Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1998, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 390-H.F.No. 2970
An act relating to retirement; various retirement
plans; adjusting pension coverage for certain
privatized public hospital employees; providing for
voluntary deduction of health insurance premiums from
certain annuities; providing for increased survivor
benefits relating to certain public employees murdered
in the line of duty; authorizing certain service
credit purchases; specifying prior service credit
purchase payment amount determination procedures
increasing salaries of various judges; modifying other
judicial salaries; modifying the judges retirement
plan member and employer contribution rates;
authorizing the transfer of certain prior retirement
contributions from the legislators retirement plan and
from the elective state officers retirement plan;
creating a contribution transfer account in the
general fund of the state; appropriating money;
reformulating the Columbia Heights volunteer
firefighters relief association plan as a defined
contribution plan under the general volunteer fire
law; restructuring the Columbia Heights volunteer
firefighter relief association board; modifying
various higher education retirement plan provisions;
modifying administrative expense provisions for
various public pension plans; expanding the teacher
retirement plans part-time teaching positions eligible
to participate in the qualified full-time service
credit for part-time teaching service program; making
certain Minneapolis fire department relief association
survivor benefit options retroactive; providing
increased disability benefit coverage for certain
local government correctional facility employees;
increasing local government correctional employee and
employer contribution rates; providing increased
survivor benefits to certain Minneapolis employee
retirement fund survivors; authorizing certain
Hennepin county regional park employees to change
retirement plan membership; modifying benefit increase
provision for Eveleth police and firefighters;
modifying the length of the actuarial services
contract of the legislative commission on pensions and
retirement; modifying the scope of quadrennial
projection valuations; providing special disability
coverage for local correctional employees; requiring
report on tax sheltered annuity for higher education
employees; amending Minnesota Statutes 1996, sections
3A.13; 11A.17, subdivision 2; 136F.45, by adding
subdivisions; 136F.48; 352.96, subdivision 4; 352D.09,
subdivision 7; 352D.12; 353.27, subdivision 3; 353.33,
subdivision 3a; 353D.05, subdivision 3; 354.445;
354.66, subdivisions 2 and 3; 354A.094, subdivisions 2
and 3; 354B.23, by adding a subdivision; 354C.12, by
adding a subdivision; 383B.52; 422A.23, subdivision 2;
and 490.123, subdivisions 1a and 1b; Minnesota
Statutes 1997 Supplement, sections 3.85, subdivision
11; 15A.083, subdivisions 5, 6a, and 7; 353.27,
subdivision 2; 354B.25, subdivisions 1a and 5;
354C.12, subdivision 4; and 356.215, subdivision 2;
Laws 1977, chapter 61, section 6, as amended; Laws
1995, chapter 262, article 10, section 1; Laws 1997,
Second Special Session chapter 3, section 16;
proposing coding for new law in Minnesota Statutes,
chapter 356; repealing Minnesota Statutes 1996,
sections 11A.17, subdivisions 10a and 14; and 352D.09,
subdivision 8; Minnesota Statutes 1997 Supplement,
section 136F.45, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PUBLIC MEDICAL FACILITY PRIVATIZATIONS
Section 1. [LUVERNE COMMUNITY HOSPITAL; PENSION COVERAGE
FOR TRANSFERRED EMPLOYEES.]
Subdivision 1. [AUTHORIZATION.] This section applies if
the Luverne Community Hospital is sold, leased, or transferred
to a private entity, nonprofit corporation, or public
corporation. Notwithstanding Minnesota Statutes, sections
356.24 and 356.25, 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 applicable to nonpublic safety employees
under Minnesota Statutes, chapter 353, as amended, in effect on
the date of the sale, lease, or transfer.
Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES;
ELIGIBILITY.] (a) An eligible individual is an individual who:
(1) is an employee of the Luverne Community Hospital
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 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 Internal Revenue
Code, as amended, or to another qualified plan.
Sec. 2. [ARNOLD MEMORIAL HOSPITAL, ADRIAN, MINNESOTA;
PENSION COVERAGE FOR TRANSFERRED EMPLOYEES.]
Subdivision 1. [AUTHORIZATION.] This section applies if
the Arnold Memorial Hospital in Adrian is sold, leased, or
transferred to a private entity, nonprofit corporation, or
public corporation. Notwithstanding Minnesota Statutes,
sections 356.24 and 356.25, 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 applicable to nonpublic safety employees
under Minnesota Statutes, chapter 353, as amended, in effect on
the date of the sale, lease, or transfer.
Subd. 2. [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES;
ELIGIBILITY.] (a) An eligible individual is an individual who:
(1) is an employee of the Arnold Memorial Hospital in
Adrian 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 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 Internal Revenue
Code, as amended, or to another qualified plan.
Sec. 3. [EFFECTIVE DATE.]
(a) Section 1 is effective on the day following approval by
the Luverne city council and compliance with Minnesota Statutes,
section 645.021.
(b) Section 2 is effective on the day following approval by
the Adrian city council and compliance with Minnesota Statutes,
section 645.021.
ARTICLE 2
MISCELLANEOUS GENERAL EMPLOYEE PENSION CHANGES
Section 1. Minnesota Statutes 1996, section 3A.13, is
amended to read:
3A.13 [EXEMPTION FROM PROCESS AND TAXATION; HEALTH PREMIUM
DEDUCTION.]
The provisions of section 352.15 shall apply to the
legislators retirement plan, chapter 3A. The executive director
of the Minnesota state retirement system must, at the request of
a retired legislator who is enrolled in a health insurance plan
covering state employees, deduct the person's health insurance
premiums from the person's annuity and transfer the amount of
the premium to a health insurance carrier covering state
employees.
Sec. 2. Minnesota Statutes 1996, section 11A.17,
subdivision 2, is amended to read:
Subd. 2. [ASSETS.] The assets of the supplemental
investment fund shall consist of the money certified and
transmitted to the state board from the participating public
retirement plans and funds and shall or from the board of the
Minnesota state colleges and universities under section
136F.45. The assets must be used to purchase investment shares
in the investment accounts specified by the plan or fund.
Sec. 3. Minnesota Statutes 1996, section 136F.45, is
amended by adding a subdivision to read:
Subd. 1a. [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may
limit the number of vendors under subdivision 1.
(b) In addition to any other tax-sheltered annuity program
investment options, the board may offer as an investment option
the Minnesota supplemental investment fund administered by the
state board of investment under section 11A.17.
(c) For the tax-sheltered annuity program vendor contracts
to be executed for the period beginning July 1, 2000, the board
shall actively solicit participation of and shall include as
vendors lower expense and "no-load" mutual funds or equivalent
investment products as those terms are defined by the federal
securities and exchange commission. To the extent possible, in
addition to a range of insurance annuity contract providers and
other mutual fund provider arrangements, the board must assure
that no less than five insurance annuity providers and no less
than one nor more than three lower expense and "no-load" mutual
funds or equivalent investment products will be made available
for direct-access by employee participants. To the extent that
offering a lower expense "no-load" product increases the total
necessary and reasonable expenses of the program and if the
board is unable to negotiate a rebate of fees from the mutual
fund or equivalent investment product providers, the board may
charge the participants utilizing the lower expense "no-load"
mutual fund products a fee to cover those expenses. The
participant fee may not exceed one percent of the participant's
annual contributions or $20 per participant per year, whichever
is greater. Any excess fee revenue generated under this
subdivision must be reimbursed to participant accounts in the
manner provided in subdivision 3a.
Sec. 4. Minnesota Statutes 1996, section 136F.45, is
amended by adding a subdivision to read:
Subd. 3a. [SHARING OF FEES.] (a) For purposes of this
subdivision, a gross fee amount is defined as the fees,
commissions, and other charges which an annuity investment
provider or vendor would charge a typical consumer of those
services for identical or similar products. A net fee amount is
an amount below the gross fee amount reflecting a negotiated
reduction below gross fees.
(b) To offset the board's necessary and reasonable expenses
incurred under subdivisions 1 and 2, the Minnesota state
colleges and universities system is authorized to negotiate with
an annuity investment provider or vendor to establish a net fee
amount.
(c) Under the negotiated arrangements, the Minnesota state
colleges and universities system is authorized to either make
arrangements to recapture the difference between gross and net
fee amounts through a rebate from the annuity investment
provider or vendor, or deduct those amounts prior to
transmitting the contributions or premiums.
(d) The revenues collected or retained under these
negotiated arrangements must be used to offset the board's
necessary and reasonable expenses incurred under this section.
Any excess above the necessary and reasonable expenses must be
allocated annually to the accounts of the participants.
Sec. 5. Minnesota Statutes 1996, section 136F.48, is
amended to read:
136F.48 [EMPLOYER-PAID HEALTH INSURANCE.]
(a) This section applies to a person who:
(1) retires from the state university system, the technical
college system, or the community college system, or from a
successor system employing state university, technical college,
or community college faculty, 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;
(2) was employed on a full-time basis immediately preceding
retirement as a state university, technical college, or
community college faculty member or as an unclassified
administrator in one of those systems;
(3) begins drawing an annuity from the teachers retirement
association or from a first class city teacher plan; and
(4) returns to work on not less than a one-third time basis
and not more than a two-thirds time basis in the system from
which the person retired 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 in the system from which the
person retired.
(b) Initial participation, the amount of time worked, and
the duration of participation under this section must be
mutually agreed upon by the employer president of the
institution where the person returns to work and the employee.
The employer president may require up to one-year notice of
intent to participate in the program as a condition of
participation under this section. The employer president shall
determine the time of year the employee shall work. The
employer or the president may not require a person to waive any
rights under a collective bargaining agreement as a condition of
participation under this section.
(c) For a person eligible under paragraphs (a) and (b), the
employing board shall make the same employer contribution for
hospital, medical, and dental benefits as would be made if the
person were employed full time.
(d) For work under paragraph (a), a person must receive a
percentage of the person's salary at the time of retirement that
is equal to the percentage of time the person works compared to
full-time work.
(e) If a collective bargaining agreement covering a person
provides for an early retirement incentive that is based on age,
the incentive provided to the person must be based on the
person's age at the time employment under this section ends.
However, the salary used to determine the amount of the
incentive must be the salary that would have been paid if the
person had been employed full time for the year immediately
preceding the time employment under this section ends.
(f) A person who returns to work under this section is a
member of the appropriate bargaining unit and is covered by the
appropriate collective bargaining contract. Except as provided
in this section, the person's coverage is subject to any part of
the contract limiting rights of part-time employees.
Sec. 6. Minnesota Statutes 1996, section 352.96,
subdivision 4, is amended to read:
Subd. 4. [EXECUTIVE DIRECTOR TO ESTABLISH RULES.] The
executive director of the system with the advice and consent of
the board of directors shall establish rules and procedures to
carry out this section including allocation of administrative
costs against the assets accumulated under this section. Funds
to pay these costs are appropriated from the fund or account in
which the assets accumulated under this section are placed of
the plan to participants. Fees cannot be charged on
contributions and investment returns attributable to
contributions made to the Minnesota supplemental investment
funds before July 1, 1992. Annual total fees charged for plan
administration for the Minnesota supplemental investment funds
cannot exceed 40/100 of one percent of the contributions and
investment returns attributable to contributions made on or
after July 1, 1992. The rules established by the executive
director must conform to federal and state tax laws,
regulations, and rulings, and are not subject to the
administrative procedure act. Except for the marketing rules,
rules relating to the options provided under subdivision 2,
clauses (2) and (3), must be approved by the state board of
investment.
Sec. 7. Minnesota Statutes 1996, section 352D.09,
subdivision 7, is amended to read:
Subd. 7. Up to one-tenth of one percent of salary shall be
deducted from the employee contributions and up to one-tenth of
one percent of salary from the employer contributions authorized
by section 352D.04, subdivision 2, The board of directors shall
establish a budget and charge participants a fee to pay the
administrative expenses of the unclassified program. Fees
cannot be charged on contributions and investment returns
attributable to contributions made before July 1, 1992. Annual
total fees charged for plan administration cannot exceed 10/100
of one percent of the contributions and investment returns
attributable to contributions made on or after July 1, 1992.
Sec. 8. Minnesota Statutes 1996, section 353D.05,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATIVE EXPENSES.] The executive director
of the association with the advice and consent of the board
shall annually set an amount to recover the costs of the
association in administering the public employees defined
contribution plan that are not met by the amount recovered under
section 11A.17.
Sec. 9. Minnesota Statutes 1996, section 354.445, is
amended to read:
354.445 [NO ANNUITY REDUCTION.]
(a) The annuity reduction provisions of section 354.44,
subdivision 5, do not apply to a person who:
(1) retires from the state university system, technical
college system, or the community college system, or from a
successor system employing state university, technical college,
or community college faculty, 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;
(2) was employed on a full-time basis immediately preceding
retirement as a state university, technical college, or
community college faculty member or as an unclassified
administrator in one of these systems;
(3) begins drawing an annuity from the teachers retirement
association; and
(4) returns to work on not less than a one-third time basis
and not more than a two-thirds time basis in the system from
which the person retired 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 in the system from which the
person retired.
(b) Initial participation, the amount of time worked, and
the duration of participation under this section must be
mutually agreed upon by the employer president of the
institution where the person returns to work and the employee.
The employer president may require up to one-year notice of
intent to participate in the program as a condition of
participation under this section. The employer president shall
determine the time of year the employee shall work. The
employer or the president may not require a person to waive any
rights under a collective bargaining agreement as a condition of
participation under this section.
(c) Notwithstanding any law to the contrary, a person
eligible under paragraphs (a) and (b) may not earn further
service credit in 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.
(d) For a person eligible under paragraphs (a) and (b) who
earns more than $35,000 in a calendar year from employment after
retirement in the system from which the person retired, the
annuity reduction provisions of section 354.44, subdivision 5,
apply only to income over $35,000.
(e) A person who returns to work under this section is a
member of the appropriate bargaining unit and is covered by the
appropriate collective bargaining contract. Except as provided
in this section, the person's coverage is subject to any part of
the contract limiting rights of part-time employees.
Sec. 10. Minnesota Statutes 1996, section 354B.23, is
amended by adding a subdivision to read:
Subd. 5a. [EXCESS CONTRIBUTIONS.] (a) When contributions
to the plan exceed limits imposed by federal law or regulation
and it is necessary to return contributions to comply with the
federal limits, excess contributions must be returned to the
employee and to the employer in the same proportions as the
contributions were made.
(b) When an employer contribution required under section
354B.24 due to a sabbatical leave is made after completion of
the leave or an employer contribution is made due to omitted
deductions under subdivision 5, and these employer contributions
cause or would cause total contributions to the plan to exceed
limits imposed by federal law or regulation, the employer must
make that portion of the contribution that would exceed the
federal limit during the next calendar year.
Sec. 11. Minnesota Statutes 1997 Supplement, section
354B.25, subdivision 1a, is amended 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 committee shall adopt recommendations by majority
vote of those members voting on each issue. 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. 12. Minnesota Statutes 1997 Supplement, 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 in an amount such that
annual total fees charged for plan administration cannot exceed
40/100 of one percent of the assets of the Minnesota
supplemental investment funds; 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. 13. Minnesota Statutes 1996, section 354C.12, is
amended by adding a subdivision to read:
Subd. 1a. [EXCESS CONTRIBUTIONS.] (a) When contributions
to the plan exceed limits imposed by federal law or regulation
and it is necessary to return contributions to comply with the
federal limits, one-half of the excess contributions must be
returned to the employee and half to the employer.
(b) When an employer contribution is made due to omitted
deductions under subdivision 2, and these employer contributions
cause or would cause total contributions to the plan to exceed
limits imposed by federal law or regulation, the employer must
make that portion of the contribution that would exceed the
federal limit during the next calendar year.
Sec. 14. Minnesota Statutes 1997 Supplement, 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 authorized by the
Minnesota state colleges and universities in an amount such that
annual total fees charged for plan administration cannot exceed
40/100 of one percent of the assets of the Minnesota
supplemental investment funds; 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. 15. Minnesota Statutes 1996, section 383B.52, is
amended to read:
383B.52 [ADMINISTRATION COSTS.]
The board of county commissioners of Hennepin county is
hereby authorized to appropriate money for the administration of
the supplementary benefit program created by sections 383B.46 to
383B.52. The board of county commissioners of Hennepin county
may charge participants a fee to recover the administrative
expenses of the supplementary benefit program. Annual total
fees charged to administer the supplementary benefit program may
not exceed 40/100 of one percent of the assets of the program.
Sec. 16. Minnesota Statutes 1996, section 422A.23,
subdivision 2, is amended to read:
Subd. 2. [SHORT-SERVICE SURVIVOR BENEFIT.] Upon the death
of a contributing (a) If an active member after having been in
the city service not less than dies prior to termination of
service with at least 18 months but before the effective date of
retirement, the board shall in lieu of the settlement
hereinbefore provided pay to the surviving spouse and/or
children of the member under the age of 18, or under the age of
22 if a full-time student at an accredited school, college or
university, and single, the following monthly benefit:
(a) Surviving spouse $325 per month, except for benefits
beginning after July 1, 1983, which shall be 30 percent of
member's average salary in effect over the last six months of
allowable service preceding the month in which the death
occurred.
(b) Each surviving child $150 per month, except for
benefits beginning after July 1, 1983, which shall be ten
percent of the member's average salary in effect over the last
six months of allowable service preceding the month in which the
death occurred but less than 20 years of service credit, the
surviving spouse or surviving child or children is eligible to
receive the survivor benefit specified in paragraph (b) or (c),
as applicable. Payments for the Payment of a benefit of for
any surviving child under the age of 18 years shall be made to
the surviving parent, or if there be none, to the legal guardian
of such the surviving child. The maximum monthly benefit shall
not exceed a total of $750.
(c) Effective for payments made after June 30, 1991,
surviving spouse and surviving child benefits under paragraphs
(a) and (b) beginning on or before July 1, 1983, are increased
to $500 per month and $225 per month, respectively. The maximum
monthly payment under paragraph (b) is increased to $900. The
increased cost resulting from the benefit increases in this
paragraph must be allocated to each employing unit listed in
section 422A.101, subdivisions 1a, 2, and 2a, on the basis of
the additional accrued liability resulting from increased
benefits paid to the survivors of employees from that unit. For
purposes of this subdivision, a surviving child is an unmarried
child of the deceased member under the age of 18, or under the
age of 22 if a full-time student at an accredited school,
college, or university.
(b) If the surviving spouse or surviving child benefit
commenced before July 1, 1983, the surviving spouse benefit is
$750 per month and the surviving child benefit is $225 per
month, beginning with the first monthly payment payable after
the effective date of this section. The sum of surviving spouse
and surviving child benefits payable under this paragraph shall
not exceed $900 per month. The increased cost resulting from
the benefit increases under this paragraph must be allocated to
each employing unit listed in section 422A.101, subdivisions 1a,
2, and 2a, on the basis of the additional accrued liability
resulting from increased benefits paid to the survivors of
employees from that unit.
(c) If the surviving spouse or surviving child benefit
commences after June 30, 1983, the surviving spouse benefit is
30 percent of the member's average salary in effect over the
last six months of allowable service preceding the month in
which death occurs. The surviving child benefit is ten percent
of the member's average salary in effect over the last six
months of allowable service preceding the month in which death
occurs. The sum of surviving spouse and surviving child
benefits payable under this paragraph shall not exceed 50
percent of the member's average salary in effect over the last
six months of allowable service.
(d) Any surviving child benefit or surviving spouse benefit
computed under paragraph (c) and in effect for the month
immediately prior to the effective date of this section is
increased by 15 percent as of the first payment on or after the
effective date of this section.
(e) Surviving child benefits under this subdivision
terminate when the child no longer meets the definition of
surviving child.
Sec. 17. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SPECIAL
SURVIVING SPOUSE BENEFIT ELIGIBILITY.]
(a) Notwithstanding any provision of law to the contrary,
the surviving spouse of a deceased qualified public employee who
died as a result of an alleged homicide in the line of duty
within one month of eligibility for normal retirement is
entitled to receive the second portion of a 100 percent joint
and survivor optional annuity under Minnesota Statutes, section
353.31, subdivision 1b, calculated as if the deceased qualified
public employee had qualified for the "rule of 90" early normal
retirement annuity on the date of death.
(b) A deceased qualified public employee is a person who:
(1) was born on August 18, 1941;
(2) became a member of the public employees retirement
association on July 7, 1964;
(3) was a member of the basic program of the public
employees retirement association;
(4) was employed as a building inspector by the city of St.
Paul;
(5) died during the course of employment duties on December
24, 1997; and
(6) would have been eligible to retire under the "rule of
90" early normal retirement provision on or before February 1,
1998.
(c) The benefit under paragraph (a) is payable in lieu of
any other survivor benefit from the public employee retirement
association. The benefit under paragraph (a) accrues on January
1, 1998, and the initial payment of the benefit must include any
applicable retroactive payment amounts. The benefit under
paragraph (a) must be elected by the surviving spouse on a form
prescribed by the executive director of the public employee
retirement association.
Sec. 18. [REIMBURSEMENT OF ACTUARIAL COST BY CITY OF ST.
PAUL.]
On the effective date of this section, the city of St. Paul
shall pay to the public employees retirement association $36,698
and whatever portion of a remaining $36,697 is not appropriated
from the general fund to the public employees retirement
association for this purpose in order to offset the increased
actuarial accrued liability related to the survivor benefit
increase provided in section 15.
Sec. 19. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE
TERMINATION.]
Subdivision 1. [ELIGIBILITY.] (a) An eligible member
specified in paragraph (b) is authorized to apply for a
retirement annuity, provided necessary age and service
requirements are met, under Minnesota Statutes, section 353.29
or 353.30, as applicable, as further specified under subdivision
2.
(b) An eligible member is an individual who:
(1) is an active member of the public employees retirement
association coordinated plan;
(2) contributes to that plan based on employment by the
suburban Hennepin county regional park district and as an
elected member of the Minneapolis park and recreation board; and
(3) was born on February 25, 1936.
Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding
Minnesota Statutes, section 353.01, subdivision 2a, clause (3),
and continuation of elected service, an eligible individual
under subdivision 1, paragraph (b), is deemed to have terminated
membership under Minnesota Statutes, section 353.01, subdivision
11b, following termination of the suburban Hennepin county
regional park district employment and meeting applicable length
of separation requirements.
(b) If the requirements of paragraph (a) are satisfied, the
eligible individual may apply for a retirement annuity under
Minnesota Statutes, section 353.29 or 353.30, whichever
applies. In computing the annuity, the public employees
retirement association must exclude salary due to appointed and
elected Minneapolis park and recreation board service.
Subd. 3. [TREATMENT OF MINNEAPOLIS PARK AND RECREATION
BOARD CONTRIBUTION TO THE PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION.] (a) Upon termination of the suburban Hennepin
county regional park district employment, all employee
contributions to the public employees retirement association
coordinated plan by an eligible individual in subdivision 1,
paragraph (b), due to Minneapolis park and recreation board
appointed and elected service, and all corresponding employer
contributions, terminate.
(b) Following termination of contributions under paragraph
(a), an eligible member under subdivision 1, paragraph (b), must
elect, within one year of termination of contributions under
paragraph (a) or termination of elective service, whichever is
earlier, a refund under Minnesota Statutes, section 353.34,
subdivision 2, or coverage by the public employees defined
contribution plan under Minnesota Statutes, chapter 353D, as
further specified in paragraph (c).
(c) If public employee defined contribution plan coverage
is elected under this paragraph, contributions to that plan
commence as of the first day of the pay period following this
election. Notwithstanding Minnesota Statutes, section 353D.12,
accumulated employee contributions made by an eligible member as
specified in subdivision 1, paragraph (b), and corresponding
employer contributions, due to the Minneapolis park and
recreation board appointed and elected service, must be
transferred with six percent annual interest to an account for
an eligible member in the public employees defined contribution
plan.
(d) If no election is made by an eligible member by the
required date in paragraph (b), the individual is assumed to
have elected the refund indicated in paragraph (b).
(e) Upon an election under paragraph (b), or a mandatory
refund under paragraph (d), all rights in the public employees
retirement association coordinated plan due to elected and
appointed service are forfeited and may not be reestablished.
Sec. 20. [MNSCU STUDY.]
(a) The board of the Minnesota state colleges and
universities, in consultation with representatives of the
respective collective bargaining units, shall study the issue of
converting the tax sheltered annuity program under Minnesota
Statutes, section 136F.45, to an unrestricted investment vendor
program, recognizing that college and university employees
should have maximum flexibility to exercise their own judgment
about the investment of their personal retirement savings. As
an unrestricted investment vendor program, the role of the
Minnesota state colleges and universities system would be to
minimize additional costs for activities other than those
necessary for administrative or monitoring duties required under
state or federal law.
(b) The study results must be reported to the chair of the
legislative commission on pensions and retirement, the chair of
the committee on governmental operations of the house of
representatives, and the chair of the committee on governmental
operations and veterans of the senate. The study report must be
filed on or before February 1, 1999.
Sec. 21. [REPEALER.]
(a) Minnesota Statutes 1996, sections 11A.17, subdivisions
10a and 14; and 352D.09, subdivision 8, are repealed.
(b) Minnesota Statutes 1997 Supplement, section 136F.45,
subdivision 3, is repealed.
Sec. 22. [EFFECTIVE DATE.]
(a) Sections 4 and 21, paragraph (b), are effective on the
day following final enactment. Sections 5 and 9 do not abrogate
or modify any memorandum of understanding between an exclusive
representative of affected employees and the board of the
Minnesota state colleges and universities entered into before
the effective date of those sections.
(b) Sections 2, 3, 5, 9, 10, 11, 13, 19, and 20 are
effective on the day following final enactment.
(c) Sections 1, 6, 7, 8, 12, 14, 15, and 21, paragraph (a),
are effective July 1, 1999.
(d) Section 16 is effective upon approval by the
Minneapolis city council and compliance with Minnesota Statutes,
section 645.021.
(e) Sections 17 and 18 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.
ARTICLE 3
QUALIFIED PART-TIME TEACHER RETIREMENT PROGRAM
REPORTING DEADLINE
Section 1. Minnesota Statutes 1996, section 354.66,
subdivision 2, is amended to read:
Subd. 2. [QUALIFIED PART-TIME POSITIONS TEACHER PROGRAM
PARTICIPATION REQUIREMENTS.] A teacher in the a Minnesota public
elementary schools school, a Minnesota secondary schools
school, or technical the Minnesota state colleges or in the
community college system or the state university and
universities system of the state who has three years or more of
allowable service in the association or three years or more of
full-time teaching service in Minnesota public elementary
schools, Minnesota secondary schools, or technical the Minnesota
state colleges or in the community college system or the state
university and universities system, may, by agreement with the
board of the employing district or with the authorized
representative of the board, may be assigned to teaching service
within the district in a part-time teaching position under
subdivision 3. The association must receive a copy of the
agreement must be executed before October 1 of the year for
which the teacher requests to make retirement contributions
under subdivision 4. A copy of the executed agreement must be
filed with the executive director of the association. If the
copy of the executed agreement is filed with the association
after October 1 of the year for which the teacher requests to
make retirement contributions under subdivision 4, the employing
unit shall pay the fine specified in section 354.52, subdivision
6, for each calendar day that elapsed since the October 1 due
date. The association may not accept an executed agreement that
is received by the association more than 15 months late. The
association may not waive the fine required by this section.
Sec. 2. Minnesota Statutes 1996, section 354.66,
subdivision 3, is amended to read:
Subd. 3. [PART-TIME TEACHING POSITION, DEFINED.] For
purposes of this section, the term "part-time teaching position"
shall mean a teaching position within the district in which the
teacher is employed for at least 50 full days or a fractional
equivalent thereof as prescribed in section 354.091, and for
which the teacher is compensated in an amount not exceeding 67
80 percent of the compensation established by the board for a
full-time teacher with identical education and experience with
the employing unit. The compensation of a teacher in the state
colleges and university system may exceed the 67 80 percent
limit if the teacher does not teach just one of the three
quarters in the system's full school year, provided no
additional services are performed while the teacher participates
in the program.
Sec. 3. Minnesota Statutes 1996, section 354A.094,
subdivision 2, is amended to read:
Subd. 2. [PART-TIME TEACHING POSITION, DEFINED.] For
purposes of this section, the term "part-time teaching position"
shall mean a teaching position within the district in which the
teacher is employed for at least 50 full days or a fractional
equivalent of 50 full days calculated using the appropriate
minimum number of hours which would result in a full day of
service credit by the appropriate association and for which the
teacher is compensated in an amount not to exceed 67 80 percent
of the compensation rate established by the board for a
full-time teacher with identical education and experience within
the district.
Sec. 4. Minnesota Statutes 1996, section 354A.094,
subdivision 3, is amended to read:
Subd. 3. [QUALIFIED PART-TIME TEACHER PROGRAM
PARTICIPATION REQUIREMENTS.] A teacher in the public schools of
a city of the first class who has three years or more allowable
service in the applicable retirement fund association or three
years or more of full-time teaching service in Minnesota public
elementary schools, Minnesota secondary schools, and technical
Minnesota state colleges and universities system may, by
agreement with the board of the employing district, be assigned
to teaching service within the district in a part-time teaching
position. The agreement must be executed before October 1 of
the year for which the teacher requests to make retirement
contributions under subdivision 4. A copy of the executed
agreement must be filed with the executive director of the
retirement fund association. If the copy of the executed
agreement is filed with the association after October 1 of the
year for which the teacher requests to make retirement
contributions under subdivision 4, the employing school district
shall pay a fine of $5 for each calendar day that elapsed since
the October 1 due date. The association may not accept an
executed agreement that is received by the association more than
15 months late. The association may not waive the fine required
by this section.
Sec. 5. [EFFECTIVE DATE.]
(a) Sections 1 and 4 are effective on the day following
final enactment.
(b) Sections 2 and 3 are effective on July 1, 1998.
ARTICLE 4
PRIOR SERVICE CREDIT PURCHASES
Section 1. [356.55] [PRIOR SERVICE CREDIT PURCHASE PAYMENT
AMOUNT DETERMINATION PROCEDURE.]
Subdivision 1. [APPLICATION.] Unless the prior service
credit purchase authorization special law or general statute
provision explicitly specifies a different purchase payment
amount determination procedure, this section governs the
determination of the prior service credit purchase payment
amount of any prior service credit purchase.
Subd. 2. [DETERMINATION.] (a) Unless the prior service
credit purchase minimum amount determined under paragraph (d) is
greater, the prior service credit purchase amount is the result
obtained by subtracting the amount determined under paragraph
(c) from the amount determined under paragraph (b).
(b) The present value of the unreduced single life
retirement annuity, with the purchase of the additional service
credit included, must be calculated as follows:
(1) the age at first eligibility for an unreduced single
life retirement annuity, including the purchase of the
additional service credit, must be determined;
(2) the length of total service credit, including the
period of the purchase of the additional service credit, at the
age determined under clause (1) must be determined;
(3) the highest five successive years average salary at the
age determined under clause (1), assuming five percent annual
compounding salary increases from the most current annual salary
amount at the age determined under clause (1), must be
determined;
(4) using the benefit accrual rate or rates applicable to
the prospective purchaser of the service credit based on the
prospective purchaser's actual date of entry into covered
service, the length of service determined under clause (2), and
the final average salary determined under clause (3), the annual
unreduced single life retirement annuity amount must be
determined;
(5) the actuarial present value of the projected annual
unreduced single life retirement annuity amount determined under
clause (4) at the age determined under clause (1), using the
same actuarial factor that the plan would use to determine
actuarial equivalence for optional annuity forms and related
purposes, must be determined; and
(6) the discounted value of the amount determined under
clause (5) to the date of the prospective purchase, using an
interest rate of 8.5 percent and no mortality probability
decrement, must be determined.
(c) The present value of the unreduced single life
retirement annuity, without the purchase of the additional
service credit included, must be calculated as follows:
(1) the age at first eligibility for an unreduced single
life retirement annuity, not including the purchase of
additional service credit, must be determined;
(2) the length of accrued service credit, without the
period of the purchase of the additional service credit, at
the age determined under clause (1), must be determined;
(3) the highest five successive years average salary at the
age determined under clause (1), assuming five percent annual
compounding salary increases from the most current annual salary
amount to the age determined under clause (1), must be
determined;
(4) using the benefit accrual rate or rates applicable to
the prospective purchaser of the service credit based on the
prospective purchaser's actual date of entry into covered
service the length of service credit determined under clause
(2), and the final average salary determined under clause (3),
the annual unreduced single life retirement annuity amount must
be determined;
(5) the actuarial present value of the projected annual
unreduced single life retirement annuity amount determined under
clause (4) at the age determined under clause (1), using the
same actuarial factor that the plan would use to determine
actuarial equivalence for optional annuity forms and related
purposes, must be determined;
(6) the discounted value of the amount determined under
clause (5) to the date of the prospective purchase, using an
interest rate of 8.5 percent and no mortality probability
decrement, must be determined; and
(7) the net value of the discounted value determined under
clause (6), must be determined by applying a service ratio,
where the numerator is the total length of credited service
determined under paragraph (b), clause (2), reduced by the
period of the additional service credit proposed to be
purchased, and where the denominator is the total length of
service credit determined under clause (2).
(d) The minimum prior service credit purchase amount is the
amount determined by multiplying the most current annual salary
of the prospective purchaser by the combined current employee,
employer, and any additional employer contribution rates for the
applicable pension plan and by multiplying that results by the
number of years of service or fractions of years of service of
the potential service credit purchase.
Subd. 3. [SOURCE OF DETERMINATION.] The prior service
credit purchase amounts under subdivision 2 must be calculated
by the chief administrative officer of the public pension plan
using a prior service credit purchase amount determination
process that has been verified for accuracy and consistency
under this section by the commission-retained actuary. That
verification must be in writing and must occur before the first
prior service credit purchase for the plan under this section is
accepted and every five years thereafter or whenever the
preretirement interest rate, postretirement interest rate,
payroll growth, or mortality actuarial assumption for the
applicable pension plan is modified under section 356.215,
whichever occurs first.
Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A
public pension plan may establish a fee to be charged to the
prospective purchaser for processing a prior service credit
purchase application and the prior service credit payment amount
calculation. The fee must be established by the governing board
of the pension plan and must be uniform for comparable service
credit purchase situations or actuarial calculation requests.
The prior service credit purchase processing fee structure must
be published by the chief administrative officer of the
applicable retirement plan in the State Register.
Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless
the prior service credit purchase authorization special law or
general statute provision explicitly specifies otherwise, the
prior service credit purchase payment amount determined under
subdivision 2 is payable by the purchaser, but the former
employer of the purchaser or the current employer of the
purchaser may, at its discretion, pay all or a portion of the
purchase payment amount in excess of an amount equal to the
employee contribution rate or rates in effect during the prior
service period applied to the actual salary rates in effect
during the prior service period, plus annual compound interest
at the rate of 8.5 percent from the date on which the
contributions would have been made if made contemporaneous with
the service period to the date on which the payment is actually
made.
Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a)
As part of the regular data reporting to the consulting actuary
retained by the legislative commission on pensions and
retirement annually, the chief administrative officer of each
public pension plan that has accepted a prior service credit
purchase payment under this section shall report for any
purchase, the purchaser, the purchaser's employer, the age of
the purchaser, the period of the purchase, the purchaser's
prepurchase accrued service credit, the purchaser's postpurchase
accrued service credit, the purchaser's prior service credit
payment, the prior service credit payment made by the
purchaser's employer, and the amount of the additional benefit
or annuity purchased.
(b) As part of the regular annual actuarial valuation for
the applicable public pension plan prepared by the consulting
actuary retained by the legislative commission on pensions and
retirement, there must be an exhibit comparing for each purchase
the total prior service credit payment received from all sources
and the increased public pension plan actuarial accrued
liability resulting from each purchase.
Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION
PROCEDURE.] (a) This section expires and is repealed on July 1,
2001.
(b) Authority for any public pension plan to accept a prior
service credit payment calculated in a timely fashion under this
section expires on October 1, 2001.
Sec. 2. [356.551] [POST-JULY 1, 2001, PRIOR SERVICE CREDIT
PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.]
(a) Unless the prior service credit purchase authorization
special law or general statute provision explicitly specifies a
different purchase payment amount determination procedure, and
if section 356.55 has expired, this section governs the
determination of the prior service credit purchase payment
amount of any prior service credit purchase.
(b) The prior service credit purchase amount is an amount
equal to the actuarial present value, on the date of payment, as
calculated by the chief administrative officer of the pension
plan and reviewed 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 public pension plan specified in section
356.215, subdivision 4d, and the mortality table adopted for the
public pension plan. The calculation must assume continuous
future service in the public pension plan until, and retirement
at, the age at which the minimum requirements of the fund for
normal retirement or retirement with an annuity unreduced for
retirement at an early age, including section 356.30, are met
with the additional service credit purchased. The calculation
must also assume a 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 section 356.215,
subdivision 4d. Payment must be made in one lump sum within one
year of the prior service credit authorization. Payment of the
amount calculated under this subdivision must be made by the
applicable eligible person. However, the current employer or
the prior employer 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 8.5 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
employer agrees to payments under this paragraph, the purchaser
must make the employee payments required under this paragraph
within 290 days of the prior service credit authorization. If
that employee payment is made, the employer payment under this
paragraph must be remitted to the chief administrative officer
of the public pension plan within 60 days of receipt by the
chief administrative officer of the employee payments specified
under this paragraph.
(c) The prospective purchaser must provide any relevant
documentation required by the chief administrative officer of
the public pension plan to determine eligibility for the prior
service credit under this section.
(d) Service credit for the purchase period must be granted
by the public pension plan to the purchaser upon receipt of the
purchase payment amount specified in paragraph (b).
Sec. 3. [PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.]
Subdivision 1. [INDEPENDENT SCHOOL DISTRICT NO. 77,
MANKATO, TEACHER.] (a) Notwithstanding any provision of
Minnesota Statutes, section 354.094, or other law to the
contrary, an eligible person described in paragraph (b) is
entitled to obtain allowable and formula service credit in the
teachers retirement association for the period described in
paragraph (c) upon the payment of the full service credit
purchase amount specified in Minnesota Statutes, section 356.55.
(b) An eligible person is a person who was:
(1) born on June 23, 1946;
(2) granted an extended leave of absence from employment
under the teacher mobility program by independent school
district No. 77, Mankato, on March 3, 1986, for the period July
1, 1986, to June 30, 1989; and
(3) granted a leave which was erroneously characterized in
the "other" category on the leave of absence report submitted to
the teachers retirement association.
(c) The period for service credit purchase is July 1, 1986,
to June 30, 1989.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee contribution
rate or rates in effect during the prior service period applied
to the actual salary rates in effect during the prior service
period, plus annual compound interest at the rate of 8.5 percent
from the date on which the contributions would have been made if
made contemporaneous with the service period to the date on
which the payment is actually made and independent school
district No. 77, Mankato, must pay the balance of the prior
service credit purchase payment amount calculated under
Minnesota Statutes, section 356.55, within 30 days of the
payment by the eligible person. The executive director of the
teachers retirement association must notify the superintendent
of independent school district No. 77, Mankato, of its payment
amount and payment due date if the eligible person makes the
required payment.
(e) If independent school district No. 77, Mankato, fails
to pay its portion of the required prior service credit purchase
payment amount, the executive director may notify the
commissioner of finance of that fact and the commissioner of
finance may order that the required school district payment be
deducted from the next subsequent payment or payments of state
education aid to the school district and be transmitted to the
teachers retirement association.
Subd. 2. [INDEPENDENT SCHOOL DISTRICT NO. 199, INVER GROVE
HEIGHTS, TEACHER.] (a) Notwithstanding Minnesota Statutes,
section 354.096, an eligible person described in paragraph (b)
is entitled to purchase allowable service credit in the teachers
retirement association for the period described in paragraph (c)
by paying the amount specified in Minnesota Statutes, section
356.55, subdivision 2.
(b) An eligible person is a person who:
(1) was on medical leave for multiple sclerosis in the fall
of 1990;
(2) was employed by independent school district No. 199,
Inver Grove Heights, during the period that the medical leave
was taken; and
(3) was not properly notified of the deadline to purchase
service credit for the medical leave period.
(c) The period for service credit purchase is 18 days of a
period of medical leave during the fall of 1990.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee contribution
rate or rates in effect during the prior service period applied
to the actual salary rates in effect during the prior service
period, plus annual compound interest at the rate of 8.5 percent
from the date on which the contributions would have been made if
made contemporaneous with the service period to the date on
which the payment is actually made and independent school
district No. 199, Inver Grove Heights, must pay the balance of
the prior service credit purchase payment amount calculated
under Minnesota Statutes, section 356.55, within 30 days of the
payment by the eligible person. The executive director of the
teachers retirement association must notify the superintendent
of independent school district No. 199, Inver Grove Heights, of
its payment amount and payment due date if the eligible person
makes the required payment.
(e) If independent school district No. 199, Inver Grove
Heights, fails to pay its portion of the required prior service
credit purchase payment amount, the executive director may
notify the commissioner of finance of that fact and the
commissioner of finance may order that the required school
district payment be deducted from the next subsequent payment or
payments of state education aid to the school district and be
transmitted to the teachers retirement association.
Subd. 3. [PRE-JANUARY 1, 1998, LATE REPORTED QUALIFIED
PART-TIME TEACHER PROGRAM AGREEMENT PERIODS.] (a)
Notwithstanding any provision of Minnesota Statutes, section
354.66, to the contrary, an eligible person described in
paragraph (b) is entitled to obtain allowable and formula
service credit in the teachers retirement association for the
period described in paragraph (c) upon the payment of the full
service credit purchase amount specified in Minnesota Statutes,
section 356.55.
(b) An eligible person is a person who rendered part-time
teaching service after the end of the 1993-1994 school year and
before the beginning of the 1998-1999 school year under an
agreement with a school district or other applicable employer
under Minnesota Statutes, section 354.66, that was executed
before the applicable October 1, but was not filed by the
employing unit with the teachers retirement association before
the applicable October 1 deadline.
(c) The period for service credit purchase is the
uncredited portion of a full year of service credit during the
1994-1995, 1995-1996, 1996-1997, and 1997-1998 school years
where the uncredited period of service resulted solely from a
failure of the employing unit to file the part-time teaching
participation agreement with the teachers retirement association
in a timely fashion.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
November 30, 1998, an amount equal to the employee contribution
rate or rates in effect during the prior service period applied
to the actual salary rates in effect during the prior service
period, plus annual compound interest at the rate of 8.5 percent
from the date on which the contributions would have been made if
made contemporaneous with the service period to the date on
which the payment is actually made and the employing unit that
agreed to the part-time teaching service participation program
must pay the balance of the prior service credit purchase
payment amount calculated under Minnesota Statutes, section
356.55, within 30 days of the payment by the eligible person.
The executive director of the teachers retirement association
must notify the chief administrative officer of the applicable
employing unit of its payment amount and payment due date if the
eligible person makes the required payment.
(e) If the applicable employing unit fails to pay its
portion of the required prior service credit purchase payment
amount, the executive director may notify the commissioner of
finance of that fact and the commissioner of finance may order
that the required employer payment be deducted from the next
subsequent payment or payments of any state education or other
aid to that employing unit and be transmitted to the teachers
retirement association.
Subd. 4. [PURCHASE OF SERVICE CREDIT AUTHORIZATION; MIDDLE
MANAGEMENT ASSOCIATION EMPLOYEE.] (a) Notwithstanding Minnesota
Statutes, sections 352.01, subdivision 2, and 352.029,
subdivision 1, and Minnesota Statutes 1997 Supplement, section
352.01, subdivision 2a, an eligible employee described in
paragraph (b) is eligible for membership in the Minnesota state
retirement system general plan and is eligible to purchase
service credit in that plan as specified in paragraph (d).
(b) An eligible employee is a person who:
(1) has been employed by the middle management association
since February 14, 1994; and
(2) was born on September 13, 1958.
(c) An eligible employee in paragraph (b) remains eligible
for membership in the Minnesota state retirement system general
plan, under this subdivision, while the individual remains
employed by the middle management association or a successor
organization providing contribution requirements and other
general requirements for membership are met.
(d) An eligible employee under 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 this act for service with the middle management
association. An eligible employee may not purchase service
credit for any period during which the employer has made
contributions on behalf of the employee to a defined
contribution pension plan or for any period during which the
employee or the employer have made contributions to a defined
benefit pension plan covering public, nonprofit, or private
sector employees, other than a volunteer firefighter relief
association governed by Minnesota Statutes, chapter 424A.
Authority to make the payment terminates on July 1, 1999, or
upon termination of employment with the middle management
association, whichever is earlier.
Subd. 5. [INDEPENDENT SCHOOL DISTRICT NO. 13, COLUMBIA
HEIGHTS, TEACHER.] (a) Notwithstanding Minnesota Statutes,
section 354.094, an eligible person described in paragraph (b)
is entitled to purchase allowable and formula service credit in
the teachers retirement association for the period described in
paragraph (c) by paying the amount specified in Minnesota
Statutes, section 356.55, subdivision 2.
(b) An eligible person for purposes of paragraph (a) is a
person who was born on January 26, 1944, was initially hired by
independent school district No. 13, Columbia Heights, on August
30, 1967, was granted a five year extended leave of absence by
independent school district No. 13, Columbia Heights, for the
period July 1, 1994, through June 30, 1999, and was unable to
make contributions under Minnesota Statutes, section 354.094,
subdivision 1, because of the failure of independent school
district No. 13, Columbia Heights, to timely forward the
person's leave payment to the teachers retirement association.
(c) The period for service credit purchase is the extended
leave of absence for the 1996-1997 school year.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee, employer,
and employer additional contribution rates in effect during the
prior service period applied to the actual salary rates in
effect during the prior service period, plus annual compound
interest at the rate of 8.5 percent from the date on which the
contributions would have been made if made contemporaneous with
the service period to the date on which the payment is actually
made and independent school district No. 13, Columbia Heights,
must pay the balance of the prior service credit purchase
payment amount calculated under Minnesota Statutes, section
356.55, within 30 days of the payment by the eligible person.
The executive director of the teachers retirement association
must notify the superintendent of independent school district
No. 13, Columbia Heights, of its payment amount and payment due
date if the eligible person makes the required payment.
(e) If independent school district No. 13, Columbia
Heights, fails to pay its portion of the required prior service
credit purchase payment amount, the executive director may
notify the commissioner of finance of that fact and the
commissioner of finance may order that the required employer
payment be deducted from any state education or other aid
payable to independent school district No. 13, Columbia Heights,
and be transmitted to the teachers retirement association.
Subd. 6. [WINONA STATE UNIVERSITY FACULTY MEMBER.] (a)
Notwithstanding Minnesota Statutes, section 354.094, an eligible
person described in paragraph (b) is entitled to purchase
allowable service credit in the teachers retirement association
for the period described in paragraph (c) by paying the amount
specified in Minnesota Statutes, section 356.55, subdivision 2.
(b) An eligible person for purposes of paragraph (a) is a
person who was born on September 5, 1943, was initially hired by
Winona state university on September 4, 1979, was granted an
extended leave of absence by Winona state university on March
18, 1996, and was unable to make contributions under Minnesota
Statutes, section 354.094, subdivision 1, because of the failure
of Winona state university to timely submit the leave of absence
report to the teachers retirement association.
(c) The period for service credit purchase is the first
year of a three year extended leave of absence that began with
the 1996-1997 school year.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee, employer,
and employer additional contribution rates in effect during the
prior service period applied to the actual salary rates in
effect during the prior service period, plus annual compound
interest at the rate of 8.5 percent from the date on which the
contributions would have been made if made contemporaneous with
the service period to the date on which the payment is actually
made and Winona state university must pay the balance of the
prior service credit purchase payment amount calculated under
Minnesota Statutes, section 356.55, within 30 days of the
payment by the eligible person. The executive director of the
teachers retirement association must notify the president of
Winona state university of its payment amount and payment due
date if the eligible person makes the required payment.
(e) If Winona state university fails to pay its portion of
the required prior service credit purchase payment amount, the
executive director may notify the commissioner of finance of
that fact and the commissioner of finance may order that the
required employer payment be deducted from any appropriation to
the Minnesota state colleges and universities system and be
transmitted to the teachers retirement association.
Subd. 7. [INDEPENDENT SCHOOL DISTRICT NO. 621, MOUNDS
VIEW, TEACHER.] (a) Notwithstanding Minnesota Statutes, section
354.092, an eligible person described in paragraph (b) is
entitled to purchase allowable service credit in the teachers
retirement association for the period described in paragraph (c)
by paying the amount specified in Minnesota Statutes, section
356.55, subdivision 2.
(b) An eligible person for purposes of paragraph (a) is a
person who was born on December 19, 1940, was initially employed
as a teacher on August 27, 1968, and is employed by independent
school district No. 621, Mounds View.
(c) The period for service credit purchase is the
uncredited portion of a sabbatical leave during the 1984-1985
school year.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee contribution
rate or rates in effect during the prior service period applied
to the actual salary rates in effect during the prior service
period, plus annual compound interest at the rate of 8.5 percent
from the date on which the contributions would have been made if
made contemporaneous with the service period to the date on
which the payment is actually made. Independent school district
No. 621, Mounds View, must pay the balance of the prior service
credit purchase payment amount calculated under Minnesota
Statutes, section 356.55, within 30 days of the payment by the
eligible person. The executive director of the teachers
retirement association must notify the superintendent of
independent school district No. 621, Mounds View, of its payment
amount and payment due date if the eligible person makes the
required payment.
(e) If independent school district No. 621, Mounds View,
fails to pay its portion of the required prior service credit
purchase payment amount, the executive director may notify the
commissioner of finance of that fact and the commissioner of
finance may order that the required employer payment be deducted
from the next subsequent payment or payments of state education
aid to the school district be transmitted to the teachers
retirement association.
Subd. 8. [INDEPENDENT SCHOOL DISTRICT NO. 709, DULUTH,
TEACHER.] (a) Notwithstanding any provision of Minnesota
Statutes, chapter 354A, the articles of incorporation of the
Duluth teachers retirement fund association, or the Duluth
teachers retirement fund association bylaws to the contrary, an
eligible person described in paragraph (b) is entitled to
purchase allowable service credit in the Duluth teachers
retirement fund association for the periods described in
paragraph (c) by paying the amount specified in Minnesota
Statutes, section 356.55, subdivision 2.
(b) An eligible person for purposes of paragraph (a) is a
person who was born on October 29, 1942, was first employed by
independent school district No. 709, Duluth, on September 7,
1966, was granted a maternity leave that began on February 26,
1968, was employed by independent school district No. 709,
Duluth, on a less-than-full-time basis during the 1970-1971 and
1971-1972 school years, and was employed on a full-time contract
basis from September 4, 1972, through the 1997-1998 school year.
(c) The period for service credit purchase is any portion
of the period February 26, 1968, to September 4, 1972, that was
not previously credited as allowable service by the Duluth
teachers retirement fund association, but not to exceed one year
of service credit for any school year.
Subd. 9. [INDEPENDENT SCHOOL DISTRICT NO. 200, HASTINGS,
TEACHER.] (a) Notwithstanding Minnesota Statutes, section
354.094, an eligible person described in paragraph (b) is
entitled to purchase allowable and formula service credit in the
teachers retirement association for the period described in
paragraph (c) by paying the amount specified in Minnesota
Statutes, section 356.55, subdivision 2.
(b) An eligible person for purposes of paragraph (a) is a
person who was born on December 17, 1941, was initially employed
by independent school district No. 200, Hastings, and was first
granted an extended leave of absence for the 1996-1997 school
year.
(c) The period for service credit purchase is the 1996-1997
school year.
(d) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, the eligible person must pay, on or before
September 1, 1998, an amount equal to the employee contribution
rate or rates in effect during the prior service period applied
to the actual salary rates in effect during the prior service
period, plus annual compound interest at the rate of 8.5 percent
from the date on which the contributions would have been made if
made contemporaneous with the service period to the date on
which the payment is actually made. Independent school district
No. 200, Hastings, must pay the balance of the prior service
credit purchase payment amount calculated under Minnesota
Statutes, section 356.55, within 30 days of the payment by the
eligible person. The executive director of the teachers
retirement association must notify the superintendent of
independent school district No. 200, Hastings, of its payment
amount and payment due date if the eligible person makes the
required payment.
(e) If independent school district No. 200, Hastings, fails
to pay its portion of the required prior service credit purchase
payment amount, the executive director may notify the
commissioner of finance of that fact and the commissioner of
finance may order that the required employer payment be deducted
from the next subsequent payment or payments of state education
aid to the school district be transmitted to the teachers
retirement association.
Sec. 4. [EFFECTIVE DATE.]
Sections 1, 2, and 3 are effective on the day following
final enactment.
ARTICLE 5
JUDGES RETIREMENT PLAN CONTRIBUTION MODIFICATIONS
Section 1. Minnesota Statutes 1997 Supplement, section
15A.083, subdivision 5, is amended to read:
Subd. 5. [TAX COURT.] The salary of a judge of the tax
court is the same as 98.52 percent of the salary for a district
court judge. The salary of the chief tax court judge is the
same as 98.52 percent of the salary for a chief district court
judge.
Sec. 2. Minnesota Statutes 1997 Supplement, section
15A.083, subdivision 6a, is amended to read:
Subd. 6a. [ADMINISTRATIVE LAW JUDGE; SALARIES.] The salary
of the chief administrative law judge is the same as 98.52
percent of the salary of a district court judge. The salaries
of the assistant chief administrative law judge and
administrative law judge supervisors are 95 93.60 percent of the
salary of a district court judge. The salary of an
administrative law judge employed by the office of
administrative hearings is 90 88.67 percent of the salary of a
district court judge as set under section 15A.082, subdivision 3.
Sec. 3. Minnesota Statutes 1997 Supplement, section
15A.083, subdivision 7, is amended to read:
Subd. 7. [WORKERS' COMPENSATION COURT OF APPEALS AND
COMPENSATION JUDGES.] Salaries of judges of the workers'
compensation court of appeals are the same as 98.52 percent of
the salary for district court judges. The salary of the chief
judge of the workers' compensation court of appeals is the same
as 98.52 percent of the salary for a chief district court
judge. Salaries of compensation judges are 90 88.67 percent of
the salary of district court judges. The chief workers'
compensation settlement judge at the department of labor and
industry may be paid an annual salary that is up to five percent
greater than the salary of workers' compensation settlement
judges at the department of labor and industry.
Sec. 4. Minnesota Statutes 1996, section 490.123,
subdivision 1a, is amended to read:
Subd. 1a. [MEMBER CONTRIBUTION RATES.] (a) A judge who is
covered by the federal old age, survivors, disability, and
health insurance program shall contribute to the fund from each
salary payment a sum equal to 6.27 8.00 percent of salary.
(b) A judge not so covered shall contribute to the fund
from each salary payment a sum equal to 8.15 percent of salary.
(c) The contribution under this subdivision is payable by
salary deduction.
Sec. 5. Minnesota Statutes 1996, section 490.123,
subdivision 1b, is amended to read:
Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer
contribution rate on behalf of a judge is 22 20.5 percent of
salary.
The employer contribution must be paid by the state court
administrator and is payable at the same time as member
contributions under subdivision 1a are remitted.
Sec. 6. Laws 1997, Second Special Session chapter 3,
section 16, is amended to read:
Sec. 16. [SALARIES OF CONSTITUTIONAL OFFICERS,
LEGISLATORS, AND JUDGES.]
(a) The salaries of constitutional officers are increased
by 2.5 percent effective July 1, 1997, and by 2.5 percent
effective January 1, 1998.
(b) The salaries of legislators are increased by 5.0
percent effective January 4, 1999.
(c) The salaries of the judges of the supreme court, court
of appeals, and district court are increased by 4.0 percent
effective July 1, 1997, and by 5.0 percent effective January 1,
1998, and by 1.5 percent effective July 1, 1998.
(d) Effective July 1, 1999, the salaries of judges of the
supreme court, court of appeals, and district court are
increased by the average of the general salary adjustments for
state employees in fiscal year 1998 provided by negotiated
collective bargaining agreements or arbitration awards ratified
by the legislature in the 1998 legislative session.
(e) Effective January 1, 2000, the salaries of judges of
the supreme court, court of appeals, and district court are
increased by the average of the general salary adjustments for
state employees in fiscal year 1999 provided by negotiated
collective bargaining agreements or arbitration awards ratified
by the legislature in the 1998 legislative session.
(f) The commissioner of employee relations shall calculate
the average of the general salary adjustments provided by
negotiated collective bargaining agreements or arbitration
awards ratified by the legislature in the 1998 legislative
session. Negotiated collective bargaining agreements or
arbitration awards that do not include general salary
adjustments may not be included in these calculations. The
commissioner shall weigh the general salary adjustments by the
number of full-time equivalent employees covered by each
agreement or arbitration award. The commissioner shall
calculate the average general salary adjustment for each fiscal
year covered by the agreements or arbitration awards. The
results of these calculations must be expressed as percentages,
rounded to the nearest one-tenth of one percent. The
commissioner shall calculate the new salaries for the positions
listed in paragraphs (d) and (e) using the applicable
percentages from the calculations in this paragraph and report
them to the speaker of the house, the president of the senate,
the chief justice of the supreme court, and the governor.
Sec. 7. [SALARY INCREASE CONDITIONED ON MEMBER
CONTRIBUTION INCREASE.]
(a) The increase in judicial salaries under section 6 is
not applicable to a judge if the member contribution rate
increase under section 4, paragraph (a), is not also deducted
from the salary of the judge.
(b) The increase in judicial salaries under section 6 also
applies to judges who are not covered by the federal old age,
survivors, disability, and health insurance program.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective on July 1, 1998.
ARTICLE 6
UNCLASSIFIED STATE EMPLOYEE PENSION PLAN
MODIFICATIONS
Section 1. Minnesota Statutes 1996, section 352D.12, is
amended to read:
352D.12 [TRANSFER OF PRIOR SERVICE CONTRIBUTIONS.]
(a) An employee who is a participant in the unclassified
program and who has prior service credit in a covered plan under
chapters 3A, 352, 352C, 353, 354, 354A, and 422A may, within the
time limits specified in this section, elect to transfer to the
unclassified program prior service contributions to one or more
of those plans. Participants with six or more years of prior
service credit in a plan governed by chapter 3A or 352C on July
1, 1998, may not transfer prior service contributions.
Participants with less than six years of prior service credit in
a plan governed by chapter 3A or 352C on July 1, 1998, must be
contributing to the unclassified plan on or after January 5,
1999, in order to transfer prior contributions.
(b) For participants with prior service credit in a plan
governed by chapter 352, 353, 354, 354A, or 422A, "prior service
contributions" means the accumulated employee and equal employer
contributions with interest at an annual rate of 8.5 percent
compounded annually, based on fiscal year balances. For
participants with less than six years of service credit as of
July 1, 1998, and with prior service credit in a plan governed
by chapter 3A or 352C, "prior service contributions" means an
amount equal to twice the amount of the accumulated member
contributions plus annual compound interest at the rate of 8.5
percent, computed on fiscal year balances.
(c) If a participant has taken a refund from a fund
retirement plan listed in this section, the participant may
repay the refund to that fund plan, notwithstanding any
restrictions on repayment to that fund plan, plus 8.5 percent
interest compounded annually and have the accumulated employee
and equal employer contributions transferred to the unclassified
program with interest at an annual rate of 8.5 percent
compounded annually based on fiscal year balances. If a person
repays a refund and subsequently elects to have the money
transferred to the unclassified program, the repayment amount,
including interest, is added to the fiscal year balance in the
year which the repayment was made.
(d) A participant electing to transfer prior service
contributions credited to a retirement plan governed by chapter
352, 353, 354, 354A, or 422A as provided under this section must
complete the application for the transfer and repay any refund
within one year of July 1, 1985 or the commencement of the
employee's participation in the unclassified program, whichever
is later. A participant electing to transfer prior service
contributions credited to a retirement plan governed by chapter
3A or 352C as provided under this section must complete the
application for the transfer and repay any refund between
January 5, 1999, and June 1, 1999, if the employee commenced
participation in the unclassified program before January 5,
1999, or within one year of the commencement of the employee's
participation in the unclassified program if the employee
commenced participation in the unclassified program after
January 4, 1999.
Sec. 2. [FUNDING.]
Money appropriated in Laws 1997, chapter 202, article 1,
section 31, may be used to make transfers of funds on behalf of
legislators and constitutional officers under section 1.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective July 1, 1998.
ARTICLE 7
LOCAL POLICE AND FIRE RELIEF ASSOCIATION
PENSION CHANGES
Section 1. [COLUMBIA HEIGHTS VOLUNTEER FIRE DEPARTMENT
RELIEF ASSOCIATION; INCORPORATION AND PLAN RESTRUCTURING.]
Subdivision 1. [ORGANIZATION AND PLAN RESTRUCTURING.]
Notwithstanding the provisions of Laws 1977, chapter 374,
sections 38 to 60, as amended, the entity currently known as the
"Columbia Heights fire department relief association, volunteer
division" shall become incorporated under Minnesota Statutes,
chapter 317A, and be known as the "Columbia Heights volunteer
fire department relief association." The new entity will be
governed by Minnesota Statutes, chapters 69, 317A, 356, 356A,
and 424A, and any other laws applicable to volunteer fire
department relief associations. The Columbia Heights volunteer
fire department relief association may adopt the existing bylaws
of the "Columbia Heights fire department relief association,
volunteer division"; provided, however, that the bylaws must
provide that future benefits payable to any member of the
association are defined contribution lump sum service pensions
under Minnesota Statutes, section 424A.02, subdivision 4.
Subd. 2. [BOARD RESTRUCTURING.] The board must be
reconstituted in conformance with Minnesota Statutes, section
424A.04 within 90 days after the effective date of this section.
Sec. 2. [MINNEAPOLIS FIRE; OPTIONAL ANNUITY EXTENSION TO
CERTAIN SURVIVORS.]
(a) Notwithstanding Laws 1997, chapter 233, article 4,
section 18, the surviving spouse of any service pensioner or
disability benefit recipient of the Minneapolis fire department
relief association who died between July 1, 1997, and October 1,
1997, is entitled to a surviving spouse benefit equal to the 100
percent joint and survivor annuity amount which the decedent
would have been eligible to select if the decedent had been
entitled and able to select an optional annuity form on the date
of death.
(b) The benefit under paragraph (a) is in lieu of any other
survivor benefit payable from the Minneapolis fire department
relief association.
(c) The benefit under this section accrues as of October 1,
1997, and is payable on the first day of the month next
following the effective date of this section. The initial
benefit payment must include the increase amounts retroactive to
October 1, 1997.
Sec. 3. Laws 1977, chapter 61, section 6, as amended by
Laws 1981, chapter 68, section 39, is amended to read:
Sec. 6. [FINANCIAL REQUIREMENTS OF THE TRUST FUND.]
Commencing January 1, 1978, (a) The city of Eveleth shall
provide by annual levy an amount sufficient to pay the greater
of either (a) an amount which when added to the investment
income of the trust fund is sufficient to pay the benefits
provided under the trust fund for the succeeding year as
certified by the board of trustees of the trust fund.; or (b) an
amount equal to the level annual dollar amount sufficient to
amortize the unfunded accrued liability of the trust fund by
December 31, 1991, as determined in accordance with Minnesota
Statutes, Sections 69.77, 356.215 and 356.216, in the latest
actuarial valuation.
The annual levy under this section shall not be included in
any limitation as to rate or amount set by charter and shall be
a special levy for purposes of Minnesota Statutes, Section
275.50, Subdivision 5. All revenues generated by the levy
required under this section shall be transferred to the trust
fund.
(b) If the city of Eveleth fails to contribute the amount
required in paragraph (a) in a given year, no postretirement
adjustment granted under Laws 1995, chapter 262, article 10,
section 1, or Laws 1997, chapter 241, article 2, section 19, is
payable in the following year.
Sec. 4. Laws 1995, chapter 262, article 10, section 1, is
amended to read:
Section 1. [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, 1995.
If the city of Eveleth fails to contribute an amount required in
a given year sufficient to amortize the unfunded actuarial
accrued liability of the police and fire trust fund by December
31, 1998, the increases under this section in the following year
are not payable.
Sec. 5. [EFFECTIVE DATE.]
(a) Section 1 is effective the day after approval by the
Columbia Heights city council and compliance with Minnesota
Statutes, section 645.021.
(b) Section 2 is effective upon approval by the city
council of the city of Minneapolis and compliance with Minnesota
Statutes, section 645.021, subdivision 3.
ARTICLE 8
ACTUARIAL SERVICES CONTRACT-RELATED CHANGES
Section 1. Minnesota Statutes 1997 Supplement, section
3.85, subdivision 11, is amended to read:
Subd. 11. [VALUATIONS AND REPORTS TO LEGISLATURE.] (a) The
commission shall contract with an established actuarial
consulting firm to conduct annual actuarial valuations for the
retirement plans named in paragraph (b). The contract must
include provisions for performing cost analyses of proposals for
changes in benefit and funding policies.
(b) The contract for actuarial valuation must include the
following retirement plans:
(1) the teachers retirement plan, teachers retirement
association;
(2) the general state employees retirement plan, Minnesota
state retirement system;
(3) the correctional employees retirement plan, Minnesota
state retirement system;
(4) the state patrol retirement plan, Minnesota state
retirement system;
(5) the judges retirement plan, Minnesota state retirement
system;
(6) the Minneapolis employees retirement plan, Minneapolis
employees retirement fund;
(7) the public employees retirement plan, public employees
retirement association;
(8) the public employees police and fire plan, public
employees retirement association;
(9) the Duluth teachers retirement plan, Duluth teachers
retirement fund association;
(10) the Minneapolis teachers retirement plan, Minneapolis
teachers retirement fund association;
(11) the St. Paul teachers retirement plan, St. Paul
teachers retirement fund association;
(12) the legislators retirement plan, Minnesota state
retirement system; and
(13) the elective state officers retirement plan, Minnesota
state retirement system.
(c) The contract must specify completion of annual
actuarial valuation calculations on a fiscal year basis with
their contents as specified in section 356.215, and the
standards for actuarial work adopted by the commission.
The contract must specify completion of annual experience
data collection and processing and a quadrennial published
experience study for the plans listed in paragraph (b), clauses
(1), (2), and (7), as provided for in the standards for
actuarial work adopted by the commission. The experience data
collection, processing, and analysis must evaluate the following:
(1) individual salary progression;
(2) rate of return on investments based on current asset
value;
(3) payroll growth;
(4) mortality;
(5) retirement age;
(6) withdrawal; and
(7) disablement.
(d) The actuary retained by the commission shall annually
prepare a report to the legislature, including the commentary on
the actuarial valuation calculations for the plans named in
paragraph (b) and summarizing the results of the actuarial
valuation calculations. The commission-retained actuary shall
include with the report the actuary's recommendations concerning
the appropriateness of the support rates to achieve proper
funding of the retirement funds by the required funding dates.
The commission-retained actuary shall, as part of the
quadrennial published experience study, include recommendations
to the legislature on the appropriateness of the actuarial
valuation assumptions required for evaluation in the study.
(e) If the actuarial gain and loss analysis in the
actuarial valuation calculations indicates a persistent pattern
of sizable gains or losses, as directed by the commission, the
actuary retained by the commission shall prepare a special
experience study for a plan listed in paragraph (b), clause (3),
(4), (5), (6), (8), (9), (10), (11), (12), or (13), in the
manner provided for in the standards for actuarial work adopted
by the commission.
(f) The term of the contract between the commission and the
actuary retained by the commission is two four years, plus not
to exceed two one-year extensions before competitive bidding.
The contract is subject to competitive bidding procedures as
specified by the commission.
Sec. 2. Minnesota Statutes 1997 Supplement, section
356.215, subdivision 2, is amended to read:
Subd. 2. [REQUIREMENTS.] (a) It is the policy of the
legislature that it is necessary and appropriate to determine
annually the financial status of tax supported retirement and
pension plans for public employees. To achieve this goal, the
legislative commission on pensions and retirement shall have
prepared by the actuary retained by the commission annual
actuarial valuations of the retirement plans enumerated in
section 3.85, subdivision 11, paragraph (b), quadrennial
experience studies of the retirement plans enumerated in section
3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7),
and, two years after each set of quadrennial experience studies,
quadrennial projection valuations of at least one of the
retirement plans enumerated in section 3.85, subdivision 11,
paragraph (b), clauses (1), (2), and (7), and of any other
retirement plan enumerated in section 3.85, subdivision 11,
paragraph (b), for which it determines that the analysis is may
be beneficial. The governing or managing board or
administrative officials of each public pension and retirement
fund or plan enumerated in section 356.20, subdivision 2,
clauses (9), (10), and (12), shall have prepared by an approved
actuary annual actuarial valuations of their respective funds as
provided in this section. This requirement also applies to any
fund that is the successor to any organization enumerated in
section 356.20, subdivision 2, or to the governing or managing
board or administrative officials of any newly formed retirement
fund or association operating under the control or supervision
of any public employee group, governmental unit, or institution
receiving a portion of its support through legislative
appropriations, and any local police or fire fund coming within
the provisions of section 356.216.
(b) The A quadrennial projection valuations valuation
required under paragraph (a) are is intended to serve as an
additional analytical tool with which policy makers may assess
the future funding status of public plans through forecasting
and testing various potential outcomes over time if certain plan
assumptions or valuation methods were to be modified. In
consultation with the executive director of the legislative
commission on pensions and retirement, the retirement fund
directors, the state economist, the state demographer, the
commissioner of finance, and the commissioner of employee
relations, the actuary retained by the legislative commission on
pensions and retirement shall perform the quadrennial projection
valuations, testing future implications for plan funding by
modifying assumptions and methods currently in place. The
commission-retained actuary shall provide advice to the
commission as to the periods over which such projections should
be made, the nature and scope of the scenarios to be analyzed,
and the measures of funding status to be employed, and shall
report the results of these analyses in the same manner as for
quadrennial experience studies.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective on the day following final
enactment.
ARTICLE 9
PERA CORRECTIONAL EMPLOYEE DISABILITY COVERAGE
Section 1. Minnesota Statutes 1997 Supplement, section
353.27, subdivision 2, is amended to read:
Subd. 2. [EMPLOYEE CONTRIBUTION.] (a) Except as provided
in paragraph (b), the employee contribution shall be an
amount (a) (1) for a "basic member" equal to 8.75 percent of
total salary; and (b) (2) for a "coordinated member" equal to
4.75 percent of total salary.
(b) For local government correctional service employees, as
defined in section 353.33, subdivision 3a, the employee
contribution is an amount equal to 4.96 percent of total salary.
(c) These contributions must be made by deduction from
salary in the manner provided in subdivision 4. Where any
portion of a member's salary is paid from other than public
funds, such member's employee contribution must be based on the
total salary received from all sources.
Sec. 2. Minnesota Statutes 1996, section 353.27,
subdivision 3, is amended to read:
Subd. 3. [EMPLOYER CONTRIBUTION.] (a) Except as provided
in paragraph (b), the employer contribution shall be an amount
equal to the employee contribution under subdivision 2.
(b) On behalf of local government correctional service
employees, as defined in section 353.33, subdivision 3a, the
employer contribution is an amount equal to 5.06 percent of
total salary.
(c) This contribution shall be made from funds available to
the employing subdivision by the means and in the manner
provided in section 353.28.
Sec. 3. Minnesota Statutes 1996, section 353.33,
subdivision 3a, is amended to read:
Subd. 3a. [CORRECTIONAL EMPLOYEE DISABILITY BENEFIT
COVERAGE.] (a) For purposes of the disability benefit coverage
provided under this subdivision, a local government correctional
service employee is a person who:
(1) is an "essential employee" as defined in section
179A.03, subdivision 7;
(2) is employed in a county-administered jail or
correctional facility or in a regional correctional facility
administered by multiple counties;
(3) spends at least 75 percent of the employee's working
time in direct contact with persons confined in the jail or
facility, as certified by the employer to the executive director
of the association before August 1, 1998, or within 30 days of
employment in the qualifying county employment position,
whichever is later; and
(4) is a "public employee" as defined in section 353.01,
and is not a member of the public employees retirement
association police and fire fund.
(b) A local government correctional employee who becomes
disabled and physically or mentally unfit to perform the duties
of the position as a direct result of an injury, sickness, or
other disability incurred in or arising out of any act of duty
that renders the employee physically or mentally unable to
perform the employee's correctional facility duties, is entitled
to a disability benefit based on covered service under this
chapter only in an amount equal to 45 percent of the average
salary defined in section 353.29, subdivision 2, plus an
additional 1.8 percent for each year of service as a
correctional service employee after July 1, 1998, in excess of
25 years.
(c) If the eligible employee is entitled to receive a
disability benefit as provided in paragraph (b) and has credit
for less covered correctional service than the length of service
upon which the correctional disability benefit is based, and
also has credit for regular plan service, the employee is
entitled to a disability benefit or deferred retirement annuity
based on the regular plan service only for the service that,
when combined with the correctional service, exceeds the number
of years on which the correctional disability benefit is based.
The disabled employee who also has credit for regular plan
service must in all respects qualify under section 353.33 to be
entitled to receive a disability benefit based on the regular
plan service, except that the service may be combined to satisfy
length of service requirements. Any deferred annuity to which
the employee may be entitled based on regular plan service must
be augmented as provided in section 353.71 while the employee is
receiving a disability benefit under this subdivision.
Subd. 3b. [OPTIONAL ANNUITY ELECTION.] A disabled member
may elect to receive the normal disability benefit or an
optional annuity under section 353.30, subdivision 3. The
election of an optional annuity must be made prior to the
commencement of payment of the disability benefit. The optional
annuity must begin to accrue on the same date as provided for
the disability benefit.
(1) If a person who is not the spouse of a member is named
as beneficiary of the joint and survivor optional annuity, the
person is eligible to receive the annuity only if the spouse, on
the disability application form prescribed by the executive
director, permanently waives the surviving spouse benefits under
sections 353.31, subdivision 1, and 353.32, subdivision 1a. If
the spouse of the member refuses to permanently waive the
surviving spouse coverage, the selection of a person other than
the spouse of the member as a joint annuitant is invalid.
(2) If the spouse of the member permanently waives survivor
coverage, the dependent children, if any, continue to be
eligible for survivor benefits under section 353.31, subdivision
1, including the minimum benefit in section 353.31, subdivision
1a. The designated optional annuity beneficiary may draw the
monthly benefit; however, the amount payable to the dependent
child or children and joint annuitant must not exceed the 70
percent maximum family benefit under section 353.31, subdivision
1a. If the maximum is exceeded, the benefit of the joint
annuitant must be reduced to the amount necessary so that the
total family benefit does not exceed the 70 percent maximum
family benefit amount.
(3) If the spouse is named as the beneficiary of the joint
and survivor optional annuity, the spouse may draw the monthly
benefits; however, the amount payable to the dependent child or
children and the joint annuitant must not exceed the 70 percent
maximum family benefit under section 353.31, subdivision 1a. If
the maximum is exceeded, each dependent child will receive ten
percent of the member's specified average monthly salary, and
the benefit to the joint annuitant must be reduced to the amount
necessary so that the total family benefit does not exceed the
70 percent maximum family benefit amount. The joint and
survivor optional annuity must be restored to the surviving
spouse, plus applicable postretirement adjustments under section
356.41, as the dependent child or children become no longer
dependent under section 353.01, subdivision 15.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the first full pay period
beginning after June 30, 1998. Section 3 is effective July 1,
1998, and applies to disabilities that occur after June 30, 1998.
Presented to the governor April 10, 1998
Signed by the governor April 20, 1998, 11:25 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes