Office of the Revisor of Statutes
Minnesota Session Laws - 2003, 1st Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 12-S.F.No. 22
An act relating to retirement; modifying various
public pension plan provisions; allowing certain
service credit purchases; regulating leave without pay
for governmental subdivision employees; amending
Minnesota Statutes 2002, sections 11A.17, subdivision
2; 122A.46, subdivision 9; 352.96, subdivision 2;
353.01, subdivisions 2d, 6; 353.028, subdivision 2;
353D.01, subdivision 2; 353D.02, by adding a
subdivision; 353F.02, subdivision 4; 354.094,
subdivision 1; 356.24, subdivision 1; 356.55,
subdivision 7; 356B.05; 383B.49; 383B.493; 423C.03,
subdivision 3; 423C.08; 424A.02, subdivision 3; Laws
1978, chapter 685, section 1, as amended; Laws 1978,
chapter 685, section 2; Laws 1978, chapter 685,
section 3; Laws 1978, chapter 685, section 6; Laws
1999, chapter 222, article 16, section 16, as amended;
Laws 2000, chapter 461, article 4, section 4; Laws
2000, chapter 461, article 12, section 20, as amended;
Laws 2000, chapter 461, article 19, section 6; Laws
2001, First Special Session chapter 10, article 6,
section 21, as amended; repealing Minnesota Statutes
2002, sections 354.541; 354A.109; Laws 1978, chapter
685, section 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
LOCAL GOVERNMENT SALARY SAVINGS LEAVE
Section 1. [APPLICATION.]
Unless otherwise specified, this article applies to
governmental subdivisions as specified in Minnesota Statutes,
section 353.01, subdivision 6, and public employees providing
service to the applicable employer and covered by the public
employees retirement association general plan or police and fire
plan under Minnesota Statutes, chapter 353, or the public
employees retirement association local government correctional
service retirement plan under Minnesota Statutes, chapter 353E.
Sec. 2. [VOLUNTARY HOUR REDUCTION PLAN.]
(a) This section applies to a public employee who:
(1) on the effective date of this section is regularly
scheduled to work 1,040 or more hours a year in a position
covered by a pension plan administered by the public employees
retirement association; and
(2) enters into an agreement with a governmental
subdivision to work a reduced schedule of 1,040 or less hours in
the covered position.
(b) Notwithstanding any law to the contrary, for service
under an agreement entered into under paragraph (a),
contributions may be made to the applicable plan of the public
employees retirement association as if the employee had not
reduced hours. The employee must pay the employee contributions
and the employer must pay employer and additional employer
contributions necessary to bring the service credit and salary
up to the level prior to the voluntary reduction in hours.
Contributions must be made in a time and manner prescribed by
the executive director of the public employees retirement
association.
(c) The number of hours worked, the work schedule, and the
duration of the voluntary hour reduction must be mutually agreed
to by the employee and the governmental subdivision. The
governmental subdivision may not require a person to waive any
rights under a collective bargaining agreement as a condition of
participation under this section. The governmental subdivision
has sole discretion to determine if and the extent to which
voluntary hour reduction under this section is available to an
employee.
(d) A person who works under this section and meets the
definition of public employee under Minnesota Statutes, section
179A.03, subdivision 14, is a member of an appropriate
bargaining unit, is covered by an appropriate collective
bargaining contract or personnel policy, and is eligible for
health care coverage as provided in a collective bargaining
contract or personnel policy.
(e) An agreement under this section may apply only to work
through June 30, 2005.
Sec. 3. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
(a) Governmental subdivisions may allow employees to take
unpaid leaves of absence between June 1, 2003, and June 30,
2005. Each governmental subdivision approving a leave may allow
the employee to continue accruing vacation and sick leave, be
eligible for paid holidays and insurance benefits, accrue
seniority, and accrue service credit and credited salary in the
public employees retirement association as if the employee had
actually been employed during the time of leave. If the leave
of absence is for one full pay period or longer, any holiday pay
may be included in the first payroll warrant after return from
the leave of absence. The governmental subdivision shall
attempt to grant requests for the unpaid leaves of absence
consistent with the need to continue efficient operation of the
governmental subdivision. However, each governmental
subdivision shall retain discretion to grant or refuse to grant
requests for leaves of absence and to schedule and cancel
leaves, subject to the applicable provisions of collective
bargaining agreements and personnel policy.
(b) To receive eligible service credit, the member shall
pay an amount equal to the applicable employee contribution
rates. If an employee pays the employee contribution for the
period of the leave under this section, the governmental
subdivision must pay the employer contribution and the
additional employer contribution. The governmental subdivision
may, at its discretion, pay employee, employer, and additional
employer contributions to the public employees retirement
association for the period of leave under this section.
Contributions must be made in a time and manner prescribed by
the executive director of the public employees retirement
association.
Sec. 4. [DESIGNATION OF POSITIONS; EMPLOYER DISCRETION.]
Before agreeing to an option under this article, a
governmental subdivision must designate the job classifications
or positions within job classifications that qualify for each
option. The governmental subdivision may modify this
designation at any time. Designation of positions eligible for
the options and participation of individual employees under this
act are at the sole discretion of the governmental subdivision.
Implementation of this act by the employer is not an unfair
labor practice under Minnesota Statutes, chapter 179A, or an
unfair discriminatory practice under Minnesota Statutes, chapter
363.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective on the day following final
enactment.
ARTICLE 2
STATE BOARD OF INVESTMENT CHANGES
Section 1. Minnesota Statutes 2002, section 11A.17,
subdivision 2, is amended to read:
Subd. 2. [ASSETS.] The assets of the supplemental
investment fund shall consist of the money certified and
transmitted to the state board from the participating public
retirement plans and funds or from the board of the Minnesota
state colleges and universities under section 136F.45. The
assets must be used to purchase investment shares in the
investment accounts specified by the plan or fund. These
accounts must be valued at least on a monthly basis, but may be
valued more frequently as determined by the state board of
investment.
Sec. 2. Minnesota Statutes 2002, section 352.96,
subdivision 2, is amended to read:
Subd. 2. [PURCHASE OF SHARES.] The amount of compensation
so deferred may be used to purchase:
(1) shares in the Minnesota supplemental investment fund
established in section 11A.17 that are selected to be offered
under the plan by the state board of investment;
(2) saving accounts in federally insured financial
institutions;
(3) life insurance contracts, fixed annuity and variable
annuity contracts from companies that are subject to regulation
by the commissioner of commerce;
(4) investment options from open-end investment companies
registered under the federal Investment Company Act of 1940,
United States Code, title 15, sections 80a-1 to 80a-64;
(5) investment options from a firm that is a registered
investment advisor under the Investment Advisers Act of 1940,
United States Code, title 15, section 80b-1 to 80b-21;
(6) investment options of a bank as defined in United
States Code, title 15, section 80b-2, subsection (a), paragraph
(2), or a bank holding company as defined in the Bank Holding
Company Act of 1956, United States Code, title 12, section 1841,
subsection (a), paragraph (1); or
(7) a combination of clause (1), (2), (3), (4), (5), or
(6), as provided by the plan as specified by the participant.
All amounts contributed to the deferred compensation plan
and all earnings on those amounts will be held for the exclusive
benefit of the plan participants and beneficiaries. These
amounts will be held in trust, in custodial accounts, or in
qualifying annuity contracts as required by federal law and in
accordance with section 356A.06, subdivision 1. This
subdivision does not authorize an employer contribution, except
as authorized in section 356.24, subdivision 1, paragraph (a),
clause (5). The state, political subdivision, or other
employing unit is not responsible for any loss that may result
from investment of the deferred compensation.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective July 1, 2003.
ARTICLE 3
TEACHER EXTENDED LEAVES
Section 1. Minnesota Statutes 2002, section 122A.46,
subdivision 9, is amended to read:
Subd. 9. [BENEFITS.] A teacher on an extended leave of
absence shall receive all of the health, accident, medical,
surgical and hospitalization insurance or benefits, for both the
teacher and the teacher's dependents, for which the teacher
would otherwise be eligible if not on an extended leave. A
teacher shall receive the coverage if such coverage is available
from the school district's insurer, if the teacher requests the
coverage, and if the teacher either (a) reimburses the district
for the full amount of the premium necessary to maintain the
coverage within one month following preceding the district's
payment of the premium, or (b) if the district is wholly or
partially self-insured, pays the district, according to a
schedule agreed upon by the teacher and the school board, an
amount determined by the school board to be the amount that
would be charged for the coverage chosen by the teacher if the
school board purchased all health, accident, medical, surgical
and hospitalization coverage for its teachers from an
insurer. A school district may enter into an agreement with the
exclusive bargaining representative of the teachers in the
district where the district agrees, for an individual teacher,
to pay all or a portion of the premium for such coverage. Any
such agreement must include a sunset of eligibility to qualify
for the payment.
[EFFECTIVE DATE.] This section is effective the day
following final enactment and applies to agreements in effect or
entered into after that date.
Sec. 2. Minnesota Statutes 2002, section 354.094,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT CONTRIBUTIONS.] Upon
granting any extended leave of absence under section 122A.46 or
136F.43, the employing unit granting the leave must certify the
leave to the association on a form specified by the executive
director. A member granted an extended leave of absence under
section 122A.46 or 136F.43 may pay employee contributions and
receive allowable service credit toward annuities and other
benefits under this chapter, for each year of the leave,
provided that the member and the employing board make the
required employer contribution in any proportion they may agree
upon, during the period of the leave. The employer may enter
into an agreement with the exclusive bargaining representative
of the teachers in the district under which, for an individual
teacher, all or a portion of the employee's contribution is paid
by the employer. Any such agreement must include a sunset of
eligibility to qualify for the payment and must not be a part of
the collective bargaining agreement. The leave period must not
exceed five years. A member may not receive more than five
years of allowable service credit under this section. The
employee and employer contributions must be based upon the rates
of contribution prescribed by section 354.42 for the salary
received during the year immediately preceding the extended
leave. Payments for the years for which a member is receiving
service credit while on extended leave must be made on or before
the later of June 30 of each fiscal year for which service
credit is received or within 30 days after first notification of
the amount due, if requested by the member, is given by the
association. No payment is permitted after the following
September 30. Payments received after June 30 must include
interest at an annual rate of 8.5 percent from June 30 through
the end of the month in which payment is received.
Notwithstanding the provisions of any agreements to the
contrary, employee and employer contributions may not be made to
receive allowable service credit if the member does not have
full reinstatement rights as provided in section 122A.46 or
136F.43, both during and at the end of the extended leave.
Any school district paying the employee's retirement
contributions under this section shall forward to the applicable
retirement association or retirement fund a copy of the
agreement executed by the school district and the employee.
[EFFECTIVE DATE.] This section is effective the day
following final enactment and applies to agreements in effect or
entered into after that date.
Sec. 3. [REPORT.]
By February 1, 2005, the executive director of the teachers
retirement association, the executive secretary of the Duluth
teachers retirement fund association, the executive director of
the St. Paul teachers retirement fund association, and the
executive director of the Minneapolis teachers retirement fund
association shall submit a report to the chair of the
legislative commission on pensions and retirement summarizing
the agreements entered into under Minnesota Statutes, section
354.094, subdivision 1, or 354A.091, subdivision 1, on or before
December 31, 2004.
ARTICLE 4
PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION MEMBERSHIP CHANGES
Section 1. Minnesota Statutes 2002, section 353.01,
subdivision 2d, is amended to read:
Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the
association is optional by action of the individual employee for
the following public employees who meet the conditions set forth
in subdivision 2a:
(1) members of the coordinated plan who are also employees
of labor organizations as defined in section 353.017,
subdivision 1, for their employment by the labor organization
only if they elect to have membership under section 353.017,
subdivision 2;
(2) persons who are elected or persons who are appointed to
elected positions other than local governing body elected
positions who elect to participate by filing a written election
for membership;
(3) members of the association who are appointed by the
governor to be a state department head and who elect not to be
covered by the general state employees retirement plan of the
Minnesota state retirement system under section 352.021; and
(4) city managers as defined in section 353.028,
subdivision 1, who do not elect to be excluded from membership
in the association under section 353.028, subdivision 2; and
(5) employees of the port authority of the city of St. Paul
who were at least age 45 on January 1, 2003, and who elect to
participate by filing a written election for membership.
(b) Membership in the association is optional by action of
the governmental subdivision for the employees of the following
governmental subdivisions under the conditions specified:
(1) the Minnesota association of townships if the board of
the association, at its option, certifies to the executive
director that its employees are to be included for purposes of
retirement coverage, in which case the status of the association
as a participating employer is permanent; and
(2) a county historical society if the county in which the
historical society is located, at its option, certifies to the
executive director that the employees of the historical society
are to be county employees for purposes of retirement coverage
under this chapter. The status as a county employee must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society.
(c) For employees who are covered by paragraph (a), clause
(1), (2), or (3), or covered by paragraph (b), if the necessary
membership election is not made, the employee is excluded from
retirement coverage under this chapter. For employees who are
covered by paragraph (a), clause (4), if the necessary election
is not made, the employee must become a member and have
retirement coverage under this chapter. The option to become a
member, once exercised under this subdivision, may not be
withdrawn until termination of public service as defined under
subdivision 11a.
Sec. 2. Minnesota Statutes 2002, section 353.01,
subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources.
(b) Governmental subdivision also means the public
employees retirement association, the league of Minnesota
cities, the association of metropolitan municipalities, public
hospitals owned or operated by, or an integral part of, a
governmental subdivision or governmental subdivisions, the
association of Minnesota counties, the metropolitan intercounty
association, the Minnesota municipal utilities association, the
metropolitan airports commission, the Minneapolis employees
retirement fund for employment initially commenced after June
30, 1979, the range association of municipalities and schools,
soil and water conservation districts, economic development
authorities created or operating under sections 469.090 to
469.108, the port authority of the city of St. Paul, the Spring
Lake Park fire department, incorporated, the Red Wing
environmental learning center, and the Dakota county
agricultural society.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the
provisions of sections 469.001 to 469.047; or any port authority
organized under sections 469.048 to 469.089 other than the port
authority of the city of St. Paul; or any hospital district
organized or reorganized prior to July 1, 1975, under sections
447.31 to 447.37 or the successor of the district, nor the
Minneapolis community development agency.
Sec. 3. Minnesota Statutes 2002, section 353.028,
subdivision 2, is amended to read:
Subd. 2. [ELECTION.] (a) A city manager may elect to be
excluded from membership in the association. The election of
exclusion must be made within six months following the
commencement of employment, in writing on a form prescribed by
the executive director, and must be approved by a resolution of
the governing body of the city. The election of exclusion is
not effective until it is filed with the executive director.
Membership of a city manager in the association ceases on the
date the written election is received by the executive director
or upon a later date specified. The election to be excluded
from membership must include a provision agreeing that the
person will not at any time in the future seek authorization to
purchase service credit for any period of excluded service and
is irrevocable. Employee and employer contributions made on
behalf of a person exercising the option to be excluded from
membership under this section must be refunded in accordance
with section 353.27, subdivision 7.
(b) A city manager who has elected exclusion under this
subdivision may elect to revoke that action by filing a written
notice with the executive director. The notice must be on a
form prescribed by the executive director and must be approved
by a resolution of the governing body of the city. Membership
of the city manager in the association resumes prospectively
from the date of the first day of the pay period for which
contributions were deducted or, if pay period coverage dates are
not provided, the date on which the notice of revocation or
contributions are received in the office of the association,
provided that the notice of revocation is received by the
association within 60 days of the receipt of contributions.
(c) An election under paragraph (b) is irrevocable. Any
election under paragraph (a) or (b) must include a statement
that the individual will not seek authorization to purchase
service credit for any period of excluded service.
Sec. 4. Minnesota Statutes 2002, section 353D.01,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY.] (a) Eligibility to participate in
the defined contribution plan is available to:
(1) elected local government officials of a governmental
subdivision who elect to participate in the plan under section
353D.02, subdivision 1, and who, for the elected service
rendered to a governmental subdivision, are not members of the
public employees retirement association within the meaning of
section 353.01, subdivision 7;
(2) physicians who, if they did not elect to participate in
the plan under section 353D.02, subdivision 2, would meet the
definition of member under section 353.01, subdivision 7;
(3) basic and advanced life support emergency medical
service personnel employed by or providing services for any
public ambulance service or privately operated ambulance service
that receives an operating subsidy from a governmental entity
that elects to participate under section 353D.02, subdivision 3;
and
(4) members of a municipal rescue squad associated with
Litchfield in Meeker county, or of a county rescue squad
associated with Kandiyohi county, if an independent nonprofit
rescue squad corporation, incorporated under chapter 317A,
performing emergency management services, and if not affiliated
with a fire department or ambulance service and if its members
are not eligible for membership in that fire department's or
ambulance service's relief association or comparable pension
plan; and
(5) employees of the port authority of the city of St. Paul
who elect to participate in the plan under section 353D.02,
subdivision 5, and who are not members of the public employees
retirement association under section 353.01, subdivision 7.
(b) For purposes of this chapter, an elected local
government official includes a person appointed to fill a
vacancy in an elective office. Service as an elected local
government official only includes service for the governmental
subdivision for which the official was elected by the
public-at-large. Service as an elected local government
official ceases and eligibility to participate terminates when
the person ceases to be an elected official. An elected local
government official does not include an elected county sheriff.
(c) Elected local government officials, physicians, first
response personnel and emergency medical service personnel, and
rescue squad personnel Individuals otherwise eligible to
participate in the plan under this subdivision who are currently
covered by a public or private pension plan because of their
employment or provision of services are not eligible to
participate in the public employees defined contribution plan.
(d) A former participant is a person who has terminated
eligible employment or service and has not withdrawn the value
of the person's individual account.
Sec. 5. Minnesota Statutes 2002, section 353D.02, is
amended by adding a subdivision to read:
Subd. 5. [ST. PAUL PORT AUTHORITY PERSONNEL.] Employees of
the port authority of the city of St. Paul who do not elect to
participate in the general employees retirement plan may elect
to participate in the plan by filing a membership application on
a form prescribed by the executive director of the association
authorizing contributions to be deducted from the employee's
salary. Participation begins on the first day of the pay period
for which the contributions were deducted or, if pay period
coverage dates are not provided, the date on which the
membership application or the contributions are received in the
office of the association, whichever is received first, if the
membership application is received by the association within 60
days of the receipt of the contributions. An election to
participate in the plan is irrevocable.
Sec. 6. [RED WING ENVIRONMENTAL LEARNING CENTER.]
(a) The legislature finds that the Red Wing environmental
learning center has a long and very close relationship with
independent school district No. 256, Red Wing, that Red Wing
environmental learning center employees have been treated as
independent school district No. 256, Red Wing, employees for
retirement coverage purposes for 33 years, and that the current
learning center employees would suffer a significant loss in
their pension benefit coverage if their membership in the
general employees retirement plan of the public employees
retirement association was disrupted.
(b) Notwithstanding the provisions of any other law to the
contrary, independent school district No. 256, Red Wing, may
certify to the executive director of the public employees
retirement association that employees of the Red Wing
environmental learning center are considered school district
employees solely for purposes of retirement coverage by the
general employees retirement plan under Minnesota Statutes,
chapter 353. This status must be accorded to all similarly
situated Red Wing environmental learning center employees.
Sec. 7. [PERA-GENERAL; PRIOR ST. PAUL PORT AUTHORITY
SERVICE CREDIT PURCHASE.]
Subdivision 1. [ELIGIBILITY.] A full-time salaried
employee or a permanent part-time salaried employee of the port
authority of the city of St. Paul who was employed by the port
authority during all or part of the period from July 1, 1993, to
July 1, 2003, and who is a member of the general employees
retirement plan of the public employees retirement association
may purchase allowable service credit from the general employees
retirement plan.
Subd. 2. [PURCHASABLE SERVICE; MAXIMUM.] (a) The service
credit that is purchasable under subdivision 1 is a period or
periods of employment by the port authority of the city of St.
Paul that would have been eligible service for coverage by the
general employees retirement plan of the public employees
retirement association if the service had been rendered after
July 1, 2003.
(b) The maximum period of allowable service credit in the
general employees retirement plan of the public employees
retirement association for purchase under this section is ten
years.
Subd. 3. [PURCHASE PAYMENT REQUIREMENT.] (a) To purchase
the service credit, the payment amount must be calculated under
Minnesota Statutes, section 356.55.
(b) Notwithstanding any provision of Minnesota Statutes,
section 356.55, to the contrary, the prior service credit
purchase payment may be made in whole or in part on an
institution-to-institution basis from a plan qualified under the
federal Internal Revenue Code, section 401(a), 401(k), or
414(h), or from an annuity qualified under the federal Internal
Revenue Code, section 403, or from a deferred compensation plan
under the federal Internal Revenue Code, section 457, to the
extent permitted by the applicable federal law. In no event may
a prior service credit purchase transfer be paid directly to the
person purchasing the service.
Subd. 4. [DOCUMENTATION; SERVICE CREDIT GRANT.] (a) An
eligible person described in subdivision 1 must provide any
documentation related to eligibility to make this service credit
purchase required by the executive director of the public
employees retirement association.
(b) Allowable service credit for the purchase period or
periods must be granted by the general employees retirement plan
of the public employees retirement association on behalf of the
eligible person upon receipt of the prior service credit
purchase payment amount.
Subd. 5. [SUNSET.] Authority to purchase service credit
under this section expires on December 31, 2004.
Sec. 8. [PRIOR SERVICE; VESTING.]
For purposes of vesting under Minnesota Statutes, section
353.29, subdivision 1, only, a full-time salaried employee or a
permanent part-time salaried employee of the port authority of
the city of St. Paul who was employed by the port authority on
July 1, 2003, and who is a member of the general employees
retirement plan of the public employees retirement association
may use months of employment with the port authority before that
date. This service may not be used to calculate a retirement
annuity or a disability benefit provided for under Minnesota
Statutes, chapter 353.
Sec. 9. [DEFINED CONTRIBUTION PLAN; ONETIME ELECTION.]
Employees of the port authority of the city of St. Paul who
do not exercise the right to become members of the general
employees retirement plan of the public employees retirement
association under section 1 may, by onetime election, choose to
participate in the public employees retirement association's
defined contribution plan under Minnesota Statutes, sections
353D.01 to 353D.12. The election is irrevocable.
Sec. 10. [EFFECTIVE DATE.]
(a) Section 2 with respect to the Red Wing environmental
learning center, and section 6 are effective the day after the
school board of independent school district No. 256, Red Wing,
and its chief clerical officer timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3,
and certification to the executive director of the public
employees retirement association.
(b) Section 2, with respect to the port authority of the
city of St. Paul, is effective the day following final enactment.
(c) Sections 1, 4, 5, 6, 8, and 9 are effective the day
following final enactment.
(d) Coverage by the general employees retirement plan of
the public employees retirement association under sections 1 and
2 commences July 1, 2003.
ARTICLE 5
PUBLIC HOSPITAL PRIVATIZATION
Section 1. Minnesota Statutes 2002, 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;
(3) the Waconia-Ridgeview medical center; and
(4) the Kanabec hospital; and
(5) the Renville county hospital in Olivia.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective upon the latter of:
(1) the day after the governing body of Renville 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 Renville 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 Renville county 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 Renville county
hospital.
ARTICLE 6
GENERAL SERVICE CREDIT PURCHASES
Section 1. Minnesota Statutes 2002, section 356.55,
subdivision 7, is amended to read:
Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION
PROCEDURE.] (a) This section expires and is repealed on July
1, 2003 2004.
(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 2004.
Sec. 2. Laws 1999, chapter 222, article 16, section 16, as
amended by Laws 2002, chapter 392, article 7, section 1, is
amended to read:
Sec. 16. [REPEALER.]
Sections 1 to 13 are repealed on May 16, 2003 2004.
Sec. 3. Laws 2000, chapter 461, article 4, section 4, is
amended to read:
Sec. 4. [EFFECTIVE DATE; SUNSET REPEALER.]
(a) Sections 1, 2, and 3 are effective on the day following
final enactment.
(b) Sections 1, 2, and 3 are repealed on May 16, 2003 2004.
Sec. 4. Laws 2000, chapter 461, article 12, section 20, as
amended by Laws 2002, chapter 392, article 7, section 2, 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, 2003 2004.
Sec. 5. Laws 2001, First Special Session chapter 10,
article 6, section 21, as amended by Laws 2002, chapter 392,
article 7, section 3, 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 2004.
(b) Sections 9 and 15 expire May 16, 2003 2004.
Sec. 6. [PERA-GENERAL; SERVICE CREDIT PURCHASE
AUTHORIZED.]
(a) Notwithstanding any provision of law to the contrary,
an eligible person described in paragraph (b), (c), or (d) is
authorized to purchase allowable service credit from the general
employees retirement plan of the public employees retirement
association under Minnesota Statutes, section 356.55 or 356.551,
for the applicable period of prior employment as a council
member of the city of St. Louis Park which was not credited by
the general employees retirement plan of the public employees
retirement association as indicated in paragraph (e).
(b) An eligible person is a person who:
(1) is a current member of the St. Louis Park city council
and is a current member of the general employees retirement plan
of the public employees retirement association;
(2) was born on September 26, 1941;
(3) became a St. Louis Park city council member on January
1, 1996; and
(4) was not a member of the general employees retirement
plan of the public employees retirement association for the
period January 1, 1996, to January 29, 2000.
(c) An eligible person is a person who:
(1) is a current member of the St. Louis Park city council
and is a current member of the general employees retirement plan
of the public employees retirement association;
(2) was born on October 8, 1949;
(3) became a St. Louis Park city council member on June 8,
1999; and
(4) was not a member of the general employees retirement
plan of the public employees retirement association for the
period June 8, 1999, to January 12, 2002.
(d) An eligible person is a person who:
(1) is a current member of the St. Louis Park city council
and is a current member of the general employees retirement plan
of the public employees retirement association;
(2) was born on June 4, 1964;
(3) became a St. Louis Park city council member on November
18, 1997; and
(4) was not a member of the general employees retirement
plan of the public employees retirement association for the
period November 18, 1997, to March 9, 2002.
(e) The allowable service credit purchase period is limited
to the period of St. Louis Park city council service that was
not covered by the general employees retirement plan of the
public employees retirement association.
(f) The eligible person must provide all relevant
documentation of the applicability of the requirements set forth
in paragraph (b), (c), or (d) and any other applicable
information that the executive director of the public employees
retirement association may request.
(g) Allowable service credit for the purchase period must
be granted by the general employees retirement plan of the
public employees retirement association to the eligible person
upon receipt of the prior service credit purchase payment amount.
(h) Notwithstanding Minnesota Statutes, section 356.55,
subdivision 5, or 356.551, subdivision 2, whichever applies, the
city of St. Louis Park is not permitted to pay any portion of
the service credit purchase payment amount.
(i) The prior service credit purchase authority expires on
July 1, 2004, or on the date of the termination of active St.
Louis Park city council service by the eligible person,
whichever occurs earlier.
Sec. 7. [REPEALER.]
Minnesota Statutes 2002, sections 354.541 and 354A.109, are
repealed on May 16, 2004.
Sec. 8. [EFFECTIVE DATE.]
Sections 1 to 7 are effective on the day following final
enactment.
ARTICLE 7
SUPPLEMENTAL PENSION PLAN COVERAGE
Section 1. Minnesota Statutes 2002, 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;
(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
or to a plumbers' and pipefitters' local 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. [EFFECTIVE DATE.]
Section 1 is effective the day after final enactment.
ARTICLE 8
GENERAL RETIREMENT CHANGES
Section 1. Minnesota Statutes 2002, section 356B.05, is
amended to read:
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, and
proposed retirement-related legislation recommended by the
Minnesota state colleges and universities system 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.
ARTICLE 9
STATEWIDE RESTRUCTURED TEACHER
RETIREMENT PLAN ACTUARIAL STUDY
Section 1. [ACTUARIAL STUDY OF COSTS TO RESTRUCTURE
TEACHER PLANS.]
Subdivision 1. [STUDY MANDATED.] The actuary retained by
the legislative commission on pensions and retirement shall
prepare an additional actuarial valuation report, using the
results of the 2003 actuarial valuation reports prepared under
Minnesota Statutes, section 356.215, that considers the
feasibility of restructuring the Minnesota teachers retirement
association, the Minneapolis teachers retirement fund
association, the St. Paul teachers retirement fund association,
and the Duluth teachers retirement plan and fund association
into a new restructured fund.
Subd. 2. [CONTENTS OF STUDY.] The actuarial valuation
report must be based on the proposals put forth in the report
mandated by the legislature in Laws 2001, First Special Session
chapter 10, article 11, section 20, and filed February 15, 2002,
including changes to the postretirement adjustment, benefits,
and restructuring administrative costs and including asset
transfers.
Subd. 3. [INFORMATION PROVIDED.] The executive director of
the teachers retirement association, the executive secretary of
the Duluth teachers retirement fund association, the executive
director of the St. Paul teachers retirement fund association,
and the executive director of the Minneapolis teachers
retirement fund association must consult with the task force
established under Laws 2001, First Special Session chapter 10,
article 11, section 20, and must provide the commission-retained
actuary with all necessary information requested for the
preparation of this report.
Subd. 4. [COSTS.] The cost of the actuarial valuation
report mandated in this section will be paid by the pension
funds named in this legislation. The cost must be allocated
equally between the four pension funds. The executive director
of the Minneapolis teachers retirement fund association shall
serve as the fiscal agent for this study, shall pay its cost,
and shall be reimbursed by the other three retirement funds for
their appropriate share.
Subd. 5. [FILING DATE.] The report must be filed by
January 15, 2004, with the chair of the legislative commission
on pensions and retirement, the chair of the senate committee on
state and local government operations, and the chair of the
house committee on government operations and veterans affairs
policy.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
ARTICLE 10
LOCAL RETIREMENT PLAN CHANGES
Section 1. Minnesota Statutes 2002, section 383B.49, is
amended to read:
383B.49 [SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF
SHARES.]
When requested to do so, in writing, on forms provided by
the county, by a participant, surviving spouse, a guardian of a
surviving child or a personal representative, whichever is
applicable, the county of Hennepin shall redeem shares in the
accounts of the Minnesota supplemental investment fund standing
in a participant's share account record under the following
circumstances and in accordance with the laws and regulations
governing the Minnesota supplemental investment fund:
(1) A participant who is no longer employed by the county
of Hennepin is entitled to receive the cash realized on the
redemption of the shares to the credit of the participant's
share account record of the person. The participant may request
the redemption of all or a portion of the shares in the
participant's share account record of the person, but may not
request more than one redemption in any one calendar year. If
only a portion of the shares in the participant's share account
record is requested to be redeemed the person may request to
redeem not less than 20 percent of the shares in any one
calendar year and the redemption must be completed in no more
than five years. An election is irrevocable except that a
participant may request an amendment of the election to redeem
all of the person's remaining shares. All requests under this
paragraph are subject to application to and approval of the
Hennepin county board administrator, in its the sole
discretion of the administrator.
(2) In the event of the death of a participant leaving a
surviving spouse, the surviving spouse is entitled to receive
the cash realized on the redemption of all or a portion of the
shares in the participant's share account record of the deceased
spouse, but in no event may the spouse request more than one
redemption in each calendar year. If only a portion of the
shares in the participant's share account record is requested to
be redeemed, the surviving spouse may request the redemption of
not less than 20 percent of the shares in any one calendar
year. Redemption must be completed in no more than five years.
An election is irrevocable except that the surviving spouse may
request an amendment of the election to redeem all of the
participant's remaining shares. All requests under this
paragraph are subject to application to and approval of the
Hennepin county board administrator, in its the sole
discretion of the administrator. Upon the death of the
surviving spouse, any shares remaining in the participant's
share account record must be redeemed by the county of Hennepin
and the cash realized from the redemption distributed to the
estate of the surviving spouse.
(3) In the event of the death of a participant leaving no
surviving spouse, but leaving a minor surviving child or minor
surviving children, the guardianship estate of the minor child
is, or the guardianship estates of the minor children are,
entitled to receive the cash realized on the redemption of all
shares to the credit of the participant's share account record
of the deceased participant. In the event of minor surviving
children, the cash realized must be paid in equal shares to the
guardianship estates of the minor surviving children.
(4) In the event of the death of a participant leaving no
surviving spouse and no minor surviving children, the estate of
the deceased participant is entitled to receive the cash
realized on the redemption of all shares to the credit of the
participant's share account record of the deceased participant.
Sec. 2. Minnesota Statutes 2002, section 383B.493, is
amended to read:
383B.493 [WITHDRAWAL FROM PARTICIPATION.]
Notwithstanding Laws 1982, chapter 450, or any other law to
the contrary, a Hennepin county employee participating in the
Hennepin county supplemental retirement program pursuant to Laws
1982, chapter 450 may, in the event of an unforeseeable
emergency, apply to the county to discontinue participation in
the program. Employees who are no longer participating in the
program may apply for the redemption of all shares credited to
their share account record. Applications are subject to
approval of the Hennepin county board of commissioners
administrator in its the sole discretion of the administrator.
For the purposes of this section, the term "unforeseeable
emergency" shall mean a severe financial hardship to the
participant resulting from a sudden and unexpected illness or
accident of the participant or a person dependent upon the
participant, loss of participant's property due to casualty, or
other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the
participant. Applications based on foreseeable expenditures
normally budgetable shall not be approved. A participant
exercising the option provided by this section shall be
ineligible for further participation in the supplemental
retirement program.
Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD
HOC POSTRETIREMENT ADJUSTMENT.]
In addition to the current pensions and other retirement
benefits payable, the pensions and retirement benefits payable
to retired police officers and firefighters and their surviving
spouses by the Eveleth police and fire trust fund are increased
by $100 per month. Increases are retroactive to January 1, 2003.
Sec. 4. [EFFECTIVE DATE.]
(a) Sections 1 and 2 are effective upon approval by the
Hennepin county board of commissioners and compliance with
Minnesota Statutes, section 645.021.
(b) Section 3 is effective on the day after the date on
which the Eveleth city council and the chief clerical officer of
the city of Eveleth comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
ARTICLE 11
MINNEAPOLIS FIREFIGHTERS RELIEF
ASSOCIATION CHANGES
Section 1. Minnesota Statutes 2002, section 423C.03,
subdivision 3, is amended to read:
Subd. 3. [COMPENSATION OF OFFICERS AND BOARD MEMBERS.]
Notwithstanding any other law to the contrary, the association
may provide for payment of the following salaries to its
officers and board members:
(1) the executive secretary may receive a salary not
exceeding 30 50 percent of the maximum salary of a first grade
firefighter;
(2) the president may receive a salary not exceeding ten
percent of the maximum salary of a first grade firefighter; and
(3) all other elected members of the board may receive a
salary not exceeding 2.5 percent of the maximum salary of a
first grade firefighter.
Sec. 2. Minnesota Statutes 2002, section 423C.08, is
amended to read:
423C.08 [MEMBER CONTRIBUTION REFUND TO BENEFICIARY UPON
DEATH.]
If an active, deferred, or retired member of the
association dies and no survivor benefit is payable, the
designated beneficiary of the decedent or, if none, the legal
representative of the estate of the decedent is entitled, upon
application, to a refund. The refund shall be an amount equal
to the member contributions to the credit of the decedent, plus
interest on those contributions at an annual compounded rate of
five percent from the first day of the month following the date
of the contribution to the first day of the month following the
date of death of the decedent, reduced by the sum of any service
pension or disability benefit previously paid by the fund to the
decedent.
Sec. 3. [INTENT.]
Section 2 is intended to bring the Minneapolis firefighters
relief association's statutory provision which provides for a
refund of member contributions where the decedent does not leave
a surviving spouse or children in conformance with Minnesota
Statutes 2002, section 423A.18.
Sec. 4. [EFFECTIVE DATE.]
(a) The board of the Minneapolis firefighters relief
association may increase the salary of the executive secretary
subject to the applicable maximum set forth in section 1.
(b) Any salary increase under paragraph (a) may be
effective on September 1, 2002, or any time thereafter as
designated by the relief association board providing that the
requirements specified in section 1 are satisfied during the
applicable time period.
(c) Section 2 is effective retroactive to September 25,
2001. Section 3 is effective on the day following final
enactment.
ARTICLE 12
VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION CHANGES
Section 1. Minnesota Statutes 2002, section 424A.02,
subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) Annually
on or before August 1 of each year as part of the certification
of the financial requirements and minimum municipal
obligation made pursuant to determined under section 69.772,
subdivision 4, or 69.773, subdivision 5, as applicable, the
secretary or some other official of the relief association
designated in the bylaws of each relief association shall
calculate and certify to the governing body of the applicable
qualified municipality the average amount of available financing
per active covered firefighter for the most recent three-year
period. The amount of available financing shall include any
amounts of fire state aid received or receivable by the relief
association, any amounts of municipal contributions to the
relief association raised from levies on real estate or from
other available revenue sources exclusive of fire state aid, and
one-tenth of the amount of assets in excess of the accrued
liabilities of the relief association calculated pursuant to
sections under section 69.772, subdivision 2; 69.773,
subdivisions 2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief
association has authority to provide for in its bylaws for
payment to a member retiring after the calculation date when the
minimum age and service requirements specified in subdivision 1
are met must be determined using the table in paragraph (c) or
(d), whichever applies.
(c) For a relief association where the governing bylaws
provide for a monthly service pension to a retiring member, the
maximum monthly service pension amount per month for each year
of service credited that may be provided for in the bylaws is
the maximum service pension figure corresponding to the average
amount of available financing per active covered firefighter:
Minimum Average Amount of Maximum Service Pension
Available Financing per Amount Payable per Month
Firefighter for Each Year of Service
$... $ .25
42 .50
84 1.00
126 1.50
168 2.00
209 2.50
252 3.00
294 3.50
335 4.00
378 4.50
420 5.00
503 6.00
587 7.00
672 8.00
755 9.00
839 10.00
923 11.00
1007 12.00
1090 13.00
1175 14.00
1259 15.00
1342 16.00
1427 17.00
1510 18.00
1594 19.00
1677 20.00
1762 21.00
1845 22.00
1888 22.50
1929 23.00
2014 24.00
2098 25.00
2183 26.00
2267 27.00
2351 28.00
2436 29.00
2520 30.00
2604 31.00
2689 32.00
2773 33.00
2857 34.00
2942 35.00
3026 36.00
3110 37.00
3963 3194 38.00
4047 3278 39.00
4137 3362 40.00
Effective beginning December 31, 2000:
4227 3446 41.00
4317 3530 42.00
4407 3614 43.00
4497 3698 44.00
Effective beginning December 31, 2001:
4587 3782 45.00
4677 3866 46.00
4767 3950 47.00
4857 4034 48.00
Effective beginning December 31, 2002:
4947 4118 49.00
5037 4202 50.00
5127 4286 51.00
5217 4370 52.00
Effective beginning December 31, 2003:
5307 4454 53.00
5397 4538 54.00
5487 4622 55.00
5577 4706 56.00
(d) For a relief association in which the governing bylaws
provide for a lump sum service pension to a retiring member, the
maximum lump sum service pension amount for each year of service
credited that may be provided for in the bylaws is the maximum
service pension figure corresponding to the average amount of
available financing per active covered firefighter for the
applicable specified period:
Minimum Average Amount Maximum Lump Sum Service
of Available Financing Pension Amount Payable
per Firefighter for Each Year of Service
$.. $10
11 20
16 30
23 40
27 50
32 60
43 80
54 100
65 120
77 140
86 160
97 180
108 200
131 240
151 280
173 320
194 360
216 400
239 440
259 480
281 520
302 560
324 600
347 640
367 680
389 720
410 760
432 800
486 900
540 1000
594 1100
648 1200
702 1300
756 1400
810 1500
864 1600
918 1700
972 1800
1026 1900
1080 2000
1134 2100
1188 2200
1242 2300
1296 2400
1350 2500
1404 2600
1458 2700
1512 2800
1566 2900
1620 3000
1672 3100
1726 3200
1753 3250
1780 3300
1820 3375
1834 3400
1888 3500
1942 3600
1996 3700
2023 3750
2050 3800
2104 3900
2158 4000
2212 4100
2265 4200
2319 4300
2373 4400
2427 4500
2481 4600
2535 4700
2589 4800
2643 4900
2697 5000
2751 5100
2805 5200
2859 5300
2913 5400
2967 5500
Effective beginning December 31, 2000:
3021 5600
3075 5700
3129 5800
3183 5900
3237 6000
Effective beginning December 31, 2001:
3291 6100
3345 6200
3399 6300
3453 6400
3507 6500
Effective beginning December 31, 2002:
3561 6600
3615 6700
3669 6800
3723 6900
3777 7000
Effective beginning December 31, 2003:
3831 7100
3885 7200
3939 7300
3993 7400
4047 7500
(e) For a relief association in which the governing bylaws
provide for a monthly benefit service pension as an alternative
form of service pension payment to a lump sum service pension,
the maximum service pension amount for each pension payment type
must be determined using the applicable table contained in this
subdivision.
(f) If a relief association establishes a service pension
in compliance with the applicable maximum contained in paragraph
(c) or (d) and the minimum average amount of available financing
per active covered firefighter is subsequently reduced because
of a reduction in fire state aid or because of an increase in
the number of active firefighters, the relief association may
continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount
until the minimum average amount of available financing per
firefighter under the table in paragraph (c) or (d), whichever
applies, permits.
(g) No relief association is authorized to provide a
service pension in an amount greater than the largest applicable
flexible service pension maximum amount even if the amount of
available financing per firefighter is greater than the
financing amount associated with the largest applicable flexible
service pension maximum.
Sec. 2. [BENEFIT RATIFICATION; WHITE BEAR LAKE.]
Notwithstanding Minnesota Statutes, section 424A.02,
subdivisions 3 and 3a, to the contrary, the service pension
amounts specified in the bylaws of the White Bear Lake fire
department relief association following bylaw amendments in
January 1999 and prior to the effective date of this section are
ratified.
Sec. 3. [MARSHALL VOLUNTEER FIRE.]
Notwithstanding any provision of Minnesota Statutes,
section 424A.02, subdivision 7, or other law to the contrary, as
a pilot project, the Marshall volunteer firefighter relief
association may amend its bylaws to pay interest on deferred
lump sum payment pensions based on a rate determined annually by
the board of trustees based on the actual time weighted total
rate of return investment performance of the special fund as
reported by the office of the state auditor under Minnesota
Statutes, section 356.219, up to five percent, and applied
consistently for all deferred service pensioners.
Sec. 4. [EFFECTIVE DATE.]
Section 3 is effective on the day after the date on which
the Marshall city council and the chief clerical officer of the
city of Marshall comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
ARTICLE 13
PLYMOUTH VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION ANCILLARY BENEFIT CHANGES
Section 1. Laws 1978, chapter 685, section 1, as amended
by Laws 1979, chapter 201, section 41, is amended to read:
Section 1. [PLYMOUTH VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION.]
The bylaws of the Plymouth firefighter's relief association
may be amended to provide for payment of a disability pension in
an amount equal to $8.50 per month per year of service, to a
maximum of $255 per month consistent with the ancillary benefit
requirements specified in Minnesota Statutes, section 424A.02,
subdivision 9, to a firefighter qualified pursuant to determined
to be disabled, as defined in the bylaws of the association and
under procedures specified in those bylaws. No member shall be
entitled to draw both a disability pension and a service pension.
Sec. 2. Laws 1978, chapter 685, section 2, is amended to
read:
Sec. 2. The Plymouth firefighter's relief association may
provide for a benefit to the surviving spouse of a volunteer
firefighter who died, providing that the surviving spouse
qualifies under the terms of the bylaws, such benefit to be paid
as the bylaws of the association may provide, except that the
bylaws may not provide for a spouse's benefit of more than
$127.50 per month, and provided the benefit shall cease as of
the date of the spouse's remarriage and the benefit is
consistent with ancillary benefit requirements specified in
Minnesota Statutes, section 424A.02, subdivision 9.
Sec. 3. Laws 1978, chapter 685, section 3, is amended to
read:
Sec. 3. The Plymouth firefighter's relief association may
pay a pension for the children of deceased members, as the
association's bylaws may provide, consistent with ancillary
benefit requirements specified in Minnesota Statutes, section
424A.02, subdivision 9.
Sec. 4. Laws 1978, chapter 685, section 6, is amended to
read:
Sec. 6. (a) The bylaws of the Plymouth firefighter's
relief association may further provide that when any active or
deferred member of the association or any pensioner who is a
former member disabilitant or service pension recipient dies,
there may be paid a death or funeral benefit to defray or assist
the family of the deceased with funeral expenses.
(b) A benefit paid under this section due to the death of
an active or deferred member must conform to Minnesota Statutes,
section 424A.02, subdivision 9.
(c) A death or funeral benefit may be paid under this
section to the family of a deceased disabilitant or service
pensioner notwithstanding Minnesota Statutes, section 424A.02,
subdivision 9, providing that liabilities relating to this
benefit are recognized in determinations of actuarial condition
and funding costs, as determined under section 69.772 or 69.773,
whichever is applicable. Notwithstanding any law to the
contrary, the association is authorized to use a load factor or
factors to recognize liabilities relating to funeral or death
benefits paid to the family of a deceased disabilitant or
service pensioner. Benefits are not payable under this
paragraph if the city council does not approve the load factor
or factors used in determinations of actuarial conditions and
funding costs.
Sec. 5. [REPEALER.]
Laws 1978, chapter 685, section 5, is repealed.
Sec. 6. [EFFECTIVE DATE.]
Sections 1 to 5 are effective on the day after the date on
which the Plymouth city council and the chief clerical officer
of the city of Plymouth complete in a timely manner their
compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
ARTICLE 14
PRIOR SERVICE CREDIT PURCHASE PROVISIONS
Section 1. Laws 2000, chapter 461, article 19, section 6,
is amended to read:
Sec. 6. [MTRFA; PRIOR SERVICE CREDIT PURCHASE FOR
UNCREDITED TEACHING SERVICE PERIODS.]
(a) An eligible person described in paragraph (b) is
entitled to purchase allowable service credit from the
Minneapolis teachers retirement fund association basic program
for the periods of teaching employment specified in paragraph
(c) by making the payment required under Minnesota Statutes,
section 356.55.
(b) An eligible person is a person who:
(1) was employed by special school district No. 1
(Minneapolis) as a long call reserve teacher from October 1972
to June 1973 and was covered by the Minneapolis employees
retirement fund;
(2) was employed by special school district No. 1
(Minneapolis) as a school social worker at Franklin junior high
school from August 28, 1973, through June 12, 1974, and from
August 29, 1974, through June 11, 1975, without retirement
coverage;
(3) was employed by special school district No. 1
(Minneapolis) as a school social worker at North high school
from August 29, 1975, through December 19, 1975, covered by the
Minneapolis teachers retirement fund association;
(4) was retained by special school district No. 1
(Minneapolis) in the capacity of a school social worker at North
high school as an hourly wage social worker from August 1976
through June 1983 without retirement coverage; and
(5) is currently employed by Hennepin county covered by the
public employees retirement association.
(c) The periods for allowable service credit purchase are
August 28, 1973, through June 12, 1974; and August 29, 1974,
through June 11, 1975.
(d) An eligible person must provide any relevant
documentation related to eligibility to make this service credit
purchase required by the executive director of the Minneapolis
teachers retirement fund association.
(e) Allowable service credit for the purchase periods must
be granted by the Minneapolis teachers retirement fund
association to the account of the eligible person upon receipt
of the prior service credit purchase payment amount. Authority
provided by this section is voided if payment is not made before
December 31, 2003, or before commencing receipt of an annuity
from the Minneapolis teachers retirement fund association,
whichever is earlier.
(f) The prior service credit purchase payment amount shall
be computed by the actuary retained by the legislative
commission on pensions and retirement. That computation must
give recognition, in applying the process stated in Minnesota
Statutes, section 356.55, give recognition to the liabilities
that would be created in the Minneapolis teachers retirement
fund association and other Minnesota public pension funds due to
the service credit purchase.
(g) Following receipt of that purchase payment amount, the
executive director of the Minneapolis teachers retirement fund
association shall allocate and transmit that amount to the
applicable pension administrations, as determined under
paragraph (f).
Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; SERVICE CREDIT
PURCHASE FOR SABBATICAL LEAVES.]
(a) Notwithstanding Minnesota Statutes, section 354.092, or
any other law to the contrary, an eligible person described in
paragraph (b) is entitled to purchase not more than three years
of allowable service credit from the teachers retirement
association for sabbatical leave as defined in Minnesota
Statutes, section 122A.49.
(b) An eligible person is a person who:
(1) worked as a teacher for independent school district No.
191, Burnsville-Eagan-Savage;
(2) was on sabbatical leave at some time between January 1,
1982, and December 31, 1989; and
(3) did not receive service credit for time on sabbatical
leave because the leave was not properly reported to the
teachers retirement association.
(c) An eligible person described in paragraph (b) must
apply with the executive director of the teachers retirement
association to make a service credit purchase under this
section. The application must be in writing and must include
all necessary documentation of the applicability of this section
and any other relevant information that the executive director
may require.
(d) Allowable service credit for the purchase periods must
be granted by the teachers retirement association to the account
of an eligible person upon receipt of the portion of the prior
service credit purchase payment amount payable under paragraph
(e) in a lump sum by the applicable eligible person.
(e) Notwithstanding Minnesota Statutes, section 356.55 or
356.551, whichever is applicable, an eligible person may pay
before September 1, 2003, or the date of termination from
service, whichever is earlier, an amount equal to the employee
contribution rate or rates in effect during the applicable
sabbatical leave period or periods specified in paragraph (b)
applied to the actual salary rate or rates in effect during that
period or periods, plus annual compound interest at the rate of
8.5 percent from the midpoint of each applicable sabbatical
leave period, to the date on which the payment is actually
made. Independent school district No. 191 must pay the
remaining balance of the prior service credit purchase payment
amount calculated under Minnesota Statutes, section 356.55 or
356.551, whichever is applicable, within 30 days of the payment
by an eligible person. The executive director of the teachers
retirement association must notify the superintendent of
independent school district No. 191 of its payment amount and
payment due date if an eligible person makes the required
payment.
(f) If independent school district No. 191 fails to pay its
portion of the required prior service credit purchase payment
amount, the executive director of the teachers retirement
association must notify the commissioner of finance of that fact
and the commissioner of finance must order that the required
employer payment be deducted from the next subsequent payment or
payments of state education aid to the school district and be
transmitted to the teachers retirement association.
Sec. 3. [SPECIAL SCHOOL DISTRICT NO. 1; QUALIFIED
PART-TIME TEACHER PROGRAM RETROACTIVE COVERAGE.]
(a) An eligible individual is a teacher who:
(1) was born on March 10, 1950;
(2) is a basic plan member of the Minneapolis teachers
retirement fund association;
(3) first became a Minneapolis teachers retirement fund
association member in August 1972; and
(4) entered into a job sharing arrangement with another
Minneapolis teachers retirement fund association member for the
2001-2002 school year but failed to enter into a qualified
part-time teacher agreement for that school year.
(b) Notwithstanding any provision of Minnesota Statutes,
section 354A.094, to the contrary, an eligible individual
described in paragraph (a) is authorized to receive full-time
salary and service credit in the Minneapolis teachers retirement
fund association basic program for service under Minnesota
Statutes, section 354A.094, for the 2001-2002 school year, if
all conditions required by this section are met.
(c) To receive the full-time equivalent service and salary
credit for the 2001-2002 school year provided by this section,
an eligible individual described in paragraph (a) must pay the
applicable employee contribution under Minnesota Statutes,
section 354A.12, subdivision 1, on the difference between the
amount of the person's compensation from which employee
contributions were actually deducted and the amount of the
person's full-time equivalent salary under Minnesota Statutes,
section 354A.094, subdivision 4. The employee must pay 8.5
percent interest, compounded daily, on all employee
contributions required under this section, from the date the
contributions would have occurred if the individual were
employed on a full-time basis, until paid.
(d) If payment is made under paragraph (c), upon
notification from the Minneapolis teachers retirement fund
association, special school district No. 1, Minneapolis, must
pay the applicable employer and additional employer
contributions under Minnesota Statutes, section 354A.12,
subdivision 2a, on the difference between the person's full-time
equivalent salary and actual salary upon which contributions
were previously made for the eligible individual. The employer
must pay 8.5 percent interest, compounded daily, on all employer
and employer additional contributions required under this
section, from the date the contributions would have occurred if
the individual were employed on a full-time basis, until paid.
(e) Payments under this section must be made in a lump sum
to the Minneapolis teachers retirement fund association.
Payment under paragraph (c) must occur on or before June 30,
2003, or the effective date of retirement, whichever is
earlier. Payment by the employer under paragraph (d) must be
made within 30 days following payment by the eligible employee.
(f) The eligible person must provide any relevant
documentation that the Minneapolis teachers retirement fund
association may request.
ARTICLE 15
VARIOUS ONE PERSON AND SMALL GROUP
RETIREMENT CHANGES
Section 1. [TEACHERS RETIREMENT ASSOCIATION; COVERAGE
ELECTION OPTION DEADLINE EXTENSION.]
(a) Notwithstanding any provision of Minnesota Statutes,
section 354B.21, subdivision 2 or 3 to the contrary, an eligible
person described in paragraph (b) is entitled to elect to
continue retirement coverage by the teachers retirement
association.
(b) An eligible person is a person who:
(1) was born on May 5, 1960;
(2) was first employed as a teacher for the 1982-1983
school year;
(3) was employed as a teacher by independent school
district No. 345, New London-Spicer, from the 1984-1985 school
year until the 1994-1995 school year;
(4) was employed as a teacher by independent school
district No. 858, St. Charles, from the 1995-1996 school year
through the 2001-2002 school year;
(5) was employed by the Riverland community college on
August 22, 2002; and
(6) received a Minnesota state colleges and universities
system retirement plan election form on August 27, 2002, but did
not file the form by December 4, 2002, and received individual
retirement account retirement plan coverage by default.
(c) The election of teachers retirement coverage must be
made in writing by the eligible person and must be made on or
before September 1, 2003.
(d) If an election of teachers retirement association
coverage is made under this section, the Minnesota state
colleges and universities system shall transfer from the
individual retirement account plan member and employer
contributions equal to ten percent of the eligible person's
covered salary as an employee of the system from August 22,
2002, to the date of the coverage election under this section,
plus annual interest at the rate of 8.5 percent. Upon the
contribution transfer, the teachers retirement association shall
credit the eligible person with allowable and formula service
credit for the period August 22, 2002, to the date of the
coverage election.
Sec. 2. [DULUTH TEACHERS RETIREMENT FUND ASSOCIATION;
AUTHORIZATION TO MAKE PAYMENT OF EMPLOYEE AND EMPLOYER
CONTRIBUTIONS.]
(a) Notwithstanding any provision of law to the contrary,
an eligible person described in paragraph (b) is authorized to
pay employee and employer contributions to the Duluth teachers
retirement fund association for the period described in
paragraph (c).
(b) An eligible person is a person who:
(1) was born on October 13, 1949;
(2) was initially employed by independent school district
No. 709, Duluth, on December 4, 1972;
(3) is a current employee of independent school district
No. 709, Duluth, and is a current member of the Duluth teachers
retirement fund association;
(4) was employed on a part-time basis by independent school
district No. 709, Duluth, for the 2001-2002 school year; and
(5) was not notified of the right to pay employee and
employer contributions to the Duluth teachers retirement fund
association under Minnesota Statutes, section 354A.094, while
employed on a part-time basis for the 2001-2002 school year.
(c) The purchase period is September 4, 2001, to June 7,
2002.
(d) The payment amount shall be the product of the
following:
(1) the total of the employee and employer contribution
rates of the Duluth teachers retirement fund association
prescribed in Minnesota Statutes, section 354A.12; and
(2) the salary amount equal to the difference between the
salary the eligible person would have earned from independent
school district No. 709, Duluth, had the eligible person worked
on a full-time basis during the 2001-2002 school year and the
total salary the eligible person actually earned from
independent school district No. 709, Duluth, during the
2001-2002 school year.
(e) Interest is payable on the payment amount in paragraph
(d) using the preretirement interest rate assumption specified
in Minnesota Statutes, section 356.215, subdivision 8,
compounded annually, accruing from June 30, 2002, to the date
the payment is received in the office of the Duluth teachers
retirement fund association.
(f) Credit for the higher salary for the purchase period
must be granted by the Duluth teachers retirement fund
association to the eligible person upon receipt of payment of
the employee and employer contribution amount.
(g) Notwithstanding Minnesota Statutes, section 354A.094,
subdivision 4, independent school district No. 709, Duluth, is
not permitted to pay any portion of the payment amount.
(h) The authority to make payment of employee and employer
contributions expires 60 days after enactment or on the date of
the termination of active service by the eligible person,
whichever occurs earlier.
Sec. 3. [SURVIVOR BENEFITS.]
Notwithstanding any provision of Minnesota Statutes,
section 353.657, subdivision 1, requiring a specified period of
marriage to obtain survivor benefits, the surviving spouse of a
firefighter who was born on March 11, 1969, and who died in an
accident on February 6, 2000, is entitled to survivor benefits
provided in Minnesota Statutes, section 353.657.
Sec. 4. [MSRS-GENERAL; REFUND ELIGIBILITY IN CERTAIN
INSTANCES.]
Notwithstanding any provision of Minnesota Statutes,
section 352.22, subdivision 1, to the contrary, a person who
previously has been employed as a state employee, who was placed
on a medical leave of absence before April 1, 2002, and who was
still on the medical leave on April 1, 2003, is eligible to
receive a refund under Minnesota Statutes, section 352.22, if
the person has not again become a state employee covered by the
system on the refund application date.
Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION COVERAGE
TERMINATION.]
Subdivision 1. [ELIGIBILITY.] (a) An eligible individual
specified in paragraph (b) is authorized to apply for a
retirement annuity, provided necessary age and service
requirements are met, under Minnesota Statutes, section 353.29
or 353.30, as applicable, as further specified under subdivision
2.
(b) An eligible individual is an individual who:
(1) was employed as a Beltrami county employee and became a
member of the public employees retirement association general
plan due to that service on June 1, 1991;
(2) was elected to the Bemidji city council and took office
in January 2001;
(3) elected under law then applicable to have public
employees retirement association general plan coverage for the
city council elected service; and
(4) terminated Beltrami county employment but is unable to
commence receipt of a public employees retirement association
general plan annuity because of the continuing public employees
retirement association general plan coverage for the elected
city council service.
Subd. 2. [RETIREMENT ANNUITY.] (a) Notwithstanding an
irrevocable election to participate in the public employees
retirement association general plan as an elected official and
continuation of elected service, an eligible individual under
subdivision 1, paragraph (b), is deemed to have terminated
membership under Minnesota Statutes, section 353.01, subdivision
11b, following the termination of the Beltrami county employment.
(b) If the requirements of paragraph (a) are satisfied, the
eligible individual may apply for a retirement annuity under
Minnesota Statutes, section 353.29 or 353.30, as applicable. In
computing the annuity, the public employees retirement
association must exclude salary due to the elected Bemidji city
council service. Deferred annuity augmentation under Minnesota
Statutes, section 353.71, applies to this annuity.
Subd. 3. [TREATMENT OF BEMIDJI CITY COUNCIL CONTRIBUTIONS
TO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION.] (a) All
employee contributions to the public employees retirement
association coordinated plan by an eligible individual in
subdivision 1, paragraph (b), due to the elected Bemidji city
council service, and all corresponding employer contributions,
must be determined.
(b) An eligible individual under subdivision 1, paragraph
(b), must elect, within one year of the effective date of this
section or upon termination of elective service, whichever is
earlier, a refund under Minnesota Statutes, section 353.34,
subdivision 2, of employee contributions determined under
paragraph (a), or coverage by the public employees defined
contribution plan under Minnesota Statutes, chapter 353D, as
further specified in paragraph (c).
(c) If public employee defined contribution plan coverage
is elected under paragraph (b), contributions to that plan
commence as of the first day of the pay period following this
election, and accumulated employee and employer contributions
determined under paragraph (a) must be transferred with six
percent annual interest to an account for the eligible
individual in the public employees defined contribution plan.
(d) If no election is made by an eligible individual by the
required date in paragraph (b), the individual is assumed to
have elected the refund indicated in paragraph (b).
(e) Upon an election under paragraph (b), or a mandatory
refund under paragraph (d), all rights in the public employees
retirement association coordinated plan due to elected Bemidji
city council service are forfeited and may not be reestablished.
Sec. 6. [EFFECTIVE DATE.]
(a) Sections 1 to 5 are effective on the day following
final enactment.
(b) Section 3 applies retroactively to the surviving spouse
of a person who died on or after February 1, 2000.
Presented to the governor May 27, 2003
Signed by the governor May 30, 2003, 3:54 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes