Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 461-S.F.No. 2796
An act relating to retirement; pension plan actuarial
reporting; various public retirement plans; volunteer
firefighter relief associations; Minneapolis
firefighters relief association; modifying actuarial
cost allocation by the legislative commission on
pensions and retirement; changing the actuarial value
of assets, actuarial assumptions and funding surplus
recognition method; revising reemployed annuitant
earnings limitations; adding certain prior
correctional positions to correctional plan coverage;
clarifying various former police and fire
consolidation account merger provisions; authorizing
certain optional annuity form elections by former
consolidation account members; revising local
correctional retirement plan membership eligibility;
increasing local correctional retirement plan member
and employer contribution rates; authorizing the
purchase of nonprofit community-based corporation
teaching service; expanding investment options for
employer matching contribution tax sheltered
annuities; modifying various volunteer firefighter
relief association benefit and administration
provisions; modifying judicial pension provision;
modifying the marriage duration requirement for
certain Minneapolis firefighter relief association
survivor benefits; creating additional Minneapolis
police and firefighter relief association post
retirement adjustment mechanisms; resolving various
individual and small group pension problems; amending
Minnesota Statutes 1998, sections 16A.055, subdivision
5; 69.773, subdivision 1; 122A.46, subdivision 1, and
by adding a subdivision; 136F.43, subdivisions 1, 2,
and 6; 136F.45, subdivision 1a; 352.115, subdivision
10; 352.15, subdivision 1a; 352.91, subdivisions 3c,
3d, and by adding subdivisions; 352B.01, subdivision
3, and by adding a subdivision; 352D.02, subdivision
1; 352D.04, subdivision 2; 352D.05, subdivision 3;
352D.06; 352D.09, subdivision 5a; 353.01, subdivisions
2, 6, 11a, 28, 32, and by adding a subdivision;
353.15, subdivision 2; 353.27, subdivisions 4 and 12;
353.33, subdivisions 2 and 6; 353.34, subdivision 1;
353.37, by adding a subdivision; 353.64, subdivisions
2, 3, 4, and by adding a subdivision; 353.656,
subdivisions 1 and 3; 353.71, subdivision 2; 353B.11,
subdivision 3; 354.05, subdivisions 2 and 35; 354.091;
354.092, subdivision 2; 354.093; 354.094, subdivision
1; 354.10, subdivision 2; 354.35; 354.44, subdivision
5; 354.46, subdivision 2a; 354.47, subdivision 1;
354.48, subdivision 6; 354.49, subdivision 1; 354.52,
subdivisions 3, 4, 4a, and 4b; 354.63, subdivision 2;
354A.091, subdivisions 1, 2, 3, 5, and 6; 354A.31,
subdivisions 3 and 3a; 354B.23, subdivision 5a;
354C.12, subdivision 1a; 354C.165; 356.215,
subdivisions 1, 2, and 4d; 356.24, by adding a
subdivision; 356.30, subdivision 1; 356A.01,
subdivision 8; 356A.02; 356A.06, by adding a
subdivision; 423B.01; 424A.001, subdivision 9;
424A.02, subdivisions 3, 7, 9, 13, and by adding a
subdivision; 424A.04, subdivision 1; 424A.05,
subdivision 3; 490.121, subdivision 4, and by adding a
subdivision; 490.123, subdivisions 1a and 1b; and
490.124, subdivision 1; Minnesota Statutes 1999
Supplement, sections 3.85, subdivision 12; 69.021,
subdivision 7; 136F.48; 352.1155, subdivisions 1 and
4; 353.01, subdivisions 2b and 10; 353.64, subdivision
1; 353E.02; 353E.03; 353F.02, subdivision 5; 354.445;
354.536, subdivision 1; 354A.101, subdivision 1;
356.215, subdivision 4g; 356.24, subdivisions 1 and
1b; and 423A.02, subdivisions 1b, 4 and 5; Laws 1965,
chapter 705, section 1, subdivision 4, as amended;
proposing coding for new law in Minnesota Statutes,
chapters 69; 352; 353; 354; 354A; 356; and 423B;
proposing coding for new law as Minnesota Statutes,
chapter 424B; repealing Minnesota Statutes 1998,
sections 352.91, subdivision 4; 353.024; 354.52,
subdivision 2; and 424A.02, subdivision 11; Minnesota
Statutes 1999 Supplement, sections 356.24, subdivision
1a; and 356.61.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
ACTUARIAL ASSET VALUE CHANGE,
ACTUARIAL ASSUMPTION CHANGES,
ACTUARIAL METHOD CHANGES, AND
ACTUARIAL REPORTING COST ALLOCATION CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section
3.85, subdivision 12, is amended to read:
Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The
commission shall assess each retirement plan specified in
subdivision 11, paragraph (b), its appropriate portion of the
compensation paid to the actuary retained by the commission for
the actuarial valuation calculations, quadrennial projection
valuations, and quadrennial experience studies. The total
assessment is 100 percent of the amount of contract compensation
for the actuarial consulting firm retained by the commission for
actuarial valuation calculations, including the any public
employees police and fire plan consolidation accounts of the
public employees retirement association established before March
2, 1999, for which the municipality declined merger under
section 353.665, subdivision 1, or established after March 1,
1999, annual experience data collection and processing, and
quadrennial experience studies and quadrennial projection
valuations.
The portion of the total assessment payable by each
retirement system or pension plan must be determined as follows:
(1) Each pension plan specified in subdivision 11,
paragraph (b), clauses (1) to (14), must pay the following
indexed amount based on its total active, deferred, inactive,
and benefit recipient membership:
up to 2,000 members, inclusive $2.55 per member
2,001 through 10,000 members $1.13 per member
over 10,000 members $0.11 per member
The amount specified is applicable for the assessment of
the July 1, 1991, to June 30, 1992, fiscal year actuarial
compensation amounts. For the July 1, 1992, to June 30, 1993,
fiscal year and subsequent fiscal year actuarial compensation
amounts, the amount specified must be increased at the same
percentage increase rate as the implicit price deflator for
state and local government purchases of goods and services for
the 12-month period ending with the first quarter of the
calendar year following the completion date for the actuarial
valuation calculations, as published by the federal Department
of Commerce, and rounded upward to the nearest full cent.
(2) The total per-member portion of the allocation must be
determined, and that total per-member amount must be subtracted
from the total amount for allocation. Of the remainder dollar
amount, the following per-retirement system and per-pension plan
charges must be determined and the charges must be paid by the
system or plan:
(i) 37.87 percent is the total additional per-retirement
system charge, of which one-seventh must be paid by each
retirement system specified in subdivision 11, paragraph (b),
clauses (1), (2), (6), (7), (9), (10), and (11).
(ii) 62.13 percent is the total additional per-pension plan
charge, of which one-fourteenth must be paid by each pension
plan specified in subdivision 11, paragraph (b), clauses (1) to
(14) based on each plan's proportion of the actuarial services
required, as determined by the commission's retained actuary, to
complete the actuarial valuation calculations, annual experience
data collection and processing, and quadrennial experience
studies for all plans.
(b) The assessment must be made within 30 days following
the completion of the actuarial valuation calculations and the
experience analysis the end of the fiscal year and must be
reported to the executive director of the legislative commission
on pensions and retirement and to the chief administrative
officers of the applicable retirement plans. The amount of the
assessment is appropriated from the retirement fund applicable
to the retirement plan. Receipts from assessments must
be transmitted to the executive director of the legislative
commission on pensions and retirement and must be deposited in
the state treasury and credited to the general fund.
Sec. 2. Minnesota Statutes 1998, section 16A.055,
subdivision 5, is amended to read:
Subd. 5. [RETIREMENT FUND REPORTING.] (a) The commissioner
may not require a public retirement fund to use financial or
actuarial reporting practices or procedures different from those
required by section 356.20 or 356.215.
(b) The commissioner may contract with the consulting
actuary retained by the legislative commission on pensions and
retirement for the preparation of quadrennial projection
valuations as required under section 356.215, subdivisions 2 and
2a. The initial projection valuation under this paragraph, if
any, is due on May 1, 2003, and subsequent projection valuations
are due on May 1 each fourth year thereafter. The commissioner
of finance shall assess the applicable statewide and major local
retirement plan or plans the cost of the quadrennial projection
valuation.
Sec. 3. Minnesota Statutes 1998, section 356.215,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For the purposes of
sections 3.85 and 356.20 to 356.23, each of the following terms
in the following paragraphs have the meaning given:.
(1) (b) "Actuarial valuation" means a set of calculations
prepared by the actuary retained by the legislative commission
on pensions and retirement if so required under section 3.85, or
otherwise, by an approved actuary, to determine the normal cost
and the accrued actuarial liabilities of a benefit plan,
according to the entry age actuarial cost method and based upon
stated assumptions including, but not limited to rates of
interest, mortality, salary increase, disability, withdrawal,
and retirement and to determine the payment necessary to
amortize over a stated period any unfunded accrued actuarial
liability disclosed as a result of the actuarial valuation of
the benefit plan.
(2) (c) "Approved actuary" means a person who is regularly
engaged in the business of providing actuarial services and who
has at least 15 years of service to major public employee
pension or retirement funds or who is a fellow in the society of
actuaries.
(3) (d) "Entry age actuarial cost method" means an
actuarial cost method under which the actuarial present value of
the projected benefits of each individual currently covered by
the benefit plan and included in the actuarial valuation is
allocated on a level basis over the service of the individual if
the benefit plan is governed by section 69.773 or over the
earnings of the individual if the benefit plan is governed by
any other law between the entry age and the assumed exit age,
with the portion of this actuarial present value which is
allocated to the valuation year to be the normal cost and the
portion of this actuarial present value not provided for at the
valuation date by the actuarial present value of future normal
costs to be the actuarial accrued liability, with aggregation in
the calculation process to be the sum of the calculated result
for each covered individual and with recognition given to any
different benefit formulas which may apply to various periods of
service.
(4) (e) "Experience study" means a report providing
experience data and an actuarial analysis of the adequacy of the
actuarial assumptions on which actuarial valuations are based.
(5) (f) "Current assets" means:
(1) for the July 1, 1999, actuarial valuation, the value of
all assets at cost, including realized capital gains or losses,
plus one-third of any unrealized capital gains or losses.;
(2) for the July 1, 2000, actuarial valuation, the market
value of all assets as of June 30, 2000, reduced by:
(i) 60 percent of the difference between the market value
of all assets as of June 30, 1999, and the actuarial value of
assets used in the July 1, 1999, actuarial valuation, and
(ii) 80 percent of the difference between the actual net
change in the market value of assets between June 30, 1999, and
June 30, 2000, and the computed increase in the market value of
assets between June 30, 1999, and June 30, 2000, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 1999, actuarial valuation;
(3) for the July 1, 2001, actuarial valuation, the market
value of all assets as of June 30, 2001, reduced by:
(i) 30 percent of the difference between the market value
of all assets as of June 30, 1999, and the actuarial value of
assets used in the July 1, 1999, actuarial valuation;
(ii) 60 percent of the difference between the actual net
change in the market value of assets between June 30, 1999, and
June 30, 2000, and the computed increase in the market value of
assets between June 30, 1999, and June 30, 2000, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 1999, actuarial valuation; and
(iii) 80 percent of the difference between the actual net
change in the market value of assets between June 30, 2000, and
June 30, 2001, and the computed increase in the market value of
assets between June 30, 2000, and June 30, 2001, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 2000, actuarial valuation;
(4) for the July 1, 2002, actuarial valuation, the market
value of all assets as of June 30, 2002, reduced by:
(i) ten percent of the difference between the market value
of all assets as of June 30, 1999, and the actuarial value of
assets used in the July 1, 1999, actuarial valuation;
(ii) 40 percent of the difference between the actual net
change in the market value of assets between June 30, 1999, and
June 30, 2000, and the computed increase in the market value of
assets between June 30, 1999, and June 30, 2000, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 1999, actuarial valuation;
(iii) 60 percent of the difference between the actual net
change in the market value of assets between June 30, 2000, and
June 30, 2001, and the computed increase in the market value of
assets between June 30, 2000, and June 30, 2001, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 2000, actuarial valuation; and
(iv) 80 percent of the difference between the actual net
change in the market value of assets between June 30, 2001, and
June 30, 2002, and the computed increase in the market value of
assets between June 30, 2001, and June 30, 2002, if the assets
had increased at the percentage preretirement interest rate
assumption used in the July 1, 2001, actuarial valuation; or
(5) for any actuarial valuation after July 1, 2002, the
market value of all assets as of the preceding June 30, reduced
by:
(i) 20 percent of the difference between the actual net
change in the market value of assets between the June 30 that
occurred three years earlier and the June 30 that occurred four
years earlier and the computed increase in the market value of
assets over that fiscal year period if the assets had increased
at the percentage preretirement interest rate assumption used in
the actuarial valuation for the July 1 that occurred four years
earlier;
(ii) 40 percent of the difference between the actual net
change in the market value of assets between the June 30 that
occurred two years earlier and the June 30 that occurred three
years earlier and the computed increase in the market value of
assets over that fiscal year period if the assets had increased
at the percentage preretirement interest rate assumption used in
the actuarial valuation for the July 1 that occurred three years
earlier;
(iii) 60 percent of the difference between the actual net
change in the market value of assets between the June 30 that
occurred one year earlier and the June 30 that occurred two
years earlier and the computed increase in the market value of
assets over that fiscal year period if the assets had increased
at the percentage preretirement interest rate assumption used in
the actuarial valuation for the July 1 that occurred two years
earlier; and
(iv) 80 percent of the difference between the actual net
change in the market value of assets between the immediately
prior June 30 and the June 30 that occurred one year earlier and
the computed increase in the market value of assets over that
fiscal year period if the assets had increased at the percentage
preretirement interest rate assumption used in the actuarial
valuation for the July 1 that occurred one year earlier.
(6) (g) "Unfunded actuarial accrued liability" means the
total current and expected future benefit obligations, reduced
by the sum of current assets and the present value of future
normal costs.
(7) (h) "Pension benefit obligation" means the actuarial
present value of credited projected benefits, determined as the
actuarial present value of benefits estimated to be payable in
the future as a result of employee service attributing an equal
benefit amount, including the effect of projected salary
increases and any step rate benefit accrual rate differences, to
each year of credited and expected future employee service.
Sec. 4. Minnesota Statutes 1998, 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,:
(1) 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), and quadrennial
experience studies of the retirement plans enumerated in section
3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7),;
and
(2) the commissioner of finance may have prepared by the
actuary retained by the commission, 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), for which it the
commissioner determines that the analysis may be beneficial.
(b) 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) Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] A
quadrennial projection valuation required under paragraph
(a) subdivision 2 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 on behalf of the
commissioner of finance, testing future implications for plan
funding by modifying assumptions and methods currently in
place. The commission-retained actuary shall provide advice to
the commission commissioner 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. 5. Minnesota Statutes 1998, section 356.215,
subdivision 4d, is amended to read:
Subd. 4d. [INTEREST AND SALARY ASSUMPTIONS.] (a) The
actuarial valuation must use the applicable following
preretirement interest assumption and the applicable following
postretirement interest assumption:
preretirement postretirement
interest rate interest rate
plan assumption assumption
general state employees
retirement plan 8.5% 5.0 6.0%
correctional state employees
retirement plan 8.5 5.0 6.0
state patrol retirement plan 8.5 5.0 6.0
legislators retirement plan 8.5 5.0 6.0
elective state officers
retirement plan 8.5 5.0 6.0
judges retirement plan 8.5 5.0 6.0
general public employees
retirement plan 8.5 5.0 6.0
public employees police and fire
retirement plan 8.5 5.0 6.0
local government correctional
service retirement plan 8.5 5.0 6.0
teachers retirement plan 8.5 5.0 6.0
Minneapolis employees
retirement plan 6.0 5.0
Duluth teachers retirement plan 8.5 8.5
Minneapolis teachers retirement
plan 8.5 8.5
St. Paul teachers retirement
plan 8.5 7.5 8.5
Minneapolis police relief
association 6.0 6.0
other local police relief
associations 5.0 5.0
Minneapolis fire department
relief association 6.0 6.0
other local salaried firefighter
relief associations 5.0 5.0
local monthly benefit volunteer
firefighter relief associations 5.0 5.0
(b) The actuarial valuation must use the applicable
following single rate future salary increase assumption or the
applicable following graded rate future salary increase
assumption:
(1) single rate future salary increase assumption
future salary
plan increase assumption
legislators retirement plan 5.0%
elective state officers retirement
plan 5.0
judges retirement plan 5.0
Minneapolis employees retirement plan 4.0
Minneapolis police relief association 4.0
other local police relief associations 3.5
Minneapolis fire department relief
association 4.0
other local salaried firefighter relief
associations 3.5
(2) modified single rate future salary increase assumption
future salary
plan increase assumption
Minneapolis employees prior calendar year amount
retirement plan increased by 1.0198 percent
to prior fiscal year date
and by 4.0 percent annually
for each future year
(3) select and ultimate future salary increase assumption
or graded rate future salary increase assumption
future salary
plan increase assumption
general state employees select calculation and
retirement plan assumption A
correctional state employees
retirement plan assumption A H
state patrol retirement plan assumption A H
general public employees select calculation and
retirement plan assumption B
public employees police and fire
fund retirement plan assumption C
local government correctional service
retirement plan assumption C H
teachers retirement plan assumption D
Duluth teachers retirement plan assumption E
Minneapolis teachers retirement plan assumption F
St. Paul teachers retirement plan assumption G
select calculation:
during the ten-year select period, 0.2 percent is
multiplied by the result of ten minus T, where T is
the number of completed years of service, and is added
to the applicable future salary increase assumption.
future salary increase assumption:
age A B C D E F G H
16 7.2500% 8.71% 11.50% 7.25% 8.00% 7.50% 7.25%
6.95 6.95 8.20 7.7500
17 7.2500 8.71 11.50 7.25 8.00 7.50 7.25
6.90 6.90 8.15 7.7500
18 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
6.85 6.85 8.10 7.7500
19 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
6.80 6.80 8.05 7.7500
20 7.2500 7.70 11.50 7.25 8.00 7.50 7.25
6.75 6.75 8.00 7.7500
21 7.1454 7.70 11.50 7.25 8.00 7.50 7.25
6.70 6.70 7.95 7.1454
22 7.1094 7.70 11.00 7.25 8.00 7.50 7.25
6.65 6.65 7.90 7.0725
24 7.0363 7.70 10.00 7.15 7.80 7.30 7.20
6.66 6.55 7.80 7.0363
25 7.0000 7.60 9.50 7.10 7.70 7.20 7.15
6.50 6.50 7.75 7.0000
26 7.0000 7.51 9.20 7.05 7.60 7.10 7.10
6.45 6.45 7.70 7.0000
27 7.0000 7.39 8.90 7.00 7.50 7.00 7.05
6.40 6.40 7.65 7.0000
28 7.0000 7.30 8.60 7.00 7.40 6.90 7.00
6.35 6.35 7.60 7.0000
29 7.0000 7.20 8.30 7.00 7.30 6.80 6.95
6.30 6.30 7.55 7.0000
30 7.0000 7.20 8.00 7.00 7.20 6.70 6.90
6.25 6.30 7.50 7.0000
31 7.0000 7.10 7.80 7.00 7.10 6.60 6.85
6.20 6.25 7.45 7.0000
32 7.0000 7.10 7.60 7.00 7.00 6.50 6.80
6.15 6.21 7.40 7.0000
33 7.0000 7.00 7.40 7.00 6.90 6.40 6.75
6.10 6.17 7.30 7.0000
34 7.0000 7.00 7.20 7.00 6.80 6.30 6.70
6.05 6.09 7.10 7.0000
35 7.0000 6.90 7.00 7.00 6.70 6.20 6.65
6.00 6.05 7.0000
36 6.9019 6.80 6.80 7.00 6.60 6.10 6.60
6.95 6.01 6.85 6.9019
37 6.8074 6.70 6.60 7.00 6.50 6.00 6.55
5.90 5.97 6.70 6.8074
38 6.7125 6.60 6.40 6.90 6.40 5.90 6.50
5.85 5.93 6.55 6.7125
39 6.6054 6.50 6.20 6.80 6.30 5.80 6.40
5.80 5.89 6.40 6.6054
40 6.5000 6.40 6.00 6.70 6.20 5.70 6.30
5.75 5.85 6.25 6.5000
41 6.3540 6.30 5.90 6.60 6.10 5.60 6.20
5.70 5.81 6.10 6.3540
42 6.2087 6.30 5.80 6.50 6.00 5.50 6.10
5.65 5.77 5.95 6.2087
43 6.0622 6.30 5.70 6.35 5.90 5.45 6.00
5.60 5.73 5.80 6.0622
44 5.9048 6.20 5.60 6.20 5.80 5.40 5.90
5.55 5.69 5.65 5.9048
45 5.7500 6.20 5.50 6.05 5.70 5.35 5.80
5.50 5.65 5.50 5.7500
46 5.6940 6.09 5.45 5.90 5.60 5.30 5.70
5.45 5.62 5.45 5.6940
47 5.6375 6.00 5.40 5.75 5.50 5.25 5.65
5.40 5.59 5.40 5.6375
48 5.5822 5.90 5.35 5.70 5.45 5.20 5.60
5.35 5.56 5.35 5.5822
49 5.5405 5.80 5.30 5.65 5.40 5.15 5.55
5.30 5.53 5.30 5.5404
50 5.5000 5.70 5.25 5.60 5.35 5.10 5.50
5.25 5.50 5.25 5.5000
51 5.4384 5.70 5.25 5.55 5.30 5.05 5.45
5.20 5.45 5.20 5.4384
52 5.3776 5.70 5.25 5.50 5.25 5.00 5.40
5.15 5.40 5.15 5.3776
53 5.3167 5.70 5.25 5.45 5.25 5.00 5.35
5.10 5.35 5.10 5.3167
54 5.2826 5.70 5.25 5.40 5.25 5.00 5.30
5.05 5.30 5.05 5.2826
55 5.2500 5.70 5.25 5.35 5.25 5.00 5.25
5.00 5.25 5.00 5.2500
56 5.2500 5.70 5.25 5.30 5.25 5.00 5.25
5.00 5.20 5.00 5.2500
57 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
5.00 5.15 5.00 5.2500
58 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
5.00 5.10 5.00 5.2500
59 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
5.00 5.05 5.00 5.2500
60 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
61 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
62 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
63 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
64 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
65 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
66 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
67 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
68 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
69 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
70 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
5.00 5.00 5.2500
71 5.00 5.00 5.00
(c) The actuarial valuation must use the applicable
following payroll growth assumption for calculating the
amortization requirement for the unfunded actuarial accrued
liability where the amortization retirement is calculated as a
level percentage of an increasing payroll:
payroll growth
plan assumption
general state employees retirement plan 5.00%
correctional state employees retirement plan 5.00
state patrol retirement plan 5.00
legislators retirement plan 5.00
elective state officers retirement plan 5.00
judges retirement plan 5.00
general public employees retirement plan 6.00
public employees police and fire
retirement plan 6.00
local government correctional service
retirement plan 6.00
teachers retirement plan 5.00
Duluth teachers retirement plan 5.00
Minneapolis teachers retirement plan 5.00
St. Paul teachers retirement plan 5.00
Sec. 6. Minnesota Statutes 1999 Supplement, section
356.215, subdivision 4g, is amended to read:
Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to
the exhibit indicating the level normal cost, the actuarial
valuation must contain an exhibit indicating the additional
annual contribution sufficient to amortize the unfunded
actuarial accrued liability. For funds governed by chapters 3A,
352, 352B, 352C, 353, 354, 354A, and 490, the additional
contribution must be calculated on a level percentage of covered
payroll basis by the established date for full funding in effect
when the valuation is prepared. For funds governed by chapter
3A, sections 352.90 through 352.951, chapters 352B, 352C,
sections 353.63 through 353.68, and chapters 353C, 354A, and
490, the level percent additional contribution must be
calculated assuming annual payroll growth of 6.5 percent. For
funds governed by sections 352.01 through 352.86 and chapter
354, the level percent additional contribution must be
calculated assuming an annual payroll growth of five percent.
For the fund governed by sections 353.01 through 353.46, the
level percent additional contribution must be calculated
assuming an annual payroll growth of six percent. For all other
funds, the additional annual contribution must be calculated on
a level annual dollar amount basis.
(b) For any fund other than the Minneapolis employees
retirement fund, after the first actuarial valuation date
occurring after June 1, 1989, if there has not been a change in
the actuarial assumptions used for calculating the actuarial
accrued liability of the fund, a change in the benefit plan
governing annuities and benefits payable from the fund, a change
in the actuarial cost method used in calculating the actuarial
accrued liability of all or a portion of the fund, or a
combination of the three, which change or changes by themselves
without inclusion of any other items of increase or decrease
produce a net increase in the unfunded actuarial accrued
liability of the fund, the established date for full funding for
the first actuarial valuation made after June 1, 1989, and each
successive actuarial valuation is the first actuarial valuation
date occurring after June 1, 2020.
(c) For any fund or plan other than the Minneapolis
employees retirement fund, after the first actuarial valuation
date occurring after June 1, 1989, if there has been a change in
any or all of the actuarial assumptions used for calculating the
actuarial accrued liability of the fund, a change in the benefit
plan governing annuities and benefits payable from the fund, a
change in the actuarial cost method used in calculating the
actuarial accrued liability of all or a portion of the fund, or
a combination of the three, and the change or changes, by
themselves and without inclusion of any other items of increase
or decrease, produce a net increase in the unfunded actuarial
accrued liability in the fund, the established date for full
funding must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the fund
must be determined in accordance with the plan provisions
governing annuities and retirement benefits and the actuarial
assumptions in effect before an applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the
unfunded actuarial accrued liability amount determined under
item (i) by the established date for full funding in effect
before the change must be calculated using the interest
assumption specified in subdivision 4d in effect before the
change;
(iii) the unfunded actuarial accrued liability of the fund
must be determined in accordance with any new plan provisions
governing annuities and benefits payable from the fund and any
new actuarial assumptions and the remaining plan provisions
governing annuities and benefits payable from the fund and
actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the
difference between the unfunded actuarial accrued liability
amount calculated under item (i) and the unfunded actuarial
accrued liability amount calculated under item (iii) over a
period of 30 years from the end of the plan year in which the
applicable change is effective must be calculated using the
applicable interest assumption specified in subdivision 4d in
effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item (iv) must be added to the
level annual dollar amortization contribution or level
percentage calculated under item (ii);
(vi) the period in which the unfunded actuarial accrued
liability amount determined in item (iii) is amortized by the
total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using
the interest assumption specified in subdivision 4d in effect
after any applicable change, rounded to the nearest integral
number of years, but not to exceed 30 years from the end of the
plan year in which the determination of the established date for
full funding using the procedure set forth in this clause is
made and not to be less than the period of years beginning in
the plan year in which the determination of the established date
for full funding using the procedure set forth in this clause is
made and ending by the date for full funding in effect before
the change; and
(vii) the period determined under item (vi) must be added
to the date as of which the actuarial valuation was prepared and
the date obtained is the new established date for full funding.
(d) For the Minneapolis employees retirement fund, the
established date for full funding is June 30, 2020.
(e) For the following retirement plans for which the annual
actuarial valuation indicates an excess of valuation assets over
the actuarial accrued liability, the valuation assets in excess
of the actuarial accrued liability must be recognized in the
following manner:
(1) the public employees retirement association police and
fire plan, the valuation assets in excess of the actuarial
accrued liability serve to reduce as a reduction in the current
contribution requirements by an amount equal to the amortization
of the excess expressed as a level percentage of pay over a
30-year period beginning anew with each annual actuarial
valuation of the plan; and
(2) the correctional employees retirement plan of the
Minnesota state retirement system, and the state patrol
retirement plan, an excess of valuation assets over actuarial
accrued liability must be amortized in the same manner over the
same period as an unfunded actuarial accrued liability but must
serve to reduce the required contribution instead of increasing
it.
Sec. 7. [EFFECTIVE DATE.]
(a) Section 1 is effective for actuarial valuation costs
incurred on or after July 1, 2000.
(b) Sections 2 to 6 are effective on June 30, 2000, for
actuarial valuations on or after that date.
ARTICLE 2
REEMPLOYED ANNUITANT EARNINGS LIMITATION
REVISIONS
Section 1. Minnesota Statutes 1999 Supplement, 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 Minnesota state colleges and
universities system 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 faculty member or as an unclassified
administrator in the Minnesota state colleges and universities
system;
(3) begins drawing a retirement benefit from the individual
retirement account plan or an annuity from the teachers
retirement association, from the general state employees
retirement plan or the unclassified state employees retirement
program of the Minnesota state retirement system, or from a
first class city teacher retirement 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 president of the institution where
the person returns to work and the employee. The president may
require up to one-year notice of intent to participate in the
program as a condition of participation under this section. The
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. 2. Minnesota Statutes 1998, section 352.115,
subdivision 10, is amended to read:
Subd. 10. [REEMPLOYMENT OF ANNUITANT.] (a) If any retired
employee again becomes entitled to receive salary or wages from
the state, or any employer who employs state employees as that
term is defined in section 352.01, subdivision 2, other than
salary or wages received as a temporary employee of the
legislature during a legislative session, the annuity or
retirement allowance shall cease when the retired employee has
earned an amount equal to the annual maximum earnings allowable
for that age for the continued receipt of full benefit amounts
monthly under the federal old age, survivors, and disability
insurance program as set by the secretary of health and human
services under United States Code, title 42, section 403, in any
calendar year. If the retired employee has not yet reached the
minimum age for the receipt of social security benefits, the
maximum earnings for the retired employee shall be equal to the
annual maximum earnings allowable for the minimum age for the
receipt of social security benefits.
(b) The balance of the annual retirement annuity after
cessation must be handled or disposed of as provided in section
356.58.
(c) The annuity must be resumed when state service ends,
or, if the retired employee is still employed at the beginning
of the next calendar year, at the beginning of that calendar
year, and payment must again end when the retired employee has
earned the applicable reemployment earnings maximum specified in
this subdivision. No payroll deductions for the retirement fund
shall be made from the earnings of a reemployed retired
employee. If the retired employee is granted a sick leave
without pay, but not otherwise, the annuity or retirement
allowance must be resumed during the period of sick leave.
(d) No payroll deductions for the retirement fund may be
made from the earnings of a reemployed retired employee.
(e) No change shall be made in the monthly amount of an
annuity or retirement allowance because of the reemployment of
an annuitant.
Sec. 3. Minnesota Statutes 1999 Supplement, section
352.1155, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY.] Except as indicated in
subdivision 4, the annuity reduction provisions of section
352.115, subdivision 10, do not apply to a person who:
(1) retires from the Minnesota state colleges and
universities system 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 faculty member or as an unclassified
administrator in that system;
(3) begins drawing an annuity from the general state
employees retirement plan of the Minnesota state retirement
system; 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 $46,000 in a calendar
year from employment after retirement in the system from which
the person retired.
Sec. 4. Minnesota Statutes 1999 Supplement, section
352.1155, subdivision 4, is amended to read:
Subd. 4. [EXEMPTION LIMIT.] For a person eligible under
this section who earns more than $35,000 $46,000 in a calendar
year from reemployment in the Minnesota state colleges and
universities system following retirement, the annuity reduction
provisions of section 352.115, subdivision 10, apply only to
income over $35,000 $46,000.
Sec. 5. Minnesota Statutes 1998, section 353.37, is
amended by adding a subdivision to read:
Subd. 3a. [DISPOSITION OF SUSPENSION OR REDUCTION AMOUNT.]
The balance of the annual retirement annuity after suspension or
the amount of the retirement annuity reduction must be handled
or disposed of as provided in section 356.58.
Sec. 6. Minnesota Statutes 1998, section 354.44,
subdivision 5, is amended to read:
Subd. 5. [RESUMPTION OF TEACHING SERVICE AFTER
RETIREMENT.] (a) Any person who retired under the provisions of
this chapter and has thereafter resumed teaching in any employer
unit to which this chapter applies is eligible to continue to
receive payments in accordance with the annuity except that
annuity payments must be reduced during the calendar year
immediately following any calendar year in which the person's
income from the teaching service is in an amount greater than
the annual maximum earnings allowable for that age for the
continued receipt of full benefit amounts monthly under the
federal old age, survivors and disability insurance program as
set by the secretary of health and human services under United
States Code, title 42, section 403. The amount of the reduction
must be one-half of the amount in excess of the applicable
reemployment income maximum specified in this subdivision and
must be deducted from the annuity payable for the calendar year
immediately following the calendar year in which the excess
amount was earned. If the person has not yet reached the
minimum age for the receipt of social security benefits, the
maximum earnings for the person must be equal to the annual
maximum earnings allowable for the minimum age for the receipt
of social security benefits.
(b) If the person is retired for only a fractional part of
the calendar year during the initial year of retirement, the
maximum reemployment income specified in this subdivision must
be prorated for that calendar year.
(c) After a person has reached the age of 70, no
reemployment income maximum is applicable regardless of the
amount of income.
(d) The amount of the retirement annuity reduction must be
handled or disposed of as provided in section 356.58.
(e) For the purpose of this subdivision, income from
teaching service includes, but is not limited to:
(a) (1) all income for services performed as a consultant
or an independent contractor for an employer unit covered by the
provisions of this chapter; and
(b) (2) the greater of either the income received or an
amount based on the rate paid with respect to an administrative
position, consultant, or independent contractor in an employer
unit with approximately the same number of pupils and at the
same level as the position occupied by the person who resumes
teaching service.
Sec. 7. Minnesota Statutes 1999 Supplement, 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 Minnesota state colleges and
universities system 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 faculty member or as an unclassified
administrator in that system;
(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 $46,000 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 president of the institution where
the person returns to work and the employee. The president may
require up to one-year notice of intent to participate in the
program as a condition of participation under this section. The
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, based on
employment to which the waiver in this section applies, earn
further service credit in a Minnesota public defined benefit
plan and is not eligible to participate in a Minnesota public
defined contribution plan, other than a volunteer fire plan
governed by chapter 424A. 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 $46,000 in a calendar year from
employment after retirement due to employment by the Minnesota
state colleges and universities system, the annuity reduction
provisions of section 354.44, subdivision 5, apply only to
income over $35,000 $46,000.
(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. 8. Minnesota Statutes 1998, section 354A.31,
subdivision 3, is amended to read:
Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A
RETIREMENT ANNUITY.] (a) Any person who retired and is receiving
a coordinated program retirement annuity under the provisions of
sections 354A.31 to 354A.41 or any person receiving a basic
program retirement annuity under the governing sections in the
articles of incorporation or bylaws and who has resumed teaching
service for the school district in which the teachers retirement
fund association exists is entitled to continue to receive
retirement annuity payments, except that annuity payments must
be reduced during the calendar year immediately following the
calendar year in which the person's income from the teaching
service is in an amount greater than the annual maximum earnings
allowable for that age for the continued receipt of full benefit
amounts monthly under the federal old age, survivors, and
disability insurance program as set by the secretary of health
and human services under United States Code, title 42, section
403. The amount of the reduction must be one-third the amount
in excess of the applicable reemployment income maximum
specified in this subdivision and must be deducted from the
annuity payable for the calendar year immediately following the
calendar year in which the excess amount was earned. If the
person has not yet reached the minimum age for the receipt of
social security benefits, the maximum earnings for the person
must be equal to the annual maximum earnings allowable for the
minimum age for the receipt of social security benefits.
(b) If the person is retired for only a fractional part of
the calendar year during the initial year of retirement, the
maximum reemployment income specified in this subdivision must
be prorated for that calendar year.
(c) After a person has reached the age of 70, no
reemployment income maximum is applicable regardless of the
amount of any compensation received for teaching service for the
school district in which the teachers retirement fund
association exists.
(d) The amount of the retirement annuity reduction must be
handled or disposed of as provided in section 356.58.
(e) For the purpose of this subdivision, income from
teaching service includes: (i) all income for services
performed as a consultant or independent contractor; or income
resulting from working with the school district in any capacity;
and (ii) the greater of either the income received or an amount
based on the rate paid with respect to an administrative
position, consultant, or independent contractor in the school
district in which the teachers retirement fund association
exists and at the same level as the position occupied by the
person who resumes teaching service.
Sec. 9. Minnesota Statutes 1998, section 354A.31,
subdivision 3a, is amended to read:
Subd. 3a. [NO ANNUITY REDUCTION.] (a) The annuity
reduction provisions of subdivision 3 do not apply to a person
who:
(1) retires from the technical college system with at least
ten years of service credit in the system from which the person
retires;
(2) was employed on a full-time basis immediately preceding
retirement as a technical college faculty member;
(3) begins drawing an annuity from a first class city
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 technical
college system under an agreement in which the person may not
earn a salary of more than $35,000 $46,000 in a calendar year
from the technical college system.
(b) Initial participation, the amount of time worked, and
the duration of participation under this section must be
mutually agreed upon by the employer and the employee. The
employer may require up to a one-year notice of intent to
participate in the program as a condition of participation under
this section. The employer shall determine the time of year the
employee shall work.
(c) Notwithstanding any law to the contrary, a person
eligible under paragraphs (a) and (b) may not earn further
service credit in a first class city teachers retirement
association and is not eligible to participate in the individual
retirement account plan or the supplemental retirement plan
established in chapter 354B as a result of service under this
section. No employer or employee contribution to any of these
plans may be made on behalf of such a person.
Sec. 10. [356.58] [DISPOSITION OF AMOUNT IN EXCESS OF
REEMPLOYED ANNUITANT EARNINGS LIMITATIONS.]
Subdivision 1. [APPLICATION.] This section applies to the
balance of annual retirement annuities on the amount of
retirement annuity reductions after reemployed annuitant
earnings limitations for retirement plans governed by sections
352.115, subdivision 10; 353.37; 354.44, subdivision 5; or
354A.31, subdivision 3.
Subd. 2. [RECORDKEEPING; REPORTING.] The chief
administrative officer of each retirement plan shall keep
records for each reemployed annuitant of the amount of the
annuity reduction. This amount must be reported to each member
at least once each year.
Subd. 3. [PAYMENT.] (a) Upon the retired member attaining
the age of 65 years or upon the first day of the month next
following the month occurring one year after the termination of
the reemployment that gave rise to the limitation, whichever is
later, and the filing of a written application, the retired
member is entitled the payment, in a lump sum, of the value of
the person's amount under subdivision 2, plus interest at the
compound annual rate of six percent from the date that the
amount was deducted from the retirement annuity to the date of
payment.
(b) The written application must be on a form prescribed by
the chief administrative officer of the applicable retirement
plan.
(c) If the retired member dies before the payment provided
for in paragraph (a) is made, the amount is payable, upon
written application, to the deceased person's surviving spouse,
or if none, to the deceased person's designated beneficiary, or
if none, to the deceased person's estate.
Sec. 11. [REPORT.]
The Minnesota state colleges and universities board shall
report to the legislative commission on pensions and retirement
by November 15, 2000, on the utilization of the annuitant
employment program authorized by Minnesota Statutes, sections
136F.48; 352.1155, subdivisions 1 and 4; and 354.445. The
report must include an evaluation by institutions that have used
the program regarding its effectiveness as a human resource
management tool.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective on July 1, 2000.
ARTICLE 3
ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 1998, section 352.15,
subdivision 1a, is amended to read:
Subd. 1a. [AUTOMATIC DEPOSITS.] The executive director may
pay an remit, through an automatic deposit system, annuity,
benefit, or refund payments only to a banking financial
institution, qualified under chapter 48, associated with the
National Automated Clearinghouse Association or a comparable
successor organization that is trustee for a person eligible to
receive the annuity, benefit, or refund. Upon the request of a
retired, disabled, the retiree, disabilitant, survivor, or
former employee, the executive director may mail remit the
annuity, benefit, or refund check to a banking institution,
savings association, or credit union the applicable financial
institution for deposit to in the employee's person's account
or joint account. The board of directors may prescribe the
conditions under which payments will be made.
Sec. 2. Minnesota Statutes 1998, section 352B.01,
subdivision 3, is amended to read:
Subd. 3. [ALLOWABLE SERVICES SERVICE.] (a) "Allowable
service" means:
(a) (1) for members defined in subdivision 2, clause (a),
monthly service is granted for any month for which payments have
been made to the state patrol retirement fund, and
(b) (2) for members defined in subdivision 2, clauses (b)
and (c), service for which payments have been made to the state
patrol retirement fund, service for which payments were made to
the state police officers retirement fund after June 30, 1961,
and all prior service which was credited to a member for service
on or before June 30, 1961.
(b) Allowable service also includes any period of absence
from duty by a member who, by reason of injury incurred in the
performance of duty, is temporarily disabled and for which
disability the state is liable under the workers' compensation
law, until the date authorized by the executive director for
commencement of payment of a disability benefit or return to
employment.
Sec. 3. Minnesota Statutes 1998, section 352D.02,
subdivision 1, is amended to read:
Subdivision 1. [COVERAGE.] (a) Employees enumerated in
paragraph (c), clauses (2), (3), (4), and (6) to (15), if they
are in the unclassified service of the state or metropolitan
council and are eligible for coverage under the general state
employees retirement plan under chapter 352, are participants in
the unclassified program plan under this chapter unless the
employee gives notice to the executive director of the Minnesota
state retirement system within one year following the
commencement of employment in the unclassified service that the
employee desires coverage under the general state employees
retirement plan. For the purposes of this chapter, an employee
who does not file notice with the executive director is deemed
to have exercised the option to participate in the unclassified
plan.
(b) Persons referenced in paragraph (c), clauses (1) and
(5), are participants in the unclassified program under this
chapter unless the person is eligible to elect different
coverage under section 3A.07 or 352C.011 and, after July 1,
1998, elects retirement coverage by the applicable alternative
retirement plan.
(c) Enumerated employees and referenced persons are:
(1) the governor, the lieutenant governor, the secretary of
state, the state auditor, the state treasurer, and the attorney
general;
(2) an employee in the office of the governor, lieutenant
governor, secretary of state, state auditor, state treasurer,
attorney general;
(3) an employee of the state board of investment;
(4) the head of a department, division, or agency created
by statute in the unclassified service, an acting department
head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;
(5) a member of the legislature;
(6) a permanent, full-time unclassified employee of the
legislature or a commission or agency of the legislature or a
temporary legislative employee having shares in the supplemental
retirement fund as a result of former employment covered by this
chapter, whether or not eligible for coverage under the
Minnesota state retirement system;
(7) a person who is employed in a position established
under section 43A.08, subdivision 1, clause (3), or in a
position authorized under a statute creating or establishing a
department or agency of the state, which is at the deputy or
assistant head of department or agency or director level;
(8) the regional administrator, or executive director of
the metropolitan council, general counsel, division directors,
operations managers, and other positions as designated by the
council, all of which may not exceed 27 positions at the council
and the chair, provided that upon initial designation of all
positions provided for in this clause, no further designations
or redesignations may be made without approval of the board of
directors of the Minnesota state retirement system;
(9) the executive director, associate executive director,
and not to exceed nine positions of the higher education
services office in the unclassified service, as designated by
the higher education services office before January 1, 1992, or
subsequently redesignated with the approval of the board of
directors of the Minnesota state retirement system, unless the
person has elected coverage by the individual retirement account
plan under chapter 354B;
(10) the clerk of the appellate courts appointed under
article VI, section 2, of the Constitution of the state of
Minnesota;
(11) the chief executive officers of correctional
facilities operated by the department of corrections and of
hospitals and nursing homes operated by the department of human
services;
(12) an employee whose principal employment is at the state
ceremonial house;
(13) an employee of the Minnesota educational computing
corporation;
(14) an employee of the world trade center board; and
(15) an employee of the state lottery board who is covered
by the managerial plan established under section 43A.18,
subdivision 3.
Sec. 4. Minnesota Statutes 1998, section 352D.05,
subdivision 3, is amended to read:
Subd. 3. [FULL OR PARTIAL WITHDRAWAL.] After termination
of covered employment or at any time thereafter, a participant
is entitled, upon application, to withdraw the cash value of the
participant's total shares or leave such shares on deposit with
the supplemental retirement fund. The account is valued at the
end of the month in which application for withdrawal is made.
Shares not withdrawn remain on deposit with the supplemental
retirement fund until the former participant becomes at least 55
years old, and applies for an annuity under section 352D.06,
subdivision 1.
Sec. 5. Minnesota Statutes 1998, section 352D.06, is
amended to read:
352D.06 [ANNUITIES.]
Subdivision 1. [ANNUITY; RESERVES.] When a participant
attains at least age 55, is retired terminates from covered
service, and applies for a retirement annuity, the cash value of
the participant's shares shall be transferred to the Minnesota
postretirement investment fund and used to provide an annuity
for the retired employee based upon the participant's age when
the benefit begins to accrue according to the reserve basis used
by the general state employees retirement fund plan in
determining pensions and reserves.
Subd. 2. [PARTIAL VALUE ANNUITY.] A participant has the
option in an application for an annuity to apply for and receive
the a partial value of one-half of the total shares and
thereafter receive an annuity, as provided in subdivision 1,
based on the remaining value of one-half of the total shares.
Subd. 3. [ACCRUAL DATE.] An annuity herein shall begin to
accrue under this section accrues the first day of the first
full month after an application is received or after termination
of state service, whichever is later. Upon the former
employee's request, the annuity may begin to accrue up to six
months before redemption of shares, but not prior to the
termination date from covered service, and must be based on the
account value at redemption and upon the age of the former
employee at the date annuity accrual starts. The account must
be valued and redeemed on the later of the end of the month of
termination of covered employment, or the end of the month of
receipt of the annuity application for the purpose of computing
the annuity.
Sec. 6. Minnesota Statutes 1998, section 352D.09,
subdivision 5a, is amended to read:
Subd. 5a. [SMALL BALANCE ACCOUNTS.] If a former
participant who contributed less than $100 $500 in employee
contributions cannot be contacted by the system for five or more
years, the value of the shares shall be appropriated to the
general employees retirement fund, but upon subsequent contact
by the former employee the account shall be reinstated to the
amount that would have been payable had the money been left in
the unclassified plan.
Sec. 7. Minnesota Statutes 1998, section 353.01,
subdivision 2, is amended to read:
Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an
employee performing personal services for a governmental
subdivision under subdivision 6, whose salary is paid, in whole
or in part, from revenue derived from taxation, fees,
assessments, or from other sources. The term also includes
special classes of persons listed in subdivision 2a, but
excludes special classes of persons listed in subdivision 2b for
purposes of membership in the association. Public employee does
not include independent contractors and their employees. A
reemployed annuitant under section 353.37 must not be considered
to be a public employee for purposes of that reemployment.
Sec. 8. Minnesota Statutes 1998, section 353.01,
subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources.
(b) Governmental subdivision also means the public
employees retirement association, the league of Minnesota
cities, the association of metropolitan municipalities, public
hospitals owned or operated by, or an integral part of, a
governmental subdivision or governmental subdivisions, the
association of Minnesota counties, the metropolitan intercounty
association, the Minnesota municipal utilities association, the
metropolitan airports commission, and the Minneapolis employees
retirement fund for employment initially commenced after June
30, 1979, the range association of municipalities and schools,
soil and water conservation districts, and economic development
authorities created or operating under sections 469.090 to
469.108.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the
provisions of sections 469.001 to 469.047; or any port authority
organized under sections 469.048 to 469.068 469.089; or any
hospital district organized or reorganized prior to July 1,
1975, under sections 447.31 to 447.37 or the successor of the
district, nor the Minneapolis community development agency.
Sec. 9. Minnesota Statutes 1999 Supplement, section
353.01, subdivision 10, is amended to read:
Subd. 10. [SALARY.] (a) "Salary" means:
(1) periodic compensation of a public employee, before
deductions for deferred compensation, supplemental retirement
plans, or other voluntary salary reduction programs, and also
means "wages" and includes net income from fees; and
(2) for a public employee who has prior service covered by
a local police or firefighters' relief association that has
consolidated with the public employees retirement association or
to which section 353.665 applies and who has elected coverage
either under the public employees police and fire fund benefit
plan under section 353A.08 following the consolidation or under
section 353.665, subdivision 4, "salary" means the rate of
salary upon which member contributions to the special fund of
the relief association were made prior to the effective date of
the consolidation as specified by law and by bylaw provisions
governing the relief association on the date of the initiation
of the consolidation procedure and the actual periodic
compensation of the public employee after the effective date of
consolidation.
(b) Salary does not mean:
(1) fees paid to district court reporters, unused
annual vacation or sick leave payments, in lump-sum or periodic
payments, severance payments, reimbursement of expenses,
lump-sum settlements not attached to a specific earnings period,
or workers' compensation payments;
(2) employer-paid amounts used by an employee toward the
cost of insurance coverage, employer-paid fringe benefits,
flexible spending accounts, cafeteria plans, health care expense
accounts, day care expenses, or any payments in lieu of any
employer-paid group insurance coverage, including the difference
between single and family rates that may be paid to a member
with single coverage and certain amounts determined by the
executive director to be ineligible;
(3) the amount equal to that which the employing
governmental subdivision would otherwise pay toward single or
family insurance coverage for a covered employee when, through a
contract or agreement with some but not all employees, the
employer:
(i) discontinues, or for new hires does not provide,
payment toward the cost of the employee's selected insurance
coverages under a group plan offered by the employer;
(ii) makes the employee solely responsible for all
contributions toward the cost of the employee's selected
insurance coverages under a group plan offered by the employer,
including any amount the employer makes toward other employees'
selected insurance coverages under a group plan offered by the
employer; and
(iii) provides increased salary rates for employees who do
not have any employer-paid group insurance coverages; and
(4) except as provided in section 353.86 or 353.87,
compensation of any kind paid to volunteer ambulance service
personnel or volunteer firefighters, as defined in subdivisions
subdivision 35 and or 36.
Sec. 10. Minnesota Statutes 1998, section 353.01,
subdivision 11a, is amended to read:
Subd. 11a. [TERMINATION OF PUBLIC SERVICE.]
(a) "Termination of public service" occurs when a member resigns
or is dismissed from public service by the employing
governmental subdivision, as evidenced by appropriate written
record transmitted to the association, or when a position ends
and the member who held the position is not considered by the
governmental subdivision to be on a temporary layoff, and the
employee does not, within 30 days of resignation or dismissal
the date the employment relationship ended, return to a
nontemporary an employment position in the same governmental
subdivision.
(b) The termination of public service must be recorded in
the association records upon receipt of an appropriate notice
from the governmental subdivision.
Sec. 11. Minnesota Statutes 1998, section 353.01,
subdivision 28, is amended to read:
Subd. 28. [RETIREMENT.] (a) "Retirement" means the
commencement of payment of an annuity based on a date designated
by the board of trustees. This date determines the rights under
this chapter which occur either before or after retirement. A
right to retirement is subject to termination of public service
under subdivision 11a or termination of membership under
subdivision 11b, the earlier of which will determine the date
membership and coverage cease. A right to retirement must not
accrue without requires a complete and continuous separation for
30 days from employment as a public employee under subdivision 2
and from the provision of paid services to that employer.
(b) An individual who separates from employment as a public
employee and who, within 30 days of separation, returns to
provide service to a governmental subdivision as an independent
contractor or as an employee of an independent contractor, has
not satisfied separation requirements under paragraph (a).
(c) A former member of the basic or police and fire fund
who becomes a coordinated member upon returning to eligible,
nontemporary public service, terminates employment before
obtaining six months' allowable service under subdivision 16,
paragraph (a), in the coordinated fund, and is eligible to
receive an annuity the first day of the month after the most
recent termination date shall not accrue a right to a retirement
annuity under the coordinated fund. An annuity otherwise
payable to the former member must be based on the laws in effect
on the date of termination of the most recent service under the
basic or police and fire fund and shall be retroactive to the
first day of the month following that termination date or one
year preceding the filing of an application for retirement
annuity as provided by section 353.29, subdivision 7, whichever
is later. The annuity payment must be suspended or reduced
under the provisions of section 353.37, if earned compensation
for the reemployment equals or exceeds the amounts indicated
under that section. The association will refund the employee
deductions made to the coordinated fund, with interest under
section 353.34, subdivision 2, return the accompanying employer
contributions, and remove the allowable service credits covering
the deductions refunded.
(b) (d) Notwithstanding the 30-day separation requirement
under paragraph (a), a member of the defined benefit plan under
this chapter, who also participates in the public employees
defined contribution plan under chapter 353D for other public
service, may be paid, if eligible, a retirement annuity from the
defined benefit plan while participating in the defined
contribution plan.
Sec. 12. Minnesota Statutes 1998, section 353.01,
subdivision 32, is amended to read:
Subd. 32. [COORDINATED MEMBER.] "Coordinated member" means
any public employee, including any public hospital employee,
covered by any agreement or modification made between the state
and the Secretary of Health, Education and Welfare, making the
provisions of the federal Old Age, Survivors and Disability
Insurance Act applicable to the member if membership eligibility
criteria are met under this chapter. A coordinated member also
means is a former basic member who terminates public service
under subdivision 11a, has a complete and continuous separation
for at least 30 days from employment as a public employee
meeting the requirements specified in subdivision 28, paragraphs
(a) and (b), and who reenters public service in a nontemporary
position, as a public employee and meets the membership
eligibility criteria under this chapter.
Sec. 13. Minnesota Statutes 1998, section 353.15,
subdivision 2, is amended to read:
Subd. 2. [AUTOMATIC DEPOSITS.] The association may pay an
remit, through an automatic deposit system, annuity, benefit, or
refund payments only to a trust company, qualified under chapter
48, financial institution associated with the National Automated
Clearinghouse Association or a comparable successor organization
that is the trustee for a person eligible to receive such the
annuity, benefit, or refund. Upon the request of a retired,
disabled the retiree, disabilitant, survivor, or former member,
the association may mail or send by electronic transfer the
annuity, benefit or refund check to a banking institution,
savings association or credit union the applicable financial
institution for deposit to such in the person's account or joint
account with a spouse. The association may prescribe the
conditions under which such payment will be made.
Sec. 14. Minnesota Statutes 1998, section 353.27,
subdivision 4, is amended to read:
Subd. 4. [EMPLOYERS EMPLOYER REPORTING REQUIREMENTS;
CONTRIBUTIONS; MEMBER STATUS.] (a) A representative authorized
by the head of each department shall deduct employee
contributions from the salary of each member employee who
qualifies for membership under this chapter and issue or approve
one warrant remit payment in a manner prescribed by the
executive director for the aggregate amount of the employee
contributions, the employer contributions and the additional
employer contributions to be received within 20 14 calendar days
in the office of the association. The head of each
department or the person's designee shall, for each pay period
in which employee contributions are deducted, submit to the
association a salary deduction report, in the form format
prescribed by the executive director, showing. Data to be
submitted as part of salary deduction reporting must include,
but are not limited to:
(a) (1) the legal names and the association membership
numbers, listed in alphabetical order, social security numbers
of employees who are members;
(b) (2) the legal names of all new public employees and the
effective dates of appointment; (c) the amount of each
employee's salary deduction; (d)
(3) the amount of salary from which each deduction was
made; (e) effective dates of member terminations of public
service accompanied by the applicable status code as set by the
association for those terminations caused by death or
retirement; (f) effective dates of all temporary layoffs and
leaves of absence accompanied by the applicable status code as
set by the association; and (g)
(4) the beginning and ending dates of the payroll period
covered and the date of actual payment; and
(5) adjustments or corrections covering past pay periods.
Reports of contributions must be accompanied by a
membership enrollment form
(b) Employers must furnish the data required for enrollment
for each new employee who qualifies for membership in the form
format prescribed by the executive director. The required
enrollment forms from data on new employees must be collected by
the employer and submitted to the association within 30 days
following the date of employment prior to or concurrent with the
submission of the initial employee salary deduction. The
employer shall also report to the association all member
employment status changes, such as leaves of absence,
terminations, and death, and the effective dates of those
changes, on an ongoing basis for the payroll cycle in which they
occur. The employer shall furnish such additional data, forms,
and reports on magnetic media on other forms as may be requested
required by the executive director for proper administration of
the retirement system. Before implementing new or different
computerized reporting requirements, the executive director
shall give appropriate advance notice to governmental
subdivisions to allow time for system modifications.
(b) (c) Notwithstanding paragraph (a), the association may
provide for less frequent reporting and payments for small
employers.
Sec. 15. Minnesota Statutes 1998, section 353.27,
subdivision 12, is amended to read:
Subd. 12. [OMITTED SALARY DEDUCTIONS; OBLIGATIONS.] (a) In
the case of omission of required deductions from the salary of
an employee, the department head or designee shall immediately,
upon discovery, report the employee for membership and deduct
the employee deductions under subdivision 4. Upon receipt of
billing from the association, during the current pay period or
during the pay period immediately following the discovery of the
omission. Payment for the omitted obligations may only be made
in accordance with reporting procedures and methods established
by the executive director.
(b) When the entire omission period of an employee does not
exceed 60 days, the governmental subdivision may report and
submit payment of the omitted employee deductions and the
omitted employer contributions through the reporting processes
under subdivision 4.
(c) When the omission period of an employee exceeds 60
days, the governmental subdivision shall furnish to the
association sufficient data and documentation upon which the
obligation for omitted employee and employer contributions can
be calculated. The omitted employee deductions must be deducted
from the employee's next subsequent salary payment or payments
and remitted to the association. The employee shall pay omitted
employee deductions due for the 60 days prior to the end of the
last pay period in the omission period during which salary was
earned. The employer shall pay any remaining omitted employee
deductions and any omitted employer contributions, plus
cumulative interest at an annual rate of 8.5 percent compounded
annually, from the date or dates each omitted employee
contribution was first payable.
(b) (d) An employer shall not hold an employee liable for
omitted employee deductions beyond the pay period dates under
paragraph (a) (c), nor attempt to recover from the employee
those employee deductions paid by the employer on behalf of the
employee. Omitted deductions due under paragraph (a) (c) which
are not paid by the employee constitute a liability of the
employer that failed to deduct the omitted deductions from the
employee's salary. The employer shall make payment with
interest at an annual rate of 8.5 percent compounded annually.
Omitted employee deductions are no longer due if an employee
terminates public service before making payment of omitted
employee deductions to the association, but the employer remains
liable to pay omitted employer contributions plus interest at an
annual rate of 8.5 percent compounded annually from the date the
contributions were first payable.
(c) (e) The association may not commence action for the
recovery of omitted employee deductions and employer
contributions after the expiration of three calendar years after
the calendar year in which the contributions and deductions were
omitted. Except as provided under paragraph (b), no payment may
be made or accepted unless the association has already commenced
action for recovery of omitted deductions. An action for
recovery commences on the date of the mailing of any written
correspondence from the association requesting information from
the governmental subdivision upon which to determine whether or
not omitted deductions occurred.
Sec. 16. Minnesota Statutes 1998, section 353.33,
subdivision 2, is amended to read:
Subd. 2. [APPLICATIONS; ACCRUAL OF BENEFITS.] Every claim
or demand for a total and permanent disability benefit must be
initiated by written application in the manner and form
prescribed by the executive director showing compliance with the
statutory conditions qualifying the applicant for a total and
permanent disability benefit and filed with the executive
director. A member or former member who became totally and
permanently disabled during a period of membership shall file
application for total and permanent disability benefits within
three years next following termination of public service. This
benefit begins to accrue the day following the commencement of
disability, 90 days preceding the filing of the application, or,
if annual or sick leave is paid for more than the 90-day period,
from the date salary ceased, whichever is later. No member is
entitled to receive a disability benefit payment when there
remains to the member's credit any unused annual leave or sick
leave or under any other circumstances when, during the period
of disability, there has been no impairment of the person's
salary. Payment must not accrue beyond the end of the month in
which entitlement has terminated. If the disabilitant dies
prior to negotiating the check for the month in which death
occurs, payment is made to the surviving spouse, or if none, to
the designated beneficiary, or if none, to the estate. An
applicant for total and permanent disability benefits may file a
retirement annuity application under section 353.29, subdivision
4, simultaneously with an application for total and permanent
disability benefits. The retirement annuity application is void
upon the determination of the entitlement for disability
benefits by the executive director. If disability benefits are
denied, the retirement annuity application must be initiated and
processed.
Sec. 17. Minnesota Statutes 1998, section 353.33,
subdivision 6, is amended to read:
Subd. 6. [CONTINUING ELIGIBILITY FOR BENEFITS.] The
association shall determine eligibility for continuation of
disability benefits and require periodic examinations and
evaluations of disabled members as frequently as deemed
necessary. The association shall require the disabled member to
provide and authorize release of medical evidence, including all
medical records and information from any source, relating to an
application for continuation of disability benefits. Disability
benefits are contingent upon a disabled person's participation
in a vocational rehabilitation program if the executive director
determines that the disabled person may be able to return to a
gainful occupation. If a member is found to be no longer
totally and permanently disabled and is reinstated to the
payroll, payments must cease the first of the month following
the reinstatement to the payroll expiration of a 30-day period
after the member receives a certified letter notifying the
member that payments will cease.
Sec. 18. Minnesota Statutes 1998, section 353.34,
subdivision 1, is amended to read:
Subdivision 1. [REFUND OR DEFERRED ANNUITY.] (a) A former
member is entitled to a refund of accumulated employee
deductions under subdivision 2, or to a deferred annuity under
subdivision 3. An active member of a fund enumerated in section
356.30, subdivision 3, clause (7), (8), or (14), who terminates
public service in any of those funds and becomes a member of
another fund enumerated in those clauses may receive a refund of
employee contributions plus six percent interest compounded
annually from the fund in which the member terminated service.
Application for a refund may not be made prior to the date of
termination of public service or the termination of membership,
whichever is sooner. Except as specified in paragraph (b), a
refund must be paid within 120 days following receipt of the
application unless the applicant has again become a public
employee required to be covered by the association.
(b) If an individual was granted an authorized temporary
layoff, a refund is not payable before termination of membership
under section 353.01, subdivision 11b, clause (3).
(c) An individual who terminates public service covered by
the public employees retirement association general plan, the
public employees retirement association police and fire plan, or
the public employees local government corrections service
retirement plan, and who becomes an active member covered by one
of the other two plans, may receive a refund of employee
contributions plus six percent interest compounded annually from
the plan in which the member terminated service.
Sec. 19. Minnesota Statutes 1999 Supplement, section
353.64, subdivision 1, is amended to read:
Subdivision 1. [POLICE AND FIRE FUND PLAN MEMBERSHIP;
MANDATORY.] A governmental subdivision must report a public
employee for membership in the police and fire plan if the
employee is employed full-time as specified in clause (1), (2),
or (3):
(1) a full-time police officer or a person in charge of a
designated police or sheriff's department, who by virtue of that
employment is required by the employing governmental subdivision
to be and is licensed by the Minnesota peace officer standards
and training board under sections 626.84 to 626.863, who is
charged with the prevention and detection of crime, who has the
full power of arrest, who is assigned to a designated police or
sheriff's department, and whose primary job is the enforcement
of the general criminal laws of the state;
(2) a full-time firefighter or a person in charge of a
designated fire company or companies who is engaged in the
hazards of fire fighting; or
(3) a full-time police officer or firefighter meeting all
requirements of clause (1) or (2), as applicable, who as part of
the employment position is periodically assigned to employment
duties in the same department that are not within the scope of
this subdivision.
An individual to which clause (3) applies must contribute
as a member of the police and fire plan for both the primary and
secondary services that are provided to the employing
governmental subdivision.
Subd. 1a. [POLICE AND FIRE PLAN; OTHER MEMBERS.] (a) A
person who prior to July 1, 1961, was a member of the police and
fire fund plan, by virtue of being a police officer or
firefighter, shall, as long as the person remains in either
position, continue membership in the fund plan.
(b) A person who was employed by a governmental subdivision
as a police officer and was a member of the police and fire fund
plan on July 1, 1978, by virtue of being a police officer as
defined by this section on that date, and if employed by the
same governmental subdivision in a position in the same
department in which the person was employed on that date,
continues to be a member of the fund plan, whether or not that
person has the power of arrest by warrant and is licensed by the
peace officers standards and training board after that date.
(c) A person who was employed as a correctional officer by
Rice county before July 1, 1998, for the duration of employment
in the correctional position held on July 1, 1998, continues to
be a member of the public employees police and fire plan,
whether or not the person has the power of arrest by warrant and
is licensed by the peace officers standards and training board
after that date.
(c) (d) A person who was employed by a governmental
subdivision as a police officer or a firefighter, whichever
applies, was an active member of the local police or salaried
firefighters relief association located in that governmental
subdivision by virtue of that employment as of the effective
date of the consolidation as authorized by sections 353A.01 to
353A.10, and has elected coverage by the public employees police
and fire fund benefit plan, shall become a member of the police
and fire fund plan after that date if employed by the same
governmental subdivision in a position in the same department in
which the person was employed on that date.
(d) Any other employee serving on a full-time basis as a
police officer as defined in subdivision 2 or as a firefighter
as defined in subdivision 3 on or after July 1, 1961, shall
become a member of the public employees police and fire fund.
(e) An employee serving on less than a full-time basis as a
police officer shall become a member of the public employees
police and fire fund only after a resolution stating that the
employee should be covered by the police and fire fund is
adopted by the governing body of the governmental subdivision
employing the person declaring that the position which the
person holds is that of a police officer.
(f) An employee serving on less than a full-time basis as a
firefighter shall become a member of the public employees police
and fire fund only after a resolution stating that the employee
should be covered by the police and fire fund is adopted by the
governing body of the governmental subdivision employing the
person declaring that the position which the person holds is
that of a firefighter.
(g) A police officer or firefighter employed by a
governmental subdivision who by virtue of that employment is
required by law to be a member of and to contribute to any
police or firefighter relief association governed by section
69.77 which has not consolidated with the public employees
police and fire fund, (e) Any police officer or firefighter of a
relief association that has consolidated with the association
for which the employee has not elected coverage by the public
employees police and fire fund benefit plan as provided in
sections 353A.01 to 353A.10, or any police officer or
firefighter to whom section 353.665 applies who has not elected
coverage by the public employees police and fire fund benefit
plan as provided in section 353.665, subdivision 4, shall must
not become a member of the public employees police and fire fund
plan, but is not subject to the provisions of sections 353.651
to 353.659 unless an election for such coverage is made under
section 353.665, subdivision 4.
Sec. 20. Minnesota Statutes 1998, section 353.64,
subdivision 2, is amended to read:
Subd. 2. [POLICE AND FIRE FUND MEMBERSHIP; PART-TIME
EMPLOYMENT COVERAGE OPTION.] Before a (a) The governing body of
a governmental subdivision may adopt a resolution, subject to
requirements specified in paragraph (b), declaring that a public
employee employed in a position on a part-time basis by that
governmental subdivision is covered by the police and fire plan
for that employment.
(b) If the public employee's position is related to police
service, the resolution is valid if the conditions specified in
paragraph (c) are met. If the public employee's position is
related to fire service, the resolution is valid if the
conditions specified in paragraph (d) are met. If the public
employee in the applicable position is periodically assigned to
employment duties not within the scope of this subdivision, the
resolution is considered valid if the governing body of the
governmental subdivision declares that the public employee's
position, for primary services provided, satisfies all of the
requirements of subdivision 1, clause (3), other than the
requirement of full-time employment.
(c) For the governing body may of the governmental
subdivision to declare a position to be that of a police
officer, the duties and qualifications of the person so employed
must, as at a minimum, include employment as an officer of a
designated police department or sheriff's office or person in
charge of a designated police department or sheriff's office
whose primary job it is to enforce the law, who is licensed by
the Minnesota board of peace officer standards and training
under sections 626.84 to 626.863, who is engaged in the hazards
of protecting the safety and property of others, and who has the
power to arrest by warrant.
A police officer who is periodically assigned to employment
duties not within the scope of this subdivision may contribute
to the public employees police and fire fund for all service, if
a resolution declaring that the primary position held by the
person is that of a police officer, is adopted by the governing
body of the department, and is promptly submitted to the
executive director. satisfy all of the requirements of
subdivision 1, clause (1), other than the requirement of
full-time employment.
(d) For the governing body of a governmental subdivision to
declare a position to be that of a firefighter, the duties and
qualifications of the person so employed must, at a minimum,
satisfy all of the requirements of subdivision 1, clause (2),
other than the requirement of full-time employment.
Sec. 21. Minnesota Statutes 1998, section 353.64,
subdivision 3, is amended to read:
Subd. 3. [POLICE AND FIRE FUND MEMBERSHIP; EXCLUSION.]
Before a governing body may declare a position to be that of a
firefighter, the duties of the person so employed must, as a
minimum, include services as an employee of a designated fire
company or person in charge of a designated fire company or
companies who is engaged in the hazards of fire fighting. A
firefighter who is periodically assigned to employment duties
outside the scope of firefighting may contribute to the public
employees police and fire fund for all service, if a resolution
declaring that the primary position held by the person is that
of a firefighter, is adopted by the governing body of the
company or companies, and is promptly submitted to the executive
director. A police officer or firefighter employed by a
governmental subdivision who by virtue of that employment is
required by law to be a member of and to contribute to any
police or firefighter relief association governed by section
69.77 which has not consolidated with the public employees
police and fire plan is not eligible to become a member of the
public employees police and fire plan.
Sec. 22. Minnesota Statutes 1998, section 353.64,
subdivision 4, is amended to read:
Subd. 4. [RESOLUTION FILING.] (a) A copy of the resolution
of the governing body declaring a position to be that of police
officer or firefighter shall be promptly filed with the board of
trustees and shall be irrevocable.
(b) Following the receipt of adequate notice from the
association, if a valid resolution is not filed with the public
employees retirement association within six months following the
date of that notice, any contributions or deductions made to the
police and fire fund for the applicable employment are deemed to
be contributions or deductions transmitted in error under
section 353.27, subdivision 7a.
Sec. 23. Minnesota Statutes 1998, section 353.656,
subdivision 1, is amended to read:
Subdivision 1. [IN LINE OF DUTY; COMPUTATION OF BENEFITS.]
A member of the police and fire fund plan who becomes disabled
and physically unfit to perform duties as a police officer or,
firefighter subsequent to June 30, 1973, or paramedic as defined
under section 353.64, subdivision 10, as a direct result of an
injury, sickness, or other disability incurred in or arising out
of any act of duty, which has or is expected to render the
member physically or mentally unable to perform the duties as a
police officer or, firefighter, or paramedic as defined under
section 353.64, subdivision 10, for a period of at least one
year, shall receive disability benefits during the period of
such disability. The benefits must be in an amount equal to 60
percent of the "average salary" under as defined in section
353.651, subdivision 3 2, plus an additional percent specified
in section 356.19, subdivision 6, of said that average salary
for each year of service in excess of 20 years. Should If the
disability under this subdivision occur occurs before the member
has at least five years of allowable service credit in the
police and fire fund plan, the disability benefit must be
computed on the "average salary" from which deductions were made
for contribution to the police and fire fund.
Sec. 24. Minnesota Statutes 1998, section 353.656,
subdivision 3, is amended to read:
Subd. 3. [NONDUTY DISABILITY BENEFIT.] Any member of the
police and fire plan who becomes disabled after not less than
one year of allowable service because of sickness or injury
occurring while not on duty as a police officer or, firefighter,
or paramedic as defined under section 353.64, subdivision 10,
and by reason of that sickness or injury the member has been or
is expected to be unable to perform the duties as a police
officer or, firefighter, or paramedic as defined under section
353.64, subdivision 10, for a period of at least one year, is
entitled to receive a disability benefit. The benefit must be
paid in the same manner as if the benefit were paid under
section 353.651. If a disability under this subdivision occurs
after one but in less than 15 years of allowable service, the
disability benefit must be the same as though the member had at
least 15 years service. For a member who is employed as a
full-time firefighter by the department of military affairs of
the state of Minnesota, allowable service as a full-time state
military affairs department firefighter credited by the
Minnesota state retirement system may be used in meeting the
minimum allowable service requirement of this subdivision.
Sec. 25. Minnesota Statutes 1998, section 353.71,
subdivision 2, is amended to read:
Subd. 2. [DEFERRED ANNUITY COMPUTATION; AUGMENTATION.] (a)
The deferred annuity, if any, accruing under subdivision 1, or
under sections 353.34, subdivision 3, and 353.68, subdivision 4,
must be computed in the manner provided in said sections, on the
basis of allowable service prior to the termination of public
service and augmented as provided herein in this paragraph. The
required reserves applicable to a deferred annuity, or to an
annuity for which a former member was eligible but had not
applied, or to any deferred segment of an annuity shall must be
determined as of the date the annuity begins to accrue and shall
be augmented from the first day of the month following the month
in which the former member ceased to be a public employee, or
July 1, 1971, whichever is later, to the first day of the month
in which the annuity begins to accrue,. These required reserves
must be augmented at the rate of five percent per annum annually
compounded annually until January 1, 1981, and at the rate of
three percent thereafter until January 1 of the year following
the year in which the former member attains age 55. From that
date to the effective date of retirement, the rate is five
percent per annum compounded annually. If a person has more
than one period of uninterrupted service, the required reserves
related to each period shall must be augmented by interest
pursuant to this subdivision as specified in this paragraph.
The sum of the augmented required reserves so determined shall
be is the present value of the annuity. Uninterrupted service
for the purpose of this subdivision shall mean means periods of
covered employment during which the employee has not been
separated from public service for more than two years. If a
person repays a refund, the restored service restored thereby
shall must be considered as continuous with the next period of
service for which the employee has credit with this association.
The formula percentages used for each period of uninterrupted
service shall be those as would be applicable to a new employee.
This section shall must not reduce the annuity otherwise payable
under this chapter. This subdivision paragraph shall apply
applies to individuals who become deferred annuitants of record
on or after July 1, 1971, and to employees who thereafter become
deferred annuitants; it shall also apply. For a member who
became a deferred annuitant before July 1, 1971, the paragraph
applies from July 1, 1971, to if the former members who make
application active member applies for an annuity after July 1,
1973.
(b) The retirement annuity or disability benefit of, or the
survivor benefit payable on behalf of, a former member who
terminated service before July 1, 1997, or the survivor benefit
payable on behalf of a basic or police and fire member who was
receiving disability benefits before July 1, 1997, which is not
first payable until after June 30, 1997, must be increased on an
actuarial equivalent basis to reflect the change in the
postretirement interest rate actuarial assumption under section
356.215, subdivision 4d, from five percent to six percent under
a calculation procedure and tables adopted by the board and
approved by the actuary retained by the legislative commission
on pensions and retirement.
Sec. 26. Minnesota Statutes 1998, section 353B.11,
subdivision 3, is amended to read:
Subd. 3. [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The
surviving spouse benefit shall be 30 percent of the salary base
for the former members of the following consolidating relief
associations:
(1) Albert Lea firefighters relief association;
(2) Albert Lea police relief association;
(3) Anoka police relief association;
(4) Austin police relief association;
(5) Brainerd police benefit association;
(6) Crookston police relief association;
(7) Faribault fire department relief association; and
(8) West St. Paul firefighters relief association.
(b) The surviving spouse benefit shall be 25 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Chisholm police relief association;
(2) Duluth firefighters relief association;
(3) Duluth police pension association;
(4) Fairmont police benefit association;
(5) Red Wing fire department relief association;
(6) South St. Paul police relief association; and
(7) West St. Paul police relief association.
(c) The surviving spouse benefit shall be 24 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Fridley police pension association;
(2) Richfield police relief association;
(3) Rochester fire department relief association;
(4) Rochester police relief association;
(5) Winona fire department relief association; and
(6) Winona police relief association.
(d) The surviving spouse benefit shall be 40 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) Columbia Heights fire department relief association,
paid division; and
(2) New Ulm police relief association.
(e) The surviving spouse benefit shall be $250 per month 30
percent of the salary base for the former members of the
following consolidating relief associations:
(1) Hibbing firefighters relief association; and
(2) Hibbing police relief association.
(f) The surviving spouse benefit shall be 23.75 percent of
the salary base for the former members of the following
consolidating relief associations:
(1) Crystal police relief associations; and
(2) Minneapolis police relief association.
(g) The surviving spouse benefit shall be 32 percent of the
salary base for the former members of the following
consolidating relief associations:
(1) St. Cloud fire department relief association; and
(2) St. Cloud police relief association.
(h) The surviving spouse benefit shall be one-half of the
service pension or disability benefit which the deceased member
was receiving as of the date of death, or of the service pension
which the deferred member would have been receiving if the
service pension had commenced as of the date of death or of the
service pension which the active member would have received
based on the greater of the allowable service credit of the
person as of the date of death or 20 years of allowable service
credit if the person would have been eligible as of the date of
death, for the former members of the following consolidating
relief associations:
(1) Virginia fire department relief association; and
(2) Virginia police relief association.
(i) The surviving spouse benefit shall be the following for
the former members of the consolidating relief associations as
indicated:
(1) 30 percent of the salary base, reduced by any amount
awarded or payable from the service pension or disability
benefit of the deceased former firefighter to a former spouse of
the member by virtue of the legal dissolution of the member's
marriage to the former spouse if the surviving spouse married
the member after the time of separation from active service,
Austin firefighters relief association;
(2) 27.333 percent of the salary base, or one-half of the
service pension payable to or accrued by the deceased former
member, whichever is greater, Bloomington police relief
association;
(3) 72.25 percent of the salary base, Buhl police relief
association;
(4) 50 percent of the service pension which the active
member would have received based on allowable service credit to
the date of death and prospective service from the date of death
until the date on which the person would have attained the
normal retirement age, 50 percent of the service pension which
the deferred member would have been receiving if the service
pension had commenced as of the date of death or $175 per month
if the deceased member was receiving a service pension or
disability benefit as of the date of death, Chisholm
firefighters relief association;
(5) two-thirds of the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the greater of the allowable
service credit of the person as of the date of death or 20 years
of allowable service credit if the person would have been
eligible as of the date of death, Columbia Heights police relief
association;
(6) the greater of $300 per month or one-half of the
service pension or disability benefit which the deceased member
was receiving as of the date of death, or of the service pension
which the deferred member would have been receiving if the
service pension had commenced as of the date of death or of the
service pension which the active member would have received
based on the allowable service credit of the person as of the
date of death if the person would have been eligible as of the
date of death, Crookston fire department relief association;
(7) $100 per month, Faribault police benefit association;
(8) 60 percent of the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the allowable service credit of the
person as of the date of death if the person would have been
eligible as of the date of death, Mankato fire department relief
association;
(9) $175 per month, Mankato police benefit association;
(10) 26.25 percent of the salary base, Minneapolis fire
department relief association;
(11) equal to the service pension or disability benefit
which the deceased member was receiving as of the date of death,
or of the service pension which the deferred member would have
been receiving if the service pension had commenced as of the
date of death or of the service pension which the active member
would have received based on the allowable service credit of the
person as of the date of death if the person would have been
eligible as of the date of death, Red Wing police relief
association;
(12) 78.545 percent of the benefit amount payable prior to
the death of the deceased active, disabled, deferred, or retired
firefighter if that firefighter's benefit was 55 percent of
salary or would have been 55 percent of salary if the
firefighter had survived to begin benefit receipt; or 80 percent
of the benefit amount payable prior to the death of the deceased
active, disabled, deferred, or retired firefighter if that
firefighter's benefit was 54 percent of salary or would have
been 54 percent of salary if the firefighter had survived to
begin benefit receipt, Richfield fire department relief
association;
(13) 40 percent of the salary base for a surviving spouse
of a deceased active member, disabled member, or retired or
deferred member with at least 20 years of allowable service, or
the prorated portion of 40 percent of the salary base that bears
the same relationship to 40 percent that the deceased member's
years of allowable service bear to 20 years of allowable service
for the surviving spouse of a deceased retired or deferred
member with at least ten but less than 20 years of allowable
service, St. Louis Park fire department relief association;
(14) 26.6667 percent of the salary base, St. Louis Park
police relief association;
(15) 27.5 percent of the salary base, St. Paul fire
department relief association;
(16) 20 27.5 percent of the salary base, St. Paul police
relief association; and
(17) 27 percent of the salary base, South St. Paul
firefighters relief association.
Sec. 27. Minnesota Statutes 1998, section 354.05,
subdivision 2, is amended to read:
Subd. 2. [TEACHER.] (a) "Teacher" means:
(1) a person who renders service as a teacher, supervisor,
principal, superintendent, librarian, nurse, counselor, social
worker, therapist, or psychologist in the public schools of the
state located outside of the corporate limits of the cities of
the first class as those cities were so classified on January 1,
1979, or in the Minnesota state colleges and universities
system, or in any charitable, penal, or correctional
institutions of a governmental subdivision, or who is engaged in
educational administration in connection with the state public
school system, including the Minnesota state colleges and
university universities system, but excluding the University of
Minnesota, whether the position be a public office or an
employment, not including members or officers of any general
governing or managing board or body;
(2) an employee of the teachers retirement association
unless the employee is covered by the Minnesota state retirement
system by virtue of due to prior employment by the association
that system;
(3) a person who renders teaching service on a part-time
basis and who also renders other services for a single employing
unit. In such cases, the executive director shall determine
whether all or none of the combined service is covered by the
association, however A person whose teaching service comprises
at least 50 percent of the combined employment salary is a
member of the association for all services with the single
employing unit. If the person's teaching service comprises less
than 50 percent of the combined employment salary, the executive
director must determine whether all or none of the combined
service is covered by the association.
(b) The term Teacher does not mean:
(1) an employee described in section 352D.02, subdivision
1a, who is hired after the effective date of Laws 1986, chapter
458;
(2) a person who works for a school or institution as an
independent contractor as defined by the Internal Revenue
Service;
(3) (2) a person employed in subsidized on-the-job
training, work experience or public service employment as an
enrollee under the federal Comprehensive Employment and Training
Act from and after March 30, 1978, unless the person has, as of
the later of March 30, 1978, or the date of employment,
sufficient service credit in the retirement association to meet
the minimum vesting requirements for a deferred retirement
annuity, or the employer agrees in writing on forms prescribed
by the executive director to make the required employer
contributions, including any employer additional contributions,
on account of that person from revenue sources other than funds
provided under the federal Comprehensive Training and Employment
Act, or the person agrees in writing on forms prescribed by the
executive director to make the required employer contribution in
addition to the required employee contribution;
(4) (3) a person holding a part-time adult supplementary
technical college license who renders part-time teaching service
or a customized trainer as defined by the Minnesota state
colleges and universities system in a technical college if (i)
the service is incidental to the regular nonteaching occupation
of the person; and (ii) the applicable technical college
stipulates annually in advance that the part-time teaching
service or customized training service will not exceed 300 hours
in a fiscal year and retains the stipulation in its records; and
(iii) the part-time teaching service or customized training
service actually does not exceed 300 hours in a fiscal year; or
(5) (4) a person exempt from licensure pursuant to under
section 122A.30.
Sec. 28. Minnesota Statutes 1998, section 354.05,
subdivision 35, is amended to read:
Subd. 35. [SALARY.] (a) "Salary" means the periodic
compensation, upon which member contributions are required and
made, that is paid to a teacher before employee-paid fringe
benefits, tax sheltered annuities, deferred compensation, or any
combination of these employee-paid items are deducted before
deductions for deferred compensation, supplemental retirement
plans, or other voluntary salary reduction programs.
(b) "Salary" does not mean:
(1) lump sum annual leave payments;
(2) lump sum wellness and sick leave payments;
(3) payments in lieu of any employer-paid group insurance
coverage;
(4) payments for the difference between single and family
premium rates that may be paid to a member with single coverage;
(5) employer-paid fringe benefits including, but not
limited to, flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or automobile
allowances and expenses; employer-paid amounts used by an
employee toward the cost of insurance coverage, employer-paid
fringe benefits, flexible spending accounts, cafeteria plans,
health care expense accounts, day care expenses, or any payments
in lieu of any employer-paid group insurance coverage, including
the difference between single and family rates that may be paid
to a member with single coverage and certain amounts determined
by the executive director to be ineligible;
(6) (4) any form of payment made in lieu of any other
employer-paid fringe benefit or expense;
(7) (5) any form of severance payments;
(8) (6) workers' compensation payments;
(9) (7) disability insurance payments including
self-insured disability payments;
(10) (8) payments to school principals and all other
administrators for services in addition to the normal work year
contract if these additional services are performed on an
extended duty day, Saturday, Sunday, holiday, annual leave day,
sick leave day, or any other nonduty day;
(11) (9) payments under section 356.24, subdivision 1,
clause (4); and
(12) (10) payments made under section 122A.40, subdivision
12, except for payments for sick leave accumulated under the
provisions of a uniform school district policy that applies
equally to all similarly situated persons in the district.
Sec. 29. Minnesota Statutes 1998, section 354.091, is
amended to read:
354.091 [SERVICE CREDIT.]
(a) In computing the time of service of a teacher, the
length of a legal school year in the district or institution
where such service was rendered must constitute a year under
sections 354.05 to 354.10, provided the year is not less than
the legal minimum school year of this state. service credit,
no person teacher shall receive credit for more than one year of
teaching service for any fiscal year. Commencing July 1, 1961,:
(1) if a teacher teaches only a fractional part of a day,
credit must be given for a day of teaching service for each less
than five hours taught, and in a day, service credit must be
given for the fractional part of the day as the term of service
performed bears to five hours;
(2) if a teacher teaches five or more hours in a day,
service credit must be given for only one day;
(3) if a teacher teaches at least 170 full days in any
fiscal year, service credit must be given for a full year of
teaching service,; and
(3) (4) if a teacher teaches for only a fractional part of
the year, service credit must be given for such fractional part
of the year as the term period of service rendered performed
bears to 170 days.
(b) A person who teaches in the state colleges and
university system teacher shall receive a full year of service
credit based on the number of days in the system's employer's
full school year if it is less than 170 days. Teaching service
performed prior to before July 1, 1961, must be computed under
the law in effect at the time it was rendered performed.
(c) A teacher shall does not lose or gain retirement
service credit as a result of the employer converting to
a four-day work week flexible or alternate work schedule. If
the employer does convert converts to a four-day work week
flexible or alternate work schedule, the forms for reporting and
the procedures for determining service credit shall must be
determined by the executive director with the approval of the
board of trustees.
Sec. 30. Minnesota Statutes 1998, section 354.092,
subdivision 2, is amended to read:
Subd. 2. [PAY RATE; CERTIFICATION.] A sabbatical leave
must be compensated by a minimum of one-third of the salary that
the member received for a comparable period during the prior
fiscal year. Before the end of the fiscal year during which any
sabbatical leave is granted Upon granting a sabbatical leave,
the employing unit granting the leave must certify the leave to
the association on a form specified by the executive director.
Sec. 31. Minnesota Statutes 1998, section 354.093, is
amended to read:
354.093 [PARENTAL OR MATERNITY LEAVE.]
Before the end of the fiscal year during which any parental
or maternity leave is granted Upon granting a parental leave for
the birth or adoption of a child, the employing unit granting
the leave must certify the leave to the association on a form
specified by the executive director. A member of the
association granted parental or maternity leave of absence by
the employing unit is entitled to service credit not to exceed
one year for the period of leave upon payment to the association
by the end of the fiscal year following the fiscal year in which
the leave of absence terminated. This payment must include
equal the total required employee, and employer contributions,
and amortization contributions, if any, for the period of leave
prescribed in section 354.42. The payment must be based on the
member's average full-time monthly salary rate on the date the
leave of absence commenced, and must be without interest.
Notwithstanding the provisions of any agreements to the
contrary, employee and employer the contributions specified in
this section may not be made to receive allowable service credit
under this section if the member does not retain the right to
full reinstatement at the end of the leave.
Sec. 32. Minnesota Statutes 1998, section 354.094,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Before the
end of the fiscal year during which Upon granting any extended
leave of absence is granted pursuant to under section 122A.46 or
136F.43, the employing unit granting the leave must certify the
leave to the association on a form specified by the executive
director. A member granted an extended leave of absence
pursuant to under section 122A.46 or 136F.43 may pay employee
contributions and receive allowable service credit toward
annuities and other benefits under this chapter, for each year
of the leave, provided that the member and the employing board
make the required employer contribution in any proportion they
may agree upon, during the period of the leave. which shall The
leave period must not exceed five years. A member may not
receive more than five years of allowable service credit under
this section. The employee and employer contributions must be
based upon the rates of contribution prescribed by section
354.42 for the salary received during the year immediately
preceding the extended leave. Payments for the years for which
a member is receiving service credit while on extended leave
must be made on or before the later of June 30 of each fiscal
year for which service credit is received or within 30 days
after first notification of the amount due, if requested by the
member, is given by the association. No payment is permitted
after the following September 30. Payments received after June
30 must include interest at an annual rate of 8.5 percent from
June 30 through the end of the month in which payment is
received. Notwithstanding the provisions of any agreements to
the contrary, employee and employer contributions may not be
made to receive allowable service credit if the member does not
have full reinstatement rights as provided in section 122A.46 or
136F.43, both during and at the end of the extended leave.
Sec. 33. Minnesota Statutes 1998, section 354.10,
subdivision 2, is amended to read:
Subd. 2. [AUTOMATIC DEPOSITS.] Upon receipt of the
properly completed forms as provided by the executive director,
the annuity or, benefit or refund amount may be electronically
transferred or the annuity or benefit check may be mailed to a
banking institution, savings association, or credit union any
financial institution associated with the National Automated
Clearinghouse Association or a comparable successor organization
for deposit to the recipient's individual account or joint
account with the recipient's spouse or any other person
designated by the recipient. An overpayment to a joint account
after the death of the annuity or benefit recipient must be
repaid to the fund by the joint tenant if the overpayment is not
repaid to the fund by the banking institution, savings
association, or credit union financial institution associated
with the National Automated Clearinghouse Association or its
successor. The board may prescribe the conditions which govern
these procedures.
Sec. 34. Minnesota Statutes 1998, section 354.35, is
amended to read:
354.35 [OPTIONAL ACCELERATED RETIREMENT ANNUITY BEFORE AGE
65 NORMAL RETIREMENT AGE.]
Any coordinated member who retires before age 65 may elect
to receive an optional accelerated retirement annuity from the
association which provides for different annuity amounts over
different periods of retirement. The election of this optional
accelerated retirement annuity is exercised by making an
application to the board on a form provided by the executive
director. The optional accelerated retirement annuity must take
the form of an annuity payable for the period before the member
attains age 65 in a greater amount than the amount of the
annuity calculated under section 354.44 on the basis of the age
of the member at retirement, but the optional accelerated
retirement annuity must be the actuarial equivalent of the
member's annuity computed on the basis of the member's age at
retirement. The greater amount must be paid until the retiree
reaches age 65 and at that time the payment from the association
must be reduced. For each year the retiree is under age 65, up
to five percent of the total life annuity required reserves may
be used to accelerate the optional retirement annuity under this
section. At retirement, members who retire before age 62 may
elect to have the age specified in this section be 62 instead of
65. This election is irrevocable and may be made only once on
the application form provided by the executive director. The
method of computing the optional accelerated retirement annuity
provided in this section is established by the board of
trustees. In establishing the method of computing the optional
accelerated retirement annuity, the board of trustees must
obtain the written approval of the commission-retained actuary.
The written approval must be a part of the permanent records of
the board of trustees. The election of an optional accelerated
retirement annuity is exercised by making an application on a
form provided by the executive director.
Sec. 35. Minnesota Statutes 1998, section 354.46,
subdivision 2a, is amended to read:
Subd. 2a. [SURVIVOR COVERAGE TERM CERTAIN.] In lieu of the
100 percent optional annuity under subdivision 2, or a refund
under section 354.47, subdivision 1, the surviving spouse of a
deceased member may elect to receive survivor coverage in a term
certain of five, ten, 15, or 20 years, but monthly payments must
not exceed 75 percent of the average high-five monthly salary of
the deceased member. The monthly term certain annuity must be
actuarially equivalent to the 100 percent optional annuity under
subdivision 2.
If a surviving spouse elects a term certain payment and
dies before the expiration of the specified term certain period,
the commuted value of the remaining annuity payments must be
paid in a lump sum to the survivor's surviving spouse's estate.
Sec. 36. Minnesota Statutes 1998, section 354.47,
subdivision 1, is amended to read:
Subdivision 1. [DEATH BEFORE RETIREMENT.] (1) (a) If a
member dies before retirement and is covered under section
354.44, subdivision 2, and neither an optional annuity, nor a
reversionary annuity, nor a benefit under section 354.46,
subdivision 1, is payable to the survivors if the member was a
basic member, then the surviving spouse, or if there is no
surviving spouse, the designated beneficiary is entitled to an
amount equal to the member's accumulated deductions with
interest credited to the account of the member to the date of
death of the member. If the designated beneficiary is a minor,
interest must be credited to the date the beneficiary reaches
legal age, or the date of receipt, whichever is earlier.
(2) (b) If a member dies before retirement and is covered
under section 354.44, subdivision 6, and neither an optional
annuity, nor reversionary annuity, nor the benefit described in
section 354.46, subdivision 1, is payable to the survivors if
the member was a basic member, then the surviving spouse, or if
there is no surviving spouse, the designated beneficiary is
entitled to an amount equal to the member's accumulated
deductions credited to the account of the member as of June 30,
1957, and from July 1, 1957, to the date of death of the member,
the member's accumulated deductions plus six percent interest at
the rate of six percent per annum compounded annually.
(c) If the designated beneficiary under paragraph (b) is a
minor, any interest credited under that paragraph must be
credited to the date the beneficiary reaches legal age, or the
date of receipt, whichever is earlier.
Sec. 37. Minnesota Statutes 1998, section 354.48,
subdivision 6, is amended to read:
Subd. 6. [REGULAR PHYSICAL EXAMINATIONS.] At least once
each year during the first five years following the allowance of
a disability benefit to any member, and at least once in every
three-year period thereafter, the executive director shall
require the disability beneficiary to undergo a medical
examination to be made at the place of residence of such person,
or at any other place mutually agreed upon, by a physician or
physicians engaged by the executive director. If any
examination indicates that the member is no longer permanently
and totally disabled or that the member is engaged or is able to
engage in a substantial gainful occupation, payments of the
disability benefit by the association shall be discontinued.
The payments shall discontinue as soon as the member is
reinstated to the payroll following sick leave, but payment may
not be made for more than 60 days after physicians engaged by
the executive director find that the person is no longer
permanently and totally disabled.
Sec. 38. Minnesota Statutes 1998, section 354.49,
subdivision 1, is amended to read:
Subdivision 1. [ENTITLEMENT, APPLICATION.] A person who
ceases to render teaching service in any school or institution
to which the provisions of this chapter apply is entitled to a
refund provided in subdivision 2, or a deferred retirement
annuity under section 354.55, subdivision 11. An application
for a refund must not be made sooner than 30 days after
termination of teaching service if the applicant has not again
become a teacher. This payment must be made within 90 45 days
after the receipt of an application for a refund or upon
completion of processing the report made pursuant to section
354.52, subdivision 2 the receipt of member reporting data under
section 354.52, subdivision 4a, and payroll cycle data under
section 354.52, subdivision 4b, whichever is later.
Sec. 39. Minnesota Statutes 1998, section 354.52,
subdivision 3, is amended to read:
Subd. 3. [DUTY OF FINANCE OFFICIALS DEDUCTION
REQUIREMENTS.] It is the duty of each person, officer, school
board, or managing body required by law to draw the warrants or
orders for payment of salaries to teachers to Every pay period,
each employer shall deduct and withhold from all the salary paid
each pay period to of every teacher who is a member of the fund
the amount which the teacher is required to pay into the fund
and, required under section 354.42. At the time of each
deduction, to the employer shall also furnish to each teacher a
statement showing the amount of the deduction.
Sec. 40. Minnesota Statutes 1998, section 354.52,
subdivision 4, is amended to read:
Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.] At least
once each month, a representative authorized by An employing
unit employer shall transmit remit all amounts due to the
association and furnish a signed statement indicating the amount
due and transmitted with any other information required by the
executive director. Signing the statement has the force and
effect of an oath as to the correctness of the amount due and
transmitted. If an amount due and is not transmitted
received by the association within seven calendar days of the
payroll warrant, the amount accrues interest at an annual rate
of 8.5 percent compounded annually commencing 15 days after from
the due date first due until the amount is transmitted and must
be paid by the employing unit. These payments received by the
association. All amounts due and other employing unit employer
obligations not remitted within 60 days of notification by the
association must be certified to the commissioner of finance who
shall deduct the amount from any state aid or appropriation
amount applicable to the employing unit.
Sec. 41. Minnesota Statutes 1998, section 354.52,
subdivision 4a, is amended to read:
Subd. 4a. [MEMBER DATA REPORTING REQUIREMENTS.] (a) An
employing unit shall must initially provide the following member
data specified in paragraph (b) or any of that data not
previously provided to the association for payroll warrants
dated after June 30, 1995, in a format prescribed by the
executive director. Data changes and the dates of those changes
under this subdivision must be reported to the association on an
ongoing basis for within 14 calendar days after the date of the
end of the payroll cycle in which they occur. These data
changes must be reported with the payroll cycle data under
subdivision 4b.
(b) Data on the member includes:
(1) legal name, address, date of birth, association member
number, employer-assigned employee number, and social security
number;
(2) association status, including, but not limited to,
basic, coordinated, exempt annuitant, exempt technical college
teacher, and exempt independent contractor or consultant;
(3) employment status, including, but not limited to, full
time, part time, intermittent, substitute, or part-time
mobility;
(4) employment position, including, but not limited to,
teacher, superintendent, principal, administrator, or other;
(5) employment activity, including, but not limited to,
hire, termination, resumption of employment, disability, or
death;
(6) leaves of absence;
(7) county district number assigned by the association for
the employing unit;
(8) data center identification number, if applicable; and
(9) other information as may be required by the executive
director.
Sec. 42. Minnesota Statutes 1998, section 354.52,
subdivision 4b, is amended to read:
Subd. 4b. [PAYROLL CYCLE REPORTING REQUIREMENTS.] An
employing unit shall provide the following data to the
association for payroll warrants dated after June 30, 1995, for
each on an ongoing basis within 14 calendar days after the date
of the payroll cycle warrant in a format prescribed by the
executive director:
(1) association member number;
(2) employer-assigned employee number;
(3) social security number;
(4) amount of each salary deduction;
(5) amount of salary as defined in section 354.05,
subdivision 35, from which each deduction was made;
(6) reason for payment;
(7) service credit;
(8) the beginning and ending dates of the payroll period
covered and the date of actual payment;
(9) fiscal year of salary earnings;
(10) total remittance amount including employee, employer,
and additional employer contributions; and
(11) other information as may be required by the executive
director.
Sec. 43. Minnesota Statutes 1998, section 354.63,
subdivision 2, is amended to read:
Subd. 2. [VALUATION OF ASSETS; ADJUSTMENT OF BENEFITS.]
(1) The required reserves for retirement annuities as determined
in accordance with under this chapter shall must be transferred
to the Minnesota postretirement investment fund as of no later
than the last business day of the month in which the retirement
annuity begins. The required reserves shall be determined in
accordance with the appropriate annuity table of mortality
adopted by the board of trustees as provided in section 354.07,
subdivision 1, based on the experience of the fund as
recommended by the commission-retained actuary and using the
interest assumption specified in section 356.215, subdivision 4d.
(2) Annuity payments shall be adjusted as provided in
accordance with the provisions of section 11A.18. In making
these adjustments, members who retire effective July 1 shall be
considered to have retired effective the preceding June
30. This section applies to persons who retired effective July
1, 1982, or later.
(3) An increase in annuity payments pursuant to under this
section will be made automatically unless written notice is
filed by the annuitant with the executive director of the
teachers retirement association requesting that the increase
shall not be made.
Sec. 44. Minnesota Statutes 1998, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.]
(1) (a) Notwithstanding any provisions to the contrary of the
laws governing the funds plans enumerated in subdivision 3, a
person who has met the qualifications of clause (2) paragraph
(b) may elect to receive a retirement annuity from each fund
plan in which the person has at least six months one-half year
of allowable service, based on the allowable service in
each fund plan, subject to the provisions of clause
(3) paragraph (c).
(2) (b) A person may receive upon retirement a retirement
annuity from each fund plan in which the person has at least six
months one-half year of allowable service, and augmentation of a
deferred annuity calculated under the laws governing each public
pension plan or fund named in subdivision 3, from the date the
person terminated all public service if:
(a) (1) the person has allowable service totaling an amount
that allows the person to receive an annuity in any two or more
of the enumerated funds plans; and
(b) (2) the person has not begun to receive an annuity from
any enumerated fund plan or the person has made application for
benefits from all funds each applicable plan and the effective
dates of the retirement annuity with each fund plan under which
the person chooses to receive an annuity are within a one-year
period.
(3) (c) The retirement annuity from each fund plan must be
based upon the allowable service, accrual rates, and average
salary in each fund, except that the applicable plan as further
specified or modified in the following clauses:
(a) (1) the laws governing annuities must be the law in
effect on the date of termination from the last period of public
service under a covered fund plan with which the person earned a
minimum of one-half year of allowable service credit during that
employment.;
(b) (2) the "average salary" on which the annuity from each
covered fund plan in which the employee has credit in a formula
plan shall be based on the employee's highest five successive
years of covered salary during the entire service in
covered funds. plans;
(c) (3) The formula percentages accrual rates to be used by
each fund plan must be those percentages prescribed by
each fund's plan's formula as continued for the respective years
of allowable service from one fund plan to the next, recognizing
all previous allowable service with the other
covered funds. plans;
(d) (4) allowable service in all the funds plans must be
combined in determining eligibility for and the application of
each fund's plan's provisions in respect to actuarial reduction
in the annuity amount for retirement prior to normal retirement.
age; and
(e) (5) the annuity amount payable for any allowable
service under a nonformula plan of a covered fund plan must not
be affected but such service and covered salary must be used in
the above calculation.
(f) (d) This section shall does not apply to any person
whose final termination from the last public service under a
covered fund plan is prior to May 1, 1975.
(g) (e) For the purpose of computing annuities under this
section the formula percentages accrual rates used by any
covered fund plan, except the public employees police and
fire fund plan and the state patrol retirement fund plan, must
not exceed the percent specified in section 356.19, subdivision
4, per year of service for any year of service or fraction
thereof. The formula percentage accrual rate used by the public
employees police and fire fund plan and the state patrol
retirement fund plan must not exceed the percent specified in
section 356.19, subdivision 6, per year of service for any year
of service or fraction thereof. The formula percentage accrual
rate or rates used by the legislators retirement plan and the
elective state officers retirement plan must not exceed 2.5
percent, but this limit does not apply to the adjustment
provided under section 3A.02, subdivision 1, paragraph (c), or
352C.031, paragraph (b).
(h) (f) Any period of time for which a person has credit in
more than one of the covered funds plans must be used only once
for the purpose of determining total allowable service.
(i) (g) If the period of duplicated service credit is more
than six months one-half year, or the person has credit for more
than six months one-half year, with each of the funds plans,
each fund shall plan must apply its formula to a prorated
service credit for the period of duplicated service based on a
fraction of the salary on which deductions were paid to that
fund for the period divided by the total salary on which
deductions were paid to all funds plans for the period.
(j) (h) If the period of duplicated service credit is less
than six months one-half year, or when added to other service
credit with that fund plan is less than six months one-half
year, the service credit must be ignored and a refund of
contributions made to the person in accord with that fund's
plan's refund provisions.
Sec. 45. [356.90] [COMBINED PAYMENT.]
(a) The public employees retirement association and the
Minnesota state retirement system are permitted to combine
payments to retirees. The total payment must be equal to the
amount that is payable if payments were kept separate. The
retiree must agree, in writing, to have the payment combined.
(b) Each plan must calculate the benefit amounts under the
laws governing the plan and the required reserves and future
mortality losses or gains must be paid or accrued to the plan
from which the service was earned. Each plan must account for
their portion of the payment separately, and there may be no
additional liabilities realized by either fund.
(c) The fund making payment would be responsible for
issuing one payment, making address changes, tax withholding
changes, and other administrative functions needed to process
the payment.
Sec. 46. [INSTRUCTION TO REVISOR.]
The revisor of statutes shall change the term "six months"
to "one-half year" wherever it appears in Minnesota Statutes,
sections 356.302 and 356.303.
Sec. 47. [REPEALER.]
Minnesota Statutes 1998, sections 353.024; and 354.52,
subdivision 2, are repealed.
Sec. 48. [EFFECTIVE DATE.]
(a) Sections 1 to 47 are effective on July 1, 2000.
(b) Section 26 is not intended to increase or decrease any
surviving spouse benefit compared to the surviving spouse
benefit payable immediately prior to July 1, 2000.
ARTICLE 4
MILITARY SERVICE CREDIT
PURCHASE AUTHORIZATION
Section 1. [352.275] [UNCREDITED MILITARY SERVICE CREDIT
PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
state employee who has at least three years of allowable service
with the Minnesota state retirement system and who performed
service in the United States armed forces before becoming a
state employee, or who failed to obtain service credit for a
military leave of absence under section 352.27, is entitled to
purchase allowable service credit for the initial period of
enlistment, induction, or call to active duty without any
voluntary extension by making payment under section 356.55 if
the employee is not entitled to receive a current or deferred
retirement annuity from a United States armed forces pension
plan and has not purchased service credit from any other defined
benefit public employee pension plan for the same period of
service.
Subd. 2. [APPLICATION AND DOCUMENTATION.] An employee who
desires to purchase service credit under subdivision 1 must
apply with the executive director to make the purchase. The
application must include all necessary documentation of the
employee's qualifications to make the purchase, signed written
permission to allow the executive director to request and
receive necessary verification of applicable facts and
eligibility requirements, and any other relevant information
that the executive director may require.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit
for the purchase period must be granted by the Minnesota state
retirement system to the purchasing employee upon receipt of the
purchase payment amount. Payment must be made before the
employee's effective date of retirement.
Sec. 2. Minnesota Statutes 1998, section 352B.01, is
amended by adding a subdivision to read:
Subd. 3a. [UNCREDITED MILITARY SERVICE CREDIT
PURCHASE.] (a) A member who has at least three years of
allowable service with the state patrol retirement plan under
subdivision 3 and who performed service in the United States
armed forces before becoming a member is entitled to purchase
allowable service credit for the initial period of enlistment,
induction, or call to active duty without any voluntary
extension by making payment under section 356.55, if the
employee is not entitled to receive a current or deferred
retirement annuity from a United States armed forces pension
plan and has not purchased service credit from any other defined
benefit public employee pension plan for the same period of
service.
(b) A member who desires to purchase service credit under
paragraph (a) must apply with the executive director to make the
purchase. The application must include all necessary
documentation of the member's qualifications to make the
purchase, signed written permission to allow the executive
director to request and receive necessary verification of
applicable facts and eligibility requirements, and any other
relevant information that the executive director may require.
(c) Allowable service credit for the purchase period must
be granted by the state patrol retirement plan to the purchasing
employee upon receipt of the purchase payment amount. Payment
must be made before the effective date of retirement of the
member.
Sec. 3. Minnesota Statutes 1998, section 353.01, is
amended by adding a subdivision to read:
Subd. 16a. [UNCREDITED MILITARY SERVICE CREDIT PURCHASE.]
(a) A public employee who has at least three years of allowable
service with the public employees retirement association or the
public employees police and fire plan and who performed service
in the United States armed forces before becoming a public
employee, or who failed to obtain service credit for a military
leave of absence under subdivision 16, paragraph (h), is
entitled to purchase allowable service credit for the initial
period of enlistment, induction, or call to active duty without
any voluntary extension by making payment under section 356.55
if the public employee is not entitled to receive a current or
deferred retirement annuity from a United States armed forces
pension plan and has not purchased service credit from any other
defined benefit public employee pension plan for the same period
of service.
(b) A public employee who desires to purchase service
credit under paragraph (a) must apply with the executive
director to make the purchase. The application must include all
necessary documentation of the public employee's qualifications
to make the purchase, signed written permission to allow the
executive director to request and receive necessary verification
of applicable facts and eligibility requirements, and any other
relevant information that the executive director may require.
(c) Allowable service credit for the purchase period must
be granted by the public employees association or the public
employees police and fire plan, whichever applies, to the
purchasing public employee upon receipt of the purchase payment
amount. Payment must be made before the effective date of
retirement of the public employee.
Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.]
(a) Sections 1, 2, and 3 are effective on the day following
final enactment.
(b) Sections 1, 2, and 3 are repealed on May 16, 2003.
ARTICLE 5
RETIREMENT HEALTH CARE PROVISIONS
Section 1. [POSTRETIREMENT AND ACTIVE EMPLOYEE HEALTH CARE
TASK FORCE.]
(a) The commissioner of employee relations shall convene a
task force on postretirement and active employee health care.
The task force shall identify strategies for providing
postretirement and active employee health care coverage for
public employees and make recommendations regarding the most
appropriate and efficient manner for providing postretirement
and active employee health care.
(b) One-half of the task force membership must be composed
of employees and the other half of the membership must be
composed of employers. The task force must include, but is not
limited to, the following:
(1) a representative of the department of employee
relations;
(2) a representative of the Minnesota state retirement
system;
(3) a representative of the teachers retirement
association;
(4) a representative of the public employees retirement
association;
(5) a representative of the first class city teacher
retirement fund associations;
(6) a representative of the first class city police and
fire department relief associations;
(7) a representative of the Minneapolis employees
retirement fund;
(8) a representative of the legislative coordinating
commission subcommittee on employee relations;
(9) one representative each from the Minnesota school
boards association, Minnesota service cooperatives, the
association of Minnesota counties, the Minnesota association of
townships, and the league of Minnesota cities;
(10) representatives of the exclusive representatives of
affected public employees; and
(11) representatives of major public employers.
(c) The task force shall report its findings and
recommendations to the legislature by November 15, 2000. The
report shall address:
(1) alternative methods of providing and paying for
postretirement and active employee health care;
(2) the estimated cost of providing postretirement and
active employee health care under various alternatives,
including statewide, regional, or market alternatives;
(3) the most efficient administrative structure for
providing for postretirement and active employee health care;
and
(4) issues of adverse selection, cost containment, consumer
choice, and options for dealing with other employee concerns.
(d) The task force shall conduct the study and assemble
data in a manner that will provide for the ability to conduct
analysis for subsets of the groups being studied by employer and
employee types.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
ARTICLE 6
MSRS-CORRECTIONAL PLAN MEMBERSHIP
INCLUSIONS
Section 1. Minnesota Statutes 1998, section 352.91,
subdivision 3c, is amended to read:
Subd. 3c. [NURSING PERSONNEL.] (a) "Covered correctional
service" means service by a state employee in one of the
employment positions at a correctional facility or at the
Minnesota security hospital specified in paragraph (b), provided
that at least 75 percent of the employee's working time is spent
in direct contact with inmates or patients and the fact of this
direct contact is certified to the executive director by the
appropriate commissioner, unless the person elects to retain the
current retirement coverage under Laws 1996, chapter 408,
article 8, section 21.
(b) The employment positions are as follows:
(1) registered nurse - senior;
(2) registered nurse;
(3) registered nurse - principal; and
(4) licensed practical nurse 2; and
(5) registered nurse practitioner.
Sec. 2. Minnesota Statutes 1998, section 352.91,
subdivision 3d, is amended to read:
Subd. 3d. [OTHER CORRECTIONAL PERSONNEL.] (a) "Covered
correctional service" means service by a state employee in one
of the employment positions at a correctional facility or at the
Minnesota security hospital specified in paragraph (b), provided
that at least 75 percent of the employee's working time is spent
in direct contact with inmates or patients and the fact of this
direct contact is certified to the executive director by the
appropriate commissioner, unless the person elects to retain the
current retirement coverage under Laws 1996, chapter 408,
article 8, section 21.
(b) The employment positions are as follows: baker,
chemical dependency counselor supervisor, chief cook, cook, cook
coordinator, corrections behavior therapist, corrections
behavior therapist specialist, corrections parent education
coordinator, corrections security caseworker, corrections
security caseworker career, corrections teaching assistant,
dentist, electrician supervisor, general repair worker,
library/information research services specialist,
library/information research services specialist senior, plumber
supervisor, psychologist 3, recreation therapist, recreation
therapist coordinator, recreation program assistant, recreation
therapist senior, stores clerk senior, water treatment plant
operator, work therapy technician, work therapy assistant, work
therapy program coordinator.
(c) "Covered correctional service" also means service as
the director or as an assistant group supervisor of the
Phoenix/Pomiga treatment/behavior change program of the
department of corrections.
Sec. 3. Minnesota Statutes 1998, section 352.91, is
amended by adding a subdivision to read:
Subd. 3f. [ADDITIONAL DEPARTMENT OF HUMAN SERVICES
PERSONNEL.] (a) "Covered correctional service" means service by
a state employee in one of the employment positions specified in
paragraph (b) at the Minnesota security hospital or the
Minnesota sexual psychopathic personality treatment center,
provided that at least 75 percent of the employee's working time
is spent in direct contact with patients and the fact of this
direct contact is certified to the executive director by the
commissioner of human services.
(b) The employment positions are:
(1) behavior analyst 2;
(2) licensed practical nurse 1;
(3) office and administrative specialist senior;
(4) psychologist 2;
(5) social worker specialist;
(6) behavior analyst 3; and
(7) social worker senior.
Sec. 4. Minnesota Statutes 1998, section 352.91, is
amended by adding a subdivision to read:
Subd. 3g. [ADDITIONAL CORRECTIONS DEPARTMENT
PERSONNEL.] (a) "Covered correctional service" means service by
a state employee in one of the employment positions at the
designated Minnesota correctional facility specified in
paragraph (b), provided that at least 75 percent of the
employee's working time is spent in direct contact with inmates
and the fact of this direct contact is certified to the
executive director by the commissioner of corrections.
(b) The employment positions and correctional facilities
are:
(1) corrections discipline unit supervisor, at the
Minnesota correctional facility-Faribault, the Minnesota
correctional facility-Lino Lakes, the Minnesota correctional
facility-Oak Park Heights, and the Minnesota correctional
facility-St. Cloud;
(2) dental assistant registered, at the Minnesota
correctional facility-Faribault, the Minnesota correctional
facility-Lino Lakes, the Minnesota correctional facility-Moose
Lake, the Minnesota correctional facility-Oak Park Heights, and
the Minnesota correctional facility-Red Wing;
(3) dental hygienist, at the Minnesota correctional
facility-Shakopee;
(4) psychologist 2, at the Minnesota correctional
facility-Faribault, the Minnesota correctional facility-Lino
Lakes, the Minnesota correctional facility-Moose Lake, the
Minnesota correctional facility-Oak Park Heights, the Minnesota
correctional facility-Red Wing, the Minnesota correctional
facility-St. Cloud, the Minnesota correctional
facility-Shakopee, and the Minnesota correctional
facility-Stillwater; and
(5) sentencing to service crew leader involved with the
inmate community work crew program, at the Minnesota
correctional facility-Faribault and the Minnesota correctional
facility-Lino Lakes.
Sec. 5. [COVERAGE FOR PRIOR STATE SERVICE FOR CERTAIN
PERSONS.]
Subdivision 1. [ELECTION OF PRIOR STATE SERVICE
COVERAGE.] (a) An employee who has future retirement coverage
transferred to the correctional employees retirement plan under
section 1, 3, or 4, or an employee who has retirement coverage
for past correctional service transferred to the correctional
employees retirement plan under sections 1 to 4, is entitled to
elect to obtain prior service credit for eligible state service
performed after June 30, 1975, and before the first day of the
first full pay period beginning after June 30, 2000, with the
department of corrections or the department of human services at
the Minnesota security hospital or the Minnesota sexual
psychopathic personality treatment center. All eligible prior
service credit must be purchased.
(b) For purposes of section 1, 3, or 4, eligible state
service with the department of corrections or the department of
human services is any prior period of continuous service after
June 30, 1975, performed as an employee of the department of
corrections or the department of human services that would have
been eligible for the correctional employees retirement plan
coverage under section 1, 3, or 4 if that prior service had been
performed after the first day of the first full pay period
beginning after June 30, 2000, rather than before that date.
Service is continuous if there has been no period of
discontinuation of eligible state service for a period greater
than 180 calendar days. For purposes of section 2, paragraph
(c), eligible state service is any period of service on or after
the date which the employee started employment with the Phoenix
treatment/behavior change program in a position specified in
Minnesota Statutes, section 352.91, subdivision 3d, paragraph
(c), in which at least 75 percent of the employee's working time
is determined to have been spent in direct contact with program
participants, and the date the employee joined the correctional
employees plan.
(c) The commissioner of corrections or the commissioner of
human services shall certify eligible state service to the
executive director of the Minnesota state retirement system.
(d) A covered correctional plan employee employed on July
1, 2000, who has past service in a job classification covered
under sections 1 to 4 on July 1, 2000, is entitled to purchase
the past service if the applicable department certifies that the
employee met the eligibility requirements for coverage. The
employee shall pay the difference between the employee
contributions actually paid during the period and what should
have been paid under the correctional employees retirement
plan. Payment for past service must be completed by June 30,
2002.
Subd. 2. [PAYMENT FOR PAST SERVICE.] (a) An employee
electing to obtain prior service credit under subdivision 1 must
pay an additional employee contribution for that prior service.
The additional member contribution is the contribution
differential percentage applied to the actual salary paid to the
employee during the period of the prior eligible state service,
plus interest at the rate of six percent per annum, compounded
annually. The contribution differential percentage is the
difference between 4.9 percent of salary and the applicable
employee contribution rate of the general state employees
retirement plan during the prior eligible state service.
(b) The additional member contribution must be paid only in
a lump sum. Payment must accompany the election to obtain prior
service credit. No election of payment may be made by the
person or accepted by the executive director after June 30, 2002.
Subd. 3. [TRANSFER OF ASSETS.] Assets must be transferred
from the general state employees retirement plan to the
correctional employees retirement plan, in an amount equal to
the present value of benefits earned under the general employees
retirement plan for each employee transferring to the
correctional employees retirement plan, as determined by the
actuary retained by the legislative commission on pensions and
retirement in accordance with Minnesota Statutes, section
356.215. The transfer of assets must be made within 45 days
after the employee elects to transfer coverage to the
correctional employees retirement plan.
Subd. 4. [EFFECT OF THE ASSET TRANSFER.] Upon transfer of
assets in subdivision 3, service credit in the general state
employees plan of the Minnesota state retirement system is
forfeited and may not be reinstated. The service credit and
transferred assets must be credited to the correctional
employees retirement plan.
Subd. 5. [PAYMENT OF ACTUARIAL CALCULATION COSTS.] (a) The
expense of the legislative commission on pensions and retirement
attributable to the calculations of its consulting actuary under
subdivision 3 must be reimbursed by the department of
corrections and the department of human services.
(b) The expense reimbursement under paragraph (a) must be
allocated between the two departments in a manner that is
jointly agreeable. If no allocation procedure is developed by
the commissioner of corrections and the commissioner of human
services, the cost must be allocated on an equally shared basis.
(c) Payment of the expense reimbursement to the legislative
commission on pensions and retirement is due 30 days after the
receipt of the reimbursement request from the executive director
of the legislative commission on pensions and retirement.
Sec. 6. [REPEALER.]
Minnesota Statutes 1998, section 352.91, subdivision 4, is
repealed.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 6 are effective July 1, 2000.
ARTICLE 7
PERA AND PERA-P&F MEMBERSHIP INCLUSIONS
Section 1. Minnesota Statutes 1999 Supplement, section
353.01, subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
employees shall not participate as members of the association
with retirement coverage by the public employees retirement plan
or the public employees police and fire retirement plan:
(1) elected public officers, or persons appointed to fill a
vacancy in an elective office, who do not elect to participate
in the association by filing an application for membership;
(2) election officers;
(3) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of a
governmental subdivision;
(4) employees who are hired for a temporary position under
subdivision 12a, and employees who resign from a nontemporary
position and accept a temporary position within 30 days in the
same governmental subdivision, but not those employees who are
hired for an unlimited period but are serving a probationary
period. If the period of employment extends beyond six
consecutive months and the employee earns more than $425 from
one governmental subdivision in any one calendar month, the
department head shall report the employee for membership and
require employee deductions be made on behalf of the employee
under section 353.27, subdivision 4.
Membership eligibility of an employee who resigns or is
dismissed from a temporary position and within 30 days accepts
another temporary position in the same governmental subdivision
is determined on the total length of employment rather than on
each separate position. Membership eligibility of an employee
who holds concurrent temporary and nontemporary positions in one
governmental subdivision is determined by the length of
employment and salary of each separate position;
(5) employees whose actual salary from one governmental
subdivision does not exceed $425 per month, or whose annual
salary from one governmental subdivision does not exceed a
stipulation prepared in advance, in writing, that the salary
must not exceed $5,100 per calendar year or per school year for
school employees for employment expected to be of a full year's
duration or more than the prorated portion of $5,100 per
employment period for employment expected to be of less than a
full year's duration;
(6) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(7) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota state retirement system, the teachers retirement
association, the Duluth teachers retirement fund association,
the Minneapolis teachers retirement association, the St. Paul
teachers retirement fund association, the Minneapolis employees
retirement fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the public employees retirement association, or any local
police or firefighters consolidation account but who have not
elected the type of benefit coverage provided by the public
employees police and fire fund under sections 353A.01 to
353A.10, or any persons covered by section 353.665, subdivision
4, 5, or 6, who have not elected public employees police and
fire plan benefit coverage. This clause must not be construed
to prevent a person from being a member of and contributing to
the public employees retirement association and also belonging
to and contributing to another public pension fund for other
service occurring during the same period of time. A person who
meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time
becomes a member of the association unless contributions are
made to another public retirement fund on the salary based on
the other service or to the teachers retirement association by a
teacher as defined in section 354.05, subdivision 2;
(8) persons who are excluded from coverage under the
federal Old Age, Survivors, Disability, and Health Insurance
Program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended through
January 1, 1987, if no irrevocable election of coverage has been
made under section 3121(r) of the Internal Revenue Code of 1954,
as amended;
(9) full-time students who are enrolled and are regularly
attending classes at an accredited school, college, or
university and who are part-time employees as defined by a
governmental subdivision;
(10) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or
residency program in public hospitals;
(11) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(12) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(13) foreign citizens working for a governmental
subdivision with a work permit of less than three years, or an
H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends
beyond the three-year period, the foreign citizens are eligible
for membership from the date of the extension;
(14) public hospital employees who elected not to
participate as members of the association before 1972 and who
did not elect to participate from July 1, 1988, to October 1,
1988;
(15) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the public employees retirement association and
participants in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment service other than
service as volunteer ambulance service personnel;
(16) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the public employees retirement association and a
participant in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment activities other
than those as a volunteer firefighter; and
(17) pipefitters and associated trades personnel employed
by independent school district No. 625, St. Paul, with coverage
by the pipefitters local 455 pension plan under a collective
bargaining agreement who were either first employed after May 1,
1997, or, if first employed before May 2, 1997, elected to be
excluded under Laws 1997, chapter 241, article 2, section 12;
and
(18) electrical workers, plumbers, carpenters, and
associated trades personnel employed by independent school
district No. 625, St. Paul, or the city of St. Paul, with
coverage by the electrical workers local 110 pension plan, the
united association plumbers local 34 pension plan, or the
carpenters local 87 pension plan under a collective bargaining
agreement who were either first employed after May 1, 2000, or,
if first employed before May 2, 2000, elected to be excluded
under section 5.
Sec. 2. Minnesota Statutes 1998, section 353.64, is
amended by adding a subdivision to read:
Subd. 11. [PENSION COVERAGE FOR CERTAIN TRIBAL POLICE
OFFICERS EXERCISING STATE ARREST POWERS.] (a) The governing body
of a tribal police department which is exercising state arrest
powers under section 626.90, 626.91, 626.92, or 626.93 may
request by resolution to the executive director that its police
officers be considered public employees under section 353.01,
subdivision 2, be considered a police officer under section
353.64, subdivision 1, and become members of the public
employees police and fire retirement plan and that the tribal
police department be considered a governmental subdivision under
section 353.01, subdivision 6.
(b) The executive director of the association must approve
the request by a tribal police department under paragraph (a) if
a ruling made by the federal Internal Revenue Service provides
that:
(1) the tribal police department is an agency or
instrumentality of the state of Minnesota for purposes of
enforcing state law; and
(2) contributions made by the tribal police department to a
retirement plan on behalf of employees of the tribal police
department are contributions to a governmental plan within the
meaning of section 414(d) of the federal Internal Revenue Code.
(c) Following the approval of the request by the executive
director, the head of the police department or that person's
designee must immediately report for membership in the police
and fire fund a person who is employed as a full-time or
part-time police officer in a position that meets the conditions
in sections 353.01, subdivision 2a, and 353.64, subdivisions 1
and 2. The police department head or that person's designee
must deduct the employee contributions from the salary of each
eligible police officer as required by section 353.65,
subdivision 2, and make the employer contributions required by
section 353.65, subdivision 3. The head of the police
department or that person's designee must meet the reporting
requirements in section 353.65, subdivision 4.
Sec. 3. [353.666] [PAST SERVICE CREDIT FOR CERTAIN MEMBERS
EXTENDED COVERAGE.]
(a) A member to whom public employees police and fire
retirement plan membership was extended under section 353.64,
subdivision 11, may receive retroactive service credit in the
public employees police and fire retirement plan for service as
a tribal police officer rendered before the effective date of
membership of the tribal police department employee in the
police and fire fund, provided that the employee and the police
department did not make contributions into a qualified
tax-deferred retirement plan for that employment period.
(b) The request for retroactive coverage must be in writing
and must be filed with the association within 60 days of when
police and fire fund membership commenced. The prior service
credit purchase payment is governed by section 356.55, except
that the member must pay an amount equal to the employee salary
deductions. The employee salary deductions for the retroactive
period must be based on the police and fire pension plan member
contribution rates in effect when the service was rendered and
applied to the salary amount that was earned and paid to the
police officer. The employer must pay the balance of the prior
service credit purchase payment amount within 30 days of the
member contribution payment.
Sec. 4. Laws 1965, chapter 705, section 1, subdivision 4,
as amended by Laws 1995, First Special Session chapter 3,
article 8, section 14, and Laws 1997, chapter 241, article 2,
section 8, is amended to read:
Subd. 4. [INDEPENDENT SCHOOL DISTRICT NO. 625;
APPLICABILITY OF CERTAIN LAWS.] (a) As of July 1, 1965, the
organization, operation, maintenance and conduct of the affairs
of the converted district shall be governed by general laws
relating to independent districts, except as otherwise provided
in Extra Session Laws 1959, Chapter 71, as amended, and all
special laws and charter provisions relating only to the
converted district are repealed.
(b) Where an existing pension law is applicable to
employees of the special district, such law shall continue to be
applicable in the same manner and to the same extent to
employees of the converted district. Notwithstanding this
requirement, pipefitters and associated trades personnel with
coverage by the pipefitters local 455 pension plan under a
collective bargaining agreement who either were first employed
after May 1, 1997, or, if first employed before May 2, 1997,
elected exclusion from coverage under section 12 and electrical
workers, carpenters, and associated trades personnel with
coverage by the electrical workers local 110 pension plan, the
united association plumbers local 34 pension plan, or the
carpenters local 87 pension plan under a collective bargaining
agreement who either were first employed after May 1, 2000, or,
if first employed before May 2, 2000, elected exclusion from
coverage under section 5, are not covered by the public
employees retirement association.
(c) General laws applicable to independent school districts
wholly or partly within cities of the first class shall not be
applicable to the converted district.
(d) The provision of the statutes applicable only to
teachers retirement fund associations in cities of the first
class, limiting the amount of annuity to be paid from public
funds, limiting the taxes to be levied to carry out the plan of
such associations, and limiting the amount of annuities to be
paid to beneficiaries shall not be applicable to such converted
district, but the statutes applicable to such special district
prior to the conversion shall continue to be applicable and the
pension plan in operation prior to the conversion shall continue
in operation until changed in accordance with law, and the
teacher tenure law applicable to the special district shall
continue to apply to the converted district in the same manner
and to the same extent to teachers in the converted district;
provided further, where existing civil service provisions of any
law or charter are applicable to special district employees,
such provision may continue to be applicable in the same manner
and to the same extent to employees of the converted district,
unless the board and city governing body each adopt a resolution
declaring that civil service bureau (city human resources
department) functions would be more efficiently and effectively
administered separately in each jurisdiction. Notwithstanding
any contrary provision of Extra Session Laws 1959, Chapter 71,
as amended, if there was in the special district a teachers
retirement fund association operating and existing under the
provisions of Laws 1909, Chapter 343, and all acts amendatory
thereof, then such teachers retirement fund association shall
continue to exist and operate in the converted district under
and to be subject to the provisions of Laws 1909, Chapter 343,
and all acts amendatory thereof, to the same extent and in the
same manner as before the conversion, and, without limiting the
generality of the foregoing, such teachers retirement fund
association shall continue, after the conversion as before the
conversion, to certify to the same authorities the amount
necessary to raise by taxation in order to carry out its
retirement plan, and it shall continue, after the conversion as
before the conversion, to be the duty of said authorities to
include in the tax levy for the ensuing year a tax in addition
to all other taxes sufficient to produce so much of the sums so
certified as said authorities shall approve, and such teachers
retirement fund association shall not be subject after the
conversion to any limitation on payments to any beneficiary from
public funds or on taxes to be levied to carry out the plan of
such association to which it was not subject before the
conversion.
Sec. 5. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN
TRADES PERSONNEL.]
Subdivision 1. [EXCLUSION ELECTION.] (a) An electrical
worker, plumber, carpenter, or an associated trades person who
is employed by independent school district No. 625, St. Paul, or
the city of St. Paul, on the effective date of this section and
who has pension coverage by the electrical workers 110 pension
plan, the united association plumbers local 34 pension plan, or
the carpenters local 87 pension plan under a collective
bargaining agreement may elect to be excluded from pension
coverage by the public employees retirement association.
(b) The exclusion election under this section must be made
in writing on a form prescribed by the executive director of the
public employees retirement association and must be filed with
the executive director. The exclusion election is irrevocable.
Authority to make the coverage exclusion expires on January 1,
2001.
Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A
person who has less than three years of allowable service in the
public employees retirement association and who elects the
pension coverage exclusion under subdivision 1 is entitled to
immediately apply for a refund under Minnesota Statutes, section
353.34, subdivisions 1 and 2, following the effective date of
the exclusion election.
Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the
refund under subdivision 2, a person who elects the pension
coverage exclusion under subdivision 1 is entitled to a deferred
retirement annuity under Minnesota Statutes, sections 353.34,
subdivision 3, and 353.71, subdivision 2, based on any length of
allowable service credit under Minnesota Statutes, section
353.01, subdivision 16, to the credit of the person as of the
date of the coverage exclusion election.
Sec. 6. [PERA GENERAL AND PERA P&F; PRIOR SERVICE CREDIT
PURCHASE.]
Subdivision 1. [ELIGIBILITY.] (a) Except as restricted
under subdivision 4, an eligible person described in paragraph
(b) is entitled to purchase allowable service credit for the
period or periods specified in paragraph (d) in the public
employees retirement association general plan. Except as
restricted under subdivision 4, an eligible person described in
paragraph (c) is entitled to purchase allowable service credit
for the period or periods specified in paragraph (d) in the
public employees retirement association police and fire plan.
(b) An eligible person is a person who:
(1) is a full-time salaried employee or permanent part-time
salaried employee of the Spring Lake Park Fire Department,
Incorporated;
(2) became a member of the public employees retirement
association general plan due to that employment on June 1, 1999;
and
(3) was employed by the Spring Lake Park Fire Department,
Incorporated, during all or part of the period from January 1,
1996, to June 1, 1999.
(c) An eligible person is a person who meets requirements
specified in paragraph (b), clauses (1) and (3), and who became
a member of the public employees retirement association police
and fire plan or the public employees retirement association
general plan, whichever applies, due to applicable employment
with the Spring Lake Park Fire Department, Incorporated, on June
1, 1999.
(d) The period or periods eligible for service credit
purchase in the public employees retirement association general
plan or public employees retirement association police and fire
plan, as applicable, is the period or periods from January 1,
1996, to June 1, 1999, during which an eligible individual
described in paragraph (b) or (c), as applicable, provided
service to the Spring Lake Park Fire Department, Incorporated,
which would have been eligible service for coverage by the
applicable public employees retirement association plan if that
service had been provided on or after June 1, 1999, rather than
before.
Subd. 2. [PAYMENT REQUIREMENTS.] Minnesota Statutes,
section 356.55, applies to service credit purchases authorized
under this section.
Subd. 3. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An
eligible person described in subdivision 1, paragraph (b) or
(c), must provide any documentation related to eligibility to
make this service credit purchase required by the executive
director of the public employees retirement association.
(b) Allowable service credit for the purchase period or
periods must be granted in the applicable public employees
retirement association plan on behalf of the eligible person
upon receipt of the prior service credit purchase payment amount.
Subd. 4. [RESTRICTIONS.] (a) An eligible person as
specified in subdivision 1, paragraph (c), is not authorized to
purchase service credit in the public employees retirement
association police and fire plan under this section if the
eligible person, or the eligible person and the Spring Lake Park
Fire Department, Incorporated, made contributions on that
person's behalf to the social security old age insurance program
during all or part of the period from January 1, 1996, to June
1, 1999, and coverage under that program for the applicable
period remains in effect.
(b) If paragraph (a) applies to the eligible person, that
eligible person may purchase service credit under this section
in the public employees retirement association general plan.
(c) If contributions are made by an eligible person
specified in paragraph (a) or by that eligible person and the
Spring Lake Park Fire Department, Incorporated, or a successor
organization, to the social security old age insurance program
after June 1, 1999, due to employment for which coverage in the
public employees retirement association police and fire plan
commenced on June 1, 1999, coverage by the public employees
retirement association police and fire plan terminates and
coverage by the public employees retirement association general
plan commences, if the employment otherwise meets requirements
in law for that coverage. If public employees retirement
association police and fire plan contributions have been
received on or after June 1, 1999, for any periods where
contributions were also made to the social security old age
insurance program as specified in this paragraph, the
contributions to the public employees retirement association
police and fire plan for the applicable period or periods on or
after June 1, 1999, must be treated as contributions made in
error under Minnesota Statutes, section 353.27, subdivision 7a.
Sec. 7. [EFFECTIVE DATE.]
(a) Sections 2 and 3 are effective on July 1, 2000.
(b) Section 6 is effective on the day following final
enactment.
(c) Sections 1, 4, and 5 are effective for electrical
workers, plumbers, and associated trades personnel employed by
independent school district No. 625, St. Paul, on the day
following approval by majority vote of the board of independent
school district No. 625, St. Paul, and compliance with Minnesota
Statutes, section 645.021.
(d) Sections 1, 4, and 5 are effective for electrical
workers, plumbers, and associated trades personnel employed by
the city of St. Paul on the day following approval by majority
vote of the St. Paul city council and compliance with Minnesota
Statutes, section 645.021.
ARTICLE 8
PENSION COVERAGE UPON
EMPLOYMENT PRIVATIZATION
Section 1. Minnesota Statutes 1999 Supplement, section
353F.02, subdivision 5, is amended to read:
Subd. 5. [OTHER PUBLIC EMPLOYING UNIT.] "Other public
employing unit" means:
(1) Metro II, a joint powers organization formed under
section 471.59; and
(2) the St. Paul civic center authority.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the first day of the month next
following certification by the executive director of the public
employees retirement association that the actuarial accrued
liability of the special benefit coverage proposed for extension
to the privatized St. Paul civic center authority employees
under this article does not exceed the actuarial gain otherwise
to be accrued by the public employees retirement association, as
calculated by the consulting actuary retained by the legislative
commission on pensions and retirement. The cost of the
actuarial calculations must be borne by the St. Paul civic
center authority.
ARTICLE 9
FORMER LOCAL POLICE AND FIRE CONSOLIDATION ACCOUNT
MODIFICATIONS AND CORRECTIONS
Section 1. Minnesota Statutes 1999 Supplement, section
423A.02, subdivision 1b, is amended to read:
Subd. 1b. [ADDITIONAL AMORTIZATION STATE AID.] (a)
Annually, on October 1, the commissioner of revenue shall
allocate the additional amortization state aid transferred under
section 69.021, subdivision 11, to:
(1) all police or salaried firefighter relief associations
governed by and in full compliance with the requirements of
section 69.77, that had an unfunded actuarial accrued liability
in the actuarial valuation prepared under sections 356.215 and
356.216 as of the preceding December 31;
(2) all local police or salaried firefighter consolidation
accounts governed by chapter 353A that are certified by the
executive director of the public employees retirement
association as having for the current fiscal year an additional
municipal contribution amount under section 353A.09, subdivision
5, paragraph (b), and that have implemented section 353A.083,
subdivision 1, if the effective date of the consolidation
preceded May 24, 1993, and that have implemented section
353A.083, subdivision 2, if the effective date of the
consolidation preceded June 1, 1995; and
(3) the public employees police and fire fund on behalf of
municipalities that received amortization aid in 1999 and are
required to make an additional municipal contribution under
section 353.665, subdivision 8, for the duration of the required
additional contribution.
(b) The commissioner shall allocate the state aid on the
basis of the proportional share of the relief association or
consolidation account of the total unfunded actuarial accrued
liability of all recipient relief associations and consolidation
accounts as of December 31, 1993, for relief associations, and
as of June 30, 1994, for consolidation accounts.
(c) Beginning October 1, 2000, and annually thereafter, the
commissioner shall allocate the state aid, including any state
aid in excess of the limitation in subdivision 4, on the
following basis of:
(1) 64.5 percent to the public employees police and fire
fund or local consolidation account, whichever applies, on
behalf of municipalities to which section 353.665, subdivision
8, paragraph (b), or 353A.09, subdivision 5, paragraph (b),
apply for distribution in accordance with paragraph (b) and
subject to the limitation in subdivision 4,;
(2) 34.2 percent to the city of Minneapolis to fund any
unfunded actuarial accrued liability in the actuarial valuation
prepared under sections 356.215 and 356.216 as of the preceding
December 31 for the Minneapolis police relief association or the
Minneapolis fire department relief association,; and
(3) 1.3 percent to the city of Virginia to fund any
unfunded actuarial accrued liability in the actuarial valuation
prepared under sections 356.215 and 356.216 as of the preceding
December 31 for the Virginia fire department relief association.
In the event that If there is no unfunded actuarial accrued
liability in both the Minneapolis police relief association and
the Minneapolis fire department relief association as disclosed
in the most recent actuarial valuations for the relief
associations prepared under sections 356.215 and 356.216, the
commissioner shall allocate that 34.2 percent of the aid as
follows: 49 percent to the Minneapolis teachers retirement fund
association, provided that, 21 percent to the St. Paul teachers
retirement fund association, and 30 percent as additional
funding to support minimum fire state aid for volunteer
firefighter relief associations. If there is no unfunded
actuarial accrued liability in the Virginia fire department
relief association as disclosed in the most recent actuarial
valuation for the relief association prepared under sections
356.215 and 356.216, the commissioner shall allocate that 1.3
percent of the aid as follows: 49 percent to the Minneapolis
teachers retirement fund association, 21 percent to the St. Paul
teachers retirement fund association, and 30 percent as
additional funding to support minimum fire state aid for
volunteer firefighter relief associations. The allocation must
be made by the commissioner at the same time and under the same
procedures as specified in subdivision 3. With respect to the
Minneapolis teachers retirement fund association or the St. Paul
teachers retirement fund association, annually, beginning on
July 1, 2005, if a the applicable teacher's association
five-year average time-weighted rate of investment return does
not equal or exceed the performance of a composite portfolio
assumed passively managed (indexed) invested ten percent in cash
equivalents, 60 percent in bonds and similar debt securities,
and 30 percent in domestic stock calculated using the formula
under section 11A.04, clause (11), the aid allocation to that
retirement fund under this section ceases until the five-year
annual rate of investment return equals or exceeds the
performance of a that composite portfolio., 21 percent to the
St. Paul teachers retirement fund association, provided that,
annually, beginning on July 1, 2005, if a teacher's association
five-year average time-weighted rate of investment return does
not equal or exceed the performance of a composite portfolio
assumed passively managed (indexed) invested ten percent in cash
equivalents, 60 percent bonds and similar debt securities, and
30 percent in domestic stock calculated using the formula under
section 11A.04, clause (11), the aid under this section ceases
until the five-year annual rate of return equals or exceeds the
performance of a composite portfolio, and 30 percent as
additional funding to support minimum fire state aid for
volunteer firefighter relief associations, with the allocation
made at the same time and under the same procedures in
subdivision 3. In the event there is no actuarial accrued
unfunded liability in the Virginia fire department relief
association, the commissioner shall allocate that 1.3 percent of
the aid as follows: 49 percent to the Minneapolis teachers
retirement fund association, provided that, annually, beginning
on July 1, 2005, if a teacher's association five-year average
time-weighted rate of investment return does not equal or exceed
the performance of a composite portfolio assumed passively
managed (indexed) invested ten percent in cash equivalents, 60
percent bonds and similar debt securities, and 30 percent in
domestic stock calculated using the formula under section
11A.04, clause (11), the aid under this section ceases until the
five-year annual rate of return equals or exceeds the
performance of a composite portfolio, 21 percent to the St. Paul
teachers retirement fund association, provided that, annually,
beginning on July 1, 2005, if a teacher's association five-year
average time-weighted rate of investment return does not equal
or exceed the performance of a composite portfolio assumed
passively managed (indexed) invested ten percent in cash
equivalents, 60 percent bonds and similar debt securities, and
30 percent in domestic stock calculated using the formula under
section 11A.04, clause (11), the aid under this section ceases
until the five-year annual rate of return equals or exceeds the
performance of a composite portfolio, and 30 percent as
additional funding to support minimum fire state aid for
volunteer firefighter relief associations, with the allocation
made at the same time and under the same procedures in
subdivision 3.
(d) Additional amortization state aid payable to the public
employees retirement association on behalf of a municipality
must be credited by the executive director of the public
employees retirement association against any additional
municipal contribution to which the applicable municipality is
obligated to make under section 353A.09, subdivision 5, or under
section 353.665, subdivision 8.
(e) The amounts required under this subdivision are
annually appropriated to the commissioner of revenue.
Sec. 2. Minnesota Statutes 1999 Supplement, section
423A.02, subdivision 4, is amended to read:
Subd. 4. [LIMIT ON CERTAIN TOTAL AID AMOUNTS.] (a) The
total of amortization aid, supplemental amortization aid, and
additional amortization aid under this section payable to the
executive director of the public employees retirement
association on behalf of a municipality to which section
353.665, subdivision 8, paragraph (b), applies, may not exceed
the amount of the additional municipal contribution payable by
an individual municipality under section 353.665, subdivision 8,
paragraph (b).
(b) Any aid amount in excess of the limit under this
subdivision for an individual municipality must be redistributed
to the other municipalities to which section 353.665,
subdivision 8, paragraph (b), applies. The excess aid must be
distributed in proportion to each municipality's additional
municipal contribution under section 353.665, subdivision 8,
paragraph (b).
(c) When the total aid for each municipality under this
section equals the limit under paragraph (a), any aid in excess
of the limit must be redistributed under subdivisions 1, 1a, and
subdivision 1b.
Sec. 3. Minnesota Statutes 1999 Supplement, section
423A.02, subdivision 5, is amended to read:
Subd. 5. [TERMINATION OF STATE AID PROGRAMS.] The
amortization state aid, supplemental amortization state aid, and
additional amortization state aid programs terminate as of the
December 31, next following the date of the actuarial valuation
when the assets of the Minneapolis teachers retirement fund
association equal the actuarial accrued liability of that plan
and when the assets of the St. Paul teachers retirement fund
association equal the actuarial accrued liability of that
plan or December 31, 2009, whichever is later.
Sec. 4. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; ONE-TIME
SPECIAL OPTIONAL ANNUITY ELECTION FOR CERTAIN FORMER
CONSOLIDATION ACCOUNT RETIREES.]
Subdivision 1. [ELIGIBILITY.] An individual who was a
deferred annuitant, a service pension annuitant, or who was
receiving disability benefits from the relief association on the
effective date of the consolidation of the applicable local
police or paid firefighter relief association, and who chose
annual adjustments applicable to the public employees retirement
association police and fire plan in elections provided under
Minnesota Statutes, section 353.615, subdivisions 5 and 6 or
353A.08, subdivision 1 or 2, may elect an optional annuity form
under subdivision 2 to provide additional payments to a
surviving spouse.
Subd. 2. [OPTIONAL ANNUITIES.] The optional annuity form
may be either a 15 percent or a 25 percent joint and survivor
annuity and is without reinstatement in the event of the
surviving spouse predeceasing the member. The optional annuity
forms must be actuarially equivalent to the service pension
currently paid to the retired consolidated member without
consideration of the value of survivor benefits payable under
Minnesota Statutes, section 353B.11, and must be based upon the
age of the member and the age of the spouse of the member as of
October 1, 2000.
Subd. 3. [ADDITIONAL SURVIVOR BENEFIT.] An optional
annuity under subdivision 2 is payable in addition to any
applicable survivor benefit payable under Minnesota Statutes,
section 353.11. An optional annuity under subdivision 2 when
combined with applicable survivor benefits under Minnesota
Statutes, section 353.11, must not exceed the benefit payable to
the deceased service or disability pensioner immediately prior
to death.
Subd. 4. [ELECTION.] (a) To be valid, an optional annuity
form under subdivision 2 must be elected in writing on a form
prescribed by the executive director of the public employees
retirement association and signed by the eligible service
pensioner or disabilitant before October 1, 2000. Once
selected, the optional annuity is irrevocable.
(b) The executive director of the public employees
retirement association shall provide counseling to members
regarding the election of an optional annuity form under this
section, including the impact on current benefit levels payable
if an option annuity form is elected.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final
enactment.
ARTICLE 10
PERA LOCAL CORRECTIONAL RETIREMENT
PLAN MODIFICATIONS
Section 1. Minnesota Statutes 1999 Supplement, section
353E.02, is amended to read:
353E.02 [CORRECTIONAL SERVICE EMPLOYEES RETIREMENT PLAN
MEMBERSHIP.]
Subdivision 1. [RETIREMENT COVERAGE.] Local government
correctional service employees are members of the local
government correctional service retirement plan established by
this chapter.
Subd. 2. [LOCAL GOVERNMENT CORRECTIONAL SERVICE
EMPLOYEE.] (a) A local government correctional service employee,
for purposes of subdivision 1, is a person who whom the employer
certifies:
(1) is employed in a county-administered jail or
correctional facility or in a regional correctional facility
administered by multiple counties county correctional
institution as a correctional guard or officer, a joint
jailer/dispatcher, or as a supervisor of correctional guards or
officers or of joint jailers/dispatchers;
(2) spends at least 95 percent of the employee's working
time in direct contact with persons confined in the jail or
facility, as certified in writing, in advance, by the employer
to the executive director of the association is directly
responsible for the direct security, custody, and control of the
county correctional institution and its inmates;
(3) is expected to respond to incidents within the county
correctional institution as part of the person's regular
employment duties and is trained to do so; and
(3) (4) is a "public employee" as defined in section
353.01, but is not a member of the public employees police and
fire fund.
(b) The certification required under paragraph (a) must be
made in writing on a form prescribed by the executive director
of the public employees retirement association.
(c) A person who was a member of the local government
correctional service retirement plan on the day before the
effective date of this section remains a member of the plan
after the effective date of this section for the duration of the
person's employment in that county correctional institution
position, even if the person's subsequent service in this
position does not meet the requirements set forth in paragraph
(a).
Subd. 3. [COUNTY CORRECTIONAL INSTITUTION.] A county
correctional institution is:
(1) a jail administered by a county;
(2) a correctional facility administered by a county; or
(3) a regional correctional facility administered by or on
behalf of multiple counties.
Sec. 2. Minnesota Statutes 1999 Supplement, section
353E.03, is amended to read:
353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.]
Subdivision 1. [MEMBER CONTRIBUTIONS.] A local government
correctional service employee shall make an employee
contribution in an amount equal to 5.83 6.01 percent of salary.
Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall
contribute for a local government correctional service employee
an amount equal to 8.75 9.02 percent of salary.
Sec. 3. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
Section 2 is effective on the first day of the first full pay
period beginning after January 1, 2002.
ARTICLE 11
TEACHER RETIREMENT AND
RELATED CHANGES
Section 1. Minnesota Statutes 1998, section 122A.46,
subdivision 1, is amended to read:
Subdivision 1. [TEACHERS DEFINED.] As used in this
section, the term "teachers" shall have the meaning given it in
section 122A.15, subdivision 1. The term "teachers" also
includes any teacher in the classifications included in the
professional state residential instructional unit, under section
179A.10, subdivision 2, clause (16).
Sec. 2. Minnesota Statutes 1998, section 122A.46, is
amended by adding a subdivision to read:
Subd. 1a. [APPOINTING AUTHORITY.] For purposes of teachers
included in the professional state residential instructional
unit, the term "school board" includes the appointing authority
as defined in section 43A.02, subdivision 5.
Sec. 3. Minnesota Statutes 1999 Supplement, section
354.536, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement association is entitled to purchase
up to ten years of allowable and formula service credit for
nonprofit community-based corporation, private, or parochial
school teaching service by making payment under section 356.55,
provided that the teacher is not entitled to receive a current
or deferred age and service retirement annuity or disability
benefit from the applicable employer-sponsored pension plan and
has not purchased service credit from the applicable defined
benefit employer-sponsored pension plan for that service.
Sec. 4. [354A.051] [MTRFA COVERAGE FOR UNION BUSINESS
AGENTS.]
Subdivision 1. [AUTHORIZATION.] A member of the
Minneapolis teachers retirement fund association on a leave of
absence from a teaching position with special school district
No. 1, and who is employed by an employee organization
representing Minneapolis teachers retirement fund association
active members, may elect under subdivision 2 to be a member of
the coordinated program of the association for service with that
employee organization, subject to the limitations specified in
subdivisions 3, 4, and 5.
Subd. 2. [ELECTION.] Except as indicated in subdivision 3,
a person described in subdivision 1 must be covered by the
Minneapolis teachers retirement fund association coordinated
program for employment with the employer organization if the
person files a written election to be covered with the executive
director of the teachers retirement fund association within 90
days of first being employed by the employee organization, or
within 90 days of the start of the first leave of absence due to
service as an employee organization business agent, whichever is
later.
Subd. 3. [WAIVER OF LEAVE COVERAGE.] Coverage under this
section does not apply to any leave period or portion of a leave
period for which a person has received service credit or is
eligible to receive service credit for the leave period under
any leave of absence provision in chapter 354A, any other
applicable law, or bylaws or articles of incorporation of the
association. The person may waive eligibility to receive
service credit under a leave of absence provision and be covered
by this section for the applicable period by filing a waiver
with the executive director within 90 days of the start of the
leave.
Subd. 4. [COVERED SALARY LIMITATION.] (a) The covered
salary for an employee of the employee organization covered by
the coordinated program of the Minneapolis teachers retirement
fund association under this section is limited to the lesser of:
(1) the person's actual salary from the employee
organization as defined in section 354A.011, subdivision 24; or
(2) 75 percent of the salary of the governor as set under
section 15A.082.
(b) The limited covered salary determined under this
paragraph must be used in determining member, employer, and
employer additional contributions under section 354A.12, and in
determining annuities and other benefits under sections 354A.30
to 354A.41 and chapter 356.
Subd. 5. [ANNUITY RECEIPT REQUIREMENTS.] A retirement
annuity is only payable from the coordinated program of the
Minneapolis teachers retirement fund association to a person
described in subdivision 1 if the person has met all applicable
requirements, including the termination by the person from
employment by the employee organization and by the school
district. The reemployed annuitant earnings limitation in
section 354A.31, subdivision 3, applies if the person retires
and is subsequently reemployed while an annuitant by the
employee organization or by any other entity employing persons
who are members of the applicable teachers retirement fund
association by virtue of that employment.
Subd. 6. [CONTRIBUTION REQUIREMENTS.] The member,
employer, and employer additional contributions required by
section 354A.12 are the obligation of the person who elects
coverage by the coordinated program of the Minneapolis teachers
retirement fund association, but the employee organization may
pay the employer and employer additional contributions.
Contributions made by the person must be made by salary
deduction. Contributions made by the employee organization must
be made as provided in section 354A.12.
Subd. 7. [BOARD INELIGIBILITY.] A person employed by an
employee organization who retains active membership in the
teachers retirement fund association under this section is not
eligible for election to the board of trustees of the teachers
retirement fund association.
Sec. 5. Minnesota Statutes 1999 Supplement, section
354A.101, subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement fund association is entitled to
purchase up to ten years of allowable service credit
for nonprofit community-based corporation, private, or parochial
school teaching service by making payment under section 356.55,
provided that the teacher is not entitled to receive a current
or deferred age and service retirement annuity or disability
benefit from the applicable employer-sponsored pension plan and
has not purchased service credit from the applicable defined
benefit employer-sponsored pension plan for that service.
Sec. 6. [ELECTION OF COVERAGE BY EMPLOYEE OF EMPLOYEE
ORGANIZATION REPRESENTING MINNEAPOLIS TEACHERS RETIREMENT FUND
ASSOCIATION ACTIVE MEMBERS.]
Subdivision 1. [ELIGIBILITY ELECTION.] Notwithstanding the
election date requirements in section 354A.051, subdivision 2, a
person who is currently employed as a business agent by an
employee organization representing Minneapolis teachers
retirement fund association active members and who has been on a
mobility leave or leaves from special school district No. 1
since March 23, 1998, may make a written election to be covered
under section 354A.051. To be valid, that written election must
be on a form specified by the executive director of the
Minneapolis teachers retirement fund association and must be
filed with the executive director within 90 days following the
effective date of this section.
Subd. 2. [PAYMENT REQUIREMENTS.] If a valid election is
made under subdivision 1, an eligible individual under
subdivision 1 is required to pay, in a lump sum within 90 days
of the effective date of this section, any additional employee,
employer, and employer additional contributions based on the
eligible individual's salary and employment with the employee
organization, as required by the election, compared to amounts
previously paid or payable. These amounts are in addition to
any amounts previously payable. The additional contribution
requirements are to be computed from March 23, 1998, to the date
payroll deductions are first made on the high contribution
requirements. The lump sum payment under this subdivision must
include 8.5 percent annual interest. The amounts required under
this subdivision are the obligation of the eligible individual,
but the employee organization may pay the additional employer
and employer additional amounts with applicable interest.
Subd. 3. [SALARY CREDIT GRANT.] The additional salary
credit is to be granted to the account of the eligible
individual upon payment of amounts required under this section.
Sec. 7. [SPECIAL PART-TIME TEACHER PROGRAM AUTHORITY;
CERTAIN TEACHERS.]
(a) Notwithstanding the requirement in Minnesota Statutes,
section 354.66, subdivision 2, that part-time teacher program
agreements must be executed before October 1 of the school year
for which the teacher requests to make retirement contributions
described in the part-time teacher program, an eligible teacher
under paragraph (b) is authorized to participate in the
part-time teacher program under Minnesota Statutes, section
354.66, during the 1999-2000 school year.
(b) An eligible teacher is a teacher:
(1) employed by school district No. 11 (Anoka-Hennepin);
(2) whose part-time teaching agreement under Minnesota
Statutes, section 354.66, was executed after October 1, 1999,
but before the end of the 1999-2000 school year; and
(3) was born on October 16, 1947, or October 19, 1957.
(c) If full-time equivalent employee contributions were not
made for the full period covered by the part-time teaching
agreement indicated under paragraph (b), any omission or
deficiency in employee contributions must be paid by the
employee on or before the due date of any payment required under
Minnesota Statutes, section 354.66, subdivision 4.
(d) Notwithstanding Minnesota Statutes, section 354.66,
subdivision 2, one-quarter of the fine required under that
subdivision is waived if the part-time teaching agreement is
filed with the teachers retirement association by May 30, 2000.
If a part-time teaching agreement referred to under paragraph
(b) is not filed with the teachers retirement association before
July 1, 2000, the authority provided by this section is voided.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective on the day following final
enactment.
ARTICLE 12
MNSCU PENSION COVERAGE
AND RELATED CHANGES
Section 1. Minnesota Statutes 1998, section 136F.43,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITION.] As used in this section,
"teacher" means a person on the instructional or administrative
staff of the state colleges and universities who is a member of
the teachers retirement association under chapter 354, who is a
member of a teachers retirement fund association under chapter
354A, or who is covered by the unclassified employees plan under
chapter 352D or individual retirement account plan under chapter
354B. It shall not include a chancellor, deputy chancellor, or
vice-chancellor.
Sec. 2. Minnesota Statutes 1998, section 136F.43,
subdivision 2, is amended to read:
Subd. 2. [GRANTING AUTHORITY.] The board may grant an
extended leave of absence without salary to a full-time teacher
who has been employed by the board for at least five years and
has at least ten years of allowable service as defined in
section 354.05, subdivision 13 one or a combination of the
retirement plans specified in subdivision 1. The maximum
duration of an extended leave of absence pursuant to this
section shall be determined by mutual agreement of the board and
the teacher at the time the leave is granted and shall be at
least three but no more than five years. An extended leave of
absence under this section shall be taken by mutual consent of
the board and the teacher. No teacher may receive more than one
leave of absence under this section.
Sec. 3. Minnesota Statutes 1998, section 136F.43,
subdivision 6, is amended to read:
Subd. 6. [ALTERNATE LEAVE.] The board may grant a teacher
a leave of absence which is not subject to the provisions of
this section and either section 354.094 or section 354A.091.
Sec. 4. Minnesota Statutes 1998, section 136F.45,
subdivision 1a, is amended 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 after 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. 5. [354.539] [USE OF COLLEGE SUPPLEMENTAL RETIREMENT
FUNDS TO PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under
federal law, a teacher who is a participant in the college
supplemental retirement plan established under chapter 354C may
utilize the teacher's supplemental plan account to purchase
service credit under sections 354.53, 354.533, 354.534, 354.535,
354.536, 354.537, and 354.538.
(b) At the request of a member, if determined by the
executive director to be eligible to purchase service credit,
the executive director shall notify the board of the Minnesota
state colleges and universities system of the cost of the
purchase and shall request the transfer of funds from the
member's college supplemental retirement account to the teachers
retirement association. Upon receipt of the full prior service
credit purchase payment amount, the teachers retirement
association shall grant the requested allowable and formula
service credit.
Sec. 6. Minnesota Statutes 1998, section 354A.091,
subdivision 1, is amended to read:
Subdivision 1. [RETIREMENT CONTRIBUTIONS.] Notwithstanding
any provision to the contrary of this chapter or the articles of
incorporation or bylaws of an association relating to the salary
figure to be used for the determination of contributions or the
accrual of service credit an elementary, secondary, or technical
college teacher in the public schools of a city of the first
class who is granted an extended leave of absence pursuant to
section 122A.46, or a teacher who is granted an extended leave
of absence under section 136F.43, may pay employee contributions
to the applicable association and shall be entitled to receive
allowable service credit in that association for each year of
leave, provided the member and the employing board make the
required employer contributions, in any proportion they may
agree upon, to that association during the period of leave which
shall not exceed five years. The state shall not make an
employer contribution on behalf of the teacher. The employee
and employer contributions shall be based upon the rates of
contribution prescribed by section 354A.12 as applied to a
salary figure equal to the teacher's actual covered salary for
the plan year immediately preceding the leave. Payment of the
employee and employer contributions authorized pursuant to this
section shall be made on or before June 30 of the fiscal year
for which service credit is to be received. No allowable
service with respect to a year of extended leave of absence
shall be credited to a teacher until payment of the required
employee and employer contributions has been received by the
association.
Sec. 7. Minnesota Statutes 1998, section 354A.091,
subdivision 2, is amended to read:
Subd. 2. [MEMBERSHIP RETENTION.] A teacher on extended
leave pursuant to under either section 122A.46 or 136F.43 whose
employee and employer contributions are made to the applicable
teachers retirement fund association pursuant to subdivision 1
shall retain membership in the association for each year during
which the contributions are made, under the same terms and
conditions as if the teacher had continued to teach in the
district.
Sec. 8. Minnesota Statutes 1998, section 354A.091,
subdivision 3, is amended to read:
Subd. 3. [EFFECT OF NONPAYMENT.] A teacher on extended
leave pursuant to under either section 122A.46 or 136F.43 who
does not make employee contributions or whose employer
contribution is not made to the applicable teachers retirement
fund association in any year shall be deemed to have ceased to
be an active member of the association and to have ceased to
render teaching services beginning in that year for purposes of
this chapter and the articles of incorporation and bylaws of the
association, and may not pay employee or employer contributions
into the fund in any subsequent year of the leave. Nonpayment
of contributions into the fund shall not affect the rights or
obligations of the teacher or the employing school district
under section 122A.46 or the Minnesota state colleges and
universities system under section 136F.43.
Sec. 9. Minnesota Statutes 1998, section 354A.091,
subdivision 5, is amended to read:
Subd. 5. [APPLICABILITY.] The provisions of this section
shall not apply to a teacher who is discharged pursuant to
section 122A.41 while the teacher is on an extended leave of
absence pursuant to section 122A.46. The provisions of this
section also do not apply to a teacher who is discharged for
cause while the teacher is on an extended leave of absence under
section 136F.43.
Sec. 10. Minnesota Statutes 1998, section 354A.091,
subdivision 6, is amended to read:
Subd. 6. A teacher who makes employee contributions to and
receives allowable service credit in the applicable teacher's
retirement fund association pursuant to this section may not
make employee contributions or receive allowable service credit
for the same period of time in any other Minnesota public
employee pension plan, except a volunteer firefighters' relief
association governed by sections 69.771 to 69.776. This
subdivision shall not be construed to prohibit a member who pays
employee contributions and receives allowable service credit in
the fund pursuant to this section in any year from being
employed as a substitute teacher by any school district during
that year. Notwithstanding the provisions of this chapter or
the bylaws of a retirement association, a teacher may not pay
retirement contributions or receive allowable service credit in
the fund for teaching service rendered for any part of any year
for which the teacher pays retirement contributions or receives
allowable service credit pursuant to section 354.094 or this
section while on an extended leave of absence pursuant to under
either section 122A.46 or section 136F.43.
Sec. 11. [354A.106] [USE OF COLLEGE SUPPLEMENTAL
RETIREMENT FUNDS TO PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under
federal law, a teacher who is a participant in the college
supplemental retirement plan established under chapter 354C may
utilize the teacher's supplemental plan account to purchase
service credit under sections 354A.097, 354A.098, 354A.099,
354A.101, 354A.102, 354A.103, and 354A.104.
(b) At the request of a member, if determined by the
executive director of the applicable teachers retirement fund
association to be eligible to purchase service credit, the
executive director shall notify the board of the Minnesota state
colleges and universities system of the cost of the purchase and
shall request the transfer of funds from the member's college
supplemental retirement account to the applicable teachers
retirement fund association. Upon receipt of the full prior
service credit purchase payment amount, the applicable teachers
retirement fund association shall grant the requested allowable
and formula service credit.
Sec. 12. Minnesota Statutes 1998, section 354B.23,
subdivision 5a, is amended 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, the excess employee contributions must
be returned to the employee and to the excess employer in the
same proportions as the contributions were made contributions
must be reallocated in accordance with section 415 of the
federal Internal Revenue Code, as amended, and the applicable
federal regulations and revenue rulings.
(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. 13. Minnesota Statutes 1998, section 354C.12,
subdivision 1a, is amended 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 excess employee contributions must be
returned to the employee and one-half to the excess employer
contributions must be reallocated in accordance with section 415
of the federal Internal Revenue Code, as amended, and the
applicable federal regulations and revenue rulings.
(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 1998, section 354C.165, is
amended to read:
354C.165 [PROHIBITION ON LOANS OR PRETERMINATION
DISTRIBUTIONS.]
(a) Except as provided in paragraph (c), no participant may
obtain a loan from the plan or obtain any distribution from the
plan at a time before the participant terminates the employment
that gave rise to plan coverage.
(b) No amounts to the credit of the plan are assignable
either in law or in equity, are subject to state estate tax, or
are subject to execution, levy, attachment, garnishment, or
other legal process, except as provided in section 518.58,
518.581, or 518.6111.
(c) Unless prohibited by or subject to a penalty under
federal law, a teacher who is a participant in the supplemental
retirement plan may request, in writing, a transfer of all or a
portion of the funds accumulated in the person's supplemental
plan account to the teachers retirement association to purchase
service credit under sections 354.53, 354.533, 354.534, 354.535,
354.536, 354.537, and 354.538 or to the teachers retirement fund
association to purchase service credit under sections 354A.097,
354A.098, 354A.099, 354A.101, 354A.102, 354A.103, and 354A.104.
Upon receipt of a valid request, the board shall execute the
transfer. The transfer must be a fund-to-fund transfer, and in
no event shall the participant directly receive any of the funds
while still employed by the board. In no event may the board
transfer more than the participant's account balance. The
board, in cooperation with the executive director of the
teachers retirement association, shall develop the forms for
requesting a transfer and the procedures for executing the
requested transfers.
Sec. 15. Minnesota Statutes 1999 Supplement, section
356.24, subdivision 1, is amended to read:
Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful
for a school district or other governmental subdivision or state
agency to levy taxes for, or contribute public funds to a
supplemental pension or deferred compensation plan that is
established, maintained, and operated in addition to a primary
pension program for the benefit of the governmental subdivision
employees other than:
(1) to a supplemental pension plan that was established,
maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health,
hospital, disability, or death benefits;
(3) to the individual retirement account plan established
by chapter 354B;
(4) to a plan that provides solely for severance pay under
section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the
state university board or the community college board and
covered by the board of trustees of the Minnesota state colleges
and universities supplemental retirement plan under chapter
354C, if provided for in a personnel policy of the public
employer or in the collective bargaining agreement between the
public employer and the exclusive representative of public
employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an
employer contribution of $2,000 a year per employee;
(i) to the state of Minnesota deferred compensation plan
under section 352.96; or
(ii) in payment of the applicable portion of the premium on
a tax-sheltered annuity contract qualified under section 403(b)
of the Internal Revenue Code, if purchased from a qualified
insurance company, or to a qualified investment entity, as
defined in subdivision 1a, and, in either case, if the employing
unit has complied with any applicable pension plan provisions of
the Internal Revenue Code with respect to the tax-sheltered
annuity program during the preceding calendar year; or
(6) for personnel employed by the state university board or
the community college board and not covered by clause (5), to
the supplemental retirement plan under chapter 354C, if provided
for in a personnel policy or in the collective bargaining
agreement of the public employer with the exclusive
representative of the covered employees in an appropriate unit,
in an amount matching employee contributions on a dollar for
dollar basis, but not to exceed an employer contribution of
$2,000 $2,700 a year for each employee.
Sec. 16. Minnesota Statutes 1998, section 356A.01,
subdivision 8, is amended to read:
Subd. 8. [COVERED PENSION PLAN.] "Covered pension plan"
means a pension plan or fund listed in section 356.20,
subdivision 2, or section 356.30, subdivision 3, or a plan
established under chapter 353D, 354B, 354C, or 354D.
Sec. 17. Minnesota Statutes 1998, section 356A.02, is
amended to read:
356A.02 [FIDUCIARY STATUS AND ACTIVITIES.]
Subdivision 1. [FIDUCIARY STATUS.] For purposes of this
chapter, the following persons are fiduciaries:
(1) any member of the governing board of a covered pension
plan;
(2) the chief administrative officer of a covered pension
plan or of the state board of investment;
(3) any member of the state board of investment; and
(4) any member of the investment advisory council; and
(5) any member of the advisory committee established under
section 354B.25.
Subd. 2. [FIDUCIARY ACTIVITY.] The activities of a
fiduciary identified in subdivision 1 that must be carried out
in accordance with the requirements of section 356A.04 include,
but are not limited to:
(1) the investment and reinvestment of plan assets;
(2) the determination of benefits;
(3) the determination of eligibility for membership or
benefits;
(4) the determination of the amount or duration of
benefits;
(5) the determination of funding requirements or the
amounts of contributions;
(6) the maintenance of membership or financial records; and
(7) the expenditure of plan assets; and
(8) the selection of financial institutions and investment
products.
Sec. 18. Minnesota Statutes 1998, section 356A.06, is
amended by adding a subdivision to read:
Subd. 10. [DEFINED CONTRIBUTION PLANS; APPLICATION.] (a)
To the extent that a plan governed by chapter 352D, 353D, 354B,
354C, or 354D permits a participant or beneficiary to select
among investment products for the person's account and the
participant or beneficiary exercises that investment
self-direction, no fiduciary is liable for any loss which may
result from the participant's or beneficiary's exercise of that
investment self-direction.
(b) Subdivisions 1, 2, 6, 8, and 8a do not apply to plans
governed by chapter 354B or 354C.
Sec. 19. [VENDOR CONTRACT EXTENSION OPTION.]
Notwithstanding Minnesota Statutes, section 136F.45,
subdivision 1a, paragraph (c), the board of trustees of the
Minnesota state colleges and universities may, with the
agreement of the parties involved, extend the vendor contracts
in effect immediately before July 1, 2000, with any revisions
that are mutually agreeable to the parties, for up to an
additional two years duration.
Sec. 20. [EFFECTIVE DATE.]
(a) Sections 4, 5, and 11 to 20 are effective on the day
following final enactment.
(b) Sections 1, 2, 3, and 6 to 10 are effective on the day
following final enactment and apply retroactively to a faculty
member of the Lake Superior College who was granted an extended
leave of absence under article 19, section 4, of the united
technical college educators master agreement for the 1999-2000
academic year prior to March 20, 2000.
(c) Sections 5, 11, and 14, paragraph (c), expire on May
16, 2002.
ARTICLE 13
EMPLOYER MATCHING CONTRIBUTION
TAX SHELTERED ANNUITY CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section
356.24, subdivision 1, is amended to read:
Subdivision 1. [RESTRICTION; EXCEPTIONS.] It is unlawful
for a school district or other governmental subdivision or state
agency to levy taxes for, or contribute public funds to a
supplemental pension or deferred compensation plan that is
established, maintained, and operated in addition to a primary
pension program for the benefit of the governmental subdivision
employees other than:
(1) to a supplemental pension plan that was established,
maintained, and operated before May 6, 1971;
(2) to a plan that provides solely for group health,
hospital, disability, or death benefits;
(3) to the individual retirement account plan established
by chapter 354B;
(4) to a plan that provides solely for severance pay under
section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the
state university board or the community college board and
covered by the board of trustees of the Minnesota state colleges
and universities supplemental retirement plan under chapter
354C, if provided for in a personnel policy of the public
employer or in the collective bargaining agreement between the
public employer and the exclusive representative of public
employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an
employer contribution of $2,000 a year per employee;
(i) to the state of Minnesota deferred compensation plan
under section 352.96; or
(ii) in payment of the applicable portion of the premium on
a tax-sheltered annuity contract qualified contribution made to
any investment eligible under section 403(b) of the Internal
Revenue Code, if purchased from a qualified insurance company,
or to a qualified investment entity, as defined in subdivision
1a, and, in either case, if the employing unit has complied with
any applicable pension plan provisions of the Internal Revenue
Code with respect to the tax-sheltered annuity program during
the preceding calendar year; or
(6) for personnel employed by the state university board or
the community college board and not covered by clause (5), to
the supplemental retirement plan under chapter 354C, if provided
for in a personnel policy or in the collective bargaining
agreement of the public employer with the exclusive
representative of the covered employees in an appropriate unit,
in an amount matching employee contributions on a dollar for
dollar basis, but not to exceed an employer contribution of
$2,000 a year for each employee.
Sec. 2. Minnesota Statutes 1999 Supplement, section
356.24, subdivision 1b, is amended to read:
Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for
unrepresented employees or a collective bargaining agreement or
a school board may establish limits on the number of vendors
under subdivision 1 that it will utilize and conditions under
which the vendors may contact employees both during working
hours and after working hours.
Sec. 3. Minnesota Statutes 1998, section 356.24, is
amended by adding a subdivision to read:
Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] Any
insurance company, mutual fund company, or similar company
providing investments eligible under section 403(b) of the
Internal Revenue Code and eligible to receive employer
contributions under this section may request the state board of
investment, in conjunction with the department of commerce, to
review the financial standing of the company, the
competitiveness of its investment options and returns, and the
level of all charges and fees impacting those returns. The
state board of investment may establish a fee for each review.
The state board of investment must maintain and have available a
list of all reviewed companies. In reviewing companies under
this section, the state board of investment must not be
considered to be acting as a fiduciary or to be engaged in a
fiduciary activity under chapter 356A or common law.
Sec. 4. [REPEALER.]
Minnesota Statutes 1999 Supplement, section 356.24,
subdivision 1a, is repealed.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final
enactment.
ARTICLE 14
RETIREMENT GENERALLY
Section 1. [REPEALER.]
Minnesota Statutes 1999 Supplement, section 356.61, is
repealed.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective retroactively to July 1, 1999.
ARTICLE 15
VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION CHANGES
Section 1. Minnesota Statutes 1999 Supplement, section
69.021, subdivision 7, is amended to read:
Subd. 7. [APPORTIONMENT OF FIRE STATE AID TO
MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner
shall apportion the fire state aid relative to the premiums
reported on the Minnesota Firetown Premium Reports filed under
this chapter to each municipality and/or firefighters' relief
association.
(b) The commissioner shall calculate an initial fire state
aid allocation amount for each municipality or fire department
under paragraph (c) and a minimum fire state aid allocation
amount for each municipality or fire department under paragraph
(d). The municipality or fire department must receive the
larger fire state aid amount.
(c) The initial fire state aid allocation amount is the
amount available for apportionment as fire state aid under
subdivision 5, without inclusion of any additional funding
amount to support a minimum fire state aid amount under section
423A.02, subdivision 3, allocated one-half in proportion to the
population as shown in the last official statewide federal
census for each fire town and one-half in proportion to the
market value of each fire town, including (1) the market value
of tax exempt property and (2) the market value of natural
resources lands receiving in lieu payments under sections
477A.11 to 477A.14, but excluding the market value of minerals.
In the case of incorporated or municipal fire departments
furnishing fire protection to other cities, towns, or townships
as evidenced by valid fire service contracts filed with the
commissioner, the distribution must be adjusted proportionately
to take into consideration the crossover fire protection
service. Necessary adjustments shall be made to subsequent
apportionments. In the case of municipalities or independent
fire departments qualifying for the aid, the commissioner shall
calculate the state aid for the municipality or relief
association on the basis of the population and the market value
of the area furnished fire protection service by the fire
department as evidenced by duly executed and valid fire service
agreements filed with the commissioner. If one or more fire
departments are furnishing contracted fire service to a city,
town, or township, only the population and market value of the
area served by each fire department may be considered in
calculating the state aid and the fire departments furnishing
service shall enter into an agreement apportioning among
themselves the percent of the population and the market value of
each service area. The agreement must be in writing and must be
filed with the commissioner.
(d) The minimum fire state aid allocation amount is the
amount in addition to the initial fire state allocation amount
that is derived from any additional funding amount to support a
minimum fire state aid amount under section 423A.02, subdivision
3, and allocated to municipalities with volunteer firefighter
relief associations based on the number of active volunteer
firefighters who are members of the relief association as
reported in the annual financial reporting for the calendar year
1993 to the office of the state auditor, but not to exceed 30
active volunteer firefighters, so that all municipalities or
fire departments with volunteer firefighter relief associations
receive in total at least a minimum fire state aid amount per
1993 active volunteer firefighter to a maximum of 30
firefighters. If a relief association did not exist in is
established after calendar year 1993 and before calendar year
2000, the number of active volunteer firefighters who are
members of the relief association as reported in the annual
financial reporting for calendar year 1998 to the office of the
state auditor, but not to exceed 30 active volunteer
firefighters, shall be used in this determination. If a relief
association is established after calendar year 1999, the number
of active volunteer firefighters who are members of the relief
association as reported in the first annual financial reporting
submitted to the office of the state auditor, but not to exceed
20 active volunteer firefighters, must be used in this
determination.
(e) The fire state aid must be paid to the treasurer of the
municipality where the fire department is located and the
treasurer of the municipality shall, within 30 days of receipt
of the fire state aid, transmit the aid to the relief
association if the relief association has filed a financial
report with the treasurer of the municipality and has met all
other statutory provisions pertaining to the aid apportionment.
(f) The commissioner may make rules to permit the
administration of the provisions of this section.
(g) Any adjustments needed to correct prior misallocations
must be made to subsequent apportionments.
Sec. 2. [69.041] [SHORTFALL FROM GENERAL FUND.]
(a) If the annual funding requirements of fire or police
relief associations or consolidation accounts under section
69.77, sections 69.771 to 69.775, or section 353A.09, exceed all
applicable revenue sources of a given year, including the
insurance premium taxes funding the applicable fire or police
state aid as set under section 60A.15, subdivision 1, paragraph
(e), clauses (1) to (3), the shortfall in the annual funding
requirements must be paid from the general fund to the extent
appropriated by the legislature.
(b) Nothing in this section may be deemed to relieve any
municipality from its obligation to a relief association or
consolidation account under law.
Sec. 3. Minnesota Statutes 1998, section 69.773,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] (a) This section shall apply
applies to any firefighters' relief association specified in
section 69.771, subdivision 1, which pays or allows for an
option of a monthly service pension to a retiring firefighter
when at least the minimum requirements for entitlement to a
service pension specified in section 424A.02, any applicable
special legislation and the articles of incorporation or bylaws
of the relief association have been met. Each firefighters'
relief association to which this section applies shall determine
the actuarial condition and funding costs of the special fund of
the relief association in accordance with subdivisions 2 and 3,
the financial requirements of the special fund of the relief
association in accordance with subdivision 4 and the minimum
obligation of the municipality with respect to the special fund
of the relief association in accordance with subdivision 5.
(b) If a firefighters relief association that previously
provided a monthly benefit service pension discontinues that
practice and either replaces the monthly benefit amount with a
lump sum benefit amount consistent with section 424A.02,
subdivision 3, or purchases an annuity in the same amount as the
monthly benefit from an insurance company licensed to do
business in this state, the actuarial condition and funding
costs, financial, and minimum municipal obligation requirements
of section 69.772 apply rather than this section.
Sec. 4. Minnesota Statutes 1998, section 424A.001,
subdivision 9, is amended to read:
Subd. 9. [SEPARATE FROM ACTIVE SERVICE.] "Separate from
active service" means to permanently cease to perform fire
suppression duties with a particular volunteer fire department,
to permanently cease to perform fire prevention duties,
to permanently cease to supervise fire suppression duties, and
to permanently cease to supervise fire prevention duties.
Sec. 5. Minnesota Statutes 1998, section 424A.02,
subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or
before August 1 of each year as part of the certification of the
financial requirements and minimum municipal obligation made
pursuant to section 69.772, subdivision 4, or 69.773,
subdivision 5, the secretary or some other official of the
relief association designated in the bylaws of each relief
association shall calculate and certify to the governing body of
the applicable qualified municipality the average amount of
available financing per active covered firefighter for the most
recent three-year period. The amount of available financing
shall include any amounts of fire state aid received or
receivable by the relief association, any amounts of municipal
contributions to the relief association raised from levies on
real estate or from other available revenue sources exclusive of
fire state aid, and one-tenth of the amount of assets in excess
of the accrued liabilities of the relief association calculated
pursuant to sections 69.772, subdivision 2; 69.773, subdivisions
2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief
association has authority to provide for in its bylaws for
payment to a member retiring after the calculation date when the
minimum age and service requirements specified in subdivision 1
are met must be determined using the table in paragraph (c) or
(d), whichever applies.
(c) For a relief association where the governing bylaws
provide for a monthly service pension to a retiring member, the
maximum monthly service pension amount per month for each year
of service credited that may be provided for in the bylaws is
the maximum service pension figure corresponding to the average
amount of available financing per active covered firefighter:
Minimum Average Amount of Maximum Service Pension
Available Financing per Amount Payable per Month
Firefighter for Each Year of Service
$... $ .25
42 .50
84 1.00
126 1.50
168 2.00
209 2.50
252 3.00
294 3.50
335 4.00
378 4.50
420 5.00
503 6.00
587 7.00
672 8.00
755 9.00
839 10.00
923 11.00
1007 12.00
1090 13.00
1175 14.00
1259 15.00
1342 16.00
1427 17.00
1510 18.00
1594 19.00
1677 20.00
1762 21.00
1845 22.00
1888 22.50
1929 23.00
2014 24.00
2098 25.00
2183 26.00
2267 27.00
2351 28.00
2436 29.00
2520 30.00
2604 31.00
2689 32.00
2773 33.00
2857 34.00
2942 35.00
3026 36.00
3110 37.00
3963 38.00
4047 39.00
4137 40.00
any amount more than 4137 40.00
Effective beginning December 31, 2000:
4227 41.00
4317 42.00
4407 43.00
4497 44.00
Effective beginning December 31, 2001:
4587 45.00
4677 46.00
4767 47.00
4857 48.00
Effective beginning December 31, 2002:
4947 49.00
5037 50.00
5127 51.00
5217 52.00
Effective beginning December 31, 2003:
5307 53.00
5397 54.00
5487 55.00
5577 56.00
(d) For a relief association in which the governing bylaws
provide for a lump sum service pension to a retiring member, the
maximum lump sum service pension amount for each year of service
credited that may be provided for in the bylaws is the maximum
service pension figure corresponding to the average amount of
available financing per active covered firefighter for the
applicable specified period:
Minimum Average Amount Maximum Lump Sum Service
of Available Financing Pension Amount Payable
per Firefighter for Each Year of Service
$.. $10
11 20
16 30
23 40
27 50
32 60
43 80
54 100
65 120
77 140
86 160
97 180
108 200
131 240
151 280
173 320
194 360
216 400
239 440
259 480
281 520
302 560
324 600
347 640
367 680
389 720
410 760
432 800
486 900
540 1000
594 1100
648 1200
702 1300
756 1400
810 1500
864 1600
918 1700
972 1800
1026 1900
1080 2000
1134 2100
1188 2200
1242 2300
1296 2400
1350 2500
1404 2600
1458 2700
1512 2800
1566 2900
1620 3000
1672 3100
1726 3200
1753 3250
1780 3300
1820 3375
1834 3400
1888 3500
1942 3600
1996 3700
2023 3750
2050 3800
2104 3900
2158 4000
2212 4100
2265 4200
2319 4300
2373 4400
2427 4500
2481 4600
2535 4700
2589 4800
2643 4900
2697 5000
2751 5100
2805 5200
2859 5300
2913 5400
2967 5500
any amount more than 2967 5500
Effective beginning December 31, 2000:
3021 5600
3075 5700
3129 5800
3183 5900
3237 6000
Effective beginning December 31, 2001:
3291 6100
3345 6200
3399 6300
3453 6400
3507 6500
Effective beginning December 31, 2002:
3561 6600
3615 6700
3669 6800
3723 6900
3777 7000
Effective beginning December 31, 2003:
3831 7100
3885 7200
3939 7300
3993 7400
4047 7500
(e) For a relief association in which the governing bylaws
provide for a monthly benefit service pension as an alternative
form of service pension payment to a lump sum service pension,
the maximum service pension amount for each pension payment type
must be determined using the applicable table contained in this
subdivision.
(f) If a relief association establishes a service pension
in compliance with the applicable maximum contained in paragraph
(c) or (d) and the minimum average amount of available financing
per active covered firefighter is subsequently reduced because
of a reduction in fire state aid or because of an increase in
the number of active firefighters, the relief association may
continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount
until the minimum average amount of available financing per
firefighter under the table in paragraph (c) or (d), whichever
applies, permits.
(g) No relief association is authorized to provide a
service pension in an amount greater than $40 per month per year
of service credit or in an amount greater than $5,500 lump sum
per year of service credit even if the minimum average amount of
available financing per firefighter for a relief association
providing a monthly benefit service pension is greater than
$4,137, or, for a relief association providing a lump sum
service pension, is greater than $2,967. No relief association
is authorized to provide a service pension in an amount greater
than the largest applicable flexible service pension maximum
amount even if the amount of available financing per firefighter
is greater than the financing amount associated with the largest
applicable flexible service pension maximum.
Sec. 6. Minnesota Statutes 1998, section 424A.02,
subdivision 7, is amended to read:
Subd. 7. [DEFERRED SERVICE PENSIONS.] (a) A member of a
relief association to which this section applies is entitled to
a deferred service pension if the member:
(1) has completed the lesser of the minimum period of
active service with the fire department specified in the bylaws
or 20 years of active service with the fire department;
(2) has completed at least five years of active membership
in the relief association; and
(3) separates from active service and membership before
reaching age 50 or the minimum age for retirement and
commencement of a service pension specified in the bylaws
governing the relief association if that age is greater than age
50.
(b) The deferred service pension starts when the former
member reaches age 50 or the minimum age specified in the bylaws
governing the relief association if that age is greater than age
50 and when the former member makes a valid written application.
(c) A relief association that provides a lump sum service
pension may, when its governing bylaws so provide, pay interest
on the deferred lump sum service pension during the period of
deferral. If provided for in the bylaws, interest must be paid
at the rate actually earned on that portion of the assets if the
deferred benefit amount is invested by the relief association,
but not to exceed the interest rate specified in section
356.215, subdivision 4d, and must be in a separate account
established and maintained by the relief association or in a
separate investment vehicle held by the relief association or,
if not, at the interest rate of five percent, compounded
annually based on calendar year balances.
(d) For a deferred service pension that is transferred to a
separate account established and maintained by the relief
association or separate investment vehicle held by the relief
association, the deferred member bears the full investment risk
subsequent to transfer and in calculating the accrued liability
of the volunteer firefighter relief association that pays a lump
sum service pension, the accrued liability for deferred service
pensions is equal to the separate relief association account
balance or the fair market value of the separate investment
vehicle held by the relief association.
(e) The deferred service pension is governed by and must be
calculated under the general statute, special law, relief
association articles of incorporation, or and relief association
bylaw provisions applicable on the date on which the member
separated from active service with the fire department and
active membership in the relief association.
Sec. 7. Minnesota Statutes 1998, section 424A.02,
subdivision 9, is amended to read:
Subd. 9. [LIMITATION ON ANCILLARY BENEFITS.] Any relief
association, including any volunteer firefighters relief
association governed by section 69.77 or any volunteer
firefighters division of a relief association governed by
chapter 424, may only pay ancillary benefits which would
constitute an authorized disbursement as specified in section
424A.05 subject to the following requirements or limitations:
(a) (1) With respect to a relief association in which
governing bylaws provide for a lump sum service pension to a
retiring member, no ancillary benefit may be paid to any former
member or paid to any person on behalf of any former member
after the former member (1) (i) terminates active service with
the fire department and active membership in the relief
association; and (2) (ii) commences receipt of a service pension
as authorized pursuant to under this section; and
(b) (2) With respect to any relief association, no
ancillary benefit paid or payable to any member, to any former
member, or to any person on behalf of any member or former
member, may exceed in amount the total earned service pension of
the member or former member. The total earned service
pension shall must be calculated using the service pension
amount specified in the bylaws of the relief association and the
years of service credited to the member or former member. The
years of service shall must be determined as of (1) (i) the date
the member or former member became entitled to the ancillary
benefit; or (2) (ii) the date the member or former member died
entitling a survivor or the estate of the member or former
member to an ancillary benefit. The ancillary benefit shall
must be calculated (1) (i) without regard to whether the member
or former member had attained the minimum amount of service and
membership credit specified in the governing bylaws;
and (2) (ii) without regard to the percentage amounts specified
in subdivision 2; except that the bylaws of any relief
association may provide for the payment of a survivor benefit in
an amount not to exceed five times the yearly service pension
amount specified in the bylaws on behalf of any member who dies
before having performed five years of active service in the fire
department with which the relief association is affiliated.
Sec. 8. Minnesota Statutes 1998, section 424A.02, is
amended by adding a subdivision to read:
Subd. 9b. [REPAYMENT OF SERVICE PENSION IN CERTAIN
INSTANCES.] If a retired volunteer firefighter does not
permanently separate from active firefighting service as
required by subdivision 1 and section 424A.001, subdivision 9,
by resuming active service as a firefighter in the same
volunteer fire department or as a person in charge of
firefighters in the same volunteer fire department, no
additional service pension amount is payable to the person, no
additional service is creditable to the person, and the person
shall repay any previously received service pension.
Sec. 9. Minnesota Statutes 1998, section 424A.02,
subdivision 13, is amended to read:
Subd. 13. [COMBINED SERVICE PENSIONS.] (a) If the articles
of incorporation or bylaws of the associations so provide, a
volunteer firefighter with credit for service as an active
firefighter in more than one volunteer firefighters relief
association is entitled, when the applicable requirements of
paragraph (b) are met and when otherwise qualified, to a
prorated service credit from each relief association.
(b) A volunteer firefighter receiving a prorated service
pension under this subdivision must have total service credit of
ten years or more, if every affected relief association does not
require only a five-year service vesting requirement, or five
years or more, if every affected relief association requires
only a five-year service vesting requirement, as a member of two
or more relief associations is entitled, when otherwise
qualified, to a prorated service pension from each association
in which. The member has must have one year or more of service
credit in each relief association. The prorated service pension
must be based on the service pension amount in effect for the
relief association on the date on which active volunteer
firefighting services covered by that relief association
terminate. To receive a service pension under this subdivision,
the firefighter must become a member of the second or succeeding
association and must give notice of membership to the prior
association within two years of the date of termination of
active service with the prior association. The notice must be
attested to by the second or subsequent association secretary.
Sec. 10. Minnesota Statutes 1998, section 424A.04,
subdivision 1, is amended to read:
Subdivision 1. [MEMBERSHIP.] (a) Every relief association
directly associated with a municipal fire department shall be
managed by a board of trustees consisting of nine members. Six
trustees shall be elected from the membership of the relief
association and three trustees shall be drawn from the officials
of the municipalities served by the fire department to which the
relief association is directly associated. The bylaws of a
relief association may provide that one of the six trustees
elected from the relief association may be a retired member
receiving a monthly pension who is elected by the membership of
the relief association. The three ex officio trustees shall be
the mayor, the clerk, clerk-treasurer or finance director, and
the chief of the municipal fire department.
(b) Every relief association that is a subsidiary of an
independent nonprofit firefighting corporation shall be managed
by a board of trustees consisting of ten members. Six trustees
shall be elected from the membership of the relief association,
three trustees shall be drawn from the officials of the
municipalities served by the fire department to which the relief
association is directly associated, and one trustee shall be the
fire chief. The bylaws of a relief association may provide that
one of the six trustees elected from the relief association may
be a retired member receiving a monthly pension who is elected
by the membership of the relief association. The three ex
officio trustees who are the elected officials shall be selected
as follows:
(1) if only one municipality contracts with the independent
nonprofit firefighting corporation, the ex officio trustees
shall be three elected officials of the contracting municipality
who are designated by the governing body of the municipality;
(2) if two municipalities contract with the independent
nonprofit firefighting corporation, the ex officio trustees
shall be two elected officials of the largest municipality in
population and one elected official of the next largest
municipality in population who are designated by the governing
bodies of the applicable municipalities; or
(3) if three or more municipalities contract with the
independent nonprofit corporation, the ex officio trustees shall
be one elected official of each of the three largest
municipalities in population who are designated by the governing
bodies of the applicable municipalities.
(c) If a relief association lacks the ex officio board
members provided for in paragraph (a) or (b) because the fire
department is not located in or associated with an organized
municipality, the ex officio board members must be appointed
from the fire department service area by the board of
commissioners of the applicable county. The term of these
appointed ex officio board members is three years or until the
person's successor is qualified, whichever is later.
(d) An ex officio trustee under paragraph (a), (b), or (c)
shall have all the rights and duties accorded to any other
trustee except the right to be an officer of the board of
trustees.
(e) A board shall have at least three officers, which shall
be a president, a secretary and a treasurer. These officers
shall be elected from among the elected trustees by either the
full board of trustees or by the membership, as specified in the
bylaws, and in no event shall any trustee hold more than one
officer position at any one time. The terms of the elected
trustees and of the officers of the board shall be specified in
the bylaws of the relief association, but shall not exceed three
years. If the term of the elected trustees exceeds one year,
the election of the various trustees elected from the membership
shall initially and shall thereafter continue to be staggered on
as equal a basis as is practicable.
Sec. 11. Minnesota Statutes 1998, section 424A.05,
subdivision 3, is amended to read:
Subd. 3. [AUTHORIZED DISBURSEMENTS FROM THE SPECIAL
FUND.] (a) Disbursements from the special fund shall are not
permitted to be made for any purpose other than one of the
following:
(1) For the payment of service pensions to retired members
of the relief association if authorized and paid pursuant to law
and the bylaws governing the relief association;
(2) For the payment of temporary or permanent disability
benefits to disabled members of the relief association if
authorized and paid pursuant to law and specified in amount in
the bylaws governing the relief association;
(3) For the payment of survivor benefits to surviving
spouses and surviving children, or if none, to designated
beneficiaries, of deceased members of the relief association if
authorized by and paid pursuant to law and specified in amount
in the bylaws governing the relief association;
(4) For the payment of any funeral benefits to the
surviving spouse, or if no surviving spouse, the estate, of the
deceased member of the relief association if authorized by law
and specified in amount in the bylaws governing the relief
association;
(5) For the payment of the fees, dues and assessments to
the Minnesota state fire department association and, to the
Minnesota area relief association coalition, and to the state
volunteer firefighters' benefit association in order to entitle
relief association members to membership in and the benefits of
these state associations or organizations; and
(6) For the payment of administrative expenses of the
relief association as authorized pursuant to section 69.80.
(b) For purposes of this chapter, a designated beneficiary
must be a natural person.
Sec. 12. [VOLUNTEER FIREFIGHTERS LUMP SUM SERVICE
BENEFITS.]
Subdivision 1. [APPLICATION.] This section applies to a
surviving spouse of a person who:
(1) was born on August 18, 1941;
(2) was employed as a building inspector by the city of St.
Paul;
(3) died during the course of his employment duties as a
building inspector on December 24, 1997;
(4) began service as a volunteer firefighter for the
Woodbury fire department in 1980 and continued that service up
to the time of his death; and
(5) would have been eligible to retire as a volunteer
firefighter and receive a lump sum service pension calculated at
the rate of $4,000 for each year of service on January 1, 1998.
Subd. 2. [ELIGIBILITY FOR BENEFIT.] Notwithstanding any
law to the contrary, the eligible person described in
subdivision 1 is entitled to receive a survivor benefit from the
Woodbury fire department relief association benefit plan
calculated at the rate that would have been in effect had the
person described in subdivision 1 lived until January 1, 1998.
Subd. 3. [RESTRICTIONS.] This section does not authorize
payment of more than a single survivor benefit to the eligible
individual specified in subdivision 1. If a survivor benefit
has been paid to the eligible individual by the Woodbury fire
department relief association, this section authorizes payment
to the eligible individual of the difference between the amount
previously paid and the amount payable under the Woodbury fire
department relief association benefit plan in effect on January
1, 1998, assuming the volunteer firefighter survived and
provided service to that date.
Sec. 13. [EFFECTIVE DATE.]
(a) Sections 1 to 5 and 7 to 11 are effective on the day
following final enactment.
(b) Section 6 is effective on the day following final
enactment and, with the appropriate bylaw amendment and
municipal approval, applies to deferred service pensions where
deferral began before the effective date of the municipal
approval.
(c) For a deferred service pension under section 6 that is
invested in a separate account or separate investment vehicle,
interest is payable up to the date of the transfer consistent
with the law and bylaw provisions in effect when the firefighter
terminated active firefighting service and actual investment
performance thereafter.
(d) Section 12 is effective on the day after the date on
which the Woodbury city council and the chief clerical officer
of the city of Woodbury complete, in a timely manner, their
compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
ARTICLE 16
DISSOLUTIONS AND CONSOLIDATIONS
OF VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS
Section 1. [424B.01] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] Unless the context of the
provision indicates that a different meaning is intended, each
of the terms in the following subdivisions have the meaning
indicated.
Subd. 2. [APPLICABLE MUNICIPALITY.] "Applicable
municipality" means the municipality or municipalities in which
a consolidating relief association is located and to which a
consolidating relief association is associated by virtue of the
presence of at least one municipal official on the relief
association board of trustees under section 424A.04.
Subd. 3. [CONSOLIDATING RELIEF
ASSOCIATION.] "Consolidating relief association" means a
volunteer firefighter relief association organized under chapter
317A and governed by chapter 424A that has initiated or has
completed the process of consolidating with one or more other
relief associations under this chapter.
Subd. 4. [PRIOR RELIEF ASSOCIATIONS.] "Prior relief
associations" means the two or more volunteer firefighter relief
associations that have initiated the consolidation process under
this chapter by action of the board of trustees of the relief
association.
Subd. 5. [RELIEF ASSOCIATION MEMBERSHIP.] "Relief
association membership" means all active members of the
volunteer firefighter relief association, all deferred retirees
and other vested inactive members of the volunteer firefighter
relief association, and any persons regularly receiving a
service pension or other retirement benefit from the volunteer
firefighters relief association.
Subd. 6. [SUBSEQUENT RELIEF ASSOCIATION.] "Subsequent
relief association" means the volunteer firefighters relief
association that is designated to be the successor relief
association in the consolidation initiative resolutions of the
board of trustees of the prior relief associations or the
volunteer firefighters relief association organized under
chapters 317A and 424A for the purpose of operating as the
successor relief association after consolidation under this
chapter.
Sec. 2. [424B.02] [CONSOLIDATION AUTHORIZED.]
Subdivision 1. [INITIATION.] (a) With the approval of the
governing body of each applicable municipality, two or more
relief associations associated with fire departments serving
contiguous fire districts may initiate the consolidation of the
relief associations into a subsequent relief association.
(b) Initiation of a consolidation action must occur through
the proposal of a consolidation resolution to the board of
trustees of each volunteer firefighter relief association
notification of the relief association membership of the
potential consolidation and after conducting a public meeting on
the consolidation question.
Subd. 2. [INITIATIVE PROCESSING; FILING.] (a) After a
consolidation initiative resolution has been filed with the
relief association board of trustees by one or more members of
the board, the relief association secretary shall provide
written notification of the initiative to the relief association
membership. After notification of the relief association
membership, the board of trustees must hold a public hearing on
the initiative. After the hearing, the board of trustees shall
act on the consolidation resolution.
(b) If the consolidation resolution is adopted by majority
vote of the board of trustees, the secretary shall file a copy
of the resolution with the other relief association or
associations also considering consolidation.
(c) If two or more volunteer firefighter relief
associations adopt a consolidation resolution, those relief
associations are consolidated effective the next following
January 1.
(d) Within 30 days of the adoption of the consolidation
resolution by all prior relief associations, the secretaries of
the applicable prior relief associations shall jointly notify in
writing the state auditor, the commissioner of revenue, and the
secretary of state of the consolidation.
Sec. 3. [424B.03] [SUBSEQUENT RELIEF ASSOCIATION.]
Subdivision 1. [NEW RELIEF ASSOCIATION.] If the subsequent
relief association is a new volunteer firefighter relief
association, the consolidated volunteer firefighters relief
association must be incorporated under chapter 317A. The
incorporators of the consolidated relief association must
include at least one board member of each of the former
volunteer firefighters relief associations.
Subd. 2. [SUCCESSOR RELIEF ASSOCIATION.] If the subsequent
relief association is one of the prior relief associations, the
articles of incorporation and bylaws must be appropriately
revised, effective on the consolidation effective date, and a
revised board of trustees must be elected before the
consolidation effective date.
Sec. 4. [424B.04] [GOVERNANCE OF CONSOLIDATED VOLUNTEER
FIREFIGHTERS RELIEF ASSOCIATION.]
Subdivision 1. [BOARD OF TRUSTEES.] The consolidated
volunteer firefighters relief association is governed by a board
of trustees as provided in section 424A.04, subdivision 1.
Subd. 2. [COMPOSITION OF BOARD.] The board must have three
officers, including a president, a secretary, and a treasurer.
The membership of the consolidated volunteer firefighters relief
association must elect the three officers from the board
members. A board of trustees member may not hold more than one
officer position at the same time.
Subd. 3. [BOARD ADMINISTRATION.] The board of trustees
must administer the affairs of the relief association consistent
with this chapter and the applicable provisions of chapters 69,
356A, and 424A.
Sec. 5. [424B.05] [SPECIAL AND GENERAL FUNDS.]
The consolidated volunteer firefighters relief association
must establish and maintain a special fund and a general fund.
The special fund must be established and maintained as provided
in section 424A.05. The general fund must be established and
maintained as provided in section 424A.06.
Sec. 6. [424B.06] [TRANSFERS.]
Subdivision 1. [GENERALLY.] On the effective date of
consolidation, the records, assets, and liabilities of the prior
volunteer firefighter relief associations are transferred to the
consolidated volunteer firefighters relief association. On the
effective date of consolidation, the prior volunteer
firefighters relief associations cease to exist as legal
entities, except for the purposes of winding up association
affairs as provided by this chapter.
Subd. 2. [TRANSFER OF ADMINISTRATION.] On the effective
date of consolidation, the administration of the prior relief
associations is transferred to the board of trustees of the
subsequent volunteer firefighters relief association.
Subd. 3. [TRANSFER OF RECORDS.] On the effective date of
consolidation, the secretary and the treasurer of the prior
volunteer firefighters relief associations shall transfer all
records and documents relating to the prior relief associations
to the secretary and treasurer of the subsequent volunteer
firefighters relief association.
Subd. 4. [TRANSFER OF SPECIAL FUND ASSETS AND
LIABILITIES.] (a) On the effective date of consolidation, the
secretary and the treasurer of a prior volunteer firefighters
relief association shall transfer the assets of the special fund
of the applicable relief association to the special fund of the
subsequent relief association. Unless the appropriate secretary
and treasurer decide otherwise, the assets may be transferred as
investment securities rather than cash. The transfer must
include any accounts receivable. The appropriate secretary must
settle any accounts payable from the special fund of the relief
association before the effective date of consolidation.
(b) Upon the transfer of the assets of the special fund of
a prior relief association, the pension liabilities of that
special fund become the obligation of the special fund of the
subsequent volunteer firefighters relief association.
(c) Upon the transfer of the prior relief association
special fund assets, the board of trustees of the subsequent
volunteer firefighters relief association has legal title to and
management responsibility for the transferred assets as trustees
for persons having a beneficial interest in those assets arising
out of the benefit coverage provided by the prior relief
association.
(d) The subsequent volunteer firefighters relief
association is the successor in interest in all claims for and
against the special funds of the prior volunteer firefighters
relief associations or the applicable municipalities with
respect to the special funds of the prior relief associations.
The status of successor in interest does not apply to any claim
against a prior relief association, the municipality in which
that relief association is located, or any person connected with
the prior relief association or the municipality, based on any
act or acts that were not done in good faith and that
constituted a breach of fiduciary responsibility under common
law or chapter 356A.
Sec. 7. [424B.07] [DISSOLUTION OF PRIOR GENERAL FUND
BALANCES.]
Before the effective date of consolidation, the secretaries
of the volunteer firefighters relief associations shall settle
any accounts payable from the respective general fund or any
other relief association fund in addition to the relief
association special fund. Investments held by a fund of the
prior relief associations in addition to the special fund must
be liquidated before the effective date of consolidation as the
bylaws of the relief association provide. Before the effective
date of consolidation, the respective relief associations must
pay all applicable general fund expenses from their respective
general funds. Any balance remaining in the general fund or in
a fund other than the relief association special fund as of the
effective date of consolidation must be paid to the new general
fund of the subsequent volunteer firefighter relief association.
Sec. 8. [424B.08] [TERMINATION OF PRIOR RELIEF
ASSOCIATIONS.]
Following the transfer of administration, records, special
fund assets, and special fund liabilities from the prior relief
associations to the subsequent volunteer firefighters relief
association, the prior volunteer firefighter relief associations
cease to exist as legal entities for any purpose. The
subsequent relief association secretary shall notify the
following governmental officials of the termination of the
respective volunteer firefighter relief associations and of the
establishment of the subsequent volunteer firefighters relief
association:
(1) Minnesota secretary of state;
(2) Minnesota state auditor;
(3) Minnesota commissioner of revenue; and
(4) commissioner of the federal Internal Revenue Service.
Sec. 9. [424B.09] [ADMINISTRATIVE EXPENSES.]
The payment of authorized administrative expenses of the
subsequent volunteer firefighters relief association must be
from the special fund of the subsequent volunteer firefighters
relief association in accordance with section 69.80, and as
provided for in the bylaws of the subsequent volunteer
firefighters relief association and approved by the board of
trustees of the subsequent volunteer firefighters relief
association. The payment of any other expenses of the
subsequent volunteer firefighters relief association must be
from the general fund of the subsequent volunteer firefighters
relief association in accordance with section 69.80 and as
provided for in the bylaws of the subsequent volunteer
firefighters relief association and approved by the board of
trustees of the subsequent volunteer firefighters relief
association.
Sec. 10. [424B.10] [BENEFITS; FUNDING.]
Subdivision 1. [BENEFITS.] (a) Notwithstanding section
424A.02, subdivision 3, to the contrary, the service pension of
the subsequent relief association as of the effective date of
consolidation is the highest dollar amount service pension
amount of any prior volunteer firefighters relief association in
effect immediately before the consolidation initiation if the
pension amount was implemented consistent with section 424A.02.
(b) Any increase in the service pension amount beyond the
amount implemented under paragraph (a) must conform with the
requirements and limitations of sections 69.771 to 69.775 and
424A.02.
Subd. 2. [FUNDING.] (a) Unless the applicable
municipalities agree in writing to allocate the minimum
municipal obligation in a different manner, the minimum
municipal obligation under section 69.772 or 69.773, whichever
applies, must be allocated between the applicable municipalities
in proportion to their fire state aid.
(b) If any applicable municipality fails to meet its
portion of the minimum municipal obligation to the subsequent
relief association, all other applicable municipalities are
jointly obligated to provide the required funding upon
certification by the relief association secretary. An
applicable municipality that pays the minimum municipal
obligation for another applicable municipality, the municipality
may collect the payment amount, plus a 25 percent surcharge,
from the responsible applicable municipality by any available
means, including deduction from any state aid or payment amount
payable to the responsible municipality upon certification of
the necessary information to the commissioner of finance.
Sec. 11. [424B.20] [DISSOLUTION WITHOUT CONSOLIDATION.]
Subdivision 1. [APPLICABLE DISSOLUTIONS.] This section
applies if the fire department associated with a volunteer
firefighter relief association is dissolved or eliminated by
action of the governing body of the municipality in which the
fire department was located or by the independent nonprofit
firefighting corporation, whichever applies, and no
consolidation with another volunteer firefighter relief
association under sections 424B.01 to 424B.10 is sought, or if a
volunteer firefighter relief association is dissolved or
eliminated with municipal approval, but the fire department
associated with the volunteer firefighter relief association is
not dissolved or eliminated, and no consolidation with another
volunteer firefighter relief association under sections 424B.01
to 424B.10 is applicable.
Subd. 2. [PROCEDURES.] As part of the dissolution process,
all legal obligations of the relief association other than
service pensions and benefits must be settled under subdivision
3, a benefit trust must be established under subdivision 4, and
the affairs of the relief association must be concluded under
subdivision 5.
Subd. 3. [SETTLEMENT OF NONBENEFIT LEGAL OBLIGATIONS.] (a)
Prior to the effective date of the dissolution of the volunteer
firefighter relief association established by the relief
association board of trustees, the board shall determine the
following:
(1) the fair market value of the assets of the special
fund;
(2) the total amount of the accounts payable and other
legal obligations of the special fund, excluding the accrued
liability of the special fund for service pensions and other
benefits; and
(3) the accrued liability of the special fund for service
pensions and other benefits payable or accrued under the
applicable bylaws of the relief association and chapter 424A.
(b) On or before the effective date of the dissolution of
the volunteer firefighter relief association, the board shall
liquidate sufficient special fund assets to pay the legal
obligations of the special fund and must settle those legal
obligations.
(c) On or before the effective date of the dissolution of
the volunteer firefighter relief association, the board shall
settle the legal obligations of the general fund of the relief
association.
Subd. 4. [BENEFIT TRUST FUND ESTABLISHMENT.] (a) After the
settlement of nonbenefit legal obligations of the special fund
of the volunteer firefighter relief association under
subdivision 3, the board of the relief association shall
transfer the remaining assets of the special fund, as securities
or in cash, as applicable, to the chief financial official of
the municipality in which the associated fire department was
located if the fire department was a municipal fire department
or to the chief financial official of the municipality with the
largest population served by the fire department if the fire
department was an independent nonprofit firefighting
corporation. The board shall also compile a schedule of the
relief association members to whom a service pension is or will
be owed, any beneficiary to whom a benefit is owed, the amount
of the service pension or benefit payable based on the
applicable bylaws and state law and the service rendered to the
date of the dissolution, and the date on which the pension or
benefit would first be payable under the bylaws of the relief
association and state law.
(b) The municipality in which is located a volunteer
firefighter relief association that is dissolving under this
section shall establish a separate account in the municipal
treasury which must function as a trust fund for members of the
volunteer firefighter relief association and their beneficiaries
to whom the volunteer firefighter relief association owes a
service pension or other benefit under the bylaws of the relief
association and state law. Upon proper application, on or after
the initial date on which the service pension or benefit is
payable, the municipal treasurer shall pay the pension or
benefit due, based on the schedule prepared under paragraph (a)
and the other records of the dissolved relief association. The
trust fund under this section must be invested and managed
consistent with section 69.775 and chapter 356A. Upon payment
of the last service pension or benefit due and owing, any
remaining assets in the trust fund cancel to the general fund of
the municipality. If the special fund of the volunteer
firefighter relief association had an unfunded actuarial accrued
liability upon dissolution, the municipality is liable for that
unfunded actuarial accrued liability.
Subd. 5. [RELIEF ASSOCIATION AFFAIRS WIND-UP.] Upon
dissolution, the board of trustees of the volunteer firefighter
relief association shall transfer the records of the relief
association to the chief administrative officer of the
applicable municipality. The board shall also notify the
commissioner of revenue, the state auditor, and the secretary of
state of the dissolution within 30 days of the effective date of
the dissolution.
Sec. 12. [424B.21] [ANNUITY PURCHASES UPON DISSOLUTION.]
The board of trustees of a volunteer firefighter relief
association that is scheduled for dissolution may purchase
annuity contracts under section 424A.02, subdivision 8a, instead
of transferring special fund assets to a municipal trust fund
under section 424B.20, subdivision 4. Payment of an annuity for
which a contract is purchased may not commence before the
retirement age specified in the relief association bylaws and in
compliance with section 424A.02, subdivision 1. Legal title to
the annuity contract transfers to the municipal trust fund under
section 424B.20, subdivision 4.
Sec. 13. [REPEALER.]
Minnesota Statutes 1998, section 424A.02, subdivision 11,
is repealed.
Sec. 14. [EFFECTIVE DATE.]
Sections 1 to 13 are effective on July 1, 2000.
ARTICLE 17
MINNEAPOLIS POLICE AND FIREFIGHTERS
RELIEF ASSOCIATION CHANGES
Section 1. Minnesota Statutes 1998, section 423B.01, is
amended to read:
423B.01 [MINNEAPOLIS POLICE RELIEF ASSOCIATION;
DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of sections 423B.01
to 423B.18, unless the context clearly indicates otherwise, each
of the terms defined in this section has the indicated meaning.
Subd. 2. [ACTIVE MEMBER.] "Active member" means a person
who was hired and duly appointed by the city of Minneapolis
before May 1, 1959, as a police stenographer, police clerk,
police telephone operator, police radio operator, or police
mechanic or before June 15, 1980, as a police officer, police
matron, or assistant police matron, who is regularly entered on
the payroll of the police department, and who serves on active
duty.
Subd. 3. [ACTIVE MEMBER PERCENTAGE.] The "active member
percentage" is the total number of units accrued by active
members of the association divided by the sum of the total
number of units to which eligible members are entitled and
active members of the association have accrued.
Subd. 4. [AGE.] "Age" means a person's age at the person's
latest birthday.
Subd. 4 5. [ANNUAL POSTRETIREMENT PAYMENT.] "Annual
postretirement payment" means the payment of a lump sum
postretirement benefit under section 423B.15 to an eligible
member on June 1 following the determination date in any year.
Subd. 5 6. [ASSOCIATION.] "Association" means the
Minneapolis police relief association.
Subd. 7. [CITY.] "City" means the city of Minneapolis.
Subd. 8. [DETERMINATION DATE.] "Determination date" means
December 31 of each year.
Subd. 6 9. [DISABILITY.] "Disability" means a physical or
mental incapacity of an active member to perform the duties of
the person's position in the service of the police department.
Subd. 7 10. [DISCHARGE.] "Discharge" means a complete
separation from service in the police department.
Subd. 8 11. [ELIGIBLE MEMBER.] "Eligible member" means a
person, including a service pensioner, a disability pensioner, a
survivor, or dependent of a deceased active member, service
pensioner, or disability pensioner, who received a pension or
benefit from the relief association during the 12 months before
the determination date.
Subd. 9 12. [EXCESS INVESTMENT INCOME.] "Excess investment
income" means the amount, if any, by which the average time
weighted total rate of return earned by the fund in the most
recent prior five fiscal years has exceeded the actual average
percentage increase in the current monthly salary of a first
grade patrol officer in the most recent prior five fiscal years
plus two percent, and must be expressed as a dollar amount. The
amount may not exceed one percent of the total assets of the
fund, except when the actuarial value of assets of the fund
according to the most recent annual actuarial valuation prepared
in accordance with sections 356.215 and 356.216 is greater than
102 percent of its actuarial accrued liabilities, in which case
the amount must not exceed 1-1/2 percent of the total assets of
the fund, and does not exist unless the yearly average
percentage increase of the time weighted total rate of return of
the fund for the previous five years exceeds by two percent the
yearly average percentage increase in monthly salary of a first
grade patrol officer during the previous five calendar years.
Subd. 10 13. [FUND.] "Fund" means the special fund of the
relief association.
Subd. 14. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess
asset amount payment" means the payment of an additional
postretirement payment under section 2 to an eligible member on
June 1 following the determination date in the given year.
Subd. 15. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total
excess asset amount" is the total excess asset amount stated in
dollars and multiplied by the quantity one minus the active
member percentage.
Subd. 11 16. [RETIRED MEMBER.] "Retired member" means a
former active member who has terminated active service in the
police department and who is entitled to receive a pension or
benefit under sections 423B.01 to 423B.18, as amended, or any
predecessor law.
Subd. 12 17. [SURVIVING SPOUSE MEMBER.] "Surviving spouse
member" means the person who was the legally married spouse of
the member, who was residing with the decedent, and who was
married while or before the time the decedent was an active
member and was on the payroll of the police department, and who,
in case the deceased member was a pensioner or deferred
pensioner, was legally married to the member at least one year
before the decedent's termination of active service with the
police department. The term does not include the surviving
spouse who has deserted a member or who has not been dependent
upon the member for support, nor does it include the surviving
common law spouse of a member.
Subd. 13 18. [TIME WEIGHTED TOTAL RATE OF RETURN.] "Time
weighted total rate of return" means the percentage amount
determined by using the formula or formulas established by the
state board of investment under section 11A.04, clause (11), and
in effect on January 1, 1987.
Subd. 19. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess
asset amount" means the difference, if positive, expressed in
dollars, between the fund's market value of assets after any
deductions required by section 423B.15, subdivision 2, and 110
percent of the actuarial accrued liabilities based on the
actuarial valuation indicated in paragraph (b).
(b) The total excess asset amount in paragraph (a) exists
if the actuarial liability funding ratio, according to the most
recent annual actuarial valuation for the fund prepared in
accordance with sections 69.77, 356.215, and 356.216, with
adjustments required by section 423B.15, subdivision 2, equals
or exceeds 110 percent.
Subd. 14 20. [UNIT.] "Unit" means one-eightieth of the
current monthly salary of a first grade patrol officer.
Subd. 15 21. [ACTUARIAL EQUIVALENT.] "Actuarial
equivalent" or "actuarially equivalent" means the condition of
one annuity or benefit having an equal actuarial present value
as another annuity or benefit, determined as of a given date at
a specified age with each actuarial present value based on the
appropriate mortality table adopted by the board of directors
based on the experience of the fund and approved by the actuary
retained by the legislative commission on pensions and
retirement and using the applicable preretirement or
postretirement interest rate assumptions specified in section
356.216.
Sec. 2. [423B.151] [EXCESS ASSET AMOUNT PAYMENT.]
Subdivision 1. [DETERMINATION OF NET TOTAL EXCESS AMOUNT.]
The board of the association shall determine by May 1 of each
year whether the fund has a total excess asset amount for that
year. If a total excess asset amount exists for the given year,
the net total excess asset amount shall be determined. The
total excess asset amount and net total excess asset amount
shall be reported to the chief administrative officer of the
association, the mayor and governing body of the city, the state
auditor, the commissioner of finance, and the executive director
of the legislative commission on pensions and retirement. The
portion of the net excess asset amount which is distributed
under this section must not be considered as income to or assets
of the fund for actuarial valuations of the fund for that year
under sections 69.77, 356.215, 356.216, and this act, except to
offset the amount distributed.
Subd. 2. [TOTAL AVAILABLE FOR PAYMENT.] Twenty percent of
the net total excess asset amount determined under subdivision 1
is available for excess asset amount payments under subdivision
3.
Subd. 3. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as
limited under subdivision 4, the net excess asset amount payment
to an eligible member is equal to the amount determined under
subdivision 2 multiplied by the units applicable to the eligible
member and divided by the total units of all eligible members.
Subd. 4. [ENTITLEMENT; PRIORITY.] A person who is an
eligible member for the entire 12 months before the
determination date is eligible for a full excess asset amount
payment under subdivision 2. A person who is an eligible member
for less than 12 months before the determination date is
eligible for a prorated excess asset amount payment. If an
eligible member dies after the determination date and before the
excess asset amount payment commences, the association must pay
the eligible member's excess asset amount payment to the
eligible member's surviving spouse or, if no surviving spouse,
to the member's estate.
Subd. 5. [PAYMENT METHOD.] The excess asset amount
payments determined under this section commence on June 1
following the determination date. These amounts may be paid as
a lump sum, disbursed to the eligible members in 12 equal
monthly installments, or any other manner which the board shall
determine.
Subd. 6. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT
PAYMENT.] No provision of this act may be interpreted or relied
upon by any member of the association to guarantee or entitle a
member to a net excess asset amount payment relating to any year
in which there is no net total excess asset amount.
Sec. 3. [423B.19] [CITY OF MINNEAPOLIS; NORMAL COST
CONTRIBUTION ADJUSTMENT.]
Notwithstanding section 69.77, 356.215, 356.216, or any
other law to the contrary, the required city contributions
toward the association's normal cost, as determined by the
actuary, are reduced below that otherwise payable by the full
amount of active member contributions required by law to be
directed to the association's health insurance escrow account
rather than to the special fund.
Sec. 4. [423B.20] [SUSPENSION OF NORMAL COST
CONTRIBUTIONS.]
Notwithstanding the provisions of section 69.77 or any
other law to the contrary, if a total excess asset amount
exists, as defined in section 423B.01, subdivision 19, the city
is not required to make a contribution to the fund for the
normal cost of active members.
Sec. 5. [423B.21] [CHANGE IN AMORTIZATION PERIOD.]
Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding
section 69.77, subdivision 2b; 356.215; 356.216; or any other
law to the contrary, if the actuarial report for the association
indicates an unfunded actuarial accrued liability after the fund
has first achieved 100 percent funding, the unfunded obligation
is to be amortized on a level dollar basis by December 31 of the
year occurring 15 years later. If subsequent actuarial
valuations determine a net actuarial experience loss incurred
during the year which ended as of the day before the most recent
actuarial valuation date, any unfunded liability due to that
loss is to be amortized on a level dollar basis by December 31
of the year occurring 15 years later.
Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the
amortization period may not exceed the average life expectancy
of the remaining members.
Sec. 6. [MINNEAPOLIS FIRE RELIEF ASSOCIATION; SURVIVOR
BENEFIT PAYMENT.]
Subdivision 1. [SURVIVING SPOUSE BENEFIT ELIGIBILITY.] (a)
Notwithstanding Laws 1997, chapter 233, article 4, section 12,
or other law to the contrary, an eligible individual specified
in paragraph (b) is authorized to receive the benefit specified
in subdivision 2.
(b) An eligible individual is an individual born on May 27,
1927, who married a Minneapolis fire relief association retiree
on January 16, 1993, and who is a surviving spouse due to the
death of that retired firefighter on October 2, 1997.
Subd. 2. [BENEFIT.] (a) An eligible individual under
subdivision 1, paragraph (b), is entitled to a surviving spouse
benefit computed under paragraph (f), as added by Laws 1997,
chapter 233, article 4, section 12.
(b) Benefits payable as a result of the benefit authorized
in paragraph (a) commence on the first of the month following
the effective date of this section.
Sec. 7. [DEFINITIONS.]
Subdivision 1. [DEFINITIONS.] Unless the context clearly
indicates otherwise, the following terms have the meaning given
in this section.
Subd. 2. [ACTIVE MEMBER PERCENTAGE.] The "active member
percentage" is the total number of units accrued by active
members of the association divided by the sum of the total
number of units to which eligible members are entitled and
active members of the association have accrued.
Subd. 3. [ASSOCIATION.] "Association" means the
Minneapolis firefighters relief association.
Subd. 4. [CITY.] "City" means the city of Minneapolis.
Subd. 5. [ELIGIBLE MEMBER.] "Eligible member" is a person
who receives a service, survivor, or disability pension payable
from the special fund of the association.
Subd. 6. [FUND.] "Fund" means the association's special
fund.
Subd. 7. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess
asset amount payment" means the payment of an additional
postretirement payment under section 3 to an eligible member on
June 1 following the determination date in the given year.
Subd. 8. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total
excess asset amount" is the total excess asset amount stated in
dollars and multiplied by the quantity one minus the active
member percentage.
Subd. 9. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess
asset amount" means the difference, if positive, expressed in
dollars, between the fund's market value of assets after any
deductions required by Laws 1989, chapter 319, article 19,
section 7, subdivision 3, as amended, and 110 percent of the
actuarial accrued liabilities based on the actuarial valuation
indicated in paragraph (b).
(b) The total excess asset amount in paragraph (a) exists
if the actuarial liability funding ratio, according to the most
recent annual actuarial valuation for the fund prepared in
accordance with Minnesota Statutes, sections 69.77, 356.215, and
356.216, with adjustments required by Laws 1989, chapter 319,
article 19, section 7, subdivision 3, as amended, equals or
exceeds 110 percent.
Sec. 8. [DETERMINATION OF NET TOTAL EXCESS ASSET AMOUNT.]
The board of the association shall determine by May 1 of
each year whether the fund has a total excess asset amount for
that year. If a total excess asset amount exists for the given
year, the net total excess asset amount shall be determined.
The total excess asset amount and net total excess asset amount
shall be reported to the chief administrative officer of the
association, the mayor and governing body of the city, the state
auditor, the commissioner of finance, and the executive director
of the legislative commission on pensions and retirement. The
portion of the net excess asset amount which is distributed
under section 9 must not be considered as income to or assets of
the fund for actuarial valuations of the fund for that year
under Minnesota Statutes, sections 69.77, 356.215, and 356.216,
and this act, except to offset the amount distributed.
Sec. 9. [AMOUNT OF NET EXCESS ASSET AMOUNT PAYMENT.]
Subdivision 1. [TOTAL AVAILABLE FOR PAYMENT.] Twenty
percent of the net total excess asset amount determined under
section 8 is available for net excess asset amount payments
under subdivision 2.
Subd. 2. [NET EXCESS ASSET AMOUNT PAYMENTS.] Except as
limited under subdivision 3, the net excess asset amount payment
to an eligible member is equal to the amount determined under
subdivision 1 multiplied by the units applicable to the eligible
member and divided by the total units of all eligible members.
Subd. 3. [ENTITLEMENT; PRIORITY.] A person who is an
eligible member for the entire 12 months before the
determination date is eligible for a full net excess asset
amount payment under subdivision 2. A person who is an eligible
member for less than 12 months before the determination date is
eligible for a prorated net excess asset amount payment. If an
eligible member dies after the determination date and before the
excess asset amount payment commences, the association must pay
that eligible member's net excess asset amount payment to the
eligible member's estate.
Subd. 4. [PAYMENT METHOD.] The net excess asset amount
payments determined under subdivisions 2 and 3 commence on June
1 following the determination date. These amounts may be paid
as a lump sum, disbursed to the eligible members in 12 equal
monthly installments, or any other manner which the board shall
determine.
Sec. 10. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.]
Notwithstanding Minnesota Statutes, sections 69.77,
356.215, and 356.216, or other law to the contrary, the required
city contributions toward the association's normal cost, as
determined by the actuary, are reduced below that otherwise
payable by the full amount of active member contributions
required by law to be directed to the association's health
insurance escrow account rather than to the special fund.
Sec. 11. [SUSPENSION OF NORMAL COST CONTRIBUTIONS.]
Notwithstanding the provisions of Minnesota Statutes,
section 69.77, or any other law to the contrary, if a total
excess asset amount exists, as defined in section 7, subdivision
9, the city is not required to make a contribution to the fund
for the normal cost of active members.
Sec. 12. [NO GUARANTEE OF ANNUAL RESIDUAL INVESTMENT
PAYMENT.]
No provision of this act may be interpreted or relied upon
by any member of the association to guarantee or entitle a
member to a net excess asset amount payment relating to any year
in which there is no net total excess asset amount.
Sec. 13. [CHANGE IN AMORTIZATION PERIOD.]
Subdivision 1. [AMORTIZATION TREATMENT.] Notwithstanding
Minnesota Statutes, section 69.77, subdivision 2b; 356.215;
356.216; or any other law to the contrary, if the actuarial
report for the Minneapolis firefighters relief association
indicates an unfunded actuarial accrued liability, the unfunded
obligation is to be amortized on a level dollar basis by
December 31 of the year occurring 15 years later. If subsequent
actuarial valuations determine a net actuarial experience loss
incurred during the year which ended as of the day before the
most recent actuarial valuation date, any unfunded liability due
to that loss is to be amortized on a level dollar basis by
December 31 of the year occurring 15 years later.
Subd. 2. [LIMITATION.] Notwithstanding subdivision 1, the
amortization period may not exceed the average life expectancy
of the remaining members.
Sec. 14. [EFFECTIVE DATE.]
(a) Sections 1 to 5 are effective on the day after the date
on which the Minneapolis city council and the chief clerical
officer of the city of Minneapolis complete, in a timely manner,
their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
(b) Section 6 is effective on the day after the date on
which the Minneapolis city council and the chief clerical
officer of the city of Minneapolis complete, in a timely manner,
their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3. Section 5, if approved, applies
retroactively to contributions beginning after July 1, 1990.
(c) Sections 7 to 13 are effective on the day after the
date on which the Minneapolis city council and the chief
clerical officer of the city of Minneapolis complete, in a
timely manner, their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3. Section 5, if approved, applies
retroactively to contributions beginning after July 1, 1990.
ARTICLE 18
JUDGES RETIREMENT PLAN
MODIFICATIONS
Section 1. Minnesota Statutes 1998, section 352D.02,
subdivision 1, is amended to read:
Subdivision 1. [COVERAGE.] (a) Employees enumerated in
paragraph (c), clauses (2), (3), (4), and (6) to (15), if they
are in the unclassified service of the state or metropolitan
council and are eligible for coverage under the general state
employees retirement plan under chapter 352, are participants in
the unclassified program under this chapter unless the employee
gives notice to the executive director of the Minnesota state
retirement system within one year following the commencement of
employment in the unclassified service that the employee desires
coverage under the general state employees retirement plan. For
the purposes of this chapter, an employee who does not file
notice with the executive director is deemed to have exercised
the option to participate in the unclassified plan.
(b) Persons referenced in paragraph (c), clauses (1) and
(5), are participants in the unclassified program under this
chapter unless the person is eligible to elect different
coverage under section 3A.07 or 352C.011 and, after July 1,
1998, elects retirement coverage by the applicable alternative
retirement plan. Persons referenced in paragraph (c), clause
(16), are participants in the unclassified program under this
chapter for judicial employment in excess of the service credit
limit in section 490.121, subdivision 22.
(c) Enumerated employees and referenced persons are:
(1) the governor, the lieutenant governor, the secretary of
state, the state auditor, the state treasurer, and the attorney
general;
(2) an employee in the office of the governor, lieutenant
governor, secretary of state, state auditor, state treasurer,
attorney general;
(3) an employee of the state board of investment;
(4) the head of a department, division, or agency created
by statute in the unclassified service, an acting department
head subsequently appointed to the position, or an employee
enumerated in section 15A.0815 or 15A.083, subdivision 4;
(5) a member of the legislature;
(6) a permanent, full-time unclassified employee of the
legislature or a commission or agency of the legislature or a
temporary legislative employee having shares in the supplemental
retirement fund as a result of former employment covered by this
chapter, whether or not eligible for coverage under the
Minnesota state retirement system;
(7) a person who is employed in a position established
under section 43A.08, subdivision 1, clause (3), or in a
position authorized under a statute creating or establishing a
department or agency of the state, which is at the deputy or
assistant head of department or agency or director level;
(8) the regional administrator, or executive director of
the metropolitan council, general counsel, division directors,
operations managers, and other positions as designated by the
council, all of which may not exceed 27 positions at the council
and the chair, provided that upon initial designation of all
positions provided for in this clause, no further designations
or redesignations may be made without approval of the board of
directors of the Minnesota state retirement system;
(9) the executive director, associate executive director,
and not to exceed nine positions of the higher education
services office in the unclassified service, as designated by
the higher education services office before January 1, 1992, or
subsequently redesignated with the approval of the board of
directors of the Minnesota state retirement system, unless the
person has elected coverage by the individual retirement account
plan under chapter 354B;
(10) the clerk of the appellate courts appointed under
article VI, section 2, of the Constitution of the state of
Minnesota;
(11) the chief executive officers of correctional
facilities operated by the department of corrections and of
hospitals and nursing homes operated by the department of human
services;
(12) an employee whose principal employment is at the state
ceremonial house;
(13) an employee of the Minnesota educational computing
corporation;
(14) an employee of the world trade center board; and
(15) an employee of the state lottery board who is covered
by the managerial plan established under section 43A.18,
subdivision 3; and
(16) a judge who has exceeded the service credit limit in
section 490.121, subdivision 22.
Sec. 2. Minnesota Statutes 1998, section 352D.04,
subdivision 2, is amended to read:
Subd. 2. [CONTRIBUTION RATES.] (a) The money used to
purchase shares under this section is the employee and employer
contributions provided in this subdivision.
(b) The employee contribution is an amount equal to the
employee contribution specified in section 352.04, subdivision 2.
(c) The employer contribution is an amount equal to six
percent of salary.
(d) These contributions must be made in the manner provided
in section 352.04, subdivisions 4, 5, and 6.
(e) For members of the legislature, the contributions under
this subdivision also must be made on per diem payments received
during a regular or special legislative session, but may not be
made on per diem payments received outside of a regular or
special legislative session, on the additional compensation
attributable to a leadership position under section 3.099,
subdivision 3, living expense payments under section 3.101, or
special session living expense payments under section 3.103.
(f) For a judge who is a member of the unclassified plan
under section 352D.02, subdivision 1, paragraph (c), clause
(16), the employee contribution rate is eight percent of salary,
and there is no employer contribution.
Sec. 3. Minnesota Statutes 1998, section 356.30,
subdivision 1, is amended to read:
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (1)
Notwithstanding any provisions to the contrary of the laws
governing the funds enumerated in subdivision 3, a person who
has met the qualifications of clause (2) may elect to receive a
retirement annuity from each fund in which the person has at
least six months allowable service, based on the allowable
service in each fund, subject to the provisions of clause (3).
(2) A person may receive upon retirement a retirement
annuity from each fund in which the person has at least six
months allowable service, and augmentation of a deferred annuity
calculated under the laws governing each public pension plan or
fund named in subdivision 3, from the date the person terminated
all public service if:
(a) the person has allowable service totaling an amount
that allows the person to receive an annuity in any two or more
of the enumerated funds; and
(b) the person has not begun to receive an annuity from any
enumerated fund or the person has made application for benefits
from all funds and the effective dates of the retirement annuity
with each fund under which the person chooses to receive an
annuity are within a one-year period.
(3) The retirement annuity from each fund must be based
upon the allowable service in each fund, except that:
(a) The laws governing annuities must be the law in effect
on the date of termination from the last period of public
service under a covered fund with which the person earned a
minimum of one-half year of allowable service credit during that
employment.
(b) The "average salary" on which the annuity from each
covered fund in which the employee has credit in a formula plan
shall be based on the employee's highest five successive years
of covered salary during the entire service in covered funds.
(c) The formula percentages to be used by each fund must be
those percentages prescribed by each fund's formula as continued
for the respective years of allowable service from one fund to
the next, recognizing all previous allowable service with the
other covered funds.
(d) Allowable service in all the funds must be combined in
determining eligibility for and the application of each fund's
provisions in respect to actuarial reduction in the annuity
amount for retirement prior to normal retirement.
(e) The annuity amount payable for any allowable service
under a nonformula plan of a covered fund must not be affected
but such service and covered salary must be used in the above
calculation.
(f) This section shall not apply to any person whose final
termination from the last public service under a covered fund is
prior to May 1, 1975.
(g) For the purpose of computing annuities under this
section the formula percentages used by any covered fund, except
the public employees police and fire fund, the judges'
retirement fund, and the state patrol retirement fund, must not
exceed the percent specified in section 356.19, subdivision 4,
per year of service for any year of service or fraction
thereof. The formula percentage used by the public employees
police and fire fund and the state patrol retirement fund must
not exceed the percent specified in section 356.19, subdivision
6, per year of service for any year of service or fraction
thereof. The formula percentage used by the judges' retirement
fund must not exceed the percent specified in section 356.19,
subdivision 8, per year of service for any year of service or
fraction thereof. The formula percentage used by the
legislators retirement plan and the elective state officers
retirement must not exceed 2.5 percent, but this limit does not
apply to the adjustment provided under section 3A.02,
subdivision 1, paragraph (c), or 352C.031, paragraph (b).
(h) Any period of time for which a person has credit in
more than one of the covered funds must be used only once for
the purpose of determining total allowable service.
(i) If the period of duplicated service credit is more than
six months, or the person has credit for more than six months
with each of the funds, each fund shall apply its formula to a
prorated service credit for the period of duplicated service
based on a fraction of the salary on which deductions were paid
to that fund for the period divided by the total salary on which
deductions were paid to all funds for the period.
(j) If the period of duplicated service credit is less than
six months, or when added to other service credit with that fund
is less than six months, the service credit must be ignored and
a refund of contributions made to the person in accord with that
fund's refund provisions.
Sec. 4. Minnesota Statutes 1998, section 490.121,
subdivision 4, is amended to read:
Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means a
whole year, or any fraction thereof, subject to the service
credit limit in subdivision 22, served as a judge at any time,
or served as a referee in probate for all referees in probate
who were in office prior to January 1, 1974.
Sec. 5. Minnesota Statutes 1998, section 490.121, is
amended by adding a subdivision to read:
Subd. 22. [SERVICE CREDIT LIMIT.] "Service credit limit"
means the greater of: (1) 24 years of allowable service under
chapter 490; or (2) for judges with allowable service rendered
prior to July 1, 1980, the number of years of allowable service
under chapter 490, which, when multiplied by the percentage
listed in section 356.19, subdivision 7 or 8, whichever is
applicable to each year of service, equals 76.8.
Sec. 6. Minnesota Statutes 1998, 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 whose service does not exceed the
service credit limit in section 490.121, subdivision 22, shall
contribute to the fund from each salary payment a sum equal to
8.00 percent of salary.
(b) A judge not so covered whose service does not exceed
the service credit limit in section 490.121, subdivision 22,
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. 7. Minnesota Statutes 1998, section 490.123,
subdivision 1b, is amended to read:
Subd. 1b. [EMPLOYER CONTRIBUTION RATE.] The employer
contribution rate to the fund on behalf of a judge is 20.5
percent of salary and continues after a judge exceeds the
service credit limit in section 490.121, subdivision 22.
The employer contribution must be paid by the state court
administrator and is payable at the same time as member
contributions under subdivision 1a or employee contributions to
the unclassified plan in chapter 352D for judges whose service
exceeds the limit in section 490.121, subdivision 22, are
remitted.
Sec. 8. Minnesota Statutes 1998, section 490.124,
subdivision 1, is amended to read:
Subdivision 1. [BASIC RETIREMENT ANNUITY.] Except as
qualified hereinafter from and after mandatory retirement date,
normal retirement date, early retirement date, or one year from
the disability retirement date, as the case may be, a retirement
annuity shall be payable to a retiring judge from the judges'
retirement fund in an amount equal to: (1) the percent
specified in section 356.19, subdivision 7, multiplied by the
judge's final average compensation multiplied by the number of
years and fractions of years of allowable service rendered prior
to July 1, 1980; plus (2) the percent specified in section
356.19, subdivision 8, multiplied by the judge's final average
compensation multiplied by the number of years and fractions of
years of allowable service rendered after June 30, 1980;
provided that the annuity must not exceed 70 percent of the
judge's annual salary for the 12 months immediately preceding
retirement. Service that exceeds the service credit limit in
section 490.121, subdivision 22, must be excluded in calculating
the retirement annuity, but compensation earned during this
service must be used in determining a judge's final average
compensation and calculating the retirement annuity.
Sec. 9. [PRIOR SERVICE.]
This section applies to a person who is a judge on July 1,
2000, and whose service under Minnesota Statutes, chapter 490,
on that date exceeds the service credit limit in Minnesota
Statutes, section 490.121, subdivision 22. A judge to whom this
section applies may elect to have money transferred from the
judges' plan to the judge's account in the unclassified
employees plan in Minnesota Statutes, chapter 352D. The amount
to be transferred is eight percent of the salary the judge
earned after reaching the service credit limit defined in
Minnesota Statutes, section 490.121, subdivision 22. A judge
electing this transfer forfeits all service credit under
Minnesota Statutes, chapter 490, that exceeds the limit in
Minnesota Statutes, section 490.121, subdivision 22. An
election under this section must be made before retirement as a
judge, and within 120 days of the effective date of this
section. The election must be made on a form and in a manner
specified by the executive director of the Minnesota state
retirement system.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective on July 1, 2000.
ARTICLE 19
VARIOUS INDIVIDUAL AND SMALL GROUP
PENSION PROVISIONS
Section 1. [MSRS-GENERAL; LATE DISABILITY BENEFIT
APPLICATION AUTHORIZED.]
(a) Notwithstanding any provision of Minnesota Statutes,
section 352.113, subdivision 4, to the contrary, a person
described in paragraph (b) is authorized to apply for a
disability benefit from the general state employees retirement
plan of the Minnesota state retirement system under Minnesota
Statutes, section 352.113.
(b) An eligible person is a person who:
(1) was born on October 3, 1952;
(2) was employed by the department of economic security
from August 1978 to December 1994;
(3) is disabled within the meaning of Minnesota Statutes,
section 352.01, subdivision 17;
(4) began receiving social security disability insurance
benefits in January 1995; and
(5) began part-time employment in January 1998 and
continues in that employment with the Minnesota state council on
disability.
(c) The eligible person under paragraph (b) must provide,
in conjunction with the disability application, any relevant
evidence that the executive director of the Minnesota state
retirement system requires about the existence of a total and
permanent disability as defined in Minnesota Statutes, section
352.01, subdivision 17, and about the date on which the
disability occurred and its relationship to the termination of
active service in December 1994.
(d) If the eligible person files a disability benefit
application and if the eligible person provides sufficient
evidence of disability and the occurrence of the disability
under paragraph (c), the disability benefit becomes payable for
the first month next following the application and applicable
evidence. The disability benefit must be calculated under the
laws in effect at the time that the eligible person terminated
active service in December 1994. The disability benefit must
include any applicable deferred annuities augmentation under
Minnesota Statutes, section 352.72, subdivision 2.
(e) Nothing in this section may be deemed to exempt the
eligible person from the partial reemployment of a disabilitant
provision described in Minnesota Statutes, section 352.113,
subdivision 7.
Sec. 2. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; SERVICE
CREDIT PURCHASE FOR UNCREDITED HENNEPIN COUNTY EMPLOYMENT.]
(a) An eligible person described in paragraph (b) is
entitled to obtain one year of allowable service credit from the
general employees retirement plan of the public employees
retirement association.
(b) An eligible person is a person who:
(1) was born April 12, 1936;
(2) retired from the teachers retirement association on
July 1, 1997;
(3) is currently a recipient of a retirement annuity from
the teachers retirement association and a retirement annuity
from the general state employees retirement plan of the
Minnesota state retirement system; and
(4) was employed during the period September 1966 through
September 1967 by Hennepin county as a parole officer, when
member contributions for retirement coverage were deducted, but
for which no allowable service credit in the general employees
retirement plan of the public employees retirement association
was recorded.
(c) Notwithstanding any provision of Minnesota Statutes,
sections 353.29, subdivision 7, and 356.30, to the contrary, an
eligible person may file an application for a retirement annuity
from the general employees retirement plan of the public
employees retirement association retroactive to July 1, 1997,
with benefits paid retroactive to that date, and may have the
annuity calculated as a combined service annuity.
(d) The allowable service credit must be granted by the
public employees retirement association upon the filing of a
valid retirement application by the eligible person.
(e) Within 30 days of the receipt of that application by
the public employees retirement association and notification by
the public employees retirement association to the county
administrator, Hennepin county may pay one-half of the prior
service credit purchase payment amount calculated under
Minnesota Statutes, section 356.55. If Hennepin county does not
pay the required amount in a timely fashion, the executive
director of the public employees retirement association shall
notify the commissioner of finance of that fact and the
commissioner shall deduct from any state aid or state
appropriation payable to Hennepin county that amount, plus
interest on that amount of 1.5 percent per month for each month
or portion of a month from the filing of the retirement
application under paragraph (d) to the date of deduction.
(f) An amount equal to one-half of the prior service credit
purchase payment amount calculated under Minnesota Statutes,
section 356.55, must be charged against the public employees
retirement association as an administrative expense.
(g) This allowable service credit provision expires on
January 1, 2001.
Sec. 3. [PAYMENT OF OMITTED SALARY DEDUCTIONS.]
Subdivision 1. [APPLICATION.] A person who was born on
October 23, 1943, was employed by Dakota county as a part-time
maintenance employee on October 16, 1985, and first had public
employees retirement association member contributions deducted
as of September 15, 1986, is entitled to purchase eight months
of service credit from the public employees retirement
association.
Subd. 2. [PAYMENT.] The purchase payment amount for the
service credit purchase authorized in subdivision 1 is governed
by Minnesota Statutes, section 356.55. Notwithstanding any
provision of Minnesota Statutes, section 356.55, subdivision 5,
to the contrary, the eligible person must pay, on or before June
1, 2001, an amount equal to the employee contribution rate
applied to the person's actual salary rate in effect between
January 17, 1986, and September 15, 1986, plus annual compound
interest at the rate of 8.5 percent from the date that the
employer contributions should have been paid and the date of
actual payment. Dakota county shall pay the balance of the
required purchase payment amount within 30 days of the payment
by the eligible person. If Dakota county fails to pay its
required amount, the executive director of the public employees
retirement association may notify the commissioner of finance of
that fact and the commissioner of finance may order that the
required amount be deducted from any subsequent state payment to
Dakota county and transmitted to the public employees retirement
association.
Subd. 3. [APPLICATION; DOCUMENTATION.] A person described
in subdivision 1 must apply with the executive director of the
public employees retirement association to make the purchase.
The application must be in writing and must include all
necessary documentation of the applicability of this section and
any other relevant information that the executive director may
require.
Subd. 4. [LIMITATION.] Authority under this section
expires on July 1, 2001.
Sec. 4. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; REDUCED
SERVICE CREDIT REQUIREMENT FOR DISABILITY BENEFIT APPLICATION.]
(a) An eligible person described in paragraph (b) is
entitled to apply for a disability benefit from the general
employees retirement plan of the public employees retirement
association with 14 months of service credit subsequent to the
person's last termination of membership, notwithstanding any
provision to the contrary of Minnesota Statutes, section 353.33,
subdivision 1.
(b) An eligible person is a person who:
(1) was born on May 30, 1945;
(2) began public employment with Todd county in November
1978;
(3) first terminated public employment in August 1982;
(4) resumed public employment with Morrison county in
October 1987;
(5) subsequently terminated public employment with Meeker
county in November 1997;
(6) resumed public employment with Todd county in August
1998; and
(7) subsequently terminated public employment October 8,
1999.
Sec. 5. [TEACHERS RETIREMENT ASSOCIATION; REFUND OF
CERTAIN INTEREST CHARGES.]
(a) Upon filing a written demand for the interest refund, a
person described in paragraph (b) is entitled to receive a
refund of interest specified in paragraph (c) for the period
during which the teachers retirement association was negligent
in providing accurate information to the eligible person or was
negligent in making timely reports to other Minnesota public
pension plans in which the eligible person has service credit.
(b) An eligible person is a person who:
(1) retired from the teachers retirement association
effective September 1, 1999;
(2) repaid a previously taken refund to the teachers
retirement association on August 23, 1999, restoring 10.979
years of allowable service credit;
(3) began the retirement application and refund repayment
process in February 1999 and was first able to file retirement
forms with the teachers retirement association office on August
27, 1999; and
(4) was charged interest on the repayment of refund for the
period during which the teachers retirement association failed
to provide requested information and failed to contact the
public employees retirement association and the St. Paul
teachers retirement fund association.
(c) The refund interest rate is 0.708 percent per month,
compounded monthly, on the refund repayment amount that would
have been payable on April 15, 1999, applied to the period April
15, 1999, to August 23, 1999, and 8.5 percent per year,
compounded annually, on that initially determined amount from
August 23, 1999, until the interest repayment is made.
(d) The interest refund is payable on the first day of the
month next following the date on which the eligible person files
the written demand under paragraph (a).
Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR
UNCREDITED TEACHING SERVICE PERIODS.]
(a) An eligible person described in paragraph (b) is
entitled to purchase allowable service credit from the
Minneapolis teachers retirement fund association basic program
for the periods of teaching employment specified in paragraph
(c) by making the payment required under Minnesota Statutes,
section 356.55.
(b) An eligible person is a person who:
(1) was employed by special school district No. 1
(Minneapolis) as a long call reserve teacher from October 1972
to June 1973 and was covered by the Minneapolis employees
retirement fund;
(2) was employed by special school district No. 1
(Minneapolis) as a school social worker at Franklin junior high
school from August 28, 1973, through June 12, 1974, and from
August 29, 1974, through June 11, 1975, without retirement
coverage;
(3) was employed by special school district No. 1
(Minneapolis) as a school social worker at North high school
from August 29, 1975, through December 19, 1975, covered by the
Minneapolis teachers retirement fund association;
(4) was retained by special school district No. 1
(Minneapolis) in the capacity of a school social worker at North
high school as an hourly wage social worker from August 1976
through June 1983 without retirement coverage; and
(5) is currently employed by Hennepin county covered by the
public employees retirement association.
(c) The periods for allowable service credit purchase are
August 28, 1973, through June 12, 1974; and August 29, 1974,
through June 11, 1975.
(d) An eligible person must provide any relevant
documentation related to eligibility to make this service credit
purchase required by the executive director of the Minneapolis
teachers retirement fund association.
(e) Allowable service credit for the purchase periods must
be granted by the Minneapolis teachers retirement fund
association to the account of the eligible person upon receipt
of the prior service credit purchase payment amount.
(f) The prior service credit purchase payment amount shall
be computed by the actuary retained by the legislative
commission on pensions and retirement. That computation must,
in applying the process stated in Minnesota Statutes, section
356.55, give recognition to the liabilities that would be
created in the Minneapolis teachers retirement fund association
and other Minnesota public pension funds due to the service
credit purchase.
(g) Following receipt of that purchase payment amount, the
executive director of the Minneapolis teachers retirement fund
association shall allocate and transmit that amount to the
applicable pension administrations, as determined under
paragraph (f).
Sec. 7. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION;
PRIOR SERVICE CREDIT PURCHASE AUTHORIZATION.]
(a) Notwithstanding any provision of law to the contrary, a
person described in paragraph (b) is authorized to purchase
allowable service credit from the basic program of the
Minneapolis teachers retirement fund association for the period
described in paragraph (c) by making the payment specified in
paragraph (d).
(b) An eligible person for purposes of paragraph (a) is a
person who:
(1) was born on October 1, 1942;
(2) is currently employed by special school district No. 1
(Minneapolis) and is currently a member of the Minneapolis
teachers retirement fund association;
(3) was initially hired by special school district No. 1
(Minneapolis) on November 13, 1967, and taught at Sanford junior
high school until June 1968;
(4) was reemployed by special school district No. 1
(Minneapolis) as an adult basic education English and social
studies teacher on May 25, 1970, and continued to teach in that
program until December 17, 1984; and
(5) as a result of binding arbitration of an employment
dispute, was employed by special school district No. 1
(Minneapolis) as an English teacher at Franklin junior high
school on December 17, 1984.
(c) The service credit purchase period is any period
between May 25, 1970, to December 17, 1984, that has not
previously been credited by the Minneapolis teachers retirement
fund association.
(d) To purchase the allowable service credit, the eligible
person must pay to the Minneapolis teachers retirement fund
association the prior service credit purchase payment calculated
under Minnesota Statutes, section 356.55.
(e) The eligible person must provide all relevant
documentation of the applicability of the requirements set forth
in paragraph (b) and any other applicable information that the
executive director of the Minneapolis teachers retirement fund
association may request.
(f) This prior service credit purchase authority expires on
July 1, 2001, or on the date of the eligible person's
termination of active service with special school district No. 1
(Minneapolis), whichever is earlier.
Sec. 8. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR
INDEPENDENT CONTRACT UNCREDITED TEACHING SERVICE PERIOD.]
(a) An eligible person described in paragraph (b) is
authorized to purchase allowable service credit from the
Minneapolis teachers retirement fund association for the period
of teaching employment specified in paragraph (c) by making the
payment required under Minnesota Statutes, section 356.55, by
the last date authorized for receiving payment under that
section, or the eligible person's effective date of retirement,
whichever is earlier.
(b) An eligible person is a person who:
(1) was born on May 22, 1939;
(2) was employed by special school district No. 1
(Minneapolis) and covered as an active member by the Minneapolis
teachers retirement fund association from July 27, 1962, to June
11, 1967; and
(3) was retained by special school district No. 1
(Minneapolis) at an hourly wage rate as a teacher in the adult
basic education program from April 23, 1980, to September 28,
1992.
(c) The period for allowable service credit purchase is
from April 23, 1980, to September 28, 1992.
(d) An eligible person under paragraph (b) must provide any
relevant documentation related to eligibility to make this
service credit purchase which is required by the executive
director of the Minneapolis teachers retirement fund association.
(e) Allowable service credit for the purchase periods must
be granted by the Minneapolis teachers retirement fund
association to the account of the eligible person upon receipt
of the prior service credit purchase payment amount.
(f) A service credit purchase is not authorized for any
portion of the April 23, 1980, to September 28, 1992, period for
which the eligible individual signed an independent contract
which waives pension coverage by the Minneapolis teachers
retirement fund association for the period covered by the
contract, or for any period for which administrators for special
school district No. 1 (Minneapolis) or the Minneapolis teachers
retirement fund association determine that the individual was
serving as an independent contractor.
Sec. 9. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR TEMPORARY
EMPLOYMENT PERIOD.]
(a) An eligible person described in paragraph (b) is
entitled to purchase allowable service credit from the
Minneapolis employees retirement fund for the period of
temporary employment specified in paragraph (c) by making the
payment required under Minnesota Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was born on August 15, 1951;
(2) was hired by the city of Minneapolis as a maintenance
worker/truck driver on June 1, 1976, and was covered by the
Minneapolis employees retirement fund for that employment; and
(3) is currently employed by the city of Minneapolis and
covered by the Minneapolis employees retirement association.
(c) The period for allowable service credit purchase is a
period during 1975 during which the eligible person was employed
by the city of Minneapolis as a temporary employee.
(d) An eligible person must provide any relevant
documentation related to eligibility to make this service credit
purchase required by the executive director of the Minneapolis
employees retirement fund.
(e) Allowable service credit for the purchase periods must
be granted by the Minneapolis employees retirement fund to the
account of the eligible person upon receipt of the prior service
credit purchase payment amount. To receive the service credit,
the service credit purchase must be received by the Minneapolis
employees retirement fund by October 1, 2001, or prior to
retirement, whichever is earlier.
Sec. 10. [MERF; PRIOR SERVICE CREDIT PURCHASE FOR
TEMPORARY EMPLOYMENT PERIOD.]
(a) An eligible person described in paragraph (b) is
entitled to purchase allowable service credit from the
Minneapolis employees retirement fund for the period or periods
of temporary employment specified in paragraph (c) by making the
payment required under Minnesota Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was born on December 17, 1953;
(2) was hired by the city of Minneapolis as a full-time
maintenance worker on February 2, 1974, and was covered by the
Minneapolis employees retirement fund for that employment; and
(3) is currently employed by the city of Minneapolis,
covered by the Minneapolis employees retirement association.
(c) The periods for allowable service credit purchase are
periods during 1974 and 1975 during which the eligible person
was employed by the city of Minneapolis as a temporary employee.
(d) An eligible person must provide any relevant
documentation related to eligibility to make this service credit
purchase required by the executive director of the Minneapolis
employees retirement fund.
(e) Allowable service credit for the purchase periods must
be granted by the Minneapolis employees retirement fund to the
account of the eligible person upon receipt of the prior service
credit purchase payment amount. To receive the service credit,
the service credit purchase must be received by the Minneapolis
employees retirement fund by October 1, 2001, or prior to
retirement, whichever is earlier.
Sec. 11. [EFFECTIVE DATE.]
(a) Sections 1, 2, and 4 to 10 are effective on the day
following final enactment.
(b) Section 3 is effective on the day after the date on
which the Dakota county board of commissioners and the chief
clerical officer of Dakota county complete, in a timely manner,
their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
(c) Section 1 expires, if not utilized, on December 31,
2000.
Presented to the governor May 11, 2000
Signed by the governor May 15, 2000, 10:56 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes