Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 392-H.F.No. 3127
An act relating to retirement; various retirement
plans; clarifying the laws applicable to the remaining
local police and paid firefighter pension plans;
repealing obsolete local police and paid firefighter
pension plan laws; providing public employee pension
coverage for certain foreign citizens; clarifying
membership eligibility and allowable service credit
for the public employees retirement association;
requiring membership for charter school teachers in
the teachers retirement association; providing for the
payment of unpaid closed charter school retirement
contributions from charter school lease aid;
eliminating contribution rate increases in the local
government correctional service retirement plan;
establishing provisions relating to employees of the
Kanabec hospital if the hospital is privatized;
extending the expiration date for certain prior
service credit purchase authorizations; recodifying
social security coverage provisions; implementing
recommended changes in salary actuarial assumptions;
clarifying the restrictions on supplemental and local
pension plans for plans funded from accumulated sick
and vacation leave; reorganizing and revising various
general retirement provisions; instructing the revisor
of statutes; authorizing the commissioner of
administration to lease pension fund facilities to
deferred compensation service providers; authorizing
certain volunteer firefighters to receive service
pensions or disability benefits without terminating
active service; amending Minnesota Statutes 2000,
sections 69.77; 69.80; 353.01, by adding a
subdivision; 353.64, subdivision 7a; 353A.08,
subdivision 6a; 353E.02, subdivision 1, by adding a
subdivision; 353E.03; 353F.02, subdivision 4;
354A.011, subdivision 27; 354A.12, subdivision 3d;
355.01, subdivisions 1, 3, 6, 8, by adding
subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08;
356.001; 356.20, subdivisions 1, 2, 3, 4, 4a; 356.215,
as amended; 356.216; 356.217; 356.219; 356.22; 356.23;
356.24, subdivisions 1b, 1c, 2; 356.245; 356.25;
356.30; 356.302; 356.303; 356.32; 356.40; 356.41;
356.50; 356.55, as amended; 356.551; 356.611; 356.65,
subdivision 2; 356.87; 356.89, subdivision 3; 423A.17;
423A.171; 423B.09, subdivision 6; 424A.02, subdivision
1; 424A.09; Minnesota Statutes 2001 Supplement,
sections 352.01, subdivision 11; 353.01, subdivisions
2a, 2b, 11b, 16; 353.27, subdivisions 4, 11; 354.05,
subdivisions 2, 13; 356.24, subdivision 1; 356.555;
356.62; 356.65, subdivision 1; Laws 1997,chapter 202,
article 2, section 61, as amended; Laws 1999, chapter
222, article 16, section 16; Laws 2000, chapter 461,
article 10, section 3, as amended; Laws 2000, chapter
461, article 12, section 20; Laws 2001, First Special
Session chapter 10, article 6, section 21; proposing
coding for new law in Minnesota Statutes, chapters 3A;
355; 356; proposing coding for new law as Minnesota
Statutes, chapter 356B; repealing Minnesota Statutes
2000, sections 69.25; 69.26; 69.27; 69.28; 69.29;
69.30; 69.32; 69.361; 69.37; 69.38; 69.39; 69.40;
69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47;
69.48; 69.49; 69.50; 69.51; 69.52; 69.53; 69.62;
69.78; 297I.10, subdivision 2; 355.01, subdivisions 2,
4, 5, 9, 10; 355.11; 355.12; 355.13; 355.14; 355.15;
355.16; 355.17; 355.201; 355.202; 355.203; 355.204;
355.205; 355.206; 355.207; 355.208; 355.209; 355.21;
355.22; 355.23; 355.24; 355.25; 355.26; 355.27;
355.28; 355.281; 355.282; 355.283; 355.284; 355.285;
355.286; 355.287; 355.288; 355.29; 355.291; 355.292;
355.293; 355.294; 355.295; 355.296; 355.297; 355.298;
355.299; 355.30; 355.311; 355.391; 355.392; 355.393;
355.41; 355.42; 355.43; 355.44; 355.45; 355.46;
355.48; 355.49; 355.50; 355.51; 355.52; 355.54;
355.55; 355.56; 355.57; 355.58; 355.59; 355.60;
355.61; 355.621; 355.622; 355.623; 355.624; 355.625;
355.626; 355.627; 355.628; 355.71; 355.72; 355.73;
355.74; 355.75; 355.76; 355.77; 355.78; 355.79;
355.80; 355.81; 355.90; 356.19; 356.305; 356.306;
356.31; 356.325; 356.35; 356.36; 356.37; 356.371,
subdivisions 2, 3; 356.372; 356.38; 356.39; 356.45;
356.451; 356.452; 356.453; 356.454; 356.455; 356.615;
356.71; 356.80; 356.81; 356.86; 356.865; 356.88;
356.89; 423.37; 423.371; 423.372; 423.373; 423.374;
423.375; 423.377; 423.378; 423.379; 423.38; 423.381;
423.382; 423.383; 423.384; 423.385; 423.386; 423.387;
423.388; 423.389; 423.39; 423.391; 423.392; 423.801;
423.802; 423.803; 423.804; 423.805; 423.806; 423.808;
423.809; 423.810; 423.812; 423.813; 423.814; 423.90;
423A.03; 424.01; 424.02; 424.03; 424.04; 424.05;
424.06; 424.08; 424.14; 424.15; 424.16; 424.165;
424.17; 424.18; 424.19; 424.20; 424.21; 424.22;
424.23; 424.24; 424.25; 424.27; 424.28; 424.29;
Minnesota Statutes 2001 Supplement, sections 353.01,
subdivision 39; 356.371, subdivision 1; 356.866;
Special Laws 1889, chapter 425; Special Laws 1891,
chapter 11; Laws 1897, chapters 389; 390; Laws 1915,
chapter 68; Laws 1917, chapter 196; Laws 1919,
chapters 68, 515; Laws 1921, chapter 118; Laws 1923,
chapter 54; Laws 1925, chapter 197; Laws 1931, chapter
48; Laws 1933, chapter 122; Laws 1935, chapters 92;
192; 208; 259; Laws 1937, chapters 132; 197; 253; Laws
1939, chapters 124; 304; Laws 1941, chapters 74; 182;
196; Laws 1943, chapters 170; 267; 397; 413; 432; Laws
1945, chapters 74; 182; 277; 300; Laws 1947, chapters
40; 43; 101; 274; 329; Laws 1949, chapters 87; 144;
153; 154; 164; 191; 235; 281; 378; Laws 1951, chapters
43; 45; 48; 144; 233; 243; 420; 435; 499; Laws 1953,
chapters 37; 44; 91; 235; 253; 348; 391; 401; 406;
Laws 1955, chapters 42; 49; 75; 151; 187; 188; 293;
294; 348; 375; 827; Laws 1957, chapters 10; 16; 36;
127; 144; 164; 256; 257; 455; 630; 793; Laws 1959,
chapters 108; 131; 191; 207; 208; 211; 437; Laws 1961,
chapters 186; 290; 295; 300; 343; 376; 399; 434; 435,
section 2; 443; 620; 631; 747; Extra Session Laws
1961, chapters 28; 80; Laws 1963, chapters 36; 208;
221; 271; 443; 453; 454; 464; 619; 636; 643; 670; 715;
Laws 1965, chapters 174; 179; 190; 418; 457; 458; 465;
498; 536; 540; 594; 604; 605; 636; 790; Laws 1967,
chapters 644; 678; 702; 708; 730; 732; 736; 751; 775;
783; 798; 807; 816; 848; Laws 1969, chapters 138; 442;
443; 552; 576; 594; 614; 641; 668; 669; 670; 671; 672;
686; 694; 716; 849; 1087; Laws 1971, chapters 51; 178;
407; 549; 614; 807; 809; 810; Extra Session Laws 1971,
chapter 41; Laws 1973, chapters 286; 287; 346; 359;
432; 433; 587; Laws 1974, chapters 251; 382; Laws
1975, chapters 120; 121; 127; 254, sections 1, 2, 3,
4, 5, 6; 368, section 54; 389; 408; 423; 424; 425;
Laws 1976, chapters 36; 78; 85; 99; 247; Laws 1977,
chapters 83; 164, sections 1, 3; 169; 270; 275; 374,
sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26,
27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39,
40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52,
53, 54, 55, 56, 57, 58, 59, 60; 429, section 62; Laws
1978, chapters 563, sections 12, 13, 14, 16, 17, 18,
19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30; 579;
648; 690, sections 9, 10; 793, section 96; Laws 1979,
chapters 131, section 3; 216, sections 27, 28, 29, 30,
31, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44; Laws
1980, chapters 341, sections 2, 3, 4, 5, 6, 9, 10;
600, sections 11, 12, 13, 14, 15, 16, 17, 18, 22; 607,
article XV, section 23; Laws 1981, chapter 68,
sections 31, 32, 33, 34, 35, 36, 37, 41, 42, 43; Laws
1981, chapter 224, sections 236, 237, 239, 240, 243,
244, 247, 248, 252, 253, 258, 259, 260, 261, 263, 264,
265, 266, 267, 268, 270, 272, 273; Laws 1981, chapter
297, sections 1, 2; Laws 1982, chapters 402; 443; 574,
sections 3, 4, 5, 6, 8; 578, article II, section 1,
subdivision 8, article III, section 18; 610, sections
8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20; Laws
1983, chapters 47; 74; 84, section 1; 291, sections 8,
9, 10, 11, 12, 13, 14, 15, 16, 17; Laws 1984, chapter
574, sections 18, 19, 20, 22, 23, 24, 25, 26, 33; Laws
1985, chapters 259, sections 5, 6; 261, sections 14,
15, 16, 18, 20, 32, 33, 34, 35, 36; Laws 1985, First
Special Session chapter 16, article 2, section 6; Laws
1986, chapters 359, sections 22, 23, 24, 25; 458,
sections 23, 34; Laws 1987, chapter 372, article 2,
sections 7, 8, 9, 10, 12; Laws 1988, chapter 709,
articles 8, section 5; 9, section 5; Laws 1989,
chapter 319, article 11, sections 2, 3, 4, 12; Laws
1990, chapter 589, article 1, section 7; Laws 1991,
chapters 96; 269, article 2, sections 12, 13; Laws
1992, chapters 392, section 1; 393, section 1; 422;
431, section 1; 448; 455; 563, sections 3, 4, 5; 586,
section 1; Laws 1993, chapters 72; 110; 112, section
2; 126; 202, article 1; Laws 1994, chapters 409; 410;
474; 490; 541, section 3; Laws 1995, chapter 262,
article 10, section 4; Laws 1996, chapter 448, article
2, section 1; Laws 1997, chapter 233, article 1,
section 58; Laws 1997, chapter 241, article 2,
sections 2, 3, 4, 5, 6, 9, 10, 11, 13, 14, 15, 20;
Laws 1999, chapter 222, article 3, section 6; Laws
2000, chapter 461, article 10, section 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
LOCAL POLICE AND PAID
FIRE RELIEF ASSOCIATION
GOVERNING LAW CLARIFICATION
Section 1. Minnesota Statutes 2000, section 69.77, is
amended to read:
69.77 [POLICE AND FIREFIGHTERS' RELIEF ASSOCIATION
GUIDELINES ACT.]
Subdivision 1. [AUTHORIZED CONDITIONED EMPLOYER SUPPORT
FOR A RELIEF ASSOCIATION.] (a) Notwithstanding any law to the
contrary, only if the municipality and the relief association
comply with the provisions of this section, a municipality may
contribute public funds, including any applicable police or fire
state aid, or levy property taxes for the support of a police or
firefighters' relief association, enumerated in subdivision 1a,
however organized, which provides retirement coverage or pays a
service pension to a retired police officer or firefighter or a
retirement benefit to a surviving dependent of either an active
or retired police officer or firefighter, for the operation and
maintenance of the relief association only if the municipality
and the relief association comply with the provisions of this
section.
(b) The commissioner shall not include in the apportionment
of police or fire state aid to the county auditor pursuant to
under section 69.021, subdivision 6, any municipality in which
there exists a local police or salaried firefighters' relief
association as enumerated in subdivision 1a which does not
comply with the provisions of this section or the provisions of
any applicable special law relating to the funding or financing
of the association and that municipality shall may not qualify
initially to receive, or be entitled subsequently to retain,
state aid pursuant to under sections 69.011 to 69.051 until the
reason for the disqualification is remedied, whereupon the
municipality, if otherwise qualified, shall be is entitled to
again receive state aid for the year occurring immediately
subsequent to the year in which the disqualification is remedied.
(c) The state auditor and the commissioner shall determine
if a municipality with a local police or salaried firefighters'
relief association fails to comply with the provisions of this
section or the funding or financing provisions of any applicable
special law.
Subd. 1a. [COVERED RETIREMENT PLANS.] The provisions of
this section shall apply to the following local retirement funds
plans:
(1) any police pension fund or relief association which is
established pursuant to chapter 423 the Bloomington firefighters
relief association;
(2) any salaried firefighters' pension fund or relief
association which is established pursuant to chapter 424 the
Fairmont police relief association;
(3) any pension fund or relief association which is
established pursuant to this chapter which has five or more
members who receive compensation for services rendered in the
employment covered by the pension fund or relief association and
which provides for retirement coverage or a service pension
based on the compensation paid to members for that service the
Minneapolis firefighters relief association;
(4) any pension fund or relief association which is
established and operates in whole or in part pursuant to special
legislation and which provides for retirement coverage or a
service pension based on the compensation paid to members for
service as police officers or firefighters or which provides for
retirement coverage or a service pension to volunteer
firefighters based on the compensation paid to or the service
pension provided by a pension fund or relief association located
in the same municipality for police officers employed by the
municipality but not covered by clause (1), (2) or (3) the
Minneapolis police relief association; and
(5) any governmental subdivision retirement fund
established pursuant to any law providing for retirement
coverage to police officers or salaried firefighters or a
retirement benefit to their dependents and not otherwise
described in this subdivision the Virginia fire department
relief association.
Subd. 2. [INAPPLICABLE PENALTY.] The penalty provided for
in subdivision 1 shall does not apply to a relief association
enumerated in subdivision 1a if the requirements of subdivisions
2a 3 to 2h 10 are met.
Subd. 2a 3. [MINIMUM MEMBER CONTRIBUTION.] Each active
member of the relief association shall must pay into the special
fund of the association during a year of covered service, a
contribution for retirement coverage, including survivorship
benefits, of not less than eight percent of the maximum rate of
salary upon which retirement coverage is credited and service
pension and retirement benefit amounts are determined. The
member contributions shall must be made by payroll deduction
from the salary of the member by the municipality, and
shall must be transmitted by the municipality to the relief
association as soon as practical. The relief association shall
deposit the member contribution to the credit of the special
fund of the relief association. The member contribution
requirement specified in this subdivision shall does not apply
to any members who are volunteer firefighters.
Subd. 2b 4. [RELIEF ASSOCIATION FINANCIAL REQUIREMENTS;
MINIMUM MUNICIPAL OBLIGATION.] (a) The officers of the relief
association shall determine the financial requirements of the
relief association and minimum obligation of the municipality
for the following calendar year in accordance with the
requirements of this subdivision. The financial requirements of
the relief association and the minimum obligation of the
municipality shall must be determined on or before the
submission date established by the municipality pursuant to
under subdivision 2c 5.
(b) The financial requirements of the relief association
for the following calendar year shall must be based on the most
recent actuarial valuation or survey of the special fund of the
association if more than one fund is maintained by the
association, or of the association, if only one fund is
maintained, prepared in accordance with sections 356.215,
subdivisions 4 to 4k and 356.216, as required pursuant to under
subdivision 2h 10. If an actuarial estimate is prepared by the
actuary of the relief association as part of obtaining a
modification of the benefit plan of the relief association and
the modification is implemented, the actuarial estimate shall
must be used in calculating the subsequent financial
requirements of the relief association.
(c) If the relief association has an unfunded actuarial
accrued liability as reported in the most recent actuarial
valuation or survey, the total of the amounts
calculated pursuant to under clauses (a), (b), and (c)
shall (1), (2), and (3) constitute the financial requirements of
the relief association for the following year. If the relief
association does not have an unfunded actuarial accrued
liability as reported in the most recent actuarial valuation or
survey, the amount calculated pursuant to under clauses (a) and
(b) shall (1) and (2) constitute the financial requirements of
the relief association for the following year. The financial
requirement elements are:
(a) (1) the normal level cost requirement for the following
year, expressed as a dollar amount, which shall must be
determined by applying the normal level cost of the relief
association as reported in the actuarial valuation or survey and
expressed as a percentage of covered payroll to the estimated
covered payroll of the active membership of the relief
association, including any projected increase change in the
active membership, for the following year.;
(b) (2) for the Bloomington fire department relief
association, the Fairmont police relief association, and the
Virginia fire department relief association, to the dollar
amount of normal cost thus determined shall under clause (1)
must be added an amount equal to the dollar amount of the
administrative expenses of the special fund of the association
if more than one fund is maintained by the association, or of
the association if only one fund is maintained, for the most
recent year, multiplied by the factor of 1.035. For a relief
association in a municipality, The administrative expenses are
those authorized under section 69.80. No amount of
administrative expenses under this clause shall are to be
included in the financial requirements of a the Minneapolis
firefighters relief association in a city of the first class
with a population of more than 300,000. or the Minneapolis
police relief association; and
(c) (3) to the dollar amount of normal cost and expenses
determined under clauses (a) and (b) shall (1) and (2) must be
added an amount equal to the level annual dollar amount which is
sufficient to amortize the unfunded actuarial accrued liability
by December 31, 2010, as determined from the actuarial valuation
or survey of the fund, using an interest assumption set at the
applicable rate specified in section 356.215, subdivision 4d.
The amortization date specified in this clause shall apply
applies to all local police or salaried firefighters' relief
associations and shall supersede that date supersedes any
amortization date specified in any applicable special law.
(d) The minimum obligation of the municipality shall be is
an amount equal to the financial requirements of the relief
association reduced by the estimated amount of member
contributions from covered salary anticipated for the following
calendar year and the estimated amounts anticipated for the
following calendar year from the applicable state aid program
established pursuant to under sections 69.011 to 69.051
receivable by the relief association after any allocation
made pursuant to under section 69.031, subdivision 5, clause
(2), subclause (c) paragraph (b), clause (2), or 423A.01,
subdivision 2, clause (6), from the local police and salaried
firefighters' relief association amortization aid program
established pursuant to under section 423A.02 and, subdivision
1, from the supplementary amortization state-aid program
established under Laws 1984, chapter 564, section 48, and Laws
1985, chapter 261, section 17 section 423A.02, subdivision 1a,
and from the additional amortization state aid under section
423A.02, subdivision 1b.
Subd. 2c 5. [DETERMINATION SUBMISSION.] The officers of
the relief association shall submit the determination of the
financial requirements of the relief association and of the
minimum obligation of the municipality to the governing body on
or before the date established by the municipality, which shall
may not be earlier than August 1 and shall may not be later than
September 1 of each year. The governing body of the
municipality shall must ascertain whether or not the
determinations were prepared in accordance with law.
Subd. 2d 6. [MUNICIPAL PAYMENT.] (a) The municipality
shall provide for and shall pay, each year, at least the amount
of the minimum obligation of the municipality to the relief
association.
(b) If there is any deficiency in the municipal payment to
meet the minimum obligation of the municipality as of the end of
any calendar year, the amount of the deficiency shall must be
added to the minimum obligation of the municipality for the
following year calculated pursuant to under subdivision 2b 4 and
shall must include interest at the compound rate of six percent
per annum compounded from the date that the municipality was
required to make payment pursuant to under this subdivision
until the date that the municipality actually makes the required
payment.
Subd. 2e 7. [BUDGET INCLUSION.] (a) The municipality shall
provide in the annual municipal budget for at least the minimum
obligation of the municipality calculated pursuant to under
subdivision 2b 4.
(b) The municipality may levy taxes for the payment of the
minimum obligation of the municipality without any limitation as
to rate or amount and irrespective of limitations imposed by
other provisions of law upon the rate or amount of taxation when
the balance of the special fund or any fund of the relief
association has attained a specified minimum asset level. In
addition, any taxes levied pursuant to under this section shall
may not cause the amount or rate of other taxes levied in that
year or to be levied in a subsequent year by the municipality
which are subject to a limitation as to rate or amount to be
reduced.
(c) If the municipality does not include the full amount of
the minimum obligation of the municipality in the levy that the
municipality certified to the county auditor in any year, the
officers of the relief association shall certify the amount of
any deficiency to the county auditor. Upon verifying the
existence of any deficiency in the levy certified by the
municipality, the county auditor shall spread a levy over the
taxable property of the municipality in the amount of the
deficiency certified to by the officers of the relief
association.
Subd. 2f 8. [ACCELERATED AMORTIZATION.] Any sums of money
paid by the municipality to the relief association in excess of
the minimum obligation of the municipality in any year shall
must be used to amortize any unfunded actuarial accrued
liabilities of the relief association.
Subd. 2g 9. [LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATION
INVESTMENT AUTHORITY.] (a) The funds of the association must be
invested in securities that are authorized investments under
section 356A.06, subdivision 6 or 7, whichever
applies. Notwithstanding the foregoing, Up to 75 percent of the
market value of the assets of the fund may be invested in
open-end investment companies registered under the federal
Investment Company Act of 1940, if the portfolio investments of
the investment companies comply with the type of securities
authorized for investment under section 356A.06, subdivision 7.
Securities held by the association before June 2, 1989, that do
not meet the requirements of this subdivision may be retained
after that date if they were proper investments for the
association on that date.
(b) The governing board of the association may select and
appoint investment agencies to act for and in its behalf or may
certify special fund assets for investment by the state board of
investment under section 11A.17. The governing board of the
association may certify general fund assets of the relief
association for investment by the state board of investment in
fixed income pools or in a separately managed account at the
discretion of the state board of investment as provided in
section 11A.14. The governing board of the association may
select and appoint a qualified private firm to measure
management performance and return on investment, and the firm
shall use the formula or formulas developed by the state board
under section 11A.04, clause (11).
Subd. 2h 10. [ACTUARIAL VALUATION REQUIRED.] The
association shall obtain an actuarial valuation showing the
condition of the special fund of the relief association pursuant
to under sections 356.215 and 356.216 and any applicable
standards for actuarial work established by the legislative
commission on pensions and retirement. The actuarial valuation
must be made as of December 31 of every year. A copy of the
actuarial valuation shall must be filed with the director of the
legislative reference library, the governing body of the
municipality in which the association is organized, the
executive director of the legislative commission on pensions and
retirement, and the state auditor, not later than July 1 of the
following year.
Subd. 2i 11. [MUNICIPAL APPROVAL OF BENEFIT CHANGES
REQUIRED.] Any amendment to the bylaws or articles of
incorporation of a relief association which increases or
otherwise affects the retirement coverage provided by or the
service pensions or retirement benefits payable from any police
or firefighters' relief association enumerated in subdivision 1a
shall is not be effective until it is ratified by the
municipality in which the relief association is located. The
officers of the relief association shall not seek municipal
ratification prior to before obtaining either an updated
actuarial valuation including the proposed amendment or an
estimate of the expected actuarial impact of the proposed
amendment prepared by the actuary of the relief association and
submitting that actuarial valuation or estimate to the clerk of
the municipality.
Subd. 3 12. [CITATION.] This section may be cited as the
"Police and Firefighters' Relief Associations Guidelines Act of
1969."
Sec. 2. Minnesota Statutes 2000, section 69.80, is amended
to read:
69.80 [AUTHORIZED ADMINISTRATIVE EXPENSES.]
(a) Notwithstanding any provision of law to the contrary,
the payment of the following necessary, reasonable and direct
expenses of maintaining, protecting and administering the
special fund, when provided for in the bylaws of the association
and approved by the board of trustees, shall constitute
constitutes authorized administrative expenses of a police,
salaried firefighters', or volunteer firefighters' relief
association organized under any law of this state:
(a) (1) office expense, including, but not limited to,
rent, utilities, equipment, supplies, postage, periodical
subscriptions, furniture, fixtures, and salaries of
administrative personnel;
(b) (2) salaries of the president, secretary, and treasurer
of the association, or their designees, and any other official
of the relief association to whom a salary is payable under
bylaws or articles of incorporation in effect on January 1,
1986, and their itemized expenses incurred as a result of
fulfilling their responsibilities as administrators of the
special fund;
(c) (3) tuition, registration fees, organizational dues,
and other authorized expenses of the officers or members of the
board of trustees incurred in attending educational conferences,
seminars, or classes relating to the administration of the
relief association;
(d) (4) audit, actuarial, medical, legal, and investment
and performance evaluation expenses;
(e) (5) reimbursement to the officers and members of the
board of trustees, or their designees, for reasonable and
necessary expenses actually paid and incurred in the performance
of their duties as officers or members of the board; and
(f) (6) premiums on fiduciary liability insurance and
official bonds for the officers, members of the board of
trustees, and employees of the relief association.
(b) Any other expenses of the relief association shall must
be paid from the general fund of the association, if one
exists. If a relief association has only one fund, that
fund shall be deemed to be is the special fund for purposes of
this section. If a relief association has a special fund and a
general fund, and any expense of the relief association that is
directly related to the purposes for which both funds were
established, the payment of that expense shall must be
apportioned between the two funds on the basis of the benefits
derived by each fund.
Sec. 3. Minnesota Statutes 2000, section 353A.08,
subdivision 6a, is amended to read:
Subd. 6a. [MILITARY SERVICE CONTRIBUTION AND REFUND.] A
person who was an active member of a local police or
firefighters relief association upon its consolidation with the
public employees retirement association, and who was otherwise
eligible for automatic service credit for military service under
sections Minnesota Statutes 2000, section 423.57 and 424.23, and
who has not elected the type of benefit coverage provided by the
public employees police and fire fund at the time of
consolidation, must make employee contributions under section
353.01, subdivision 16, paragraph (h), to receive allowable
service credit from the association for a military service leave
after the effective date of the consolidation. A person who
later elects, under subdivision 3, to retain benefit coverage
under the bylaws of the local relief association is eligible for
a refund from the association at the time of retirement. The
association shall refund the employee contributions plus
interest at the rate of six percent, compounded quarterly, from
the date on which contributions were made until the first day of
the month in which the refund is paid. The employer shall
receive a refund of the employer contributions. The association
shall not pay a refund to a person who later elects, under
subdivision 3, the type of benefit coverage provided by the
public employees police and fire fund or to the person's
employer.
Sec. 4. Minnesota Statutes 2000, section 423A.17, is
amended to read:
423A.17 [CONTINUATION OF SURVIVING SPOUSE BENEFITS UPON
REMARRIAGE.]
(a) Notwithstanding a provision of section 69.48; 423.387,
subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1; or
424.24, subdivision 1, or other law, article of incorporation,
or bylaw governing a local police or salaried firefighters
relief association to the contrary, the governing body of a
municipality may mandate the applicable local police or salaried
firefighters relief association to provide that a surviving
spouse benefit is payable for the life of the surviving spouse
and remains payable even in the event of the remarriage of the
surviving spouse.
(b) If the surviving spouse benefit change described in
paragraph (a) is made, the change applies to a surviving spouse
benefit payable on the effective date of the change and to the
potential surviving spouses of all active, deferred, or retired
members of the relief association who have that status on the
effective date of the change.
(c) In addition, if the surviving spouse benefit change
described in paragraph (a) is made a person who formerly was
receiving surviving spouse benefits from the relief association
and who had those benefits discontinued by virtue of the
remarriage is entitled, upon application, to a resumption of the
surviving spouse benefit, beginning with the last day of the
month following receipt of the application by the secretary of
the relief association. Nothing in this section authorizes the
payment of a benefit amount to an estate.
(d) The change must be made by a municipal resolution
adopted by a majority vote of the municipality. The resolution
must be filed by the secretary of the relief association with
the executive director of the legislative commission on pensions
and retirement, the state auditor, and the secretary of state.
Sec. 5. Minnesota Statutes 2000, section 423A.171, is
amended to read:
423A.171 [BYLAW AMENDMENTS.]
(a) Notwithstanding a provision of section 69.48; 423.387,
subdivision 1; 423.58, subdivision 1; 423.810, subdivision 1;
423B.10; or 424.24, subdivision 1, or other law governing a
local police or salaried firefighters' relief association to the
contrary, the board of trustees of a local relief association
governed by section 69.77 or its successor board under chapter
353A or 353B, with municipal approval as provided in section
69.77, subdivision 2i 11, may amend the bylaws of the relief
association to provide that a surviving spouse benefit is
payable to a surviving spouse who married a deferred or retired
member after the member's retirement, provided the marriage
occurred at least five years before the death of the member.
(b) If the surviving spouse benefit change described in
paragraph (a) is made, the change applies to a surviving spouse
benefit payable on the effective date of the change and to the
potential surviving spouses of all deferred or retired members
of the relief association who have that status on the effective
date of the change.
(c) The bylaw amendment is not effective until a certified
copy of the amendment and the municipal approval has been filed
by the municipal clerk with the executive director of the
legislative commission on pensions and retirement, the state
auditor, and the secretary of state.
(d) Notwithstanding the provisions of section 353B.11, a
surviving spouse benefit change made under this section for a
relief association that has consolidated with the public
employees retirement association is effective upon approval by
the public employees retirement association and the municipality
pursuant to under paragraph (c).
Sec. 6. Minnesota Statutes 2000, section 424A.09, is
amended to read:
424A.09 [APPLICATION TO CERTAIN RELIEF ASSOCIATIONS.]
This chapter shall supersede supersedes any special law
applicable to any municipal volunteer firefighters' relief
association or independent nonprofit firefighting corporation
specifically authorizing the relief association or nonprofit
firefighting corporation to exceed the service pension
limitations contained in Minnesota Statutes 1978, sections 69.06
and 69.691. Any relief association which amended its bylaws to
provide for a full pro rata service pension amount at the
specified retirement age with 15 years service credit or 75
percent of the pro rata service pension amount at the specified
retirement age with ten years of service pursuant to under
Minnesota Statutes 1978, section 69.06, may continue to provide
the specified service pension amounts at the applicable years of
credited service to any member who has credit for at least ten
or 15 years, whichever is the applicable minimum service period
specified in the bylaws governing the relief association, on or
before December 31, 1979 notwithstanding section 424A.02.
Sec. 7. [APPLICATION; BLOOMINGTON FIREFIGHTERS RELIEF
ASSOCIATION.]
To the extent that Minnesota Statutes 2000, chapter 424,
applied to the Bloomington firefighters relief association on
the day before the effective date of section 5, Minnesota
Statutes 2000, chapter 424, continues to apply to the
Bloomington firefighters relief association after that date.
Sec. 8. [REVISOR INSTRUCTIONS.]
(a) In the next and subsequent editions of Minnesota
Statutes, the revisor of statutes shall not print Minnesota
Statutes, sections 423.41 to 423.62, but shall denote those
sections as "[LOCAL, CITY OF FAIRMONT, POLICE PENSIONS.]."
(b) In the next and subsequent editions of Minnesota
Statutes, the revisor of statutes shall, in each section
indicated in column A, replace the cross-reference specified in
column B with the cross-reference set forth in column C:
Column A Column B Column C
69.021, subd. 10 69.77, subd. 2a 69.77, subd. 3
69.021, subd. 10 69.77, subd. 2b 69.77, subd. 4
69.021, subd. 10 69.77, subd. 2c 69.77, subd. 5
299A.465, subd. 5 424.03 Minnesota Statutes,
2000, 424.03
353A.07, subd. 6 69.77, subd. 2a 69.77, subd. 3
353A.09, subd. 4 69.77, subd. 2a 69.77, subd. 3
356.216 69.77, subd. 2b 69.77, subd. 4
356.219, subd. 2 69.77, subd. 2g 69.77, subd. 9
423.01, subd. 2 69.77, subd. 2b 69.77, subd. 4
423A.18 69.77, subd. 2i 69.77, subd. 11
423A.19, subd. 4 69.77, subd. 2i 69.77, subd. 11
423B.06, subd. 1 69.77, subd. 2a 69.77, subd. 3
423B.06, subd. 1 69.77, subd. 2b 69.77, subd. 4
423B.06, subd. 1 69.77, subd. 2c 69.77, subd. 5
423B.06, subd. 1 69.77, subd. 2d 69.77, subd. 6
423B.06, subd. 1 69.77, subd. 2e 69.77, subd. 7
423B.06, subd. 1 69.77, subd. 2f 69.77, subd. 8
423B.21, subd. 1 69.77, subd. 2b 69.77, subd. 4
Sec. 9. [REPEALER; OBSOLETE POLICE AND FIRE PENSION LAWS.]
Subdivision 1. [FIRST CLASS CITY FIRE;
REPEALER.] Minnesota Statutes 2000, sections 69.25; 69.26;
69.27; 69.28; 69.29; 69.30; 69.32; 69.361; 69.37; 69.38; 69.39;
69.40; 69.41; 69.42; 69.43; 69.44; 69.45; 69.46; 69.47; 69.48;
69.49; 69.50; 69.51; 69.52; 69.53; and 69.62, are repealed.
Subd. 2. [THIRD CLASS CITY POLICE; REPEALER.] Minnesota
Statutes 2000, sections 423.37; 423.371; 423.372; 423.373;
423.374; 423.375; 423.377; 423.378; 423.379; 423.38; 423.381;
423.382; 423.383; 423.384; 423.385; 423.386; 423.387; 423.388;
423.389; 423.39; 423.391; and 423.392, are repealed.
Subd. 3. [SECOND CLASS CITY POLICE; REPEALER.] Minnesota
Statutes 2000, sections 423.801; 423.802; 423.803; 423.804;
423.805; 423.806; 423.808; 423.809; 423.810; 423.812; 423.813;
423.814; and 423.90, are repealed.
Subd. 4. [SECOND CLASS CITY FIRE; REPEALER.] Minnesota
Statutes 2000, sections 424.01; 424.02; 424.03; 424.04; 424.05;
424.06; 424.08; 424.14; 424.15; 424.16; 424.165; 424.17; 424.18;
424.19; 424.20; 424.21; 424.22; 424.23; 424.24; 424.25; 424.27;
424.28; and 424.29, are repealed.
Subd. 5. [ALBERT LEA FIRE; REPEALER.] Laws 1943, chapters
170 and 397; Laws 1947, chapter 274; Laws 1949, chapters 87 and
281; Laws 1951, chapters 233, 420, and 435; Laws 1953, chapters
44 and 406; Laws 1957, chapter 127; Laws 1959, chapter 207; Laws
1963, chapter 643; Laws 1984, chapter 574, section 23; Laws
1985, chapter 261, section 36; and Laws 1993, chapter 72, are
repealed.
Subd. 6. [ALBERT LEA POLICE; REPEALER.] Laws 1965, chapter
174; Laws 1976, chapter 247; and Laws 1985, chapter 261, section
36, are repealed.
Subd. 7. [ANOKA POLICE; REPEALER.] Laws 1965, chapter 174;
Laws 1973, chapter 587; Laws 1978, chapter 563, section 28; and
Laws 1981, chapter 224, sections 263 and 264, are repealed.
Subd. 8. [AUSTIN FIRE; REPEALER.] Laws 1943, chapter 170;
Laws 1949, chapter 87; Laws 1951, chapters 45 and 435; Laws
1957, chapter 164; Laws 1963, chapter 36; Laws 1965, chapter
418; Laws 1976, chapter 36; Laws 1978, chapter 579; Laws 1980,
chapter 341, sections 9 and 10; Laws 1981, chapter 224, sections
268 and 270; Laws 1992, chapter 455; and Laws 1994, chapter 490,
are repealed.
Subd. 9. [AUSTIN POLICE; REPEALER.] Laws 1943, chapter
432; Laws 1976, chapter 36; Laws 1980, chapter 341, sections 9
and 10; and Laws 1981, chapter 224, sections 268 and 270, are
repealed.
Subd. 10. [BLOOMINGTON POLICE; REPEALER.] Laws 1965,
chapter 498; Laws 1975, chapter 121; Laws 1978, chapter 563,
section 17; Laws 1980, chapter 341, section 6; Laws 1981,
chapter 224, section 240; and Laws 1993, chapter 202, article 1,
are repealed.
Subd. 11. [BRAINERD POLICE; REPEALER.] Laws 1959, chapter
437, is repealed.
Subd. 12. [BROOKLYN CENTER POLICE; REPEALER.] Laws 1967,
chapter 736; and Laws 1978, chapter 563, section 18, are
repealed.
Subd. 13. [BUHL POLICE; REPEALER.] Laws 1957, chapter 630;
Laws 1975, chapter 425; Laws 1976, chapter 247; Laws 1981,
chapter 68, section 43; Laws 1982, chapter 578, article II,
section 1, subdivision 8; Laws 1984, chapter 574, sections 18
and 20; Laws 1985, chapter 261, section 18; and Laws 1986,
chapter 458, section 23, are repealed.
Subd. 14. [CHISHOLM FIRE; REPEALER.] Laws 1935, chapter
208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124;
Laws 1947, chapter 329; Laws 1951, chapter 144; Laws 1953,
chapter 391; Laws 1955, chapters 293 and 827; Laws 1961, chapter
631; Laws 1971, chapter 809; Laws 1973, chapter 433; Laws 1976,
chapter 78; Laws 1978, chapter 648; Laws 1979, chapter 131,
section 3; Laws 1981, chapter 68, sections 36 and 37; and Laws
1991, chapter 269, article 2, section 12, are repealed.
Subd. 15. [CHISHOLM POLICE; REPEALER.] Laws 1945, chapter
74; Laws 1949, chapter 164; Laws 1953, chapter 235; Laws 1959,
chapter 211; Laws 1961, chapter 290; Laws 1971, chapter 810;
Laws 1973, chapter 433; Laws 1976, chapter 78; Laws 1978,
chapters 563, section 27, and 648; Laws 1979, chapter 131,
section 3; Laws 1981, chapters 68, sections 31, 32, and 33; and
224, section 261; and Laws 1991, chapter 269, article 2, section
12, are repealed.
Subd. 16. [CLOQUET FIRE; REPEALER.] Laws 1941, chapter
196; Laws 1953, chapter 253; Laws 1955, chapter 42; Laws 1961,
chapter 295; Laws 1965, chapter 594; Laws 1967, chapter 783; and
Laws 1969, chapter 716, are repealed.
Subd. 17. [COLUMBIA HEIGHTS FIRE; REPEALER.] Laws 1965,
chapter 605; Laws 1975, chapter 424; Laws 1977, chapter 374,
sections 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51,
52, 53, 54, 55, 56, 57, 58, 59, and 60; Laws 1978, chapter 563,
sections 29 and 30; and Laws 1981, chapter 224, section 267, are
repealed.
Subd. 18. [COLUMBIA HEIGHTS POLICE; REPEALER.] Laws 1977,
chapter 374, sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29,
30, 31, 32, 33, 34, 35, 36, and 37; and Laws 1993, chapter 126,
are repealed.
Subd. 19. [CROOKSTON FIRE; REPEALER.] Laws 1949, chapter
378; Laws 1957, chapter 144; Laws 1963, chapter 636; Laws 1971,
chapter 51; Laws 1978, chapter 563, sections 24, 25, and 26;
Laws 1981, chapter 224, sections 252 and 253; and Laws 1983,
chapter 291, sections 9, 10, 11, 12, 13, 14, 15, 16, and 17, are
repealed.
Subd. 20. [CROOKSTON POLICE; REPEALER.] Laws 1976, chapter
85; Laws 1977, chapter 275; Laws 1983, chapter 84, section 1;
and Laws 1984, chapter 574, section 26, are repealed.
Subd. 21. [CRYSTAL POLICE; REPEALER.] Laws 1963, chapter
619; Laws 1969, chapter 1087; and Laws 1980, chapter 607,
article XV, section 23, are repealed.
Subd. 22. [DULUTH FIRE; REPEALER.] Laws 1917, chapter 196;
Laws 1919, chapter 515; Laws 1955, chapter 188; Laws 1961,
chapter 186; Laws 1963, chapter 208; Laws 1965, chapter 179;
Laws 1967, chapter 732; Laws 1975, chapter 127; Laws 1976,
chapter 78, section 4; Laws 1977, chapter 164, section 3; Laws
1992, chapter 448, section 1; and Laws 1994, chapter 474, are
repealed.
Subd. 23. [DULUTH POLICE; REPEALER.] Laws 1915, chapter
68; Laws 1921, chapter 118; Laws 1923, chapter 54; Laws 1925,
chapter 197; Laws 1943, chapter 267; Laws 1949, chapter 153;
Laws 1953, chapter 91; Laws 1955, chapter 187; Laws 1959,
chapter 191; Laws 1975, chapter 408; Laws 1976, chapter 99; Laws
1980, chapter 600, section 11; and Laws 1992, chapter 448, are
repealed.
Subd. 24. [EVELETH FIRE; REPEALER.] Laws 1935, chapter
208; Laws 1937, chapters 132 and 253; Laws 1939, chapter 124;
Laws 1941, chapters 74 and 182; Laws 1947, chapter 329; Laws
1951, chapter 144; Laws 1953, chapter 391; Laws 1955, chapter
293; Laws 1961, chapter 620; Laws 1963, chapter 670; and Laws
1969, chapter 552, are repealed.
Subd. 25. [EVELETH POLICE; REPEALER.] Laws 1965, chapter
636; and Laws 1969, chapter 670, are repealed.
Subd. 26. [FARIBAULT FIRE; REPEALER.] Laws 1947, chapter
43; Laws 1949, chapter 154; Laws 1951, chapter 43; Laws 1957,
chapter 36; Laws 1961, chapter 443; Laws 1967, chapter 807; Laws
1969, chapter 614; Laws 1975, chapter 389; Laws 1984, chapter
574, section 22; Laws 1985, chapter 259, sections 5 and 6; Laws
1985, First Special Session chapter 16, article 2, section 6;
and Laws 1993, chapter 112, section 2, are repealed.
Subd. 27. [FARIBAULT POLICE; REPEALER.] Laws 1985, chapter
259, sections 5 and 6; Laws 1985, First Special Session chapter
16, article 2, section 6, are repealed.
Subd. 28. [FRIDLEY FIRE; REPEALER.] Laws 1969, chapter
594, is repealed.
Subd. 29. [FRIDLEY POLICE; REPEALER.] Laws 1977, chapter
83, is repealed.
Subd. 30. [HIBBING FIRE; REPEALER.] Laws 1935, chapter
192; Laws 1943, chapter 413; Laws 1945, chapter 182; Laws 1947,
chapter 101; Laws 1951, chapter 48; Laws 1955, chapter 294; Laws
1959, chapter 208; Laws 1967, chapter 816; Laws 1969, chapter
686; Laws 1971, chapter 614; Laws 1975, chapter 254, sections 5
and 6; Laws 1977, chapter 169; Laws 1981, chapter 224, section
260; Laws 1982, chapter 443; Laws 1987, chapter 372, article 2,
sections 7, 8, and 9; and Laws 1991, chapter 269, article 2,
sections 12 and 13, are repealed.
Subd. 31. [HIBBING POLICE; REPEALER.] Laws 1931, chapter
48; Laws 1933, chapter 122; Laws 1939, chapter 304; Laws 1945,
chapter 300; Laws 1947, chapter 40; Laws 1949, chapter 191; Laws
1951, chapter 243; Laws 1953, chapter 401; Laws 1957, chapter
793; Laws 1965, chapter 536; Laws 1967, chapter 678; Laws 1969,
chapter 672; Laws 1971, chapter 807; Laws 1983, chapter 74; Laws
1987, chapter 372, article 2, section 7; and Laws 1991, chapter
269, article 2, section 12, are repealed.
Subd. 32. [MANKATO FIRE; REPEALER.] Laws 1949, chapter
144; Laws 1953, chapter 37; Laws 1957, chapter 16; Laws 1971,
chapter 407; Extra Session Laws 1971, chapter 41; Laws 1981,
chapter 224, sections 258 and 259; and Laws 1989, chapter 319,
article 11, section 3, are repealed.
Subd. 33. [MANKATO POLICE; REPEALER.] Laws 1971, chapter
407; Extra Session Laws 1971, chapter 41; Laws 1981, chapter
224, sections 258 and 259; Laws 1986, chapter 458, section 34;
and Laws 1987, chapter 372, article 2, section 12, are repealed.
Subd. 34. [MOORHEAD FIRE; REPEALER.] Laws 1951, chapter
499; Laws 1955, chapter 75; Laws 1965, chapter 190; Laws 1969,
chapter 138; Laws 1975, chapter 120; Laws 1978, chapter 563,
sections 12 and 13; Laws 1979, chapter 216, sections 34, 35, 36,
37, 38, 39, 40, 41, 42, 43, and 44; Laws 1981, chapter 224,
section 236; and Laws 1982, chapter 578, article III, section
18, are repealed.
Subd. 35. [MOORHEAD POLICE; REPEALER.] Laws 1945, chapter
277; Laws 1967, chapter 775; Laws 1978, chapter 563, section 19;
Laws 1979, chapter 216, sections 27, 28, 29, 30, 31, and 44;
Laws 1980, chapter 600, section 16; Laws 1981, chapter 224,
section 243; and Laws 1982, chapter 578, article III, section
18, are repealed.
Subd. 36. [NEW ULM POLICE; REPEALER.] Laws 1965, chapter
174; Laws 1974, chapter 251; Laws 1981, chapter 224, sections
265 and 266; and Laws 1985, chapter 261, section 20, are
repealed.
Subd. 37. [RED WING FIRE; REPEALER.] Laws 1953, chapter
348; Laws 1955, chapter 49; Laws 1957, chapter 10; Laws 1961,
chapter 300; Laws 1965, chapter 604; Laws 1973, chapter 359;
Laws 1975, chapter 254, sections 1, 2, 3, and 4; and Laws 1984,
chapter 574, section 24, are repealed.
Subd. 38. [RED WING POLICE; REPEALER.] Laws 1965, chapter
174; Laws 1973, chapter 346; Laws 1983, chapter 291, section 8;
and Laws 1994, chapter 410, are repealed.
Subd. 39. [RICHFIELD FIRE; REPEALER.] Laws 1955, chapter
348; Extra Session Laws 1961, chapter 28; Laws 1963, chapter
464; Laws 1967, chapter 798; Laws 1978, chapter 563, sections 20
and 21; Laws 1980, chapter 607, article XV, section 23; Laws
1981, chapter 224, section 244; and Laws 1997, chapter 241,
article 2, sections 2, 3, 4, 5, 6, 9, 10, 13, 14, and 20, are
repealed.
Subd. 40. [RICHFIELD POLICE; REPEALER.] Laws 1957, chapter
455; Laws 1965, chapter 458; Laws 1978, chapter 563, section 16;
Laws 1980, chapter 607, article XV, section 23; Laws 1981,
chapter 224, section 239; and Laws 1991, chapter 96, are
repealed.
Subd. 41. [ROCHESTER FIRE; REPEALER.] Laws 1959, chapter
131; Laws 1969, chapter 694; Laws 1978, chapter 563, section 14;
Laws 1980, chapter 600, sections 18 and 22; and Laws 1981,
chapter 224, section 237, are repealed.
Subd. 42. [ROCHESTER POLICE; REPEALER.] Laws 1969, chapter
641; Laws 1975, chapter 368, section 54; Laws 1978, chapters
563, section 23; and 793, section 96; Laws 1980, chapter 600,
sections 18 and 22; and Laws 1981, chapter 224, section 248, are
repealed.
Subd. 43. [ST. CLOUD FIRE; REPEALER.] Laws 1961, chapter
343; Laws 1963, chapter 453; Laws 1967, chapter 702; Laws 1974,
chapter 382; Laws 1977, chapter 270; Laws 1978, chapter 690,
sections 9 and 10; and Laws 1982, chapter 402, are repealed.
Subd. 44. [ST. CLOUD POLICE; REPEALER.] Laws 1973, chapter
432; Laws 1980, chapter 341, sections 2, 3, 4, and 5; Laws 1984,
chapter 574, section 25; and Laws 1999, chapter 222, article 3,
section 6, are repealed.
Subd. 45. [ST. LOUIS PARK FIRE; REPEALER.] Laws 1967,
chapter 730; Laws 1969, chapter 576; Laws 1978, chapter 563,
section 22; Laws 1981, chapter 224, section 247; and Laws 1985,
chapter 261, sections 32, 33, 34, and 35, are repealed.
Subd. 46. [ST. LOUIS PARK POLICE; REPEALER.] Laws 1963,
chapter 454; Laws 1980, chapter 600, section 17; Laws 1984,
chapter 574, section 19; and Laws 1990, chapter 589, article 1,
section 7, are repealed.
Subd. 47. [ST. PAUL FIRE; REPEALER.] Laws 1917, chapter
196; Laws 1919, chapter 515; Laws 1955, chapter 375; Laws 1957,
chapters 256 and 257; Laws 1961, chapter 376; Laws 1963, chapter
221; Laws 1965, chapter 790; Laws 1967, chapters 644 and 708;
Laws 1969, chapters 443, 669, and 671; Laws 1973, chapter 287;
Laws 1975, chapter 423; Laws 1977, chapter 164, section 1; Laws
1981, chapter 68, section 35; Laws 1989, chapter 319, article
11, section 12; Laws 1992, chapters 422 and 563, sections 3, 4,
and 5; Laws 1993, chapter 110; Laws 1996, chapter 448, article
2, section 1; and Laws 1997, chapter 241, article 2, sections 11
and 15, are repealed.
Subd. 48. [ST. PAUL POLICE; REPEALER.] Special Laws 1889,
chapter 425; Special Laws 1891, chapter 11; Laws 1897, chapters
389 and 390; Laws 1919, chapter 68; Laws 1921, chapter 118; Laws
1923, chapter 54; Laws 1925, chapter 197; Laws 1955, chapter
151; Laws 1961, chapters 434 and 435, section 2; Laws 1963,
chapter 271; Laws 1965, chapter 465; Laws 1969, chapters 442,
668, and 671; Laws 1971, chapter 549; Laws 1973, chapter 286;
Laws 1980, chapter 600, sections 12, 13, 14, and 15; Laws 1981,
chapter 68, section 34; Laws 1983, chapter 47; Laws 1988,
chapter 709, article 8, section 5; Laws 1989, chapter 319,
article 11, sections 2 and 12; Laws 1992, chapters 393, section
1; 563, section 5; and 586, section 1; Laws 1994, chapter 409;
Laws 1996, chapter 448, article 2, section 1; and Laws 1997,
chapter 241, article 2, sections 11 and 15, are repealed.
Subd. 49. [SOUTH ST. PAUL FIRE; REPEALER] Laws 1943,
chapter 397; Laws 1947, chapter 274; Laws 1949, chapter 281;
Laws 1951, chapters 233 and 420; Laws 1953, chapters 44 and 406;
Laws 1957, chapter 127; Laws 1961, chapter 747; Laws 1963,
chapter 715; Laws 1965, chapter 457; Laws 1969, chapter 849; and
Laws 1971, chapter 178, are repealed.
Subd. 50. [SOUTH ST. PAUL POLICE; REPEALER.] Laws 1994,
chapter 541, section 3, is repealed.
Subd. 51. [THIEF RIVER FALLS POLICE; REPEALER.] Laws 1981,
chapters 68, sections 41 and 42; 224, sections 272 and 273; Laws
1985, chapter 261, section 14; and Laws 1992, chapter 431,
section 1, are repealed.
Subd. 52. [VIRGINIA POLICE; REPEALER.] Laws 1935, chapters
92 and 259; Laws 1937, chapter 197; Laws 1949, chapter 235; Laws
1965, chapter 174; Laws 1982, chapter 574, sections 3, 4, 5, 6,
and 8; Laws 1985, chapter 261, sections 15 and 16; Laws 1989,
chapter 319, article 11, section 4; and Laws 1992, chapter 392,
section 1, are repealed.
Subd. 53. [WEST ST. PAUL FIRE; REPEALER.] Laws 1961,
chapter 399; Laws 1965, chapter 540; Laws 1982, chapter 610,
sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20;
and Laws 1984, chapter 574, section 33, are repealed.
Subd. 54. [WEST ST. PAUL POLICE; REPEALER] Laws 1965,
chapter 174; Laws 1967, chapter 751; Laws 1981, chapter 297,
sections 1 and 2; Laws 1987, chapter 372, article 2, section 10;
and Laws 1995, chapter 262, article 10, section 4, are repealed.
Subd. 55. [WINONA FIRE; REPEALER.] Extra Session Laws
1961, chapter 80; Laws 1963, chapter 443; and Laws 1967, chapter
848, are repealed.
Subd. 56. [WINONA POLICE; REPEALERS.] Laws 1959, chapter
108; Extra Session Laws 1961, chapter 80; Laws 1977, chapter
429, section 62; Laws 1986, chapter 359, sections 22, 23, 24,
and 25; and Laws 1988, chapter 709, article 9, section 5, are
repealed.
Subd. 57. [OTHER REPEALER.] Minnesota Statutes 2000,
sections 69.78; 297I.10, subdivision 2; and 423A.03, are
repealed.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective on July 1, 2002.
ARTICLE 2
RETIREMENT PLAN ALLOWABLE SERVICE
CREDIT FOR STRIKE PERIODS
Section 1. Minnesota Statutes 2001 Supplement, section
352.01, subdivision 11, is amended to read:
Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means:
(1) Service by an employee for which on or before July 1,
1957, the employee was entitled to allowable service credit on
the records of the system by reason of employee contributions in
the form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota
Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
(2) Service by an employee for which on or before July 1,
1961, the employee chose to obtain credit for service by making
payments to the fund under Minnesota Statutes 1961, section
352.24.
(3) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month in which
the employee is paid salary from which deductions are made,
deposited, and credited in the fund, including deductions made,
deposited, and credited as provided in section 352.041.
(4) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month for which
payments in lieu of salary deductions are made, deposited, and
credited in the fund, as provided in section 352.27 and
Minnesota Statutes 1957, section 352.021, subdivision 4.
For purposes of clauses (3) and (4), except as provided in
clauses (8) and (9), any salary paid for a fractional part of
any calendar month, including the month of separation from state
service, is deemed the compensation for the entire calendar
month.
(5) The period of absence from their duties by employees
who are temporarily disabled because of injuries incurred in the
performance of duties and for which disability the state is
liable under the workers' compensation law until the date
authorized by the director for the commencement of payments of a
total and permanent disability benefit from the retirement fund.
(6) Service covered by a refund repaid as provided in
section 352.23 or 352D.05, subdivision 4, except service
rendered as an employee of the adjutant general for which the
person has credit with the federal civil service retirement
system.
(7) Service before July 1, 1978, by an employee of the
transit operating division of the metropolitan transit
commission or by an employee on an authorized leave of absence
from the transit operating division of the metropolitan transit
commission who is employed by the labor organization which is
the exclusive bargaining agent representing employees of the
transit operating division, which was credited by the
metropolitan transit commission-transit operating division
employees retirement fund or any of its predecessor plans or
funds as past, intermediate, future, continuous, or allowable
service as defined in the metropolitan transit
commission-transit operating division employees retirement fund
plan document in effect on December 31, 1977.
(8) Service after July 1, 1983, by an employee who is
employed on a part-time basis for less than 50 percent of full
time, for which the employee is paid salary from which
deductions are made, deposited, and credited in the fund,
including deductions made, deposited, and credited as provided
in section 352.041 or for which payments in lieu of salary
deductions are made, deposited, and credited in the fund as
provided in section 352.27 shall be credited on a fractional
basis either by pay period, monthly, or annually based on the
relationship that the percentage of salary earned bears to a
full-time salary, with any salary paid for the fractional
service credited on the basis of the rate of salary applicable
for a full-time pay period, month, or a full-time year. For
periods of part-time service that is duplicated service credit,
section 356.30, subdivision 1, clauses (i) and (j), govern.
Allowable service determined and credited on a fractional
basis shall be used in calculating the amount of benefits
payable, but service as determined on a fractional basis must
not be used in determining the length of service required for
eligibility for benefits.
(9) Any period of authorized leave of absence without pay
that does not exceed one year and for which the employee
obtained credit by payment to the fund in lieu of salary
deductions. To obtain credit, the employee shall pay an amount
equal to the employee and employer contribution rate in section
352.04, subdivisions 2 and 3, multiplied by the employee's
hourly rate of salary on the date of return from leave of
absence and by the days and months of the leave of absence
without pay for which the employee wants allowable service
credit. The employing department, at its option, may pay the
employer amount on behalf of its employees. Payments made under
this clause must include interest at an annual rate of 8.5
percent compounded annually from the date of termination of the
leave of absence to the date payment is made unless payment is
completed within one year of the return from leave of absence.
(10) A period purchased under section 356.555.
(11) A period of time during which the employee was on
strike without pay, not to exceed a period of one year, if the
employee makes a payment in lieu of salary deductions or makes a
prior service credit purchase payment, whichever applies. If
the payment is made within 12 months, the payment by the
employee must be an amount equal to the employee and employer
contribution rates set forth in section 352.04, subdivisions 2
and 3, applied to the employee's rate of salary in effect on the
conclusion of the strike for the period of the strike without
pay, plus compound interest at a monthly rate of 0.71 percent
from the last day of the strike until the date of payment. If
the payment by the employee is not made within 12 months, the
payment must be in an amount equal to the payment amount
determined under section 356.55 or 356.551, whichever applies.
Sec. 2. Minnesota Statutes 2001 Supplement, section
353.01, subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a)
"Allowable service" means:
(1) service during years of actual membership in the course
of which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35;
(2) service in years during which the public employee was
not a member but for which the member later elected, while a
member, to obtain credit by making payments to the fund as
permitted by any law then in effect;
(3) a period of authorized leave of absence with pay from
which deductions for employee contributions are made, deposited,
and credited to the fund;
(4) a period of authorized personal, parental, or medical
leave of absence without pay, including a leave of absence
covered under the federal Family Medical Leave Act, that does
not exceed one year, and during or for which a member obtained
full or fractional service credit for each month in the leave
period by payments to the fund made in place of salary
deductions. The payments must be made in an amount or amounts
based on the member's average salary on which deductions were
paid for the last six months of public service, or for that
portion of the last six months while the member was in public
service, to apply to the period in either case that immediately
precedes the commencement of the leave of absence. If the
employee elects to pay the employee contributions for the period
of any authorized personal, parental, or medical leave of
absence without pay, or for any portion of the leave, the
employee shall also, as a condition to the exercise of the
election, pay to the fund an amount equivalent to the required
employer and the additional employer contributions, if any, for
the employee. The payment must be made within one year from the
expiration of the leave of absence or within 20 days after
termination of public service under subdivision 11a. The
employer, if by appropriate action of its governing body, which
is made a part of its official records, and which is adopted
before the date of the first payment of the employee
contribution, may certify to the association in writing its
commitment to pay the employer and additional employer
contributions from the proceeds of a tax levy made under section
353.28. Payments under this paragraph must include interest at
an annual rate of 8.5 percent compounded annually from the date
of the termination of the leave of absence to the date payment
is made. An employee shall return to public service and render
a minimum of three months of allowable service in order to be
eligible to pay employee and employer contributions for a
subsequent authorized leave of absence without pay. Upon
payment, the employee must be granted allowable service credit
for full calendar months or fractions of a month during the
leave period as described in paragraph (d), clauses (1) and (2),
based on the salary or the compensated hours used in computing
the payment amount;
(5) a periodic, repetitive leave that is offered to all
employees of a governmental subdivision. The leave program may
not exceed 208 hours per annual normal work cycle as certified
to the association by the employer. A participating member
obtains service credit by making employee contributions in an
amount or amounts based on the member's average salary that
would have been paid if the leave had not been taken. The
employer shall pay the employer and additional employer
contributions on behalf of the participating member. The
employee and the employer are responsible to pay interest on
their respective shares at the rate of 8.5 percent a year,
compounded annually, from the end of the normal cycle until full
payment is made. An employer shall also make the employer and
additional employer contributions, plus 8.5 percent interest,
compounded annually, on behalf of an employee who makes employee
contributions but terminates public service. The employee
contributions must be made within one year after the end of the
annual normal working cycle or within 20 days after termination
of public service, whichever is sooner. The association shall
prescribe the manner and forms to be used by a governmental
subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for
full calendar months or fractions of a month during the leave
period as described in paragraph (d), clauses (1) and (2), based
on the salary or the compensated hours used in computing the
payment amount;
(6) an authorized temporary layoff under subdivision 12.
For temporary layoffs that begin before January 1, 2002,
allowable service credit is limited to three months allowable
service per authorized temporary layoff in one calendar year.
For temporary layoffs that begin on or after January 1, 2002,
allowable service credit for the calendar month in which the
member does not receive salary due to the layoff must be
determined using the following formula:
(i) members who earned one month of allowable service
credit for each of the nine calendar months of compensated
employment with the governmental subdivision authorizing the
layoff that immediately preceded the layoff shall receive one
month of allowable service credit, limited to three months of
allowable service credit per year, for each month of the
temporary layoff; or
(ii) members who earned less than nine months of allowable
service credit in the year of compensated employment with the
governmental subdivision authorizing the layoff that immediately
preceded the layoff shall receive allowable service credit on a
fractional basis for each month of the authorized layoff,
limited to three months of allowable service credit, determined
by dividing the total number of months of service credit earned
for the compensated employment by nine and multiplying the
resulting number by the total number of months in the layoff
period that are not compensated; or
(7) a period during which a member is on an authorized
leave of absence to enter military service in the armed forces
of the United States, provided that the member returns to public
service upon discharge from military service under section
192.262 and pays into the fund employee contributions based upon
the employee's salary at the date of return from military
service. Payment must be made within three times the length of
the military leave period, or five years of the date of
discharge from the military service, whichever is less. The
amount of these contributions must be in accord with the
contribution rates and salary limitations, if any, in effect
during the leave, plus interest at an annual rate of 8.5 percent
compounded annually from the date of return to public service to
the date payment is made. The matching employer contribution
and additional employer contribution under section 353.27,
subdivisions 3 and 3a, must be paid by the governmental
subdivision employing the member upon return to public service
if the member makes the employee contributions. The
governmental subdivision involved may appropriate money for
those payments. A member may not receive credit for a voluntary
extension of military service at the instance of the member
beyond the initial period of enlistment, induction, or call to
active duty. Upon payment, the employee must be granted
allowable service credit for full calendar months or fractions
of a month during the leave period as described in paragraph
(d), clauses (1) and (2), based on the salary or compensated
hours used in computing the payment amount.; or
(8) a period of time during which a member who is a state
employee was on strike without pay, not to exceed a period of
one year, if the member makes a payment in lieu of salary
deductions or makes a prior service credit purchase payment,
whichever applies. If the payment is made within 12 months, the
payment by the member must be an amount equal to the employee,
employer, and employer additional contribution rates set forth
in section 353.27, subdivisions 2, 3, and 3a, applied to the
employee's rate of salary in effect on the conclusion of the
strike for the period of the strike without pay, plus compound
interest at a monthly rate of 0.71 percent from the last day of
the strike until the date of payment. If the payment by the
employee is not made within 12 months, the payment must be in an
amount equal to the payment amount determined under section
356.55 or 356.551, whichever applies.
(b) For calculating benefits under sections 353.30, 353.31,
353.32, and 353.33 for state officers and employees displaced by
the Community Corrections Act, chapter 401, and transferred into
county service under section 401.04, "allowable service" means
combined years of allowable service as defined in paragraph (a),
clauses (1) to (6), and section 352.01, subdivision 11.
(c) 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 the type
of benefit coverage provided by the public employees police and
fire fund either under section 353A.08 following the
consolidation or under section 353.665, subdivision 4,
"applicable service" is a period of service credited by the
local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw
provisions governing the relief association on the date of the
initiation of the consolidation procedure.
(d) For persons who, after January 1, 2002, either first
become members or terminated membership under subdivision 11b,
and again become members, of the public employees retirement
plan, the public employees police and fire plan under this
chapter, or the local government correctional employee
retirement plan under chapter 353E, whichever applies,
"allowable service" means credit for compensated hours from
which deductions are made, or for which payments are made in
lieu of salary deductions as provided under this subdivision,
and which are deposited and credited in the fund as provided in
section 353.27, determined as follows:
(1) one month of allowable service credit for each month
during which the employee has received salary for 80 or more
compensated hours; or
(2) a fraction of one month of allowable service for each
month for which the employee has received salary for less than
80 compensated hours equal to the percentage relationship that
the number of compensated hours bear to 80 hours.
(e) Elected officials and other public employees who are
compensated solely on an annual basis shall be granted a full
year of credit for each year for which compensation is earned.
(f) Allowable service that is determined and credited on a
fractional basis must be used only in calculating the amount of
benefits payable. In determining the length of service required
for vesting, a member shall be granted a month of service credit
for each month in which the member received compensation from
which employee contributions were deducted. For periods of
part-time service that are duplicated service credit, section
356.30, subdivision 1, paragraphs (g) and (h), govern.
(g) No member shall receive more than 12 months of
allowable service credit in a year either for vesting purposes
or for benefit calculation purposes.
(h) "Allowable service" also means a period purchased under
section 356.555.
Sec. 3. Minnesota Statutes 2001 Supplement, section
354.05, subdivision 13, is amended to read:
Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means:
(1) Any service rendered by a teacher for which on or
before July 1, 1957, the teacher's account in the retirement
fund was credited by reason of employee contributions in the
form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota
Statutes 1953, sections 135.01 to 135.13, as amended by Laws
1955, chapters 361, 549, 550, 611, or
(2) Any service rendered by a teacher for which on or
before July 1, 1961, the teacher elected to obtain credit for
service by making payments to the fund pursuant to Minnesota
Statutes 1980, section 354.09 and section 354.51, or
(3) Any service rendered by a teacher after July 1, 1957,
for any calendar month when the member receives salary from
which deductions are made, deposited and credited in the fund,
or
(4) Any service rendered by a person after July 1, 1957,
for any calendar month where payments in lieu of salary
deductions are made, deposited and credited into the fund as
provided in Minnesota Statutes 1980, section 354.09, subdivision
4, and section 354.53, or
(5) Any service rendered by a teacher for which the teacher
elected to obtain credit for service by making payments to the
fund pursuant to Minnesota Statutes 1980, section 354.09,
subdivisions 1 and 4, sections 354.50, 354.51, Minnesota
Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes
1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973
Supplement, section 354.09, subdivision 3, or
(6) Both service during years of actual membership in the
course of which contributions were currently made and service in
years during which the teacher was not a member but for which
the teacher later elected to obtain credit by making payments to
the fund as permitted by any law then in effect, or
(7) Any service rendered where contributions were made and
no allowable service credit was established because of the
limitations contained in Minnesota Statutes 1957, section
135.09, subdivision 2, as determined by the ratio between the
amounts of money credited to the teacher's account in a fiscal
year and the maximum retirement contribution allowable for that
year, or
(8) A period purchased under section 356.555., or
(9) A period of time during which a teacher who is a state
employee was on strike without pay, not to exceed a period of
one year, if the teacher makes a payment in lieu of salary
deductions or makes a prior service credit purchase payment,
whichever applies. If the payment is made within 12 months, the
payment by the teacher must be an amount equal to the employee
and employer contribution rates set forth in section 354.42,
subdivisions 2 and 3, applied to the teacher's rate of salary in
effect on the conclusion of the strike for the period of the
strike without pay, plus compound interest at a monthly rate of
0.71 percent from the last day of the strike until the date of
payment. If the payment by the employee is not made within 12
months, the payment must be in an amount equal to the payment
amount determined under section 356.55 or 356.551, whichever
applies.
Sec. 4. [EFFECTIVE DATE.]
(a) Sections 1, 2, and 3 are effective retroactive to July
1, 2001.
(b) The authority to obtain credit for allowable service
under section 1, clause (11); section 2, paragraph (a), clause
(8); and section 3, clause (9), expires 12 months after the date
of enactment.
ARTICLE 3
PERA MEMBERSHIP ELIGIBILITY
AND SERVICE CREDIT PRORATION
Section 1. Minnesota Statutes 2001 Supplement, section
353.01, subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose
salary from one governmental subdivision exceeds $425 in any
month shall participate as members of the association. If the
salary is less than $425 in a subsequent month, the employee
retains membership eligibility. Eligible public employees shall
participate as members of the association with retirement
coverage by the public employees retirement plan or the public
employees police and fire retirement plan under this chapter, or
the local government correctional employees retirement plan
under chapter 353E, whichever applies, as a condition of their
employment on the first day of employment unless they:
(1) are specifically excluded under subdivision 2b;
(2) do not exercise their option to elect retirement
coverage in the association as provided in subdivision 2d,
paragraph (a); or
(3) are employees of the governmental subdivisions listed
in subdivision 2d, paragraph (b), where the governmental
subdivision has not elected to participate as a governmental
subdivision covered by the association.
(b) A public employee who was a member of the association
on June 30, 2002, based on employment that qualified for
membership coverage by the public employees retirement plan or
the public employees police and fire plan under this chapter, or
the local government correctional employees retirement plan
under chapter 353E as of June 30, 2002, retains that membership
until the employee terminates public employment under
subdivision 11a or terminates membership under subdivision 11b.
Sec. 2. Minnesota Statutes 2001 Supplement, section
353.01, subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
employees are not eligible to participate as members of the
association with retirement coverage by the public employees
retirement plan, the local government correctional employees
retirement plan under chapter 353E, or the public employees
police and fire retirement plan:
(1) public officers, other than county sheriffs, who are
elected to a governing body, or persons who are appointed to
fill a vacancy in an elective office of a governing body, whose
term of office first commences on or after July 1, 2002, for the
service to be rendered in that elective position. Elected
governing body officials who were active members of the
association's coordinated or basic retirement plans as of June
30, 2002, continue participation throughout incumbency in office
until termination of public service occurs as defined in
subdivision 11a;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services for 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. An employer must not apply the
definition of temporary position so as to exclude employees who
are hired to fill positions that are permanent or that are for
an unspecified period but who are serving a probationary period
at the start of the employment. If the period of employment
extends beyond six consecutive months and the employee earns
more than $425 from one governmental subdivision in any 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.
The 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 who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(6) 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;
(7) persons who are members of a religious order and 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;
(8) employees who at the time they are hired by a of a
governmental subdivision who have not reached the age of 23 and
are enrolled on a full-time basis to attend or are attending
classes on a full-time basis at an accredited school, college,
or university in an undergraduate, graduate, or
professional-technical program, or a public or charter high
school, if the employment is predicated on the student status of
the individual;
(9) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or
residency program in public hospitals;
(10) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(11) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(12) except for employees of Hennepin county, 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 to be reported for
membership from the date of the extension;
(13) 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;
(14) 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, whichever applies, on the
basis of compensation received from public employment service
other than service as volunteer ambulance service personnel;
(15) 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, whichever applies, on the
basis of compensation received from public employment activities
other than those as a volunteer firefighter;
(16) pipefitters and associated trades personnel employed
by independent school district No. 625, St. Paul, with coverage
under a collective bargaining agreement by the pipefitters local
455 pension plan 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;
(17) electrical workers, plumbers, carpenters, and
associated trades personnel employed by independent school
district No. 625, St. Paul, or the city of St. Paul, who have
retirement coverage under a collective bargaining agreement by
the electrical workers local 110 pension plan, the united
association plumbers local 34 pension plan, or the carpenters
local 87 pension plan who were either first employed after May
1, 2000, or, if first employed before May 2, 2000, elected to be
excluded under Laws 2000, chapter 461, article 7, section 5;
(18) bricklayers, allied craftworkers, cement masons,
glaziers, glassworkers, painters, allied tradesworkers, and
plasterers employed by the city of St. Paul or independent
school district No. 625, St. Paul, with coverage under a
collective bargaining agreement by the bricklayers and allied
craftworkers local 1 pension plan, the cement masons local 633
pension plan, the glaziers and glassworkers local L-1324 pension
plan, the painters and allied trades local 61 pension plan, or
the Twin Cities plasterers local 265 pension plan who were
either first employed after May 1, 2001, or if first employed
before May 2, 2001, elected to be excluded under Laws 2001,
First Special Session chapter 10, article 10, section 6;
(19) plumbers employed by the metropolitan airports
commission, with coverage under a collective bargaining
agreement by the plumbers local 34 pension plan, who either were
first employed after May 1, 2001, or if first employed before
May 2, 2001, elected to be excluded under Laws 2001, First
Special Session chapter 10, article 10, section 6;
(20) employees who are hired after June 30, 2002, to fill
seasonal positions under subdivision 12b which are limited in
duration by the employer to 185 consecutive calendar days or
less in each business year of employment with the governmental
subdivision;
(21) persons who are provided supported employment or
work-study positions by a governmental subdivision and who
participate in an employment or industries program maintained
for the benefit of these persons where the governmental
subdivision limits the position's duration to three years or
less, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen,
youth, or unemployment relief program where the training or work
experience is not provided as a part of, or for, future
permanent public employment;
(22) independent contractors and the employees of
independent contractors; and
(23) reemployed annuitants of the association during the
course of that reemployment.
Sec. 3. Minnesota Statutes 2001 Supplement, section
353.01, subdivision 11b, is amended to read:
Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination
of membership" means the conclusion of membership in the
association and occurs:
(1) upon termination of public service under subdivision
11a;
(2) when a member does not return to work within 30 days of
the expiration of an authorized temporary layoff under
subdivision 12 or an authorized leave of absence under
subdivision 31 as evidenced by the appropriate record filed by
the governmental subdivision; or
(3) when a person files a written election to discontinue
employee deductions under section 353.27, subdivision 7,
paragraph (a), clause (1).
(b) The termination of membership must be reported to the
association by the governmental subdivision.
(c) If the employee subsequently returns to a position in
the same governmental subdivision, the employee shall not again
be required to earn a salary in excess of $425 per month to
qualify for membership, unless the employee has taken a refund
of accumulated employee deduction plus interest under section
353.34, subdivision 1.
Sec. 4. Minnesota Statutes 2001 Supplement, section
353.01, subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a)
"Allowable service" means:
(1) service during years of actual membership in the course
of which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35;
(2) service in years during which the public employee was
not a member but for which the member later elected, while a
member, to obtain credit by making payments to the fund as
permitted by any law then in effect;
(3) a period of authorized leave of absence with pay from
which deductions for employee contributions are made, deposited,
and credited to the fund;
(4) a period of authorized personal, parental, or medical
leave of absence without pay, including a leave of absence
covered under the federal Family Medical Leave Act, that does
not exceed one year, and during or for which a member obtained
full or fractional service credit for each month in the leave
period by payments to the fund made in place of salary
deductions. The payments must be made in an amount or amounts
based on the member's average salary on which deductions were
paid for the last six months of public service, or for that
portion of the last six months while the member was in public
service, to apply to the period in either case that immediately
precedes the commencement of the leave of absence. If the
employee elects to pay the employee contributions for the period
of any authorized personal, parental, or medical leave of
absence without pay, or for any portion of the leave, the
employee shall also, as a condition to the exercise of the
election, pay to the fund an amount equivalent to the required
employer and the additional employer contributions, if any, for
the employee. The payment must be made within one year from the
expiration of the leave of absence or within 20 days after
termination of public service under subdivision 11a, whichever
is earlier. The employer, if by appropriate action of its
governing body, which is made a part of its official records,
and which is adopted before the date of the first payment of the
employee contribution, may certify to the association in writing
its commitment to pay the employer and additional employer
contributions from the proceeds of a tax levy made under section
353.28. Payments under this paragraph must include interest at
an annual rate of 8.5 percent compounded annually from the date
of the termination of the leave of absence to the date payment
is made. An employee shall return to public service and render
a minimum of three months of allowable service in order to be
eligible to pay employee and employer contributions for a
subsequent authorized leave of absence without pay. Upon
payment, the employee must be granted allowable service credit
for full calendar months or fractions of a month during the
leave purchased period as described in paragraph (d), clauses (1)
and (2), based on the salary or the compensated hours used in
computing the payment amount;
(5) a periodic, repetitive leave that is offered to all
employees of a governmental subdivision. The leave program may
not exceed 208 hours per annual normal work cycle as certified
to the association by the employer. A participating member
obtains service credit by making employee contributions in an
amount or amounts based on the member's average salary that
would have been paid if the leave had not been taken. The
employer shall pay the employer and additional employer
contributions on behalf of the participating member. The
employee and the employer are responsible to pay interest on
their respective shares at the rate of 8.5 percent a year,
compounded annually, from the end of the normal cycle until full
payment is made. An employer shall also make the employer and
additional employer contributions, plus 8.5 percent interest,
compounded annually, on behalf of an employee who makes employee
contributions but terminates public service. The employee
contributions must be made within one year after the end of the
annual normal working cycle or within 20 days after termination
of public service, whichever is sooner. The association shall
prescribe the manner and forms to be used by a governmental
subdivision in administering a periodic, repetitive leave. Upon
payment, the member must be granted allowable service credit for
full calendar months or fractions of a month during the leave
purchased period as described in paragraph (d), clauses (1) and
(2), based on the salary or the compensated hours used in
computing the payment amount;
(6) an authorized temporary layoff under subdivision 12.
For temporary layoffs that begin before January 1, 2002,
allowable service credit is, limited to three months allowable
service per authorized temporary layoff in one calendar year.
For temporary layoffs that begin on or after January 1, 2002,
allowable service credit for the calendar month in which the
member does not receive salary due to the layoff must be
determined using the following formula:
(i) members who earned one month of allowable service
credit for each of the nine calendar months of compensated
employment with the governmental subdivision authorizing the
layoff that immediately preceded the layoff shall receive one
month of allowable service credit, limited to three months of
allowable service credit per year, for each month of the
temporary layoff; or
(ii) members who earned less than nine months of allowable
service credit in the year of compensated employment with the
governmental subdivision authorizing the layoff that immediately
preceded the layoff shall receive allowable service credit on a
fractional basis for each month of the authorized layoff,
limited to three months of allowable service credit, determined
by dividing the total number of months of service credit earned
for the compensated employment by nine and multiplying the
resulting number by the total number of months in the layoff
period that are not compensated An employee who has received the
maximum service credit allowed for an authorized temporary
layoff must return to public service and must obtain a minimum
of three months of allowable service subsequent to the layoff in
order to receive allowable service for a subsequent authorized
temporary layoff; or
(7) a period during which a member is on an authorized
leave of absence to enter military service in the armed forces
of the United States, provided that if the member returns to
public service upon discharge from military service under
section 192.262 and pays into the fund employee contributions
based upon the employee's salary at the date of return from
military service. Payment must be made within a period that is
three times the length of the military leave period, or within
five years of the date of discharge from the military service,
whichever is less. Payment may not be accepted following 20
days after termination of public service under subdivision 11a.
The amount of these contributions must be in accord with the
contribution rates and salary limitations, if any, in effect
during the leave, plus interest at an annual rate of 8.5 percent
compounded annually from the date of return to public service to
the date payment is made. The matching corresponding employer
contribution, and additional employer contribution under section
353.27, subdivisions 3 and 3a, if applicable, must be paid by
the governmental subdivision employing the member upon the
person's return to public service if the member makes the
employee contributions. The governmental subdivision involved
may appropriate money for those payments. A member may not
receive credit for a voluntary extension of military service at
the instance of the member beyond the initial period of
enlistment, induction, or call to active duty. Upon payment,
the employee must be granted allowable service credit for full
calendar months or fractions of a month during the leave
purchased period as described in paragraph (d), clauses (1) and
(2), based on the salary or compensated hours used in computing
the payment amount.
(b) For calculating benefits under sections 353.30, 353.31,
353.32, and 353.33 for state officers and employees displaced by
the Community Corrections Act, chapter 401, and transferred into
county service under section 401.04, "allowable service"
means the combined years of allowable service as defined in
paragraph (a), clauses (1) to (6), and section 352.01,
subdivision 11.
(c) 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 the type
of benefit coverage provided by the public employees police and
fire fund either under section 353A.08 following the
consolidation or under section 353.665, subdivision 4,
"applicable service" is a period of service credited by the
local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw
provisions governing the relief association on the date of the
initiation of the consolidation procedure.
(d) For persons who, after January 1, 2002, either first
become members or terminated membership under subdivision 11b,
and again become members, of the public employees retirement
plan, the public employees police and fire plan under this
chapter, or the local government correctional employee
retirement plan under chapter 353E, whichever applies,
"allowable service" means credit for compensated hours from
which deductions are made, or for which payments are made in
lieu of salary deductions as provided under this subdivision,
and which are deposited and credited in the fund as provided in
section 353.27, determined as follows:
(1) one month of allowable service credit for each month
during which the employee has received salary for 80 or more
compensated hours; or
(2) a fraction of one month of allowable service for each
month for which the employee has received salary for less than
80 compensated hours equal to the percentage relationship that
the number of compensated hours bear to 80 hours.
(e) Elected officials and other public employees who are
compensated solely on an annual basis shall be granted a full
year of credit for each year for which compensation is earned.
(f) Allowable service that is determined and credited on a
fractional basis must be used only in calculating the amount of
benefits payable. In determining the length of service required
for vesting, a member shall be granted a month of service credit
for each month in which the member received compensation from
which employee contributions were deducted. For periods of
part-time service that are duplicated service credit, section
356.30, subdivision 1, paragraphs (g) and (h), govern.
(g) No member shall may receive more than 12 months of
allowable service credit in a year either for vesting purposes
or for benefit calculation purposes.
(h) (e) "Allowable service" also means a period purchased
under section 356.555.
Sec. 5. Minnesota Statutes 2000, section 353.01, is
amended by adding a subdivision to read:
Subd. 40. [REDUCED SALARY DURING PERIOD OF WORKERS'
COMPENSATION.] (a) A member who is receiving temporary workers'
compensation payments related to the member's service to the
public employer and who either is receiving a reduced salary
from the employer during that period or is receiving no salary
from the employer during that period is entitled to receive
allowable service and salary credit for the period of time that
the member is receiving the workers' compensation payments upon
making the payments specified in this subdivision.
(b) The differential salary amount is the difference
between the average rate of salary received by the member, if
any, during the period of time that the member is collecting
temporary workers' compensation payments and the average rate of
salary of the member on which contributions to the applicable
plan were made during the period of the last six months of
covered employment occurring immediately before beginning to
collect the temporary workers' compensation payments, applied to
the member's normal employment period, measured in hours or
otherwise, as applicable.
(c) To receive eligible service credit, the member shall
pay an amount equal to the applicable employee contribution rate
under section 353.27, subdivision 2; 353.65, subdivision 2; or
353E.03, subdivision 1, as applicable, multiplied by the
differential salary amount; plus an employer equivalent payment
equal to the applicable employer contribution rate in section
353.27, subdivision 3; 353.65, subdivision 3; or 353E.03,
subdivision 2, as applicable, multiplied by the differential
salary amount; plus, if applicable, an equivalent employer
additional amount equal to the additional employer contribution
rate in section 353.27, subdivision 3a, multiplied by the
differential salary amount.
(d) The employer may, by appropriate action of its
governing body and documented in its official records, pay the
employer equivalent contributions and, as applicable, the
equivalent employer additional contributions on behalf of the
member.
(e) Payment under this subdivision must include interest on
the contribution amount or amounts, whichever applies, at an 8.5
percent annual rate, prorated for applicable months from the
date on which the temporary workers' compensation payments
terminate to the date on which the payment or payments are
received by the executive director. Payment under this
subdivision must be completed within one year after the
termination of the temporary workers' compensation payments to
the member, or within 20 days after the termination of public
service by the employee under subdivision 11a, whichever is
earlier.
Sec. 6. Minnesota Statutes 2001 Supplement, section
353.27, subdivision 4, is amended to read:
Subd. 4. [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 employee who qualifies for membership under this
chapter and 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 14 calendar days.
The head of each department or the person's designee shall for
each pay period submit to the association a salary deduction
report in the format prescribed by the executive director. Data
required to be submitted as part of salary deduction reporting
must include, but are not limited to:
(1) the legal names and social security numbers of
employees who are members;
(2) the amount of each employee's salary deduction;
(3) the amount of salary from which each deduction was
made;
(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;
and
(6) the number of compensated hours of each employee during
the payroll period.
(b) Employers must furnish the data required for enrollment
for each new employee who qualifies for membership in the format
prescribed by the executive director. The required enrollment
data on new employees must be submitted to the association 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 shall report the
effective dates of those changes, on an ongoing basis for the
payroll cycle in which they occur. The employer shall furnish
data, forms, and reports as may be 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.
(c) Notwithstanding paragraph (a), the association may
provide for less frequent reporting and payments for small
employers.
Sec. 7. Minnesota Statutes 2001 Supplement, section
353.27, subdivision 11, is amended to read:
Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED
INFORMATION.] All governmental subdivisions shall furnish
promptly such other information relative to the employment
status of all employees or former employees, including but not
limited to payroll abstracts pertaining to all past and present
employees, as may be requested by the association or its
executive director, including schedules of salaries applicable
to various categories of employment, and the number of actual or
estimated compensated hours for employees. In the event payroll
abstract records have been lost or destroyed, for whatever
reason or in whatever manner, so that such schedules of salaries
cannot be furnished therefrom, the employing governmental
subdivision, in lieu thereof, shall furnish to the association
an estimate of the earnings of any employee or former employee
for any period as may be requested by the association or its
executive director. Should the association receive such
schedules of estimated earnings, the executive director is
hereby authorized to use the same as a basis for making whatever
computations might be necessary for determining obligations of
the employee and employer to the retirement fund. If estimates
are not furnished by the employer pursuant to the request of the
association or its executive director, the association may
estimate the obligations of the employee and employer to the
retirement fund based upon such records as are in its
possession. Where payroll abstracts have been lost or
destroyed, the governmental agency need not furnish any
information pertaining to employment prior to July 1, 1963. The
association shall make no estimate of any obligation of any
employee, former employee, or employer covering employment prior
to July 1, 1963.
Sec. 8. Minnesota Statutes 2000, section 353.64,
subdivision 7a, is amended to read:
Subd. 7a. [PENSION COVERAGE FOR CERTAIN METROPOLITAN
TRANSIT POLICE OFFICERS.] A person who is employed as a
full-time police officer on or after the first day of the first
payroll period after July 1, 1993, by the metropolitan council
and who is not eligible for coverage under the agreement with
the Secretary of the federal Department of Health and Human
Services making the provisions of the federal Old Age,
Survivors, and Disability Insurance Act because the person's
position is excluded from application under United States Code,
sections 418(d)(5)(A) and 418(d)(8)(D), and under section
355.07, is a member of the public employees police and fire fund
and is considered to be a police officer within the meaning of
this section. The metropolitan council shall deduct the
employee contribution from the salary of each full-time police
officer as required by section 353.65, subdivision 2, shall make
the employer contribution for each full-time police officer as
required by section 353.65, subdivision 3, and shall meet the
employer recording and reporting requirements in section 353.65,
subdivision 4.
Sec. 9. [REPEALER.]
Minnesota Statutes 2001 Supplement, section 353.01,
subdivision 39, is repealed.
Sec. 10. [APPLICATION.]
Section 8 applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
Sec. 11. [EFFECTIVE DATE.]
(a) Except as provided in paragraphs (c) and (d), sections
1, 2, and 3 are effective on July 1, 2002.
(b) Sections 4, 6, 7, and 9 are effective retroactively
from January 1, 2002.
(c) The amendment to Minnesota Statutes, section 353.01,
subdivision 2b, clause (12), in section 2, is effective on the
day after the date on which the governing body of Hennepin
county and the chief clerical officer of the county complete in
a timely manner their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
(d) The amendments to Minnesota Statutes, section 353.01,
subdivision 2b, clauses (8) and (20), are effective
retroactively from January 1, 2002.
(e) Section 5 is effective on the day following final
enactment.
(f) Section 8 is effective July 1, 2002, and applies to
salaries earned by part-time metropolitan transit police
officers after June 30, 2002.
ARTICLE 4
PERA LOCAL GOVERNMENT CORRECTIONAL
RETIREMENT PLAN MODIFICATIONS
Section 1. Minnesota Statutes 2000, section 353E.02,
subdivision 1, is amended to read:
Subdivision 1. [RETIREMENT COVERAGE.] Local government
correctional service employees are The members of the local
government correctional service retirement plan established by
this chapter are:
(1) local government correctional service employees as
defined in subdivision 2; and
(2) medical center protection officers as defined in
subdivision 2a.
Sec. 2. Minnesota Statutes 2000, section 353E.02, is
amended by adding a subdivision to read:
Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A
medical center protection officer, for purposes of subdivision
1, is a person whom the employer certifies:
(1) is employed by the Hennepin county medical center as a
protection officer;
(2) is directly responsible for the direct security of the
medical center;
(3) is expected to respond to any incidents within the
medical center as part of the person's regular employment duties
and is trained to do so; and
(4) is a "public employee" as defined in section 353.01,
but is not a member of the public employees police and fire plan.
(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.
Sec. 3. Minnesota Statutes 2000, section 353E.03, is
amended to read:
353E.03 [CORRECTIONAL SERVICE PLAN CONTRIBUTIONS.]
Subdivision 1. [MEMBER CONTRIBUTIONS.] A member of the
local government correctional service employee retirement plan
shall make an employee contribution in an amount equal to 6.01
5.83 percent of salary.
Subd. 2. [EMPLOYER CONTRIBUTIONS.] The employer shall
contribute for a member of the local government correctional
service employee retirement plan an amount equal to 9.02 8.75
percent of salary.
Sec. 4. Laws 2000, chapter 461, article 10, section 3, as
amended by Laws 2001, First Special Session chapter 10, article
3, section 28, is amended to read:
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, 2003.
Sec. 5. [REPEALER.]
Laws 2000, chapter 461, article 10, section 2, is repealed.
Sec. 6. [EFFECTIVE DATE.]
(a) Sections 1, 2, and 3 are effective on July 1, 2002.
(b) Section 4 is effective on the day following final
enactment.
(c) Section 5 is effective on August 1, 2002.
ARTICLE 5
PENSION COVERAGE FOR
PRIVATIZED PUBLIC HOSPITALS
Section 1. Minnesota Statutes 2000, section 353F.02,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL FACILITY.] "Medical facility" means:
(1) the Glencoe area health center;
(2) the Luverne public hospital; and
(3) the Waconia-Ridgeview medical center.; and
(4) the Kanabec hospital.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective upon the latter of:
(1) the day after the governing body of Kanabec county and
its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3; and
(2) the first day of the month next following certification
to the Kanabec county board 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 Kanabec hospital employees under
section 1 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 Kanabec hospital.
ARTICLE 6
CLOSED CHARTER SCHOOL
UNPAID RETIREMENT CONTRIBUTIONS
Section 1. Minnesota Statutes 2001 Supplement, 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 a public schools
school of the state located outside of the corporate limits of
the cities a city of the first class, or in any charter school,
irrespective of the location of the school, 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, 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;
(3) a person who renders teaching service on a part-time
basis and who also renders other services for a single employing
unit. 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; or
(4) a person who is not covered by the plans established
under chapter 352D, 354A, or 354B and who is employed by the
board of trustees of the Minnesota state colleges and
universities system in an unclassified position as:
(i) a president, vice-president, or dean;
(ii) a manager or a professional in an academic or an
academic support program other than specified in item (i);
(iii) an administrative or a service support faculty
position; or
(iv) a teacher or a research assistant.
(b) Teacher "Teacher" does not mean:
(1) a person who works for a school or institution as an
independent contractor as defined by the Internal Revenue
Service;
(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;
(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
(4) a person exempt from licensure under section 122A.30.
Sec. 2. Minnesota Statutes 2000, section 354A.011,
subdivision 27, is amended to read:
Subd. 27. [TEACHER.] (a) "Teacher" means any person who
renders service in for a public school district, other than a
charter school, located in the corporate limits of one of the
cities of the first class which was so classified on January 1,
1979, as any of the following:
(a) (1) a full-time employee in a position for which a
valid license from the state department of children, families,
and learning is required;
(b) (2) an employee of the teachers retirement fund
association located in the city of the first class unless the
employee has exercised the option pursuant to Laws 1955, chapter
10, section 1, to retain membership in the Minneapolis employees
retirement fund established pursuant to chapter 422A;
(c) (3) a part-time employee in a position for which a
valid license from the state department of children, families,
and learning is required; or
(d) (4) a part-time employee in a position for which a
valid license from the state department of children, families,
and learning is required who also renders other nonteaching
services for the school district, unless the board of trustees
of the teachers retirement fund association determines that the
combined employment is on the whole so substantially dissimilar
to teaching service that the service shall may not be covered by
the association.
(b) The term shall does not mean any person who renders
service in the school district as any of the following:
(1) an independent contractor or the employee of an
independent contractor;
(2) an employee who is a full-time teacher covered by the
teachers retirement association or by another teachers
retirement fund association established pursuant to this chapter
or chapter 354;
(3) an employee exempt from licensure pursuant to section
122A.30;
(4) an employee who is a teacher in a technical college
located in a city of the first class unless the person elects
coverage by the applicable first class city teacher retirement
fund association under section 354B.21, subdivision 2; or
(5) a teacher employed by a charter school, irrespective of
the location of the school; or
(6) an employee who is a part-time teacher in a technical
college in a city of the first class and who has elected
coverage by the applicable first class city teacher retirement
fund association under section 354B.21, subdivision 2, but (i)
the teaching service is incidental to the regular nonteaching
occupation of the person; (ii) the applicable technical college
stipulates annually in advance that the part-time teaching
service will not exceed 300 hours in a fiscal year; and (iii)
the part-time teaching actually does not exceed 300 hours in the
fiscal year to which the certification applies.
Sec. 3. Minnesota Statutes 2000, section 354A.12,
subdivision 3d, is amended to read:
Subd. 3d. [SUPPLEMENTAL ADMINISTRATIVE EXPENSE
ASSESSMENT.] (a) The active and retired membership of the
Minneapolis teachers retirement fund association and of the St.
Paul teachers retirement fund association is responsible for
defraying supplemental administrative expenses other than
investment expenses of the respective teacher retirement fund
association.
(b) Investment expenses of the teachers retirement fund
association are those expenses incurred by or on behalf of the
retirement fund in connection with the investment of the assets
of the retirement fund other than investment security
transaction costs. Other administrative expenses are all
expenses incurred by or on behalf of the retirement fund for all
other retirement fund functions other than the investment of
retirement fund assets. Investment and other administrative
expenses must be accounted for using generally accepted
accounting principles and in a manner consistent with the
comprehensive annual financial report of the teachers retirement
fund association for the immediately previous fiscal year under
section 356.20.
(c) Supplemental administrative expenses other than
investment expenses of a first class city teacher retirement
fund association are those expenses for the fiscal year that:
(1) exceed, for the St. Paul teachers retirement fund
association $443,745, or for the Minneapolis teacher retirement
fund association $671,513, plus, in each case, an additional
amount derived by applying the percentage increase in the
consumer price index for urban wage earners and clerical workers
all items index published by the Bureau of Labor Statistics of
the United States Department of Labor since July 1, 2001, to the
applicable dollar amount; and
(2) exceed the amount computed by applying the most recent
percentage of pay administrative expense amount, other than
investment expenses, for the teachers retirement association
governed by chapter 354 to the covered payroll of the respective
teachers retirement fund association for the fiscal year.
(d) The board of trustees of each first class city teachers
retirement fund association shall allocate the total dollar
amount of supplemental administrative expenses other than
investment expenses determined under paragraph (c), clause (2),
among the various active and retired membership groups of the
teachers retirement fund association and shall assess the
various membership groups their respective share of the
supplemental administrative expenses other than investment
expenses, in amounts determined by the board of trustees. The
supplemental administrative expense assessments must be paid by
the membership group in a manner determined by the board of
trustees of the respective teachers retirement association.
Supplemental administrative expenses payable by the active
members of the pension plan must be picked up by the employer in
accordance with section 356.62.
(e) With respect to the St. Paul teachers retirement fund
association, the supplemental administrative expense assessment
must be fully disclosed to the various active and retired
membership groups of the teachers retirement fund association.
The chief administrative officer of the St. Paul teachers
retirement fund association shall prepare a supplemental
administrative expense assessment disclosure notice, which must
include the following:
(1) the total amount of administrative expenses of the St.
Paul teachers retirement fund association, the amount of the
investment expenses of the St. Paul teachers retirement fund
association, and the net remaining amount of administrative
expenses of the St. Paul teachers retirement fund association;
(2) the amount of administrative expenses for the St. Paul
teachers retirement fund association that would be equivalent to
the teachers retirement association noninvestment administrative
expense level described in paragraph (c);
(3) the total amount of supplemental administrative
expenses required for assessment calculated under paragraph (c);
(4) the portion of the total amount of the supplemental
administrative expense assessment allocated to each membership
group and the rationale for that allocation;
(5) the manner of collecting the supplemental
administrative expense assessment from each membership group,
the number of assessment payments required during the year, and
the amount of each payment or the procedure used to determine
each payment; and
(6) any other information that the chief administrative
officer determines is necessary to fairly portray the manner in
which the supplemental administrative expense assessment was
determined and allocated.
(f) The disclosure notice must be provided annually in the
annual report of the association.
(g) The supplemental administrative expense assessments
must be deposited in the applicable teachers retirement fund
upon receipt.
(h) Any omitted active membership group assessments that
remain undeducted and unpaid to the teachers retirement fund
association for 90 days must be paid by the respective school
district. The school district may recover any omitted active
membership group assessment amounts that it has previously
paid. The teachers retirement fund association shall deduct any
omitted retired membership group assessment amounts from the
benefits next payable after the discovery of the omitted amounts.
Sec. 4. [STATE PAYMENT OF CERTAIN UNPAID CHARTER SCHOOL
RETIREMENT CONTRIBUTIONS.]
Subdivision 1. [UNPAID CONTRIBUTIONS.] (a) The state of
Minnesota shall make any unpaid employee, employer, and employer
additional contributions to the applicable retirement
association for teaching or other service in a designated
charter school which closed before April 1, 2002, without having
paid the required contributions to the retirement association.
(b) By June 1, 2002, the chief administrative officer of
the retirement association shall certify to the commissioner of
children, families, and learning the amount of accrued
contributions, plus applicable interest, which were not paid by
each designated charter school before its closure. On July 1,
2002, the commissioner of children, families, and learning shall
pay the amounts certified from the state total building lease
aid otherwise payable under Minnesota Statutes, section 124D.11,
subdivision 4a, to the affected retirement associations. The
forecasted amount of charter school lease aid must not be
adjusted to reflect the amount remitted under this section.
Rather, charter school lease aid must be prorated by the amount
remitted. The commissioner shall remit directly to the
retirement association the amounts certified under this
section. The applicable retirement association shall credit
employee contribution payments to the applicable member accounts
and shall credit to the applicable members allowable and formula
service and covered salary for the period when the teaching or
other service was actually performed in the charter school.
State payments representing unpaid employee contributions must
be considered accumulated employee or member deductions for
purposes of Minnesota Statutes, section 353.34; 354.49; or
354A.37.
Subd. 2. [COVERED RETIREMENT ASSOCIATIONS.] This section
applies to the following public retirement associations
providing retirement coverage for employees in charter schools:
(1) the teachers retirement association;
(2) the Minneapolis teachers retirement fund association;
(3) the St. Paul teachers retirement fund association;
(4) the Duluth teachers retirement fund association; and
(5) the public employees retirement association.
Subd. 3. [DESIGNATED CLOSED CHARTER SCHOOLS.] This section
applies to the Frederick Douglass charter school and any other
charter school that is determined by the commissioner of
children, families, and learning to have closed before April 1,
2002.
Sec. 5. [CONTINUING RECOVERY AUTHORITY.]
Nothing in section 4 relieves the sponsor of a closed
charter school and the operator of a closed charter school from
any financial responsibility that those parties may have to pay
unpaid employee, employer, or employer additional contributions
to the applicable public retirement plans. The commissioner of
revenue shall undertake all reasonable efforts to recover these
amounts. Any recovered amounts must be deposited in the general
fund and are appropriated to the department of children,
families, and learning to offset the payment of unpaid
contributions under section 4.
Sec. 6. [EFFECTIVE DATE.]
(a) Sections 1 and 2 are effective on July 1, 2002.
(b) Sections 4 and 5 are effective on the day following
final enactment.
ARTICLE 7
TEACHER RETIREMENT PLANS
SERVICE CREDIT PURCHASE
DEADLINE EXTENSION
Section 1. Laws 1999, chapter 222, article 16, section 16,
is amended to read:
Sec. 16. [REPEALER.]
Sections 1 to 13 are repealed on May 16, 2002 2003.
Sec. 2. Laws 2000, chapter 461, article 12, section 20, is
amended to read:
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 2003.
Sec. 3. Laws 2001, First Special Session chapter 10,
article 6, section 21, is amended to read:
Sec. 21. [EXPIRATION DATE.]
(a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17,
18, 19, and 20 expire May 16, 2003.
(b) Sections 9 and 15 expire May 16, 2002 2003.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective on the day following final
enactment.
ARTICLE 8
RECODIFICATION OF SOCIAL
SECURITY COVERAGE PROVISIONS
Section 1. Minnesota Statutes 2000, section 355.01,
subdivision 1, is amended to read:
Subdivision 1. [IN GENERAL.] For the purposes of this
chapter, as amended, each of the terms defined in this section
have has the meanings meaning ascribed to them herein.
Sec. 2. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2a. [CONSTITUTIONAL OFFICER.] "Constitutional
officer" means a person who serves as the governor, lieutenant
governor, attorney general, secretary of state, state auditor,
or state treasurer, who is duly elected and who was sworn into
office.
Sec. 3. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2b. [DIRECTOR.] "Director" means the executive
director of the public employees retirement association.
Sec. 4. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2c. [DULUTH TEACHER.] "Duluth teacher" means a
person employed by independent school district No. 709, Duluth,
who holds a position covered by the Duluth teachers retirement
fund association established under chapter 354A.
Sec. 5. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2d. [EDUCATIONAL EMPLOYEE.] "Educational employee"
means an employee of the state of Minnesota or of a public
subdivision of the state who performs services in a position
covered by the teachers retirement association under chapter 354.
Sec. 6. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2e. [EMPLOYEE.] "Employee" means a person employed
by the state of Minnesota or by a political subdivision of the
state and includes an officer of the state of Minnesota or of a
political subdivision of the state.
Sec. 7. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 2f. [EMPLOYEE TAX.] "Employee tax" means the tax
imposed by section 3101 of the Internal Revenue Code of 1986.
Sec. 8. Minnesota Statutes 2000, section 355.01,
subdivision 3, is amended to read:
Subd. 3. [EMPLOYMENT.] The term (a) "Employment" means any
service performed by an employee in the employ of the state, or
any political subdivision thereof, for such that employer,
except:
(1) service which in the absence of an agreement entered
into under this chapter, as amended, would constitute
"employment" as defined in the Social Security act; or
(2) service which under the Social Security Act may is not
permitted to be included in an agreement between the state and
the federal Secretary of Health, Education, and Welfare Human
Services entered into under this chapter, as amended.
(b) Service which under the Social Security Act may is
permitted to be included in an agreement only upon certification
by the governor in accordance with section 218(d) (3) of that
act shall must be included in the term "employment" if and when
the governor issues, with respect to such that service, a the
appropriate federal certificate to the federal Secretary of
Health, Education, and Welfare Human Services.
Sec. 9. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3a. [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal
Insurance Contributions Act" means subchapters A and B of
chapter 21 of the Internal Revenue Code of 1986, as amended
through December 31, 2000.
Sec. 10. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3b. [GOVERNMENTAL EMPLOYER.] "Governmental employer"
means any political subdivision as defined in section 218 of the
Social Security Act. The term includes a city, county, town,
hospital district, or other body, politic and corporate, located
in Minnesota.
Sec. 11. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3c. [HIGHER EDUCATION EMPLOYEE.] "Higher education
employee" means an employee of the state of Minnesota who
performs services in a Minnesota state colleges and universities
system in a position covered by the individual retirement
account plan under section 354B.21 and who remains a member of
the teachers retirement association for purposes of social
security coverage only.
Sec. 12. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3d. [HOSPITAL EMPLOYEE.] "Hospital employee" means
an officer or employee of a public hospital who performs
services in a position covered by the public employees
retirement association under chapter 353.
Sec. 13. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3e. [JUDGE.] "Judge" means a judge as defined in
section 490.121, subdivision 3.
Sec. 14. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3f. [LEGISLATOR.] "Legislator" means a member of the
legislature who is duly elected and who was sworn into office.
Sec. 15. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3g. [LOCAL GOVERNMENTAL SUBDIVISION.] "Local
governmental subdivision" means:
(1) a political subdivision as defined in section 218(b) of
the Social Security Act;
(2) an instrumentality of the state;
(3) an instrumentality of one or more of the political
subdivisions of the state, including the league of Minnesota
cities;
(4) an instrumentality of the state and one or more of its
political subdivisions;
(5) a governmental subdivision as defined in section
353.01, subdivision 6; and
(6) any instrumentality established under a joint powers
agreement under section 471.59 wherein the instrumentality is
responsible for the employment and the payment of the salaries
of the employees of the instrumentality.
Sec. 16. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3h. [MINNEAPOLIS TEACHER.] "Minneapolis teacher"
means a person employed by special school district No. 1,
Minneapolis, who holds a position covered by the Minneapolis
teachers retirement fund association established under chapter
354A.
Sec. 17. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3i. [POLITICAL SUBDIVISION.] "Political subdivision"
means any political subdivision as defined in section 218(b) of
the Social Security Act, and includes any instrumentality of the
state, any instrumentality of one or more of its political
subdivisions, including the league of Minnesota municipalities,
any instrumentality of the state and one or more of its
political subdivisions, and an instrumentality established under
a joint powers agreement under section 471.59, wherein the
instrumentality is responsible for the employment and payment of
the salaries of employees of the instrumentality.
Sec. 18. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3j. [PUBLIC EMPLOYEE.] "Public employee" means an
officer or an employee of a local governmental subdivision of
the state who performs services in a position covered by the
public employees retirement association established under
chapter 353.
Sec. 19. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3k. [PUBLIC HOSPITAL.] "Public hospital" means a
hospital that is owned or operated by a governmental employer or
a combination of governmental employers, or a hospital that is
an integral part of a governmental employer or of a combination
of governmental employers.
Sec. 20. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 3l. [ST. PAUL TEACHER.] "St. Paul teacher" means a
person employed by independent school district No. 625, St.
Paul, who holds a position covered by the St. Paul teachers
retirement fund association established under chapter 354A.
Sec. 21. Minnesota Statutes 2000, section 355.01,
subdivision 6, is amended to read:
Subd. 6. [SECRETARY OF HEALTH AND HUMAN SERVICES.] The
term "Secretary of Health, Education, and Welfare Human Services"
means the secretary of the federal Department of Health and
Human Services and includes any individual to whom the Secretary
of Health, Education, and Welfare Human Services has delegated
any functions under the Social Security Act with respect to
coverage under such act of employees of states and their
political subdivisions.
Sec. 22. Minnesota Statutes 2000, section 355.01,
subdivision 8, is amended to read:
Subd. 8. [SOCIAL SECURITY ACT.] The term "Social Security
Act" means the Act of Congress approved August 14, 1935, chapter
531, Statutes at Large, volume 49, page 620, officially cited as
the "Social Security Act," as such act has been and may from
time to time be amended (including the relevant regulations and
requirements issued pursuant thereto).
Sec. 23. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 11. [SPECIAL AUTHORITY OR DISTRICT.] "Special
authority or district" means a municipal housing and
redevelopment authority organized under sections 469.001 to
469.047, a soil and water conservation district organized under
chapter 103C, a port authority organized under sections 469.048
to 469.068, an economic development authority organized under
sections 469.090 to 469.108, or a hospital district organized or
reorganized under sections 447.31 to 447.37.
Sec. 24. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 12. [SPECIAL AUTHORITY OR DISTRICT
EMPLOYEE.] "Special authority or district employee" means an
employee, other than an elected official, of a municipal housing
and redevelopment authority organized under sections 469.001 to
469.047, of a soil and water conservation district organized
under chapter 103C, of a port authority organized under sections
469.048 to 469.068, of an economic development authority
organized under sections 469.090 to 469.108, or of a hospital
district organized or reorganized under sections 447.31 to
447.37.
Sec. 25. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 13. [STATE EMPLOYEE.] "State employee" means an
employee of the state of Minnesota or of a political subdivision
who performs services in a position covered by the general state
employees retirement plan of the Minnesota state retirement
system governed by chapter 352, except any position for which
the compensation is on a fee basis.
Sec. 26. Minnesota Statutes 2000, section 355.01, is
amended by adding a subdivision to read:
Subd. 14. [WAGES.] "Wages" means all remuneration for
employment, including the cash value of all remuneration paid in
any medium other than cash. The term does not include that part
of the remuneration which, even if it were for employment within
the meaning of the Federal Insurance Contributions Act, would
not constitute wages within the meaning of that act.
Sec. 27. Minnesota Statutes 2000, section 355.02, is
amended to read:
355.02 [AGREEMENTS.]
Subdivision 1. [GENERAL AUTHORITY.] (a) The state agency
director, with the approval of the governor, is hereby
authorized to enter into an agreement on behalf of the state
with the federal Secretary of Health, Education, and Welfare
Human Services, consistent with the terms and provisions of this
chapter, as amended, for the purpose of extending the benefits
of the federal old age and, survivors, and disability insurance
system to employees of the state or any political subdivision
thereof with respect to services specified in such the agreement
which constitute "employment," whenever so specifically
authorized by the statutory provisions of this state pertaining
to any coverage group of such employees to which the agreement
may become applicable under the Social Security Act.
Pursuant to such (b) Under this specific authorization the
agreement may contain such those provisions relating to
coverage, benefits, contributions, effective date, modification
and termination of the agreement, administration, and other
appropriate provisions as the state agency director and the
federal Secretary of Health, Education, and Welfare Human
Services shall agree upon, but, except as may be otherwise
required by or under the Social Security Act as to the services
to be covered, such agreement shall must provide in effect that:
(1) benefits will be provided for employees whose services
are covered by the agreement (and their dependents and
survivors) on the same basis as though such those services
constituted employment within the meaning of title II of the
Social Security Act;
(2) the state or other employer will pay to the federal
Secretary of the Treasury, at such time or times as may be
prescribed under the Social Security Act, contributions with
respect to wages, equal to the sum of the taxes which would be
imposed by the Federal Insurance Contributions Act if the
services covered by the agreement constituted employment within
the meaning of that act;
(3) Such the agreement shall be is effective with respect
to services in employment covered by the agreement performed
after a date specified therein but in no event may it be
effective with respect to any such services performed prior to
the first day of the calendar year in which such agreement is
entered into or in which the modification of the agreement
making it applicable to such services, is entered into except
that an agreement or modification entered into prior to January
1, 1960, may be effective with respect to services performed
after December 31, 1955, or after a later date specified in such
agreement or modification; and
(4) all services which constitute employment and are
performed in the employ of the state or any of its political
subdivisions by employees thereof, may be covered by such the
agreement whenever so specifically authorized by the statutory
provisions of this state pertaining to any coverage group of
such employees to which the agreement may become applicable
under the Social Security Act.
Subd. 2. [INTERSTATE INSTRUMENTALITY.] (a) Any
instrumentality jointly created by this state and any other
state or states is hereby authorized, upon the granting of like
authority by such the other state or states, to:
(1) to enter into an agreement with the federal Secretary
of Health, Education, and Welfare Human Services whereby the
benefits of the federal old age and, survivors, and disability
insurance system shall be are extended to employees of such the
instrumentality,;
(2) to require its employees to pay (and for that purpose
to deduct from their wages) contributions equal to the amounts
which they would be required to pay under section 355.03,
subdivision 1, if they were covered by an agreement made
pursuant to under subdivision 1,; and
(3) to make payments to the federal Secretary of the
Treasury in accordance with such that agreement, including
payments from its own funds, and otherwise to comply with such
those agreements. Such
(b) The agreements shall must, to the extent practicable,
be consistent with the terms and provisions of subdivision 1 and
other provisions of this chapter, as amended.
Subd. 3. [GROUPS COVERED BY SOCIAL SECURITY.] The
following groups must be covered by an agreement or a
modification to an agreement between the state agency and the
federal Secretary of Health and Human Services:
(1) constitutional officers;
(2) Duluth teachers;
(3) educational employees;
(4) higher education employees;
(5) hospital employees;
(6) judges;
(7) legislators;
(8) Minneapolis teachers;
(9) public employees;
(10) St. Paul teachers;
(11) special authority or district employees; and
(12) state employees.
Sec. 28. Minnesota Statutes 2000, section 355.03, is
amended to read:
355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.]
Subdivision 1. [EMPLOYEE CONTRIBUTION AMOUNT.] Every
employee of the state, or of any of its political subdivisions,
whose services are covered by the agreement entered into under
section 355.02 shall be required to must pay for the period
of such the coverage, into the contribution fund established by
section 355.04, contributions, with respect to wages, equal to
the amount of the employee's tax which would be imposed by the
Federal Insurance Contributions Act if such those services
constituted employment within the meaning of that act.
Such This liability shall arise arises in consideration of the
employee's retention in the service of the state, or any of its
political subdivisions, or the employee's entry upon such that
service, after the enactment of this chapter, as amended.
Subd. 2. [EMPLOYEE DEDUCTION.] The contribution imposed by
this section shall must be collected by the covered employee's
employer by deducting the amount of the contribution from wages
as and when paid, but. The failure to make such deduction shall
does not relieve the employee from liability for such
contribution.
Subd. 2a. [EMPLOYER CONTRIBUTION.] (a) Employer
contributions that are required under the agreement must be paid
by the applicable employing unit.
(b) Employer contributions on behalf of St. Paul teachers,
Duluth teachers, Minneapolis teachers, or education employees
may be paid from normal school operating funds. Employer
contributions on behalf of state employees must be paid by the
applicable department or agency from its appropriation or other
revenue, in the same proportion as salaries are paid, and must
be charged as an administrative cost of the state governmental
unit.
(c) Employing units may pay the employer contribution from
taxes collected or from other governmental revenue. An
employing unit may include in its tax levy the amount necessary
to pay its social security obligations. If the taxes authorized
to be levied cause the total levy amount to exceed any
limitation on the power of the employing unit to levy taxes, the
unit may still levy the necessary amount. The employing unit,
in the event of a deficit, may issue debt obligations, payable
in not more than two years, in an amount which may cause its
indebtedness to exceed any limitation without holding an
election and may levy taxes to amortize the indebtedness. The
authorized social security expenditures must not be included in
computing the cost of government for purposes of any home rule
charter or other charter.
(d) If the required employer contribution for social
security is increased and, as a result of that increase, there
is insufficient money available to a state governmental unit,
there is appropriated to the state department or agency from the
general fund the amount required to meet the deficiency, based
on certifications from the director to the commissioner of
finance. The transfer of the appropriated amount may only occur
after the commissioner of finance notifies the chair and ranking
minority member of the house committee on ways and means and the
chair and ranking minority member of the senate finance
committee of the amount to be transferred.
(e) For members of the general state employees retirement
plan of the Minnesota state retirement system who are employed
by the state horticultural society, the department of Minnesota
for the disabled American veterans organization, the department
of Minnesota of the veterans of foreign wars organization, the
Minnesota crop improvement association, the Minnesota historical
society, the armory building commission, and the
Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project,
the applicable employing unit must pay the employer contribution
from any revenue source that it has.
Subd. 3. [ADJUSTMENTS; REFUNDS.] If more or less than the
correct amount of the contribution imposed by this section is
paid or deducted with respect to any remuneration, proper
adjustments, or refund if adjustment is impracticable, shall
must be made, without interest, in such manner and at such times
as the state agency shall prescribe director prescribes.
Subd. 4. [DELINQUENT PAYMENTS.] Delinquent payments that
are due under this chapter, with compound interest at the rate
of six percent per annum, may be recovered by legal action in a
court of competent jurisdiction against an employing unit that
is liable for the amount. The director may request that the
delinquent payment and interest amount be deducted from any
other money that is payable to the applicable employing unit by
any department or agency of the state. An action for the
recovery of delinquent payments is not subject to any statutory
provision that would otherwise limit the time within which an
action may be commenced.
Sec. 29. [355.035] [REIMBURSEMENT BY EMPLOYING UNITS.]
An employing unit which employs a member of a covered group
must reimburse the state agency for its pro rata share of the
cost of the administration of the agency with respect to social
security coverage in accordance with the rules of the director
pertaining to this reimbursement.
Sec. 30. [355.036] [REPORTS.]
An employing unit which employs a member of a covered group
must make any reports in the form required and must include the
information that the director requires. An employing unit also
must comply with the reporting requirements that the director or
the federal Secretary of Health and Human Services may from time
to time determine are necessary to ensure the correctness and
verification of relevant information.
Sec. 31. [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.]
The proceeds of the special benefit taxes that are
authorized to be levied for redevelopment purposes under section
469.033, subdivision 6, may be used to defray all or part of the
costs incurred by any housing and redevelopment authority under
this chapter.
Sec. 32. Minnesota Statutes 2000, section 355.05, is
amended to read:
355.05 [RULES.]
The state agency shall make and publish such director may
promulgate those rules, not inconsistent with the provisions of
this chapter, as amended, as it finds necessary or appropriate
to the efficient administration of the functions with which it
is charged under this chapter, as amended.
Sec. 33. Minnesota Statutes 2000, section 355.07, is
amended to read:
355.07 [DECLARATION OF POLICY.]
(a) In order to extend to employees of the state and, its
political subdivisions, and its other governmental employers,
and to the dependents and survivors of such the employees of
those employing units, the basic protection accorded to others
by the old age and, survivors, and disability insurance system
embodied in the Social Security Act, it is hereby declared to be
the policy of the legislature, subject to the limitations of
this chapter, that these steps are taken to provide protection
to employees of the state and its political subdivisions on as
broad a basis as may be authorized by the legislature and is
permitted under the Social Security Act.
(b) It is also the policy of the legislature that the
protection afforded employees in positions covered by a
retirement system on the date an agreement under this chapter is
made applicable to service performed in those positions, or
receiving periodic benefits under the retirement system at that
time, will not be impaired as a result of making the agreement
so applicable or as a result of legislative enactment in
anticipation thereof when combined with the benefits accorded
the employee by the Social Security Act.
(c) To this end, the agreement referred to in section
355.02 shall must not be made applicable to any service
performed in any position covered by a retirement system unless
a referendum is first held by secret ballot in which a majority
of "eligible employees," as defined in section 218(d) (3) of the
Social Security Act, vote in favor thereof, or unless a
retirement system is divided in two divisions or parts, one of
which is composed of positions of members of the system who
desire coverage and one of which is composed of positions of
members of the system who do not desire coverage under section
218(d) (3) of the Social Security Act, in accordance with
subsections (6) and (7) thereof.
(d) Nothing in any provision of this chapter shall
authorize authorizes the extension of the insurance system
established by this chapter, as amended, to service in any
police officer's or firefighter's position or in any position
covered by a retirement system applicable exclusively to
positions in one or more law enforcement or fire fighting units,
agencies or departments.
Sec. 34. Minnesota Statutes 2000, section 355.08, is
amended to read:
355.08 [APPLICATION OF SOCIAL SECURITY ACT.]
The provisions of the Social Security Act, and all acts
amendatory thereof, shall govern relative to employees of the
state and, its political subdivisions, and its other
governmental employers subject to Minnesota Statutes, this
chapter 355, as amended, anything in said this chapter to the
contrary notwithstanding.
Sec. 35. [355.091] [DIVISION OF RETIREMENT PLANS.]
(a) The public retirement plans enumerated in paragraph (b)
must be divided into two parts in accordance with section
218(d)(6)(c) of the Social Security Act, with one part composed
of plan members who did not elect social security coverage in
the applicable referendum and the other part composed of plan
members who did elect social security coverage in the applicable
referendum.
(b) The applicable public retirement plans are:
(1) the elective state officers retirement plan;
(2) the judges retirement plan;
(3) the legislators retirement plan;
(4) the Minneapolis teachers retirement fund association;
(5) the general employees retirement plan of the public
employees retirement association;
(6) the St. Paul teachers retirement fund association; and
(7) the teachers retirement association.
(c) Plan participants and persons electing participation
under section 354B.21 remain members of the teachers retirement
association for purposes of social security coverage only, and
remain covered by the applicable agreement entered into under
section 355.01, but are not members of the teachers retirement
association for any other purpose while employed in covered
employment.
Sec. 36. [REPEALER.]
Minnesota Statutes 2000, sections 355.01, subdivisions 2,
4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16;
355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206;
355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24;
355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283;
355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291;
355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298;
355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41;
355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50;
355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59;
355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625;
355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74;
355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and
355.90, are repealed.
Sec. 37. [EFFECTIVE DATE.]
Sections 1 to 36 are effective on July 1, 2002.
ARTICLE 9
PUBLIC PENSION PLAN
ACTUARIAL ASSUMPTION REVISIONS
Section 1. Minnesota Statutes 2000, 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% 6.0%
correctional state employees
retirement plan 8.5 6.0
state patrol retirement plan 8.5 6.0
legislators retirement plan 8.5 6.0
elective state officers
retirement plan 8.5 6.0
judges retirement plan 8.5 6.0
general public employees
retirement plan 8.5 6.0
public employees police and fire
retirement plan 8.5 6.0
local government correctional
service retirement plan 8.5 6.0
teachers retirement plan 8.5 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 8.5
Minneapolis police relief
association 6.0 6.0
other local Fairmont police relief
associations association 5.0 5.0
Minneapolis fire department
relief association 6.0 6.0
other local salaried firefighters
Virginia fire department
relief associations association 5.0 5.0
local monthly benefit volunteer
firefighters 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 police relief association 4.0
other local Fairmont police relief
associations association 3.5
Minneapolis fire department relief
association 4.0
other local salaried firefighters
Virginia fire department
relief associations association 3.5
(2) modified single rate future salary increase assumption
future salary
plan increase assumption
Minneapolis employees the prior calendar year
retirement plan amount increased first by
1.0198 percent to prior
fiscal year date and
then increased 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 H
state patrol retirement plan assumption 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 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
The select calculation: is,
during the ten-year select period, 0.2 a designated 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. The
designated percent is 0.2 percent for the correctional state
employees retirement plan, the state patrol retirement
plan, the public employees police and fire plan, and the
local government correctional service plan; 0.3 percent
for the general state employees retirement plan, the
general public employees retirement plan, the teachers
retirement plan, the Duluth teachers retirement fund
association, and the St. Paul teachers retirement fund
association; and 0.4 percent for the Minneapolis teachers
retirement fund association.
The ultimate future salary increase assumption is:
age A B C D E F G H
16 6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
6.50 6.90
17 6.90 6.90 11.50 8.15 8.00 7.50 7.25 7.7500
6.50 6.90
18 6.85 6.85 11.50 8.10 8.00 7.50 7.25 7.7500
6.50 6.90
19 6.80 6.80 11.50 8.05 8.00 7.50 7.25 7.7500
6.50 6.90
20 6.75 6.75 11.50 8.00 8.00 7.50 7.25 7.7500
6.40 6.00 6.90 6.50 6.90
21 6.70 6.70 11.50 7.95 8.00 7.50 7.25 7.1454
6.75 6.40 6.00 6.90 6.50 6.90
22 6.65 6.65 11.00 7.90 8.00 7.50 7.25 7.0725
6.75 6.40 6.00 6.90 6.50 6.90
23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544
24 6.66 6.55 10.00 7.80 7.80 7.30 7.20 7.0363
6.75 6.40 6.00 6.80 6.50 6.80
25 6.50 6.50 9.50 7.75 7.70 7.20 7.15 7.0000
6.75 6.40 6.00 6.75 6.50 6.75
26 6.45 6.45 9.20 7.70 7.60 7.10 7.10 7.0000
6.75 6.36 6.00 6.70 6.50 6.70
27 6.40 6.40 8.90 7.65 7.50 7.00 7.05 7.0000
6.75 6.32 6.00 6.65 6.50 6.65
28 6.35 6.35 8.60 7.60 7.40 6.90 7.00 7.0000
6.75 6.28 6.00 6.60 6.50 6.60
29 6.30 6.30 8.30 7.55 7.30 6.80 6.95 7.0000
6.75 6.24 6.00 6.55 6.50 6.55
30 6.25 6.30 8.00 7.50 7.20 6.70 6.90 7.0000
6.75 6.20 6.00 6.50 6.50 6.50
31 6.20 6.25 7.80 7.45 7.10 6.60 6.85 7.0000
6.75 6.16 6.00 6.45 6.50 6.45
32 6.15 6.21 7.60 7.40 7.00 6.50 6.80 7.0000
6.75 6.12 6.00 6.40 6.50 6.40
33 6.10 6.17 7.40 7.30 6.90 6.40 6.75 7.0000
6.75 6.08 6.00 6.35 6.50 6.35
34 6.05 6.09 7.20 7.10 6.80 6.30 6.70 7.0000
6.75 6.04 6.00 6.30 6.50 6.30
35 6.00 6.05 7.00 7.00 6.70 6.20 6.65 7.0000
6.75 6.00 6.00 6.25 6.50 6.25
36 6.95 6.01 6.80 6.85 6.60 6.10 6.60 6.9019
6.75 5.96 6.00 6.20 6.50 6.20
37 5.90 5.97 6.60 6.70 6.50 6.00 6.55 6.8074
6.75 5.92 6.00 6.15 6.50 6.15
38 5.85 5.93 6.40 6.55 6.40 5.90 6.50 6.7125
6.75 5.88 5.90 6.10 6.50 6.10
39 5.80 5.89 6.20 6.40 6.30 5.80 6.40 6.6054
6.75 5.84 5.80 6.05 6.50 6.05
40 5.75 5.85 6.00 6.25 6.20 5.70 6.30 6.5000
6.75 5.80 5.70 6.00 6.50 6.00
41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540
6.75 5.76 5.60 5.90 6.50 5.95
42 5.65 5.77 5.80 5.95 6.00 5.50 6.10 6.2087
6.75 5.72 5.50 5.80 6.50 5.90
43 5.60 5.73 5.70 5.80 5.90 5.45 6.00 6.0622
6.65 5.68 5.40 5.70 6.50 5.85
44 5.55 5.69 5.60 5.65 5.80 5.40 5.90 5.9048
6.55 5.64 5.30 5.60 6.50 5.80
45 5.50 5.65 5.50 5.50 5.70 5.35 5.80 5.7500
6.45 5.60 5.20 5.50 6.50 5.75
46 5.45 5.62 5.45 5.45 5.60 5.30 5.70 5.6940
6.35 5.56 5.10 5.40 6.40 5.70
47 5.40 5.59 5.40 5.40 5.50 5.25 5.65 5.6375
6.25 5.52 5.00 5.30 6.30
48 5.35 5.56 5.35 5.35 5.45 5.20 5.60 5.5822
6.15 5.48 5.00 5.20 6.20
49 5.30 5.53 5.30 5.30 5.40 5.15 5.55 5.5404
6.05 5.44 5.00 5.10 6.10
50 5.25 5.50 5.25 5.25 5.35 5.10 5.50 5.5000
5.95 5.40 5.00 5.00 6.00
51 5.20 5.45 5.25 5.20 5.30 5.05 5.45 5.4384
5.85 5.36 5.00 5.00 5.90
52 5.15 5.40 5.25 5.15 5.25 5.00 5.40 5.3776
5.75 5.32 5.00 5.00 5.80
53 5.10 5.35 5.25 5.10 5.25 5.00 5.35 5.3167
5.65 5.28 5.00 5.00 5.70
54 5.05 5.30 5.25 5.05 5.25 5.00 5.30 5.2826
5.55 5.24 5.00 5.00 5.60
55 5.00 5.25 5.25 5.00 5.25 5.00 5.25 5.2500
5.45 5.20 5.00 5.50
56 5.00 5.20 5.25 5.00 5.25 5.00 5.25 5.2500
5.35 5.16 5.00 5.40 5.20
57 5.00 5.15 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.12 5.00 5.30 5.15
58 5.00 5.10 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.08 5.10 5.00 5.20 5.10
59 5.00 5.05 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.04 5.20 5.00 5.10 5.05
60 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.30 5.00 5.00
61 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.40 5.00 5.00
62 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.50 5.00 5.00
63 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.60 5.00 5.00
64 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
65 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
66 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
67 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
68 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
69 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
70 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
71 5.00 5.00 5.00
5.25 5.70
(c) The actuarial valuation must use the applicable
following payroll growth assumption for calculating the
amortization requirement for the unfunded actuarial accrued
liability where the amortization retirement is calculated as a
level percentage of an increasing payroll:
payroll growth
plan assumption
general state employees retirement plan 5.00%
correctional state employees retirement plan 5.00
state patrol retirement plan 5.00
legislators retirement plan 5.00
elective state officers retirement plan 5.00
judges retirement plan 5.00
general public employees retirement plan 6.00
public employees police and fire
retirement plan 6.00
local government correctional service
retirement plan 6.00
teachers retirement plan 5.00
Duluth teachers retirement plan 5.00
Minneapolis teachers retirement plan 5.00
St. Paul teachers retirement plan 5.00
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on June 30, 2002.
ARTICLE 10
AUTHORIZATION OF ADDITIONAL
SUPPLEMENTAL RETIREMENT PLANS
Section 1. Minnesota Statutes 2001 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
board of trustees of the Minnesota state colleges and
universities and covered under the higher education 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
contribution made to any investment eligible under section
403(b) of the Internal Revenue Code, 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;
(6) for personnel employed by the board of trustees of the
Minnesota state colleges and universities 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
$2,700 a year for each employee;
(7) to a supplemental plan or to a governmental trust to
save for postretirement health care expenses qualified for
tax-preferred treatment under the Internal Revenue Code, if
provided for in a personnel policy or in the collective
bargaining agreement of a public employer with the exclusive
representative of the covered employees in an appropriate unit;
or
(8) to the laborer's national industrial pension fund for
the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by
that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 per year per
employee;
(9) to the plumbers' and pipefitters' national pension fund
for the employees of a governmental subdivision who are covered
by a collective bargaining agreement that provides for coverage
by that fund and that sets forth a fund contribution rate, but
not to exceed an employer contribution of $2,000 per year per
employee;
(10) to the international union of operating engineers
pension fund for the employees of a governmental subdivision who
are covered by a collective bargaining agreement that provides
for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of
$2,000 per year per employee; or
(11) to a supplemental plan organized and operated under
the federal Internal Revenue Code, as amended, that is wholly
and solely funded by the employee's accumulated sick leave,
accumulated vacation leave, and accumulated severance pay.
Sec. 2. Minnesota Statutes 2000, section 356.25, is
amended to read:
356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS;
EXCLUSIONS.]
Notwithstanding any other provision of law or charter, no
city, county, public agency or instrumentality, or other
political subdivision shall, after August 1, 1975, is required
or permitted to establish for any of its employees any local
pension plan or fund financed in whole or in part from public
funds, other than:
(1) a supplemental pension or deferred compensation plan
authorized under section 356.24; or
(2) a volunteer firefighter's relief association
established pursuant to under chapter 424A and governed by
sections 69.771 to 69.776.
Sec. 3. [RATIFICATION AND VALIDATION OF CERTAIN PAST
ACTIONS.]
Any supplemental pension plan that is organized and
operated under section 401(a) of the federal Internal Revenue
Code, as amended, that is wholly and solely funded by an
employee's accumulated sick leave, accumulated vacation leave,
and accumulated severance pay, and that was established before
the effective date of this act and any contributions to the plan
that may be characterized as public funds within the meaning of
Minnesota Statutes, section 356.24, are hereby ratified and
validated.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective on the day following final
enactment.
ARTICLE 11
GENERAL RETIREMENT LAW
REORGANIZATION AND RECODIFICATION
PUBLIC RETIREMENT PLAN PURPOSE
Section 1. Minnesota Statutes 2000, section 356.001, is
amended to read:
356.001 [PURPOSE OF PUBLIC PLANS.]
Subdivision 1. [EXCLUSIVE BENEFIT OF MEMBERS AND
BENEFICIARIES.] (a) The public plans and funds specified in
subdivision 4 are established to provide for the retirement of
their members and to provide funds for the beneficiaries of
members in the event of death of a member.
(b) The public plans and funds are established and shall
must be maintained for the exclusive benefit of the members and
the beneficiaries of the members. Except as provided in
subdivisions 2 and 3, no part of the moneys of the plans and
funds shall may revert to the plan or fund or be used for or
diverted to purposes other than the exclusive benefit of the
members or their beneficiaries.
Subd. 2. [ALLOWABLE EXPENSES.] The necessary, reasonable,
and direct expenses of maintaining, protecting, and
administering the public plan or fund, as authorized in the laws
governing the plan or fund, shall must be considered as
expenditures for the exclusive benefit of the members or their
beneficiaries.
Subd. 3. [EFFECT OF AMENDMENTS OR TERMINATION.] (a) If a
public plan or fund as defined in subdivision 4 is terminated or
the plan or fund provisions are amended, no part of the moneys
held in the plan or fund shall may be used for or diverted to
any purpose other than the exclusive benefit of the members or
their beneficiaries, except as provided in this subdivision.
(b) If a plan or fund is terminated, all affected members
have a nonforfeitable interest in their benefits that were
accrued and funded to date. The value of the accrued benefits
to be credited to the account of each affected member shall must
be calculated as of the date of termination and the funding
ratio of the plan or fund must be applied to the accrued benefit
of each affected member.
(c) The board of trustees of the plan or fund shall then,
as soon as administratively feasible following the termination,
pay each eligible member or beneficiary on behalf of a member
the amount in the member's account in a lump sum. In the case
of a member whose whereabouts is unknown, the board shall notify
the member at the last known address by certified mail with
return receipt requested advising the member of the member's
right to a pending distribution. If the member cannot be
located in this manner, the board shall establish a custodial
account for the member's benefit in a federally insured bank,
savings association, or credit union in which the member's
account balance shall must be deposited. If the board receives
proof of death of a member that is satisfactory to the board,
the account balance shall must be paid to the beneficiary of the
member.
Subd. 4. [COVERED PLANS AND FUNDS.] This section applies
to all public pension and retirement plans and funds established
pursuant to under the laws of the state of Minnesota that
receive contributions from moneys derived from taxation.
Subd. 5. [CONSTRUCTION.] Nothing contained in this section
shall may be construed to authorize, or otherwise imply, a
legislative policy or intent favoring the termination of any
plan or fund to which this section applies.
PUBLIC PENSION PLAN ACTUARIAL, FINANCIAL,
AND INVESTMENT REPORTING
Sec. 2. Minnesota Statutes 2000, section 356.20,
subdivision 1, is amended to read:
Subdivision 1. [REPORT REQUIRED.] (a) The governing or
managing board or administrative officials of the public pension
and retirement funds enumerated in subdivision 2 shall annually
prepare and file a financial report following the close of each
fiscal year.
(b) This requirement shall also apply applies to any plan
or fund which may be a successor to any organization so
enumerated or to any newly formed retirement plan, 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.
(c) The report shall must be prepared under the supervision
and at the direction of the management of each fund and shall
must be signed by the presiding officer of the managing board of
the fund and the chief administrative official of the fund.
Sec. 3. Minnesota Statutes 2000, section 356.20,
subdivision 2, is amended to read:
Subd. 2. [COVERED PUBLIC PENSION PLANS AND FUNDS.] This
section applies to the following public pension plans:
(1) the general state employees retirement fund. plan of
the Minnesota state retirement system;
(2) the general employees retirement plan of the public
employees retirement fund. association;
(3) the teachers retirement association.;
(4) the state patrol retirement fund. plan;
(5) the Minneapolis teachers retirement fund association.;
(6) the St. Paul teachers retirement fund association.;
(7) the Duluth teachers retirement fund association.;
(8) the Minneapolis employees retirement fund.;
(9) the University of Minnesota faculty retirement plan.;
(10) the University of Minnesota faculty supplemental
retirement plan.;
(11) the judges retirement fund.;
(12) Any a police or firefighter's relief association
enumerated specified or described in section 69.77, subdivision
1a, or 69.771, subdivision 1.;
(13) the public employees police and fire fund. plan of the
public employees retirement association;
(14) the correctional state employees retirement plan of
the Minnesota state retirement system correctional officers
retirement fund.; and
(15) public employees the local government correctional
service retirement plan of the public employees retirement
association.
Sec. 4. Minnesota Statutes 2000, section 356.20,
subdivision 3, is amended to read:
Subd. 3. [FILING REQUIREMENT.] The financial report is a
public record. A copy of the report or a synopsis of the report
containing the information required by this section shall must
be distributed annually to each member of the fund and to the
governing body of each governmental subdivision of the state
which makes employers contributions thereto or in whose behalf
taxes are levied for the employers' contribution. A signed copy
of the report shall must be delivered to the executive director
of the legislative commission on pensions and retirement and to
the legislative reference library not later than six months
after the close of each fiscal year or one month following the
completion and delivery to the retirement fund of the actuarial
valuation report of the fund by the actuary retained by the
legislative commission on pensions and retirement, if
applicable, whichever is later.
Sec. 5. Minnesota Statutes 2000, section 356.20,
subdivision 4, is amended to read:
Subd. 4. [CONTENTS OF FINANCIAL REPORT.] (a) The financial
report required by this section must contain financial
statements and disclosures that indicate the financial
operations and position of the retirement plan and fund. The
report must conform with generally accepted governmental
accounting principles, applied on a consistent basis. The
report must be audited. The report must include, as part of its
exhibits or footnotes, an actuarial disclosure item based on the
actuarial valuation calculations prepared by the
commission-retained actuary or by the actuary retained by the
retirement fund or plan, if applicable, according to applicable
actuarial requirements enumerated in section 356.215, and
specified in the most recent standards for actuarial work
adopted by the legislative commission on pensions and
retirement. The accrued assets, the accrued liabilities,
including accrued reserves, and the unfunded actuarial accrued
liability of the fund or plan must be disclosed. The disclosure
item must contain a declaration by the actuary retained by the
legislative commission on pensions and retirement or the actuary
retained by the fund or plan, whichever applies, specifying that
the required reserves for any retirement, disability, or
survivor benefits provided under a benefit formula are computed
in accordance with the entry age actuarial cost method and with
the most recent applicable standards for actuarial work adopted
by the legislative commission on pensions and retirement.
(a) (b) Assets of the fund or plan contained in the
disclosure item must include the following statement of the
actuarial value of current assets as defined in section 356.215,
subdivision 1:
Value Value
at cost at market
Cash, cash equivalents, and
short-term securities ......... .........
Accounts receivable ......... .........
Accrued investment income ......... .........
Fixed income investments ......... .........
Equity investments other
than real estate ......... .........
Real estate investments ......... .........
Equipment ......... .........
Equity in the Minnesota
postretirement investment
fund ......... .........
Other ......... .........
Total assets
Value at cost .........
Value at market .........
Value of current assets .........
(b) (c) The unfunded actuarial accrued liability of the
fund or plan contained in the disclosure item must include the
following measures of unfunded actuarial accrued liability,
using the value of current assets:
(1) unfunded actuarial accrued liability, determined by
subtracting the current assets and the present value of future
normal costs from the total current and expected future benefit
obligations; and
(2) unfunded pension benefit obligation, determined by
subtracting the current assets from the actuarial present value
of credited projected benefits.
If the current assets of the fund or plan exceed the
actuarial accrued liabilities, the excess must be disclosed and
indicated as a surplus.
(c) (d) The pension benefit obligations schedule included
in the disclosure must contain the following information on the
benefit obligations:
(1) the pension benefit obligation, determined as the
actuarial present value of credited projected benefits on
account of service rendered to date, separately identified as
follows:
(i) for annuitants;
retirement annuities;
disability benefits;
surviving spouse and child benefits;
(ii) for former members without vested rights;
(iii) for deferred annuitants' benefits, including
any augmentation;
(iv) for active employees;
accumulated employee contributions,
including allocated investment income;
employer-financed benefits vested;
employer-financed benefits nonvested;
total pension benefit obligation; and
(2) if there are additional benefits not appropriately
covered by the foregoing items of benefit obligations, a
separate identification of the obligation.
(d) (e) Any additional statements or exhibits or more
detailed or subdivided itemization of a disclosure item that
will enable the management of the fund to portray a true
interpretation of the fund's financial condition must be
included in the additional statements or exhibits.
Sec. 6. Minnesota Statutes 2000, section 356.20,
subdivision 4a, is amended to read:
Subd. 4a. [FINANCIAL REPORT FOR POLICE OR FIREFIGHTERS
RELIEF ASSOCIATION.] For any police or firefighter's relief
association referred to in subdivision 2, clause (12), a
financial report duly filed pursuant to and meeting the
requirements of section 69.051 shall must be deemed to have met
the requirements of subdivision 4.
Sec. 7. Minnesota Statutes 2000, section 356.215, as
amended by Laws 2001, First Special Session chapter 10, article
11, section 18, is amended to read:
356.215 [ACTUARIAL VALUATIONS AND EXPERIENCE STUDIES.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of
sections 3.85 and 356.20 to 356.23, each of the terms in the
following paragraphs have the meaning given.
(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.
(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.
(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 the actuarial present value which is
allocated to the valuation year to be the normal cost and the
portion of this the 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.
(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.
(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) (2) 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) (3) 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.
(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.
(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.
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 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 or plan
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,
plan, 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 to which section 356.216 applies.
Subd. 2a. [PROJECTION VALUATION REQUIREMENTS.] (a) A
quadrennial projection valuation required authorized under
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.
(b) In consultation with 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 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.
Subd. 3. [REPORTS.] (a) The actuarial valuations required
annually must be made as of the beginning of each fiscal year.
(b) Two copies of the valuation must be delivered to the
executive director of the legislative commission on pensions and
retirement, to the commissioner of finance and to the
legislative reference library, not later than the first day of
the sixth month occurring after the end of the previous fiscal
year.
(c) Two copies of a quadrennial experience study must be
filed with the executive director of the legislative commission
on pensions and retirement, with the commissioner of finance,
and with the legislative reference library, not later than the
first day of the 11th month occurring after the end of the last
fiscal year of the four-year period which the experience study
covers.
(d) For actuarial valuations and experience studies
prepared at the direction of the legislative commission on
pensions and retirement, two copies of the document must be
delivered to the governing or managing board or administrative
officials of the applicable public pension and retirement fund
or plan.
Subd. 4. [ACTUARIAL VALUATION; CONTENTS.] (a) The
actuarial valuation must be made in conformity with the
requirements of the definition contained in subdivision 1 and
the most recent standards for actuarial work adopted by the
legislative commission on pensions and retirement.
(b) The actuarial valuation must measure all aspects of the
benefit plan of the fund in accordance with changes in benefit
plans, if any, and salaries reasonably anticipated to be in
force during the ensuing fiscal year. The actuarial valuation
must be prepared in accordance with the entry age actuarial cost
method. The actuarial valuation required under this section
must include the information required in subdivisions 4a 5 to 4k
15.
Subd. 4a 5. [NORMAL COST.] For a fund providing benefits
in whole or in part under a defined benefit plan, the actuarial
valuation must indicate the level normal cost of the benefits
provided by under the laws governing the fund as of the date of
the valuation, calculated in accordance with the entry age
actuarial cost method. The normal cost must be expressed as a
level percentage of the present value of future payrolls of the
active participants of the fund as of the date of the valuation.
Subd. 4b 6. [ACCRUED LIABILITY.] For a fund providing
benefits under a defined benefit plan, the actuarial valuation
must contain an exhibit indicating the actuarial accrued
liabilities of the fund. This figure is the present value of
future benefits, reduced by the present value of future normal
costs, calculated in accordance with the entry age actuarial
cost method.
Subd. 4c 7. [DEFINED CONTRIBUTION PLAN ACCUMULATIONS.] For
each fund providing benefits under the a money purchase or
defined contribution plan, the actuarial valuation shall must
contain an exhibit indicating the member contributions
accumulated at interest, as apportioned to members accounts, to
the date of the valuation. These accumulations shall must be
separately tabulated in a manner which properly reflects any
differences in money purchase or defined contribution annuity
rates which may apply.
Subd. 4d 8. [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% 6.0%
correctional state employees
retirement plan 8.5 6.0
state patrol retirement plan 8.5 6.0
legislators retirement plan 8.5 6.0
elective state officers
retirement plan 8.5 6.0
judges retirement plan 8.5 6.0
general public employees
retirement plan 8.5 6.0
public employees police and fire
retirement plan 8.5 6.0
local government correctional
service retirement plan 8.5 6.0
teachers retirement plan 8.5 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 8.5
Minneapolis police relief
association 6.0 6.0
other local Fairmont police relief
associations association 5.0 5.0
Minneapolis fire department
relief association 6.0 6.0
other local salaried firefighters
Virginia fire department
relief associations association 5.0 5.0
local monthly benefit volunteer
firefighters relief associations 5.0 5.0
(b) The actuarial valuation must use the applicable
following single rate future salary increase assumption, the
applicable following modified 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 police relief association 4.0
other local Fairmont police relief
associations association 3.5
Minneapolis fire department relief
association 4.0
other local salaried firefighters
Virginia fire department
relief associations association 3.5
(2) modified single rate future salary increase assumption
future salary
plan increase assumption
Minneapolis employees the prior calendar year
retirement plan amount increased first by
1.0198 percent to prior
fiscal year date and
then increased 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 H
state patrol retirement plan assumption 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 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
The select calculation is:
during the ten-year select period, 0.2 a designated 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. The
designated percent is 0.2 percent for the correctional state
employees retirement plan, the state patrol retirement
plan, the public employees police and fire plan, and the
local government correctional service plan; 0.3 percent
for the general state employees retirement plan, the
general public employees retirement plan, the teachers
retirement plan, the Duluth teachers retirement fund
association, and the St. Paul teachers retirement fund
association; and 0.4 percent for the Minneapolis teachers
retirement fund association.
The ultimate future salary increase assumption is:
age A B C D E F G H
16 6.95% 6.95% 11.50% 8.20% 8.00% 7.50% 7.25% 7.7500
6.50 6.90
17 6.90 6.90 11.50 8.15 8.00 7.50 7.25 7.7500
6.50 6.90
18 6.85 6.85 11.50 8.10 8.00 7.50 7.25 7.7500
6.50 6.90
19 6.80 6.80 11.50 8.05 8.00 7.50 7.25 7.7500
6.50 6.90
20 6.75 6.75 11.50 8.00 8.00 7.50 7.25 7.7500
6.40 6.00 6.90 6.50 6.90
21 6.70 6.70 11.50 7.95 8.00 7.50 7.25 7.1454
6.75 6.40 6.00 6.90 6.50 6.90
22 6.65 6.65 11.00 7.90 8.00 7.50 7.25 7.0725
6.75 6.40 6.00 6.90 6.50 6.90
23 6.75 6.40 10.50 6.00 6.85 6.50 6.85 7.0544
24 6.66 6.55 10.00 7.80 7.80 7.30 7.20 7.0363
6.75 6.40 6.00 6.80 6.50 6.80
25 6.50 6.50 9.50 7.75 7.70 7.20 7.15 7.0000
6.75 6.40 6.00 6.75 6.50 6.75
26 6.45 6.45 9.20 7.70 7.60 7.10 7.10 7.0000
6.75 6.36 6.00 6.70 6.50 6.70
27 6.40 6.40 8.90 7.65 7.50 7.00 7.05 7.0000
6.75 6.32 6.00 6.65 6.50 6.65
28 6.35 6.35 8.60 7.60 7.40 6.90 7.00 7.0000
6.75 6.28 6.00 6.60 6.50 6.60
29 6.30 6.30 8.30 7.55 7.30 6.80 6.95 7.0000
6.75 6.24 6.00 6.55 6.50 6.55
30 6.25 6.30 8.00 7.50 7.20 6.70 6.90 7.0000
6.75 6.20 6.00 6.50 6.50 6.50
31 6.20 6.25 7.80 7.45 7.10 6.60 6.85 7.0000
6.75 6.16 6.00 6.45 6.50 6.45
32 6.15 6.21 7.60 7.40 7.00 6.50 6.80 7.0000
6.75 6.12 6.00 6.40 6.50 6.40
33 6.10 6.17 7.40 7.30 6.90 6.40 6.75 7.0000
6.75 6.08 6.00 6.35 6.50 6.35
34 6.05 6.09 7.20 7.10 6.80 6.30 6.70 7.0000
6.75 6.04 6.00 6.30 6.50 6.30
35 6.00 6.05 7.00 7.00 6.70 6.20 6.65 7.0000
6.75 6.00 6.00 6.25 6.50 6.25
36 6.95 6.01 6.80 6.85 6.60 6.10 6.60 6.9019
6.75 5.96 6.00 6.20 6.50 6.20
37 5.90 5.97 6.60 6.70 6.50 6.00 6.55 6.8074
6.75 5.92 6.00 6.15 6.50 6.15
38 5.85 5.93 6.40 6.55 6.40 5.90 6.50 6.7125
6.75 5.88 5.90 6.10 6.50 6.10
39 5.80 5.89 6.20 6.40 6.30 5.80 6.40 6.6054
6.75 5.84 5.80 6.05 6.50 6.05
40 5.75 5.85 6.00 6.25 6.20 5.70 6.30 6.5000
6.75 5.80 5.70 6.00 6.50 6.00
41 5.70 5.81 5.90 6.10 6.10 5.60 6.20 6.3540
6.75 5.76 5.60 5.90 6.50 5.95
42 5.65 5.77 5.80 5.95 6.00 5.50 6.10 6.2087
6.75 5.72 5.50 5.80 6.50 5.90
43 5.60 5.73 5.70 5.80 5.90 5.45 6.00 6.0622
6.65 5.68 5.40 5.70 6.50 5.85
44 5.55 5.69 5.60 5.65 5.80 5.40 5.90 5.9048
6.55 5.64 5.30 5.60 6.50 5.80
45 5.50 5.65 5.50 5.50 5.70 5.35 5.80 5.7500
6.45 5.60 5.20 5.50 6.50 5.75
46 5.45 5.62 5.45 5.45 5.60 5.30 5.70 5.6940
6.35 5.56 5.10 5.40 6.40 5.70
47 5.40 5.59 5.40 5.40 5.50 5.25 5.65 5.6375
6.25 5.52 5.00 5.30 6.30
48 5.35 5.56 5.35 5.35 5.45 5.20 5.60 5.5822
6.15 5.48 5.00 5.20 6.20
49 5.30 5.53 5.30 5.30 5.40 5.15 5.55 5.5404
6.05 5.44 5.00 5.10 6.10
50 5.25 5.50 5.25 5.25 5.35 5.10 5.50 5.5000
5.95 5.40 5.00 5.00 6.00
51 5.20 5.45 5.25 5.20 5.30 5.05 5.45 5.4384
5.85 5.36 5.00 5.00 5.90
52 5.15 5.40 5.25 5.15 5.25 5.00 5.40 5.3776
5.75 5.32 5.00 5.00 5.80
53 5.10 5.35 5.25 5.10 5.25 5.00 5.35 5.3167
5.65 5.28 5.00 5.00 5.70
54 5.05 5.30 5.25 5.05 5.25 5.00 5.30 5.2826
5.55 5.24 5.00 5.00 5.60
55 5.00 5.25 5.25 5.00 5.25 5.00 5.25 5.2500
5.45 5.20 5.00 5.50
56 5.00 5.20 5.25 5.00 5.25 5.00 5.25 5.2500
5.35 5.16 5.00 5.40 5.20
57 5.00 5.15 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.12 5.00 5.30 5.15
58 5.00 5.10 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.08 5.10 5.00 5.20 5.10
59 5.00 5.05 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.04 5.20 5.00 5.10 5.05
60 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.30 5.00 5.00
61 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.40 5.00 5.00
62 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.50 5.00 5.00
63 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.60 5.00 5.00
64 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
65 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
66 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
67 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
68 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
69 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
70 5.00 5.00 5.25 5.00 5.25 5.00 5.25 5.2500
5.25 5.70 5.00 5.00
71 5.00 5.00 5.00
5.25 5.70
(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
Subd. 4e 9. [OTHER ASSUMPTIONS.] The actuarial valuation
must use assumptions concerning mortality, disability,
retirement, withdrawal, retirement age, and any other relevant
demographic or economic factor. These assumptions must be set
at levels consistent with those determined in the most recent
quadrennial experience study completed under subdivision 5 16,
if required, or representative of the best estimate of future
experience, if a quadrennial experience study is not required.
The actuarial valuation must contain an exhibit indicating any
actuarial assumptions used in preparing the valuation report.
Subd. 4f 10. [PUBLIC SECTOR ACCOUNTING DISCLOSURE
INFORMATION.] The actuarial valuation must contain those
actuarial calculations that are necessary to allow the
retirement plan administration or participating employing units
to prepare the pension-related portions of annual financial
reporting that meet generally accepted accounting principles for
the public sector.
Subd. 4g 11. [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 and the public employees retirement association
general plan, 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 itself or 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 is the first
actuarial valuation date occurring after June 1, 2020.
(c) For any fund or plan other than the Minneapolis
employees retirement fund and the public employees retirement
association general plan, 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 itself
or 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 8 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 8 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 8 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 general employees retirement plan of the public
employees retirement association general plan, the established
date for full funding is June 30, 2031.
(f) For the 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 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.
Subd. 4h 12. [ACTUARIAL GAINS AND LOSSES.] The actuarial
valuation must contain an exhibit consisting of an analysis by
the actuary explaining the net increase or decrease in the
unfunded actuarial accrued liability since the last valuation.
The explanation must subdivide the net increase or decrease in
the unfunded actuarial accrued liability into at least the
following parts:
(a) (1) increases or decreases in the unfunded actuarial
accrued liability because of changes in benefits;
(b) (2) increases and decreases in the unfunded actuarial
accrued liability because of changes in actuarial assumptions;
(c) (3) increases or decreases in the unfunded actuarial
accrued liability attributable to actuarial gains or losses
resulting from any experience deviations from the assumptions on
which the valuation is based, as follows:
(i) actual investment earnings;
(ii) actual postretirement mortality rates;
(iii) actual salary increase rates; and
(iv) the remainder of the increase or decrease not
attributable to any separate source;
(d) (4) increases or decreases in unfunded actuarial
accrued liability because of other reasons, including the effect
of any amortization contribution paid or additional amortization
contribution previously calculated but unpaid; and
(e) (5) increases or decreases in unfunded actuarial
accrued liability because of changes in eligibility requirements
or groups included in the membership of the fund.
Subd. 4i 13. [MEMBERSHIP TABULATION.] (a) The actuarial
valuation must contain a tabulation of active membership and
annuitants in the fund. If the membership of a fund is under
more than one general benefit program, a separate tabulation
must be made for each general benefit program.
(b) The tabulations must be prepared by the administration
of the pension fund and must contain the following information:
(1) Active members Number
As of last valuation date
New entrants
Total
Separations from active service
Refund of contributions
Separation with deferred annuity
Separation with neither refund
nor deferred annuity
Disability
Death
Retirement with service annuity
Total separations
As of current valuation date
(2) Annuitants Number
As of last valuation date
New entrants
Total
Terminations
Deaths
Other
Total terminations
As of current valuation date
(c) The tabulation required under paragraph (b), clause
(2), must be made separately for each of the following classes
of benefit recipients:
(1) service retirement annuitants;
(2) disability benefit recipients;
(3) survivor benefit recipients; and
(4) deferred annuitants.
Subd. 4j 14. [ADMINISTRATIVE EXPENSES.] (a) The actuarial
valuation must indicate the administrative expenses of the fund,
expressed both in dollars and as a percentage of covered payroll.
(b) Administrative expenses are the costs incurred by the
retirement plans in the course of operating the plan, excluding
investment expenses. Investment expenses include all expenses
incurred for the retention of professional external investment
managers and professional investment consultants, custodian bank
fees, investment transaction costs, and the costs incurred by
the retirement plans to manage investment portfolios or assets
internally. Investment expenses must be deducted from the
investment return used in the actuarial valuation, and must not
be included in administrative expenses when calculating the
allowance for expenses.
Subd. 4k 15. [BENEFIT PLAN SUMMARY.] The actuarial
valuation must contain a summary of the principal provisions of
the benefit plan upon which the valuation is based.
Subd. 5 16. [QUADRENNIAL EXPERIENCE STUDY; CONTENTS.] A
quadrennial experience study, if required, must contain an
actuarial analysis by the approved actuary of the experience of
the fund and a comparison of the experience with the actuarial
assumptions on which the most recent actuarial valuation of the
retirement fund was based.
Subd. 6 17. [ACTUARIAL SERVICES BY APPROVED ACTUARIES.]
(a) The actuarial valuation or quadrennial experience study must
be made and any actuarial consulting services for a retirement
fund or plan must be provided by an approved actuary. The
actuarial valuation or quadrennial experience study must include
a signed written declaration that it has been prepared according
to sections 356.20 to 356.23 and according to the most recent
standards for actuarial work adopted by the legislative
commission on pensions and retirement.
(b) Actuarial valuations, or experience studies prepared by
an approved actuary retained by a retirement fund or plan must
be submitted to the legislative commission on pensions and
retirement within ten days of the submission of the document to
the retirement fund or plan.
Subd. 7 18. [ESTABLISHMENT OF ACTUARIAL ASSUMPTIONS.] (a)
The actuarial assumptions used for the preparation of actuarial
valuations under this section that are other than those set
forth in this section may be changed only with the approval of
the legislative commission on pensions and retirement.
(b) A change in the applicable actuarial assumptions may be
proposed by the governing board of the applicable pension fund
or relief association, by the actuary retained by the
legislative commission on pensions and retirement, by the
actuarial advisor to a pension fund governed by chapter 352,
353, 354, or 354A, or by the actuary retained by a local police
or firefighters relief association governed by sections 69.77 or
69.771 to 69.776, if one is retained.
Sec. 8. Minnesota Statutes 2000, section 356.216, is
amended to read:
356.216 [CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE
AND FIRE FUNDS.]
(a) The provisions of section 356.215 governing that govern
the contents of actuarial valuations shall must apply to any
local police or fire pension fund or relief association required
to make an actuarial report under this section, except as
follows:
(1) in calculating normal cost and other requirements, if
required to be expressed as a level percentage of covered
payroll, the salaries used in computing covered payroll shall
must be the maximum rate of salary from on which retirement and
survivorship credits and amounts of benefits are determined and
from which any member contributions are calculated and deducted;
(2) in lieu of the amortization date specified in section
356.215, subdivision 4g 11, the appropriate amortization target
date specified in section 69.77, subdivision 2b, or 69.773,
subdivision 4, clause (c), shall must be used in calculating any
required amortization contribution;
(3) in addition to the tabulation of active members and
annuitants provided for in section 356.215, subdivision 4i 13,
the member contributions for active members for the calendar
year and the prospective annual retirement annuities under the
benefit plan for active members shall must be reported;
(4) actuarial valuations required pursuant to under section
69.773, subdivision 2, shall must be made at least every four
years and actuarial valuations required pursuant to under
section 69.77 shall be made annually; and
(5) the actuarial balance sheet showing accrued assets
valued at market value if the actuarial valuation is required to
be prepared at least every four years or valued as current
assets under section 356.215, subdivision 1, clause (6), or
paragraph (b), whichever applies, if the actuarial valuation is
required to be prepared annually, actuarial accrued liabilities,
and the unfunded actuarial accrued liability shall must include
the following required reserves:
(a) (i) For active members
1. Retirement benefits
2. Disability benefits
3. Refund liability due to death or withdrawal
4. Survivors' benefits
(b) (ii) For deferred annuitants' benefits
(c) (iii) For former members without vested rights
(d) (iv) For annuitants
1. Retirement annuities
2. Disability annuities
3. Surviving spouses' annuities
4. Surviving children's annuities
In addition to those required reserves, separate items
shall must be shown for additional benefits, if any, which may
not be appropriately included in the reserves listed above.; and
(6) actuarial valuations shall be are due by the first day
of the seventh month after the end of the fiscal year which the
actuarial valuation covers.
(b) For a the Minneapolis firefighters relief association
or the Minneapolis police relief association in a city of the
first class with a population of more than 300,000, the
following provisions additionally apply:
(1) in calculating the actuarial balance sheet, unfunded
actuarial accrued liability, and amortization contribution of
the relief association, "current assets" means the value of all
assets at cost, including realized capital gains and losses,
plus or minus, whichever applies, the average value of total
unrealized capital gains or losses for the most recent
three-year period ending with the end of the plan year
immediately preceding the actuarial valuation report
transmission date; and
(2) in calculating the applicable portions of the actuarial
valuation, an annual preretirement interest assumption of six
percent, an annual postretirement interest assumption of six
percent, and an annual salary increase assumption of four
percent must be used.
Sec. 9. Minnesota Statutes 2000, section 356.217, is
amended to read:
356.217 [MODIFICATIONS IN ACTUARIAL SERVICES.]
(a) The cost of any requested benefit projections prepared
by the commission-retained actuary relating to the Minnesota
postretirement investment fund for at the request of the state
board of investment is payable by the state board of investment.
(b) Actuarial valuations under section 356.215, for July 1,
1991, and thereafter, are not required to have an individual
commentary section. The commentary section, if omitted from the
individual plan actuarial valuation valuations, must be included
in an appropriate generalized format as part of the report to
the legislature under section 3.85, subdivision 11.
(c) Actuarial valuations under section 356.215, for July 1,
1991, and thereafter, are not required to contain separate
actuarial valuation results for basic and coordinated programs
unless each program has a membership of at least ten percent of
the total membership of the fund. Actuarial valuations under
section 356.215, for July 1, 1991, and thereafter, are not
required to contain cash flow forecasts.
(d) Actuarial valuations of the public employees police and
fire fund local consolidation accounts for July 1, 1991, and
thereafter, are not required to contain separate tabulations or
summaries of active member, service retirement, disability
retirement, and survivor data for each local consolidation
account.
(e) The commission-retained actuary is:
(1) required to publish experience findings for those
retirement plans for which experience findings are required only
on a quadrennial basis for the four-year period ending June 30,
1992, and every four years thereafter;
(2) not required to prepare a separate experience analysis
or publish separate experience findings for basic and
coordinated programs if separate actuarial valuation results for
the programs are not required; and
(3) not required to calculate investment rate of return
experience results on any basis other than current asset value
as defined in section 356.215, subdivision 1, clause
(6) paragraph (f).
Sec. 10. Minnesota Statutes 2000, section 356.219, is
amended to read:
356.219 [DISCLOSURE OF PUBLIC PENSION PLAN INVESTMENT
PORTFOLIO AND PERFORMANCE INFORMATION.]
Subdivision 1. [REPORT REQUIRED.] (a) Except as indicated
in subdivision 4, the state board of investment, on behalf of
the public pension funds and programs for which it is the
investment authority, and any Minnesota public pension plan that
is not fully invested through the state board of investment,
including a local police or firefighters' relief association
governed by sections 69.77 or 69.771 to 69.775, shall report the
information specified in subdivision 3 to the state auditor.
The state auditor may prescribe a form or forms for the purposes
of the reporting requirements contained in this section.
(b) A local police or firefighters' relief association
governed by section 69.77 or sections 69.771 to 69.775 is fully
invested during a given calendar year for purposes of this
section if all assets of the applicable pension plan beyond
sufficient cash equivalent investments to cover six months
expected expenses are invested under section 11A.17. The board
of any fully invested public pension plan remains responsible
for submitting investment policy statements and subsequent
revisions as required by subdivision 3, paragraph (a).
(c) For purposes of this section, the state board of
investment is considered to be the investment authority for any
Minnesota public pension fund required to be invested by the
state board of investment under section 11A.23, or for any
Minnesota public pension fund authorized to invest in the
supplemental investment fund under section 11A.17 and which is
fully invested by the state board of investment.
Subd. 2. [ASSET CLASS DEFINITION.] (a) For purposes of
this section, "asset class" means any of the following asset
groupings as authorized in applicable law, bylaws, or articles
of incorporation:
(1) cash and any cash equivalent investments with
maturities of one year or less when issued;
(2) debt securities with maturities greater than one year
when issued, including but not limited to mortgage participation
certificates and pools, asset backed securities, guaranteed
investment contracts, and authorized government and corporate
obligations of corporations organized under laws of the United
States or any state, or the Dominion of Canada or its provinces;
(3) stocks or convertible issues of any corporation
organized under laws of the United States or any state, or the
Dominion of Canada or its provinces, or any corporation listed
on the New York Stock Exchange or the American Stock Exchange;
(4) international stocks or convertible issues;
(5) international debt securities; and
(6) real estate and venture capital.
(b) If the pension plan is investing under section 69.77,
subdivision 2g, section 69.775, or any other applicable law, in
open-end investment companies registered under the federal
Investment Company Act of 1940, or in the Minnesota supplemental
investment fund under section 11A.17, this investment must be
included under an asset class indicated in paragraph (a),
clauses (1) through (6), as appropriate. If the investment
vehicle includes underlying securities from more than one asset
class as indicated by paragraph (a), clauses (1) through (6),
the investment may be treated as a separate asset class.
Subd. 3. [CONTENT OF REPORTS.] (a) The report required by
subdivision 1 must include a written statement of the investment
policy in effect on June 30, 1997, if that statement has not
been previously submitted. Following that date, subsequent
reports must include investment policy changes and the effective
date of each policy change rather than a complete statement of
investment policy, unless the state auditor requests submission
of a complete current statement. The report must also include
the information required by the following paragraphs, as
applicable.
(b) If a public pension plan has a total market value of
$10,000,000 or more as of the beginning of the calendar year,
the report required by subdivision 1 must include the market
value of the total portfolio and the market value of each
investment account, investment portfolio, or asset class
included in the pension fund as of the beginning of the calendar
year and for each month, and the amount and date of each
injection and withdrawal to the total portfolio and to each
investment account, investment portfolio, or asset class. If a
public pension plan once files a report under this paragraph, it
must continue reporting under this paragraph for any subsequent
year in which the public pension plan is not fully invested as
specified in subdivision 1, paragraph (b), even if asset values
drop below $10,000,000 in market value in a that subsequent year.
(c) For public pension plans to which paragraph (b)
applies, the report required by subdivision 1 must also include
a calculation of the total time-weighted rate of return
available from index-matching investments assuming the asset
class performance targets and target asset mix indicated in the
written statement of investment policy. The provided
information must include a description of indices used in the
analyses and an explanation of why those indices are
appropriate. This paragraph does not apply to any fully
invested plan, as defined by subdivision 1, paragraph (b).
Reporting by the state board of investment under this paragraph
is limited to information on the Minnesota public pension plans
required to be invested by the state board of investment under
section 11A.23.
(d) If a public pension plan has a total market value of
less than $10,000,000 as of the beginning of the calendar year
and was never required to file under paragraph (b), the report
required by subdivision 1 must include the amount and date of
each total portfolio injection and withdrawal. In addition, the
report must include the market value of the total portfolio as
of the beginning of the calendar year and for each quarter.
(e) Any public pension plan reporting under paragraph (b)
or (d) may include computed time-weighted rates of return with
the report, in addition to all other required information, as
applicable. If these returns are supplied, the individual who
computed the returns must certify that the returns are net of
all costs and fees, including investment management fees, and
that the procedures used to compute the returns are consistent
with bank administration institute studies of investment
performance measurement and association of investment management
and research presentation standards.
(f) For public pension plans reporting under paragraph (d),
the public pension plan must retain supporting information
specifying the date and amount of each injection and withdrawal
to each investment account and investment portfolio. The public
pension plan must also retain the market value of each
investment account and investment portfolio at the beginning of
the calendar year and for each quarter. Information that is
required to be collected and retained for any given year or
years under this paragraph must be submitted to the office of
the state auditor if the office of the state auditor requests in
writing that the information be submitted by a public pension
plan or plans, or be submitted by the state board of investment
for any plan or plans for which the state board of investment is
the investment authority under this section. If the state
auditor requests information under this subdivision, and the
public plan fails to comply, the pension plan will be is subject
to penalties under subdivision 5, unless penalties are waived by
the state auditor under that subdivision.
Subd. 4. [ALTERNATIVE REPORTING; CERTAIN PLANS.] In lieu
of requirements in subdivision 3, the applicable administration
for the individual retirement account plans under chapters 354B
and 354D and for the University of Minnesota faculty retirement
plan shall submit computed time-weighted rates of return to the
office of the state auditor. These time-weighted rates of
return must cover the most recent complete calendar year, and
must be computed separately for each investment option available
to plan members. To the extent feasible, the returns must be
computed net of all investment costs, fees, and charges, so that
the computed return reflects the net time-weighted return
available to the investor. If this is not practical, the
existence of any remaining investment cost, fee, or charge which
could further lower the net return must be disclosed. The
procedures used to compute the returns must be consistent with
bank administration institute studies of investment performance
measurement and association of investment management and
research presentation standards, or, if applicable, securities
exchange commission requirements. The individual who computes
the returns must certify that the supplied returns comply with
this subdivision. The applicable plan administrator must also
submit, with the return information, the total amounts invested
by the plan members, in aggregate, in each investment option as
of the last day of the calendar year.
Subd. 5. [PENALTY FOR NONCOMPLIANCE.] Failure to comply
with the reporting requirements of this section shall must
result in a withholding of all state aid or state appropriation
to which the pension plan may otherwise be directly or
indirectly entitled until the pension plan has complied with the
reporting requirements. The state auditor shall instruct the
commissioners of revenue and finance to withhold any state aid
or state appropriation from any pension plan that fails to
comply with the reporting requirements contained in this
section, until the pension plan has complied with the reporting
requirements. The state auditor may waive the withholding of
state aid or state appropriations if the state auditor
determines in writing that compliance would create an excessive
hardship for the pension plan.
Subd. 6. [INVESTMENT DISCLOSURE REPORT.] (a) The state
auditor shall prepare an annual report to the legislature on the
investment performance of the various public pension plans
subject to this section. The content of the report is specified
in paragraphs (b) to (e).
(b) For each public pension plan reporting under
subdivision 3, paragraph (b), the state auditor shall compute
and report total portfolio and asset class time-weighted rates
of return, net of all investment-related costs and fees.
(c) For each public pension plan reporting under
subdivision 3, paragraph (d), the state auditor shall compute
and report total portfolio time-weighted rates of return, net of
all costs and fees. If the state auditor has requested data for
a plan under subdivision 3, paragraph (f), the state auditor may
also compute and report asset class time-weighted rates of
return, net of all costs and fees.
(d) The report by the state auditor must include the
information submitted by the pension plans under subdivision 3,
paragraph (c), or a synopsis of that information.
(e) The report by the state auditor may also include a
presentation of multiyear performance, information collected
under subdivision 4, and any other information or analysis
deemed appropriate by the state auditor.
Subd. 7. [EXPENSE OF REPORT.] All administrative expenses
incurred relating to the investment report by the state auditor
described in subdivision 6 must be borne by the office of the
state auditor and may not be charged back to the entities
described in subdivisions 1 or 4.
Subd. 8. [TIMING OF REPORTS.] (a) For salaried firefighter
relief associations, police relief associations, and volunteer
firefighter relief associations, the information required under
this section must be submitted by the due date for reports
required under section 69.051, subdivision 1 or 1a, as
applicable. If a relief association satisfies the definition of
a fully invested plan under subdivision 1, paragraph (b), for
the calendar year covered by the report required under section
69.051, subdivision 1 or 1a, as applicable, the chief
administrative officer of the covered pension plan shall certify
that compliance on a form prescribed by the state auditor. The
state auditor shall transmit annually to the state board of
investment a list or lists of covered pension plans which
submitted certifications, in order to facilitate reporting by
the state board of investment under paragraph (c) of this
subdivision.
(b) For the Minneapolis teachers retirement fund
association, the St. Paul teachers retirement fund association,
the Duluth teachers retirement fund association, the Minneapolis
employees retirement fund, the University of Minnesota faculty
supplemental retirement plan, and the applicable administrators
for the University of Minnesota faculty retirement plan and the
individual retirement account plans under chapters 354B and
354D, the information required under this section must be
submitted to the state auditor by June 1 of each year.
(c) The state board of investment, on behalf of pension
funds specified in subdivision 1, paragraph (c), must report
information required under this section by September 1 of each
year.
Sec. 11. Minnesota Statutes 2000, section 356.22, is
amended to read:
356.22 [INTERPRETATION.]
Subdivision 1. [PROVISION OF ADDITIONAL VALUATIONS.] No
provision in sections 356.20 to 356.23 shall may be construed to
in any way to limit any of the enumerated pension and retirement
funds from furnishing additional actuarial valuations or
experience studies, or additional data and actuarial
calculations, as may be requested by the legislature or any
standing committee or by the legislative commission on pensions
and retirement.
Subd. 2. [ACCELERATED AMORTIZATION.] No provision in
sections 356.20 to 356.23 shall may be construed to preclude any
public pension and retirement fund enumerated in section 356.20,
subdivision 2, from requesting, or the legislature from
providing for, the amortization of any unfunded actuarial
accrued liability in a shorter period of time than by the
established date for full funding as determined pursuant to
under section 356.215, subdivision 4g 11.
Subd. 3. [ADDITIONAL REQUIRED VALUATIONS.] The legislature
or any committee or commission thereof now in existence or
hereafter created which has assigned to it the subject of public
pensions or public retirement plans may require actuarial
valuations and experience studies in conformity with the
provisions of sections 356.20 to 356.23 from any public pension
and retirement plan or fund, whether enumerated in sections
356.20 to 356.23 or otherwise.
Sec. 12. Minnesota Statutes 2000, section 356.23, is
amended to read:
356.23 [SUPPLEMENTAL VALUATIONS; ALTERNATIVE REPORTS AND
VALUATIONS.]
Subdivision 1. [SUPPLEMENTAL ACTUARIAL VALUATIONS.] Any
supplemental actuarial valuations prepared on behalf of any
governing or managing board of any pension and retirement fund
enumerated in section 356.20, subdivision 2, by an approved
actuary, shall must be prepared in accordance with the
applicable provisions of sections 356.20 to 356.23 and with the
standards adopted by the legislative commission on pensions and
retirement. Any pension and retirement fund which prepares an
alternative actuarial valuation under subdivision 2 shall also
must have a supplemental actuarial valuation prepared.
Subd. 2. [ALTERNATIVE REPORTS AND VALUATIONS.] In addition
to the financial reports and actuarial valuations required by
sections 356.20 to 356.23, the governing or managing board of
any fund concerned may submit alternative reports and actuarial
valuations for distribution to the legislature, any of its
committees, or the legislative commission on pensions and
retirement on a different basis or on different assumptions than
are specified in sections 356.20 to 356.23. The assumptions and
basis of any alternative reports and valuations shall must be
clearly stated in the document.
LIMITATIONS ON SUPPLEMENTAL AND
LOCAL RETIREMENT PLANS
Sec. 13. Minnesota Statutes 2001 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 to 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
board of trustees of the Minnesota state colleges and
universities and covered under the higher education supplemental
retirement plan under chapter 354C, if the supplemental plan
coverage is 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
contribution made to any investment eligible under section
403(b) of the Internal Revenue Code, 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;
(6) for personnel employed by the board of trustees of the
Minnesota state colleges and universities and not covered by
clause (5), to the supplemental retirement plan under chapter
354C, if the supplemental plan coverage is 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 $2,700 a year for each
employee;
(7) to a supplemental plan or to a governmental trust to
save for postretirement health care expenses qualified for
tax-preferred treatment under the Internal Revenue Code, if the
supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of a public employer
with the exclusive representative of the covered employees in an
appropriate unit; or
(8) to the laborer's national industrial pension fund for
the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by
that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 per year per
employee;
(9) to the plumbers' and pipefitters' national pension fund
for the employees of a governmental subdivision who are covered
by a collective bargaining agreement that provides for coverage
by that fund and that sets forth a fund contribution rate, but
not to exceed an employer contribution of $2,000 per year per
employee;
(10) to the international union of operating engineers
pension fund for the employees of a governmental subdivision who
are covered by a collective bargaining agreement that provides
for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of
$2,000 per year per employee; or
(11) to a supplemental plan organized and operated under
the federal Internal Revenue Code, as amended, that is wholly
and solely funded by the employee's accumulated sick leave,
accumulated vacation leave, and accumulated severance pay.
Sec. 14. Minnesota Statutes 2000, section 356.24,
subdivision 1b, is amended to read:
Subd. 1b. [VENDOR RESTRICTIONS.] A personnel policy for
unrepresented employees or, a collective bargaining agreement
for represented employees, or a school board for school district
employees may establish limits on the number of vendors of plans
covered by the exceptions set forth in subdivision 1 that it
will utilize and conditions under which the those vendors may
contact employees both during working hours and after working
hours.
Sec. 15. Minnesota Statutes 2000, section 356.24,
subdivision 1c, is amended to read:
Subd. 1c. [STATE BOARD OF INVESTMENT REVIEW.] (a) 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.
(b) 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.
(c) 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. 16. Minnesota Statutes 2000, section 356.24,
subdivision 2, is amended to read:
Subd. 2. [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT
CHANGES.] No change in benefits or employer contributions in a
supplemental pension plan to which this section applies that
occurs after May 6, 1971, is effective without prior legislative
authorization.
Sec. 17. Minnesota Statutes 2000, section 356.245, is
amended to read:
356.245 [LOCAL ELECTED OFFICIALS.]
An elected official who is covered by section 353.01,
subdivision 2a, is eligible to participate in the state of
Minnesota deferred compensation plan under section 356.24. A
The applicable local governmental unit may make the matching
employer contributions authorized by that section on the part of
a participating elected official.
Sec. 18. Minnesota Statutes 2000, section 356.25, is
amended to read:
356.25 [LOCAL GOVERNMENTAL PENSION FUND PROHIBITIONS;
EXCLUSIONS.]
Notwithstanding any other provision of law or charter to
the contrary, no city, county, public agency or instrumentality,
or other political subdivision shall, after August 1, 1975, is
required or permitted to establish for any of its employees any
a local pension plan or fund financed in whole or in part from
public funds, other than a volunteer firefighter's relief
association that is established pursuant to under chapter 424A
and is governed by sections 69.771 to 69.776.
PUBLIC RETIREMENT PLAN PORTABILITY MECHANISMS
Sec. 19. Minnesota Statutes 2000, section 356.30, is
amended to read:
356.30 [COMBINED SERVICE ANNUITY.]
Subdivision 1. [ELIGIBILITY; COMPUTATION OF ANNUITY.] (a)
Notwithstanding any provisions of the laws governing the
retirement plans enumerated in subdivision 3, a person who has
met the qualifications of paragraph (b) may elect to receive a
retirement annuity from each enumerated retirement plan in which
the person has at least one-half year of allowable service,
based on the allowable service in each plan, subject to the
provisions of paragraph (c).
(b) A person may receive, upon retirement, a retirement
annuity from each enumerated retirement plan in which the person
has at least 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:
(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 plans; and
(2) the person has not begun to receive an annuity from any
enumerated plan or the person has made application for benefits
from each applicable plan and the effective dates of the
retirement annuity with each plan under which the person chooses
to receive an annuity are within a one-year period.
(c) The retirement annuity from each plan must be based
upon the allowable service, accrual rates, and average salary in
the applicable plan except as further specified or modified in
the following clauses:
(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 retirement plan with which the person
earned a minimum of one-half year of allowable service credit
during that employment;
(2) the "average salary" on which the annuity from each
covered plan in which the employee has credit in a formula plan
shall must be based on the employee's highest five successive
years of covered salary during the entire service in covered
plans;
(3) the accrual rates to be used by each plan must be those
percentages prescribed by each plan's formula as continued for
the respective years of allowable service from one plan to the
next, recognizing all previous allowable service with the other
covered plans;
(4) the allowable service in all the plans must be combined
in determining eligibility for and the application of each
plan's provisions in respect to reduction in the annuity amount
for retirement prior to normal retirement age; and
(5) the annuity amount payable for any allowable service
under a nonformula plan of a covered plan must not be affected,
but such service and covered salary must be used in the above
calculation.
(d) This section does not apply to any person whose final
termination from the last public service under a covered plan is
prior to was before May 1, 1975.
(e) For the purpose of computing annuities under this
section, the accrual rates used by any covered plan, except the
public employees police and fire plan, the judges' retirement
fund, and the state patrol retirement plan, must not exceed the
percent specified in section 356.19 356.315, subdivision 4, 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 percentage rate specified in section
356.19 356.315, subdivision 8, per year of service for any year
of service or fraction thereof. The accrual rate used by the
public employees police and fire plan and the state patrol
retirement plan must not exceed the percent percentage rate
specified in section 356.19 356.315, subdivision 6, per year of
service for any year of service or fraction thereof. The
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).
(f) Any period of time for which a person has credit in
more than one of the covered plans must be used only once for
the purpose of determining total allowable service.
(g) If the period of duplicated service credit is more than
one-half year, or the person has credit for more than one-half
year, with each of the plans, each 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 plans for the period.
(h) If the period of duplicated service credit is less than
one-half year, or when added to other service credit with that
plan is less than one-half year, the service credit must be
ignored and a refund of contributions made to the person in
accord with that plan's refund provisions.
Subd. 2. [REPAYMENT OF REFUNDS.] A person who has service
credit in one of the funds retirement plans enumerated in
subdivision 3 and who is employed or was formerly employed in a
position covered by one of these funds covered plans but also
has received a refund from any other of these funds covered
plans, may repay the refund to the respective fund plan under
terms and conditions that are consistent with the laws governing
the other fund plan, except that the person need not be a
currently contributing member of the fund plan to which the
refund is repaid at the time the repayment is made. Unless
otherwise provided by statute, the repayment of a refund under
this subdivision may only be made within six months following
termination of employment from a position covered by one of the
funds covered plans enumerated in subdivision 3 or before the
date of retirement from the fund plan to which the refund is
repaid, whichever is earlier.
Subd. 2a. [PURCHASES OF PRIOR SERVICE.] If a purchase of
prior service is made under the provisions of Laws 1988, chapter
709, article 3, or any similar special or general law provision
which allows a purchase of service credit in any of the funds
retirement plans enumerated in subdivision 3, the amount of
required reserves calculated as prescribed in Laws 1988, chapter
709, article 3, must be paid to each fund plan based on the
amount of benefit increase payable from that fund plan as a
result of the purchase of prior service.
Subd. 3. [COVERED FUNDS PLANS.] This section applies to
the following retirement funds plans:
(1) the general state employees retirement fund plan of the
Minnesota state retirement system, established pursuant to under
chapter 352;
(2) the correctional state employees retirement program
plan of the Minnesota state retirement system,
established pursuant to under chapter 352;
(3) the unclassified employees retirement plan program,
established pursuant to under chapter 352D;
(4) the state patrol retirement fund plan, established
pursuant to under chapter 352B;
(5) the legislators retirement plan, established pursuant
to under chapter 3A;
(6) the elective state officers' retirement plan,
established pursuant to under chapter 352C;
(7) the general employees retirement plan of the public
employees retirement association, established pursuant to under
chapter 353;
(8) the public employees police and fire fund retirement
plan of the public employees retirement association, established
pursuant to under chapter 353;
(9) public employees the local government correctional
service retirement plan of the public employees retirement
association, established pursuant to under chapter 353E;
(10) the teachers retirement association, established
pursuant to under chapter 354;
(11) the Minneapolis employees retirement fund, established
pursuant to under chapter 422A;
(12) the Minneapolis teachers retirement fund association,
established pursuant to under chapter 354A;
(13) the St. Paul teachers retirement fund association,
established pursuant to under chapter 354A;
(14) the Duluth teachers retirement fund association,
established pursuant to under chapter 354A; and
(15) the judges' retirement fund, established by sections
490.121 to 490.132.
Sec. 20. Minnesota Statutes 2000, section 356.302, is
amended to read:
356.302 [DISABILITY BENEFIT WITH COMBINED SERVICE.]
Subdivision 1. [DEFINITIONS.] (a) The terms used in this
section are defined in this subdivision.
(b) "Average salary" means the highest average of covered
salary for the appropriate period of credited service that is
required for the calculation of a disability benefit by the
covered retirement plan and that is drawn from any period of
credited service and successive years of covered salary in a
covered retirement plan.
(c) "Covered retirement plan" or "plan" means a retirement
plan listed in subdivision 7.
(d) "Duty-related" means a disabling illness or injury that
occurred while the person was actively engaged in employment
duties or that arose out of the person's active employment
duties.
(e) "General employee retirement plan" means a covered
retirement plan listed in subdivision 7, clauses (1) to (8) and
(13).
(f) "Occupationally disabled" means the condition of having
a medically determinable physical or mental impairment that
makes a person unable to satisfactorily perform the minimum
requirements of the person's employment position or a
substantially similar employment position.
(g) "Public safety employee retirement plan" means a
covered retirement plan listed in subdivision 7, clauses (9) to
(11) (12).
(h) "Totally and permanently disabled" means the condition
of having a medically determinable physical or mental impairment
that makes a person unable to engage in any substantial gainful
activity and that is expected to continue or has continued for a
period of at least one year or that is expected to result
directly in the person's death.
Subd. 2. [ENTITLEMENT.] Notwithstanding any provision of
law to the contrary governing any covered retirement plan, a
member of a covered retirement plan may receive a combined
service disability benefit from each covered retirement plan in
which the person has credit for at least one-half year of
allowable service if that person meets the applicable qualifying
conditions. Subdivision 3 applies to a member of a general
employee retirement plan. Subdivision 4 applies to a member of
a public safety employee retirement plan. Subdivision 5 applies
to a member of a covered retirement plan with both general
employee and public safety employee retirement plan service.
Subd. 3. [GENERAL EMPLOYEE PLAN ELIGIBILITY REQUIREMENTS.]
A disabled member of a covered retirement plan who has credit
for allowable service in a combination of general employee
retirement plans is entitled to a combined service disability
benefit if the member:
(1) is less than 65 years of age on the date of the
application for the disability benefit;
(2) has become totally and permanently disabled;
(3) has credit for allowable service in any combination of
general employee retirement plans totaling at least three years;
(4) has credit for at least one-half year of allowable
service with the current general employee retirement plan before
the commencement of the disability;
(5) has at least three continuous years of allowable
service credit by the general employee retirement plan or has at
least a total of three years of allowable service credit by a
combination of general employee retirement plans in a 72-month
period during which no interruption of allowable service credit
from a termination of employment exceeded 29 days; and
(6) is was not receiving a retirement annuity or disability
benefit from any covered general employee retirement plan at the
time of the commencement of the disability.
Subd. 4. [PUBLIC SAFETY PLAN ELIGIBILITY REQUIREMENTS.] A
disabled member of a covered retirement plan who has credit for
allowable service in a combination of public safety employee
retirement plans is entitled to a combined service disability
benefit if the member:
(1) has become occupationally disabled;
(2) has credit for allowable service in any combination of
public safety employee retirement plans totaling at least one
year if the disability is duty-related or totaling at least
three years if the disability is not duty-related;
(3) has credit for at least one-half year of allowable
service with the current public safety employee retirement plan
before the commencement of the disability; and
(4) is was not receiving a retirement annuity or disability
benefit from any covered public safety employee retirement plan
at the time of the commencement of the disability.
Subd. 5. [GENERAL AND PUBLIC SAFETY PLAN ELIGIBILITY
REQUIREMENTS.] A disabled member of a covered retirement plan
who has credit for allowable service in a combination of both a
public safety employee retirement plans plan and general
employee retirement plans plan must meet the qualifying
requirements in subdivisions 3 and 4 to receive a combined
service disability benefit from the applicable general employee
and public safety employee retirement plans, except that the
person need only be a member of a covered retirement plan at the
time of the commencement of the disability and that the minimum
allowable service requirements of subdivisions 3, clauses (3)
and (5), and 4, clauses (3) and (4), may be met in any
combination of covered retirement plans.
Subd. 6. [COMBINED SERVICE DISABILITY BENEFIT
COMPUTATION.] (a) The combined service disability benefit from
each covered retirement plan must be based on the allowable
service in each retirement plan, except as specified in
paragraphs (b) to (f).
(b) The disability benefit must be governed by the law in
effect for each covered retirement plan on the date of the
commencement of the member's most recent qualifying disability
as a member of a covered retirement plan.
(c) All plans must base the disability benefit on the same
average salary figure to the extent practicable.
(d) If the method of the covered retirement plan used to
compute a disability benefit varies based on the length of
allowable service credit, the benefit accrual formula
percentages used by the plan must recognize the allowable
service credit in the plan as a continuation of any previous
allowable service credit with other covered retirement plans.
(e) If the covered retirement plan is a defined benefit or
formula plan and the method used to compute a disability benefit
does not vary based on the length of allowable service credit,
the portion of the specified benefit amount from the plan must
bear the same proportion to the total specified benefit amount
as the allowable service credit in that plan bears to the total
allowable service credit in all covered retirement plans. If
the covered retirement plan is a defined contribution or
nonformula plan, the disability benefit amount for allowable
service under the plan is not affected, but the service and the
covered salary under the plan must be used as applicable in
calculations by other covered retirement plans.
(f) A period for which a person has allowable service
credit in more than one covered retirement plan must be used
only once in determining the total allowable service credit for
calculating the combined service disability benefit, with any
period of duplicated service credit handled under as provided in
section 356.30, subdivision 1, clause (3), items (i) and
(j) paragraphs (g) and (h).
(g) If a person is entitled to a minimum benefit payable
from one of the public pension plans named enumerated in section
356.30, subdivision 3, the person may receive additional credit
for only those years of service in another covered pension plan
that, when added to the years of service in the pension plan
that is paying the minimum benefit, exceed the years of service
on which the minimum benefit is based.
(h) A partially employed recipient of a disability benefit
must have any current reemployment income plus the total
disability payment payments from all plans listed enumerated in
subdivision 7 added together, and then compared to their final
salary rate as a public employee. If current income plus the
total disability payments exceed the final salary of the person
at the time of retirement, then disability benefit payments from
all the plans will must be reduced on a prorated basis relative
to the years of service in each fund so that earnings plus
benefit payments do not exceed their the final salary rate.
Subd. 7. [COVERED RETIREMENT PLANS.] This section applies
to the following retirement plans:
(1) the general state employees retirement fund plan of the
Minnesota state retirement system, established by chapter 352;
(2) the unclassified state employees retirement plan
program of the Minnesota state retirement system, established by
chapter 352D;
(3) the general employees retirement plan of the public
employees retirement association, established by chapter 353;
(4) the teachers retirement association, established by
chapter 354;
(5) the Duluth teachers retirement fund association,
established by chapter 354A;
(6) the Minneapolis teachers retirement fund association,
established by chapter 354A;
(7) the St. Paul teachers retirement fund association,
established by chapter 354A;
(8) the Minneapolis employees retirement fund, established
by chapter 422A;
(9) the state correctional employees retirement plan of the
Minnesota state retirement system, established by chapter 352;
(10) the state patrol retirement fund plan, established by
chapter 352B;
(11) the public employees police and fire fund plan of the
public employees retirement association, established by chapter
353;
(12) public employees the local government correctional
service retirement plan of the public employees retirement
association, established by chapter 353E; and
(13) the judges' retirement fund plan, established by
sections 490.121 to 490.132.
Sec. 21. Minnesota Statutes 2000, section 356.303, is
amended to read:
356.303 [SURVIVOR BENEFIT WITH COMBINED SERVICE.]
Subdivision 1. [DEFINITIONS.] (a) The terms used in this
section are defined in this subdivision.
(b) "Average salary" means the highest average of covered
salary for the appropriate period of credited service that is
required for the calculation of a survivor annuity or a survivor
benefit, whichever applies, by the covered retirement plan and
that is drawn from any period of credited service and covered
salary in a covered retirement plan.
(c) "Covered retirement plan" or "plan" means a retirement
plan listed enumerated in subdivision 4.
(d) "Deceased member" means a person who on the date of
death was an active member of a covered retirement plan and who
has reached the minimum age, if any, that is required by the
covered retirement plan as part of qualifying for a survivor
annuity or survivor benefit.
(e) "Surviving child" means a child of a deceased member
(1) who is unmarried,; (2) who has not reached age 18, or, if a
full-time student, who has not reached a higher age as specified
in by the applicable covered retirement plan,; and (3) if
specified by that plan, who was actually dependent on the
deceased member for a specified proportion of support before the
deceased member's death. "Surviving child" includes a natural
child, an adopted child, or a child of a deceased member who is
conceived during the member's lifetime and who is born after the
member's death.
(f) "Surviving spouse" means the legally married husband or
wife, whichever applies, of the deceased member who was residing
with the deceased member on the date of death and who, if
specified by the applicable covered retirement plan, had been
married to the deceased member for a specified period of time
before the death of the deceased member.
(g) "Survivor annuity" means the entitlement to a future
amount payable to a survivor as the remainder interest of an
optional annuity form implied by law as having been chosen by a
deceased member before the date of death and effective on the
date of death or provided automatically.
(h) "Survivor benefit" means an entitlement to a future
amount payable to a survivor that is not included in the
definition of a survivor annuity.
Subd. 2. [ENTITLEMENT; ELIGIBILITY.] Notwithstanding
any provision of law to the contrary governing a covered
retirement plan, a person who is the survivor of a deceased
member of a covered retirement plan may receive a combined
service survivor benefit from each covered retirement plan in
which the deceased member had credit for at least one-half year
of allowable service if the deceased member:
(1) had credit for sufficient allowable service in any
combination of covered retirement plans to meet any minimum
allowable service credit requirement of the covered retirement
fund for qualification for a survivor benefit or annuity;
(2) had credit for at least one-half year of allowable
service with the most recent covered retirement plan before the
date of death and was an active member of that covered
retirement plan on the date of death; and
(3) was not receiving a retirement annuity from any covered
retirement plan on the date of death.
Subd. 3. [COMBINED SERVICE SURVIVOR BENEFIT COMPUTATION.]
(a) The combined service survivor annuity or survivor benefit
from each covered retirement plan must be based on the allowable
service in each covered retirement plan, except as provided by
paragraphs (b) to (f).
(b) The survivor annuity or survivor benefit must be
governed by the law in effect for each covered retirement plan
on the date of the death of the deceased member.
(c) All plans must base the survivor annuity or survivor
benefit on the same average salary figure if the annuity or
benefit is salary related.
(d) If the method of the covered retirement plan used to
compute a survivor benefit or annuity varies based on the length
of allowable service credit, the benefit accrual formula
percentages used by the plan must recognize the allowable
service credit in the plan as a continuation of any previous
allowable service credit with other covered retirement plans.
(e) If the covered retirement plan is a defined benefit or
formula plan and the method used to compute a survivor benefit
or annuity does not vary based on the length of allowable
service credit, the portion of the specified benefit or annuity
amount from the covered retirement plan must bear the same
proportion to the total specified benefit or annuity amount as
the allowable service credit in that plan bears to the total
allowable service credit in all covered retirement plans. If
the covered retirement plan is a defined contribution or
nonformula plan, the survivor benefit amount for allowable
service under the plan is not affected, but the service and
covered salary under the plan must be used in calculations by
other covered retirement plans.
(f) A period for which a person has deceased member had
allowable service credit in more than one covered retirement
plan must be used only once in determining the total allowable
service credit for calculating the combined service survivor
annuity or survivor benefit. A period of duplicated service
credit must be handled as provided in section 356.30,
subdivision 1, clause (3), items (i) and (j) paragraphs (g) and
(h).
(g) If a person is entitled to a minimum benefit payable
from a public pension plan named in section 356.30, subdivision
3, the person may receive additional credit for only those years
of service in another covered pension plan that, when added to
the years of service in the pension plan that is paying the
minimum benefit, exceed the years of service on which the
minimum benefit is based.
Subd. 4. [COVERED RETIREMENT PLANS.] This section applies
to the following retirement plans:
(1) the legislators retirement plan, established by chapter
3A;
(2) the general state employees retirement fund plan of the
Minnesota state retirement system, established by chapter 352;
(3) the correctional state employees retirement plan of the
Minnesota state retirement system, established by chapter 352;
(4) the state patrol retirement fund plan, established by
chapter 352B;
(5) the elective state officers retirement plan,
established by chapter 352C;
(6) the unclassified state employees retirement plan
program, established by chapter 352D;
(7) the general employees retirement plan of the public
employees retirement association, established by chapter 353;
(8) the public employees police and fire fund plan of the
public employees retirement association, established by chapter
353;
(9) public employees the local government correctional
service retirement plan of the public employees retirement
association, established by chapter 353E;
(10) the teachers retirement association, established by
chapter 354;
(11) the Duluth teachers retirement fund association,
established by chapter 354A;
(12) the Minneapolis teachers retirement fund association,
established by chapter 354A;
(13) the St. Paul teachers retirement fund association,
established by chapter 354A;
(14) the Minneapolis employees retirement fund, established
by chapter 422A; and
(15) the judges' retirement fund, established by sections
490.121 to 490.132.
RETIREMENT ANNUITIES
Sec. 22. [356.315] [RETIREMENT BENEFIT FORMULA
PERCENTAGES.]
Subdivision 1. [COORDINATED PLAN MEMBERS.] The applicable
benefit accrual rate is 1.2 percent.
Subd. 2. [COORDINATED PLAN MEMBERS.] The applicable
benefit accrual rate is 1.7 percent.
Subd. 2a. [COORDINATED MEMBERS.] The applicable benefit
accrual rate is 2.0 percent.
Subd. 3. [BASIC PLAN MEMBERS.] The applicable benefit
accrual rate is 2.2 percent.
Subd. 4. [BASIC PLAN MEMBERS.] The applicable benefit
accrual rate is 2.7 percent.
Subd. 5. [CORRECTIONAL PLAN MEMBERS.] The applicable
benefit accrual rate is 2.4 percent.
Subd. 5a. [LOCAL GOVERNMENT CORRECTIONAL SERVICE PLAN.]
The applicable benefit accrual rate is 1.9 percent.
Subd. 6. [STATE TROOPERS PLAN AND POLICE AND FIRE PLAN
MEMBERS.] The applicable benefit accrual rate is 3.0 percent.
Subd. 7. [JUDGES PLAN.] The applicable benefit accrual
rate is 2.7 percent.
Subd. 8. [JUDGES PLAN.] The applicable benefit accrual
rate is 3.2 percent.
Subd. 9. [FUTURE BENEFIT ACCRUAL RATE INCREASES.] After
January 2, 1998, benefit accrual rate increases under this
section must apply only to allowable service or formula service
rendered after the effective date of the benefit accrual rate
increase.
Sec. 23. Minnesota Statutes 2000, section 356.32, is
amended to read:
356.32 [PROPORTIONATE ANNUITY AT AGE 65.]
Subdivision 1. [PROPORTIONATE RETIREMENT ANNUITY.] (a)
Notwithstanding any provision to the contrary of the laws
governing any of the retirement funds referred to enumerated in
subdivision 2, any person who is an active member of any
applicable fund, who has credit for at least one year but less
than ten years of allowable service in one or more of
the applicable funds covered plans, and who terminates active
service pursuant to under a mandatory retirement law or policy
or at age 65 or older, or at the normal retirement age if this
age is not age 65, for any reason shall be is entitled upon
making written application on the form prescribed by executive
director or executive secretary the chief administrative officer
of the fund plan to a proportionate retirement annuity from each
applicable fund covered plan in which the person has allowable
service credit.
(b) The proportionate annuity shall must be calculated
under the applicable laws governing annuities based upon
allowable service credit at the time of retirement and the
person's average salary for the highest five successive years of
allowable service or the average salary for the entire period of
allowable service if less than five years.
(c) Nothing in this section shall prevent prevents the
imposition of the appropriate early retirement reduction of an
annuity which commences prior to before the normal retirement
age.
Subd. 2. [COVERED FUNDS RETIREMENT PLANS.] The provisions
of this section shall apply to the following retirement
funds plans:
(1) the general state employees retirement fund plan of the
Minnesota state retirement system, established pursuant to under
chapter 352;
(2) the correctional state employees retirement program
plan of the Minnesota state retirement system, established
pursuant to under chapter 352;
(3) the state patrol retirement fund plan,
established pursuant to under chapter 352B;
(4) the general employees retirement plan of the public
employees retirement fund association, established pursuant to
under chapter 353;
(5) the public employees police and fire fund plan of the
public employees retirement association, established pursuant to
under chapter 353;
(6) the teachers retirement association, established
pursuant to under chapter 354;
(7) the Minneapolis employees retirement fund, established
pursuant to under chapter 422A;
(8) the Duluth teachers retirement fund association,
established pursuant to under chapter 354A;
(9) the Minneapolis teachers retirement fund association,
established pursuant to under chapter 354A; and
(10) the St. Paul teachers retirement fund association,
established pursuant to under chapter 354A.
Sec. 24. Minnesota Statutes 2000, section 356.40, is
amended to read:
356.40 [DATE FOR PAYMENT OF ANNUITIES AND BENEFITS.]
(a) Notwithstanding any law to the contrary, all annuities
and benefits payable on and after December 1, 1977 by a covered
retirement fund, as defined in section 356.30, subdivision 3,
shall must be paid in advance for each month during the first
week of that month. The bylaws of municipal local retirement
funds shall must be amended accordingly.
(b) In no event, however, shall may this section authorize
more than one payment in any one month where the law governing
the applicable retirement fund as of June 30, 1977 already
provides for the full payment or accrual of annuities and
benefits in advance for each month or as of the first day of the
month, nor shall it authorize the payment of both a retirement
annuity and a surviving spouse's benefit in one month where the
law governing the applicable retirement fund provides for the
payment of the retired member's retirement annuity to the
surviving spouse for the month in which the retired member dies.
Sec. 25. [356.403] [NORMAL RETIREMENT AGE; SAVINGS
CLAUSE.]
The intent of the legislature in sections 352.01,
subdivision 25; 353.01, subdivision 37; 354.05, subdivision 38;
and 354A.011, subdivision 15a, is to create a normal retirement
age for persons first covered by those sections after May 16,
1989, that is the same as the retirement age in the federal
Social Security law, including future amendments to that law.
If a court determines that the legislature may not incorporate
by reference the future changes in federal Social Security law,
the legislature reserves the right to amend the appropriate
sections to make the normal retirement age conform to the
retirement age in the federal Social Security law. No person
first covered by any of those sections after May 16, 1989, has a
right to a normal retirement age that is less than the
retirement age in the federal Social Security law.
Sec. 26. [356.405] [COMBINED PAYMENT OF RETIREMENT
ANNUITIES.]
(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
its portion of the payment separately, and there may be no
additional actuarial liabilities realized by either plan.
(c) The plan making the payment would be responsible for
issuing one payment and making address changes, tax withholding
changes, and other administrative functions needed to process
the payment.
SURVIVOR BENEFITS
Sec. 27. [356.406] [LOSS OF ENTITLEMENT TO BENEFITS FOR
SURVIVOR CAUSING DEATH OF PENSION PLAN MEMBER.]
Subdivision 1. [DEFINITIONS.] (a) Each of the words or
terms defined in this subdivision has the meaning indicated.
(b) "Public pension plan" means any retirement plan or fund
enumerated in section 356.20, subdivision 2, or 356.30,
subdivision 3, any relief association governed by section 69.77
or sections 69.771 to 69.775, any retirement plan governed by
chapter 354B or 354C, the Hennepin county supplemental
retirement plan governed by sections 383B.46 to 383B.52, or any
housing and redevelopment authority retirement plan.
(c) "Public pension plan member" means a person who is a
participant covered by a public pension plan; a former
participant of a public pension plan who has sufficient service
to be entitled to receive a future retirement annuity or service
pension; a recipient of a retirement annuity, service pension,
or disability benefit from a public pension plan; or a former
participant of a public pension plan who has member or employee
contributions to the person's credit in the public pension plan.
(d) "Survivor" means the surviving spouse, a former spouse,
a surviving child, a joint annuitant, a designated recipient of
a second or remainder portion of an optional annuity form, a
beneficiary, or the estate of a deceased public pension plan
member, as those terms are commonly understood or defined in the
benefit plan document of the public pension plan.
(e) "Survivor benefit" means a surviving spouse benefit,
surviving child benefit, second or remainder portion of an
optional annuity form, a death benefit, a funeral benefit, or a
refund of member or employee contributions payable on account of
the death of a public pension plan member as provided for in the
benefit plan document of the public pension plan.
Subd. 2. [SUSPENSION OF SURVIVOR BENEFITS UPON FELONY
CHARGE.] During the pendency of a charge of a survivor of a
felony that caused the death of a public pension plan member, of
criminal liability for a death by wrongful act felony, or of
conspiracy to commit a death by wrongful act felony, the
entitlement of that survivor to receive a survivor benefit is
suspended.
Subd. 3. [FORFEITURE OF SURVIVOR BENEFITS UPON FELONY
CONVICTION.] On final conviction of a survivor of a felony that
caused the death of a public pension plan member, of criminal
liability for a death by wrongful act felony, or of conspiracy
to commit a death by wrongful act felony, the entitlement of
that survivor to receive a survivor benefit is forfeited,
including entitlement for any previously suspended survivor
benefits under subdivision 2.
Subd. 4. [SUSPENSION OR FORFEITURE ACTIONS SEPARATE.] The
charge of one survivor under subdivision 2 or the conviction of
one survivor under subdivision 3 does not affect the entitlement
of another survivor to a survivor benefit.
Subd. 5. [RECOVERY OF CERTAIN BENEFITS.] If monthly
benefits or a refund of the balance of a participant or former
participant's account have already been paid to an individual
who is later charged or convicted as described under this
section, the executive director or chief administrative officer
of the public pension plan shall attempt to recover the amounts
paid. Payment may be made to the next beneficiary or survivor
only in an amount equal to the amount recovered and in the
amount of any future payments that would legally accrue to
another survivor under the applicable laws of the retirement
plan.
Subd. 6. [DISPOSITION OF FORFEITED SURVIVOR BENEFITS.] If
the benefit plan document governing the public pension plan does
not provide for the disposition of forfeited benefits, survivor
benefits forfeited under this section must be deposited in the
general fund of the state.
Sec. 28. [356.407] [RESTORATION OF SURVIVOR BENEFITS.]
Subdivision 1. [RESTORATION UPON TERMINATION OF
REMARRIAGE.] Notwithstanding any provision to the contrary of
the laws governing any of the retirement plans enumerated in
subdivision 2, any person who was receiving a surviving spouse's
benefit from any of those plans and whose benefit terminated
solely because of remarriage is, if the remarriage terminates
for any reason, again entitled upon reapplication to a surviving
spouse's benefit; provided, however, that the person is not
entitled to retroactive payments for the period of remarriage.
The benefit resumes at the level which the person would have
been receiving if there had been no remarriage. This section
applies prospectively to any person who first becomes entitled
to receive a surviving spouse's benefit on or after May 18,
1975, and also applies retroactively to any person who first
became entitled to receive a surviving spouse's benefit before
May 18, 1975; provided, however, that no person is entitled to
retroactive payments for any period of time before May 18, 1975.
Subd. 2. [COVERED FUNDS.] The provisions of this section
apply to the following retirement funds:
(1) the general employees retirement plan of the public
employees retirement association established under chapter 353;
(2) the public employees police and fire plan of the public
employees retirement association established under chapter 353;
(3) the state patrol retirement plan established under
chapter 352B;
(4) the legislators retirement plan established under
chapter 3A;
(5) the elective state officers retirement plan established
under chapter 352C;
(6) the teachers retirement association established under
chapter 354; and
(7) the Minneapolis employees retirement fund established
under chapter 422A.
POSTRETIREMENT INCREASES
Sec. 29. Minnesota Statutes 2000, section 356.41, is
amended to read:
356.41 [BENEFIT ADJUSTMENTS FOR CERTAIN DISABILITY AND
SURVIVOR BENEFITS.]
Disability benefits payable to a disabilitant, if not
otherwise included in the participation in the Minnesota
postretirement investment fund, and survivor benefits payable to
a survivor from any public pension fund plan which participates
in the Minnesota postretirement investment fund shall must be
adjusted in the same manner, at the same times and in the same
amounts as are benefits payable from the Minnesota
postretirement investment fund to eligible benefit recipients of
that public pension fund plan. If a disability benefit is not
included in the participation in the Minnesota postretirement
investment fund, the disability benefit is recomputed as a
retirement annuity and the recipient would have been eligible
for an adjustment pursuant to under this section if the
disability benefit was not recomputed, the recipient will
continue to be remains eligible for the adjustment pursuant to
under this section after the recomputation. For the survivor of
a deceased annuitant who receives a survivor benefit
calculated pursuant to under a prior law rather than the second
portion of a joint and survivor annuity, any period of receipt
of a retirement annuity by the annuitant shall must be utilized
in determining the period of receipt for eligibility to receive
an adjustment pursuant to under this section. No recipient
shall, however, be is entitled to more than one adjustment
pursuant to under this section or section 11A.18 applicable to
one benefit at one time by reason of this section.
Sec. 30. [356.42] [POSTRETIREMENT ADJUSTMENT; LUMP SUM
PAYMENTS.]
Subdivision 1. [ENTITLEMENT.] A person who is receiving a
retirement annuity, a disability benefit, or a surviving
spouse's annuity or benefit from a retirement fund specified in
subdivision 3, clauses (1) to (8), is entitled to receive a
postretirement adjustment from the applicable retirement fund in
the amount specified in subdivision 2, if the annuity or benefit
was computed under:
(1) the laws in effect before June 1, 1973, if the person
is receiving an annuity or benefit from the retirement fund
specified in subdivision 3, clause (4);
(2) the laws in effect before July 1, 1973, if the person
is receiving an annuity or benefit from a retirement fund
specified in subdivision 3, clause (1), (2), (3), or (5);
(3) the metropolitan transit commission transit operating
division employees retirement fund plan document in effect on or
before December 31, 1977, if the person is receiving a
retirement annuity, a disability benefit, or a surviving
spouse's annuity or benefit from the retirement fund specified
in subdivision 3, clause (5);
(4) the laws in effect before May 1, 1974, and before any
adjustment under Laws 1987, chapter 372, article 3, if the
person is receiving an annuity or benefit from the retirement
fund specified in subdivision 3, clause (6);
(5) the laws in effect before January 1, 1970, if the
person is receiving an annuity or benefit from the retirement
fund specified in subdivision 3, clause (7); or
(6) the laws in effect before June 30, 1971, if the person
is receiving an annuity or benefit from the retirement fund
specified in subdivision 3, clause (8).
Subd. 2. [AMOUNT OF POSTRETIREMENT ADJUSTMENT; PAYMENT.]
(a) For any person receiving an annuity or benefit on November
30, 1989, and entitled to receive a postretirement adjustment
under subdivision 1, the postretirement adjustment is a lump-sum
payment calculated under paragraph (b) or (c).
(b) For coordinated plan annuity or benefit recipients, the
postretirement adjustment in 1989 is $25 for each full year of
allowable service credited to the person by the respective
retirement fund. In 1990 and each following year, the
postretirement adjustment is the amount payable in the preceding
year increased by the same percentage applied to regular
annuities paid from the postretirement fund or, for the
retirement funds specified in subdivision 3, clauses (6), (7),
and (8), by the same percentage applied under the articles of
incorporation and bylaws of these funds.
(c) For basic plan annuity or benefit recipients, the
postretirement adjustment in 1989 is the greater of:
(1) $25 for each full year of allowable service credited to
the person by the respective retirement fund; or
(2) the difference between:
(i) the product of $400 times the number of full years of
allowable service credited to the person by the respective
retirement fund; and
(ii) the sum of the benefits payable to the person from any
Minnesota public employee pension plan, and cash benefits
payable to the person from the Social Security Administration.
In 1990 and each following year, each eligible basic plan
annuity or benefit recipient shall receive the amount received
in the preceding year increased by the same percentage applied
to regular annuities paid from the postretirement fund or, for
the retirement funds specified in subdivision 3, clauses (6),
(7), and (8), by the same percentage applied under the articles
of incorporation and bylaws of these funds.
(d) The postretirement adjustment provided for in this
section must be paid on December 1 to those persons receiving an
annuity or benefit on the preceding November 30. This section
does not authorize the payment of a postretirement adjustment to
an estate if the annuity or benefit recipient dies before the
November 30 eligibility date. The postretirement adjustment
provided for in this section must be paid automatically unless
the intended recipient files a written notice with the
retirement fund requesting that the postretirement adjustment
not be paid or returns the amount of adjustment to the
retirement fund. Written notice of the waiver of the
postretirement adjustment is irrevocable for the year during
which it was made.
Subd. 3. [COVERED RETIREMENT PLANS.] The postretirement
adjustment provided in this section applies to the following
retirement funds:
(1) the general employees retirement plans of the public
employees retirement association;
(2) the public employees police and fire plan of the public
employees retirement association;
(3) the teachers retirement association;
(4) the state patrol retirement plan;
(5) the state employees retirement plan of the Minnesota
state retirement system;
(6) the Minneapolis teachers retirement fund association
established under chapter 354A;
(7) the St. Paul teachers retirement fund association
established under chapter 354A; and
(8) the Duluth teachers retirement fund association
established under chapter 354A.
Sec. 31. [356.43] [SUPPLEMENTAL BENEFIT; LUMP-SUM
PAYMENTS; MINNEAPOLIS EMPLOYEES RETIREMENT FUND.]
Subdivision 1. [ENTITLEMENT.] Any person who is receiving
either an annuity that was computed under the laws in effect
before March 5, 1974, or a "$2 bill and annuity" annuity from
the Minneapolis employees retirement fund is entitled to receive
a supplemental benefit lump-sum payment from the retirement fund
in the amount specified in subdivision 2.
Subd. 2. [AMOUNT OF PAYMENT.] (a) For any person receiving
an annuity or benefit on November 30, 1991, and entitled to
receive a supplemental benefit lump-sum payment under
subdivision 1, the payment is $28 for each full year of
allowable service credited to the person by the retirement fund.
In 1992 and each following year, each eligible benefit
recipient is entitled to receive the amount received in the
preceding year increased by the same percentage applied on the
most recent January 1 to regular annuities paid from the
Minneapolis employees retirement fund.
(b) The payment provided for in this section is payable on
December 1, 1991, to those persons receiving an annuity or
benefit on November 30, 1991. In subsequent years, the payment
must be made on December 1 to those persons receiving an annuity
or benefit on the preceding November 30. This section does not
authorize payment to an estate if the annuity or benefit
recipient dies before the November 30 eligibility date. The
payment provided for in this section must be paid automatically
unless the intended recipient files a written notice with the
retirement fund requesting that it not be paid.
Subd. 3. [STATE APPROPRIATION.] Payments under this
section are the responsibility of the Minneapolis employees
retirement fund. A separate state aid is provided toward the
level dollar amortized cost of the payments. For state fiscal
years 1992 to 2001 inclusive, there is appropriated annually
$550,000 from the general fund to the commissioner of finance to
be added, in quarterly installments, to the annual state
contribution amount determined under section 422A.101,
subdivision 3. After fiscal year 2001, any difference between
the cumulative benefit amounts actually paid under this section
after fiscal year 1991 and the amounts paid to the retirement
fund by the state under this subdivision, plus investment
earnings on the aid, shall be included by the retirement fund
board and the actuary retained by the legislative commission on
pensions and retirement in determining the financial
requirements of the fund and contributions under section
422A.101.
Sec. 32. [356.431] [CONVERSION OF LUMP-SUM POSTRETIREMENT
AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.]
Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT
CONVERSION.] For benefits paid after December 31, 2001, to
eligible persons under sections 356.42 and 356.43, the amount of
the most recent lump-sum benefit payable to an eligible
recipient under sections 356.86 and 356.865 must be divided by
12. The result must be added to the monthly annuity or benefit
otherwise payable to an eligible recipient, must become a
permanent part of the benefit recipient's pension, and must be
included in any pension benefit subject to future increases.
Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA
POSTRETIREMENT INVESTMENT FUND.] Public employee retirement
funds participating in the state board of investment
postretirement investment fund shall transfer the required
reserves for the postretirement conversion under subdivision 1
to the postretirement investment fund by January 31, 2002.
REFUNDS
Sec. 33. [356.44] [PARTIAL PAYMENT OF PENSION PLAN
REFUND.]
(a) Notwithstanding any provision of law to the contrary, a
member of a pension plan listed in section 356.30, subdivision
3, with at least two years of forfeited service taken from a
single pension plan, may repay a portion of all refunds. A
partial refund repayment must comply with this section.
(b) The minimum portion of a refund repayment is one-third
of the total service credit period of all refunds taken from a
single plan.
(c) The cost of the partial refund repayment is the product
of the cost of the total repayment multiplied by the ratio of
the restored service credit to the total forfeited service
credit. The total repayment amount includes interest at the
annual rate of 8.5 percent, compounded annually, from the refund
date to the date repayment is received.
(d) The restored service credit must be allocated based on
the relationship the restored service bears to the total service
credit period for all refunds taken from a single pension plan.
(e) This section does not authorize a public pension plan
member to repay a refund if the law governing the plan does not
authorize the repayment of a refund of member contributions.
Sec. 34. [356.441] [REPAYMENT OF REFUNDS.]
Repayment of a refund and interest on that refund permitted
under laws governing any public pension plan in Minnesota may be
made with funds distributed from a plan qualified under the
federal Internal Revenue Code of 1986, section 401(a), as
amended through December 31, 1988, or an annuity qualified under
the federal Internal Revenue Code of 1986, section 403(a).
Repayment may also be made with funds distributed from an
individual retirement account used solely to receive a
nontaxable rollover from that type of a plan or annuity. The
repaid refund must be separately accounted for as member
contributions not previously taxed. Before accepting any
transfers to which this section applies, the executive director
must require the member to provide written documentation to
demonstrate that the amounts to be transferred are eligible for
a tax-free rollover and qualify for that treatment under the
federal Internal Revenue Code of 1986.
OPTIONAL ANNUITY FORMS
Sec. 35. [356.46] [APPLICATION FOR RETIREMENT ANNUITY;
PROCEDURE FOR ELECTING ANNUITY FORM.]
Subdivision 1. [DEFINITIONS.] As used in this section,
each of the following terms shall have the meaning given.
(a) "Annuity form" means the payment procedure and duration
of a retirement annuity or disability benefit available to a
member of a public pension fund, based on the period over which
a retirement annuity or disability benefit is payable,
determined by the number of persons to whom the retirement
annuity or disability benefit is payable, and the amount of the
retirement annuity or disability benefit which is payable to
each person.
(b) "Joint and survivor optional annuity" means an optional
annuity form which provides a retirement annuity or disability
benefit to a retired member and the spouse of the member on a
joint basis during the lifetime of the retired member and all or
a portion of the original retirement annuity or disability
benefit amount to the surviving spouse in the event of the death
of the retired member.
(c) "Optional annuity form" means an annuity form which is
elected by a member and is not provided automatically as the
standard annuity form of the public pension plan.
(d) "Public pension plan" means a public pension plan as
defined under section 356.615, paragraph (b).
(e) "Retirement annuity" means a series of monthly payments
to which a former or retired member of a public pension fund is
entitled due to attaining a specified age and acquiring credit
for a specified period of service, which includes a retirement
annuity, retirement allowance, or service pension.
(f) "Disability benefit" means a series of monthly payments
to which a former or disabled member of a public pension fund is
entitled due to a physical or mental inability to engage in
specified employment.
Subd. 2. [PROVISION OF INFORMATION ON ANNUITY FORMS.]
Every public pension plan which provides for an annuity form
other than a single life retirement annuity as an option which
can be elected by an active, disabled, or retiring member shall
provide as a part of, or accompanying the annuity application
form, a written statement summarizing the optional annuity forms
which are available, a general indication of the consequences of
selecting one annuity form over another, a calculation of the
actuarial reduction in the amount of the retirement annuity
which would be required for each optional annuity form, and the
procedure to be followed to obtain more information from the
public pension fund concerning the optional annuity forms
provided by the plan.
Subd. 3. [REQUIREMENT OF NOTICE TO MEMBER'S SPOUSE.] (a)
If a public pension plan provides optional retirement annuity
forms which include a joint and survivor optional retirement
annuity form potentially applicable to the surviving spouse of a
member, the executive director of the public pension plan shall
send a copy of the written statement required by subdivision 2
to the spouse of the member before the member's election of an
optional retirement annuity.
(b) Following the election of a retirement annuity by the
member, a copy of the completed retirement annuity application
and retirement annuity beneficiary form, if applicable, must be
sent by the public pension plan to the spouse of the retiring
member. A signed acknowledgment must be required from the
spouse confirming receipt of a copy of the completed retirement
annuity application and retirement annuity beneficiary form,
unless the spouse's signature confirming the receipt is on the
annuity application form. If the required signed acknowledgment
is not received from the spouse within 30 days, the public
pension plan must send another copy of the completed retirement
annuity application and retirement annuity beneficiary form, if
applicable, to the spouse by certified mail with restricted
delivery.
Sec. 36. [356.465] [SUPPLEMENTAL NEEDS TRUST AS OPTIONAL
ANNUITY FORM RECIPIENT.]
Subdivision 1. [INCLUSION AS RECIPIENT.] Notwithstanding
any provision to the contrary of the laws, articles of
incorporation, or bylaws governing a covered retirement plan
specified in subdivision 3, a retiring member may designate a
qualified supplemental needs trust under subdivision 2 as the
remainder recipient on an optional retirement annuity form for a
period not to exceed the lifetime of the beneficiary of the
supplemental needs trust.
Subd. 2. [DEFINITION OF QUALIFIED SUPPLEMENTAL NEEDS
TRUST.] A qualified supplemental needs trust is a trust that:
(1) was established on or after July 1, 1992;
(2) was established solely for the benefit of one person
who has a disability under federal Social Security
Administration supplemental security income or retirement,
survivors, and disability insurance disability determination
standards and who was determined as such before the creation of
the trust;
(3) is funded, in whole or in part, by the primary
recipient of the optional annuity form and, unless the trust is
a Zebley trust, is not funded by the beneficiary, the
beneficiary's spouse, or a person who is required to pay a sum
to or for the trust beneficiary under the terms of litigation or
a litigation settlement;
(4) is established to cover reasonable living expenses and
other basic needs of the disabilitant, in whole or in part, in
instances when public assistance does not provide sufficiently
for these needs;
(5) is not permitted to make disbursement to replace or
reduce public assistance otherwise available;
(6) is irrevocable;
(7) terminates upon the death of the disabled person for
whose benefit it was established; and
(8) is determined by the executive director to be a trust
that contains excluded assets for purposes of the qualification
for public entitlement benefits under the applicable federal and
state laws and regulations.
Subd. 3. [COVERED RETIREMENT PLANS.] The provisions of
this section apply to the following retirement plans:
(1) the general state employees retirement plan of the
Minnesota state retirement system established under chapter 352;
(2) the correctional state employees retirement plan of the
Minnesota state retirement system established under chapter 352;
(3) the state patrol retirement plan established under
chapter 352B;
(4) the legislators retirement plan established under
chapter 3A;
(5) the judges retirement plan established under chapter
490;
(6) the general employees retirement plan of the public
employees retirement association established under chapter 353;
(7) the public employees police and fire plan of the public
employees retirement association established under chapter 353;
(8) the teachers retirement plan established under chapter
354;
(9) the Duluth teachers retirement fund association
established under chapter 354A;
(10) the St. Paul teachers retirement fund association
established under chapter 354A;
(11) the Minneapolis teachers retirement fund association
established under chapter 354A;
(12) the Minneapolis employees retirement plan established
under chapter 422A;
(13) the Minneapolis firefighters relief association
established under chapter 423C;
(14) the Minneapolis police relief association established
under chapter 423B; and
(15) the local government correctional service retirement
plan of the public employees retirement association established
under chapter 353E.
REEMPLOYED ANNUITANT EARNINGS DISPOSITION
Sec. 37. [356.47] [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 section
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 to 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.
MARRIAGE DISSOLUTION RETIREMENT
COVERAGE INFORMATION
Sec. 38. [356.49] [PROVISION OF INFORMATION IN THE EVENT
OF MARRIAGE DISSOLUTION.]
Subdivision 1. [INFORMATION FOR A PENDING MARRIAGE
DISSOLUTION.] (a) Upon receipt of a written request by a person
with access to the data under subdivision 3 who cites this
statute, a public or private pension plan administrator must
provide the court and the parties to a marriage dissolution
action involving a plan member or former plan member with
information regarding pension benefits or rights of the plan
member or former plan member. The pension plan shall provide
this information upon the request of the court or a party to the
action without requiring a signed authorization from the plan
member or former plan member.
(b) The information must include the pension benefits or
rights of the plan member or former plan member as of the first
day of the month following the date of the request, or as of the
end of the previous fiscal year for the plan, and as of the date
of valuation of marital assets under section 518.58, if the
person requesting the information specifies that date. The
information must include the accrued service credit of the
person, the credited salary of the person for the most current
five-year period, a summary of the benefit plan, and any other
information relevant to the calculation of the present value of
the benefits or rights.
Subd. 2. [INFORMATION FOR AN EXISTING DISSOLUTION DECREE.]
If a marriage dissolution decree rendered by a court of
competent jurisdiction prior to August 1, 1987, provided a
procedure for the distribution of future pension plan payments,
upon request the applicable pension plan administrator shall
provide on a timely basis to the court and the parties to the
action, the required information to implement that procedure
without requiring a signed authorization from the plan member or
former plan member.
Subd. 3. [ACCESS TO DATA.] Notwithstanding any provision
of chapter 13 to the contrary, an administrator may release
private or confidential data on individuals to the court, the
parties to a marriage dissolution, their attorneys, and an
actuary appointed under section 518.582, to the extent necessary
to comply with this section, but only if the administrator has
received a copy of the legal petition showing that an action for
marriage dissolution has commenced and a copy of the affidavit
of service showing that the petition has been served on the
responding party to the action.
SERVICE AND SALARY CREDIT UPON
WRONGFUL DISCHARGE
Sec. 39. Minnesota Statutes 2000, section 356.50, is
amended to read:
356.50 [SERVICE AND SALARY CREDIT FROM BACK PAY AWARDS IN
THE EVENT OF WRONGFUL DISCHARGE.]
(a) A person who is wrongfully discharged from public
employment that gave rise to coverage by a public employee
pension plan listed enumerated in section 356.30, subdivision 3,
is entitled to obtain allowable service credit from the
applicable public employee pension plan for the applicable
period caused by the wrongful discharge.
(b) A person is wrongfully discharged for purposes of this
section if:
(1) the person has been determined by a court of competent
jurisdiction or by an arbitrator in binding arbitration,
whichever applies, to have been wrongfully discharged from
public employment;
(2) the person received an award of back pay with respect
to that discharge; and
(3) the award does not include any amount for any lost or
interrupted public pension plan coverage.
(b) (c) To obtain the public pension plan allowable service
credit, the person shall pay the required member contribution
amount. The required member contribution amount is the member
contribution rate or rates in effect for the pension plan during
the period of service covered by the back pay award, applied to
the unpaid gross salary amounts of the back pay award including
reemployment insurance, workers' compensation or wages from
other sources which reduced the back award. No contributions
shall be made under this clause for compensation covered by a
public pension plan listed in section 356.30, subdivision 3, for
employment during the removal period. The person shall pay the
required member contribution amount within 60 days of the date
of receipt of the back pay award, within 60 days of April 14,
1992, or within 60 days of a billing from the retirement fund,
whichever is later.
(c) (d) The public employer who wrongfully discharged the
public employee must pay an employer contribution on the back
pay award. The employer contribution must be based on the
employer contribution rate or rates in effect for the pension
plan during the period of service covered by the back pay award,
applied to the salary amount on which the member contribution
amount was determined under paragraph (b) (c). Interest on both
the required member and employer contribution amount must be
paid by the employer at the annual compound rate of 8.5 percent
per year, expressed monthly, between the date the contribution
amount would have been paid to the date of actual payment. The
employer payment must be made within 30 days of the payment
under paragraph (b) (c).
Sec. 40. Minnesota Statutes 2000, section 356.55, as
amended by Laws 2001, First Special Session chapter 10, article
6, section 16, is amended to read:
356.55 [PRIOR SERVICE CREDIT PURCHASE PAYMENT AMOUNT
DETERMINATION PROCEDURE.]
Subdivision 1. [APPLICATION.] (a) Unless the prior service
credit purchase authorization special law or general statute
provision explicitly specifies a different purchase payment
amount determination procedure, this section governs the
determination of the prior service credit purchase payment
amount of any prior service credit purchase.
(b) The purchase payment amount determination procedure
must recognize any service credit accrued to the purchaser in a
pension plan listed enumerated in section 356.30, subdivision 3.
(c) Any service credit in a Minnesota defined benefit
public employee pension plan available to be reinstated by the
purchaser through the repayment of a refund of member or
employee contributions previously received must be repaid in
full before any purchase of prior service credit payment is made
under this section.
Subd. 2. [DETERMINATION.] (a) Unless the prior service
credit purchase minimum purchase payment amount determined under
paragraph (d) is greater, the prior service credit purchase
amount is the result obtained by subtracting the amount
determined under paragraph (c) from the amount determined under
paragraph (b).
(b) The present value of the unreduced single life
retirement annuity, with the purchase of the additional service
credit included, must be calculated as follows:
(1) the age at first eligibility for an unreduced single
life retirement annuity, including the purchase of the
additional service credit, must be determined;
(2) the length of total service credit, including the
period of the purchase of the additional service credit, at the
age determined under clause (1) must be determined;
(3) the highest five successive years average salary at the
age determined under clause (1), assuming five percent annual
compounding salary increases from the most current annual salary
amount at the age determined under clause (1), must be
determined;
(4) using the benefit accrual rate or rates applicable to
the prospective purchaser of the service credit based on the
prospective purchaser's actual date of entry into covered
service, the length of service determined under clause (2), and
the final average salary determined under clause (3), the annual
unreduced single life retirement annuity amount must be
determined;
(5) the actuarial present value of the projected annual
unreduced single life retirement annuity amount determined under
clause (4) at the age determined under clause (1), using the
same actuarial factor that the plan would use to determine
actuarial equivalence for optional annuity forms and related
purposes, must be determined; and
(6) the discounted value of the amount determined under
clause (5) to the date of the prospective purchase, using an
interest rate of 8.5 percent and no mortality probability
decrement, must be determined.
(c) The present value of the unreduced single life
retirement annuity, without the purchase of the additional
service credit included, must be calculated as follows:
(1) the age at first eligibility for an unreduced single
life retirement annuity, not including the purchase of
additional service credit, must be determined;
(2) the length of accrued service credit, without the
period of the purchase of the additional service credit, at the
age determined under clause (1), must be determined;
(3) the highest five successive years average salary at the
age determined under clause (1), assuming five percent annual
compounding salary increases from the most current annual salary
amount to the age determined under clause (1), must be
determined;
(4) using the benefit accrual rate or rates applicable to
the prospective purchaser of the service credit based on the
prospective purchaser's actual date of entry into covered
service the length of service credit determined under clause
(2), and the final average salary determined under clause (3),
the annual unreduced single life retirement annuity amount must
be determined;
(5) the actuarial present value of the projected annual
unreduced single life retirement annuity amount determined under
clause (4) at the age determined under clause (1), using the
same actuarial factor that the plan would use to determine
actuarial equivalence for optional annuity forms and related
purposes, must be determined;
(6) the discounted value of the amount determined under
clause (5) to the date of the prospective purchase, using an
interest rate of 8.5 percent and no mortality probability
decrement, must be determined; and
(7) the net value of the discounted value determined under
clause (6), must be determined by applying a service ratio,
where the numerator is the total length of credited service
determined under paragraph (b), clause (2), reduced by the
period of the additional service credit proposed to be
purchased, and where the denominator is the total length of
service credit determined under clause (2).
(d) The minimum prior service credit purchase payment
amount is the amount determined by multiplying the most current
annual salary of the prospective purchaser by the combined
current employee, employer, and any additional employer
contribution rates for the applicable pension plan and by
multiplying that result by the number of years of service or
fractions of years of service of the potential service credit
purchase.
Subd. 3. [SOURCE OF DETERMINATION.] The prior service
credit purchase payment amounts under subdivision 2 must be
calculated by the chief administrative officer of the public
pension plan using a prior service credit purchase payment
amount determination process that has been verified for accuracy
and consistency under this section by the commission-retained
actuary. That verification must be in writing and must occur
before the first prior service credit purchase for the plan
under this section is accepted and every five years thereafter
or whenever the preretirement interest rate, postretirement
interest rate, payroll growth, or mortality actuarial assumption
for the applicable pension plan is modified under section
356.215, whichever occurs first.
Subd. 4. [PRIOR SERVICE CREDIT PURCHASE PROCESSING FEE.] A
public pension plan may establish a fee to be charged to the
prospective purchaser for processing a prior service credit
purchase application and the prior service credit purchase
payment amount calculation. The fee must be established by the
governing board of the pension plan and must be uniform for
comparable service credit purchase situations or actuarial
calculation requests. The prior service credit purchase
processing fee structure must be published by the chief
administrative officer of the applicable retirement plan in the
State Register.
Subd. 5. [PAYMENT RESPONSIBILITY; EMPLOYER OPTION.] Unless
the prior service credit purchase authorization special law or
general statute provision explicitly specifies otherwise, the
prior service credit purchase payment amount determined under
subdivision 2 is payable by the purchaser, but. However, the
former employer of the purchaser or the current employer of the
purchaser may, at its discretion, pay all or a portion of the
purchase payment amount in excess of an amount equal to the
employee contribution rate or rates in effect during the prior
service period applied to the actual salary rates in effect
during the prior service period, plus annual compound interest
at the rate of 8.5 percent from the date on which the
contributions would have been made if made contemporaneous with
the service period to the date on which the payment is actually
made.
Subd. 6. [REPORT ON PRIOR SERVICE CREDIT PURCHASES.] (a)
As part of the regular data reporting provided to the consulting
actuary retained by the legislative commission on pensions and
retirement annually, the chief administrative officer of each
public pension plan that has accepted a prior service credit
purchase payment under this section shall report for any
purchase, the purchaser, the purchaser's employer, the age of
the purchaser, the period of the purchase, the purchaser's
prepurchase accrued service credit, the purchaser's postpurchase
accrued service credit, the purchaser's prior service credit
payment, the prior service credit payment made by the
purchaser's employer, and the amount of the additional benefit
or annuity purchased.
(b) As a supplemental report to the regular annual
actuarial valuation for the applicable public pension plan
prepared by the consulting actuary retained by the legislative
commission on pensions and retirement, there must be the actuary
shall provide a comparison for each purchase showing the total
prior service credit payment received from all sources and the
increased public pension plan actuarial accrued liability
resulting from each purchase.
Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION
PROCEDURE.] (a) This section expires and is repealed on July 1,
2003.
(b) Authority for any public pension plan to accept a prior
service credit payment that is calculated in a timely fashion
under this section expires on October 1, 2003.
Sec. 41. Minnesota Statutes 2000, section 356.551, is
amended to read:
356.551 [POST JULY 1, 2001 2003, PRIOR SERVICE CREDIT
PURCHASE PAYMENT AMOUNT DETERMINATION PROCEDURE.]
(a) Subdivision 1. [APPLICATION.] Unless the prior service
credit purchase authorization special law or general statute
provision explicitly specifies a different purchase payment
amount determination procedure, and if section 356.55 has
expired, this section governs the determination of the prior
service credit purchase payment amount of any prior service
credit purchase.
(b) Subd. 2. [DETERMINATION.] The prior service credit
purchase amount is an amount equal to the actuarial present
value, on the date of payment, as calculated by the chief
administrative officer of the pension plan and reviewed by the
actuary retained by the legislative commission on pensions and
retirement, of the amount of the additional retirement annuity
obtained by the acquisition of the additional service credit in
this section. Calculation of this amount must be made using the
preretirement interest rate applicable to the public pension
plan specified in section 356.215, subdivision 4d, and the
mortality table adopted for the public pension plan. The
calculation must assume continuous future service in the public
pension plan until, and retirement at, the age at which the
minimum requirements of the fund for normal retirement or
retirement with an annuity unreduced for retirement at an early
age, including section 356.30, are met with the additional
service credit purchased. The calculation must also assume a
full-time equivalent salary, or actual salary, whichever is
greater, and a future salary history that includes annual salary
increases at the applicable salary increase rate for the plan
specified in section 356.215, subdivision 4d. Payment must be
made in one lump sum within one year of the prior service credit
authorization. Payment of the amount calculated under this
section must be made by the applicable eligible person.
However, the current employer or the prior employer may, at its
discretion, pay all or any portion of the payment amount that
exceeds an amount equal to the employee contribution rates in
effect during the period or periods of prior service applied to
the actual salary rates in effect during the period or periods
of prior service, plus interest at the rate of 8.5 percent a
year compounded annually from the date on which the
contributions would otherwise have been made to the date on
which the payment is made. If the employer agrees to payments
under this paragraph subdivision, the purchaser must make the
employee payments required under this paragraph subdivision
within 290 days of the prior service credit authorization. If
that employee payment is made, the employer payment under
this paragraph subdivision must be remitted to the chief
administrative officer of the public pension plan within 60 days
of receipt by the chief administrative officer of the employee
payments specified under this paragraph subdivision.
(c) Subd. 3. [DOCUMENTATION.] The prospective purchaser
must provide any relevant documentation required by the chief
administrative officer of the public pension plan to determine
eligibility for the prior service credit under this section.
(d) Subd. 4. [PAYMENT PRECONDITION FOR CREDIT GRANT.]
Service credit for the purchase period must be granted by the
public pension plan to the purchaser upon receipt of the
purchase payment amount specified in paragraph (b) subdivision 2.
Sec. 42. Minnesota Statutes 2001 Supplement, section
356.555, is amended to read:
356.555 [PARENTAL OR FAMILY LEAVE SERVICE CREDIT PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.]
(a) Notwithstanding any provision to the contrary of the laws
governing a covered pension plan enumerated in subdivision 4, a
member of the pension plan who has at least three years of
allowable service covered by the applicable pension plan and who
was granted by the employer a parental leave of absence as
defined in paragraph (b), or who was granted by the employer a
family leave of absence as defined in paragraph (c), or who had
a parental or family-related break in employment, as defined in
paragraph (d), for which the person did not previously receive
service credit or for which the person did not receive or
purchase service credit from another defined benefit public
employee pension plan, is entitled to purchase the actual period
of the leave or of the break in service, up to five years, of
allowable service credit in the applicable retirement plan. The
purchase payment amount is governed by section 356.55.
(b) For purposes of this section, a parental leave of
absence is a temporary period of interruption of or separation
from active employment for the purposes of handling maternity or
paternity duties that has been approved by the employing unit
and that includes the right of reinstatement to employment.
(c) For purposes of this section, a family leave of absence
is a family leave under United States Code, title 42, section
12631, as amended.
(d) For purposes of this section, a parental or
family-related break in employment is a period following a
termination of active employment primarily for the purpose of
the birth of a child, the adoption of a child, or the provision
of care to a near relative or in-law, after which the person
returned to the prior employing unit or to an employing unit
covered by the same pension plan that provided retirement
coverage immediately prior to the termination of employment.
Subd. 2. [APPLICATION AND DOCUMENTATION.] (a) A person who
desires to purchase service credit under subdivision 1 must
apply for the service credit purchase with the chief
administrative officer of the enumerated pension plan.
(b) The application must include all necessary
documentation of the qualifications of the person to make the
purchase, signed written permission to allow the chief
administrative officer to request and receive necessary
verification of all applicable facts and eligibility
requirements, and any other relevant information that the chief
administrative officer may require.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula
service credit in the applicable enumerated pension plan for the
purchase period must be granted to the purchaser upon receipt of
the purchase payment amount calculated under section 356.55.
Payment of the purchase amount must be made before the person
retires.
Subd. 4. [COVERED PENSION PLANS.] This section applies to
the following pension plans:
(1) the general state employees retirement plan governed by
chapter 352;
(2) the correctional state employees retirement plan
governed by chapter 352;
(3) the general public employees retirement plan of the
public employees retirement association governed by chapter 353;
(4) the public employees police and fire plan governed by
chapter 353;
(5) the teachers retirement plan governed by chapter 354;
(6) the Minneapolis teachers retirement fund association
governed by chapter 354A;
(7) the Saint Paul teachers retirement fund association
governed by chapter 354A;
(8) the Duluth teachers retirement fund association
governed by chapter 354A;
(9) the Minneapolis employees retirement plan governed by
chapter 422A;
(10) the Minneapolis police relief association governed by
chapter 423B; and
(11) the Minneapolis fire department relief association
governed by sections 69.25 to 69.53 and augmented by Laws 1959,
chapters 213, 491, and 568, and other special local legislation
chapter 423C.
COVERED SALARY LIMITATION
Sec. 43. Minnesota Statutes 2000, section 356.611, is
amended to read:
356.611 [LIMITATION ON PUBLIC EMPLOYEE SALARIES FOR PENSION
PURPOSES.]
Subdivision 1. [STATE SALARY LIMITATIONS.] (a)
Notwithstanding any provision of law, bylaws, articles of
incorporation, retirement and disability allowance plan
agreements, or retirement plan contracts to the contrary, the
covered salary for pension purposes for a plan participant of a
covered retirement fund under enumerated in section 356.30,
subdivision 3, may not exceed 95 percent of the salary
established for the governor under section 15A.082 at the time
the person received the salary.
(b) This section does not apply to a salary paid:
(1) to the governor;
(2) to an employee of a political subdivision in a position
that is excluded from the limit as specified under section
43A.17, subdivision 9; or
(3) to a state employee in a position for which the
commissioner of employee relations has approved a salary rate
that exceeds 95 percent of the governor's salary.
(c) The limited covered salary determined under this
section must be used in determining employee and employer
contributions and in determining retirement annuities and other
benefits under the respective covered retirement fund and under
this chapter.
Subd. 2. [FEDERAL COMPENSATION LIMITS.] For members first
contributing to a covered pension plan covered under enumerated
in section 356.30, subdivision 3, on or after July 1, 1995,
compensation in excess of the limitation set forth in Internal
Revenue Code 401(a)(17) shall may not be included for
contribution and benefit computation purposes. The compensation
limit set forth in Internal Revenue Code 401(a)(17) on June 30,
1993, shall apply applies to members first contributing before
July 1, 1995.
MEMBER CONTRIBUTION EMPLOYER PICK UP
Sec. 44. Minnesota Statutes 2001 Supplement, section
356.62, is amended to read:
356.62 [PAYMENT OF EMPLOYEE CONTRIBUTION.]
(a) For purposes of any public pension plan, as defined in
section 365.615, paragraph (b), each employer shall pick up the
employee contributions required pursuant to law or the pension
plan for all salary payable after December 31, 1982. If the
United States Treasury department rules that pursuant to under
section 414(h) of the Internal Revenue Code of 1986, as amended
through December 31, 1992, that these picked up contributions
are not includable in the employee's adjusted gross income until
they are distributed or made available, then these picked up
contributions shall must be treated as employer contributions in
determining tax treatment pursuant to under the Internal Revenue
Code of 1986, as amended through December 31, 1992, and the
employer shall discontinue withholding federal income taxes on
the amount of these contributions. The employer shall pay these
picked up contributions from the same source of funds as is used
to pay the salary of the employee. The employer shall pick up
these employee contributions by a reduction in the cash salary
of the employee.
(b) Employee contributions that are picked up shall must be
treated for all purposes of the public pension plan in the same
manner and to the same extent as employee contributions that
were made prior to the date on which the employee contributions
pick up began. The amount of the employee contributions that
are picked up shall must be included in the salary upon which
retirement coverage is credited and retirement and survivor's
benefits are determined. For purposes of this section,
"employee" means any person covered by a public pension plan.
For purposes of this section, "employee contributions" include
any sums deducted from the employee's salary or wages or
otherwise paid in lieu thereof, regardless of whether they are
denominated contributions by the public pension plan.
(c) For any calendar year in which withholding has been
reduced pursuant to under this section, the employing unit shall
supply each employee and the commissioner of revenue with an
information return indicating the amount of the employer's
picked-up contributions for the calendar year that were not
subject to withholding. This return shall must be provided to
the employee not later than January 31 of the succeeding
calendar year. The commissioner of revenue shall prescribe the
form of the return and the provisions of section 289A.12 shall
must apply to the extent not inconsistent with the provisions of
this section.
PENSION ASSET AND INVESTMENT
LIMITATIONS
Sec. 45. [356.63] [LIMITATION ON USE OF PUBLIC PENSION
PLAN ASSETS.]
(a) Money held by or credited to a public pension plan as
assets, including employer and employee contributions, state
aid, appropriations from the state or a governmental
subdivision, and accrued earnings on investments, constitutes a
dedicated fund. The dedicated fund may be used exclusively to
pay retirement annuities, service pensions, disability benefits,
survivor benefits, refunds of contributions, or other benefits
provided under the benefit plan document or documents governing
the public pension plan, and to pay reasonable administrative
expenses approved by the governing board of the public pension
plan or by another appropriate authority. No assets of a public
pension plan may be loaned or transferred to the state or a
governmental subdivision or be used to amortize an unfunded
actuarial accrued liability in another public pension plan or
fund, whether or not the plan providing the assets consolidates
or has consolidated with the plan receiving the assets. Nothing
in this section prohibits a public pension plan or the state
board of investment from investing the assets of a plan as
authorized by law, including the investment of the assets of
public pension plans by the state board of investment in a
commingled investment fund.
(b) A public pension plan for purposes of this section
means a pension plan or fund specified in section 356.20,
subdivision 2, or 356.30, subdivision 3, or a retirement or
pension plan or fund, including a supplemental retirement plan
or fund, established, maintained, or supported by a governmental
subdivision or public body whose revenues are derived from
taxation, fees, assessments, or other public sources.
Sec. 46. [356.64] [REAL ESTATE INVESTMENTS.]
(a) Notwithstanding any law to the contrary, any public
pension plan whose assets are not invested by the state board of
investment may invest its funds in Minnesota situs nonfarm real
estate ownership interests or loans secured by mortgages or
deeds of trust if the investment is consistent with section
356A.04.
(b) Except to the extent authorized in the case of the
Minneapolis employees retirement fund under section 422A.05,
subdivision 2c, paragraph (a), an investment otherwise
authorized by this section must also comply with the
requirements and limitations of section 11A.24, subdivision 6.
ABANDONED PENSION FUND AMOUNTS
Sec. 47. Minnesota Statutes 2001 Supplement, section
356.65, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, unless the context clearly indicates otherwise, each of
the following terms shall have has the meanings meaning given to
them it:
(a) "Public pension fund" means any public pension plan as
defined in section 356.615 356.63, paragraph (b), and any
Minnesota volunteer firefighters relief association which is
established pursuant to under chapter 424A and governed pursuant
to under sections 69.771 to 69.776.
(b) "Unclaimed public pension fund amounts" means any
amounts representing accumulated member contributions, any
outstanding unpaid annuity, service pension or other retirement
benefit payments, including those made on warrants issued by the
commissioner of finance, which have been issued and delivered
for more than six months prior to the date of the end of the
fiscal year applicable to the public pension fund, and any
applicable interest to the credit of:
(1) an inactive or former member of a public pension fund
who is not entitled to a defined retirement annuity and who has
not applied for a refund of those amounts within five years
after the last member contribution was made; or
(2) a deceased inactive or former member of a public
pension fund if no survivor is entitled to a survivor benefit
and no survivor, designated beneficiary or legal representative
of the estate has applied for a refund of those amounts within
five years after the date of death of the inactive or former
member.
Sec. 48. Minnesota Statutes 2000, section 356.65,
subdivision 2, is amended to read:
Subd. 2. [DISPOSITION OF ABANDONED AMOUNTS.] Any unclaimed
public pension fund amounts existing in any public pension
fund shall be are presumed to be abandoned, but shall are not
be subject to the provisions of sections 345.31 to 345.60.
Unless the benefit plan of the public pension fund specifically
provides for a different disposition of unclaimed or abandoned
funds or amounts, any unclaimed public pension fund
amounts shall cancel and shall must be credited to the public
pension fund. If the unclaimed public pension fund amount
exceeds $25 and the inactive or former member again becomes a
member of the applicable public pension fund plan or applies for
a retirement annuity pursuant to under section 3A.12, 352.72,
352B.30, 352C.051, 353.71, 354.60, 356.30, or 422A.16,
subdivision 8, whichever is applicable, applies, the canceled
amount shall must be restored to the credit of the person.
HEALTH INSURANCE WITHHOLDING
Sec. 49. Minnesota Statutes 2000, section 356.87, is
amended to read:
356.87 [HEALTH INSURANCE WITHHOLDING.]
(a) Upon authorization of a person entitled to receive a
retirement annuity, disability benefit or survivor benefit, the
executive director of a public pension fund listed enumerated in
section 356.20, subdivision 2, shall withhold health insurance
premium amounts from the retirement annuity, disability benefit
or survivor benefit, and shall pay the premium amounts to the
public employees insurance program.
(b) The public employees insurance program shall reimburse
a public pension fund for the administrative expense of
withholding the premium amounts and shall assume liability for
the failure of a public pension fund to properly withhold the
premium amounts.
RETIREMENT PLAN
ADMINISTRATION
Sec. 50. [356B.05] [PUBLIC PENSION ADMINISTRATION
LEGISLATION.]
(a) Proposed administrative legislation recommended by or
on behalf of the Minnesota state retirement system, the public
employees retirement association, the teachers retirement
association, the Minneapolis employees retirement fund, or a
first class city teachers retirement fund association must be
presented to the legislative commission on pensions and
retirement, the state and local governmental operations
committee of the senate, and the governmental operations and
veterans affairs policy committee of the house of
representatives on or before October 1 of each year in order for
the proposed administrative legislation to be acted upon during
the upcoming legislative session. The executive director or the
deputy executive director of the legislative commission on
pensions and retirement shall provide written comments on the
proposed administrative provisions to the public pension plans
by November 15 of each year.
(b) Proposed administrative legislation recommended by or
on behalf of a public employee pension plan or system under
paragraph (a) must address provisions:
(1) authorizing allowable service credit for leaves of
absence and related circumstances;
(2) governing offsets or deductions from the amount of
disability benefits;
(3) authorizing the purchase of allowable service credit
for prior uncredited periods;
(4) governing subsequent employment earnings by reemployed
annuitants; and
(5) authorizing retroactive effect for retirement annuity
or benefit applications.
(c) Where possible and desirable, taking into account the
differences among the public pension plans in existing law and
the unique characteristics of the individual public pension fund
memberships, uniform provisions relating to paragraph (b) for
all applicable public pension plans must be presented for
consideration during the legislative session. Supporting
documentation setting forth the policy rationale for each set of
uniform provisions must accompany the proposed administrative
legislation.
Sec. 51. [356B.10] [PUBLIC PENSION FACILITIES.]
Subdivision 1. [DEFINITIONS.] (a) The definitions in this
subdivision apply to this section.
(b) "Boards" mean the board of directors of the Minnesota
state retirement system, the board of trustees of the public
employees retirement association, and the board of trustees of
the teachers retirement association.
(c) "Commissioner" means the commissioner of administration.
Subd. 2. [BUILDING; RELATED FACILITIES.] (a) The
commissioner of administration may provide a building and
related facilities to be jointly occupied by the board of
directors of the Minnesota state retirement system, the board of
trustees of the public employees retirement association, and the
board of trustees of the teachers retirement association for the
administration of their public pension systems.
(b) Design of the facilities is not subject to section
16B.33. The competitive acquisition process set forth in
chapter 16C does not apply if the process set forth in
subdivision 3 is followed.
(c) The boards and the commissioner must submit the plans
for a public pension facility under this section to the chair of
the house ways and means committee and to the chair of the
senate state government finance committee for their approval
before the plans are implemented.
Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner
may enter into a contract for facilities with a contractor to
furnish the architectural, engineering, and related services as
well as the labor, materials, supplies, equipment, and related
construction services on the basis of a request for
qualifications and competitive responses received through a
request for proposals process that must include the items listed
in paragraphs (b) to (i).
(b) Before issuing a request for qualifications and a
request for proposals, the commissioner, with the assistance of
the boards, shall prepare performance criteria and
specifications that include:
(1) a general floor plan or layout indicating the general
dimensions of the public building and space requirements;
(2) design criteria for the exterior and site area;
(3) performance specifications for all building systems and
components to ensure quality and cost efficiencies;
(4) conceptual floor plans for systems space;
(5) preferred types of interior finishes, styles of
windows, lighting and outlets, doors, and features such as
built-in counters and telephone wiring;
(6) mechanical and electrical requirements;
(7) special interior features required; and
(8) a completion schedule.
(c) The commissioner shall first solicit statements of
qualifications from eligible contractors and select more than
one qualified contractor based upon experience, technical
competence, past performance, capability to perform, and other
appropriate facts. Contractors selected under this process must
be, employ, or have as a partner, member, coventurer, or
subcontractor, persons licensed and registered under chapter 326
to provide the services required to design and complete the
project. The commissioner does not have to select any of the
respondents if none reasonably fulfill the criteria set forth in
this paragraph.
(d) The contractors selected shall be asked to respond to a
request for proposals. Responses must include site plans,
design concept, elevation, statement of material to be used,
floor layouts, a detailed development budget, and a total cost
to complete the project. The proposal must indicate that the
contractor obtained at least two proposals from subcontractors
for each item of work and must set forth how the subcontractors
were selected. The commissioner, with the assistance of the
boards, shall evaluate the proposals based upon design, cost,
quality, aesthetics, and the best overall value to the state
pension funds. The commissioner need not select any of the
proposals submitted and reserves the right to reject any and all
proposals, and may terminate the process or revise the request
for proposals and solicit new proposals if the commissioner
determines that the best interests of the pension funds would be
better served by doing so. Proposals submitted are nonpublic
data until the contract is awarded.
(e) The contractor selected must comply with sections
574.26 to 574.261. Before executing a final contract, the
contractor selected shall certify a firm construction price and
completion date.
(f) The commissioner may consider building sites in the
city of St. Paul and surrounding suburbs.
(g) Any land, building, or facility leased, constructed, or
acquired and any leasehold interest acquired under this section
must be held by the state in trust for the three retirement
systems as tenants in common. Each retirement system fund must
consider its interest as a fixed asset of its pension fund in
accordance with governmental accounting standards.
(h) The commissioner may lease to another governmental
subdivision, to a private company under contract with the state
board of investment, or with the board of directors of the
Minnesota state retirement system, whichever applies, to provide
deferred compensation services under section 352.96, any portion
of the funds' building and lands that is not required for their
direct use upon terms and conditions they deem to be in the best
interest of the pension funds. Any income accruing from the
rentals must be separately accounted for and utilized to offset
ongoing administrative expenses and any excess must be carried
forward for future administrative expenses. The commissioner
may also enter into lease agreements for the establishment of
satellite offices should the boards find them to be necessary in
order to assure their members reasonable access to their
services. The commissioner may lease under section 16B.24 any
portion of the facilities not required for the direct use of the
boards.
(i) The boards shall formulate and adopt a written working
agreement that sets forth the nature of each retirement system's
ownership interest, the duties and obligations of each system
toward the construction, operation, and maintenance costs of its
facilities, and identifies one retirement fund to serve as
manager for operating and maintenance purposes. The boards may
contract with independent third parties for maintenance-related
activities, services, and supplies, and may use the services of
the department of administration where economically feasible to
do so. If the boards cannot agree or resolve a dispute about
operations or maintenance of the facilities, they may request
the commissioner of administration to appoint a representative
from the department's real estate management division to serve
as arbitrator of the dispute with authority to issue a written
resolution of the dispute.
Subd. 4. [REVENUE BONDS.] The commissioner of finance, on
request of the governor, may sell and issue revenue bonds in an
aggregate principal amount up to $38,000,000 to achieve the
purposes described in subdivisions 1 and 2, plus the amount
needed to pay issuance costs and interest costs and to establish
necessary reserves to secure the bonds. The commissioner of
finance may issue bonds for the purpose of refunding bonds
issued under this subdivision. The bonds may be sold and issued
on terms and in a manner the commissioner of finance determines
to be in the best interests of the state. The proceeds of the
bonds must be credited to a bond proceeds account in the pension
building fund which the commissioner of finance must create in
the state treasury.
Subd. 5. [SECURITY.] The boards may pledge any or all
assets of the boards as security for the bonds. The bonds and
the interest on them must be paid solely from and secured by all
assets of the boards pledged and appropriated for these purposes
to the debt service fund created in subdivision 6 and any
investment income on the fund and any reserve established for
this purpose. The bonds are not public debt, and the full
faith, credit, and taxing powers of the state are not pledged
for their payment. The bonds and the interest on them must not
be paid, directly or indirectly, in whole or in part, from a tax
of statewide application on any class of property, income,
transaction, or privilege.
Subd. 6. [DEBT SERVICE FUND.] There is established in the
state treasury a separate and special pension building debt
service fund. Money in the funds managed by the boards is
appropriated to the boards for transfer to the pension building
debt service fund. Money appropriated and transferred to the
fund and investment income on it on hand or required to be
transferred to the fund must be used and is irrevocably
appropriated to pay when due the principal of and interest on
the bonds authorized in subdivision 4.
Subd. 7. [COVENANTS; AGREEMENTS.] The commissioner of
finance may, for and on behalf of the state, enter into
covenants and agreements not inconsistent with subdivisions 1 to
6 as may be necessary or desirable to facilitate the sale and
issuance of the bonds on terms favorable to the state,
including, but not limited to, covenants and agreements relating
to the payment of and security for the bonds, tax exemption, and
disclosure of information required by federal and state
securities laws. The covenants and agreements of the
commissioner of finance constitute an enforceable contract of
the state and the state pledges and agrees with the holders of
any bonds that the state will not limit or alter the rights
vested in the commissioner of finance to fulfill the terms of
the covenants or agreements made with the holders of the bonds,
or in any way impair the rights and remedies of the holders
until the bonds, together with the interest on them, with
interest on any unpaid installments of interest, and all costs
and expenses in connection with any action or proceeding by or
on behalf of the holders, are fully met and discharged. The
commissioner of finance may include this pledge and agreement of
the state in any covenant or agreement with the holders of the
bonds. Sections 16A.672 and 16A.675 apply to the bonds.
Sec. 52. [CROSS-REFERENCE CHANGES.]
In the next and subsequent editions of Minnesota Statutes,
the revisor of statutes shall, in each section indicated in
column A, replace the cross-reference specified in column B with
the cross-reference set forth in column C:
column A column B column C
3.751, subd. 1 356.89 356B.10
3A.02, subd. 1 356.215, subd. 4d 356.215, subd. 8
3A.02, subd. 4 356.215, subd. 4d 356.215, subd. 8
3A.11, subd. 1 356.215, subd. 4d 356.215, subd. 8
11A.18, subd. 6 356.215, subd. 4d 356.215, subd. 8
11A.18, subd. 9 356.215, subd. 4d 356.215, subd. 8
11A.18, subd. 11 356.215, subd. 4d 356.215, subd. 8
13.631, subd. 2 356.80 356.49
69.77, subd. 2b 356.215, subds. 4 356.215, subds. 4 to 15
to 4k
69.77, subd. 2b 356.215, subd. 4d 356.215, subd. 8
69.773, subd. 2 356.215, subd. 4d 356.215, subd. 8
69.773, subd. 4 356.215, subd. 4d 356.215, subd. 8
352.01, subd. 12 356.215, subd. 4d 356.215, subd. 8
352.115, subd. 3 356.119, subd. 1 356.315, subd. 1
352.115, subd. 3 356.119, subd. 2 356.315, subd. 2
352.115, subd. 10 356.58 356.47
352.119, subd. 2 356.215, subd. 4d 356.215, subd. 8
352.72, subd. 2 356.215, subd. 4d 356.215, subd. 8
352.87, subd. 3 356.119, subd. 2a 356.315, subd. 2a
352.91, subd. 5 356.215, subd. 4d 356.215, subd. 8
352.93, subd. 2 356.119, subd. 5 356.315, subd. 5
352.95, subd. 1 356.119, subd. 5 356.315, subd. 5
352B.08, subd. 2 356.119, subd. 6 356.315, subd. 6
352B.08, subd. 3 356.215, subd. 4d 356.215, subd. 8
352B.10, subd. 1 356.119, subd. 6 356.315, subd. 6
352B.26, subd. 3 356.215, subd. 4d 356.215, subd. 8
352B.30, subd. 4 356.215, subd. 4d 356.215, subd. 8
352C.031, subd. 4 356.215, subd. 4d 356.215, subd. 8
352C.033 356.215, subd. 4d 356.215, subd. 8
353.01, subd. 14 356.215, subd. 4d 356.215, subd. 8
353.03, subd. 3 356.215, subd. 4, 356.215, subd. 8
clause (4)
353.271, subd. 2 356.215, subd. 4d 356.215, subd. 8
353.29, subd. 3 356.119, subd. 3 356.315, subd. 3
353.29, subd. 3 356.119, subd. 4 356.315, subd. 4
353.29, subd. 3 356.119, subd. 1 356.315, subd. 1
353.29, subd. 3 356.119, subd. 2 356.315, subd. 2
353.29, subd. 4 356.371, subd. 3 356.46, subd. 3
353.37, subd. 3a 356.58 356.47
353.651, subd. 3 356.119, subd. 6 356.315, subd. 6
353.656, subd. 1 356.119, subd. 6 356.315, subd. 6
353.665, subd. 8 356.215, subd. 4d 356.215, subd. 8
353.71, subd. 2 356.215, subd. 4d 356.215, subd. 8
353A.08, subd. 1 356.215, subd. 4d 356.215, subd. 8
353A.08, subd. 2 356.215, subd. 4d 356.215, subd. 8
353A.09, subd. 2 356.215, subd. 4d 356.215, subd. 8
353A.09, subd. 5 356.215, subd. 4d 356.215, subd. 8
353E.04, subd. 3 356.119, subd. 5a 356.315, subd. 5a
353E.06, subd. 1 356.119, subd. 5a 356.315, subd. 5a
354.05, subd. 7 356.215, subd. 4d 356.215, subd. 8
354.07, subd. 1 356.215, subd. 4d 356.215, subd. 8
354.44, subd. 2 356.215, subd. 4d 356.215, subd. 8
354.44, subd. 5 356.58 356.47
354.44, subd. 6 356.119, subd. 1 356.315, subd. 1
354.44, subd. 6 356.119, subd. 2 356.315, subd. 2
354.44, subd. 6 356.119, subd. 3 356.315, subd. 3
354.44 356.119 356.315
354.45, subd. 2 356.215, subd. 4d 356.215, subd. 8
354.48, subd. 3 356.215, subd. 4d 356.215, subd. 8
354.55, subd. 11 356.215, subd. 4d 356.215, subd. 8
354.63, subd. 2 356.215, subd. 4d 356.215, subd. 8
354A.011, subd. 3 356.215, subd. 4d 356.215, subd. 8
354A.026 356.215, subd. 4g 356.215, subd. 11
354A.105 356.215, subd. 4d 356.215, subd. 8
354A.12, subd. 1a 356.215, subd. 4d 356.215, subd. 8
354A.31, subd. 1a 356.371, subd. 3 356.46, subd. 3
354A.31, subd. 3 356.58 356.47
354A.31, subd. 4 356.119, subd. 1 356.315, subd. 1
354A.31, subd. 4 356.119, subd. 2 356.315, subd. 2
354A.31, subd. 4a 356.119, subd. 1 356.315, subd. 1
354A.31, subd. 4a 356.119, subd. 2 356.315, subd. 2
354A.34 356.215, subd. 4d 356.215, subd. 8
422A.01, subd. 6 356.215, subd. 4d 356.215, subd. 8
422A.06, subd. 5 356.215, subd. 4d 356.215, subd. 8
422A.08, subd. 5a 356.215, subd. 4d 356.215, subd. 8
422A.101, subd. 3 356.865 356.43
422A.15, subd. 2 356.215, subd. 4d 356.215, subd. 8
422A.15, subd. 3 356.215, subd. 4d 356.215, subd. 8
422A.16, subd. 2 356.215, subd. 4d 356.215, subd. 8
422A.17 356.215, subd. 4d 356.215, subd. 8
422A.23, subd. 12 356.215, subd. 4d 356.215, subd. 8
423A.02, subd. 1 356.215, subd. 4, 356.215, subd. 8
clause (4)
490.121, subd. 20 356.215, subd. 4d 356.215, subd. 8
490.121, subd. 22 356.119, subd. 7 356.315, subd. 7
490.124, subd. 1 356.119, subd. 7 356.315, subd. 7
490.124, subd. 1 356.119, subd. 8 356.315, subd. 8
490.124, subd. 5 356.215, subd. 4d 356.215, subd. 8
Sec. 53. [REPEALER.]
Subdivision 1. [REPEALER OF OBSOLETE
PROVISIONS.] Minnesota Statutes 2000, sections 356.325; 356.35;
356.36; 356.37; 356.38; 356.39; 356.45; 356.451; 356.452;
356.453; 356.454; and 356.455, are repealed.
Subd. 2. [REPEALER OF PROVISIONS REORGANIZED.] (a)
Minnesota Statutes 2000, sections 356.19; 356.305; 356.306;
356.31; 356.371, subdivisions 2 and 3; 356.372; 356.615; 356.71;
356.80; 356.81; 356.86; 356.865; 356.88; and 356.89, are
repealed.
(b) Minnesota Statutes 2001 Supplement, sections 356.371,
subdivision 1; and 356.866, are repealed.
Subd. 3. [REPEALER TO RESOLVE REVISOR NOTE.] Laws 1997,
chapter 233, article 1, section 58, is repealed.
Sec. 54. [EFFECTIVE DATE.]
(a) Sections 1 to 53 are effective July 1, 2002.
(b) Section 51 is the continuation of the public pension
facility authority previously contained in Minnesota Statutes
2000, section 356.89, and may not be considered a grant of
authority to build or bond for a second building.
ARTICLE 12
JOINT RETIREMENT PLAN
BUILDING LEASE AUTHORITY
Section 1. Minnesota Statutes 2000, section 356.89,
subdivision 3, is amended to read:
Subd. 3. [CONTRACTING PROCEDURES.] (a) The commissioner
may enter into a contract for facilities with a contractor to
furnish the architectural, engineering, and related services as
well as the labor, materials, supplies, equipment, and related
construction services on the basis of a request for
qualifications and competitive responses received through a
request for proposals process that must include the items listed
in paragraphs (b) to (i).
(b) Before issuing a request for qualifications and a
request for proposals, the commissioner, with the assistance of
the boards, shall prepare performance criteria and
specifications that include:
(1) a general floor plan or layout indicating the general
dimensions of the public building and space requirements;
(2) design criteria for the exterior and site area;
(3) performance specifications for all building systems and
components to ensure quality and cost efficiencies;
(4) conceptual floor plans for systems space;
(5) preferred types of interior finishes, styles of
windows, lighting and outlets, doors, and features such as
built-in counters and telephone wiring;
(6) mechanical and electrical requirements;
(7) special interior features required; and
(8) a completion schedule.
(c) The commissioner shall first solicit statements of
qualifications from eligible contractors and select more than
one qualified contractor based upon experience, technical
competence, past performance, capability to perform, and other
appropriate facts. Contractors selected under this process must
be, employ, or have as a partner, member, coventurer, or
subcontractor, persons licensed and registered under chapter 326
to provide the services required to design and complete the
project. The commissioner does not have to select any of the
respondents if none reasonably fulfill the criteria set forth in
this paragraph.
(d) The contractors selected shall be asked to respond to a
request for proposals. Responses must include site plans,
design concept, elevation, statement of material to be used,
floor layouts, a detailed development budget, and a total cost
to complete the project. The proposal must indicate that the
contractor obtained at least two proposals from subcontractors
for each item of work and must set forth how the subcontractors
were selected. The commissioner, with the assistance of the
boards, shall evaluate the proposals based upon design, cost,
quality, aesthetics, and the best overall value to the state
pension funds. The commissioner need not select any of the
proposals submitted and reserves the right to reject any and all
proposals, and may terminate the process or revise the request
for proposals and solicit new proposals if the commissioner
determines that the best interests of the pension funds would be
better served by doing so. Proposals submitted are nonpublic
data until the contract is awarded.
(e) The contractor selected must comply with sections
574.26 to 574.261. Before executing a final contract, the
contractor selected shall certify a firm construction price and
completion date.
(f) The commissioner may consider building sites in the
city of St. Paul and surrounding suburbs.
(g) Any land, building, or facility leased, constructed, or
acquired and any leasehold interest acquired under this section
must be held by the state in trust for the three retirement
systems as tenants in common. Each retirement system fund must
consider its interest as a fixed asset of its pension fund in
accordance with governmental accounting standards.
(h) The commissioner may lease to another governmental
subdivision, or to a private company under contract with the
state board of investment or with the board of directors of the
Minnesota state retirement system, whichever applies, to provide
deferred compensation services under section 352.96, any portion
of the funds' building and lands that is not required for their
direct use upon terms and conditions they deem to be in the best
interest of the pension funds. Any income accruing from the
rentals must be separately accounted for and utilized to offset
ongoing administrative expenses and any excess must be carried
forward for future administrative expenses. The commissioner
may also enter into lease agreements for the establishment of
satellite offices should the boards find them to be necessary in
order to assure their members reasonable access to their
services. The commissioner may lease under section 16B.24 any
portion of the facilities not required for the direct use of the
boards.
(i) The boards shall formulate and adopt a written working
agreement that sets forth the nature of each retirement system's
ownership interest, the duties and obligations of each system
toward the construction, operation, and maintenance costs of its
facilities, and identifies one retirement fund to serve as
manager for operating and maintenance purposes. The boards may
contract with independent third parties for maintenance-related
activities, services, and supplies, and may use the services of
the department of administration where economically feasible to
do so. If the boards cannot agree or resolve a dispute about
operations or maintenance of the facilities, they may request
the commissioner of administration to appoint a representative
from the department's real estate management division to serve
as arbitrator of the dispute with authority to issue a written
resolution of the dispute.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective July 1, 2002.
ARTICLE 13
VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATIONS SERVICE PENSION ELIGIBILITY
Section 1. Minnesota Statutes 2000, section 424A.02,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] (a) A relief association,
when its articles of incorporation or bylaws so provide, may pay
out of the assets of its special fund a service pension to each
of its members who: (1) separates from active service with the
fire department; (2) reaches age 50; (3) completes at least five
years of active service as an active member of the municipal
fire department to which the relief association is associated;
(4) completes at least five years of active membership with the
relief association before separation from active service; and
(5) complies with any additional conditions as to age, service,
and membership that are prescribed by the bylaws of the relief
association. A service pension computed under this section may
be prorated monthly for fractional years of service, if the
bylaws or articles of incorporation of the relief association so
provide. The service pension may be paid whether or not the
municipality or nonprofit firefighting corporation to which the
relief association is associated qualifies for fire state aid
under chapter 69.
(b) In the case of a member who has completed at least five
years of active service as an active member of the fire
department to which the relief association is associated on the
date that the relief association is established and
incorporated, the requirement that the member complete at least
five years of active membership with the relief association
before separation from active service may be waived by the board
of trustees of the relief association if the member completes at
least five years of inactive membership with the relief
association before the payment of the service pension. During
the period of inactive membership, the member is not entitled to
receive disability benefit coverage, is not entitled to receive
additional service credit towards computation of a service
pension, and is considered to have the status of a person
entitled to a deferred service pension under subdivision 7.
(c) No municipality or nonprofit firefighting corporation
may delegate the power to take final action in setting a service
pension or ancillary benefit amount or level to the board of
trustees of the relief association or to approve in advance a
service pension or ancillary benefit amount or level equal to
the maximum amount or level that this chapter would allow rather
than a specific dollar amount or level.
(d) No relief association as defined in section 424A.001,
subdivision 4, may pay a service pension or disability benefit
to a former member of the relief association if that person has
not separated from active service with the fire department to
which the relief association is directly associated, unless:
(1) the person is employed subsequent to retirement by the
municipality or the independent nonprofit firefighting
corporation, whichever applies, to perform duties within the
municipal fire department or corporation on a full-time basis;
(2) the governing body of the municipality or of the
corporation has filed its determination with the board of
trustees of the relief association that the person's experience
with and service to the fire department in that person's
full-time capacity would be difficult to replace; and
(3) the bylaws of the relief association were amended to
provide for the payment of a service pension or disability
benefit for such full-time employees.
ARTICLE 14
ADDITIONAL PROVISIONS
Section 1. Laws 1997, chapter 202, article 2, section 61,
as amended by Laws 1999, chapter 250, article 1, section 106,
and Laws 2001, First Special Session chapter 10, article 2,
section 85, is amended to read:
Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
Appointing authorities in state government may allow each
employee to take an unpaid leave of absence for up to 320 hours
during the period ending June 30, 2003, and an additional 160
hours during the period beginning July 1, 2003, and ending June
30, 2005. Each appointing authority approving such a leave
shall allow the employee to continue accruing vacation and sick
leave, be eligible for paid holidays and insurance benefits,
accrue seniority, and accrue service credit in state retirement
plans permitting service credits for authorized leaves of
absence as if the employee had actually been employed during the
time of the leave. If the leave of absence is for one full pay
period or longer, any holiday pay shall be included in the first
payroll warrant after return from the leave of absence. The
appointing authority shall attempt to grant requests for unpaid
leaves of absence consistent with the need to continue efficient
operation of the agency. However, each appointing authority
shall retain discretion to grant or refuse to grant requests for
leaves of absence and to schedule and cancel leaves, subject to
applicable provisions of collective bargaining agreements and
compensation plans.
Sec. 2. [CLARIFICATION OF APPROPRIATION.]
Subdivision 1. [PURPOSE.] This section clarifies treatment
extended to an individual specified in Laws 2001, chapter 169,
section 5, and is intended to eliminate any potential windfall
to the public employees retirement association police and fire
plan fund and the public employees retirement association
general employees plan fund that may result from that session
law.
Subd. 2. [ELIGIBILITY.] The eligible individual is an
individual specified in Laws 2001, chapter 169, section 5, who
was an assistant commissioner in the department of public safety
from April 30, 1994, through May 31, 1998, while on an
intergovernmental mobility assignment or assignments to the
state from the city of St. Paul police department.
Subd. 3. [SALARY INCREMENT.] The salary increment in any
applicable year or portion of a year is the difference between
the salary the eligible individual in subdivision 2 received as
assistant commissioner and the salary upon which pension
contributions were made for that year or portion of a year.
Subd. 4. [BENEFIT COMPUTATIONS.] The retirement benefits,
or disability benefits, if applicable, under the public
employees retirement association police and fire plan and the
public employees retirement association general plan are to be
computed based on plan law applicable to the eligible individual
under subdivision 2 given the eligible individual's termination
of service date or dates, or the disability benefit accrual date
or dates as applicable, except for inclusion of salary
increments under subdivision 3 for purposes of determining
average salary under sections 353.29, subdivision 2, and
353.651, subdivision 2.
Subd. 5. [ANNUITY RESERVE COMPARISONS.] The executive
director of the public employees retirement association is to
determine the increased actuarial reserves, if any, needed to
support the annuities from the two applicable public employees
retirement association retirement funds on the effective date of
retirement or disability from the applicable plans due to this
section.
Subd. 6. [COMPARISON TO APPROPRIATION AMOUNTS.] The total
amount determined under subdivision 5, if zero or positive, is
to be subtracted from the total value of any appropriation
received by the public employees retirement association under
Laws 2001, chapter 169, section 5, on the date computations
under subdivision 5 occur assuming 8.5 percent interest
compounded annually from the date the appropriation is received
until the computation date under subdivision 5.
Subd. 7. [DISPOSITION OF EXCESS.] The amount determined
under subdivision 6, net of the value of any foregone employer
contributions, including 8.5 percent interest compounded
annually relating to the salary increments under subdivision 3,
if any, is to be redeposited within 30 days following the date
of that determination in the state's general fund.
Subd. 8. [INTERNAL ALLOCATIONS.] Notwithstanding any law
to the contrary, the executive director is authorized to place
amounts received, if any, due to Laws 2001, chapter 169, section
5, in the public employees retirement association general plan
fund or the public employees retirement association police and
fire plan fund, or to allocate amounts between these funds as
deemed appropriate. Following the determinations required by
this section, the executive director may again reallocate
amounts between the two funds to reflect a reasonable allocation
of the remaining net appropriation amount.
Subd. 9. [CONTRIBUTION RATIFICATION.] Contributions and
interest paid to the association relating to the salary
increments referred to in subdivision 3 are authorized for
deposit in the public employees retirement association police
and fire plan fund and are ratified.
Sec. 3. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; RECISION
OF ANNUITY APPLICATION IN FAVOR OF DISABILITY BENEFIT
APPLICATION.]
(a) Notwithstanding Minnesota Statutes, section 353.29,
subdivision 7, or any other law to the contrary, an eligible
person described in paragraph (b) may revoke an application for
a retirement annuity from the public employees police and fire
plan and may file an application for a disability benefit from
the public employees police and fire plan, effective the first
day of the month following the approval of the disability
application under Minnesota Statutes, section 353.33,
subdivisions 2 and 4.
(b) An eligible person is a person who:
(1) was born on August 6, 1949;
(2) was employed for 27 years with the city of West St.
Paul fire department;
(3) terminated employment with the city of West St. Paul on
January 31, 2001;
(4) filed six "first report of injury" documents for back
injuries with the city of West St. Paul between June 1984 and
December 2000;
(5) requested recision of his public employees police and
fire plan retirement annuity on February 16, 2001, and tendered
a personal check repaying the initial annuity amount; and
(6) unsuccessfully appealed to the public employees
retirement association board of trustees on May 10, 2001, for
authority to rescind a retirement annuity application and to
apply for a disability benefit.
Sec. 4. [MSRS-GENERAL; ACCELERATED OPTIONAL ANNUITY FORM.]
(a) An eligible person described in paragraph (b) is
entitled to elect from the general state employees retirement
plan of the Minnesota state retirement system the actuarial
equivalent accelerated optional annuity form specified in
paragraph (c).
(b) An eligible person is a person who:
(1) was born on October 13, 1943;
(2) was employed as a teacher by the Benson public schools
from August 1967 to June 1969;
(3) was employed as a teacher by the Richfield public
schools from January 1, 1971, to June 1973; and
(4) was initially employed by the office of the legislative
auditor on October 14, 1985, and remains an employee of the
office of the legislative auditor.
(c) The board of directors of the Minnesota state
retirement system shall establish an accelerated optional
retirement annuity for the eligible person. The accelerated
optional retirement annuity form must replicate to the extent
practicable the accelerated optional retirement annuity form
that would apply to the eligible person by the teachers
retirement association. The optional annuity form must be the
actuarial equivalent of the eligible person's single life
annuity. The accelerated optional retirement annuity form must
be established prior to October 1, 2002. The cost of the
actuarial calculations of the consulting actuary retained by the
legislative commission on pensions and retirement is payable by
the general state employees retirement plan and the plan must be
reimbursed by the eligible person for those costs upon
notification by the executive director of the Minnesota state
retirement system.
Sec. 5. [PRIOR OUT-OF-STATE TEACHING SERVICE CREDIT
PURCHASE BY PUBLIC EMPLOYEES RETIREMENT ASSOCIATION MEMBER.]
Subdivision 1. [ELIGIBILITY.] An eligible member is a
current active member of the public employees retirement
association general plan who became a member of that plan on
August 1, 1973, and who was born on December 16, 1944. An
eligible member may purchase allowable service credit in the
public employees retirement association general plan as
specified in this section.
Subd. 2. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) An
eligible member specified in subdivision 1 is eligible to
purchase up to four years of allowable service credit from the
general employees retirement plan of the public employees
retirement association for out-of-state teaching service by
making payment under Minnesota Statutes, section 356.55 or
356.551, whichever is applicable, provided that the out-of-state
teaching service was performed for an educational institution
that was established and operated by another governmental
jurisdiction and that the eligible member is not entitled to
receive a current or deferred age and service retirement annuity
or disability benefit and has not purchased service credit from
another defined benefit public employee pension plan for that
out-of-state teaching service.
(b) For purposes of paragraph (a), "another governmental
jurisdiction" means another state of the United States or a
governmental subdivision of another state of the United States.
Subd. 3. [APPLICATION AND DOCUMENTATION.] An eligible
member under subdivision 1 who desires to purchase service
credit under this section must apply with the executive director
of the public employees retirement association to make the
purchase. The application must include all necessary
documentation of the eligible 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.
Payment must be made before the eligible member's effective date
of retirement or before January 1, 2003, whichever is earlier.
Subd. 4. [SERVICE CREDIT GRANT.] Allowable service credit
for the purchase period must be granted by the public employees
retirement association to the purchasing eligible member on
receipt of the required purchase payment amount.
Sec. 6. [LUMP SUM PRE-1973 RETIREE POSTRETIREMENT
ADJUSTMENT IN CERTAIN INSTANCES.]
(a) Notwithstanding any provision of Minnesota Statutes
2001 Supplement, section 356.866, or Minnesota Statutes, section
356.431, to the contrary, an eligible person described in
paragraph (b) may elect to receive the pre-1973 postretirement
adjustment in a lump sum payment rather than as an annuity
increase. The election must be made before September 1, 2002,
and is irrevocable by the annuitant or benefit recipient. For
the December 2002 lump sum payment, the amount must be the total
of the monthly amounts remaining unpaid to the annuitant or the
benefit recipient after the election.
(b) An eligible person is a person who:
(1) was born on December 5, 1908;
(2) is the survivor of a deceased annuitant of the general
employees retirement plan of the public employees retirement
association who was born on March 22, 1904, who retired on May
1, 1969, and who died on April 9, 1980; and
(3) waived an annuity from the general employees retirement
plan of the public employees retirement association in favor of
a surviving spouse benefit on May 1, 1980.
Sec. 7. [PERA AND MSRS; SERVICE CREDIT PURCHASE.]
Subdivision 1. [ELIGIBILITY.] An eligible person is a
person who:
(1) served as a legislator representing Hubbard county
during the 1961-1963 legislative session;
(2) was employed by the department of natural resources or
its predecessor at Itasca state park from 1964 to 1980; and
(3) retired from the general state employees retirement
plan of the Minnesota state retirement system on July 1, 1980,
with ten years, six months, and nine days of service credit.
Subd. 2. [PERA SERVICE CREDIT PURCHASE.] Upon the receipt
of an amount equal to the member contribution that the eligible
person would have otherwise made in 1961 and 1962, plus annual
compound interest on the total equivalent member contribution
amount at the rate of 8.5 percent from January 1, 1962, to the
date of payment, an eligible person is entitled to receive two
years of service credit from the general employees retirement
plan of the public employees retirement association for prior
uncredited service as a member of the legislature.
Subd. 3. [MSRS SERVICE CREDIT PURCHASE.] Upon the receipt
of an amount equal to the balance of the employee contribution
that the eligible person would have otherwise made during the
period 1964 to 1980 if the eligible person was employed on a
full-time basis, plus annual compound interest on the total
equivalent employee contribution amount at the rate of 8.5
percent from January 1, 1972, to the date of payment, an
eligible person is entitled to receive 5.48 years of service
credit from the general state employees retirement plan of the
Minnesota state retirement system for uncredited periods from
1964 to 1980 between seasonal Itasca state park employment.
Subd. 4. [COMBINED SERVICE ANNUITY
APPLICATION.] Notwithstanding the time that has elapsed since
initial retirement, an eligible person may apply for a
retirement annuity from the general employees retirement plan of
the public employees retirement association and may apply for a
recomputed retirement annuity from the general state employees
retirement plan of the Minnesota state retirement system under
Minnesota Statutes, section 356.30.
Subd. 5. [PAYMENT.] (a) The house of representatives shall
pay the executive director of the public employees retirement
association an amount equal to the required reserves needed to
support the retirement annuity of an eligible person under
subdivisions 2 and 4, reduced by the amount of the equivalent
member contribution, plus required interest, under subdivision
2. Payment must be made within ten days of notification by the
executive director that the equivalent member contribution
amount, plus required interest, has been received and of the
amount due. The payment and the equivalent member contribution
amount, plus interest, must be deposited in the public employees
retirement fund and transferred to the Minnesota postretirement
investment fund.
(b) The department of natural resources shall pay the
executive director of the Minnesota state retirement system an
amount equal to the required reserves needed to support the
retirement annuity of an eligible person under subdivisions 3
and 4, reduced by the amount of the equivalent employee
contribution, plus required interest, under subdivision 3.
Payment must be made within ten days of notification by the
executive director that the equivalent employee contribution
amount, plus required interest, has been received and of the
amount due. The payment and the equivalent member contribution
amount, plus interest, must be deposited in the state employees
retirement fund and transferred to the Minnesota postretirement
investment fund.
Subd. 6. [RETIREMENT ANNUITY ACCRUAL.] The retirement
annuities payable under this section accrue on the first day of
the month next following final enactment.
Sec. 8. [PRIOR SERVICE CREDIT PURCHASE REFUND.]
(a) An eligible person may receive a refund of any prior
military service credit purchase payment amount paid prior to
the applicable effective date of the federal Economic Growth and
Tax Reconciliation Act of 2001 if the eligible person transfers
pretax funds to the teachers retirement association under
Minnesota Statutes, section 356.55 or 356.551, whichever
applies, sufficient to purchase the identical period of prior
military service credit.
(b) An eligible person is a person who:
(1) was born on February 6, 1947;
(2) served in the United States armed forces from March 19,
1969, to October 22, 1970;
(3) had credit for 27 years of service from the teachers
retirement association as of June 30, 2000; and
(4) purchased 1.58 years of prior military service credit
from the teachers retirement association with the payment of
$23,958.18 on or before April 30, 2001.
(c) This section is contingent on the teachers retirement
association applying for and receiving a favorable ruling from
the federal Internal Revenue Service regarding the payment of
this refund.
Sec. 9. [PERA-P&F; EXCEPTION TO DISABILITY APPLICATION
DEADLINE.]
(a) Notwithstanding any provision of Minnesota Statutes,
section 353.33, subdivision 2, to the contrary, an eligible
person described in paragraph (b) is entitled to file a
disability benefit application with the general employees
retirement plan of the public employees retirement association
or with the public employees police and fire retirement plan
and, if otherwise qualified, to receive a disability benefit
from one or both of those retirement plans.
(b) An eligible person is a person who:
(1) was born on February 8, 1970;
(2) was an employee of the city of Bagley from May 1, 1991,
to May 31, 1992, and was covered by the coordinated program of
the general employees retirement plan of the public employees
retirement system;
(3) was employed as a police officer by the police
department of the city of Blooming Prairie from January 9, 1995,
to May 31, 1997, and was covered by the public employees police
and fire retirement plan;
(4) was struck by a motor vehicle while assisting with
traffic management at an accident site on interstate highway 35
in January 1997 resulting in various broken bones and other
injuries, necessitating at least eight surgeries;
(5) was placed on medical leave by the city of Blooming
Prairie on September 1, 1997, until January 1, 1998, upon
termination of employment; and
(6) failed to timely apply for disability benefits due to
the injuries which were diagnosed to have caused significant
depression and posttraumatic stress disorder.
(c) This section expires one year after the date of final
enactment.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective on the day following final
enactment.
ARTICLE 15
COORDINATED PROGRAM OF LEGISLATORS RETIREMENT PLAN;
SOCIAL SECURITY REFERENDUM
Section 1. [3A.15] [COORDINATED PROGRAM OF LEGISLATORS
RETIREMENT PLAN.]
The coordinated program of the legislators retirement plan
is created. The provisions of sections 3A.01 to 3A.13 apply to
the coordinated program.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. [355.629] [SECOND SOCIAL SECURITY REFERENDUM.]
Subdivision 1. [ELECTION OF SOCIAL SECURITY COVERAGE.] Any
member of the legislators retirement plan established under
chapter 3A who did not elect coverage under an agreement under
section 218(d) of the Social Security Act as provided for in
section 355.624 is entitled to elect future social security
coverage and retroactive coverage for the period consistent with
applicable federal law, in a second social security referendum.
Any member who so elects shall become a member of the
coordinated program of the legislators retirement plan under
section 3A.15. The governor shall set a date for the referendum
and shall undertake any duties to amend the state's Social
Security Act, section 218 agreement, with the secretary of
health and human services.
Subd. 2. [PAYMENT OF RETROACTIVE SOCIAL SECURITY
TAXES.] For any service by a legislator who is in office on the
date of the agreement or modification of the agreement with the
secretary of health and human services, the executive director
of the Minnesota state retirement system shall cause to be paid
an amount for each legislator, including an amount for
retroactive coverage, equal to the taxes which would have been
imposed on the legislator and state of Minnesota by the Federal
Insurance Contributions Act had the service been covered at the
time performed. This payment shall be computed from the date of
retroactive coverage to the date that deductions are first taken
from the wages of each legislator for social security coverage.
Before making a payment on behalf of a legislator, the executive
director must receive from the legislator the funds necessary to
make the payment. Nothing in this section shall require a
legislator to elect retroactive social security coverage.
Subd. 3. [DEDUCTION FROM WAGES.] A legislator who elects
social security coverage under this section shall have a
deduction taken from wages in an amount equal to the employer
and employee contributions required by either subdivision 1 or
subdivision 2.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
ARTICLE 16
MINNEAPOLIS POLICE OPTIONAL ANNUITIES
Section 1. Minnesota Statutes 2000, section 423B.09,
subdivision 6, is amended to read:
Subd. 6. [OPTIONAL ANNUITIES.] A member who is retired or
disabled on the effective date of Laws 1997, chapter 233,
article 4, section 6, may elect an optional retirement annuity
within 60 days of the effective date of Laws 1997, chapter 233,
article 4, section 6, instead of the normal retirement annuity.
A member who retires or becomes disabled after the effective
date of Laws 1997, chapter 233, article 4, section 6, may elect
an optional retirement annuity prior to the receipt of any
benefits. The optional retirement annuity may be a 50 percent,
a 75 percent, or a 100 percent joint and survivor annuity
without reinstatement in the event of the designated beneficiary
predeceasing the member or a 50 percent, a 75 percent, or a 100
percent joint and survivor annuity with reinstatement in the
event of the designated beneficiary predeceasing the member.
Optional retirement annuity forms must be actuarially equivalent
to the service pension and automatic survivor coverage otherwise
payable to the retiring member and the member's
beneficiaries. A member may only designate the member's spouse
as the recipient of a joint and survivor annuity and no benefit
or annuity may be paid to a person who does not meet the
definition of a surviving spouse member under section 423B.01,
subdivision 17. Once selected, the optional annuity is
irrevocable.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment
and applies to all joint annuity options selected by members of
the Minneapolis police relief association.
Presented to the governor May 20, 2002
Signed by the governor May 22, 2002, 1:17 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes