdivisions 2, 3, and 6; 352F.02, subdivisions 3, 6,
and by adding subdivisions; 352F.03; 352F.04; 352F.05;
352F.06; 352F.07; 352F.08; 353.01, subdivision 2b;
353B.07, subdivision 3; 353B.08, subdivision 6;
353B.11, subdivisions 3, 4, and 5; 354.092,
subdivisions 1, 3, and 4; 354B.21, subdivision 3;
354B.25, subdivision 5, and by adding a subdivision;
354C.11; 354C.12, subdivisions 1 and 4; 356.215,
subdivision 4d; 356.219; 423A.02, subdivision 2;
423B.06, subdivisions 1 and 1a; and 424A.02,
subdivisions 3 and 10; Laws 1943, chapter 196, section
4, as amended; Laws 1965, chapter 705, section 1,
subdivision 4; Laws 1967, chapter 798, sections 2 and
4; Laws 1992, chapter 563, section 5, as amended; and
Laws 1996, chapter 408, article 8, sections 21, 22,
subdivision 1, and 24; repealing Minnesota Statutes
1996, section 356.218; Laws 1995, chapter 262, article
1, sections 8, 9, 10, 11, and 12.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
POLICE STATE AID AND PAID FIREFIGHTER
RETIREMENT COVERAGE COSTS
Section 1. Minnesota Statutes 1996, section 69.021,
subdivision 4, is amended to read:
Subd. 4. [DETERMINATION OF QUALIFIED STATE AID RECIPIENTS;
CERTIFICATION TO COMMISSIONER OF REVENUE FINANCE.] (a) The
commissioner shall determine which municipalities and
independent nonprofit firefighting corporations are qualified to
receive fire state aid and which municipalities and counties are
qualified to receive police state peace officer aid.
(b) The commissioner shall determine qualification for
state aid upon receipt of:
(1) the fire department personnel and equipment
certification or the police department and qualified peace
officers certificate, whichever is applicable applies, required
under section 69.011,;
(2) the financial compliance report required under section
6.495, subdivision 3, if applicable; and
(3) any other relevant information which comes to the
attention of the commissioner.
(c) Upon completion of the determination, on or before
October 1, the commissioner shall calculate under subdivision 6
the amount of (a) state peace officer:
(1) the police state aid which each county or municipality
is to receive under subdivisions 5, 6, 7a, and 10; and
(b) (2) the fire state aid which each municipality or
nonprofit firefighting corporation is to receive under
subdivisions 5 and 7.
(d) The commissioner shall certify to the commissioner of
finance the name of each county or municipality, and the amount
of state aid which each county or municipality is to receive, in
the case of police state peace officer aid; and. The
commissioner shall certify to the commissioner of finance the
name of each municipality or independent nonprofit firefighting
corporation and the amount of state aid which each municipality
or independent nonprofit firefighting corporation is to receive,
in the case of fire state aid.
Sec. 2. Minnesota Statutes 1996, section 69.021,
subdivision 5, is amended to read:
Subd. 5. [CALCULATION OF STATE AID.] (a) The amount of
fire state aid available for apportionment shall be, before the
addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium
taxes paid to the state upon the fire, lightning, sprinkler
leakage, and extended coverage premiums reported to the
commissioner by insurers on the Minnesota Firetown Premium
Report. This amount shall be reduced by the amount required to
pay the state auditor's costs and expenses of the audits or
exams of the firefighters relief associations.
(b) The total amount for apportionment in respect to peace
officer state aid is equal to 104 percent of the amount of
premium taxes paid to the state upon the premiums reported to
the commissioner by insurers on the Minnesota Aid to Police
Premium Report, plus the payment amounts received under section
60A.152 since the last aid apportionment, and reduced by the
amount required to pay the state auditor's costs and expenses of
the audits or exams of the police relief associations. The
total amount for apportionment in respect to firefighters fire
state aid shall must not be less than two percent of the
premiums reported to the commissioner by insurers on the
Minnesota Firetown Premium Report after subtracting the
following amounts:
(1) the amount required to pay the state auditor's costs
and expenses of the audits or exams of the firefighters relief
associations,; and
(2) one percent of the premiums reported by town and
farmers' mutual insurance companies and mutual property and
casualty companies with total assets of $5,000,000 or less.
(b) The total amount for apportionment as police state aid
is equal to 104 percent of the amount of premium taxes paid to
the state on the premiums reported to the commissioner by
insurers on the Minnesota Aid to Police Premium Report, plus the
payment amounts received under section 60A.152 since the last
aid apportionment, and reduced by the amount required to pay the
costs and expenses of the state auditor for audits or exams of
police relief associations. The total amount for apportionment
in respect to the police state aid program shall must not be
less than two percent of the amount of premiums reported to the
commissioner by insurers on the Minnesota Aid to Police Premium
Report after subtracting the amount required to pay the state
auditor's cost and expenses of the audits or exams of the police
relief associations.
(c) The commissioner shall calculate the percentage of
increase or decrease reflected in the apportionment over or
under the previous year's available state aid using the same
premiums as a basis for comparison.
Sec. 3. Minnesota Statutes 1996, section 69.021,
subdivision 6, is amended to read:
Subd. 6. [CALCULATION OF APPORTIONMENT OF POLICE STATE
PEACE OFFICERS AID TO COUNTIES.] The peace officers police state
aid available shall must be distributed to the counties in
proportion to the relationship that the total number of active
peace officers, as defined in section 69.011, subdivision 1,
clause (g), in each county who are employed either by
municipalities maintaining police departments or by the county,
bears to the total number of peace officers employed by all
municipalities and counties, subject to any reduction under
subdivision 10. Any necessary additional adjustments shall be
made to subsequent apportionments.
Sec. 4. Minnesota Statutes 1996, section 69.021,
subdivision 7a, is amended to read:
Subd. 7a. [APPORTIONMENT OF POLICE STATE AID.] (a) Subject
to the reduction provided for under subdivision 10, the
commissioner shall apportion the police state peace officer aid
to each municipality and to the county in the following manner:
(1) for all municipalities maintaining police departments
and the county, the state aid must be distributed in proportion
to the relationship that the total number of peace officers, as
determined under section 69.011, subdivision 1, clause (g), and
subdivision 2, clause (b), employed by each that municipality
and by the or county for 12 calendar months and the proportional
or fractional number who were employed less than 12 months bears
to the total number of peace officers employed by all
municipalities and counties subject to any reduction under
subdivision 10;
(2) for each municipality which contracts with the county
for police service, a proportionate amount of the state aid
distributed to the county based on the full-time equivalent
number of peace officers providing contract service to that
municipality must be credited against the municipality's
contract obligation; and
(3) for each municipality which contracts with another
municipality for police service, a proportionate amount of the
state aid distributed to the municipality providing contract
service based on the full-time equivalent number of peace
officers providing contract service to that municipality on a
full-time equivalent basis must be credited against the contract
obligation of the municipality receiving contract service.
(b) No municipality entitled to receive state peace officer
aid may be apportioned less state peace officer aid for any year
under Laws 1976, chapter 315, than the amount which was
apportioned to it for calendar year 1975 based on premiums
reported to the commissioner for calendar year 1974; provided,
the amount of state peace officer aid to other municipalities
within the county and to the county must be adjusted in
proportion to the total number of peace officers in the
municipalities and the county, so that the amount of state peace
officer aid apportioned does not exceed the amount of state
peace officer aid available for apportionment.
Sec. 5. Minnesota Statutes 1996, section 69.021,
subdivision 8, is amended to read:
Subd. 8. [POPULATION AND MARKET VALUE.] In
computations relating to fire state aid requiring the use of
population figures, only official statewide federal census
figures are to be used. Increases or decreases in population
disclosed by reason of any special census shall must not be
taken into consideration.
In calculations relating to fire state aid requiring the
use of market value property figures, only the latest available
market value property figures are to may be used.
Sec. 6. Minnesota Statutes 1996, section 69.021,
subdivision 9, is amended to read:
Subd. 9. [APPEAL.] In the event that any municipality,
county, fire relief association or police department relief
association feels itself to be aggrieved, it may request the
commissioner to review and adjust the apportionment of funds
within the county in the case of police state peace officer aid,
and or within the state in the case of fire state aid, and. The
decision of the commissioner shall be is subject to appeal,
review, and adjustment by the district court in the county in
which the applicable fire or police department is located.
Sec. 7. Minnesota Statutes 1996, section 69.021,
subdivision 10, is amended to read:
Subd. 10. [REDUCTION IN POLICE STATE AID
APPORTIONMENT.] (a) The commissioner of revenue shall reduce the
apportionment of police state aid under subdivisions 5,
paragraph (b), 6, and 7 7a, for eligible employer units by
any excess police state aid.
(b) "Excess police state aid" is:
(1) for counties and for municipalities in which police
retirement coverage is provided wholly by the public employees
police and fire fund and all police officers are members of the
plan governed by sections 353.63 to 353.657, the amount in
excess of the employer's total prior calendar year obligation
under section 353.65, as defined in paragraph (c), as certified
by the executive director of the public employees retirement
association.;
(2) for municipalities in which police retirement coverage
is provided in part by the public employees police and fire fund
governed by sections 353.63 to 353.657 and in part by a local
police consolidation account governed by chapter 353A, the
amount in excess of the employer's total prior calendar year
obligation as defined in paragraph (c), as certified by the
executive director of the public employees retirement
association;
(3) for municipalities in which police retirement coverage
is provided in part by the public employees police and fire fund
governed by sections 353.63 to 353.657 and in part by a local
police relief association governed by sections 69.77 and
423A.01, the amount in excess of the employer's total prior
calendar year obligation as defined in paragraph (c), as
certified by the executive director of the public employees
retirement association, plus the amount of the financial
requirements of the relief association certified to the
applicable municipality during the prior calendar year under
section 69.77, subdivisions 2b and 2c, reduced by the amount of
member contributions deducted from the covered salary of the
relief association during the prior calendar year under section
69.77, subdivision 2a, as certified by the chief administrative
officer of the applicable municipality; and
(4) for the metropolitan airports commission, if there are
police officers hired before July 1, 1978, with retirement
coverage by the Minneapolis employees retirement fund remaining,
the amount in excess of the commission's total prior calendar
year obligation as defined in paragraph (c), as certified by the
executive director of the public employees retirement
association, plus the amount determined by expressing the
commission's total prior calendar year contribution to the
Minneapolis employees retirement fund under section 422A.101,
subdivisions 2 and 2a, as a percentage of the commission's total
prior calendar year covered payroll for commission employees
covered by the Minneapolis employees retirement fund and
applying that percentage to the commission's total prior
calendar year covered payroll for commission police officers
covered by the Minneapolis employees retirement fund, as
certified by the chief administrative officer of the
metropolitan airports commission.
(c) The employer's total prior calendar year obligation
with respect to the public employees police and fire plan is the
total prior calendar year obligation under section 353.65,
subdivision 3, for police officers as defined in section 353.64,
subdivision 2, and the actual total prior calendar year
obligation under section 353.65, subdivision 3, for
firefighters, as defined in section 353.64, subdivision 3, but
not to exceed for those firefighters the applicable following
amount:
municipality maximum amount
Albert Lea $54,157.01
Anoka 10,399.31
Apple Valley 5,442.44
Austin 49,864.73
Bemidji 27,671.38
Brooklyn Center 6,605.92
Brooklyn Park 24,002.26
Burnsville 15,956.00
Cloquet 4,260.49
Coon Rapids 39,920.00
Cottage Grove 8,588.48
Crystal 5,855.00
East Grand Forks 51,009.88
Edina 32,251.00
Elk River 5,216.55
Ely 13,584.16
Eveleth 16,288.27
Fergus Falls 6,742.00
Fridley 33,420.64
Golden Valley 11,744.61
Hastings 16,561.00
Hopkins 4,324.23
International Falls 14,400.69
Lakeville 782.35
Lino Lakes 5,324.00
Little Falls 7,889.41
Maple Grove 6,707.54
Maplewood 8,476.69
Minnetonka 10,403.00
Montevideo 1,307.66
Moorhead 68,069.26
New Hope 6,739.72
North St. Paul 4,241.14
Northfield 770.63
Owatonna 37,292.67
Plymouth 6,754.71
Red Wing 3,504.01
Richfield 53,757.96
Rosemount 1,712.55
Roseville 9,854.51
St. Anthony 33,055.00
St. Louis Park 53,643.11
Thief River Falls 28,365.04
Virginia 31,164.46
Waseca 11,135.17
West St. Paul 15,707.20
White Bear Lake 6,521.04
Woodbury 3,613.00
any other municipality 0.00
(d) The total shall amount of excess police state aid must
be deposited in a separate the excess police state-aid account
in the general fund, administered and distributed as provided in
subdivision 11.
Sec. 8. Minnesota Statutes 1996, section 69.021,
subdivision 11, is amended to read:
Subd. 11. [EXCESS POLICE STATE-AID HOLDING ACCOUNT.]
(a) An The excess police state-aid holding account is
established in the general fund. The excess police state-aid
holding account must be administered by the commissioner.
(b) Excess police state aid determined according to section
69.021, subdivision 10, must be deposited in the excess police
state-aid holding account.
(c) From the balance in the excess police state-aid holding
account, $1,000,000 is appropriated to and must be transferred
annually to the ambulance service personnel longevity award and
incentive suspense account established by section 144C.03,
subdivision 2.
(d) If a police officer stress reduction program is created
by law and money is appropriated for that program, an amount
equal to that appropriation must be transferred from the balance
in the excess police state-aid holding account.
(e) On October 1, 1997, and annually on each subsequent
October 1, one-half of the balance of the excess police
state-aid holding account remaining after the deductions under
paragraphs (c) and (d) is appropriated for additional
amortization aid under section 423A.02, subdivision 1b.
(f) Annually, the remaining balance in the excess police
state-aid holding account, after the deductions under paragraphs
(c), (d), and (e), cancels to the general fund.
Sec. 9. Minnesota Statutes 1996, section 69.031,
subdivision 1, is amended to read:
Subdivision 1. [COMMISSIONER OF FINANCE'S WARRANT.] The
commissioner of finance shall issue to the county, municipality,
or independent nonprofit firefighting corporation certified to
the commissioner of finance by the commissioner a warrant for an
amount equal to the amount of fire state aid or police state
aid, whichever applies, certified to for the applicable state
aid recipient by the commissioner pursuant to under section
69.021. The amount of state aid due and not paid by October 1
accrues interest at the rate of one percent for each month or
part of a month the amount remains unpaid, beginning the
preceding July 1.
Sec. 10. Minnesota Statutes 1996, section 69.031,
subdivision 3, is amended to read:
Subd. 3. [APPROPRIATIONS.] There is hereby appropriated
annually from the state general fund to the commissioner of
revenue an amount sufficient to make the police and fire state
aid payments specified in this section and section 69.021.
Sec. 11. Minnesota Statutes 1996, section 69.031,
subdivision 5, is amended to read:
Subd. 5. [DEPOSIT OF STATE AID.] (1) (a) The municipal
treasurer, on receiving the fire state aid, shall, within 30
days after receipt, transmit it the fire state aid to the
treasurer of the duly incorporated firefighters' relief
association if there is one organized and the association has
filed a financial report with the municipality; but. If the
relief association has not filed a financial report with the
municipality, the municipal treasurer shall delay transmission
of the fire state aid to the relief association until the
complete financial report is filed. If there is no relief
association organized, or if any the association dissolve, be
removed, or has heretofore dissolved, or has been removed as
trustees of state aid, then the treasurer of the municipality
shall keep deposit the money in the municipal treasury as
provided for in section 424A.08 and shall the money may be
disbursed only for the purposes and in the manner set forth in
that section.
(2) (b) The municipal treasurer, upon receipt of the police
state aid, shall disburse the police state aid in the following
manner:
(a) (1) For a municipality in which a local police relief
association exists and all peace officers are members of the
association, the total state aid shall must be transmitted to
the treasurer of the relief association within 30 days of the
date of receipt, and the treasurer of the relief association
shall immediately deposit the total state aid in the special
fund of the relief association;
(b) (2) For a municipality in which police retirement
coverage is provided by the public employees police and fire
fund and all peace officers are members of the fund, the total
state aid shall must be applied toward the municipality's
employer contribution to the public employees police and fire
fund pursuant under to section 353.65, subdivision 3; or
(c) (3) For a municipality other than a city of the first
class with a population of more than 300,000 in which both a
police relief association exists and police retirement coverage
is provided in part by the public employees police and fire
fund, the municipality may elect at its option to transmit the
total state aid to the treasurer of the relief association as
provided in clause (a) (1), to use the total state aid to apply
toward the municipality's employer contribution to the public
employees police and fire fund subject to all the provisions set
forth in clause (b) (2), or to allot the total state aid
proportionately to be transmitted to the police relief
association as provided in this subdivision and to apply toward
the municipality's employer contribution to the public employees
police and fire fund subject to the provisions of clause (b) (2)
on the basis of the respective number of active full-time peace
officers, as defined in section 69.011, subdivision 1, clause
(g).
For a city of the first class with a population of more
than 300,000, in addition, the city may elect to allot the
appropriate portion of the total police state aid to apply
toward the employer contribution of the city to the public
employees police and fire fund based on the covered salary of
police officers covered by the fund each payroll period and to
transmit the balance to the police relief association.; or
(4) For a municipality in which police retirement coverage
is provided in part by the public employees police and fire fund
and in part by a local police consolidation account governed by
chapter 353A, the total police state aid must be applied towards
the municipality's total employer contribution to the public
employees police and fire fund and to the local police
consolidation account under sections 353.65, subdivision 3, and
353A.09, subdivision 5.
(3) (c) The county treasurer, upon receipt of the police
state aid for the county, shall apply the total state aid toward
the county's employer contribution to the public employees
police and fire fund pursuant to under section 353.65,
subdivision 3.
(4) (d) The designated metropolitan airports commission
official, upon receipt of the police state aid for the
metropolitan airports commission, shall apply the total police
state aid first toward the commission's employer contribution
for police officers to the Minneapolis employees retirement fund
under section 422A.101, subdivision 2a, and, if there is any
amount of police state aid remaining, shall apply that remainder
toward the commission's employer contribution for police
officers to the public employees police and fire plan under
section 353.65, subdivision 3.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective on the day following final
enactment.
ARTICLE 2
VARIOUS LOCAL PENSION MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
employees shall not participate as members of the
association with retirement coverage by the public employees
retirement plan or the public employees police and fire
retirement plan:
(1) 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) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of a
governmental subdivision;
(4) employees who are hired for a 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 extends beyond 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 and nontemporary positions in one
governmental subdivision is determined by the length of
employment and salary of each separate position;
(5) employees whose actual salary from one governmental
subdivision does not exceed $425 per month, or whose annual
salary from one governmental subdivision does not exceed a
stipulation prepared in advance, in writing, 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;
(6) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(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;
(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;
(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;
(10) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or
residency program in public hospitals;
(11) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(12) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(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;
(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
(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; and
(17) pipefitters and associated trades personnel employed
by independent school district No. 625 (St. Paul) with coverage
by the pipefitters local 455 pension plan under a collective
bargaining agreement who were either first employed after May 1,
1997, or, if first employed before May 2, 1997, elected to be
excluded under section 12.
Sec. 2. Minnesota Statutes 1996, section 353B.07,
subdivision 3, is amended to read:
Subd. 3. [FORMULA PERCENTAGE RATE.] (a) The formula
percentage rate shall be 2.333 percent per year of allowable
service for each of the first 20 years of allowable service,
1.333 percent per year of allowable service for each year of
allowable service in excess of 20 years but not in excess of 27
years, and .5 percent for each year of allowable service in
excess of 25 years for the former members of the following
consolidating relief associations:
(1) Rochester fire department relief association;
(2) Rochester police relief association;
(3) St. Cloud fire department relief association;
(4) St. Cloud police relief association;
(5) St. Louis Park police relief association; and
(6) Winona police relief association.
(b) The formula percentage rate shall be 2.5 percent per
year of allowable service for each of the first 20 years of
allowable service for the former members of the following
consolidating relief associations:
(1) Albert Lea police relief association;
(2) Anoka police relief association;
(3) Faribault fire department relief association;
(4) Faribault police benefit association;
(5) Mankato police benefit association;
(6) Red Wing police relief association; and
(7) West St. Paul police relief association.
(c) The formula percentage rate shall be 2.5 percent per
year of allowable service for each of the first 20 years of
allowable service and .5 percent per year of allowable service
for each year of service in excess of 25 years of allowable
service for the former members of the following consolidating
relief associations:
(1) Austin firefighters relief association;
(2) Austin police relief association;
(3) South St. Paul firefighters relief association;
(4) South St. Paul police relief association; and
(5) Virginia police relief association.
(d) The formula percentage rate shall be 2.1875 percent per
year of allowable service for each of the first 20 years of
allowable service and 1.25 percent per year of allowable service
for each year of allowable service in excess of 20 years of
allowable service but not in excess of 27 years of allowable
service for the former members of the Columbia Heights police
relief association.
(e) The formula percentage rate shall be 2.65 percent per
year of allowable service for each of the first 20 years of
allowable service and an additional annual benefit of $120 per
year of allowable service in excess of 20 years of allowable
service but not in excess of 25 years of allowable service for
the former members of the following consolidating relief
associations:
(1) Hibbing firefighters relief association; and
(2) Hibbing police relief association.
(f) The formula percentage rate or rates shall be the
following for the former members of the consolidating relief
associations as indicated:
(1) 2.5 percent per year of allowable service for each of
the first 20 years of allowable service, one percent per year of
allowable service in excess of 20 years of allowable service but
not more than 25 years of allowable service, and 1.5 percent per
year of allowable service in excess of 25 years of allowable
service, Albert Lea firefighters relief association;
(2) 2.5333 percent per year of allowable service for each
of the first 20 years of allowable service and 1.3333 percent
per year of allowable service in excess of 20 years of allowable
service, but not in excess of 27 years of allowable service, if
service as an active member terminated before January 31, 1994,
and 2.3333 percent per year of allowable service for each of the
first 20 years of allowable service and 1.3333 percent per year
of allowable service for each year of allowable service in
excess of 20 years of allowable service, but not in excess of 27
years of allowable service if service as an active member
terminated on or after January 31, 1994, Bloomington police
relief association;
(3) the greater of 2.5 percent per year of allowable
service for each of the first 20 years of allowable service
applied to the final salary base, or two percent per year of
allowable service for each of the first 20 years of allowable
service applied to top grade patrol officer's salary base,
Brainerd police relief association;
(4) 4.25 percent per year of allowable service for each of
the first 20 years of allowable service and an additional
benefit of $10 per month per year of allowable service in excess
of 20 years of allowable service but not more than 25 years of
allowable service, Buhl police relief association;
(5) 2.5 percent per year of allowable service for each of
the first 20 years of allowable service and an additional
benefit of $5 per month per year of allowable service in excess
of 20 years of allowable service but not more than 25 years of
allowable service, Chisholm firefighters relief association;
(6) 2.5 percent per year of allowable service for each of
the first 20 years of allowable service and an additional
benefit of $5 per month per year of allowable service in excess
of 20 years of allowable service but not more than 25 years of
allowable service and .5 percent per year of allowable service
in excess of 25 years of allowable service, Chisholm police
relief association;
(7) 2.1875 percent per year of allowable service for each
year of the first 20 years of allowable service, 1.25 percent
per year of allowable service in excess of 20 years of allowable
service but not more than 25 years of allowable service and 1.75
percent per year of allowable service in excess of 25 years of
allowable service, Columbia Heights fire department relief
association, paid division;
(8) 2.5 percent per year of allowable service for each year
of the first 20 years of allowable service and 1.5 percent per
year of allowable service rendered after attaining the age of 60
years, Crookston fire department relief association;
(9) 2.5 percent per year of allowable service for each year
of the first 30 years of allowable service, Crookston police
relief association;
(10) 2.25 percent per year of allowable service for each
year of the first 20 years of allowable service and 1.25 percent
per year of allowable service in excess of 20 years of allowable
service, but not more than 27 years of service, Crystal police
relief association;
(11) 1.99063 percent per year of allowable service for each
year of the first 20 years of allowable service, 1.25 percent
for the 21st year of allowable service, and 2.5 percent per year
of allowable service in excess of 21 years of allowable service
but not more than 25 years of allowable service, Duluth
firefighters relief association;
(12) 1.9875 percent per year of allowable service for each
year of the first 20 years of allowable service, 1.25 percent
for the 21st year of allowable service, and 2.5 percent per year
of allowable service in excess of 21 years of allowable service
but not more than 25 years of allowable service, Duluth police
relief association;
(13) 2.5 percent per year of allowable service for each
year of the first 20 years of allowable service, and two percent
per year of allowable service in excess of 20 years but not more
than 25 years of allowable service and not to include any year
of allowable service rendered after attaining the age of 55
years, Fairmont police benefit association;
(14) two percent per year of allowable service for each
year of the first ten years of allowable service, 2.67 percent
per year of allowable service in excess of ten years of
allowable service but not more than 20 years of allowable
service and 1.3333 percent per year of allowable service in
excess of 20 years of service but not more than 27 years of
allowable service, Fridley police pension association;
(15) 2.5 percent per year of allowable service for each
year of the first 20 years of allowable service and an
additional annual amount of $30 per year of allowable service in
excess of 20 years of allowable service but not more than 30
years of allowable service, Mankato fire department relief
association;
(16) for members who terminated active service as a
Minneapolis firefighter before June 1, 1993, 2.0625 percent per
year of allowable service for each year of the first 20 years of
allowable service, 1.25 percent per year of allowable service in
excess of 20 years of allowable service but not more than 24
years of allowable service and five percent for the 25th year of
allowable service, and for members who terminated active service
as a Minneapolis firefighter after May 31, 1993, two percent for
each year of the first 19 years of allowable service, 3.25
percent for the 20th year of allowable service, and two percent
per year of allowable service in excess of 20 years of service,
but not more than 25 years of allowable service, Minneapolis
fire department relief association;
(17) two percent per year of allowable service for each
year of the first 25 years of allowable service, Minneapolis
police relief association;
(18) the greater of 2.5 percent per year of allowable
service for each of the first 20 years of allowable service
applied to the final salary base, or two percent per year of
allowable service for each of the first 20 years of allowable
service applied to highest patrol officer's salary base plus .5
percent of the final salary base per year of allowable service
for each of the first three years of allowable service in excess
of 20 years of allowable service, New Ulm police relief
association;
(19) two percent per year of allowable service for each of
the first 25 years of allowable service and 1.5 percent per year
of allowable service in excess of 25 years of allowable service,
Red Wing fire department relief association;
(20) 2.55 2.75 percent per year of allowable service for
each of the first 20 years of allowable service, Richfield fire
department relief association;
(21) 2.4 percent per year of allowable service for each of
the first 20 years of allowable service and 1.3333 percent per
year of allowable service in excess of 20 years of allowable
service but not more than 27 years of allowable service,
Richfield police relief association;
(22) for a former member with less than 20 years of
allowable service on June 16, 1985, 2.6 percent, and for a
former member with 20 or more years of allowable service on June
16, 1985, 2.6175 percent for each of the first 20 years of
allowable service and, for each former member, one percent for
each year of allowable service in excess of 20 years, but no
more than 30 years, St. Louis Park fire department relief
association;
(23) 1.9375 percent per year of allowable service for each
of the first 20 years of allowable service, 2.25 percent per
year of allowable service in excess of 20 years of allowable
service but not more than 25 years of allowable service, and .5
percent per year of allowable service in excess of 25 years of
allowable service, St. Paul fire department relief association;
(24) two percent per year of allowable service for each of
the first 25 years of allowable service and .5 percent per year
of allowable service in excess of 25 years of allowable service,
St. Paul police relief association;
(25) 2.25 percent per year of allowable service for each of
the first 20 years of allowable service and one percent per year
of allowable service in excess of 20 years but not more than 25
years of allowable service and .5 percent per year of allowable
service in excess of 25 years, Virginia fire department relief
association;
(26) two percent per year of allowable service for each of
the first 20 years of allowable service, one percent per year of
allowable service in excess of 20 years but not more than 24
years of allowable service, three percent for the 25th year of
allowable service and one percent per year of allowable service
in excess of 25 years of allowable service but not more than 30
years of allowable service, West St. Paul firefighters relief
association; and
(27) 2.333 percent for each of the first 20 years of
allowable service, 1.333 percent for each year of allowable
service in excess of 20 years but no more than 28 years, and .5
percent for each year of allowable service in excess of 25
years, Winona fire department relief association.
Sec. 3. Minnesota Statutes 1996, section 353B.08,
subdivision 6, is amended to read:
Subd. 6. [DUTY DISABILITY BENEFIT AMOUNT.] (a) The duty
disability benefit shall be an amount equal to the service
pension amount to which the person would have been entitled if
the person had credit for the greater of actual years of
allowable service or 20 years of allowable service, had attained
the minimum age for the receipt of a service pension, and had
applied for a service pension rather than a disability benefit
for the former members of the following consolidating relief
associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association;
(3) Anoka police relief association;
(4) Austin police relief association;
(5) Buhl police relief association;
(6) Chisholm police relief association;
(7) Duluth police relief association;
(8) Faribault fire department relief association;
(9) Mankato police benefit association;
(10) Minneapolis police relief association;
(11) New Ulm police relief association;
(12) Red Wing police relief association;
(13) St. Paul police relief association;
(14) South St. Paul police relief association; and
(15) Virginia police relief association.
(b) The duty disability benefit shall be an amount equal to
48 percent of the salary base for the former members of the
following consolidating relief associations:
(1) Fridley police pension association;
(2) Richfield police relief association;
(3) Rochester fire department relief association;
(4) Rochester police relief association;
(5) St. Cloud fire department relief association;
(6) St. Cloud police relief association;
(7) St. Louis Park police relief association; and
(8) Winona police relief association.
(c) The duty disability benefit shall be an amount equal to
50 percent of the salary base for the former members of the
following consolidating relief associations:
(1) Austin firefighters relief association;
(2) Crookston fire department relief association;
(3) Fairmont police benefit association;
(4) Mankato fire department relief association;
(5) Richfield fire department relief association;
(6) South St. Paul firefighters relief association; and
(7) (6) Virginia fire department relief association.
(d) The duty disability benefit shall be an amount equal to
45 percent of the salary base for the former members of the
Crystal police relief association.
(e) The duty disability benefit shall be an amount equal to
40 percent of the salary base for the former members of the
following consolidating relief associations:
(1) West St. Paul firefighters relief association; and
(2) West St. Paul police relief association.
(f) The duty disability benefit shall be the following for
the former members of the consolidating relief associations as
indicated:
(1) 52 percent of the salary base for former members who
were disabled before January 31, 1994, and 48 percent of the
salary base for former members who become disabled after January
31, 1994, Bloomington police relief association;
(2) 40 percent of the top salary for a patrol officer,
Brainerd police relief association;
(3) $100 per month, Chisholm firefighters relief
association;
(4) 37.5 percent of the salary base if the person has
credit for less than ten years of allowable service, 43.75
percent of the salary base if the person has credit for more
than nine years but less than 15 years of allowable service and
50 percent of the salary base if the person has credit for more
than 14 years of allowable service credit, Columbia Heights fire
department relief association, paid division;
(5) 43.75 percent of the salary base, Columbia Heights
police relief association;
(6) 25 percent of the salary base if the person has credit
for less than 12 years of allowable service and an additional
amount equal to 2.5 percent of the salary base per year if
allowable service for each year of allowable service in excess
of 11 years of allowable service, not more than 50 percent,
Crookston police relief association;
(7) 51.0625 percent of the salary base, Duluth firefighters
relief association;
(8) 12.5 percent of the salary base if the person has
credit for less than six years of allowable service, 2.5 percent
of the salary base per year of allowable service if the person
has more than five years of allowable service, but not more than
50 percent of the salary base, Faribault police benefit
association;
(9) the dollar amount which equals the benefit which would
be payable under chapter 176 for a comparable benefit which
qualifies for a workers' compensation benefit for a first class
disability, 75 percent of the amount payable in the event of a
first class disability for a second class disability and 50
percent of the amount payable in the event of a first class
disability for a third class disability, Hibbing firefighters
relief association;
(10) $120 per month, Hibbing police relief association;
(11) 51.25 percent of the salary base for a first class
disability, 41.25 percent of the salary base for a second class
disability, and 31.25 percent of the salary base for a third
class disability, Minneapolis fire department relief
association;
(12) 40 percent of the salary base if the person has credit
for less than 20 years of allowable service and two percent of
the salary base per year of allowable service if the person has
more than 19 years of allowable service, but not more than 50
percent, Red Wing fire department relief association;
(13) 54 percent of the salary base, Richfield fire
department relief association;
(14) 50 percent of the salary base if the person has credit
for less than 20 years of allowable service and an amount equal
to the service pension amount to which the person would have
been entitled based on the applicable amount of allowable
service if the person had attained the minimum age for the
receipt of a service pension and had applied for a service
pension rather than a disability benefit and if the person has
credit for at least 20 years of allowable service, St. Louis
Park fire department relief association;
(14) (15) 50 percent of the salary base if the person is
not able to perform the duties of any other gainful employment,
39.375 percent of the salary base if the person is only able to
perform the duties of light manual labor or office employment
and 33.75 percent of the salary base if the person is able to
perform the duties of other manual labor, St. Paul fire
department relief association; and
(15) (16) 42.667 percent of the salary base, Winona fire
department relief association.
Sec. 4. Minnesota Statutes 1996, section 353B.11,
subdivision 3, is amended to read:
Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The
surviving spouse benefit shall be 30 percent of the salary base
for the former members of the following consolidating relief
associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association;
(3) Anoka police relief association;
(4) Austin police relief association;
(5) Brainerd police benefit association;
(6) Crookston police relief association;
(7) Faribault fire department relief association; and
(8) West St. Paul firefighters relief association.
(b) The surviving spouse benefit shall be 25 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Chisholm police relief association;
(2) Duluth firefighters relief association;
(3) Duluth police pension association;
(4) Fairmont police benefit association;
(5) Red Wing fire department relief association;
(6) South St. Paul police relief association; and
(7) West St. Paul police relief association.
(c) The surviving spouse benefit shall be 24 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Fridley police pension association;
(2) Richfield police relief association;
(3) Rochester fire department relief association;
(4) Rochester police relief association;
(5) Winona fire department relief association; and
(6) Winona police relief association.
(d) The surviving spouse benefit shall be 40 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Columbia Heights fire department relief association,
paid division; and
(2) New Ulm police relief association; and
(3) Richfield fire department relief association.
(e) The surviving spouse benefit shall be $250 per month
for the former members of the following consolidating relief
associations:
(1) Hibbing firefighters relief association; and
(2) Hibbing police relief association.
(f) The surviving spouse benefit shall be 23.75 percent of
the salary base for the former members of the following
consolidating relief associations:
(1) Crystal police relief associations; and
(2) Minneapolis police relief association.
(g) The surviving spouse benefit shall be 32 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) St. Cloud fire department relief association; and
(2) St. Cloud police relief association.
(h) The surviving spouse benefit shall be one-half of the
service pension or disability benefit which the deceased member
was receiving as of the date of death, or of the service pension
which the deferred member would have been receiving if the
service pension had commenced as of the date of death or of the
service pension which the active member would have received
based on the greater of the allowable service credit of the
person as of the date of death or 20 years of allowable service
credit if the person would have been eligible as of the date of
death, for the former members of the following consolidating
relief associations:
(1) Virginia fire department relief association; and
(2) Virginia police relief association.
(i) The surviving spouse benefit shall be the following for
the former members of the consolidating relief associations as
indicated:
(1) 30 percent of the salary base, reduced by any amount
awarded or payable from the service pension or disability
benefit of the deceased former firefighter to a former spouse of
the member by virtue of the legal dissolution of the member's
marriage to the former spouse if the surviving spouse married
the member after the time of separation from active service,
Austin firefighters relief association;
(2) 27.333 percent of the salary base, or one-half of the
service pension payable to or accrued by the deceased former
member, whichever is greater, Bloomington police relief
association;
(3) 72.25 percent of the salary base, Buhl police relief
association;
(4) 50 percent of the service pension which the active
member would have received based on allowable service credit to
the date of death and prospective service from the date of death
until the date on which the person would have attained the
normal retirement age, 50 percent of the service pension which
the deferred member would have been receiving if the service
pension had commenced as of the date of death or $175 per month
if the deceased member was receiving a service pension or
disability benefit as of the date of death, Chisholm
firefighters relief association;
(5) two-thirds of the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the greater of the allowable
service credit of the person as of the date of death or 20 years
of allowable service credit if the person would have been
eligible as of the date of death, Columbia Heights police relief
association;
(6) the greater of $300 per month or one-half of the
service pension or disability benefit which the deceased member
was receiving as of the date of death, or of the service pension
which the deferred member would have been receiving if the
service pension had commenced as of the date of death or of the
service pension which the active member would have received
based on the allowable service credit of the person as of the
date of death if the person would have been eligible as of the
date of death, Crookston fire department relief association;
(7) $100 per month, Faribault police benefit association;
(8) 60 percent of the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the allowable service credit of the
person as of the date of death if the person would have been
eligible as of the date of death, Mankato fire department relief
association;
(9) $175 per month, Mankato police benefit association;
(10) 26.25 percent of the salary base, Minneapolis fire
department relief association;
(11) equal to the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the allowable service credit of the
person as of the date of death if the person would have been
eligible as of the date of death, Red Wing police relief
association;
(12) 78.545 percent of the benefit amount payable prior to
the death of the deceased active, disabled, deferred, or retired
firefighter if that firefighter's benefit was 55 percent of
salary or would have been 55 percent of salary if the
firefighter had survived to begin benefit receipt; or 80 percent
of the benefit amount payable prior to the death of the deceased
active, disabled, deferred, or retired firefighter if that
firefighter's benefit was 54 percent of salary or would have
been 54 percent of salary if the firefighter had survived to
begin benefit receipt, Richfield fire department relief
association;
(13) 40 percent of the salary base for a surviving spouse
of a deceased active member, disabled member, or retired or
deferred member with at least 20 years of allowable service, or
the prorated portion of 40 percent of the salary base that bears
the same relationship to 40 percent that the deceased member's
years of allowable service bear to 20 years of allowable service
for the surviving spouse of a deceased retired or deferred
member with at least ten but less than 20 years of allowable
service, St. Louis Park fire department relief association;
(13) (14) 26.6667 percent of the salary base, St. Louis
Park police relief association;
(14) (15) 27.5 percent of the salary base, St. Paul fire
department relief association;
(15) (16) 20 percent of the salary base, St. Paul police
relief association; and
(16) (17) 27 percent of the salary base, South St. Paul
firefighters relief association.
Sec. 5. Minnesota Statutes 1996, section 353B.11,
subdivision 4, is amended to read:
Subd. 4. [AMOUNT; SURVIVING CHILD BENEFIT.] (a) The
surviving child benefit shall be eight percent of the salary
base for the former members of the following consolidating
relief associations:
(1) Fridley police pension association;
(2) Red Wing fire department relief association;
(3) Richfield police relief association;
(4) Rochester fire department relief association;
(5) Rochester police relief association;
(6) St. Cloud police relief association;
(7) St. Louis Park police relief association;
(8) South St. Paul firefighters relief association;
(9) Winona fire department relief association; and
(10) Winona police relief association.
(b) The surviving child benefit shall be $25 per month for
the former members of the following consolidating relief
associations:
(1) Anoka police relief association;
(2) Austin firefighters relief association;
(3) Austin police relief association;
(4) Faribault police benefit association;
(5) Hibbing firefighters relief association;
(6) Mankato police benefit association;
(7) South St. Paul police relief association; and
(8) Virginia fire department relief association.
(c) The surviving child benefit shall be ten percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Albert Lea police relief association;
(2) Crookston police relief association;
(3) Duluth firefighters relief association;
(4) Duluth police pension association;
(5) Faribault fire department relief association; and
(6) Minneapolis fire department relief association.
(d) The surviving child benefit shall be five percent of
the salary base for the former members of the following
consolidating relief associations:
(1) Columbia Heights fire department relief association,
paid division;
(2) St. Paul police relief association; and
(3) West St. Paul firefighters relief associations.
(e) The surviving child benefit shall be $15 per month for
the former members of the following consolidating relief
associations:
(1) Crookston fire department relief association;
(2) Hibbing police relief association; and
(3) West St. Paul police relief association.
(f) The surviving child benefit shall be 7.5 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Bloomington police relief association; and
(2) Crystal police relief association.
(g) The surviving child benefit shall be the following for
the former members of the consolidating relief associations as
indicated:
(1) ten percent of the salary base if a surviving spouse
benefit is also payable, that amount between ten percent of the
salary base and 50 percent of the salary base as determined by
the executive director of the public employees retirement
association, based on the financial circumstances and need of
the surviving child or surviving children, applied in a uniform
manner, reflective to the extent practicable or determinable to
the past administrative practices of the board of the
consolidating relief association before the effective date of
the consolidation if there is a surviving spouse but no
surviving spouse benefit is also payable on account of the
remarriage of the surviving spouse, or 50 percent of the salary
base, payable in equal shares for more than one surviving child,
if there is no surviving spouse, Albert Lea firefighters relief
association;
(2) four percent of the salary base, Brainerd police
benefit association;
(3) $125 per month if a surviving spouse benefit is also
payable or an amount equal to the surviving spouse benefit,
payable in equal shares if there is more than one surviving
child, if no surviving spouse benefit is payable, Buhl police
relief association;
(4) $15 per month, Chisholm firefighters relief
association;
(5) $125 per month, Chisholm police relief association;
(6) $50 per month, Columbia Heights police relief
association;
(7) 6.25 percent of the salary base, Fairmont police
benefit association;
(8) 12.5 percent of the service pension or disability
benefit which the deceased member was receiving as of the date
of death, or of the service pension which the deferred member
would have been receiving if the service pension had commenced
as of the date of death or of the service pension which the
active member would have received based on the allowable service
credit of the person as of the date of death if the person would
have been eligible as of the date of death, Mankato fire
department relief association;
(9) ten percent of the salary base if a surviving spouse
benefit is also payable or an amount determined by the executive
director of the public employees retirement association based on
the financial circumstances and need of the surviving child or
surviving children, applied in a uniform manner, and subject to
the largest applicable amount surviving child benefit maximum if
no surviving spouse benefit is also payable, Minneapolis police
relief association;
(10) $25 per month if a surviving spouse benefit is also
payable or an amount equal to the surviving spouse benefit,
payable in equal shares if there is more than one surviving
child, New Ulm police relief association;
(11) in an amount determined by the executive director of
the public employees retirement association based on the
financial circumstances and need of the surviving child or
surviving children, applied in a uniform manner, reflective to
the extent practicable or determinable to the past
administrative practices of the board of the consolidating
relief association before the effective date of the
consolidation and not more than the largest surviving child
benefit amount prescribed for any other actual or potential
consolidating relief association as provided in this section,
Red Wing police relief association;
(12) five percent of the salary base if a surviving spouse
benefit is also payable or 15 percent of the salary base if no
surviving spouse benefit is payable, 9.818 percent of the
benefit payable to the firefighter or to which the firefighter
would have been eligible at the time of death if that
firefighter's benefit was or would have been 55 percent of
salary and if a surviving spouse benefit is also payable or
29.454 percent if a surviving spouse benefit is not payable; or
ten percent of the benefit payable to the firefighter or to
which the firefighter would have been eligible at the time of
death if that firefighter's benefit was or would have been 54
percent of salary and if a surviving spouse benefit is also
payable or 30 percent if a surviving spouse benefit is not
payable, Richfield fire department relief association;
(13) 5.3334 percent of the salary base, St. Cloud fire
department relief association;
(14) five percent of the salary base if a surviving spouse
benefit is also payable or 15 percent of the salary base if no
surviving spouse benefit is also payable for the surviving child
or children of a deceased active member, disabled member, or
retired or deferred member with at least 20 years of active
service, or the prorated portion of five percent of the salary
base if a surviving spouse benefit is also payable or 15 percent
of the salary base if no surviving spouse benefit is also
payable that bears the same relationship to five or 15 percent
that the deceased member's years of allowable service bear to 20
years of allowable service for the surviving child or children
of a deceased retired or deferred member with at least ten but
less than 20 years of allowable service, St. Louis Park fire
department relief association;
(15) ten percent of the salary base, St. Paul fire
department relief association; and
(16) $50 per month, Virginia police relief association.
Sec. 6. Minnesota Statutes 1996, section 353B.11,
subdivision 5, is amended to read:
Subd. 5. [SURVIVOR BENEFIT MAXIMUM.] (a) No surviving
children or surviving family maximum shall be applicable to
former members of the following consolidating relief
associations:
(1) Buhl police relief association;
(2) Chisholm firefighters relief association;
(3) Chisholm police relief association;
(4) Hibbing firefighters relief association;
(5) Mankato police benefit association;
(6) New Ulm police relief association;
(7) Red Wing fire department relief association;
(8) Red Wing police relief association;
(9) St. Paul police relief association; and
(10) South St. Paul police relief association.
(b) The surviving children maximum shall be 24 percent of
the salary base, if a surviving spouse benefit is also payable
or 48 percent of the salary base, if no surviving spouse benefit
is also payable, for the former members of the following
consolidating relief associations:
(1) Fridley police pension association;
(2) Richfield police relief association;
(3) Rochester fire department relief association;
(4) Rochester police relief association;
(5) Winona fire department relief association; and
(6) Winona police relief association.
(c) The surviving family maximum shall be 50 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Anoka police relief association;
(2) Austin firefighters relief association;
(3) Austin police relief association;
(4) Duluth firefighters relief association; and
(5) Richfield fire department relief association; and
(6) St. Louis Park fire department relief association.
(d) The surviving family maximum shall be an amount equal
to the service pension which a retiring member would have
received based on 20 years of allowable service credit if the
member had attained the age of at least 50 years in the case of
an active member, or of the service pension which the deferred
member would have been receiving if the service pension had
commenced as of the date of death in the case of a deferred
member, or of the service pension or disability benefit which
the deceased member was receiving as of the date of death, for
the former members of the following consolidating relief
associations:
(1) Columbia Heights police relief association;
(2) Virginia fire department relief association; and
(3) Virginia police relief association.
(e) The surviving children maximum shall be 25 percent of
the salary base, if a surviving spouse benefit is also payable
or 50 percent of the salary base, if no surviving spouse benefit
is also payable, for the former members of the following
consolidating relief associations:
(1) Duluth police pension association; and
(2) Fairmont police benefit association.
(f) The surviving children maximum shall be 22.5 percent of
the salary base, if a surviving spouse benefit is also payable
or 45 percent of the salary base, if no surviving spouse benefit
is also payable, for the former members of the Crystal police
relief association.
(g) The surviving children maximum shall be 16 percent of
the salary base, if a surviving spouse benefit is also payable
or 48 percent of the salary base, if no surviving spouse benefit
is also payable, for the former members of the following
consolidating relief associations:
(1) St. Cloud fire department relief association; and
(2) St. Cloud police relief association.
(h) The surviving children maximum shall be 20 percent of
the salary base, if a surviving spouse benefit is also payable
or 50 percent of the salary base, if no surviving spouse benefit
is also payable, for the former members of the following
consolidating relief associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association; and
(3) Faribault fire department relief association.
(i) The surviving family maximum shall be the following for
the former members of the consolidating relief associations:
(1) 60 percent of the salary base, Bloomington police
relief association;
(2) $450 per month, Crookston police relief association;
(3) 80 percent of the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the greater of the allowable
service credit of the person as of the date of death or 20 years
of allowable service credit if the person would have been
eligible as of the date of death, Mankato fire department relief
association; and
(4) 98.182 percent of the benefit amount payable or to
which the firefighter was eligible prior to the death of the
firefighter if that firefighter's benefit was or would have been
55 percent of salary, or 100 percent of the benefit amount
payable or to which the firefighter was eligible prior to the
death of the firefighter if that firefighter's benefit was or
would have been 54 percent of salary, Richfield fire department
relief association; and
(5) 57.5 percent of the salary base, St. Paul fire
department relief association.
(j) The surviving child maximum shall be the following for
the former members of the consolidating relief associations:
(1) 20 percent of the top salary payable to a patrol
officer, Brainerd police benefit association;
(2) ten percent of the salary base, if a surviving spouse
benefit is also payable or 15 percent of the salary base, if no
surviving spouse benefit is also payable, Columbia Heights fire
department relief association, paid division;
(3) $105 per month if a surviving spouse benefit is also
payable or $90 per month if no surviving spouse benefit is also
payable, Crookston fire department relief association;
(4) $125 per month, Faribault police benefit association;
(5) $30 per month if a surviving spouse benefit is also
payable or $180 per month if no surviving spouse benefit is also
payable, Hibbing police relief association;
(6) 25 percent of the salary base, if a surviving spouse
benefit is also payable or 51.25 percent of the salary base, if
no surviving spouse benefit is also payable, Minneapolis fire
department relief association;
(7) 17.5 percent of the salary base, if a surviving spouse
benefit is also payable or 50 percent of the salary base, if no
surviving spouse benefit is also payable, Minneapolis police
relief association;
(8) 24 percent of the salary base, St. Louis Park police
relief association;
(9) 23 percent of the salary base, if a surviving spouse
benefit is also payable or 50 percent of the salary base, if no
surviving spouse benefit is also payable, South St. Paul
firefighters relief association;
(10) ten percent of the salary base, West St. Paul
firefighters relief association; and
(11) $30 per month if a surviving spouse benefit is also
payable or $75 per month if no surviving spouse benefit is also
payable, West St. Paul police relief association.
Sec. 7. Laws 1943, chapter 196, section 4, as amended by
Laws 1951, chapter 44, section 1, Laws 1955, chapter 88, section
1, Laws 1978, chapter 675, section 1, Laws 1991, chapter 28,
section 1, and Laws 1992, chapter 428, section 1, is amended to
read:
Sec. 4. [RETIREMENT AGE, PENSION.] When any member of the
association reaches the age of 55 years, he may retire and then
shall receive a pension as long as he lives, at the following
rates:
(a) When he has served as a member of the police department
for a period of 20 years or more, excluding temporary employment
or probationary periods. Such retired member shall be paid each
month a pension equal to one-half of his average monthly
earnings during the last preceding three years of his service
with said police department, plus an additional $3 per month for
each year of service not to exceed 20 years.
(b) An additional $8 per month for each year of service
over 20 that he has served as a member of such police department
after the age of 55 years, not to exceed five years for purposes
of pension computation,
(c) In the event he retires after reaching the age of 55 or
more and after having been a member of the department for at
least 15 years, but before having served 20 years in the
department, the amount of pension which he received shall be
that proportion of, pension equal to one-half of his average
monthly earnings during the last preceding three years of his
service with said police department, plus an additional $3 per
month for each year of service. Major fractions of years of
service to be treated as one year and minor fractions
disregarded,
(d) In no event shall temporary employment or employment
for probationary period be considered in computing pension
allowances hereunder,
(e) When a service pensioner or an active member of the
police department who has 20 years or more of service, dies,
leaving a surviving spouse or children, a pension shall be paid
as follows:
1. To the surviving spouse a pension of $375 a month for
life,
2. To the child or children, if their surviving parent is
living, a pension of $10 per month for each child not over
sixteen years of age, provided, the total pension hereunder for
surviving spouse and children of the deceased member, shall not
exceed the sum of $395 per month,
3. A child or children of a deceased member, or after the
death or remarriage of their surviving parent, be entitled to
receive a pension or pensions of $10 per month until they have
reached the age of 16 years.
(f) The city council may, by resolution, increase the
pension payable to a surviving spouse by an amount equal to any
increase in the revised consumer price index for all urban
consumers for the Minneapolis-St.Paul metropolitan area prepared
by the United States Department of Labor, provided that no
increase may exceed five percent a year.
Sec. 8. Laws 1965, chapter 705, section 1, subdivision 4,
is amended to read:
Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 625;
APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the
organization, operation, maintenance and conduct of the affairs
of the converted district shall be governed by general laws
relating to independent districts, except as otherwise provided
in Extra Session Laws 1959, Chapter 71, as amended, and all
special laws and charter provisions relating only to the
converted district are repealed.
(b) Where an existing pension law is applicable to
employees of the special district, such law shall continue to be
applicable in the same manner and to the same extent to
employees of the converted district. Notwithstanding this
requirement, pipefitters and associated trades personnel with
coverage by the pipefitters local 455 pension plan under a
collective bargaining agreement who either were first employed
after May 1, 1997, or, if first employed before May 2, 1997,
elected exclusion from coverage under section 12 are not covered
by the public employees retirement association.
(c) General laws applicable to independent school districts
wholly or partly within cities of the first class shall not be
applicable to the converted district.
(d) The provision of the statutes applicable only to
teachers retirement fund associations in cities of the first
class, limiting the amount of annuity to be paid from public
funds, limiting the taxes to be levied to carry out the plan of
such associations, and limiting the amount of annuities to be
paid to beneficiaries, all as contained in Minnesota Statutes,
Section 135.24, shall not be applicable to such converted
district, but the statutes applicable to such special district
prior to the conversion shall continue to be applicable and the
pension plan in operation prior to the conversion shall continue
in operation until changed in accordance with law, and the
teacher tenure law applicable to the special district shall
continue to apply to the converted district in the same manner
and to the same extent to teachers in the converted district;
provided further, where existing civil service provisions of any
law or charter are applicable to special district employees,
such provision shall continue to be applicable in the same
manner and to the same extent to employees of the converted
district. Notwithstanding any contrary provision of Extra
Session Laws 1959, Chapter 71, as amended, if there was in the
special district a teachers retirement fund association
operating and existing under the provisions of Laws 1909,
Chapter 343, and all acts amendatory thereof, then such teachers
retirement fund association shall continue to exist and operate
in the converted district under and to be subject to the
provisions of Laws 1909, Chapter 343, and all acts amendatory
thereof, to the same extent and in the same manner as before the
conversion, and, without limiting the generality of the
foregoing, such teachers retirement fund association shall
continue, after the conversion as before the conversion, to
certify to the same authorities the amount necessary to raise by
taxation in order to carry out its retirement plan, and it shall
continue, after the conversion as before the conversion, to be
the duty of said authorities to include in the tax levy for the
ensuing year a tax in addition to all other taxes sufficient to
produce so much of the sums so certified as said authorities
shall approve, and such teachers retirement fund association
shall not be subject after the conversion to any limitation on
payments to any beneficiary from public funds or on taxes to be
levied to carry out the plan of such association to which it was
not subject before the conversion.
Sec. 9. Laws 1967, chapter 798, section 2, is amended to
read:
Sec. 2. [RICHFIELD FIRE DEPARTMENT RELIEF ASSOCIATION;
DISABILITY PENSION AMOUNT.] In lieu of the disability pension
and limitation as provided for in Minnesota Statutes, Section
424.20, the firemen's fire department relief association in the
city of Richfield may provide for disability benefits, as
defined in Minnesota Statutes, Section 424.19, of not more than
a sum equal to one-half 54 percent of the salary, as payable
from time to time during the period of pension payment
to firemen firefighters of the highest grade, not including
officers of the department, in the employ of the city of
Richfield, such. The disability pension to be is payable as the
bylaws of the association provide.
Sec. 10. Laws 1967, chapter 798, section 4, is amended to
read:
Sec. 4. [SERVICE PENSION.]
Subdivision 1. [AGE AT WHICH SERVICE PENSION IS PAYABLE.]
A member of the fire department, who enters the employment of
the department on or after January 1, 1968, shall not be
eligible to receive a service pension until he the person
reaches the age of 55 years, in lieu of the eligibility
requirement pertaining to age provided in Minnesota Statutes,
Sections 424.21 and 424.22.
Subd. 2. [SERVICE PENSION AMOUNT.] (a) If its bylaws so
provide, in lieu of the service pension amount set forth in
Minnesota Statutes, section 424.21, the Richfield fire
department relief association may provide a service pension, as
specified in paragraph (b) or (c), as applicable, to a retiring
firefighter with at least 20 years of service, based on a
percentage of the salary as payable from time to time during the
period of pension payment to firefighters of the highest grade,
not including officers of the department, in the employ of the
city of Richfield.
(b) If the eligible firefighter terminated service before
the effective date of the alternative benefit improvement
authorized by Minnesota Statutes, section 423A.04, the service
pension is 54 percent of salary as defined in paragraph (a).
(c) If the eligible firefighter terminates service on or
after the effective date of the alternative benefit improvement
authorized by Minnesota Statutes, section 423A.04, the service
pension is 55 percent of salary as defined in paragraph (a).
Sec. 11. Laws 1992, chapter 563, section 5, as amended by
Laws 1996, chapter 448, article 2, section 1, is amended to read:
Sec. 5. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS;
LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.]
(a) A monthly service pension or retirement benefit payment
from the St. Paul fire department consolidation account or the
St. Paul police consolidation account may not be reduced in
amount to an amount that is less than that received by the
person for the immediately previous month.
(b) The service pension or retirement benefit payable from
the St. Paul fire department consolidation account or from the
St. Paul police consolidation account to a person who becomes
newly entitled to that service pension or retirement benefit may
not be an amount that is less than the service pension or
retirement benefit then payable to a comparably situated
pensioner or benefit recipient of that consolidation account.
(c) The limitation in paragraph (a) or (b) may not be
construed to limit the power of the executive director of the
public employees retirement association to require proof of
continuing eligibility for receipt of a disability benefit or a
survivor benefit, or to require the reduction in amount or
elimination of a disability benefit in the event of changed
medical circumstances, or to require the reduction in amount or
elimination of a survivor benefit in the event of changes in
eligibility.
Sec. 12. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN
TRADES PERSONNEL.]
Subdivision 1. [EXCLUSION ELECTION.] (a) A pipefitter or
an associated tradesperson who is employed by independent school
district No. 625 (St. Paul) on the effective date of this
section and who has pension coverage by the pipefitters local
455 pension plan under a collective bargaining agreement may
elect to be excluded from pension coverage by the public
employees retirement association.
(b) The exclusion election under this section must be in
writing on a form prescribed by the executive director of the
public employees retirement association and filed with the
executive director. The exclusion election is irrevocable.
Authority to make the coverage exclusion election expires on
January 1, 1998.
Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A
person who has less than three years of allowable service in the
public employees retirement association and who elects the
pension coverage exclusion under subdivision 1 is entitled to
immediately apply for a refund under Minnesota Statutes, section
353.34, subdivisions 1 and 2, following the effective date of
the exclusion election.
Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the
refund under subdivision 2, a person who elects the pension
coverage exclusion under subdivision 1 is entitled to a deferred
retirement annuity under Minnesota Statutes, sections 353.34,
subdivision 3, and 353.71, subdivision 2, based on any length of
allowable service credit under Minnesota Statutes, section
353.01, subdivision 16, to the credit of the person as of the
date of the coverage exclusion election.
Sec. 13. [RICHFIELD FIRE DEPARTMENT RELIEF ASSOCIATION;
SURVIVOR BENEFIT AMOUNTS.]
Subdivision 1. [ELIGIBILITY.] The Richfield fire
department relief association, if its bylaws so provide, may
provide surviving spouse and surviving child benefits as
specified in subdivisions 2 and 3. For purposes of this
section, the definitions of surviving spouse and surviving child
as defined in Minnesota Statutes, section 424.24, subdivision 2,
apply. The benefits set forth in subdivisions 2 and 3 are in
lieu of the survivor benefits set forth in Minnesota Statutes,
section 424.24, subdivision 1.
Subd. 2. [SURVIVING SPOUSE BENEFIT AMOUNT.] (a) If the
retirement benefit amount for the firefighter was computed under
section 2, subdivision 2, paragraph (c), the surviving spouse
benefit amount is 78.545 percent of the benefit amount payable
prior to the death of the primary annuitant.
(b) If the firefighter was receiving a disability benefit
under section 1, or a retirement benefit under section 2,
subdivision 2, paragraph (b), the surviving spouse benefit
amount is 80 percent of the benefit amount payable prior to the
death of the primary annuitant.
(c) If the death of the active, disabled, deferred, or
retired firefighter occurs prior to the commencement of benefit
payments, the surviving spouse benefit amount is to be computed
under paragraph (a) if the firefighter would have been eligible
for an annuity under section 2, subdivision 2, paragraph (c), at
the time of death, based on the benefit the firefighter would
have received if benefits had commenced prior to death.
(d) If the death of the active, disabled, deferred, or
retired firefighter occurs prior to the commencement of benefit
payments, the surviving spouse benefit amount is to be computed
under paragraph (b) if the firefighter would have been eligible
for an annuity under section 1 or section 2, subdivision 2,
paragraph (b), at the time of death, based on the benefit the
firefighter would have received if benefits had commenced prior
to death.
Subd. 3. [SURVIVING CHILD BENEFIT AMOUNT.] (a) If a
surviving spouse benefit is payable under subdivision 2,
paragraph (a) or (c), each surviving child may also receive a
benefit equal to 9.818 percent of the benefit payable to the
firefighter or to which the firefighter would have been eligible
at the time of death. If there is no surviving spouse, but
benefits would be payable under subdivision 2, paragraph (a) or
(c), if there was, each surviving child may receive a benefit of
29.454 percent of the benefit payable to the firefighter or to
which the firefighter would have been eligible at the time of
death. If a surviving child benefit or benefits are paid under
this paragraph, the maximum of the combination of survivor
benefits under this subdivision and subdivision 2 when these
benefits commence is 98.182 percent of the benefit amount
payable or to which the firefighter was eligible prior to the
death of the firefighter.
(b) If a surviving spouse benefit is payable under
subdivision 2, paragraph (b) or (d), each surviving child may
also receive a benefit equal to ten percent of the benefit
payable to the firefighter or to which the firefighter would
have been eligible at the time of death. If there is no
surviving spouse, but benefits would be payable under
subdivision 2, paragraph (b) or (d), if there was, each
surviving child may receive a benefit of 30 percent of the
benefit payable to the firefighter or to which the firefighter
would have been eligible at the time of death. If a surviving
child benefit or benefits are paid under this paragraph, the
maximum of the combination of survivor benefits under this
subdivision and subdivision 2 when these benefits commence is
100 percent of the benefit amount payable or to which the
firefighter was eligible prior to the death of the firefighter.
Sec. 14. [SURVIVOR BENEFIT DURATION.]
Subdivision 1. [DURATION OF SURVIVING SPOUSE BENEFITS.] A
surviving spouse benefit under section 3 is payable to a
surviving spouse of a deceased active, disabled, deferred, or
retired Richfield firefighter meeting the definition set forth
in Minnesota Statutes, section 424.24, subdivision 2, paragraph
(a), for the life of that person.
Subd. 2. [DURATION OF SURVIVING CHILD BENEFIT.] A
surviving child benefit under section 3 is payable to a
surviving child of a deceased active, disabled, deferred, or
retired Richfield firefighter meeting the definition set forth
in Minnesota Statutes, section 424.24, subdivision 2, paragraph
(b), until the person reaches the age of 18.
Sec. 15. [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS;
BENEFIT FLOOR FOR CERTAIN LOCAL RELIEF ASSOCIATION BENEFIT
RECIPIENTS.]
(a) Notwithstanding Minnesota Statutes, chapter 353A, the
benefit floor provided in paragraph (c) applies to the eligible
benefit recipients specified in paragraph (b). An eligible
benefit recipient is entitled to a service pension or survivor
benefit, whichever applies, as calculated under the applicable
relief association benefit plan provisions and the applicable
provisions of Minnesota Statutes, chapter 353A, or the benefit
floor amount, whichever is greater.
(b) An eligible benefit recipient is a person who is either:
(1) a vested former active member of the former St. Paul
fire department relief association or the former St. Paul police
relief association who terminated active service prior to the
date of the consolidation of the relief association with the
public employees police and fire plan; or
(2) the survivor of a vested former active member of the
former St. Paul fire department relief association or the former
St. Paul police relief association who terminated active service
prior to the date of the consolidation of the relief association
with the public employees police and fire plan.
(c) The benefit floor amount is an amount equal to the
highest service pension, surviving spouse benefit, or surviving
child benefit, whichever applies, then currently payable to any
comparable eligible benefit recipient.
Sec. 16. [JACKSON MEDICAL CENTER; PENSION COVERAGE FOR
TRANSFERRED EMPLOYEES.]
Subdivision 1. [AUTHORIZATION.] This section applies if
the Jackson medical center is sold, leased, or transferred to a
private entity, nonprofit corporation, or public corporation.
Notwithstanding any provision of Minnesota Statutes, sections
356.24 and 356.25 to the contrary, to facilitate the orderly
transition of employees affected by the sale, lease, or
transfer, the city may, at its discretion, make, from assets to
be transferred to the private entity, nonprofit corporation, or
public corporation, payments to a qualified pension plan
established for the transferred employees by the private entity,
nonprofit corporation, or public corporation, to provide
benefits substantially similar to those the employees would have
been entitled to under the provisions of the public employees
retirement association, Minnesota Statutes 1996, sections 353.01
to 353.46.
Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES;
ELIGIBILITY.] (a) An eligible individual is an individual who:
(1) is an employee of the Jackson medical center
immediately prior to the sale, lease, or transfer of that
facility to a private entity, nonprofit corporation, or public
corporation;
(2) is terminated at the time of the sale, lease, or
transfer; and
(3) had less than three years of service credit in the
public employees retirement association plan at the date of
termination.
(b) For an eligible individual under paragraph (a), the
city may make a member contribution equivalent payment under
subdivision 3.
Subd. 3. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The
member contribution equivalent payment is an amount equal to the
total refund provided by Minnesota Statutes, section 353.34,
subdivisions 1 and 2. To be eligible for the member
contribution equivalent payment, the individual in subdivision
2, paragraph (a), must apply for a refund under Minnesota
Statutes, section 353.34, subdivisions 1 and 2, within one year
of termination. A member contribution equivalent amount
exceeding $200 must be made directly to an individual retirement
account under section 408(a) of the federal Internal Revenue
Code, as amended, or to another qualified plan. A member
contribution equivalent amount of $200 or less may, at the
preference of the individual, be made to the individual or to an
individual retirement account under section 408(a) of the
federal Internal Revenue Code, as amended, or to another
qualified plan.
Sec. 17. [MELROSE HOSPITAL AND PINE VILLA; RETIREMENT.]
Subdivision 1. [TRANSFERRED EMPLOYEES.] This section
applies if the Melrose hospital and Pine Villa are sold, leased,
or transferred to a private entity or public corporation.
Notwithstanding any provision of Minnesota Statutes, sections
356.24 and 356.25, to the contrary, to facilitate the orderly
transition of employees affected by the sale, lease, or
transfer, the Melrose hospital and Pine Villa may, in their
discretion, make, from assets to be transferred to the private
entity or public corporation, payments to a qualified pension
plan established for the transferred employees by the private
entity or public corporation, to provide benefits substantially
similar to those the employees would have been entitled to under
the provisions of the public employees retirement association,
Minnesota Statutes 1996, sections 353.01 to 353.46.
Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.]
(a) An eligible individual is an individual who:
(1) is an employee of the Melrose hospital and Pine Villa
immediately prior to the sale, lease, or transfer of that
facility to a private entity or public corporation;
(2) is terminated at the time of the sale, lease, or
transfer; and
(3) had less than three years of service credit in the
public employees retirement association plan at the date of
termination.
(b) For an eligible individual under paragraph (a), the
Melrose hospital and Pine Villa may make a member contribution
equivalent payment under paragraph (c).
(c) The member contribution equivalent payment is an amount
equal to the total refund provided by Minnesota Statutes,
section 353.34, subdivisions 1 and 2. To be eligible for the
member contribution equivalent payment, the individual in
paragraph (a) must apply for a refund under Minnesota Statutes,
section 353.34, subdivisions 1 and 2, within one year of
termination. A member contribution equivalent amount exceeding
$200 must be made directly to an individual retirement account
under section 408(a) of the federal Internal Revenue Code, as
amended, or to another qualified plan. A member contribution
equivalent amount of $200 or less may, at the preference of the
individual, be made to the individual or to an individual
retirement account under section 408(a) of the federal Internal
Revenue Code, as amended, or to another qualified plan.
Sec. 18. [TRACY MUNICIPAL HOSPITAL AND CLINIC; PENSION
COVERAGE FOR TRANSFERRED EMPLOYEES.]
Subdivision 1. [AUTHORIZATION.] This section applies if
the Tracy municipal hospital and clinic is sold, leased, or
transferred to a private entity, nonprofit corporation, or
public corporation. Notwithstanding any provision of Minnesota
Statutes, sections 356.24 and 356.25 to the contrary, to
facilitate the orderly transition of employees affected by the
sale, lease, or transfer, the city may, at its discretion, make,
from assets to be transferred to the private entity, nonprofit
corporation, or public corporation, payments to a qualified
pension plan established for the transferred employees by the
private entity, nonprofit corporation, or public corporation, to
provide benefits substantially similar to those the employees
would have been entitled to under the provisions of the public
employees retirement association, Minnesota Statutes 1996,
sections 353.01 to 353.46.
Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES;
ELIGIBILITY.] (a) An eligible individual is an individual who:
(1) is an employee of the Tracy municipal hospital and
clinic immediately prior to the sale, lease, or transfer of that
facility to a private entity, nonprofit corporation, or public
corporation;
(2) is terminated at the time of the sale, lease, or
transfer; and
(3) had less than three years of service credit in the
public employees retirement association plan at the date of
termination.
(b) For an eligible individual under paragraph (a), the
city may make a member contribution equivalent payment under
subdivision 3.
Subd. 3. [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The
member contribution equivalent payment is an amount equal to the
total refund provided by Minnesota Statutes, section 353.34,
subdivisions 1 and 2. To be eligible for the member
contribution equivalent payment, the individual in subdivision
2, paragraph (a), must apply for a refund under Minnesota
Statutes, section 353.34, subdivisions 1 and 2, within one year
of termination. A member contribution equivalent amount
exceeding $200 must be made directly to an individual retirement
account under section 408(a) of the federal Internal Revenue
Code, as amended, or to another qualified plan. A member
contribution equivalent amount of $200 or less may, at the
preference of the individual, be made to the individual or to an
individual retirement account under section 408(a) of the
federal Internal Revenue Code, as amended, or to another
qualified plan.
Sec. 19. [EVELETH POLICE AND FIREFIGHTERS; BENEFIT
INCREASE.]
Notwithstanding any general or special law to the contrary,
in addition to the current pensions and other retirement
benefits payable, the pensions and retirement benefits payable
to retired police officers and firefighters and their surviving
spouses by the Eveleth police and fire trust fund are increased
by $100 a month. Increases are retroactive to January 1, 1997.
Sec. 20. [LEGISLATIVE INTENT.]
The revisions to the Richfield fire department relief
association benefit plan in sections 2 to 6, 9, 10, 13, and 14
and the retroactive application of sections 9, 10, 13, and 14,
as indicated in section 21, paragraph (b), are intended to
encourage the consolidation of this relief association with the
public employees retirement association, in recognition of the
administrative efficiencies and potential cost savings expected
to occur, and in recognition of characteristics unique to this
association at no expense to the State or the public employees
retirement association.
Sec. 21. [EFFECTIVE DATE.]
(a) Sections 1, 8, and 12 are effective on the day
following approval by majority vote of the board of independent
school district No. 625 (St. Paul) and compliance with Minnesota
Statutes, section 645.021.
(b) Sections 2 to 6, 9, 10, 13, 14 and 20 are effective on
the day following approval by the Richfield city council and
compliance with Minnesota Statutes, section 645.021. Sections
9, 10, 13, and 14 apply to individuals who become service
pensioners, disabilitants, or survivors of firefighters who
terminated service on or after the effective date of Laws 1967,
chapter 798. Retroactive payments and payments to an estate are
not authorized.
(c) Section 7 is effective on approval by the Nashwauk city
council and compliance with Minnesota Statutes, section 645.021.
(d) Sections 11 and 15 are effective on the day following
approval by the city council of the city of St. Paul and
compliance with Minnesota Statutes, section 645.021, subdivision
3. Sections 11 and 15 must both be approved if either section
is to be effective. Sections 11 and 15 are not intended to
result in a reduction in the benefit or pension paid to any
benefit recipient or service pensioner.
(e) Section 16 is effective on the day following approval
by the Jackson city council and compliance with Minnesota
Statutes, section 645.021.
(f) Section 17 is effective on the day following approval
by the Melrose city council and compliance with Minnesota
Statutes, section 645.021.
(g) Section 18 is effective on the day following approval
by the Tracy city council and compliance with Minnesota
Statutes, section 645.021.
(h) Section 19 is effective on the day following approval
by the Eveleth city council and compliance with Minnesota
Statutes, section 645.021.
ARTICLE 3
GENERAL EMPLOYEE RETIREMENT
MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 352.96,
subdivision 2, is amended to read:
Subd. 2. [PURCHASE OF SHARES.] The amount of compensation
so deferred may be used to purchase:
(1) shares in the Minnesota supplemental investment fund
established in section 11A.17;
(2) saving accounts in federally insured financial
institutions;
(3) life insurance contracts, fixed annuity and variable
annuity contracts from companies that are subject to regulation
by the commissioner of commerce; or
(4) investment options from open-end investment companies
registered under the federal Investment Company Act of 1940,
United States Code, title 15, sections 80a-1 to 80a-64;
(5) investment options from a firm that is a registered
investment advisor under the Investment Advisors Act of 1940,
United States Code, title 15, section 80b-1 to 80b-21;
(6) investment options of a bank as defined in United
States Code, title 15, section 80b-2, subsection (a), paragraph
(2), or a bank holding company as defined in the Bank Holding
Company Act of 1956, United States Code, title 12, section 1841,
subsection (a), paragraph (1); or
(7) a combination of clause (1), (2), or (3), (4), (5), or
(6), as provided by the plan as specified by the participant.
The shares accounts or contracts purchased shall stand in
the name of the state or other employing unit, for the officer
or employee whose deferred compensation purchased the shares,
until distributed to the officer or employee in a manner agreed
upon by the employee and the executive director of the Minnesota
state retirement system, acting for the employer. All amounts
contributed to the deferred compensation plan and all earnings
on those amounts will be held for the exclusive benefit of the
plan participants and beneficiaries. These amounts will be held
in trust, in custodial accounts, or in qualifying annuity
contracts as required by federal law and in accordance with
section 356A.06, subdivision 1. This subdivision does not
authorize an employer contribution, except as authorized in
section 356.24, paragraph (a), clause (4). The state, political
subdivision, or other employing unit is not responsible for any
loss that may result from investment of the deferred
compensation.
Sec. 2. Minnesota Statutes 1996, 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), (4), (5), and (6). The state board of investment
may retain consulting services to assist it in soliciting and
evaluating bids and in the periodic review of companies offering
options under subdivision 2, clause clauses (3), (4), (5), and
(6). The periodic review must occur at least every two years.
The state board of investment may annually establish a budget
for its costs in the soliciting, evaluating, and periodic review
processes. The state board of investment may charge a
proportional share of all costs related to the periodic review
to each company currently under contract and may charge a
proportional share of all costs related to soliciting and
evaluating bids to each company selected by the state board.
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
clauses (3), (4), (5), and (6), must be paid by the underwriting
companies ultimately selected by the state board of investment.
Sec. 3. Minnesota Statutes 1996, section 352.96,
subdivision 6, is amended to read:
Subd. 6. [EXEMPTION FROM PROCESS.] As money to which legal
title is vested in the state of Minnesota, No amount of deferred
compensation is assignable or subject to execution, levy,
attachment, garnishment, or other legal process, except as
provided in section 518.58, 518.581, or 518.611.
Sec. 4. Minnesota Statutes 1996, section 354.092,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITION.] A sabbatical leave for the
purpose of this section means a sabbatical leave as defined in
section 125.18 or the applicable personnel policy of
the Minnesota state university and community college boards
colleges and universities.
Sec. 5. Minnesota Statutes 1996, section 354.092,
subdivision 3, is amended to read:
Subd. 3. [EMPLOYER AND EMPLOYEE CONTRIBUTIONS.] Employer
contributions and deductions for employee contributions at the
applicable rate specified in section 354.42 must be made by the
employing unit from based on the full normal base contract
salary that would have been paid to the member for a if the
member were not on sabbatical leave. The member may also make
direct payment of employee contributions at the appropriate
rates specified in section 354.42 based upon the difference
between the salary received for the sabbatical leave and the
salary received for a comparable period during the year
immediately preceding the leave. This direct payment must be
made by the end of the fiscal year following the fiscal year in
which the leave of absence terminated and must be without
interest. The employer must meet the reporting and remittance
requirements under section 354.52.
Sec. 6. Minnesota Statutes 1996, section 354.092,
subdivision 4, is amended to read:
Subd. 4. [SERVICE CREDIT.] If the employee contributions
made under this section are less than the employee contributions
made for a comparable period during the year immediately
preceding the leave, the allowable and formula service credit of
the member shall be prorated according to section 354.05,
subdivision 25, clause (3), except that if the member is paid
full salary for any sabbatical leave of absence, either past or
prospective, the allowable and formula service credit shall not
be prorated. A member may not receive more than three years of
allowable service credit in any ten consecutive years under this
section unless the allowable service credit was paid for by the
member before July 1, 1962. For sabbatical leaves that begin
after June 30, 1986, the required employer contributions
specified in section 354.42 must be paid by the employing unit
within 30 days after the association's written notification to
the employing unit of the amount due. Notwithstanding the
provisions of any agreements to the contrary, employee and
employer contributions may not be made to receive allowable
service credit under this section if the member does not retain
the right to full reinstatement both during and at the end of
the sabbatical leave.
Sec. 7. Minnesota Statutes 1996, section 354B.25, is
amended by adding a subdivision to read:
Subd. 1a. [ADVISORY COMMITTEE.] (a) A committee is created
to advise the state board of investment and the board of
trustees of the Minnesota state colleges and universities
concerning administration of the individual retirement account
plan and the supplemental retirement plan established in chapter
354C. The exclusive representatives of the state university
instructional unit, the community college instructional unit,
and the technical college instructional unit shall each appoint
two members to the committee. The exclusive representatives of
the general professional unit, the supervisory employees unit
and the state university administrative unit shall each appoint
one member to the committee. The chancellor of the Minnesota
state colleges and universities shall appoint three members, at
least one of whom shall be a personnel administrator. No member
of the committee shall be retired. Members serve at the
pleasure of the applicable appointing authority, but no member
shall serve for more than a total of five years. Members shall
be reimbursed from the administrative expense account of the
individual retirement account plan for expenses as provided in
section 15.059, subdivision 3.
(b) The committee shall:
(1) advise the board of trustees of the Minnesota state
colleges and universities on the structure and operation of the
individual retirement account plan and the supplemental
retirement plan;
(2) along with any other consultants selected by the board,
advise the state board of investment on selection of financial
institutions and on the type of investment products to be
offered by these institutions for the plans;
(3) advise the board of trustees of the Minnesota state
colleges and universities on administration of the plans,
including selection of a third-party plan administrator, if any,
for the individual retirement account plan.
(c) The board of trustees of the Minnesota state colleges
and universities shall provide the advisory committee with
meeting space and other administrative support.
(d) Expenses of the advisory committee are considered
administrative expenses of the plans under subdivision 5 and
section 354C.12, subdivision 4, and must be allocated between
the two plans in proportion to the market value of the total
assets of the plans as of the most recent prior audited annual
financial report.
Sec. 8. Minnesota Statutes 1996, section 354B.25,
subdivision 5, is amended to read:
Subd. 5. [INDIVIDUAL RETIREMENT ACCOUNT PLAN
ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary
administrative expenses of the individual retirement account
plan must be paid by plan participants in the following manner:
(1) from plan participants with amounts invested in the
Minnesota supplemental investment fund, the plan administrator
may charge an administrative expense assessment as provided in
section 11A.17, subdivisions 10a and 14; and
(2) from plan participants with amounts through annuity
contracts and custodial accounts purchased under subdivision 2,
paragraph (a), the plan administrator may charge an
administrative expense assessment of a designated amount, not to
exceed two percent of member and employer contributions, as
those contributions are made.
(b) Any administrative expense charge that is not actually
needed for the administrative expenses of the individual
retirement account plan must be refunded to member accounts.
(c) The board of trustees shall report annually, before
October 1, to the advisory committee created in subdivision 1a
on administrative expenses of the plan. The report must include
a detailed accounting of charges for administrative expenses
collected from plan participants and expenditure of the
administrative expense charges. The administrative expense
charges collected from plan participants must be kept in a
separate account from any other funds under control of the board
of trustees and may be used only for the necessary and
reasonable administrative expenses of the plan.
Sec. 9. Minnesota Statutes 1996, section 354C.12,
subdivision 1, is amended to read:
Subdivision 1. [BASIC CONTRIBUTIONS AND DEDUCTIONS.] (a)
The employer of personnel covered by the supplemental retirement
plan as provided in section 354C.11 shall deduct a sum equal to
five percent of the annual salary of the person between $6,000
and $15,000. The employer may accomplish this deduction by
making equal deductions each payroll period, based on
anticipated annual salary. The employer may adjust these
deductions as necessary to deduct the correct amount annually.
Deductions cease upon termination of employment covered by the
supplemental retirement plan.
(b) The basic contribution deduction must be made in the
same manner as other retirement deductions are made from the
salary of the person under section 352.04, subdivision 4;
352D.04, subdivision 2; 354.42, subdivision 2; or 354A.12,
whichever applies.
(c) The employer shall also make a contribution to the
supplemental retirement plan on behalf of covered personnel
equal to the salary deduction made under paragraph (a).
Sec. 10. Minnesota Statutes 1996, section 354C.12,
subdivision 4, is amended to read:
Subd. 4. [ADMINISTRATIVE EXPENSES.] The board of trustees
of the Minnesota state colleges and universities is authorized
to pay the necessary and reasonable administrative expenses of
the supplemental retirement plan. The administrative fees or
charges must be paid by participants in the following manner:
(1) from participants whose contributions are invested with
the state board of investment, the plan administrator may
recover administrative expenses in the manner provided by
section 11A.17, subdivisions 10a and 14; or
(2) from participants where contributions are invested
through contracts purchased from any other authorized source,
the plan administrator may assess an amount of up to two percent
of the employee and employer contributions.
Any recovered or assessed amounts that are not needed for
the necessary and reasonable administrative expenses of the plan
must be refunded to member accounts.
The board of trustees shall report annually, before October
1, to the advisory committee created in section 354B.25,
subdivision 1a, on administrative expenses of the plan. The
report must include a detailed accounting of charges for
administrative expenses collected from plan participants and
expenditure of the administrative expense charges. The
administrative expense charges collected from plan participants
must be kept in a separate account from any other funds under
control of the board of trustees and may be used only for the
necessary and reasonable administrative expenses of the plan.
Sec. 11. [EFFECTIVE DATE.]
(a) Sections 1, 2, and 3 are effective on the day following
enactment.
(b) Sections 4, 5, and 6 are effective on July 1, 1997, and
apply to sabbatical leaves that begin on or after that date.
(c) Sections 7, 8, 9, and 10 are effective on July 1, 1997.
ARTICLE 4
ACTUARIAL ASSUMPTION MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 356.215,
subdivision 4d, is amended to read:
Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) For funds
governed by chapters 352B, 353C, and by sections 352.90 through
352.951 and 353.63 through 353.68, The actuarial valuation must
use a the applicable following preretirement interest assumption
of 8.5 percent, a and the applicable following postretirement
interest assumption of five percent, and a future salary
increase assumption of 6.5 percent.:
preretirement postretirement
interest rate interest rate
plan assumption assumption
general state employees
retirement plan 8.5% 5.0%
correctional state employees
retirement plan 8.5 5.0
state patrol retirement plan 8.5 5.0
legislators retirement plan 8.5 5.0
elective state officers
retirement plan 8.5 5.0
judges retirement plan 8.5 5.0
general public employees
retirement plan 8.5 5.0
public employees police and fire
retirement plan 8.5 5.0
local government correctional
service retirement plan 8.5 5.0
teachers retirement plan 8.5 5.0
Minneapolis employees
retirement plan 6.0 5.0
Duluth teachers retirement plan 8.5 8.5
Minneapolis teachers retirement
plan 8.5 8.5
St. Paul teachers retirement
plan 8.5 7.5
Minneapolis police relief
association 6.0 6.0
other local police relief
associations 5.0 5.0
Minneapolis fire department
relief association 6.0 6.0
other local salaried firefighter
relief associations 5.0 5.0
local monthly benefit volunteer
firefighter relief associations 5.0 5.0
(b) For funds governed by chapter 354A, The actuarial
valuation must use preretirement and postretirement assumptions
of 8.5 percent and a the applicable following single rate future
salary increase assumption of 6.5 percent, but the actuarial
valuation must reflect the payment of postretirement adjustments
to retirees, based on the methods specified in the bylaws of the
fund as approved by the legislature. For a fund governed by
chapter 422A, the actuarial valuation shall use a preretirement
interest assumption of six percent, a postretirement interest
assumption of five percent, and an assumption that in each
future year the salary on which a retirement or other benefit is
based is 1.04 multiplied by the salary for the preceding year.
(c) For all other funds not specified in paragraph (a),
(b), (d), or (e), the actuarial valuation must use a
preretirement interest assumption of five percent, a
postretirement interest assumption of five percent, and a future
salary increase assumption of 3.5 percent.
(d) For funds governed by chapters 3A, 352C, and 490, the
actuarial valuation must use a preretirement interest assumption
of 8.5 percent, a postretirement interest assumption of five
percent, and a future salary increase assumption of 6.5 percent
in each future year in which the salary amount payable is not
determinable from section 3.099, 15A.081, subdivision 6, or
15A.083, subdivision 1, whichever applies, or from applicable
compensation council recommendations under section 15A.082.
(e) For funds governed by sections 352.01 through 352.86,
353.01 through 353.46, and chapter 354, the actuarial valuation
must use a preretirement interest assumption of 8.5, a
postretirement interest assumption of five percent, and a or the
applicable following graded rate future salary increase
assumption as follows:
General state General public
employees employees Teachers
retirement retirement retirement
Age plan plan plan
(1) single rate future salary increase assumption
future salary
plan increase assumption
legislators retirement plan 5.0%
elective state officers retirement
plan 5.0
judges retirement plan 5.0
Minneapolis employees retirement plan 4.0
Minneapolis police relief association 4.0
other local police relief associations 3.5
Minneapolis fire department relief
association 4.0
other local salaried firefighter relief
associations 3.5
(2) graded rate future salary increase assumption
future salary
plan increase assumption
general state employees retirement
plan assumption A
correctional state employees
retirement plan assumption A
state patrol retirement plan assumption A
general public employees retirement
plan assumption B
public employees police and fire
fund retirement plan assumption C
local government correctional service
retirement plan assumption C
teachers retirement plan assumption D
Duluth teachers retirement plan assumption E
Minneapolis teachers retirement plan assumption F
St. Paul teachers retirement plan assumption G
age A B C D E F G
16 7.2500% 8.71% 11.50% 7.25% 8.00% 7.50% 7.25%
17 7.2500 8.71 11.50 7.25 8.00 7.50 7.25
18 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
19 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
20 7.2500 7.70 11.50 7.25 8.00 7.50 7.25
21 7.1454 7.70 11.50 7.25 8.00 7.50 7.25
22 7.1094 7.70 11.00 7.25 8.00 7.50 7.25
23 7.0725 7.70 10.50 7.20 7.90 7.40 7.25
24 7.0363 7.70 10.00 7.15 7.80 7.30 7.20
25 7.0000 7.60 9.50 7.10 7.70 7.20 7.15
26 7.0000 7.51 9.20 7.05 7.60 7.10 7.10
27 7.0000 7.39 8.90 7.00 7.50 7.00 7.05
28 7.0000 7.30 8.60 7.00 7.40 6.90 7.00
29 7.0000 7.20 8.30 7.00 7.30 6.80 6.95
30 7.0000 7.20 8.00 7.00 7.20 6.70 6.90
31 7.0000 7.10 7.80 7.00 7.10 6.60 6.85
32 7.0000 7.10 7.60 7.00 7.00 6.50 6.80
33 7.0000 7.00 7.40 7.00 6.90 6.40 6.75
34 7.0000 7.00 7.20 7.00 6.80 6.30 6.70
35 7.0000 6.90 7.00 7.00 6.70 6.20 6.65
36 6.9019 6.80 6.80 7.00 6.60 6.10 6.60
37 6.8074 6.70 6.60 7.00 6.50 6.00 6.55
38 6.7125 6.60 6.40 6.90 6.40 5.90 6.50
39 6.6054 6.50 6.20 6.80 6.30 5.80 6.40
40 6.5000 6.40 6.00 6.70 6.20 5.70 6.30
41 6.3540 6.30 5.90 6.60 6.10 5.60 6.20
42 6.2087 6.30 5.80 6.50 6.00 5.50 6.10
43 6.0622 6.30 5.70 6.35 5.90 5.45 6.00
44 5.9048 6.20 5.60 6.20 5.80 5.40 5.90
45 5.7500 6.20 5.50 6.05 5.70 5.35 5.80
46 5.6940 6.09 5.45 5.90 5.60 5.30 5.70
47 5.6375 6.00 5.40 5.75 5.50 5.25 5.65
48 5.5822 5.90 5.35 5.70 5.45 5.20 5.60
49 5.5405 5.80 5.30 5.65 5.40 5.15 5.55
50 5.5000 5.70 5.25 5.60 5.35 5.10 5.50
51 5.4384 5.70 5.25 5.55 5.30 5.05 5.45
52 5.3776 5.70 5.25 5.50 5.25 5.00 5.40
53 5.3167 5.70 5.25 5.45 5.25 5.00 5.35
54 5.2826 5.70 5.25 5.40 5.25 5.00 5.30
55 5.2500 5.70 5.25 5.35 5.25 5.00 5.25
56 5.2500 5.70 5.25 5.30 5.25 5.00 5.25
57 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
58 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
59 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
60 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
61 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
62 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
63 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
64 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
65 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
66 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
67 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
68 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
69 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
70 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
(c) The actuarial valuation must use the applicable
following payroll growth assumption for calculating the
amortization requirement for the unfunded actuarial accrued
liability where the amortization retirement is calculated as a
level percentage of an increasing payroll:
payroll growth
plan assumption
general state employees retirement plan 5.00%
correctional state employees retirement plan 5.00
state patrol retirement plan 5.00
legislators retirement plan 5.00
elective state officers retirement plan 5.00
judges retirement plan 5.00
general public employees retirement plan 6.00
public employees police and fire
retirement plan 6.00
local government correctional service
retirement plan 6.00
teachers retirement plan 5.00
Duluth teachers retirement plan 5.00
Minneapolis teachers retirement plan 5.00
St. Paul teachers retirement plan 5.00
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective July 1, 1997, and applies to
actuarial valuations prepared on or after that date.
ARTICLE 5
MISCELLANEOUS PROVISIONS
Section 1. [CLARIFICATION OF RETIREMENT ELIGIBILITY FOR
CERTAIN PERA-P&F RETIREE.]
(a) Notwithstanding any provision of Minnesota Statutes
1996, section 353.01, subdivision 28, to the contrary, a person
described in paragraph (b) must be considered by the public
employees police and fire plan to have retired on October 31,
1996, even though the person may have rendered occasional
employment services during November and December, 1996, for a
governmental subdivision other than the governmental subdivision
that employed the person immediately before October 31, 1996.
(b) A person to whom paragraph (a) applies is a person who:
(1) was born on October 11, 1943;
(2) was hired as a police officer by the city of Rochester
on February 16, 1971; and
(3) terminated employment as a Rochester police officer on
October 31, 1996.
(c) A person described in paragraph (b) must not be
required to repay any public employees police and fire plan
retirement annuity amount received before the date of enactment,
but the amount of the employment earnings paid to the person by
the applicable governmental unit for November and December,
1996, must be deducted by the public employees retirement
association from a subsequent retirement annuity payment.
Sec. 2. [RETIREMENT COVERAGE FOR CERTAIN PART-TIME
TEACHERS.]
Subdivision 1. [ELIGIBLE PART-TIME TEACHER.] (a) A
part-time teacher described in paragraph (b) is eligible for the
retirement coverage specified in subdivision 2.
(b) An eligible part-time teacher is a person who:
(1) was a part-time hourly teacher of nursing employed by
special school district No. 1 at the Minneapolis area
vocational-technical institute and the Minneapolis technical
college during the period April 7, 1975, to June 23, 1990;
(2) was not provided Minnesota public employee retirement
plan pension coverage under Minnesota Statutes, chapter 354A for
the employment period April 7, 1975, to March 7, 1986;
(3) was not included in coverage by the federal old age,
survivors, disability and health insurance program (social
security) for the employment period July 1, 1978, to March 7,
1986; and
(4) was a member of the Minneapolis teachers retirement
fund association for the employment period March 7, 1986, to
June 28, 1991.
Subd. 2. [RETIREMENT COVERAGE.] An eligible part-time
teacher under subdivision 1 is entitled to service credit in the
applicable program of the Minneapolis teachers retirement fund
association for the person's period of part-time teaching
employment by special school district No. 1, April 7, 1975, to
March 7, 1986, upon the payment of the amount specified in
subdivision 3, paragraph (a).
Subd. 3. [AMOUNT.] (a) The payment amount is an amount
equal to the actuarial present value, on the date of payment, as
calculated by the actuary retained by the legislative commission
on pensions and retirement, of the amount of the additional
retirement annuity obtained by the acquisition of the additional
service credit in this section. Calculation of this amount must
be made using the preretirement interest rate applicable to the
Minneapolis teachers retirement fund association specified in
Minnesota Statutes, section 356.215, subdivision 4d, and the
mortality table adopted for the pension plan.
The calculation must assume continuous future service in
the association 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 Minnesota Statutes, section 356.30, are met with
the additional service credit purchased. The calculation must
also assume a full-time equivalent salary, or actual salary,
whichever is greater, and a future salary history that includes
annual salary increases at the applicable salary increase rate
for the plan specified in Minnesota Statutes, section 356.215,
subdivision 4d.
(b) Payment must be made in one lump sum before July 1,
1998.
(c) Payment of the amount calculated under this subdivision
must be made by the eligible teacher. However, special school
district No. 1, Minneapolis, 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 8-1/2 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. If the
school district agrees to payments under this paragraph, the
eligible teacher must make the employee payments required under
this paragraph before July 1, 1998. If that employee payment is
made, the school district payment under this paragraph must be
remitted to the executive secretary of the Minneapolis teachers
retirement fund association within 60 days of receipt by the
executive secretary of the employee payments specified under
this paragraph.
Subd. 4. [SERVICE CREDIT GRANT.] Service credit for the
purchase period must be granted by the Minneapolis teachers
retirement fund association to the account of the eligible
teacher upon receipt of the purchase payment amount specified in
subdivision 3.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective on the day following final
enactment.
ARTICLE 6
VOLUNTEER FIREFIGHTER SERVICE
PENSION MAXIMUMS
Section 1. Minnesota Statutes 1996, section 424A.02,
subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or
before August 1 of each year as part of the certification of the
financial requirements and minimum municipal obligation made
pursuant to section 69.772, subdivision 4, or 69.773,
subdivision 5, the secretary or some other official of the
relief association designated in the bylaws of each relief
association shall calculate and certify to the governing body of
the applicable qualified municipality the average amount of
available financing per active covered firefighter for the most
recent three-year period. The amount of available financing
shall include any amounts of fire state aid received or
receivable by the relief association, any amounts of municipal
contributions to the relief association raised from levies on
real estate or from other available revenue sources exclusive of
fire state aid, and one-tenth of the amount of assets in excess
of the accrued liabilities of the relief association calculated
pursuant to sections 69.772, subdivision 2; 69.773, subdivisions
2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief
association has authority to provide for in its bylaws for
payment to a member retiring after the calculation date when the
minimum age and service requirements specified in subdivision 1
are met must be determined using the table in paragraph (c) or
(d), whichever applies.
(c) For a relief association where the governing bylaws
provide for a monthly service pension to a retiring member, the
maximum monthly service pension amount per month for each year
of service credited that may be provided for in the bylaws is
the maximum service pension figure corresponding to the average
amount of available financing per active covered firefighter:
Minimum Average Amount of Maximum Service Pension
Available Financing per Amount Payable per Month
Firefighter for Each Year of Service
$... $ .25
42 .50
84 1.00
126 1.50
168 2.00
209 2.50
252 3.00
294 3.50
335 4.00
378 4.50
420 5.00
503 6.00
587 7.00
672 8.00
755 9.00
839 10.00
923 11.00
1007 12.00
1090 13.00
1175 14.00
1259 15.00
1342 16.00
1427 17.00
1510 18.00
1594 19.00
1677 20.00
1762 21.00
1845 22.00
1888 22.50
1929 23.00
2014 24.00
2098 25.00
2183 26.00
2267 27.00
2351 28.00
2436 29.00
2520 30.00
any amount more than 2520 30.00
2604 31.00
2689 32.00
2773 33.00
2857 34.00
2942 35.00
3026 36.00
3110 37.00
3963 38.00
4047 39.00
4137 40.00
any amount more than 4137 40.00
(d) For a relief association in which the governing bylaws
provide for a lump sum service pension to a retiring member, the
maximum lump sum service pension amount for each year of service
credited that may be provided for in the bylaws is the maximum
service pension figure corresponding to the average amount of
available financing per active covered firefighter for the
applicable specified period:
Minimum Average Amount Maximum Lump Sum Service
of Available Financing Pension Amount Payable
per Firefighter for Each Year of Service
(1) for service pensions payable before January 1, 1994
$.. $10
11 20
16 30
23 40
27 50
32 60
43 80
54 100
65 120
77 140
86 160
97 180
108 200
131 240
151 280
173 320
194 360
216 400
239 440
259 480
281 520
302 560
324 600
347 640
367 680
389 720
410 760
432 800
486 900
540 1000
594 1100
648 1200
702 1300
756 1400
810 1500
864 1600
918 1700
972 1800
1026 1900
1080 2000
1134 2100
1188 2200
1242 2300
1296 2400
1350 2500
1404 2600
1458 2700
1512 2800
1566 2900
1620 3000
1672 3100
1726 3200
1753 3250
1780 3300
1820 3375
any amount more than 1820 3375
(2) in addition to the service pension maximum under clause
(1), for service pensions payable after December 31, 1993, and
before January 1, 1995
1834 3400
1888 3500
any amount more than 1888 3500
(3) in addition to the service pension maximum under
clauses (1) and (2), for service pensions payable after December
31, 1994, and before January 1, 1996
1942 3600
1996 3700
2023 3750
any amount more than 2023 3750
(4) in addition to the service pension maximum under
clauses (1) to (3), for service pensions payable after December
31, 1995
2050 3800
2104 3900
2158 4000
any amount more than 2158 4000
2212 4100
2265 4200
2319 4300
2373 4400
2427 4500
2481 4600
2535 4700
2589 4800
2643 4900
2697 5000
2751 5100
2805 5200
2859 5300
2913 5400
2967 5500
any amount more than 2967 5500
(e) For a relief association in which the governing bylaws
provide for a monthly benefit service pension as an alternative
form of service pension payment to a lump sum service pension,
the maximum service pension amount for each pension payment type
must be determined using the applicable table contained in this
subdivision.
(f) If a relief association establishes a service pension
in compliance with the applicable maximum contained in paragraph
(c) or (d) and the minimum average amount of available financing
per active covered firefighter is subsequently reduced because
of a reduction in fire state aid or because of an increase in
the number of active firefighters, the relief association may
continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount
until the minimum average amount of available financing per
firefighter under the table in paragraph (c) or (d), whichever
applies, permits.
(g) No relief association is authorized to provide a
service pension in an amount greater than $30 $40 per month per
year of service credit or in an amount greater
than $3,375 $5,500 lump sum per year of service credit before
January 1, 1994, $3,500 lump sum per year of service credit
before January 1, 1995, $3,750 lump sum per year of service
credit before January 1, 1996, and $4,000 lump sum per year of
service credit after December 31, 1995, even if the minimum
average amount of available financing per firefighter for a
relief association providing a monthly benefit service pension
is greater than $2,240 $4,137, or, for a relief association
providing a lump sum service pension, is greater than $1,753
before January 1, 1994, $1,888 before January 1, 1995, $2,023
before January 1, 1996, or $2,158 after December 31, 1995 $2,967.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective for pensions payable after December
31, 1997.
ARTICLE 7
RETIREMENT COVERAGE MODIFICATIONS FOR TRANSFERRED
UNIVERSITY OF MINNESOTA ACADEMIC HEALTH CENTER EMPLOYEES
Section 1. Minnesota Statutes 1996, section 352F.02,
subdivision 3, is amended to read:
Subd. 3. [EFFECTIVE DATE.] "Effective date" is the date
terminated hospital employees transfer employment to Fairview
under a definitive integration agreement between the University
of Minnesota and Fairview or the date terminated academic health
center employees are transferred to the University of Minnesota
Physicians or University Affiliated Family Physicians, whichever
is applicable.
Sec. 2. Minnesota Statutes 1996, section 352F.02,
subdivision 6, is amended to read:
Subd. 6. [TERMINATED HOSPITAL EMPLOYEE.] "Terminated
hospital employee" means a person who:
(1) was employed on the day before the effective date by
the University of Minnesota at the University of Minnesota
hospital and clinics or the academic health center and was paid
on a biweekly payroll;
(2) terminated employment with the University of Minnesota
on the day before the effective date or in the case of employees
of the academic health center, terminated employment with the
University of Minnesota after the effective date but immediately
transferred employment to the University of Minnesota Physicians
or University Affiliated Family Physicians; and
(3) was a participant in the general state employees
retirement plan of the Minnesota state retirement system at the
time of termination of employment with the University of
Minnesota.
Sec. 3. Minnesota Statutes 1996, section 352F.02, is
amended by adding a subdivision to read:
Subd. 9. [ACADEMIC HEALTH CENTER.] "Academic health center"
means the seven professional schools in health care related
disciplines at the University of Minnesota.
Sec. 4. Minnesota Statutes 1996, section 352F.02, is
amended by adding a subdivision to read:
Subd. 10. [UNIVERSITY OF MINNESOTA
PHYSICIANS.] "University of Minnesota Physicians" means the
multi-specialty single group medical practice group in which
medical school faculty will practice medicine beginning in 1997.
Sec. 5. Minnesota Statutes 1996, section 352F.02, is
amended by adding a subdivision to read:
Subd. 11. [UNIVERSITY AFFILIATED FAMILY PHYSICIANS.]
"University affiliated family physicians" means the private
practice group of the department of family practice in the
university's medical school.
Sec. 6. Minnesota Statutes 1996, section 352F.03, is
amended to read:
352F.03 [VESTING RULE FOR CERTAIN EMPLOYEES.]
Notwithstanding any provision of chapter 352 to the
contrary, a terminated hospital employee or academic health
center employee is eligible to receive a retirement annuity
under Minnesota Statutes 1994, section 352.115, without regard
to the requirement for three years of allowable service.
Sec. 7. Minnesota Statutes 1996, section 352F.04, is
amended to read:
352F.04 [AUGMENTATION INTEREST RATE FOR TERMINATED
UNIVERSITY HOSPITAL EMPLOYEES.]
The deferred annuity of a terminated hospital employee is
subject to augmentation in accordance with Minnesota Statutes
1994, section 352.72, subdivision 2, except that the rate of
interest for this purpose is 5.5 percent compounded annually
until January 1 following the year in which such person attains
age 55. From that date to the effective date of retirement, the
rate is 7.5 percent. These increased augmentation rates are no
longer applicable for any time after the terminated
hospital employee or academic health center employee becomes
covered again by a retirement fund enumerated in section 356.30,
subdivision 3. These increased deferred annuity augmentation
rates do not apply to a terminated transferred hospital employee
or academic health center employee who begins receipt of a
retirement annuity while employed by Fairview.
Sec. 8. Minnesota Statutes 1996, section 352F.05, is
amended to read:
352F.05 [AUTHORIZATION FOR ADDITIONAL ALLOWABLE SERVICE FOR
CERTAIN EARLY RETIREMENT PURPOSES.]
For purpose of determining eligibility for early retirement
benefits provided under Minnesota Statutes 1994, section
352.116, subdivision 1, paragraphs (a) and (b), and
notwithstanding any provision of chapter 352 to the contrary,
the years of allowable service for a terminated hospital
employee who transfers to employment at Fairview, University of
Minnesota Physicians, or University Affiliated Family Physicians
on the effective date and does not apply for a refund of
contributions under Minnesota Statutes 1994, section 352.22,
subdivision 2, or any similar provision in future Minnesota
Statutes, includes service with Fairview, University of
Minnesota Physicians, or University Affiliated Family Physicians
following the effective date. Fairview, University of Minnesota
Physicians, or University Affiliated Family Physicians shall
provide any reports that the executive director of the Minnesota
state retirement system may reasonably request to permit
calculation of benefits.
To be eligible for early retirement benefits under this
section, the individual must separate from service with
Fairview, University of Minnesota Physicians, or University
Affiliated Family Physicians. The terminated eligible
individual, or an individual authorized to act on behalf of that
individual, may apply for an annuity following application
procedures under section 352.115, subdivision 7.
Sec. 9. Minnesota Statutes 1996, section 352F.06, is
amended to read:
352F.06 [APPLICATION OF REEMPLOYED ANNUITANT EARNINGS
LIMITATIONS.]
The reemployed annuitant earnings limitations of section
352.115, subdivision 10, apply to any service by a terminated
hospital employee as an employee of Fairview, University of
Minnesota Physicians, or University Affiliated Family Physicians.
Sec. 10. Minnesota Statutes 1996, section 352F.07, is
amended to read:
352F.07 [EFFECT ON REFUND.]
Notwithstanding any provision of chapter 352 to the
contrary, terminated hospital employees may receive a refund of
employee accumulated contributions plus interest at the rate of
six percent per year compounded annually in accordance with
Minnesota Statutes 1994, section 352.22, subdivision 2, at any
time after the transfer of employment to Fairview, University of
Minnesota Physicians, or University Affiliated Family
Physicians. If a terminated hospital employee has received a
refund from a pension plan enumerated in section 356.30,
subdivision 3, the person may not repay that refund unless the
person again becomes a member of one of those enumerated plans
and complies with section 356.30, subdivision 2.
Sec. 11. Minnesota Statutes 1996, section 352F.08, is
amended to read:
352F.08 [COUNSELING SERVICES.]
The University of Minnesota hospital and clinics or the
academic health center, whichever is applicable and the
Minnesota state retirement system shall provide terminated
hospital employees with counseling on their benefits available
under the general state employees retirement plan of the
Minnesota state retirement system.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective the day following final
enactment.
ARTICLE 8
GENERAL STATEWIDE EMPLOYEE PENSION
PLAN MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 136F.45, is
amended by adding a subdivision to read:
Subd. 3. [TAX-SHELTERED ANNUITY ADMINISTRATIVE
EXPENSES.] (a) The reasonable and necessary administrative
expenses of the tax-sheltered annuity program, to a maximum of
$100,000 annually, must be paid by the financial institutions
authorized by the board of trustees of the Minnesota state
colleges and universities system to provide tax-sheltered
annuity investment options.
(b) Annually, the board of trustees shall establish a
budget for the tax-sheltered annuity program administrative
expenses. The total budgeted administrative expense must be
allocated among the applicable financial institutions by the
board of trustees.
Sec. 2. Minnesota Statutes 1996, section 136F.45, is
amended by adding a subdivision to read:
Subd. 4. [PERIODIC REVIEW.] If the board so chooses, it
may solicit bids or proposals for options under subdivision 1.
The board may retain consulting services to assist it in
soliciting and evaluating bids or proposals and in the periodic
review of companies offering options under subdivision 1. The
board may annually establish a budget for its costs in the
soliciting, evaluating, and periodic review processes. The
board may charge a proportional share of all costs related to
the periodic review to each company currently under contract and
may charge a proportional share of all costs related to
soliciting and evaluating bids or proposals to each company
selected by the board. Contracts must provide that all options
in subdivision 1 must: (1) be presented in an unbiased manner,
(2) be reported on a periodic basis to all employees
participating in the tax-sheltered annuity program, and (3) not
be the subject of unreasonable solicitation of state employees
to participate in the program. The contract may not permit 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 bid solicitation and evaluation process for the
options provided under subdivision 1 must be paid by the
underwriting companies ultimately selected by the board.
Sec. 3. Minnesota Statutes 1996, 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) any employees on authorized leave of absence from the
transit operating division of the former metropolitan transit
commission 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, metropolitan sports facilities
commission, metropolitan mosquito control commission, or
metropolitan radio board unless excluded or covered by another
public pension fund or plan under section 473.415, subdivision
3;
(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;
(16) seasonal help in the classified service employed by
the department of revenue; and
(17) a person who renders teaching or other service for the
Minnesota state colleges and universities system and who also
renders service on a part-time basis for an employer with
employees covered by the general state employees retirement plan
of the Minnesota state retirement system, for all service with
the Minnesota state colleges and universities system, if the
person's nonteaching service comprises at least 50 percent of
the combined total salary received by the person as determined
by the chancellor of the Minnesota state colleges and
universities system or if the person is certified for general
state employees retirement plan coverage by the chancellor of
the Minnesota state colleges and universities system.
(b) Employees specified in paragraph (a), clause (15), are
included employees under paragraph (a) providing that if
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 1996, 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 children, families, and learning 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 $5,000 or less per year, or, if they are
legally prohibited from serving more than 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, and
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 1986, as amended
through December 31, 1992;
(24) examination monitors employed by departments,
agencies, commissions, and boards to conduct examinations
required by law;
(25) persons appointed to serve as members of fact-finding
commissions or adjustment panels, arbitrators, or labor referees
under chapter 179;
(26) 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;
(27) full-time students employed by the Minnesota
historical society intermittently during part of the year and
full-time during the summer months;
(28) 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;
(29) persons employed in positions designated by the
department of employee relations as student workers;
(30) members of trades employed by the successor to the
metropolitan waste control commission with trade union pension
plan coverage under a collective bargaining agreement first
employed after June 1, 1977;
(31) 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;
(32) off-duty peace officers while employed by the
metropolitan council;
(33) persons who are employed as full-time police officers
by the metropolitan council and as police officers are members
of the public employees police and fire fund;
(34) 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;
(35) 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; and
(36) persons who are employed by the board of trustees of
the Minnesota state colleges and universities and who elect to
remain members of the public employees retirement association or
the Minneapolis employees retirement fund, whichever applies,
under section 136C.75.
Sec. 5. Minnesota Statutes 1996, section 354B.21,
subdivision 3, is amended to read:
Subd 3. [DEFAULT COVERAGE.] (a) If an eligible person
fails to elect coverage by the plan under subdivision 2 or if
the person fails to make a timely election, the following
retirement coverage applies:
(1) for employees of the board who are employed in faculty
positions in the technical colleges, in the state universities
or in the community colleges, the retirement coverage is by the
plan established by this chapter;
(2) for employees of the board who are employed in faculty
positions in the technical colleges, the retirement coverage is
by the plan established by this chapter unless on June 30, 1997,
the employee was a member of the teachers retirement association
established under chapter 354 and then the retirement coverage
is by the teachers retirement association, or, unless the
employee was a member of a first class city teacher retirement
fund established under chapter 354A on June 30, 1995, and then
the retirement coverage is by the Duluth teachers retirement
fund association if the person was a member of that plan on June
30, 1995, or the Minneapolis teachers retirement fund
association if the person was a member of that plan on June 30,
1995, or the St. Paul teachers retirement fund association if
the person was a member of that plan on June 30, 1995; and
(3) for employees of the board who are employed in eligible
unclassified administrative positions, the retirement coverage
is by the plan established by this chapter.
(b) If an employee fails to correctly certify prior
membership in the teachers retirement association to the
Minnesota state colleges and universities system, the system
shall not pay interest on employee contributions, employer
contributions, and additional employer contributions to the
teachers retirement association under section 354.52,
subdivision 4.
Sec. 6. Minnesota Statutes 1996, section 354C.11, is
amended to read:
354C.11 [COVERAGE.]
Personnel employed by the board of trustees of the
Minnesota state colleges and universities who are in the
unclassified service of the state, and who have completed at
least two years of employment by the board or a predecessor
board with a full-time contract are participants in the
supplemental retirement plan, effective on the next following
July 1, if the person is employed in an eligible unclassified
administrative position as defined in section 354B.20,
subdivision 6, or is employed in an employment classification
included in one of the following collective bargaining units
under section 179A.10, subdivision 2:
(1) the state university instructional unit;
(2) the community college instructional unit;
(3) the technical college instructional unit; and
(4) the state university administrative unit.
Once a person qualifies for participation in the
supplemental plan, all subsequent service by the person as an
unclassified employee of the state university board, the state
board for community colleges, the higher education board, or the
technical colleges is covered by the supplemental plan.
Sec. 7. [PURCHASE OF SERVICE CREDIT AUTHORIZATION.]
Subdivision 1. [ELIGIBLE EMPLOYEE.] (a) An eligible
employee described in paragraph (b) is eligible to purchase
service credit in the Minnesota state retirement system general
plan as specified in subdivision 2.
(b) An eligible employee is a person who:
(1) is employed in the classified service by the department
of revenue as seasonal help, newly authorized to receive
prospective service credit under section 3; and
(2) was employed in the classified service by the
department of revenue as seasonal help in each of the last three
fiscal years.
Subd. 2. [RETIREMENT COVERAGE.] An eligible employee under
subdivision 1, paragraph (b), is entitled to purchase service
credit in the Minnesota state retirement system general plan for
the period of service prior to the effective date of section 3
as seasonal help in the classified service by the department of
revenue. Any period for which the individual has received
service credit or is eligible to receive service credit in any
other Minnesota public pension plan, other than a volunteer fire
plan, is not eligible for purchase.
Subd. 3. [AMOUNT.] (a) To receive service credit under
subdivision 2, the Minnesota state retirement system must
receive an amount equal to the actuarial present value, on the
date of payment, as calculated by the actuary retained by the
legislative commission on pensions and retirement, of the amount
of the additional retirement annuity obtained by the acquisition
of the additional service credit in this section. Calculation
of this amount must be made using the preretirement interest
rate applicable to the Minnesota state retirement system general
plan specified in Minnesota Statutes, section 356.215,
subdivision 4d, and the mortality table adopted for the pension
plan. The calculation must assume continuous future service in
the association 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 Minnesota Statutes, section 356.30, are met with
the additional service credit purchased. The calculation must
assume that the individual accrues future service credit each
year based on a three year average using the most recent three
year period prior to the effective date of section 3 for service
provided compared to full-time service. The salary used in the
calculation must be the eligible person's actual current hourly
salary. The calculation must assume a future salary history
that includes annual salary increases at the applicable salary
increase rate for the plan specified in Minnesota Statutes,
section 356.215, subdivision 4d.
(b) Payment must be made in one lump sum before July 1,
1998, or before retirement, whichever is earlier.
(c) Payment of the amount calculated under this subdivision
must be made by the eligible employee. However, the Minnesota
department of revenue 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 periods of
prior service applied to the actual salary rates in effect
during the periods of prior service, plus interest at the rate
of 8-1/2 percent a year compounded annually from the date on
which the contributions would have been made if retirement
coverage were authorized at the time, to the date on which the
payment is made. If the department agrees to payments under
this paragraph, the eligible employee must make the employee
payments required under this paragraph before July 1, 1998. If
that employee payment is made, the department payment under this
paragraph must be remitted to the executive director of the
Minnesota state retirement system within 60 days of receipt by
the executive director of the employee payments specified under
this paragraph.
Subd. 4. [SERVICE CREDIT GRANT.] Service credit for the
purchase period must be granted by the Minnesota state
retirement system to the account of the eligible employee upon
receipt of the purchase payment amount specified in subdivision
3.
Sec. 8. [STUDY.]
The state board of investment, in consultation with the
commissioner of commerce, shall study and make recommendations
to the legislature on the most desirable method for evaluating
insurance companies for purposes of Minnesota Statutes, section
356.24, subdivision 1, and on the most desirable method for the
use of Internal Revenue Code, section 403(b), annuities and the
most effective delivery mechanism to employees. The board shall
report to the legislative commission on pensions and retirement
by February 1, 1998.
Sec. 9. [REPEALER.]
Laws 1995, chapter 262, article 1, sections 8, 9, 10, 11,
and 12, are repealed.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective on July 1, 1997.
ARTICLE 9
PENSION MODIFICATIONS WITH
A LOCAL APPLICATION
Section 1. Minnesota Statutes 1996, section 423A.02,
subdivision 2, is amended to read:
Subd. 2. [CONTINUED ELIGIBILITY.] A municipality that has
qualified for amortization state aid under subdivision 1 on
December 31, 1984, and has an additional municipal contribution
payable under section 353A.09, subdivision 5, paragraph (b), as
of the most recent December 31, continues upon application to be
entitled to receive amortization state aid under subdivision 1
and supplementary amortization state aid under subdivision 1a,
after the local police or salaried firefighters' relief
association has been consolidated into the public employees
police and fire fund. If a municipality loses entitlement for
amortization state aid and supplementary amortization state aid
in any year because of not having an additional municipal
contribution, the municipality is not entitled to the aid
amounts in any subsequent year. If the actuarial assumptions
specified in section 356.215 are changed in 1997, and the change
results in a municipality having an additional municipal
contribution, and the municipality had previously lost
entitlement for amortization aid and supplementary amortization
due to not having an additional municipal contribution, then the
municipality is again entitled to receive amortization aid and
supplementary amortization aid in the same amount as it
previously received.
Sec. 2. Minnesota Statutes 1996, section 423B.06,
subdivision 1, is amended to read:
Subdivision 1. [SOURCES.] The fund is derived from the
following sources:
(1) gifts provided to the fund;
(2) rewards received by active members of the Minneapolis
police department;
(3) money coming into the hands of active members of the
Minneapolis police department in their official capacity and
remaining unclaimed for six months;
(4) proceeds from sales of property coming into the hands
of active members of the Minneapolis police department in their
official capacity and remaining unclaimed for six months, upon
sale by the chief of police of the city;
(5) an amount equal to the minimum percentage specified in
section 69.77, subdivision 2a, of the salary of a first grade
patrol officer deducted from the monthly salary of each active
member;
(6) all money derived from taxation as provided by sections
69.77, subdivisions 2b, 2c, 2d, 2e, and 2f; and 423A.01,
subdivision 2;
(7) all money received from the state amortization aid
programs under section 423A.02, to fund the unfunded actuarial
accrued liability of the association;
(8) all money received from the state under chapter 69, as
state police aid;
(9) all money provided by the state for the association in
addition to clauses (7) and (8);
(10) all money derived from taxation by the municipality
for the support of the association and the payment of pensions;
and
(11) money from the investment of, earnings on, and
interest on the assets of the fund.
Sec. 3. Minnesota Statutes 1996, section 423B.06,
subdivision 1a, is amended to read:
Subd. 1a. [SALES OF UNCLAIMED PROPERTY.] The chief of
police of the city shall sell property coming into the hands of
active members of the Minneapolis police department in their
official capacity and remaining unclaimed for six months.
Sec. 4. [TEACHER RETIREMENT DATE.]
Notwithstanding Minnesota Statutes, section 354.44,
subdivision 4, teachers terminating active teaching service at
the high school in independent school district No. 701, Hibbing,
during June, 1997, shall have May 30, 1997, as their date of
retirement for the purpose of receiving retirement benefits from
the teachers retirement association.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final
enactment.
ARTICLE 10
INVESTMENT REPORTING MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 69.051,
subdivision 1, is amended to read:
Subdivision 1. [FINANCIAL REPORT AND AUDIT.] The board of
each salaried firefighters' and relief association, police
relief association, and of each volunteer firefighters' relief
association as defined in section 424A.001, subdivision 4, with
assets of at least $200,000 or liabilities of at least $200,000,
according to the most recent actuarial valuation or financial
report if no valuation is required, shall:
(a) (1) Prepare a financial report covering the special and
general funds of the relief association for the preceding fiscal
year on a form prescribed by the state auditor. The financial
report shall contain financial statements and disclosures which
present the true financial condition of the relief association
and the results of relief association operations in conformity
with generally accepted accounting principles and in compliance
with the regulatory, financing and funding provisions of this
chapter and any other applicable laws. The financial report
shall be countersigned by the municipal clerk or clerk-treasurer
of the municipality in which the relief association is located
if the relief association is a firefighters' relief association
which is directly associated with a municipal fire department or
is a police relief association, or countersigned by the
secretary of the independent nonprofit firefighting corporation
and by the municipal clerk or clerk-treasurer of the largest
municipality in population which contracts with the independent
nonprofit firefighting corporation if the relief association is
a subsidiary of an independent nonprofit firefighting
corporation;
(b) (2) File the financial report in its office for public
inspection and present it to the city council after the close of
the fiscal year. One copy of the financial report shall be
furnished to the state auditor after the close of the fiscal
year; and
(c) (3) Submit to the state auditor audited financial
statements which have been attested to by a certified public
accountant, public accountant, or the state auditor within 180
days after the close of the fiscal year, except that the state
auditor may upon request of a city and a showing of inability to
conform, extend the deadline. The state auditor may accept this
report in lieu of the report required in clause (b) (2).
Sec. 2. Minnesota Statutes 1996, section 69.051,
subdivision 1a, is amended to read:
Subd. 1a. [FINANCIAL STATEMENT.] (a) The board of each
volunteer firefighters' relief association and each independent
nonprofit firefighting corporation, as defined in section
424A.001, subdivision 4, with assets of less than $200,000 and
liabilities less than $200,000, according to the most recent
financial report, shall:
(a) prepare a detailed statement of the financial affairs
for the preceding fiscal year of the relief association's
special and general funds in the style and form prescribed by
the state auditor, for the preceding fiscal year showing all
money received, with the sources, and respective amounts
thereof. The detailed statement must show the sources and
amounts of all money received; all disbursements for which
orders have been drawn upon the treasurer; all, accounts
payable; all and accounts receivable; the amount of money
remaining in the treasury; total assets including a listing of
all investments; the accrued liabilities; and all items
necessary to show accurately the revenues and expenditures and
financial position of the relief association;.
(b) The detailed financial statement required under
paragraph (a) shall must be certified by an independent public
accountant or auditor or by the auditor or accountant who
regularly examines or audits the financial transactions of the
municipality. In addition to certifying the financial condition
of the special and general funds of the relief association, the
accountant or auditor conducting the examination shall give an
opinion as to the condition of the special and general funds of
the relief association, and shall comment upon any exceptions to
the report. The independent accountant or auditor shall have at
least five years of public accounting, auditing, or similar
experience, and shall not be an active, inactive, or retired
member of the relief association or the fire or police
department;.
(c) The detailed statement required under paragraph (a)
shall must be countersigned by the municipal clerk or
clerk-treasurer of the municipality, or, where applicable, by
the secretary of the independent nonprofit firefighting
corporation and by the municipal clerk or clerk-treasurer of the
largest municipality in population which contracts with the
independent nonprofit firefighting corporation if the relief
association is a subsidiary of an independent nonprofit
firefighting corporation;.
(d) The volunteer firefighters' relief association board
must file the detailed statement required under paragraph (a) in
the relief association office for public inspection and present
it to the city council within 45 days after the close of the
fiscal year;, and must
(e) submit within 90 days after the close of the fiscal
year a copy of the detailed statement to the state auditor
within 90 days of the close of the fiscal year.
Sec. 3. Minnesota Statutes 1996, section 69.051,
subdivision 1b, is amended to read:
Subd. 1b. [QUALIFICATION.] The state auditor may, upon a
demonstration by a relief association of hardship or inability
to conform, extend the deadline for reports under subdivisions 1
or 1a, but not beyond November 30th following the due date. If
the reports are not received by November 30th, the municipality
or relief association will forfeit its current year state aid,
and until the state auditor receives the required information,
the relief or municipality will be ineligible to receive any
future state aid. A municipality or police or firefighters'
relief association shall not qualify initially to receive, or be
entitled subsequently to retain, state aid pursuant to this
chapter if the financial reporting requirement or the applicable
requirements of this chapter or any other statute or special law
have not been complied with or are not fulfilled.
Sec. 4. Minnesota Statutes 1996, section 356.219, is
amended to read:
356.219 [DISCLOSURE OF ADDITIONAL PUBLIC PENSION PLAN
INVESTMENT INFORMATION.]
Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated
in subdivision 4, the state board of investment on behalf of the
public pension funds and programs for which it is the investment
authority and any Minnesota public pension plan not wholly fully
invested through the state board of investment, including a
local police or firefighters' relief association governed by
sections 69.77 or 69.771 to 69.775, shall report the information
specified in subdivision 2 3 to the state auditor. The state
auditor may prescribe a form or forms for the purposes of the
reporting requirements contained in this section.
(b) A local police or firefighters' relief association
governed by section 69.77 or sections 69.771 to 69.775 is fully
invested during a given calendar year for purposes of this
section if all assets of the applicable pension plan beyond
sufficient cash equivalent investments to cover six months
expected expenses are invested under section 11A.17. The board
of any fully invested public pension plan remains responsible
for submitting investment policy statements and subsequent
revisions as required by subdivision 3, paragraph (a).
(c) For purposes of this section, the state board of
investment is considered to be the investment authority for any
Minnesota public pension fund required to be invested by the
state board of investment under section 11A.23, or for any
Minnesota public pension fund authorized to invest in the
supplemental investment fund under section 11A.17 and which is
fully invested.
Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of
this section, "asset class" means any of the following asset
groupings as authorized in applicable law, by-laws, or articles
of incorporation:
(1) cash and any cash equivalent investments with
maturities of one year or less when issued;
(2) debt securities with maturities greater than one year
when issued, including but not limited to mortgage participation
certificates and pools, asset backed securities, guaranteed
investment contracts, and authorized government and corporate
obligations of corporations organized under laws of the United
States or any state, or the Dominion of Canada or its provinces;
(3) stocks or convertible issues of any corporation
organized under laws of the United States or any state, or the
Dominion of Canada or its provinces, or any corporation listed
on the New York Stock Exchange or the American Stock Exchange;
(4) international stocks or convertible issues;
(5) international debt securities; and
(6) real estate and venture capital.
(b) If the pension plan is investing under section 69.77,
subdivision 2g, section 69.775, or other applicable law, in
open-end investment companies registered under the federal
Investment Company Act of 1940, or in the Minnesota supplemental
investment fund under section 11A.17, this investment must be
included under an asset class indicated in paragraph (a),
clauses (1) through (6), as appropriate. If the investment
vehicle includes underlying securities from more than one asset
class as indicated by paragraph (a), clauses (1) through (6),
the investment may be treated as a separate asset class.
Subd. 2 3. [CONTENT AND TIMING OF REPORTS.] (a) The
following information shall be included in the report required
by subdivision 1:
(1) the market value of all investments at the close of the
reporting period;
(2) regular payroll-based contributions to the fund;
(3) other contributions and revenue paid into the fund,
including, but not limited to, state or local non-payroll-based
contributions, repaid refunds, and buybacks;
(4) total benefits paid to members;
(5) fees paid for investment management services;
(6) salaries and other administrative expenses paid; and
(7) total return on investment.
The report required by subdivision 1 must also include a
written statement of the investment policy in effect on June 30,
1988, and 1997, if that statement has not been previously
submitted. Following that date, subsequent reports must include
any investment policy changes made subsequently and shall
include the effective date of each policy change rather than a
complete statement of investment policy, unless the state
auditor requests submission of a complete current statement.
The report must also include the information required by the
following paragraphs, as applicable. The information required
under this subdivision must be reported separately for each
investment account or investment portfolio included in the
pension fund.
(b) For public pension plans other than volunteer
firefighters' relief associations governed by sections 69.77 or
69.771 to 69.775, the information specified in paragraph (a)
must be provided separately for each quarter for the fiscal
years of the pension fund ending during calendar years 1989
through 1991 and on a monthly basis thereafter. For volunteer
firefighters' relief associations governed by sections 69.77 or
69.771 to 69.775, the information specified in paragraph (a)
must be provided separately each quarter.
(c) Firefighters' relief associations that have assets with
a market value of less than $300,000 must submit a written
statement of their current investment policy on or before
October 1, 1996, must report any subsequent investment policy
changes, including the effective date of the change, within 90
days of the change, must begin collecting the required
information under paragraph (a), clauses (1) to (7), on January
1, 1997, and must submit the required information to the state
auditor on or before October 1, 1998, and subsequently within
six months of the end of each fiscal year. Other associations
must submit the required information through fiscal year 1993 to
the state auditor on or before October 1, 1994, and subsequently
within six months of the end of each fiscal year.
(b) If a public pension plan has a total market value of
$10 million or more as of the beginning of the calendar year,
the report required by subdivision 1 must include the market
value of the total portfolio and the market value of each
investment account, investment portfolio, or asset class
included in the pension fund as of the beginning of the calendar
year and for each month, and the amount and date of each
injection and withdrawal to the total portfolio and to each
investment account, investment portfolio, or asset class. If a
public pension plan once files a report under this paragraph, it
must continue reporting under this paragraph for any year in
which the public pension plan is not fully invested as specified
in subdivision 1, paragraph (b), even if asset values drop below
$10 million in market value in a subsequent year.
(c) For public pension plans to which paragraph (b)
applies, the report required by subdivision 1 must also include
a calculation of the total time-weighted rate of return
available from index-matching investments assuming the asset
class performance targets and target asset mix indicated in the
written statement of investment policy. The provided
information must include a description of indices used in the
analyses and an explanation of why those indices are
appropriate. This paragraph does not apply to any fully
invested plan, as defined by subdivision 1, paragraph (b).
Reporting by the state board of investment under this paragraph
is limited to information on the Minnesota public pension plans
required to be invested by the state board of investment under
section 11A.23.
(d) If a public pension plan has a total market value of
less than $10 million as of the beginning of the calendar year
and was never required to file under paragraph (b), the report
required by subdivision 1 must include the amount and date of
each total portfolio injection and withdrawal. In addition, the
report must include the market value of the total portfolio as
of the beginning of the calendar year and for each quarter.
(e) Any public pension plan reporting under paragraph (b)
or (d) may include computed time-weighted rates of return with
the report, in addition to all other required information, as
applicable. If returns are supplied, the individual who
computed the returns must certify that the returns are net of
all costs and fees, including investment management fees, and
that the procedures used to compute the returns are consistent
with bank administration institute studies of investment
performance measurement and association of investment management
and research presentation standards.
(f) For public pension plans reporting under paragraph (d),
the public pension plan must retain information specifying the
date and amount of each injection and withdrawal to each
investment account and investment portfolio. The public pension
plan must also retain the market value of each investment
account and investment portfolio at the beginning of the
calendar year and for each quarter. Information that is
required to be collected and retained for any given year or
years under this paragraph must be submitted to the office of
the state auditor if the office of the state auditor requests in
writing that the information be submitted by a public pension
plan or plans, or be submitted by the state board of investment
for any plan or plans for which the state board of investment is
the investment authority under this section. If the state
auditor requests information under this subdivision, and the
public plan fails to comply, the pension plan will be subject to
penalties under subdivision 5, unless penalties are waived by
the state auditor under that subdivision.
Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu
of requirements in subdivision 3, the applicable administration
for the individual retirement account plans under chapters 354B
and 354D and for the university of Minnesota faculty retirement
plan shall submit computed time-weighted rates of return to the
office of the state auditor. These time-weighted rates of
return must cover the most recent complete calendar year, and
must be computed for each investment option available to plan
members. To the extent feasible, the returns must be computed
net of all costs, fees, and charges, so that the computed return
reflects the net time-weighted return available to the
investor. If this is not practical, the existence of any
remaining cost, fee, or charge which could further lower the net
return must be disclosed. The procedures used to compute the
returns must be consistent with bank administration institute
studies of investment performance measurement and association of
investment management and research presentation standards, or,
if applicable, securities exchange commission requirements. The
individual who computes the returns must certify that the
supplied returns comply with this subdivision. The applicable
plan administrator must also submit, with the return
information, the total amounts invested by the plan members, in
aggregate, in each investment option as of the last day of the
calendar year.
Subd. 3 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply
with the reporting requirements of this section shall result in
a withholding of all state aid or state appropriation to which
the pension plan may otherwise be directly or indirectly
entitled until the pension plan has complied with the reporting
requirements. The state auditor shall instruct the
commissioners of revenue and finance to withhold state aid or
state appropriation from any pension plan that fails to comply
with the reporting requirements contained in this section, until
the pension plan has complied with the reporting
requirements. The state auditor may waive the withholding of
state aid or state appropriations if the state auditor
determines in writing that compliance would create an excessive
hardship.
The state auditor shall agree to waive the withholding of
all state aid required by this subdivision for a volunteer
firefighters' relief association governed by sections 69.77 or
69.771 to 69.775 if:
(1) the relief association certifies to the state auditor
that the financial records necessary to comply with this
reporting requirement for the fiscal years of the pension fund
ending during calendar years 1991 to 1993 no longer exist; or
(2) the state auditor determines that reconstructing
historical financial data for the fiscal years of the pension
fund ending during calendar years 1991 to 1993 would create an
excessive hardship for the relief association.
Subd. 4 6. [INVESTMENT DISCLOSURE REPORT.] Using the
information provided under subdivision 2, (a) The state auditor
shall prepare an annual report to the legislature on
the components of investment performance resulting from stages
in the investment decision making process of the various public
pension plans subject to this section. The content of the
report is specified in paragraphs (b) to (e).
(b) For each public pension plan reporting under
subdivision 3, paragraph (b), the state auditor shall compute
and report total portfolio and asset class time-weighted rates
of return, net of all costs and fees.
(c) For each public pension plan reporting under
subdivision 3, paragraph (d), the state auditor shall compute
and report total portfolio time-weighted rates of return, net of
all costs and fees. If the state auditor has requested data for
a plan under subdivision 3, paragraph (f), the state auditor may
also compute and report asset class time-weighted rates of
return, net of all costs and fees.
(d) The report by the state auditor must include the
information submitted by the pension plans under subdivision 3,
paragraph (c), or a synopsis of that information.
(e) The report by the state auditor may also include a
presentation of multi-year performance, information collected
under subdivision 4, and any other information or analysis
deemed appropriate by the state auditor. The state auditor may
contract with a qualified consultant or consulting firm to
perform the analysis and prepare the report required under this
subdivision.
Subd. 5 7. [EXPENSE OF REPORT.] All expenses incurred
relating to the investment disclosure report by the state
auditor described in subdivision 4 6 must be borne by the office
of the state auditor and may not be charged back to the entities
described in subdivision subdivisions 1 or 4.
Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter
relief associations, police relief associations, and volunteer
firefighter relief associations, the information required under
this section must be submitted by the due date for reports
required under section 69.051, subdivision 1 or 1a, as
applicable. If a relief association satisfies the definition of
a fully invested plan under subdivision 1, paragraph (b), for
the calendar year covered by the report required under section
69.051, subdivision 1 or 1a, as applicable, the chief
administrative officer of the covered pension plan shall certify
compliance on a form prescribed by the state auditor. The state
auditor shall transmit annually to the state board of investment
a list or lists of covered pension plans which submitted
certifications, in order to facilitate reporting by the state
board of investment under paragraph (c) of this subdivision.
(b) For the Minneapolis teachers retirement fund
association, the St. Paul teachers retirement fund association,
the Duluth teachers retirement fund association, the Minneapolis
employees retirement fund, the University of Minnesota faculty
supplemental retirement plan, and the applicable administrators
for the University of Minnesota faculty retirement plan and the
individual retirement account plans under chapter 354B and 354D,
the information required under this section must be submitted to
the state auditor by June 1 of each year.
(c) The state board of investment, on behalf of pension
funds specified in subdivision 1, paragraph (c), must report
information required under this section by September 1 of each
year.
Sec. 5. Minnesota Statutes 1996, section 424A.02,
subdivision 10, is amended to read:
Subd. 10. [LOCAL APPROVAL OF BYLAW AMENDMENTS; FILING
REQUIREMENTS.] (a) Each relief association to which this section
applies shall file a revised copy of its governing bylaws with
the commissioner of commerce state auditor upon the adoption of
any amendment to its governing bylaws by the relief association
or upon the approval of any amendment to its governing bylaws
granted by the governing body of each municipality served by the
fire department to which the relief association is directly
associated. Failure of the relief association to file a copy of
the bylaws or any bylaw amendments with the commissioner of
commerce state auditor shall disqualify the municipality from
the distribution of any future fire state aid until this filing
requirement has been completed.
(b) If the special fund of the relief association does not
have a surplus over full funding pursuant to section 69.772,
subdivision 3, clause (2), subclause (e), or 69.773, subdivision
4, and if the municipality is required to provide financial
support to the special fund of the relief association pursuant
to section 69.772 or 69.773, no bylaw amendment which would
affect the amount of, the manner of payment of, or the
conditions for qualification for service pensions or ancillary
benefits or disbursements other than administrative expenses
authorized pursuant to section 69.80 payable from the special
fund of the relief association shall be effective until it has
been ratified by the governing body or bodies of the appropriate
municipalities. If the municipality is not required to provide
financial support to the special fund pursuant to this section,
the relief association may adopt or amend without municipal
ratification its articles of incorporation or bylaws which
increase or otherwise affect the service pensions or ancillary
benefits payable from the special fund so long as the changes do
not cause the amount of the resulting increase in the accrued
liability of the special fund to exceed 90 percent of the amount
of the prior surplus over full funding and the changes do not
result in the financial requirements of the special fund
exceeding the expected amount of the future fire state aid to be
received by the relief association.
(c) If the relief association pays only a lump sum pension,
the financial requirements are to be determined by the board of
trustees following the preparation of an estimate of the
expected increase in the accrued liability and annual accruing
liability of the relief association attributable to the change.
If the relief association pays a monthly benefit service
pension, the financial requirements are to be determined by the
board of trustees following either an updated actuarial
valuation including the proposed change or an estimate of the
expected actuarial impact of the proposed change prepared by the
actuary of the relief association. If a relief association
adopts or amends its articles of incorporation or bylaws without
municipal ratification pursuant to this subdivision, and,
subsequent to the amendment or adoption, the financial
requirements of the special fund pursuant to this section are
such so as to require financial support from the municipality,
the provision which was implemented without municipal
ratification shall no longer be effective without municipal
ratification, and any service pensions or ancillary benefits
payable after that date shall be paid only in accordance with
the articles of incorporation or bylaws as amended or adopted
with municipal ratification.
Sec. 6. [REVIEW OF LARGE PLAN REPORTING REQUIREMENTS.]
Prior to January 1, 1999, the state auditor shall report to
the legislative commission on pensions and retirement with any
recommendations for enhancing the consistency and utility of
information provided by or on behalf of a public pension plan
under Minnesota Statutes, section 356.219, subdivision 3,
paragraph (c).
Sec. 7. [REPEALER.]
Minnesota Statutes 1996, section 356.218, is repealed.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective January 1, 1998, except that
no penalty for non-compliance with section 4 may be assessed on
account of any failure to comply with reporting requirements of
that section prior to January 1, 1999.
ARTICLE 11
CORRECTIONAL RETIREMENT PLAN
MODIFICATIONS
Section 1. Laws 1996, chapter 408, article 8, section 21,
is amended to read:
Sec. 21. [TEMPORARY PROVISION; ELECTION TO RETAIN
RETIREMENT COVERAGE.]
(a) An employee in a position specified as qualifying under
sections 12, 14, and 15, or an auto mechanic lead, an
electrician, an electrician master of record, a groundskeeper
intermediate, or a plumber master in charge at the Minnesota
correctional facility-Red Wing, may elect to retain coverage
under the general employees retirement plan of the Minnesota
state retirement system or the teachers retirement association,
or may elect to have coverage transferred to and to contribute
to the correctional employees retirement plan. An employee
electing to participate in the correctional employees retirement
plan shall begin making contributions to the correctional plan
beginning the first full pay period after January 1, 1997, or
the first full pay period following filing of their election to
transfer coverage to the correctional employees retirement plan,
whichever is later. The election to retain coverage or to
transfer coverage must be made in writing by the person on a
form prescribed by the executive director of the Minnesota state
retirement system and must be filed with the executive director
no later than June 30 December 31, 1997.
(b) An employee failing to make an election by June 15,
1997, must be notified by certified mail by the executive
director of the Minnesota state retirement system or of the
teachers retirement association, whichever applies, of the
deadline to make a choice. A person who does not submit an
election form must continue coverage in the general employees
retirement plan or the teachers retirement association,
whichever applies, and forfeits all rights to transfer
retirement coverage to the correctional employees retirement
plan.
(c) The election to retain coverage in the general employee
retirement plan or the teachers retirement association or the
election to transfer retirement coverage to the correctional
employees retirement plan is irrevocable once it is filed with
the executive director.
Sec. 2. Laws 1996, chapter 408, article 8, section 22,
subdivision 1, is amended to read:
Subdivision 1. [ELECTION OF PRIOR STATE SERVICE COVERAGE.]
(a) An employee who has future retirement coverage transferred
to the correctional employees retirement plan under sections 11,
12, 14, and 15, and 16, or an auto mechanic lead, an
electrician, an electrician master of record, a groundskeeper
intermediate, or a plumber master in charge at the Minnesota
correctional facility-Red Wing, and who does not elect to retain
general state employee retirement plan or teachers retirement
association coverage is entitled to elect to obtain prior
service credit for eligible state service performed on or after
July 1, 1975, and before the first day of the first full pay
period beginning after June 30 December 31, 1997, with the
department of corrections or with the department of human
services at the Minnesota security hospital or the Minnesota
sexual psychopathic personality treatment center. All prior
service credit must be purchased.
(b) Eligible state service with the department of
corrections or with the department of human services is any
prior period of continuous service on or after July 1, 1975,
performed as an employee of the department of corrections or of
the department of human services that would have been eligible
for the correctional employees retirement plan coverage under
sections 11, 12, 14, and 15, and 16, or an auto mechanic lead,
an electrician, an electrician master of record, a groundskeeper
intermediate, or a plumber master in charge at the Minnesota
correctional facility-Red Wing, if that prior service had been
performed after the first day of the first full pay period
beginning after December 31, 1996, rather than before that
date. Service is continuous if there has been no period of
discontinuation of eligible state service for a period greater
than 180 calendar days.
(c) The department of corrections or the department of
human services, whichever applies, shall certify eligible state
service to the executive director of the Minnesota state
retirement system.
(d) A covered correctional plan employee employed on
January 1, 1997, who has past service in a job classification
covered under section 11, 12, 14, or 15, or 16, or an auto
mechanic lead, an electrician, an electrician master of record,
a groundskeeper intermediate, or a plumber master in charge at
the Minnesota correctional facility-Red Wing, on January 1,
1997, is entitled to purchase the past service if the applicable
department certifies that the employee met the eligibility
requirements for coverage. The employee must make the
additional employee contributions under section 17. Payments
for past service must be completed by June 30, 1999.
Sec. 3. Laws 1996, chapter 408, article 8, section 24, is
amended to read:
Sec. 24. [EARLY RETIREMENT INCENTIVE.]
This section applies to an employee who has future
retirement coverage transferred to the correctional employee
retirement plan under sections 11, 12, 14, and 15, and 16, and
who is at least 55 years old on the effective date of sections
11, 12, 14, and 15, and 16. This section also applies to an
auto mechanic lead, an electrician, an electrician master of
record, a groundskeeper intermediate, or a plumber master in
charge at the Minnesota correctional facility-Red Wing who has
transferred to the correctional employee retirement plan under
this act. That employee may participate in a health insurance
early retirement incentive available under the terms of a
collective bargaining agreement in effect on the day before the
effective date of sections 11, 12, 14, and 15, and 16,
notwithstanding any provision of the collective bargaining
agreement that limits participation to persons who select the
option during the payroll period in which their 55th birthday
occurs. A person selecting the health insurance early
retirement incentive under this section must retire by the later
of December 31, 1997 June 30, 1998, or within the pay period
following the time at which the person has at least three years
of covered correctional service, including any purchased service
credit. An employee meeting this criteria who wishes to extend
the person's employment must do so under Minnesota Statutes,
section 43A.34, subdivision 3.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective on the day following final
enactment.
ARTICLE 12
MISCELLANEOUS PROVISIONS
Section 1. [EXEMPTION; METROPOLITAN STATE UNIVERSITY.]
(a) Minnesota Statutes, section 352.115, subdivision 10,
does not apply to a person who:
(1) was born June 22, 1939;
(2) retires from the faculty of Metropolitan State
University with at least ten years of combined service credit in
a system under the jurisdiction of the board of trustees of the
Minnesota state colleges and universities;
(3) was employed on a full-time basis immediately preceding
retirement;
(4) begins drawing an annuity from the Minnesota state
retirement system; and
(5) returns to work on not less than a one-third time basis
and not more than a two-thirds time basis at Metropolitan State
University under an agreement in which the person may not earn a
salary of more than $35,000 in a calendar year from employment
after retirement at Metropolitan State University.
(b) Initial participation, the amount of time worked, and
the duration of participation under this section must be
mutually agreed upon by the employer and the employee. The
employer may require up to a one-year notice of intent to
participate in the program as a condition of participation under
this section. The employer shall determine the time of year the
employee shall work.
(c) Minnesota Statutes, section 136F.48, applies to a
person described in paragraph (a), even though the person draws
an annuity from the Minnesota state retirement system instead of
a teachers retirement association.
(d) Notwithstanding any law to the contrary, a person
eligible under paragraphs (a) and (b) may not earn further
service credit in the Minnesota state retirement system or the
teachers retirement association and is not eligible to
participate in the individual retirement account plan or the
supplemental retirement plan established in chapter 354B as a
result of service under this section. No employer or employee
contribution to any of these plans may be made on behalf of such
a person.
Sec. 2. [ACCEPTANCE OF BENEFICIARY DESIGNATION CHANGE IN
CERTAIN INSTANCES.]
(a) Notwithstanding any provision of Minnesota Statutes
1996, chapter 354, to the contrary, the teachers retirement
association may consider as validly filed a beneficiary
designation change form under Minnesota Statutes 1996, section
354.10, subdivision 4, and a joint specification form under
Minnesota Statutes 1996, section 354.46, subdivision 5, which
was postmarked on January 8, 1997, and received by the teachers
retirement association on January 10, 1997, on behalf of a
teacher who was born on February 28, 1947, and who died on
December 22, 1996.
(b) The designated beneficiary of the teacher specified in
paragraph (a) is entitled to receive the applicable monthly
survivor benefit retroactive to January 1, 1997.
Sec. 3. [PRIOR SERVICE CREDIT PURCHASE FOR CERTAIN PUBLIC
EMPLOYEES.]
(a) A person described in paragraph (b) is entitled to
purchase the period of allowable service credit from the public
employees retirement association described in paragraph (c) if
the purchase payment specified in paragraph (d) is made to the
public employees retirement association.
(b) An eligible person is a person who:
(1) was born on August 10, 1939;
(2) was initially employed on a full-time basis by the
parks and recreation division of the city of St. Paul on
February 12, 1964;
(3) was initially covered by the public employees
retirement association on November 1, 1964; and
(4) left public service on September 16, 1996.
(c) The period of purchasable allowable service credit is
the period beginning on February 12, 1964, and ending on October
31, 1964.
(d) To purchase credit for prior eligible service under
paragraph (c), there must be paid to the public employees
retirement association an amount equal to the present value of
the amount of the additional disability benefit obtained by
purchase of the additional service credit. The calculation of
this amount must be made by the executive director of the public
employees retirement association using the applicable
preretirement interest rate specified in Minnesota Statutes,
section 356.215, subdivision 4d, and the mortality table adopted
for the retirement association. The person making the purchase
must establish in the records of the association proof of the
service for which the purchase of prior service is requested.
The manner of the proof of service must be in accordance with
procedures prescribed by the executive director of the
retirement association. Payment of the amount calculated under
this subdivision is the obligation of the eligible person and
must be made prior to July 1, 1998, in a lump sum. However, the
former employer of the eligible individual may, at its
discretion, pay all or any portion of the payment amount that
exceeds an amount equal to the employee contribution rate or
rates in effect during the period or periods of prior service,
plus interest at the rate of 8.5 percent per year compounded
annually from the date on which the contributions would
otherwise have been made to the date on which the payment is
made. If the employer agrees to payments under this paragraph,
the person must make the employee payments required under this
paragraph prior to July 1, 1998. If that employee payment is
made, the employing unit payment under this paragraph must be
remitted to the executive director of the retirement association
within 60 days of receipt by the executive director of the
employee payments specified under this paragraph.
(e) Service credit for the purchase period or periods must
be granted to the account of the eligible person upon receipt of
the purchase payment amount specified in paragraph (d) and the
disability benefit of the person must be recalculated in light
of the additional service credit.
Sec. 4. [EFFECTIVE DATE.]
Sections 1, 2, and 3 are effective on the day following
final enactment.
Presented to the governor May 30, 1997
Signed by the governor June 3, 1997, 1:45 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes